Core Insights - Scinai Immunotherapeutics Ltd. reported financial results for the nine months ended September 30, 2024, highlighting significant developments in its business operations and financial position [1] Business Update & Recent Highlights - The conversion of a European Investment Bank (EIB) loan into equity increased shareholders' equity to $10 million, with approximately $28.1 million converted into 1,000 preferred shares representing 19.5% of the company's fully diluted outstanding capital stock [2][3] - Following the conversion, the outstanding amount owed to the EIB was reduced to EUR 250,000 (approximately $264,000), with a maturity date of December 31, 2031 [3] - The company regained compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2.5 million, facilitated by the loan restructuring agreement with the EIB [4] CDMO Business Unit - Since January 2024, Scinai has received CDMO work orders valued at approximately $600,000 and is in advanced discussions with potential clients, expecting revenues from this unit to increase significantly in the coming years [5][6] - The company has received $575,000 in grants from the Israeli Innovation Authority to support its CDMO business unit and is pursuing a grant extension for reimbursement of 66% of approved CDMO costs [5] - Scinai is actively marketing its CDMO services through various channels, including participation in major pharmaceutical conferences [6] R&D Business Unit - Pipeline Development - Scinai received positive regulatory feedback from the Paul Erlich Institute for its drug development program targeting Phase 1/2a clinical trials of its anti-IL-17A/F nanoAb (SCN-1) in plaque psoriasis, expected to commence in the second half of 2025 [8][9] - Promising results from pre-clinical studies in plaque psoriasis were reported, indicating that Scinai's nanoAb could effectively reduce psoriatic lesion severity [10] - The company has entered into a license agreement granting exclusive global rights to certain patents and know-how for the development and commercialization of licensed products [10][11] Financial Summary - Revenues for the nine months ended September 30, 2024, amounted to $452,000, a significant increase from no revenues in the same period of 2023, attributed to the CDMO unit generating revenues for the first time [12] - R&D expenses decreased to $4,195,000 from $4,583,000 year-over-year, reflecting minor fluctuations in activities [13] - Marketing, general, and administrative expenses decreased to $1,767,000 from $3,300,000, primarily due to reduced salaries and service provider costs [14] - Financial income increased to $13,374,000, primarily due to $14,759,000 from the loan conversion to equity [14] - The net gain for the nine months ended September 30, 2024, was $7,026,000, compared to a net loss of $4,170,000 in the same period of 2023 [15]
Scinai Publishes Financial Results and Provides Business Update; Shareholders' Equity up from negative $7.3 million as of June 30, 2024, to positive $10 million