AN2 Therapeutics(US:ANTX)2024-05-14 20:12Financial Performance - For the three months ended March 31, 2024, the net loss was $16.6 million, compared to a net loss of $15.3 million for the same period in 2023, representing an 8% increase in losses [116]. - The company has incurred an accumulated deficit of $171.1 million as of March 31, 2024 [116]. - Net losses for Q1 2024 were $16.6 million, compared to $15.3 million in Q1 2023, with an accumulated deficit of $171.1 million as of March 31, 2024 [132]. - Cash used in operating activities was $17.6 million in Q1 2024, compared to $11.6 million in Q1 2023 [144]. - Other income increased to $1.7 million in Q1 2024, compared to $0.7 million in Q1 2023, driven by higher interest rates and cash balances [131]. Expenses - Research and development expenses increased to $14.7 million for the three months ended March 31, 2024, up from $12.0 million in the same period of 2023, marking a 22% increase [125]. - Total operating expenses for the first quarter of 2024 were $18.3 million, a 14% increase from $16.0 million in the first quarter of 2023 [125]. - Clinical trial expenses increased by $3.7 million in 2024 due to higher enrollment and related activities [127]. - Clinical trials expenses increased to $5.8 million in Q1 2024, up 175% from $2.1 million in Q1 2023 [129]. - General and administrative expenses decreased to $3.6 million in Q1 2024 from $4.1 million in Q1 2023, a decrease of 10% [125]. - General and administrative expenses decreased to $3.6 million in Q1 2024, down from $4.1 million in Q1 2023, primarily due to reduced professional services costs [130]. Funding and Cash Position - The company had cash, cash equivalents, and investments totaling $118.1 million as of March 31, 2024, which is expected to fund operations for at least the next twelve months [117]. - The company raised gross proceeds of $70.0 million from an underwritten offering in August 2023, with net proceeds of $65.5 million after expenses [116]. - The company expects to require substantial additional funding to support ongoing operations and product development [134]. - Future funding may be sought through public or private equity offerings or debt financings, which could result in dilution for existing shareholders [135]. - The company had cash, cash equivalents, and investments totaling $118.1 million as of March 31, 2024, primarily in money market funds and investment-grade securities [154]. Regulatory and Operational Plans - The Phase 2 portion of the clinical trial for epetraborole has completed enrollment, with topline data expected in August 2024 [115]. - The company plans to hire a specialty sales force if regulatory approval for epetraborole is obtained, which will increase operating costs [118]. - The company has not generated any revenue from contracts with customers and does not expect to do so until regulatory approval is obtained for its product candidates [134]. Market and Economic Conditions - A hypothetical 10% relative change in interest rates would not have had a material impact on the company's financial statements [155]. - The company was not exposed to material foreign currency risk during the quarter ended March 31, 2024 [156]. - Inflation has not had a material effect on the company's unaudited condensed financial statements [157]. - The company intends to remain an Emerging Growth Company (EGC) until it exceeds $1.235 billion in total annual revenues or meets other specified criteria [153].