Peak Bio, Inc., a clinical-stage biotechnology company focused on developing therapies for cancer and immunological diseases, reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company had 23,124,888 shares of common stock outstanding, with a par value of $0.0001 per share.

For the three and nine months ended September 30, 2024, Peak Bio reported total revenue of $0, a decline from $278,831 and $292,685 for the same periods in 2023, respectively. This lack of revenue is attributed to no products available for commercial sale and no work performed under government grants during the current period. Operating expenses decreased significantly, totaling $1,492,284 for the three months and $5,087,740 for the nine months, down from $2,309,789 and $12,211,927 in 2023, respectively. The reduction in expenses is primarily due to decreased personnel costs and other operational efficiencies.

The company reported an operating loss of $(1,492,284) for the three months ended September 30, 2024, an improvement from $(2,030,958) in 2023. For the nine-month period, the operating loss was $(5,087,740), compared to $(11,919,242) in the prior year. Other income for the three months increased to $3,206,220, driven by a gain on the termination of a lease, while net income for the quarter was $1,713,936, compared to $410,587 in 2023. However, for the nine months, the net loss was $(2,798,632), a significant improvement from $(12,300,473) in 2023.

As of September 30, 2024, Peak Bio's total assets were $1,635,940, down from $2,596,415 at the end of 2023, while total current liabilities increased to $22,397,935 from $20,522,714. The accumulated deficit rose to $(40,970,115) from $(38,171,483) at the end of 2023, and the total stockholders' deficit increased to $(20,908,245) from $(18,156,949).

Strategically, Peak Bio is pursuing a merger with Akari Therapeutics, which was announced on March 4, 2024. Under the agreement, Peak Bio will become a wholly-owned subsidiary of Akari, with an exchange ratio that will issue approximately 50% of Akari's outstanding shares as merger consideration for Peak Bio's common stock. The merger is contingent upon various conditions, including completion by December 2, 2024.

The company continues to face challenges in raising additional funds, which raises substantial doubt about its ability to continue as a going concern. It is actively seeking financing through equity sales, debt financing, and collaborations to support ongoing activities and the merger process.