Tue, May 14, 9:37 PM (73 days ago)
First Wave BioPharma, Inc. reported its financial results for the quarter ended March 31, 2024. Key highlights include: 1. **Revenue and Expenses**: The company recorded no revenue, with research and development expenses decreasing by 58% to $0.6 million due to reduced clinical trial costs. General and administrative expenses surged by 220% to $8.6 million, driven by $4 million in non-cash expenses related to financial advisor fees, increased legal fees, share-based compensation, and personnel costs. 2. **Net Income**: The company reported a net income of $5.6 million, a significant improvement from a net loss of $4.1 million in the same period last year. This was primarily due to a $14.9 million income tax benefit resulting from the release of a valuation allowance following the acquisition of ImmunogenX. 3. **Cash Flow**: Net cash used in operating activities was $3.7 million, while investing activities provided $0.1 million from the acquisition of ImmunogenX. Financing activities generated $3.4 million, mainly from a registered direct offering. 4. **Balance Sheet**: As of March 31, 2024, First Wave BioPharma had cash and cash equivalents of $3.4 million, with total assets increasing to $91.1 million from $6.9 million at the end of 2023, mainly due to the acquisition of ImmunogenX. 5. **Acquisitions and Offerings**: The company closed a merger with ImmunogenX and completed a registered direct offering in March 2024, raising gross proceeds of $4 million. Another offering in May 2024 raised $1.1 million. 6. **Nasdaq Compliance**: The company regained compliance with Nasdaq's minimum stockholders’ equity rule and minimum bid price rule but received a Letter of Reprimand for a prior violation related to shareholder approval requirements. 7. **Future Outlook**: The company anticipates increased research and development expenses as it progresses with its pipeline, particularly with Latiglutenase, and continues to seek additional funding to support its operations and development plans.