Actuate Therapeutics, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending June 30, 2024. The company experienced a substantial decline in cash and cash equivalents, which fell to $351,709 from $2,958,659 at the end of 2023. Total current assets also decreased sharply to $549,687 from $2,995,566, while total assets dropped to $1,730,826 from $2,995,566. The company's total liabilities surged to $21,808,988, up from $8,443,675, primarily due to the introduction of related party convertible notes payable valued at $6,900,000. Consequently, the total stockholders’ deficit widened to $(114,256,566) from $(99,626,513).

For the three months ended June 30, 2024, Actuate reported total operating expenses of $5,435,449, a slight decrease from $5,584,419 in the same period of 2023. However, the net loss for the quarter increased to $(6,572,219) from $(5,524,286) year-over-year. For the six-month period, the net loss escalated to $(14,868,278) compared to $(10,794,541) in 2023, reflecting a growing financial strain.

Research and development expenses for the first half of 2024 rose significantly, driven by increased costs associated with clinical trials, particularly the Phase 2 trial for metastatic pancreatic ductal adenocarcinoma (mPDAC). General and administrative expenses also increased due to higher professional fees, including costs related to board member recruitment and legal services.

In a strategic move, Actuate completed its initial public offering (IPO) on August 14, 2024, issuing 2,800,000 shares at $8.00 per share, raising approximately $22 million in net proceeds. The IPO was accompanied by an overallotment option that allowed for an additional 420,000 shares to be sold. This capital infusion is critical as management anticipates that current cash reserves will not meet operational needs for the next twelve months, raising concerns about the company's ability to continue as a going concern.

The company has not generated any revenue since its inception and continues to rely on external financing to support its operations. Actuate's lead product, Elraglusib, is still in clinical trials, and the timeline for potential revenue generation remains uncertain. The company faces ongoing risks related to its financial health, including the potential dilution of stockholder ownership if additional capital is raised through equity offerings.