Entero Therapeutics, Inc. (formerly First Wave BioPharma, Inc.) reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to approximately $366.8 thousand from $3.7 million at the end of 2023. Total current assets surged to $83.8 million, up from $5.0 million, largely due to the acquisition of ImmunogenX, Inc. in March 2024, which introduced Series G redeemable preferred stock valued at $61.7 million.

Operating expenses for the three months ended September 30, 2024, decreased to $1.9 million from $3.4 million in the same period of 2023. This reduction was attributed to lower research and development costs, which dropped by 80% to $207.0 thousand, and a 30% decrease in general and administrative expenses to $1.7 million. Despite these reductions, total operating expenses for the nine months increased to $14.4 million from $11.7 million year-over-year, primarily due to $4.0 million in non-cash financial advisor fees related to the IMGX acquisition.

The company reported a net loss of $2.6 million for the third quarter, a 25% improvement from a loss of $3.4 million in the prior year. For the nine months ended September 30, 2024, the net loss was approximately $5.8 million, down from $11.7 million in 2023. The loss from continuing operations also improved significantly, reflecting a decrease from $11.7 million to $3.8 million.

Entero's strategic focus has shifted following the acquisition of ImmunogenX, with plans to dispose of certain assets classified as held for sale. The company has paused development on several product candidates, including Latiglutenase and Adrulipase, and is exploring strategic alternatives for its Niclosamide program. The company is also facing challenges due to global supply chain constraints and economic uncertainties.

In terms of workforce, the company initially increased its headcount to 15 employees post-acquisition but subsequently reduced it to 11 by July 2024, implementing further layoffs in August. The CEO's salary was also reduced as part of cost-cutting measures.

Looking ahead, Entero is exploring various strategic options, including potential mergers or sales, while managing its cash resources to sustain operations into December 2024. The company has also entered into a binding term sheet to acquire Journey Therapeutics, which is contingent upon securing additional financing and regulatory approvals.