Financial Performance - Net loss for the three months ended March 31, 2024, was $11,827,000 compared to a net loss of $8,029,000 for the same period in 2023, representing a 47.5% increase in losses[23]. - The company reported a comprehensive loss of $11,900,000 for the three months ended March 31, 2024, compared to a comprehensive loss of $8,029,000 for the same period in 2023, indicating a 48.5% increase in comprehensive losses[23]. - The net loss for the three months ended March 31, 2024, was $11.8 million, compared to a net loss of $8.0 million for the same period in 2023, reflecting an increase of $3.8 million[163]. - Other income (expense), net for the three months ended March 31, 2024, was an expense of $1.6 million, compared to an expense of $0.2 million for the same period in 2023, primarily due to changes in fair value associated with Pre-Funded Warrants[162]. Assets and Liabilities - Total current assets decreased from $16,348,000 as of December 31, 2023, to $14,130,000 as of March 31, 2024, a decline of approximately 13.5%[21]. - Total liabilities increased from $15,773,000 as of December 31, 2023, to $19,610,000 as of March 31, 2024, an increase of approximately 24.5%[21]. - Total stockholders' equity decreased from $11,373,000 as of December 31, 2023, to $4,870,000 as of March 31, 2024, a decline of approximately 57.3%[21]. - As of March 31, 2024, the company had total assets of $6,363,000, which included money market funds[80]. - The company’s total liabilities were $7,868,000, with warrant liabilities accounting for $7,868,000 as of March 31, 2024[80]. Cash Flow - The company reported a net cash used in operating activities of $12,122,000 for the three months ended March 31, 2024, compared to $8,139,000 for the same period in 2023, reflecting a 49.0% increase in cash outflows[30]. - For the three months ended March 31, 2024, net cash used in operating activities was $12.1 million, consisting of a net loss of $11.8 million and changes in assets and liabilities of $2.8 million, partially offset by non-cash charges of $2.5 million[166]. - Net cash provided by financing activities for the three months ended March 31, 2024, was $11.0 million, resulting from the issuance of $5.1 million of common stock and $6.0 million of pre-funded warrants[169]. Research and Development - Research and development expenses rose to $7,559,000 for the three months ended March 31, 2024, up from $5,484,000 in the same period of 2023, an increase of approximately 37.8%[23]. - The company incurred $1.4 million in research and development expenses related to the second grant agreement with the GI Research Foundation for the three months ended March 31, 2024[91]. - The company anticipates significant increases in research and development expenses as it continues to advance its product candidates and seek regulatory approvals[146]. Stock and Financing - The company issued 615,363 shares of common stock from an At-the-Market offering, raising approximately $5,062,000 after issuance costs[25]. - The company issued and sold a total of 615,363 shares of common stock under the At-the-Market Equity Program for aggregate net sale proceeds of approximately $5.1 million during the three months ended March 31, 2024[97]. - The Company issued 1,032,702 Pre-Funded Warrants in the March Offering at an exercise price of $0.01 per share, resulting in gross proceeds of approximately $6.0 million[132]. Financial Condition and Future Outlook - Elicio expects to incur substantial expenditures for the development of its product candidates and will require additional financing[36]. - The company expects to fund operations into the third quarter of calendar year 2024 based on current cash on hand, but substantial doubt exists about its ability to continue as a going concern[144]. - The company plans to address its financial condition through the sale of common stock, debt financings, and other capital sources, but there is no assurance these plans will be successful[164]. Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, including insufficient resources with knowledge of U.S. GAAP and inadequate financial reporting controls[190]. - Remediation efforts for identified material weaknesses include engaging consultants and hiring additional finance personnel, but these weaknesses have not been fully remediated as of March 31, 2024[192]. - The effectiveness of internal control over financial reporting is subject to inherent limitations, which may affect the reliability of financial statements[193]. Legal and Regulatory Matters - The company was involved in legal proceedings that could result in substantial costs, including indemnification of directors and officers[195]. - There have been no material changes in the company's risk factors from those described in the Form 10-K[197].
Elicio Therapeutics(ELTX) - 2024 Q1 - Quarterly Report