Protagenic Therapeutics, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, which specializes in therapeutics for stress-related neuropsychiatric and mood disorders, is not classified as an emerging growth or shell company.

As of September 30, 2024, Protagenic's cash balance was $1,055,805, a decrease from $1,287,893 at the end of 2023. Total current assets also fell sharply to $1,422,709 from $4,200,037, while total assets decreased to $1,508,327 from $4,323,369. Current liabilities increased to $789,320 from $655,252, leading to a significant drop in stockholders' equity from $3,668,117 to $719,007.

For the three months ended September 30, 2024, Protagenic reported total operating and administrative expenses of $652,066, a notable reduction from $1,431,712 in the same period of 2023. However, for the nine-month period, operating expenses rose to $4,057,772 from $3,314,748 year-over-year. The company recorded a net loss of $640,785 for the third quarter, down from a loss of $1,396,626 in the prior year, but the nine-month net loss increased to $3,971,601 from $3,324,313.

The company’s cash flow from operating activities showed a negative trend, with cash used amounting to $3,396,726 for the nine months ended September 30, 2024, compared to $2,559,342 in 2023. In contrast, cash provided by investing activities improved to $2,802,880 from $2,497,407, and the company raised $361,490 through financing activities, a new source of cash compared to no financing in the previous year.

Protagenic has also faced operational challenges, including a deficiency letter from Nasdaq regarding its stock price, which fell below the minimum bid requirement of $1.00 per share. The company has until January 20, 2025, to regain compliance.

In terms of strategic developments, Protagenic is advancing its lead compound, PT00114, which is currently in a Phase I/IIa clinical trial initiated on September 26, 2023. The trial aims to assess the compound's efficacy in treating conditions such as depression and PTSD.

The company has acknowledged material weaknesses in its internal controls over financial reporting and is taking steps to enhance its accounting functions. As of September 30, 2024, Protagenic's accumulated deficit increased to $(34,749,473) from $(29,101,688) a year earlier, reflecting ongoing financial challenges.