Cassava Sciences, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing treatments for neurodegenerative diseases, particularly Alzheimer's, showed a notable increase in total assets, which rose to $223.8 million from $151.7 million at the end of 2023. Cash and cash equivalents also increased to $149.0 million, up from $121.1 million.

For the three months ended September 30, 2024, operating expenses totaled $30.6 million, compared to $27.9 million in the same period of 2023. Research and development expenses decreased to $17.7 million from $23.6 million, while general and administrative expenses surged to $12.9 million from $4.3 million, primarily due to a $40 million legal settlement with the SEC. The net loss for the quarter was $27.9 million, slightly higher than the $25.7 million loss reported in the prior year.

In contrast, the nine-month period ending September 30, 2024, saw a net income of $3.3 million, a significant recovery from a net loss of $76.3 million in the same period of 2023. This turnaround was attributed to increased financing activities, including $123.6 million raised from the exercise of common stock warrants, compared to only $1.4 million in the previous year.

The company’s accumulated deficit stood at $377.5 million as of September 30, 2024. The increase in total current liabilities to $57.0 million from $14.2 million at the end of 2023 was largely due to the SEC settlement and accrued severance costs for former executives.

Strategically, Cassava is advancing its lead drug candidate, simufilam, which is currently undergoing two Phase 3 clinical trials. The company has completed patient enrollment for these trials, with top-line results expected by the end of 2024 and mid-2025. However, the company is also facing legal challenges, including a $40 million civil penalty from the SEC and ongoing investigations related to alleged misconduct by a former employee.

Management changes included the appointment of Richard J. Barry as President and CEO, following the resignation of Remi Barbier. The company is also navigating a complex legal landscape, with multiple lawsuits that could impact its operations and financial stability.