Raphael Pharmaceutical Inc. reported its financial results for the nine months ended September 30, 2024, highlighting significant changes in its performance compared to the previous fiscal period. The company, which focuses on cannabinoid-based drug therapies, has not generated any revenue during this period, consistent with the same timeframe in 2023.

As of September 30, 2024, Raphael Pharmaceutical's cash and cash equivalents stood at $40,000, a decrease from $230,000 at the end of 2023. Total current assets were reported at $49.3 million, while total assets amounted to $51,000. Current liabilities increased to $667,000, resulting in a total stockholders’ equity deficit of $(616,000).

Research and development expenses for the nine months ended September 30, 2024, were $565,000, down 38.4% from $917,000 in the same period in 2023. This reduction is attributed to decreased pre-clinical activities. General and administrative expenses increased by 12.4% to $550,000, primarily due to higher professional services for investor relations. The operating loss for the nine months was $1.115 million, a 20.7% decrease from $1.406 million in the prior year. The net loss for the same period was $1.124 million, down 20% from $1.406 million in 2023.

For the third quarter of 2024, research and development expenses were $162,000, a significant decrease of 68.2% from $510,000 in Q3 2023. General and administrative expenses also fell by 28.3% to $157,000. The operating loss for Q3 2024 was $319,000, down 56.2% from $729,000 in Q3 2023, while the net loss was $326,000, a 55% reduction from $725,000 in the same quarter of the previous year.

The company has engaged in various financing activities, raising $280,000 through the issuance of common stock and warrants in the nine months ended September 30, 2024, compared to $1.126 million in the same period in 2023. The net cash used in operating activities also decreased to $470,000 from $1.115 million year-over-year.

Strategically, Raphael Pharmaceutical is advancing its lead product candidate for rheumatoid arthritis and is involved in preclinical studies for conditions related to COVID-19. The company has entered into multiple agreements to support its research efforts, including a significant collaboration with Rambam Health Care Campus. However, there are concerns regarding the company's ability to continue as a going concern due to insufficient cash reserves and the need for additional financing to support ongoing operations and development activities.