Palisade Bio, Inc. reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in cash and cash equivalents, which fell to $8.04 million from $12.43 million at the end of 2023. Total current assets also declined to $8.87 million, down from $13.33 million, contributing to a total asset reduction to $9.34 million from $14.05 million. Despite a slight increase in total current liabilities to $2.68 million, total stockholders' equity decreased to $6.61 million from $11.31 million.

For the three months ended September 30, 2024, Palisade Bio reported total operating expenses of $3.59 million, a decrease from $3.78 million in the same period of 2023. The net loss for this quarter was $3.49 million, an improvement from a net loss of $3.60 million year-over-year. However, for the nine months ended September 30, 2024, the net loss increased to $11.09 million compared to $9.33 million for the same period in 2023. The basic and diluted net loss per share for the three months was $(2.32), while for the nine months, it was $(9.50).

The company’s research and development expenses for the nine months rose to approximately $6.98 million, a 26% increase from $5.52 million in the prior year, primarily due to joint development costs associated with its lead product candidate, PALI-2108. The company recognized no license revenue for the nine months ended September 30, 2024, compared to $0.3 million in the same period of 2023.

Strategically, Palisade Bio has made notable moves, including a 1-for-15 reverse stock split executed on April 5, 2024, to regain compliance with Nasdaq's Bid Price Rule. The company also entered into a license agreement with Giiant Pharma in September 2023 for the development of PALI-2108, which is now in a Phase 1 clinical trial in Canada, with the first subjects dosed on November 6, 2024. Additionally, the company amended this agreement in August 2024 to adjust milestone payments.

Palisade Bio has faced challenges, including a 25% reduction in its workforce in October 2023 as part of a cost-reduction plan. The company continues to express concerns about its ability to sustain operations beyond the first quarter of 2025 without additional financing, given its history of operating losses and the capital-intensive nature of drug development.