Azitra, Inc. 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, Azitra generated no revenue, a stark decline from $310,700 in the same period in 2023. For the nine months, total revenue was $596,000, up from just $7,500 in the prior year. The company remains in its pre-commercialization phase, focusing on developing genetically engineered bacteria for dermatological therapeutics.

Operating expenses for the third quarter increased to $2,929,207, a 27% rise from $2,304,432 in 2023. The nine-month operating expenses totaled $8,558,484, reflecting a 53% increase from $5,576,069 in the previous year. The loss from operations for the third quarter was $(2,929,207), compared to $(1,993,732) in 2023, marking a 47% increase in loss. For the nine months, the loss from operations was $(8,550,984), up 72% from $(4,980,069) in the prior year.

Despite the increase in operating losses, the company reported a significant rise in total other income for the third quarter, which reached $1,919,716, compared to $50,443 in 2023. This increase was primarily driven by a $4,001,469 change in the fair value of warrants. The net loss for the third quarter was $(1,009,491), a 48% decrease from $(1,943,289) in the same period last year. For the nine months, the net loss was $(6,574,359), down from $(8,829,996) in 2023.

Azitra's cash and cash equivalents increased significantly to $7,260,234 as of September 30, 2024, compared to $1,795,989 at the end of 2023. Total assets also rose to $9,777,499 from $5,115,486, while total liabilities decreased to $1,719,246 from $2,202,340. The company’s working capital stood at approximately $6.3 million.

Strategically, Azitra completed follow-on public offerings in February and July 2024, raising a total of $13.4 million, which contributed to its improved liquidity. The company is actively pursuing additional funding through equity and debt financing to support its operations. However, management expressed substantial doubt about the company's ability to continue as a going concern due to ongoing losses and the lack of product revenue.

The company is advancing its clinical programs, with ATR-12 and ATR-04 in various stages of trials, and has established partnerships to enhance its research and development capabilities.