Akari Therapeutics(US:AKTX)2024-05-15 20:47Financial Performance - The company reported a loss from operations of $6.0 million for the three months ended March 31, 2024, a 30% increase compared to a loss of $4.6 million for the same period in 2023[132]. - The company recorded a net loss applicable to ordinary shareholders of $5.6 million for the three months ended March 31, 2024, compared to a net income of $1.0 million for the same period in 2023[145]. - For the three months ended March 31, 2024, the company reported a net cash used in operating activities of $4.0 million, a decrease from $4.9 million in the same period in 2023[159]. - The company experienced a net decrease in cash of $2.5 million for the three months ended March 31, 2024, compared to a decrease of $1.7 million in the same period in 2023[159]. - The company has substantial doubt regarding its ability to continue as a going concern within one year, given ongoing operating losses and negative cash flows[157]. Operating Expenses - Total operating expenses for the same period were $5.989 million, reflecting a 30% increase from $4.594 million in 2023[132]. - Research and development expenses increased by approximately $0.5 million, or 32%, totaling $2.279 million for the three months ended March 31, 2024, compared to $1.731 million in 2023[134]. - The HSCT-TMA clinical development expenses rose by $0.443 million, or 233%, due to increased patient enrollment and related clinical trial costs[135]. - General and administrative expenses increased by approximately $0.8 million, or 30%, totaling $3.710 million for the three months ended March 31, 2024[140]. Workforce and Cost Reduction - A reduction-in-force of approximately 67% of the total workforce was implemented to reduce operating costs related to the suspended HSCT-TMA program[127]. - The company expects expenses related to the reduction-in-force to be in the range of approximately $3.1 million to $3.2 million, including $1.6 million of non-cash expenses[128]. Funding and Capital Raising - The company raised $1.0 million through convertible promissory notes in May 2024[150]. - In March 2024, the company completed a private placement, selling 1,320,614 ADSs at $1.48 per ADS, resulting in approximately $2.0 million in gross proceeds and $1.7 million in net proceeds after expenses[151]. - As of the report date, the company's existing cash is sufficient to fund operations until the end of May 2024, with plans to raise additional capital to support operations through the anticipated merger closing in Q3 2024[152]. - The merger is contingent on a PIPE investment that is expected to yield at least $10 million in net proceeds[152]. - The company reported net cash provided by financing activities of $1.5 million for the three months ended March 31, 2024, compared to $3.2 million in the same period in 2023[162]. Strategic Focus - The company plans to suspend its HSCT-TMA program and focus on the PAS-nomacopan GA program following a portfolio prioritization review[126]. - The company has no products approved for sale and does not generate revenue from product sales, indicating a reliance on external funding for future operations[152]. - The company may face significant operational challenges if unable to secure additional funding, potentially leading to delays or discontinuation of product development[154].