Candel Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company recorded cash and cash equivalents of $16.6 million, a substantial decrease from $35.4 million at the end of 2023. Total current assets also fell to $18.1 million from $36.8 million, while total assets decreased to $21.5 million from $41.2 million. Conversely, total liabilities rose to $36.8 million from $28.5 million, resulting in a stockholders’ equity deficit of $15.3 million, down from a positive equity of $12.7 million at the end of 2023.

For the three months ended September 30, 2024, Candel reported a net loss of $10.6 million, compared to a loss of $8.4 million for the same period in 2023. The net loss per share increased to $(0.33) from $(0.29). For the nine months ended September 30, 2024, the net loss was $41.1 million, up from $26.8 million in the prior year, with a net loss per share of $(1.35) compared to $(0.93) in 2023. Operating expenses for the quarter were $8.8 million, slightly down from $8.9 million in 2023, while total operating expenses for the nine months decreased to $25.2 million from $28.1 million.

The company has not generated any revenue from product sales and does not anticipate doing so in the near future. Candel's primary focus remains on advancing its product candidates, CAN-2409 and CAN-3110, through clinical trials. The company is currently in pivotal phase 3 trials for CAN-2409 targeting localized prostate cancer and has received fast track designations for both CAN-2409 and CAN-3110 for various indications.

In November 2023, Candel's board authorized a restructuring plan that led to a workforce reduction of approximately 45%, incurring severance costs of $0.7 million. This restructuring was completed in early 2024. The company has also filed a shelf registration statement to raise up to $200 million in securities, with $7.7 million raised through its ATM program as of September 30, 2024.

Candel faces substantial doubt regarding its ability to continue as a going concern, necessitating additional funding to sustain operations. The company has acknowledged that its current cash reserves are expected to fund operations only until the end of Q1 2025. The ongoing financial strain, coupled with the need for significant capital to support clinical development, poses considerable risks to its future operations and growth prospects.