Xenetic Biosciences(XBIO) - 2019 Q1 - Quarterly Report

Financial Performance - The company incurred a net loss of approximately $1.3 million for the three months ended March 31, 2019, compared to a net loss of approximately $1.8 million for the same period in 2018, representing a decrease of 27.2%[87] - The company had an accumulated deficit of approximately $154.6 million as of March 31, 2019, compared to an accumulated deficit of approximately $153.2 million at December 31, 2018[87] - The company incurred a net loss of approximately $1.3 million for the three months ended March 31, 2019, with an accumulated deficit of $154.6 million[98] - The company expects to continue incurring losses for the foreseeable future and will need to raise additional capital or pursue other strategic alternatives[87] - The company expects to continue incurring losses and will need to raise additional capital or pursue strategic alternatives in the near term to sustain operations[98] - The independent registered public accounting firm expressed doubt about the company's ability to continue as a going concern due to substantial losses incurred since inception[104] Expenses - Research and development expenses decreased by approximately $0.2 million, or 34.3%, to $0.5 million for the quarter ended March 31, 2019, down from $0.7 million in the comparable quarter in 2018[93] - General and administrative expenses decreased by approximately $0.3 million, or 23.1%, to $0.9 million for the quarter ended March 31, 2019, compared to $1.1 million in the same quarter of 2018[95] Capital and Financing - The company closed a $3.1 million registered direct common stock offering on March 7, 2019, resulting in $2.7 million of net proceeds[88] - Working capital increased by $1.6 million during the quarter due to the issuance of common stock and warrants, resulting in $2.7 million of net proceeds[98] - The company has no committed sources of additional capital and has not secured any commitment for future financing at this time[103] Assets and Liabilities - The company’s working capital deficit was approximately $1.2 million as of March 31, 2019, compared to a deficit of $0.4 million at December 31, 2018[87] - As of March 31, 2019, the company had approximately $2.0 million in cash and $2.0 million in current liabilities, compared to $0.6 million in cash and $1.6 million in current liabilities at December 31, 2018[99] Research and Development - The company’s primary investigational drug candidate, XBIO-101, is for the treatment of progestin-resistant endometrial cancer and has been granted orphan drug designation by the FDA[82] - The company plans to acquire the XCART technology platform, which is expected to close in the first half of 2019, to develop cell-based therapeutics for B-cell lymphomas[86] - The company’s research and development focus for the near future will remain on XBIO-101 and the XCART platform technology[85] Revenue - More than 90% of the milestone and sublicense revenue received to date has been from a single collaborator, Takeda[100] Cash Flows - Cash flows used in operating activities totaled approximately $1.3 million for the three months ended March 31, 2019, primarily due to the net loss and deferred costs related to the XCART acquisition[106] - Cash flows provided by investing activities for the three months ended March 31, 2019, totaled $2,000 from the sale of property and equipment[108]