Thu, Aug 29, 11:39 AM (314 days ago)
Onconetix, Inc. reported significant financial challenges in its Q2 2024 results, ending June 30, 2024. The company recorded a net loss of approximately $14.3 million for the quarter, compared to $6.9 million in Q2 2023, largely due to substantial impairments totaling $10.3 million in goodwill and $1.2 million in ENTADFI assets. Revenue reached $704,848, primarily from development services, marking a substantial increase from zero in the prior year. The company's total liabilities stood at approximately $24 million, with a working capital deficit of $18.6 million and cash reserves dwindling to $930,541, raising substantial doubt about its ability to continue as a going concern. Cash burn for operating activities was about $8.4 million in the first half of 2024. Management has paused commercialization of ENTADFI and is exploring strategic alternatives, including a potential sale of assets. They emphasized the need for significant additional capital, as current funds are only expected to sustain operations into September 2024. Future financing may be critical, given upcoming obligations, including a $5 million note payable due in September 2024.