Cyclerion(CYCN) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2023, were $0, a decrease of 100% compared to $297,000 in the same period of 2022[121] - The net loss from continuing operations for the three months ended September 30, 2023, was $5,908,000, an increase of 34% compared to a loss of $4,407,000 in the same period of 2022[121] - The total cost and expenses for the three months ended September 30, 2023, were $6,015,000, an increase of 33% compared to $4,518,000 in the same period of 2022[121] - The company incurred a net loss of $3.6 million for the nine months ended September 30, 2023, with an accumulated deficit of $259.2 million[138] - The gain from discontinued operations increased by $19.6 million for the three months ended September 30, 2023, primarily driven by a one-time gain of approximately $15.8 million and a $5.0 million decrease in research and development expenses[129] - For the nine months ended September 30, 2023, the gain from discontinued operations increased by approximately $30.3 million, with a one-time gain of approximately $15.8 million and a $17.8 million decrease in research and development expenses[130] Expenses - Research and development expenses for the three months ended September 30, 2023, were $580,000, a decrease of approximately 59% from $1,414,000 in the same period of 2022[121] - General and administrative expenses for the three months ended September 30, 2023, were $2,131,000, a decrease of approximately 31% from $3,104,000 in the same period of 2022[121] - Research and development expenses for the nine months ended September 30, 2023, were $1,491,000, a decrease of approximately 69% from $4,803,000 in the same period of 2022[121] - General and administrative expenses for the nine months ended September 30, 2023, were $6,361,000, a decrease of approximately 34% from $9,579,000 in the same period of 2022[121] Cash Flow - Net cash used in operating activities was $19.7 million for the nine months ended September 30, 2023, a decrease of 41% compared to $33.6 million for the same period in 2022[142] - Net cash provided by investing activities for the nine months ended September 30, 2023, was $10.4 million, attributed to cash proceeds from the disposal of discontinued operations[143] - Net cash provided by financing activities for the nine months ended September 30, 2023, was $5.0 million, resulting from a stock purchase agreement[144] - As of September 30, 2023, the company had approximately $9.1 million of unrestricted cash and cash equivalents[136] - The company expects its cash, cash equivalents, and marketable securities as of September 30, 2023, to be sufficient to fund operations into 2025, but additional funding will be needed to sustain operations[145] Company Outlook - The company anticipates making ongoing determinations regarding which additional programs to pursue based on study data and competitive landscape assessments[114] - The company has incurred recurring losses since inception and substantial doubt exists about its ability to continue as a going concern[138] Corporate Actions - A reverse stock split of 1-for-20 was executed on May 15, 2023, affecting all share amounts and per share amounts disclosed in the report[140] Impairment - The impairment loss recognized during the three months ended September 30, 2023, was approximately $3.3 million, with no impairment loss recorded in the same period of 2022[128] Future Milestones - The company is eligible to receive up to $585 million in total potential future milestone payments related to the development and commercialization of praliciguat[107]