Cyclo Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with product sales for the three months amounting to $233,772, a decrease of 53% from $495,477 in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $559,326, down 27% from $765,006 in the prior year. The decline was primarily attributed to a sharp drop in sales of Trappsol® HPB, which fell 89% in Q3 2024 compared to Q3 2023.

The company's gross profit also decreased, totaling $216,974 for the three months ended September 30, 2024, compared to $456,710 in the same quarter of 2023. Total expenses surged to $8,506,417 for the quarter, up from $5,224,170 a year earlier, leading to a loss from operations of $(8,289,443), compared to $(4,767,460) in Q3 2023. The net loss for the quarter was $(8,832,944), significantly higher than the $(4,771,353) reported in the same quarter of the previous year.

For the nine-month period, the net loss increased to $(19,157,261) from $(14,414,893) in 2023. The basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.31), slightly higher than $(0.29) in the prior year. The nine-month loss per share improved to $(0.67) from $(1.00).

As of September 30, 2024, Cyclo Therapeutics reported cash and cash equivalents of $928,010, a significant decline from $9,246,592 at the end of 2023. The company also faced negative working capital of approximately $15.5 million, compared to positive working capital of $3.9 million at the end of the previous fiscal year. The accumulated deficit increased to $(103,013,942) from $(83,856,681) at the end of 2023.

Strategically, Cyclo Therapeutics completed a merger with Applied Molecular Transport Inc. in December 2023 and entered into a merger agreement with Rafael Holdings, Inc. on August 21, 2024, which is expected to close in late December 2024. The company has also borrowed $15 million from Rafael to support ongoing operations. However, it received a Nasdaq delisting notice on October 4, 2024, due to non-compliance with several listing rules, including a closing bid price below $1.00 per share and insufficient stockholders’ equity.

Overall, Cyclo Therapeutics is navigating a challenging financial landscape while pursuing strategic mergers and addressing operational funding needs.