Pasithea Therapeutics Corp. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing treatments for central nervous system disorders and RASopathies, experienced a decrease in cash and cash equivalents, which fell to $9.4 million from $16.3 million at the end of 2023. Total current assets also declined to $9.8 million from $16.7 million, while total assets decreased to $18.6 million from $26.1 million. Notably, total liabilities were significantly reduced to $824,000 from $2.7 million, contributing to a total stockholders’ equity of $17.8 million, down from $23.4 million.

For the three months ended September 30, 2024, Pasithea reported a loss from operations of $3.0 million, an improvement from a loss of $3.8 million in the same period of 2023. The net loss from continuing operations also improved to $3.0 million from $3.6 million year-over-year. However, for the nine months ended September 30, 2024, the net loss from continuing operations increased slightly to $10.7 million from $10.5 million in the prior year. The basic and diluted loss per share remained unchanged at $(2.87) for the third quarter, while it increased to $(10.28) for the nine-month period compared to $(8.13) in 2023.

General and administrative expenses saw a notable decrease, dropping by 34% to $1.4 million for the third quarter, attributed to reduced legal and corporate communication costs. Research and development expenses, however, increased by 20% for the nine-month period, primarily due to higher clinical trial costs.

In terms of strategic developments, the company completed a securities purchase agreement in September 2024, raising approximately $4.5 million through the sale of pre-funded warrants and Series A and B warrants. This offering is intended to support working capital and general corporate purposes. Additionally, Pasithea has discontinued its business support services to anti-depression clinics and ceased development of its PAS-002 program for multiple sclerosis due to resource constraints.

The company continues to face challenges, including an accumulated deficit of approximately $46.4 million since inception and reliance on additional funding to sustain operations. Management has indicated that without further capital, the company may not meet its operational needs over the next twelve months.