Aptevo Therapeutics Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company, a clinical-stage biotechnology firm focused on immuno-oncology, experienced a net loss of $17.8 million for the nine months ended September 30, 2024, compared to a net loss of $11.5 million for the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $241.3 million.

The company's cash and cash equivalents decreased sharply to $7.8 million as of September 30, 2024, down from $19.1 million at the end of the same period in 2023. This decline reflects a net cash used in operating activities of $18.0 million for the nine months ended September 30, 2024, compared to $6.5 million for the same period in 2023. The company also reported total current assets of $10.0 million, down from $19.1 million at the end of 2023.

Operating expenses for the third quarter of 2024 were $5.2 million, a decrease from $6.6 million in the same quarter of 2023. This reduction was primarily due to lower research and development expenses, which fell to $3.1 million from $3.9 million year-over-year. General and administrative expenses also decreased to $2.1 million from $2.7 million.

In terms of financing, Aptevo raised $8.9 million from the issuance of common stock and pre-funded warrants during the nine months ended September 30, 2024, compared to $6.4 million in the same period in 2023. The company completed several public offerings, including a notable one on September 16, 2024, which generated $2.5 million in net proceeds.

Strategically, Aptevo is focused on advancing its clinical candidates, mipletamig and ALG.APV-527, utilizing its proprietary ADAPTIR and ADAPTIR-FLEX platforms. The company initiated a Phase 1b/2 trial for mipletamig in August 2024 and reported promising results from the ALG.APV-527 trial, where 60% of evaluable patients achieved stable disease.

Despite these developments, Aptevo faces substantial risks, including the potential for delisting from Nasdaq due to non-compliance with the bid price requirement, as its stock has traded below $1.00 per share for an extended period. The company has until December 23, 2024, to regain compliance. Additionally, management expressed substantial doubt about the company's ability to continue as a going concern through August 2025, highlighting the need for further funding to support ongoing operations and clinical development.