Financial Performance - The company reported total expenses of $5,761,720 for the year ended December 31, 2024, a decrease of 49.1% from $11,304,857 in 2023[181]. - The net loss attributable to Qualigen Therapeutics, Inc. for the year ended December 31, 2024, was $6,346,795, compared to a net loss of $13,417,212 in 2023, reflecting a 52.8% improvement[181]. - The company experienced a loss from operations of $5,761,720 for 2024, compared to a loss of $11,304,857 in 2023, indicating a significant reduction in operational losses[181]. - The company reported a net loss per common share of $17.55 for the year ended December 31, 2024, compared to $132.25 in 2023, showing a substantial decrease in loss per share[181]. - The company recorded a loss of approximately $0.1 million on the disposal of discontinued operations in 2024, compared to a loss of approximately $0.6 million in 2023[202]. - The company recognized a loss of approximately $358,000 due to the issuance of new convertible debt in 2024, with no such loss reported in 2023[192]. Expense Management - General and administrative expenses decreased from $6.1 million in 2023 to $4.2 million in 2024, primarily due to a $0.8 million decrease in stock-based compensation and a $0.9 million decrease in payroll expenses[183]. - Research and development expenses decreased from $5.2 million in 2023 to $1.2 million in 2024, mainly due to a $2.9 million decrease in costs related to QN-302 and a $1.0 million decrease for Pan-RAS[184]. - The company implemented expense controls and slowed the development of therapeutic products starting in Q2 2024 due to financial constraints[167]. Cash Flow and Financial Position - As of December 31, 2024, the company had approximately $1.2 million in cash and net accounts payable exceeding $1.6 million, indicating a weak financial position[203]. - The company expects cash balances to fund operations only into the third quarter of 2025, raising substantial doubt about its ability to continue as a going concern[205]. - Operating activities used $6.3 million of cash in 2024, primarily due to a net loss of $6.3 million, compared to $10.3 million used in 2023[220][221]. - Net cash used by investing activities was approximately $1.9 million in 2024, primarily due to the issuance of $2.3 million in notes receivable to Marizyme[222]. - Net cash provided by financing activities was approximately $9.0 million in 2024, resulting from $4.6 million in proceeds from the sale of Series A-2 Preferred Stock and $3.1 million from the sale of common stock[224][226]. - The company reported a net increase in cash and restricted cash of $772,805 in 2024, compared to a decrease of $6,638,320 in 2023[219]. Agreements and Collaborations - The company advanced a total of $2,257,400 to Marizyme, Inc. during the year ended December 31, 2024, with accrued interest of $113,292 recognized[177]. - The company entered into a Co-Development Agreement with Marizyme, agreeing to pay up to $1,750,000 in funding and a $200,000 exclusivity fee[164]. - A Co-Development Agreement with Marizyme, Inc. includes a Funding Payment of up to $1,750,000 and an Exclusivity Fee of $200,000, with a 33% royalty on Net Sales of DuraGraft capped at double the Funding Payment[215]. - The company entered into a License Agreement with UCL Business Limited for a genomic quadruplex (G4)-selective transcription inhibitor drug development program, with an obligation to pay $100,000 upon the first patient dosing of QN-302[214]. Research and Development Focus - The company’s lead program, QN-302, is focused on treating cancers with a strong binding affinity to G-quadruplexes prevalent in cancer cells[162]. - The company’s Pan-RAS program targets mutated RAS genes, potentially effective in treating about 25% of all cancers, including pancreatic, colorectal, and lung cancers[163]. Credit and Liabilities - The estimated expected credit losses on the Marizyme Notes as of December 31, 2024, is $360,000, reflecting the uncertain nature of the debtor's financial condition[179]. - The company incurred a $0.4 million loss in expected credit losses on Marizyme Notes Receivable in 2024, with no credit losses reported in 2023[185]. - The estimated fair value of warrant liabilities increased to $0.3 million in 2024 from $0.1 million in 2023, resulting in a $0.4 million gain due to changes in fair value[186]. - The Marizyme Notes bear an interest rate of 18% per annum, with the option for Marizyme to pre-pay without penalty[217]. - The company recognized a non-cash loss on issuance of convertible debt of approximately $0.4 million in 2024[220]. Other Financial Activities - The company settled $395,000 of outstanding accounts payable for a gain of approximately $348,000 in 2024, with no similar settlements in 2023[198]. - The company has entered into various contracts for clinical trials and product development, which are generally cancelable on notice[218].
Qualigen Therapeutics(QLGN) - 2024 Q4 - Annual Report