Intensity Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s cash and cash equivalents decreased to $2.8 million from $8.6 million at the end of 2023, reflecting a broader decline in total current assets, which fell from $15.5 million to $3.8 million. Total assets also dropped from $17.3 million to $5.2 million during the same period. Despite a reduction in total current liabilities from $4.0 million to $2.3 million, total stockholders’ equity decreased sharply from $13.2 million to $2.8 million.

Operating expenses for the three months ended September 30, 2024, rose to $3.6 million, up from $2.5 million in the same period of 2023. This increase was driven primarily by a 59% rise in research and development expenses, which reached $2.2 million compared to $1.4 million a year earlier. The total operating expenses for the nine months ended September 30, 2024, surged to $13.4 million, a significant increase from $5.0 million in the prior year. The net loss for the third quarter was $3.5 million, compared to $2.3 million in the same quarter of 2023, while the nine-month net loss escalated to $13.1 million from $7.4 million.

The company’s loss per share for the three months ended September 30, 2024, was $(0.25), an increase from $(0.17) in the same period of 2023. For the nine months, the loss per share improved slightly to $(0.95) from $(1.26) year-over-year.

Strategically, Intensity Therapeutics has been active in clinical development, recently receiving authorization to initiate the INVINCIBLE-4 Study in Switzerland, which aims to evaluate its lead product candidate, INT230-6, in early-stage triple-negative breast cancer. The company also dosed the first patients in the Phase 3 INVINCIBLE-3 Study in the U.S. in July 2024. However, the company has not generated any revenue from product sales or licensing and does not anticipate revenue in the near future.

The company’s financial outlook remains precarious, with substantial doubt about its ability to continue as a going concern. It projects that its current cash reserves will only suffice until the first quarter of 2025, necessitating future financing through equity offerings or convertible debt. The company has also engaged in a universal shelf registration statement to facilitate future capital raises.