Tue, May 28, 9:23 PM (146 days ago)
Tevogen Bio Holdings Inc. reported significant changes in its financial health and performance for the quarter ended March 31, 2024, following a reverse merger with Semper Paratus Acquisition Corporation. The company's total assets decreased from $5.5 million at year-end 2023 to $3.4 million, while liabilities dropped significantly from $99.9 million to $9.2 million due to the conversion of convertible promissory notes into common stock. The company reported a net income of $11.3 million, primarily driven by a $48.5 million gain from the change in fair value of convertible promissory notes, offset by $7.5 million in merger transaction costs and $29.5 million in operating expenses. Operating expenses surged due to $26.3 million in stock-based compensation linked to the merger. Cash flow from operations was negative at $2.2 million, with a cash balance of $1.3 million at quarter-end. The company raised $2.4 million through financing activities and anticipates additional funding needs to sustain operations and support ongoing clinical trials. Substantial doubt exists about its ability to continue as a going concern without further financing.