Klotho Neurosciences Reports No Revenue and Increased Losses in 2024 Financial Filing

Klotho Neurosciences, Inc. (formerly known as ANEW Medical, Inc.) reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company, which focuses on developing essential medicines for chronic diseases, including cancer and neurodegenerative disorders, recorded no revenue for both 2024 and 2023. Operating expenses surged to $5.54 million in 2024, a substantial increase from $631,322 in the previous year, primarily due to heightened stock-based compensation and costs associated with its business combination. The net loss for 2024 was $6.15 million, compared to a loss of $707,458 in 2023, reflecting the company's ongoing investment in its research and development initiatives.

The company underwent a significant transformation in 2024, completing a business combination with Redwoods Acquisition Corp. on June 21, 2024. This transaction was treated as a reverse acquisition, with ANEW Medical becoming the accounting acquirer. Following the merger, Klotho's common stock began trading on the Nasdaq under the symbol "KLTO." The merger resulted in the issuance of 6 million shares valued at $60 million, and the company received approximately $181,339 in net cash proceeds. Additionally, Klotho has entered into various financing agreements, including convertible promissory notes, to support its operations and development plans.

As of December 31, 2024, Klotho reported total assets of $2.46 million, with current liabilities amounting to $1.25 million. The company's working capital improved to a deficit of $1.09 million, an increase from a deficit of $1.61 million in 2023. The cash balance at year-end was $63,741, indicating a need for further capital to sustain operations. The company has acknowledged that it will require additional funding to continue its development efforts and has expressed substantial doubt about its ability to continue as a going concern without such funding.

Klotho's operational metrics indicate a focus on expanding its product pipeline, which includes a gene therapy platform aimed at treating neurodegenerative diseases. The company has established collaborations with institutions such as the Universitat Autònoma de Barcelona to advance its research initiatives. As of January 24, 2025, Klotho employed three full-time staff members and utilized the services of four consultants, reflecting a lean operational structure. The company is also exploring potential acquisitions to enhance its product offerings, as evidenced by a recent agreement to acquire SB Security Holdings, LLC, which is contingent upon shareholder and Nasdaq approval.

Looking ahead, Klotho's management has outlined a strategy to seek market approval for its gene therapy candidates and to continue developing its biosimilar products. However, the company faces significant challenges, including competition in the biotechnology sector and the need to navigate complex regulatory environments. The management has indicated that while they are optimistic about the potential of their product candidates, the path to commercialization remains uncertain and will require careful management of resources and strategic partnerships.