ProMIS Neurosciences Inc. reported significant financial developments in its 10-Q filing for the three and nine months ended September 30, 2024. The company achieved a net income of $9.3 million for Q3 2024, a substantial turnaround from a net loss of $2.4 million in Q3 2023. For the nine-month period, net income was $3.0 million, compared to a net loss of $9.6 million in the same period last year. This improvement is attributed to a notable increase in other income, primarily from a $16.3 million gain on the change in fair value of financial instruments.

Total operating expenses for Q3 2024 were $4.4 million, up from $2.5 million in Q3 2023, reflecting increased research and development costs, particularly for the lead product candidate PMN310. Research and development expenses for the nine months ended September 30, 2024, totaled $6.3 million, a 12% increase from $5.7 million in the prior year. General and administrative expenses decreased slightly, indicating a focus on managing costs.

As of September 30, 2024, ProMIS reported total assets of $24.5 million, a significant increase from $13.6 million at the end of 2023. Cash reserves also rose to $21.5 million, up from $12.6 million at year-end 2023. Current liabilities decreased to $2.6 million from $9.3 million, contributing to a total shareholders' equity of $7.3 million, compared to $3.8 million at the end of 2023.

The company has been actively raising capital, with a private placement in July 2024 generating gross proceeds of $30.3 million. This funding is crucial as ProMIS anticipates continued net losses and increased expenses related to ongoing research and development activities. The company has not generated any revenue to date and does not expect to do so until its product candidates receive regulatory approval.

Management expressed substantial doubt about the company's ability to continue as a going concern within the next twelve months, highlighting the need for additional funding to support clinical activities. The company is classified as an "emerging growth company" and has identified a material weakness in internal control over financial reporting, particularly concerning fair value calculations related to its warrant liabilities.

Overall, ProMIS Neurosciences is navigating a critical phase in its development, with a focus on advancing its product candidates while managing financial sustainability amid ongoing operational losses.