Mosaic ImmunoEngineering, Inc. reported significant financial challenges in its 10-Q filing for the three and nine months ended September 30, 2024. The company, which specializes in developing immunotherapies for cancer treatment, has not generated any revenue to date. As of September 30, 2024, cash and cash equivalents plummeted to $5,736, down from $156,178 at the end of 2023. Total current assets also decreased sharply to $39,950 from $179,533, while total liabilities rose to $6,675,080 from $6,050,591.

The company recorded a net loss of $(186,730) for the third quarter of 2024, an improvement from a net loss of $(333,246) in the same period of 2023. However, for the nine months ended September 30, 2024, the net loss increased to $(768,939) compared to $(712,677) in the prior year. Operating expenses for the third quarter decreased to $186,430 from $311,871 year-over-year, primarily due to reduced research and development expenses, which fell to $39,599 from $84,927, and general and administrative expenses, which decreased to $146,831 from $226,944.

The company has been actively managing its expenses, with total operating expenses for the nine months ending September 30, 2024, at $729,498, down from $1,124,150 in the same period of 2023. The reduction in expenses is attributed to lower payroll and consulting fees. Despite these efforts, the accumulated deficit increased to $(8,685,276) from $(7,916,337) at the end of 2023.

Strategically, Mosaic entered into a Binding Term Sheet with Oncotelic Therapeutics, Inc. on April 26, 2024, to acquire rights to clinical-stage necroptosis cancer therapies and proprietary AI technologies, valued at $15 million. This acquisition is contingent upon customary due diligence and shareholder approval. The company has received $70,000 in loan proceeds from Oncotelic, with an additional convertible note purchase agreement for up to $200,000 announced on November 18, 2024.

Mosaic's liquidity remains a concern, as it anticipates needing to raise additional capital to meet operational and capital requirements over the next twelve months. The company has no current arrangements for additional financing, and its ability to raise capital is uncertain, compounded by potential disruptions from economic factors such as inflation and the ongoing effects of COVID-19.