AccuStem Sciences Reports Reduced Net Loss, Improved Cash Position, and Pursues Additional Equity Financing

AccuStem Sciences, Inc. reported its financial results for the six months ended June 30, 2024, revealing a net loss of $804,827, a decrease from a net loss of $1,206,097 for the same period in 2023. The company’s net loss per share attributable to common stockholders improved to $(0.07) from $(0.11) year-over-year. For the three months ended June 30, 2024, the net loss was $278,225, compared to $372,756 in the prior year, reflecting a 25% reduction in loss from operations.

Total operating expenses for the six months ended June 30, 2024, were $804,827, down from $1,206,097 in 2023, primarily due to a significant reduction in general and administrative expenses, which decreased by 38% to $739,884 from $1,175,920. Research and development expenses, however, increased by 115% to $64,943, up from $30,177, indicating a strategic focus on product development.

As of June 30, 2024, AccuStem's total current assets rose to $137,427,000 from $129,849,000 at the end of 2023, while total assets increased to $139,660,000 from $133,897,000. The company’s cash position improved significantly, with cash at $46,072 compared to $21,481 at the end of December 2023. However, total current liabilities surged to $3,023,966 from $2,245,477, contributing to a stockholders’ deficit of $(2,884,306), worsening from $(2,111,580) at the end of the previous fiscal year.

AccuStem is actively pursuing additional equity financing to support its operations, which management believes are insufficient for the next 12 months. The company is focused on its primary product, StemPrintER, a prognostic assay for breast cancer, with plans to expand its platform to other tumor types. The estimated market opportunity for StemPrintER exceeds $1.3 billion annually.

In terms of operational changes, the company entered into a one-year Directors and Officers Liability Insurance agreement and has ongoing obligations under a licensing agreement with the IEO/University of Milan, which includes milestone payments. The company has also identified material weaknesses in its disclosure controls and procedures, attributed to a lack of accounting resources, which management is addressing.

Overall, while AccuStem has made strides in reducing losses and increasing cash reserves, it faces significant challenges related to funding and operational sustainability in the near term.