Tue, Sep 24, 8:07 PM (87 days ago)
Actuate Therapeutics, Inc. reported significant financial challenges in its quarterly report for the period ending June 30, 2024. The company recorded a net loss of approximately $6.57 million for Q2 2024, compared to $5.52 million in Q2 2023, reflecting ongoing operational losses and a worsening financial outlook. Total operating expenses decreased slightly to $5.44 million from $5.58 million year-over-year, driven by reduced research and development costs despite increases in general and administrative expenses. As of June 30, 2024, cash and cash equivalents plummeted to $351.7k from $2.96 million at year-end 2023, underscoring liquidity issues with a working capital deficit of $19.5 million. The company’s reliance on external funding is critical, with substantial additional capital needed to support ongoing clinical trials for its sole product candidate, elraglusib. Despite receiving net proceeds of approximately $22 million from its IPO in August 2024, the company expresses doubts about its ability to continue as a going concern without further financing. Challenges include regulatory approval risks, reliance on third-party manufacturers, and competition in the biopharmaceutical space. The company's future operations hinge on successfully advancing elraglusib through clinical trials and securing necessary funding, amidst increasing operational costs and market uncertainties.