Carisma Therapeutics Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to $26.9 million from $77.6 million at the end of 2023. Total current assets also declined to $34.1 million, down from $80.5 million, while total assets decreased to $42.1 million from $89.6 million. Despite a reduction in total current liabilities to $10.6 million from $15.9 million, the accumulated deficit increased to $(287.9 million) from $(245.1 million) at the end of 2023.

Collaboration revenues for the three months ended September 30, 2024, were $3.4 million, slightly down from $3.8 million in the same period of 2023. However, for the nine months ended September 30, 2024, collaboration revenues increased to $16.0 million from $10.6 million year-over-year. Total operating expenses for the three months ended September 30, 2024, were $16.5 million, significantly lower than $26.2 million in the prior year, contributing to a reduced operating loss of $(13.1 million) compared to $(22.3 million) in 2023. The net loss for the quarter was $(12.7 million), down from $(21.4 million) in the same period last year.

The company implemented a revised operating plan in March 2024, which included a workforce reduction of approximately 37%, aimed at conserving cash and prioritizing the development of its lead product candidate, CT-0525. This candidate, which targets solid tumors overexpressing HER2, received FDA Fast Track designation in June 2024, with the first patient treated in May 2024. The development of CT-0508 has been ceased, and CT-1119 is currently paused pending financing.

Carisma's financial position remains precarious, with substantial doubt about its ability to continue as a going concern within one year from the issuance of the financial statements. The company is exploring various funding strategies, including private placements and licensing arrangements, to secure additional capital. As of September 30, 2024, the company had incurred $1.6 million in one-time employee termination benefits related to the workforce reduction and anticipates needing significant additional funding to support ongoing operations and product development.

The company has not yet commercialized any products and relies heavily on collaboration revenues, particularly from its partnership with Moderna, which has provided substantial upfront payments and milestone opportunities. The future financial outlook remains uncertain, with expectations of continued operating losses and the need for further financing to support clinical trials and product development efforts.