Armata Pharmaceuticals, Inc. (Ticker: ARMP) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period.

For the three months ended September 30, 2024, the company recognized grant revenue of $2.973 million, a substantial increase of 142.7% from $1.225 million in the same period of 2023. For the nine months, grant revenue rose to $3.939 million from $3.001 million, marking a 31.3% increase. This growth is attributed to the modification of the MTEC Agreement, which increased the total award to $21.6 million, with funding aimed at supporting clinical studies for its phage-based therapeutics.

Total operating expenses for the third quarter increased to $12.729 million from $11.561 million year-over-year, while for the nine months, expenses rose slightly to $35.836 million from $34.312 million. Research and development expenses for the third quarter were $9.485 million, up 18.9% from $7.978 million in 2023, primarily due to increased clinical trial costs associated with the AP-PA02 candidate. Despite the rise in expenses, the operating loss for the third quarter decreased to $(9.756) million from $(10.336) million in the prior year.

The net loss for the three months ended September 30, 2024, was $(5.481) million, a significant reduction from $(31.161) million in the same quarter of 2023, reflecting an 82.4% decrease. For the nine months, the net loss was $(21.516) million, down from $(49.198) million, a 56.3% improvement. The net loss per share for the third quarter was $(0.15), compared to $(0.86) in the prior year.

Armata's cash and cash equivalents as of September 30, 2024, stood at $17.141 million, an increase from $13.523 million at the end of 2023. However, the company indicated that this amount is insufficient to fund operations for the next 12 months, raising concerns about its ability to continue as a going concern. The company has entered into a $35 million loan agreement with Innoviva Strategic Opportunities LLC, which is secured by its assets and has a maturity date of June 4, 2025.

Total liabilities increased to $149.210 million as of September 30, 2024, from $130.428 million at the end of 2023, while the accumulated deficit grew to $(330.335) million from $(308.819) million. The company continues to focus on developing pathogen-specific bacteriophage therapeutics, with plans for pivotal Phase 3 clinical studies following successful Phase 2 trials.