NeuroBo Pharmaceuticals, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, expenses, and overall financial health compared to the previous fiscal period.
As of September 30, 2024, the company reported total current assets of $21.9 million, a decrease from $22.5 million at the end of 2023. Total assets also fell to $22.1 million from $22.8 million. Current liabilities increased significantly to $9.1 million, up from $6.0 million, while total stockholders’ equity decreased to $12.9 million from $16.7 million.
Operating expenses for the third quarter of 2024 reached $6.3 million, a substantial increase from $3.9 million in the same period of 2023. Research and development (R&D) expenses surged to $4.5 million, up from $2.3 million, primarily due to heightened activities related to the ongoing Phase 2a clinical trial for DA-1241 and the Phase 1 trial for DA-1726. For the nine months ended September 30, 2024, total operating expenses amounted to $23.2 million, a 127.3% increase from $10.2 million in the prior year.
The company reported a net loss of $5.7 million for the third quarter of 2024, compared to a loss of $3.8 million in the same quarter of 2023. For the nine-month period, the net loss escalated to $22.4 million from $7.2 million, with loss per share increasing to $(3.24) from $(1.41).
NeuroBo's cash position as of September 30, 2024, was $21.7 million, down from $25.8 million a year earlier. The company utilized $19.3 million in operating activities during the nine months, compared to $7.4 million in the same period of 2023. However, net cash provided by financing activities was $18.5 million, a significant increase from a net cash used of $0.1 million in the prior year, bolstered by a private placement that raised $17 million.
Strategically, NeuroBo entered into an exclusive out-license agreement with MThera Pharma Co., LTD. for NB-01, aimed at treating painful diabetic neuropathy. The company is focused on advancing its key programs, including DA-1241 and DA-1726, while managing ongoing clinical trials that are expected to contribute to continued net losses and negative cash flows.
The company has also been addressing material weaknesses in its internal controls over financial reporting, implementing measures to enhance oversight and segregation of duties. Management reported significant progress in remediation efforts, although some weaknesses remain under review.
About NeuroBo Pharmaceuticals, Inc.
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