Annovis Bio, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on late-stage clinical drug development for neurodegenerative diseases such as Alzheimer's and Parkinson's, showed a marked improvement in its financial position compared to the previous fiscal period.

As of September 30, 2024, cash and cash equivalents stood at $12.6 million, a substantial increase from $5.8 million at the end of 2023. Total assets also rose to $14.4 million from $10.2 million. Notably, the warrant liability decreased significantly to $1.5 million from $13.7 million, and total stockholders’ equity improved to $7.1 million from a deficit of $7.8 million.

For the three months ended September 30, 2024, total operating expenses were $4.4 million, a decrease from $14.9 million in the same period in 2023. This reduction was primarily driven by a significant drop in research and development expenses, which fell to $2.7 million from $13.8 million, attributed to the completion of several clinical trials. The operating loss for the quarter was $4.4 million, down from $14.9 million in the prior year.

The net loss for the three months ended September 30, 2024, was $12.6 million, compared to $14.7 million for the same period in 2023, reflecting an improvement of $2.1 million. For the nine months ended September 30, 2024, the net loss was $18.7 million, significantly reduced from $34.0 million in 2023. The net loss per share for the quarter was $(0.97), an improvement from $(1.63) in the previous year.

The company reported net cash used in operating activities of $13.6 million for the nine months ended September 30, 2024, down from $30.6 million in 2023. Financing activities generated $20.5 million, compared to $8.6 million in the prior year, bolstered by proceeds from warrant exercises and share issuances under an equity line of credit (ELOC) agreement.

Annovis Bio's management expressed concerns regarding the company's ability to continue as a going concern, citing insufficient cash to fund operations for the next year. To address this, the company plans to raise additional capital through equity financings or debt and may defer certain operating expenses. The company is also preparing to initiate a Phase 3 study for Alzheimer's disease in early 2025, which will require substantial funding.