Xenetic Biosciences(XBIO) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended September 30, 2024, was $614,243, slightly up from$611,174 for the same period in 2023, indicating a growth of approximately 0.3%[10] - Net loss for the three months ended September 30, 2024, was $436,671, compared to a net loss of$1,055,555 for the same period in 2023, reflecting an improvement of about 58.7%[10] - Basic and diluted net loss per share improved from $(0.69) in Q3 2023 to$(0.28) in Q3 2024, a reduction of approximately 59.4%[10] - Net loss for the nine months ended September 30, 2024, was $2,905,754, compared to a net loss of$2,963,072 for the same period in 2023, representing a decrease of approximately 1.9%[17] - The company reported a net loss of approximately $2.9 million for the nine months ended September 30, 2024, with an accumulated deficit of approximately$196.1 million[78] - The company incurred a net loss of approximately $2.1 million for the nine months ended September 30, 2024, compared to a net loss of approximately$3.3 million for the same period in 2023, indicating a reduction in losses[81] Assets and Equity - Total current assets decreased from $9,586,874 as of December 31, 2023, to$7,027,648 as of September 30, 2024, representing a decline of approximately 26.7%[6] - Total assets decreased from $10,605,226 as of December 31, 2023, to$8,046,000 as of September 30, 2024, a reduction of about 24.1%[7] - Total stockholders' equity decreased from $9,795,641 as of December 31, 2023, to$7,036,593 as of September 30, 2024, a decline of about 28.3%[7] - Cash at the end of the period was $6,839,560, down from$9,776,073 as of September 30, 2023, indicating a decrease of approximately 30%[17] - Working capital decreased by approximately $2.8 million to$6.0 million at September 30, 2024, compared to $8.8 million at December 31, 2023[78] Expenses - Research and development expenses for the three months ended September 30, 2024, were$367,985, down from $1,020,618 in the same period of 2023, a decrease of approximately 64.1$737,241 in Q3 2023 to $745,731 in Q3 2024, an increase of about 1.9$652,633, or 63.9%, to $367,985 for the quarter ended September 30, 2024, compared to$1,020,618 in the prior year[67] - Research and development expenses for the nine months ended September 30, 2024, decreased by approximately $273,060, or 10.8$2,246,077 from $2,519,137 in the comparable period in 2023[74] - General and administrative expenses increased by approximately$101,736, or 3.9%, to $2,710,670 for the nine months ended September 30, 2024, compared to$2,608,934 in the same period of 2023[75] Cash Flow and Operating Activities - Net cash used in operating activities for the nine months ended September 30, 2024, was $2,143,486, a reduction of 35.5$3,321,192 in the prior year[17] - Cash flows used in operating activities decreased by approximately $1.2 million from the previous year, reflecting improved operational efficiency[81] - There were no cash flows from investing or financing activities for the nine months ended September 30, 2024 and 2023, indicating a lack of new investments or financing arrangements during this period[82] Future Outlook and Financing - The company has incurred substantial losses since inception and expects to continue incurring operating losses in the near term, indicating ongoing financial challenges[22] - The company anticipates needing additional capital in the long term to pursue its business initiatives, highlighting the need for future financing[22] - The company anticipates needing additional capital in the long-term to pursue business initiatives, with access to potential public or private equity offerings and debt financings[80] Research and Collaborations - The company has entered into a research collaboration with Volition, which has funded$26,000 to date for developing NETs-targeted adoptive cell therapies[31] - The company has committed up to $0.9 million to Scripps Research for advancing the pre-clinical development of its DNase oncology platform technology[33] - The company has entered into a Research Funding Agreement with UVA, paying approximately$0.2 million to advance the development of its systemic DNase program[35] - The Company entered into a Second Amendment to Research Funding and Option Agreement with Scripps, providing up to approximately $400,000 for ongoing research[53] Stock and Warrants - Weighted-average shares of common stock outstanding increased from 1,532,600 in Q3 2023 to 1,541,722 in Q3 2024, an increase of approximately 0.6$33.00 per share, expiring on February 23, 2025[41] - No public warrants were outstanding as of September 30, 2024, following the expiration of warrants that allowed for cashless exercise[43] Tax and Legal Matters - As of September 30, 2024, the valuation allowance against deferred tax assets was approximately $40.6 million, up from$39.7 million as of December 31, 2023[47] - The Company did not record any unrecognized tax positions as of September 30, 2024[48] - The company is not currently subject to any material legal proceedings, which may positively impact its financial stability[91] Internal Controls and Risk Factors - Management evaluated the effectiveness of disclosure controls and procedures, concluding they are effective for timely reporting[88] - There were no changes in internal control over financial reporting that would materially affect the company's financial reporting[89] - There have been no material changes to the risk factors previously disclosed in the Annual Report for the year ended December 31, 2023[92] - As of September 30, 2024, there were no material changes in contractual obligations and commitments from those disclosed in the Annual Report for the year ended December 31, 2023[82] - The company does not have any off-balance sheet financing arrangements that could materially affect its financial condition[83]