Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $3.9 million, a significant increase of 711% compared to a net income of $0.6 million for the same period in 2024[196]. - The company has an accumulated deficit of $120 million as of March 31, 2025, and expects to incur operating losses in the foreseeable future[204]. - The company did not generate any revenue during the three months ended March 31, 2025 and 2024, with future revenue generation dependent on successful drug development and commercialization[197]. Expenses - Research and development expenses decreased by $0.7 million to $0.325 million for the three months ended March 31, 2025, primarily due to personnel being on furlough since October 2024[201]. - General and administrative expenses increased by $0.8 million to $2.633 million for the three months ended March 31, 2025, largely due to increased costs associated with operating as a public company[202]. - The company expects to incur additional costs associated with operating as a public company following the merger, impacting future cash flow requirements[213]. - The company anticipates increased expenses related to clinical trials for product candidates, including planned Phase 1/2 trials for ABP-102 and Phase 1 trials for ABP-201[213]. - The company is required to implement additional financial and reporting systems to operate as a public entity, which will incur further expenses[213]. Cash Flow and Financing - As of March 31, 2025, the company had cash of $1.261 million, which is insufficient to operate for at least 12 months, indicating a need for additional capital[210]. - Net cash used in operating activities decreased by $1.1 million, from $2.8 million in Q1 2024 to $1.7 million in Q1 2025, representing a 40% reduction[215]. - Net cash provided by financing activities decreased by $2.2 million, from $2.3 million in Q1 2024 to $0.1 million in Q1 2025, a 94% decline[216]. - The company intends to seek additional funding through equity and debt financings, collaboration agreements, and research grants to support its operations[210]. - The company may finance cash needs through equity offerings, debt financings, and collaborations, which could dilute ownership interests[214]. Compliance and Regulatory Issues - The company is currently facing compliance issues with Nasdaq regarding minimum bid price and market value requirements, with a compliance period of 180 days to regain compliance[206][207]. - The company faces potential delays and increased costs in regulatory approvals for product candidates, which could impact development timelines[213]. - The company must establish sales and marketing capabilities for any product candidates that receive regulatory approval, influencing future operational costs[213]. Corporate Changes - The company completed a merger with Atlantic Costal Acquisition Corp. II, resulting in the change of its name to Abpro Holdings, Inc. and the commencement of trading on the Nasdaq Global Market on November 14, 2024[191]. Accounting and Reporting - The company’s financial statements are prepared in accordance with US GAAP, requiring estimates that may differ from actual results under varying conditions[217].
Atlantic Coastal Acquisition Corp. II(ACABU) - 2025 Q1 - Quarterly Report