Eterna Therapeutics (US:ERNA)2025-11-07 21:30Revenue and Loss - The company reported no revenue for the three and nine months ended September 30, 2025, compared to $0.487 million and $0.581 million for the same periods in 2024, respectively[132]. - The company experienced a loss from operations of $1.993 million for the three months ended September 30, 2025, compared to a loss of $2.259 million in 2024, reflecting an improvement of $266,000[132]. - The net loss for the three months ended September 30, 2025, was $1.240 million, a decrease of $25.364 million compared to a net loss of $26.604 million in 2024[132]. - A gain on extinguishment of debt of approximately $0.7 million was recognized for the three and nine months ended September 30, 2025, compared to a loss of $22.4 million in the same periods of 2024[142][143]. Research and Development - Research and development expenses for the three months ended September 30, 2025, were $1.035 million, a slight increase of $34, compared to $1.001 million in 2024[135]. - Total research and development expenses for the nine months ended September 30, 2025, were $3.480 million, an increase of $34 from $3.446 million in 2024[136]. - Research and development expenses increased due to higher consulting services and costs associated with ERNA-101 and ERNA-201 studies, offset by reduced license fees and payroll-related costs[137]. - The company is focused on developing its lead product candidate ERNA-101 for platinum-resistant ovarian cancer, with IND submission expected by 2026[120]. - The company is also investigating ERNA-201 for inflammatory/auto-immune disorders, aiming to enhance anti-inflammatory effects[121]. General and Administrative Expenses - General and administrative expenses decreased significantly to $958,000 for the three months ended September 30, 2025, down from $3.381 million in 2024, a reduction of $2.423 million[132]. - General and administrative expenses for the three months ended September 30, 2025 decreased by approximately $2.4 million to $958,000 from $3.4 million in the same period of 2024, primarily due to reduced rent, professional fees, and stock-based compensation[138]. - For the nine months ended September 30, 2025, general and administrative expenses decreased by $7.8 million to $3.7 million from $11.6 million in the same period of 2024, attributed to the termination of a sublease and reductions in professional fees and payroll-related expenses[139]. Cash Flow and Financing - As of September 30, 2025, the company had cash of approximately $3.0 million and an accumulated deficit of approximately $244.1 million, with a net loss of $1.2 million for the three months and $12.6 million for the nine months ended September 30, 2025[153]. - Cash used in operating activities for the nine months ended September 30, 2025 was $5.9 million, a decrease of $6.4 million compared to $12.3 million in the same period of 2024[159][160]. - The company raised $7.2 million in gross proceeds from the sale of shares and prefunded warrants during the nine months ended September 30, 2025[155]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $2.3 million from promissory notes and $4.9 million from the 2025 SPA, net of $2.3 million receivable from a related party[162]. - For the nine months ended September 30, 2024, net cash provided by financing activities included $5.3 million from convertible notes issuance and bridge note financing[162]. Accounting and Regulatory Matters - There were no significant changes in critical accounting estimates during the three and nine months ended September 30, 2025, compared to the previous year[164]. - The company currently has no off-balance sheet arrangements as defined under SEC rules[163]. - As a smaller reporting company, the company is not required to provide additional market risk disclosures[166]. - The company expects to incur state income tax liabilities in 2025 and has established a full valuation allowance for all deferred tax assets[151]. - The company does not have sufficient capital to fund operations for the next 12 months and may need to reevaluate operations or seek additional capital[156][158]. Other Agreements - The company has entered into an Assignment Agreement with Factor Bioscience, which will pay the company 30% of amounts received from a customer sublicense[124]. - A gain on lease termination of approximately $1.6 million was recognized for the three and nine months ended September 30, 2024, with no similar transaction in 2025[140]. - For the nine months ended September 30, 2025, the company recognized $5.8 million related to a forward sales contract, with $5.3 million recognized at contract inception due to fair value exceeding proceeds[141].