Cellectar Biosciences Reports Improved Financials, Reduced Net Loss, and Progress in Cancer Treatment Clinical Trials

Cellectar Biosciences, Inc., a late-stage clinical biopharmaceutical company focused on cancer treatment, reported significant financial developments in its 10-Q filing for the quarter ending June 30, 2024. The company experienced a substantial increase in cash and cash equivalents, rising to $25.9 million from $9.6 million at the end of December 2023. Total current assets also grew to $27.9 million, compared to $10.5 million in the previous period. Conversely, total current liabilities decreased to $15.2 million from $25.4 million, resulting in a notable improvement in total stockholders’ equity, which shifted from a deficit of $15.2 million to a positive $12.4 million.

Operating expenses for the three months ended June 30, 2024, were $13.7 million, up from $8.3 million in the same period of 2023. For the six-month period, operating expenses increased to $25.7 million from $17.0 million year-over-year. The loss from operations for the second quarter was $13.7 million, compared to $8.3 million in the prior year, while the net loss for the six months reached approximately $27.6 million, up from $17.4 million in 2023.

The company reported a gain on the valuation of warrants of $12.5 million for the three months ended June 30, 2024, contrasting with a loss of $2.0 million in the same period of 2023. Total other income for the quarter was $12.8 million, compared to an expense of $1.9 million in the prior year. This shift contributed to a reduced net loss of $919,371 for the quarter, compared to a net loss of $10.2 million in the same period of 2023.

Cellectar's funding strategy remains heavily reliant on external capital, with proceeds from the exercise of warrants totaling $43.8 million for the six months ended June 30, 2024. The company is actively seeking additional capital to sustain operations beyond the second quarter of 2025, as it faces substantial doubt regarding its ability to continue as a going concern.

Management has identified material weaknesses in internal controls over financial reporting, necessitating a restatement of previously issued financial statements. The company plans to enhance its internal controls by hiring qualified personnel and implementing an ERP system.

Cellectar's lead product, iopofosine I 131, continues to progress through clinical trials, with recent studies showing promising results in treating various cancers. The company is also evaluating the impact of new accounting standards on its financial statements.