Quince Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the third quarter of 2024. As of September 30, 2024, the company had cash and cash equivalents of $2.7 million, a substantial decrease from $20.8 million at the end of 2023. Total current assets also fell to $51.7 million from $77.4 million, while total assets decreased to $126.5 million from $167.9 million over the same period. The company’s total stockholders’ equity dropped to $44.9 million from $85.1 million.

For the third quarter of 2024, Quince reported a net loss of $5.5 million, slightly higher than the $5.4 million loss recorded in Q3 2023. The net loss per share improved to $(0.13) from $(0.15) year-over-year. Research and development (R&D) expenses surged to $4.9 million, a 244% increase from $1.4 million in Q3 2023, primarily driven by costs associated with the development of EryDex, a drug targeting Ataxia-Telangiectasia (A-T). Total operating expenses for the quarter were $5.9 million, down from $6.1 million in the prior year.

For the nine months ended September 30, 2024, the net loss escalated to $44.4 million, compared to $22.5 million for the same period in 2023. R&D expenses for this period reached $12.8 million, up from $6.0 million in 2023. The increase in R&D spending reflects the company's focus on advancing its clinical trials, particularly the Phase 3 NEAT trial for EryDex.

The company also recognized a non-cash goodwill impairment charge of $17.1 million during the nine months, attributed to a decline in market capitalization and deteriorating macroeconomic conditions. Additionally, a fair value adjustment related to contingent consideration from the acquisition of EryDel resulted in a $2.7 million charge in Q3 2024.

Quince's acquisition of EryDel in October 2023 is expected to enhance its growth trajectory by expanding its portfolio in rare diseases. The company anticipates needing to raise additional capital to support ongoing operations and R&D efforts, with potential funding sources including equity, debt, or partnerships.

As of September 30, 2024, Quince had an accumulated deficit of $364 million and has not generated any revenue to date. The company continues to finance its operations primarily through the issuance of convertible promissory notes and redeemable convertible preferred stock, totaling approximately $303.9 million since inception.