Klotho Neurosciences Reports Significant Financial Developments, Net Loss, and Cash Improvements in 10-Q Filing

Klotho Neurosciences, Inc. (formerly ANEW Medical, Inc.) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing essential medicines for chronic diseases, has not generated any revenue during the nine months ended September 30, 2024, consistent with the same period in 2023.

Total operating expenses surged to $2.87 million for the three months ended September 30, 2024, a substantial increase from $123,737 in the same period of the previous year. For the nine-month period, operating expenses reached $3.69 million, up from $520,589 in 2023. This rise in expenses contributed to a net loss of $2.96 million for the third quarter, compared to a net loss of $144,111 in the prior year. Cumulatively, the net loss for the nine months was $4.08 million, significantly higher than the $580,983 loss reported for the same period in 2023.

The company’s cash position improved markedly, with cash totaling $50,895 as of September 30, 2024, compared to just $2,808 at the end of 2023. Total current assets also increased to $154,645 from $6,648 at year-end 2023. Total liabilities decreased to $1.00 million from $1.62 million, while total stockholders’ equity rose to $1.46 million from $571,717, reflecting a positive shift in the company’s financial health.

Klotho Neurosciences underwent a business combination with Redwoods Acquisition Corp. on June 21, 2024, which was treated as a reverse recapitalization. This merger resulted in the issuance of 6 million shares valued at $60 million, significantly impacting the company’s equity structure. The company also engaged in various financing activities, netting approximately $2.17 million from financing activities during the nine months ended September 30, 2024, compared to $250,000 in the same period of 2023.

The company has faced challenges, including substantial operating losses and negative cash flows, raising concerns about its ability to continue as a going concern without additional funding. As of September 30, 2024, Klotho Neurosciences reported an accumulated deficit of approximately $8.5 million and indicated a need for further working capital to sustain operations.

In terms of strategic developments, Klotho has made several acquisitions, including market-approved anti-cancer drugs and a treatment for skin pigmentation. The company also entered into various licensing agreements, although it has yet to generate revenue from these initiatives. The recent name change to Klotho Neurosciences reflects its strategic focus on chronic disease treatments.