Elicio Therapeutics, Inc., a clinical-stage biotechnology company focused on developing immunotherapies for cancer and infectious diseases, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $18.8 million for the third quarter of 2024, an increase from a net loss of $10.7 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $37.9 million, compared to $26.2 million for the corresponding period in 2023.

Total operating expenses for the third quarter of 2024 were $10.3 million, a slight decrease from $10.8 million in the prior year. However, for the nine months ended September 30, 2024, operating expenses rose to $31.5 million, up from $26.4 million in 2023, reflecting a 20% increase primarily due to higher research and development costs associated with the advancement of its lead product candidate, ELI-002.

The company’s cash and cash equivalents increased to $26.0 million as of September 30, 2024, compared to $12.9 million at the end of 2023. This increase was bolstered by net cash provided by financing activities amounting to $42.1 million for the nine months ended September 30, 2024, compared to $31.6 million in the same period of 2023. The financing activities included proceeds from a convertible note and a public offering, which collectively contributed to the company’s liquidity position.

Elicio's accumulated deficit reached $180.1 million as of September 30, 2024. The company has raised a total of $182.7 million from various financing activities, including common stock issuance and proceeds from its merger with Angion Biomedica Corp., which was completed on June 1, 2023. The merger resulted in a significant restructuring, with former Elicio equity holders owning approximately 65.2% of the company on a fully diluted basis.

Despite these financial maneuvers, Elicio faces substantial doubt regarding its ability to continue as a going concern, primarily due to ongoing net losses and negative cash flows since inception. The company plans to seek additional financing through public offerings, private placements, and strategic partnerships to support its operations and product development.

As of September 30, 2024, Elicio reported total assets of $38.4 million, with warrant liabilities significantly increasing to $23.2 million from just $11,000 at the end of 2023. The company’s total stockholders' equity showed a deficit of $19.0 million, a decline from a positive equity position of $11.4 million at the end of 2023.