Financial Performance - The net loss for the three months ended September 30, 2025, was approximately $4.8 million, compared to a net loss of $3.4 million for the same period in 2024 [176]. - The net loss for the nine months ended September 30, 2025, was approximately $12.5 million, compared to a net loss of $7.8 million for the same period in 2024 [180]. - Estrella's accumulated deficit as of September 30, 2025, was approximately $36.4 million [163]. - The company reported a net cash used in operating activities of approximately $1.6 million for the nine months ended September 30, 2025, primarily due to a net loss of approximately $12.5 million [192]. Research and Development Expenses - Estrella has incurred approximately $4.2 million in research and development expenses for the three months ended September 30, 2025, compared to $2.8 million for the same period in 2024, reflecting a 50% increase [173]. - For the nine months ended September 30, 2025, research and development expenses totaled approximately $10.2 million, up from $6.4 million in 2024, representing a 59% increase [177]. - The company anticipates significant increases in expenses as it continues to advance preclinical and clinical development and seeks regulatory approval for its product candidates [164]. Cash and Liabilities - As of September 30, 2025, Estrella had cash of approximately $1.6 million and a working capital deficit of approximately $11.3 million [181]. - As of September 30, 2025, Estrella has accrued approximately $12.9 million in liabilities related to dosing milestones for the STARLIGHT-1 clinical trial [161]. - The company has accrued approximately $12.9 million in liabilities related to milestones achieved as of September 30, 2025, including the completion of nine patients' dosing and a second site activation milestone [203]. Revenue Generation - Estrella has not generated any revenue to date and does not expect to generate revenue for at least the next few years [182]. Clinical Trial Obligations - The total fees for the clinical trial services under Statement of Work No. 001 with Eureka amount to $33.0 million for achieving all milestones [161]. - The company has a total fee obligation of $33.0 million to Eureka for the Phase I/II clinical trial of EB103, with $3.5 million paid for milestone fees as of September 30, 2025 [202]. - The company has fully paid the $1.0 million license fee to Eureka and achieved two development milestones, with milestone payments of $50,000 each paid for IND submission and first patient dosing [199]. Financing Activities - Net cash provided by financing activities was approximately $2.3 million for the nine months ended September 30, 2025, primarily from a private placement [194]. - The company plans to raise additional capital to fund research and development programs, but there is no assurance that financing will be available on acceptable terms [191]. - As of September 30, 2025, the company had issued 70,000 Equity Line Shares to White Lion for an aggregate consideration of $79,491 under the Common Stock Purchase Agreement [189]. Derivative Liabilities - The fair value of the derivative liability related to True-Up Shares was valued at $385,355 as of September 30, 2025, using a Monte Carlo Simulation model [207]. Legal Contingencies - The company is subject to loss contingencies, including legal proceedings and claims, which may require accruals when a liability is probable and can be reasonably estimated [197].
TRADEUP ACQUISIT(UPTD) - 2025 Q3 - Quarterly Report