Estrella Immunopharma, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing T-cell therapies for blood cancers and solid tumors, experienced a notable decline in cash and cash equivalents, which fell to $1.8 million from $4.2 million as of June 30, 2024. Total current assets also decreased to $2.2 million, down from $4.5 million in the previous quarter. In contrast, total current liabilities surged to $2.99 million, a substantial increase from $180,701, leading to total liabilities matching current liabilities at $2.99 million.
The accumulated deficit rose to approximately $22.9 million, compared to $19.5 million at the end of the previous quarter. Total stockholders’ equity decreased significantly to $746,286 from $4.27 million, reflecting the company's ongoing financial challenges.
For the three months ended September 30, 2024, Estrella reported research and development expenses of $2.83 million, a sharp increase from $483,466 in the same period of 2023. Total operating expenses for the quarter reached $3.38 million, up from $1.87 million year-over-year. The net loss for the quarter was $3.38 million, compared to a loss of $1.87 million in the prior year, resulting in a net loss per share of $(0.09) compared to $(1.78) in the same period last year.
The company’s cash flow from operating activities showed a significant increase in cash used, totaling $2.22 million for the quarter, compared to $275,192 in the same period of 2023. Notably, Estrella did not generate any revenue during this period, as it has yet to commence revenue-producing operations.
Strategically, Estrella completed a business combination with TradeUP Acquisition Corp. on September 29, 2023, which resulted in a net cash inflow of approximately $20.1 million after various deductions. The company has also entered into a Statement of Work with Eureka Therapeutics for clinical trial services related to its EB103 therapy, with total fees amounting to $33 million, of which $3.5 million has been paid as of the reporting date.
Estrella's management has indicated plans to utilize the remaining proceeds from the business combination for the preclinical and clinical development of its product candidates and compliance costs as a public company. The company is classified as an emerging growth company and has not yet generated revenue from product sales.
About Estrella Immunopharma, Inc.
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