Financial Performance - Oncternal Therapeutics reported a net loss of $9.0 million for the three months ended June 30, 2023, with an accumulated deficit of $178.8 million as of the same date [96]. - Grant revenue decreased to $0.1 million for the three months ended June 30, 2023, down from $0.2 million in 2022, primarily due to the timing of NIH grant activities [114]. - Total research and development expenses for the three months ended June 30, 2023, were $6.6 million, a decrease of $2.2 million compared to $8.8 million in 2022, mainly due to a $2.5 million decrease in direct product candidate expenses [115]. - Interest income increased to $0.6 million for the three months ended June 30, 2023, compared to $0.1 million in 2022, primarily due to interest from short-term investments [121]. - General and administrative expenses for the six months ended June 30, 2023, were $6.4 million, a decrease of $0.5 million from $6.9 million in 2022, mainly due to lower legal and corporate insurance expenses [128]. - The accumulated deficit as of June 30, 2023, was $178.8 million, with expectations of continued net losses for the foreseeable future [130]. Funding and Capital Requirements - The company has raised a total of $136.3 million from common stock issuance and $49.0 million from convertible preferred stock issuance, along with $14.5 million in grant payments from UC San Diego [95]. - Oncternal anticipates needing substantial additional funding to support ongoing operations and business strategy, with potential financing through equity or debt offerings [99]. - The company expects existing cash resources to fund operations into 2025, but additional capital will be required beyond that point [101]. - The company may require additional capital for research and development sooner than expected, potentially leading to significant dilution for stockholders if equity securities are issued [138]. - The forecast for the adequacy of financial resources is subject to significant risks and uncertainties, which may adversely affect capital resources and liquidity [139]. - Key factors influencing future funding requirements include the costs and timing of preclinical studies and clinical trials for product candidates, as well as regulatory approval processes [140]. - The company has the ability to offer and sell shares of common stock with an aggregate offering price of up to $50.0 million under a Sales Agreement [143]. Product Development and Clinical Trials - ONCT-808, the lead product candidate, is currently in a Phase 1/2 trial for relapsed or refractory aggressive B-cell lymphoma, aiming to enroll approximately 57 patients [93]. - ONCT-534, a dual-action androgen receptor inhibitor, is expected to initiate a Phase 1/2 clinical trial in Q3 2023, with initial data anticipated in the first half of 2024 [94]. - Zilovertamab is being evaluated in multiple studies, including a Phase 1b study in combination with docetaxel for metastatic castrate-resistant prostate cancer [94]. - The company expects research and development expenses to decrease in future quarters following the closure of certain studies and implementation of cost reductions [107]. - The company expects research and development expenses to decrease in future quarters after closing two clinical studies and implementing cost reductions [130]. - Direct expenses for Zilovertamab decreased by $2.6 million for the three months ended June 30, 2023, primarily due to lower clinical trial activity [116]. Cash Position - The cash, cash equivalents, and short-term investments stood at $45.5 million as of June 30, 2023, with no debt reported [95]. - As of June 30, 2023, the company had $45.5 million in cash, cash equivalents, and short-term investments, with no debt, and anticipates sufficient funds to support operations into 2025 [130]. - Net cash used in operating activities was $20.2 million for the six months ended June 30, 2023, compared to $15.7 million in 2022, primarily due to the timing of payments related to clinical and manufacturing activities [133].
Oncternal Therapeutics(ONCT) - 2023 Q2 - Quarterly Report