Entero Therapeutics, Inc. (formerly First Wave BioPharma, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2024. The company experienced a notable increase in total current assets, which rose to approximately $84.4 million from $5.0 million as of December 31, 2023. This increase was primarily driven by the acquisition of ImmunogenX, Inc. in March 2024, which added substantial assets, including intellectual property related to the biologic Latiglutenase for celiac disease.

Despite the growth in assets, Entero reported a net loss of approximately $8.8 million for the three months ended June 30, 2024, compared to a net loss of $4.2 million for the same period in 2023. The loss applicable to common shareholders also increased to $8.8 million from $4.3 million year-over-year. The loss per share for the quarter was $(3.86), a decrease from $(37.73) in the prior year, reflecting the impact of a reverse stock split that occurred in late 2023.

Total operating expenses for the second quarter of 2024 were approximately $3.4 million, down from $4.2 million in the same quarter of 2023. This decline was attributed to a significant reduction in research and development expenses, which fell to approximately $0.2 million from $1.3 million, primarily due to decreased clinical trial costs. However, general and administrative expenses increased by 13% to approximately $3.2 million, driven by share-based compensation for consultants and legal fees related to the acquisition.

For the six months ended June 30, 2024, the company reported a net loss of approximately $3.2 million, a substantial improvement from a net loss of $8.3 million in the same period of 2023. The income tax benefit for the first half of 2024 was approximately $10.6 million, resulting from the release of a portion of the valuation allowance related to the IMGX merger.

Strategically, Entero has paused development activities for several product candidates, including Latiglutenase and Adrulipase, while exploring alternatives for its Niclosamide program. The company has also undergone significant workforce reductions, decreasing its headcount from 15 employees in March 2024 to 11 by July 2024, and terminated the employment agreements of its CEO and President in August 2024.

As of June 30, 2024, Entero had cash and cash equivalents of approximately $0.7 million, with cumulative losses attributable to common stockholders reaching approximately $187.6 million since inception. The company anticipates needing to raise additional capital to sustain operations beyond November 2024.