Cyclacel Pharmaceuticals Reports Significant Financial Challenges, Operating Loss, and Cash Flow Concerns in Latest 10-Q Filing

Cyclacel Pharmaceuticals, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company recorded revenues of $10,000 for the three months ended September 30, 2024, a decline from $16,000 in the same period of 2023. For the nine months ended September 30, 2024, revenues fell sharply to $43,000 from $389,000 in the prior year. This decrease is attributed to reduced clinical manufacturing cost recoveries related to an investigator-sponsored study.

Operating expenses for the third quarter of 2024 were $2,187,000, down from $6,861,000 in the same quarter of 2023. For the nine-month period, operating expenses decreased to $10,219,000 from $20,482,000. The reduction in expenses is primarily due to decreased spending on clinical trials and non-clinical activities, particularly in the transcriptional regulation program (fadraciclib) and the anti-mitotic program (plogosertib).

The company reported an operating loss of $(2,177,000) for the three months ended September 30, 2024, compared to $(6,845,000) in the same period of 2023. The net loss for the third quarter was $(1,957,000), a significant improvement from $(6,032,000) in the prior year. For the nine months, the net loss decreased to $(8,160,000) from $(17,284,000) in 2023.

As of September 30, 2024, Cyclacel's cash and cash equivalents stood at $2,982,000, down from $5,944,000 a year earlier. The company reported total current assets of $4,913,000, a decrease from $11,113,000 in 2023. Current liabilities also decreased to $6,351,000 from $8,148,000, resulting in a working capital deficit of $(1,438,000) compared to a surplus of $2,965,000 in the previous year.

The company continues to face substantial doubt regarding its ability to continue as a going concern, primarily due to its history of losses and negative cash flows from operations. As of September 30, 2024, Cyclacel had a stockholders' equity deficit of approximately $(970,000), which is not in compliance with Nasdaq's Equity Rule. The Nasdaq Hearings Panel has granted the company until December 24, 2024, to regain compliance, failing which its securities may be delisted.

In terms of strategic developments, Cyclacel has focused on its clinical-stage programs, particularly fadraciclib and plogosertib, while also exploring options for additional capital through private equity financing or strategic transactions. The company has also implemented cost-reduction measures in its general and administrative expenses, which are expected to decrease further in the upcoming fiscal year.