Forte Biosciences, Inc. reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on developing its lead product candidate FB102, an anti-CD122 monoclonal antibody for autoimmune diseases, experienced a notable decline in its financial position compared to the previous fiscal year.

As of September 30, 2024, Forte's cash and cash equivalents stood at $16.4 million, a decrease from $37.1 million at the end of 2023. Total current assets also fell to $17.7 million from $38.3 million, while total assets decreased to $17.9 million from $39.0 million. Current liabilities increased significantly to $8.6 million, up from $3.7 million, with accounts payable rising to $5.2 million from $1.4 million. The accumulated deficit worsened to $(146.8 million) from $(118.5 million) at the end of 2023, and total stockholders’ equity decreased to $9.4 million from $35.3 million.

For the three months ended September 30, 2024, total operating expenses were $8.6 million, down from $10.2 million in the same period of 2023. The loss from operations improved to $(8.6 million) from $(10.2 million), while the net loss for the quarter was $(8.4 million), compared to $(10.0 million) in the prior year. However, for the nine months ended September 30, 2024, total operating expenses increased to $29.3 million from $26.1 million, with a net loss of $(28.3 million) compared to $(25.6 million) in the same period of 2023.

Forte's research and development expenses for the three months ended September 30, 2024, were $5.9 million, down from $6.4 million, primarily due to reduced manufacturing costs. However, for the nine-month period, R&D expenses decreased to $16.0 million from $18.3 million, reflecting a shift in focus towards clinical expenses. General and administrative expenses for the three months also decreased to $2.8 million from $3.8 million, while for the nine months, they rose to $13.3 million from $7.8 million, attributed to increased legal and professional fees.

The company has not generated any revenue from product sales since its inception in 2017 and continues to rely on external financing to support its operations. In July 2023, Forte raised $25 million through a private placement, issuing 606,678 shares of common stock and 387,566 pre-funded warrants. The company is actively seeking additional capital to fund its ongoing development of FB102 and has expressed concerns regarding its ability to continue as a going concern due to ongoing losses and negative cash flows.

Forte's clinical development of FB102 is progressing, with a patient-based trial initiated in Q3 2024, following the completion of Phase 1 healthy volunteer trials. The company is also navigating various legal challenges, including disputes related to its directors and officers liability insurance coverage. Overall, Forte's financial health remains precarious, with substantial doubt about its ability to sustain operations without securing further funding.