AN2 Therapeutics, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company had cash and cash equivalents of $33.5 million, a substantial increase from $15.6 million at the end of 2023. However, total current assets decreased to $97.7 million from $110.5 million, and total assets fell from $138.7 million to $97.7 million during the same period. The accumulated deficit worsened to $(198.3 million) from $(154.5 million) at the end of 2023, while total stockholders’ equity decreased to $87.7 million from $124.7 million.

For the three months ended September 30, 2024, operating expenses were $14.0 million, down from $18.2 million in the same period in 2023. Research and development expenses also decreased significantly to $8.3 million from $14.4 million. The net loss attributable to common stockholders for the quarter was $(12.7 million), an improvement from $(16.7 million) in the prior year, resulting in a net loss per share of $(0.43) compared to $(0.65).

For the nine months ended September 30, 2024, total operating expenses were $48.2 million, down from $50.8 million in 2023. The net loss for this period was $(43.8 million), compared to $(47.8 million) in the previous year, reflecting a reduction in losses. The company reported net cash used in operating activities of $(44.0 million) for the nine months, an increase from $(36.2 million) in 2023.

Strategically, AN2 Therapeutics announced a workforce reduction of approximately 50% in August 2024 as part of a restructuring plan following the discontinuation of the EBO-301 study. This restructuring resulted in severance and other charges of $2.2 million for both the three and nine months ended September 30, 2024. The company has not generated any revenue since its inception and continues to rely on funding from equity offerings, including a $65.5 million underwritten offering in August 2023.

The company is focused on developing epetraborole, a treatment for Mycobacterium avium complex lung disease, and has plans for further clinical trials in 2025. Despite the challenges, management believes that current cash resources will fund operations for at least 12 months from the issuance date of the financial statements.