GlucoTrack, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $5,087,000 for the three-month period, a substantial increase from the $2,223,000 loss reported in the same period of the previous year. For the nine-month period, the net loss reached $12,503,000, compared to $4,685,000 in the prior year. This trend reflects a growing financial strain, with basic and diluted net loss per share worsening from $(0.49) to $(0.91) for the three-month period and from $(1.38) to $(2.39) for the nine-month period.

Total operating expenses surged to $3,251,000 for the three months ended September 30, 2024, up from $2,224,000 in the same quarter of 2023. For the nine-month period, operating expenses rose to $10,693,000 from $4,687,000. The increase in expenses was driven by higher research and development costs, which amounted to approximately $7.8 million for the nine-month period, compared to $3.0 million in the previous year.

The company’s financial position deteriorated significantly, with cash and cash equivalents dropping to $346,000 as of September 30, 2024, down from $4,492,000 at the end of 2023. Total current assets also fell to $642,000 from $4,868,000, while total liabilities increased to $4,848,000 from $1,708,000. The accumulated deficit expanded to $(122,356,000) from $(109,853,000) over the same period.

In terms of strategic developments, GlucoTrack has shifted its focus from the Glucotrack device to the development of an Implantable Continuous Glucose Monitor (CGM). The company has withdrawn its CE Mark for the Glucotrack device and is no longer pursuing its commercialization. Recent studies indicate promising results for the new implantable device, with a regulatory submission for a first-in-human study expected to begin in Q4 2024.

The company has also engaged in various financing activities, including a private placement that raised $500,000 in April 2024 and the issuance of convertible promissory notes totaling $4,000,000 in July 2024. However, management expressed substantial doubt about the company's ability to continue as a going concern due to ongoing losses and reliance on external financing.

As of September 30, 2024, GlucoTrack's internal controls were deemed ineffective, with identified material weaknesses in accounting personnel and internal controls. Management plans to address these issues in fiscal year 2025.