Financial Performance - Revenue for the three months ended March 31, 2024, was $700,433, compared to $0 for the same period in 2023[17] - Gross profit for the same period was $189,000, with a cost of revenue of $511,433[17] - Total operating expenses increased significantly to $11,270,990 from $2,848,259 year-over-year, driven by higher selling, general and administrative expenses and impairments[17] - The net loss for the three months ended March 31, 2024, was $11,118,572, compared to a net loss of $2,846,644 for the same period in 2023[17] - The company reported a loss per share of $0.50 for the three months ended March 31, 2024, compared to $0.18 for the same period in 2023[17] - For the three months ended March 31, 2024, Onconetix reported a net loss of $11,118,572, compared to a net loss of $2,846,644 for the same period in 2023, indicating a significant increase in losses[23] Assets and Liabilities - Total current assets increased to $6,294,697 as of March 31, 2024, from $5,838,271 as of December 31, 2023[15] - Total liabilities rose to $25,293,426 as of March 31, 2024, compared to $21,877,471 as of December 31, 2023[15] - The total stockholders' equity deficit increased to $14,497,912 as of March 31, 2024, from an equity of $1,404,476 as of December 31, 2023[15] - Cash and cash equivalents decreased slightly to $4,463,870 as of March 31, 2024, from $4,554,335 as of December 31, 2023[15] - As of March 31, 2024, Onconetix had cash of approximately $4.5 million and a working capital deficit of approximately $15.1 million[34] Impairments and Charges - The company recorded an impairment of goodwill amounting to $5,192,000 during the quarter[17] - The company recorded an impairment charge of $2.3 million during the three months ended March 31, 2024, primarily allocated to product rights intangible assets[63] - The company recorded a goodwill impairment charge of approximately $5.2 million during the three months ended March 31, 2024, due to a decline in stock price and market capitalization[69] - The company recorded a loss on impairment of $3.5 million due to the WraSer bankruptcy filing, as recovery of the initial payment is unlikely[99] Acquisitions and Strategic Moves - The company acquired Proteomedix AG on December 15, 2023, which became a wholly owned subsidiary, and previously acquired ENTADFI in April 2023[27] - The company acquired the ENTADFI product for a total possible consideration of $100 million, with initial cash payments totaling $20 million[74][75] - The total consideration transferred for the ENTADFI acquisition was $19,026,771, which included $6 million paid at closing and $12,947,000 in fair value of notes payable[84] - The Company recorded approximately $1.5 million in acquisition-related costs during 2023, which were expensed[120] - The PMX Transaction is expected to enhance Onconetix's prostate cancer treatment portfolio through Proteomedix's diagnostic expertise[107] Revenue Sources - Revenue for the three months ended March 31, 2024, was approximately $0.7 million, with $0.1 million from Proclarix product sales and $0.6 million from development services[52] - Development services revenue was entirely generated from the European Union, while product sales were 86% from the United States and 14% from non-European regions[52] Future Plans and Funding - Management plans to generate product revenue from sales of Proclarix and is seeking additional funding through equity or debt financings[35] - The company’s cash balance as of May 15, 2024, was approximately $1.9 million, which is expected to fund operations only into the third quarter of 2024[34] - The Company has paused the commercialization of ENTADFI and is exploring strategic alternatives, including a potential sale of the ENTADFI assets[211] - The Company is focusing efforts on commercializing Proclarix, an in vitro diagnostic test for prostate cancer[210] Stock and Financing Activities - The Company entered into a subscription agreement for the sale of 20 million units at $0.25 per unit, with a make-whole provision for additional shares if the stock price falls below $0.25[142] - The Company has authorized the issuance of 250 million shares of common stock and 10 million shares of preferred stock as of March 31, 2024[146] - The Company entered into an At The Market Offering Agreement to sell up to $3,900,000 of common stock, with a commission rate of 3.0% on gross proceeds[158] - The Company has outstanding warrants totaling 7,899,661 shares, with a weighted average exercise price of $1.68 per share[163] Employee and Management Changes - The Company terminated three employees involved with the ENTADFI program as part of a cost reduction plan, effective April 30, 2024[211] - The Company appointed Thomas Meier, PhD, to its board of directors, incurring related expenses of approximately $6,000[191]
Blue Water Biotech(BWV) - 2024 Q1 - Quarterly Report