180 Life Sciences Corp. (formerly KBL Merger Corp. IV) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which is transitioning from a clinical-stage biotechnology focus to the iGaming sector, recorded total current assets of $1.2 million, a decrease from $3.6 million at the end of 2023. However, total assets increased to $10.5 million, up from $5.3 million, while total current liabilities rose to $6.4 million from $5.1 million, resulting in improved stockholders’ equity of $3.7 million compared to a deficit of $127,733 at the end of 2023.

For the three months ended September 30, 2024, the company reported total operating expenses of $979,093, a significant reduction from $3.5 million in the same period of 2023. The net loss for the quarter was $836,720, down 92% from a net loss of $10.3 million in the prior year. For the nine months ended September 30, 2024, the net loss was $1.9 million, a substantial decrease from $18.7 million in the same period of 2023. The company attributed these improvements to reduced operating expenses and increased other income, which totaled $2.9 million for the nine months, compared to a net expense of $9 million in the previous year.

Strategically, 180 Life Sciences has shifted its focus towards the online gaming industry, highlighted by its acquisition of source code and intellectual property for an online blockchain casino on September 29, 2024. This acquisition involved issuing 1 million shares of Series B Convertible Preferred Stock and warrants to purchase 3 million shares of common stock. The company plans to invest significantly in the commercialization of these assets, with expected costs of approximately $750,000 for the remainder of 2024 and $2 million for 2025.

Despite these developments, the company faces ongoing challenges, including a working capital deficit of $5.2 million and an accumulated deficit of $129.2 million. The financial statements are prepared on a going concern basis, indicating potential adjustments may be necessary if the company cannot continue operations. The company has also expressed uncertainty about achieving profitability in the future, emphasizing the need for additional capital to fund operations and repay debts.

In terms of corporate governance, 180 Life Sciences has been addressing compliance issues with Nasdaq, having regained compliance with the Equity Rule in October 2024 after the acquisition. However, it remains out of compliance with audit committee requirements, necessitating the appointment of independent directors. The company is actively seeking to meet these requirements to avoid potential delisting.