Allarity Therapeutics(ALLR) - 2025 Q3 - Quarterly Report

Financial Performance - For the nine months ended September 30, 2025, the company incurred net losses of $7.7 million compared to $17.1 million for the same period in 2024, reflecting a decrease of $9.4 million[83]. - The total operating expenses for the three months ended September 30, 2025, were $2.5 million, a decrease of $9.8 million from $12.3 million in the same period of 2024[88]. - General and administrative expenses decreased by $1.2 million for the nine months ended September 30, 2025, primarily due to a reduction in professional services[92]. - The company expects to continue incurring significant expenses and increasing operating losses over the next several years as it advances its clinical programs[83]. - The company reported a net cash outflow of $2.6 million in cash and cash equivalents for the nine months ended September 30, 2025, compared to an increase of $18.3 million in the same period of 2024[100]. - A settlement payment of $2.5 million to the Securities and Exchange Commission contributed to the cash outflow in operating activities for the nine months ended September 30, 2025[101]. Research and Development - Research and development expenses for the three months ended September 30, 2025, increased by $0.2 million primarily due to costs associated with the Phase II clinical trial of stenoparib[89]. - Research and development expenses for the nine months ended September 30, 2025, increased by over $0.7 million, mainly due to the launch and expansion of the Phase II clinical trial[90]. - The FDA granted Fast Track designation for stenoparib for the treatment of advanced ovarian cancer, which may expedite its development and review process[77]. - The company anticipates substantial expenses for the development and potential commercialization of its drug candidate, stenoparib, and may require additional funding in the future[98]. Cash and Financing Activities - The company had cash and cash equivalents of $16.9 million as of September 30, 2025, with an accumulated deficit of $126.8 million[95]. - Financing activities provided net cash of $10.9 million for the nine months ended September 30, 2025, including proceeds from the sale of common stock and prefunded warrants[103]. - The company believes its current cash balance is sufficient to fund operations for at least the next 12 months, but may need to seek additional capital[97]. - The company entered into a Securities Purchase Agreement to sell 1,562,500 shares at $1.60 per share, resulting in gross proceeds of approximately $2.5 million[79]. - The company sold 9,719,173 shares of common stock for net proceeds of $9.7 million during the nine months ended September 30, 2025[97]. - The company repurchased 2,600,763 common shares as part of a share repurchase program for $2.7 million during the nine months ended September 30, 2025[103]. - The company repurchased 145,061 shares for an aggregate cost of $140,038 during the three months ended September 30, 2025, with $2.3 million remaining under the share repurchase program[75]. Operational Insights - Operating activities resulted in a net cash outflow of $11.6 million for the nine months ended September 30, 2025, primarily due to a net loss of $7.9 million[101]. - The company has no off-balance sheet arrangements[106]. - There have been no significant changes to the company's accounting policies during the nine months ended September 30, 2025[108].