CervoMed Inc., a clinical-stage biotechnology company focused on developing treatments for age-related neurologic disorders, reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $4.8 million for the three months ended September 30, 2024, a stark contrast to a net income of $2.2 million for the same period in 2023. For the nine-month period, the net loss was $9.6 million, compared to a net income of $0.2 million in the prior year.
Total grant revenue for the three months ended September 30, 2024, was $1.9 million, reflecting a 27% increase from $1.5 million in the same quarter of 2023. For the nine-month period, grant revenue rose to $7.6 million, up 63% from $4.7 million in 2023. This increase is attributed to a larger number of active trial sites for the ongoing RewinD-LB Trial, which is funded by a $21.3 million grant from the National Institute on Aging (NIA).
Operating expenses surged significantly, with total operating expenses for the three months ended September 30, 2024, reaching $7.3 million, a 75% increase from $4.2 million in the same period of 2023. Research and development expenses alone rose by 186% to $5.1 million, driven by costs associated with the RewinD-LB Trial and increased personnel-related expenses.
CervoMed's total assets as of September 30, 2024, amounted to $48.9 million, a substantial increase from $10.0 million at the end of 2023. This growth was primarily due to the completion of a private placement in April 2024, which generated approximately $50 million in gross proceeds. The company’s total liabilities increased to $3.2 million from $2.6 million at the end of 2023.
The company’s cash and cash equivalents, along with marketable securities, totaled approximately $46.7 million as of September 30, 2024. Despite this strong cash position, CervoMed anticipates continued losses and expects to require additional financing to support ongoing operations and product development.
CervoMed's accumulated deficit reached $64.0 million as of September 30, 2024, reflecting the challenges faced in achieving profitability. The company is actively pursuing future financing options, including equity offerings and collaborations, to sustain its operations and advance its clinical programs.
About CervoMed Inc.
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