Revelation Biosciences, Inc., a clinical-stage biopharmaceutical company focused on developing therapeutics that modulate the innate immune system, reported significant financial challenges in its latest 10-Q filing for the period ending September 30, 2024. The company has not generated any revenue and does not anticipate doing so until successful product development and regulatory approval of its key product candidates, including GEM-AKI, GEM-CKD, and GEM-PSI.

As of September 30, 2024, Revelation's cash and cash equivalents stood at $6.5 million, a decrease from $12.0 million at the end of 2023. Total current assets also fell to $6.7 million from $12.1 million, while total assets decreased to $6.7 million from $12.2 million. The accumulated deficit worsened to $(38.8 million) from $(25.5 million) at the end of 2023, reflecting ongoing operational losses.

For the three months ended September 30, 2024, the company reported total operating expenses of $1.8 million, down from $2.8 million in the same period of 2023. The net loss for this quarter was $(2.2 million), an improvement from a net loss of $(2.6 million) in the prior year. However, for the nine months ended September 30, 2024, the net loss was $(13.3 million), a stark contrast to a net income of $2.1 million for the same period in 2023.

The company’s financing activities included a February 2024 public offering that raised $5.4 million, contributing to a total of $9.2 million in net cash provided by financing activities for the nine months ended September 30, 2024, down from $14.0 million in the previous year. The net cash used in operating activities increased significantly to $(14.6 million) from $(5.3 million) in 2023.

Revelation has faced compliance issues with Nasdaq, receiving a delist letter on October 16, 2024, for failing to meet the minimum bid price requirement. The company has appealed this decision and is currently trading under the symbols “REVB” and “REVBW.” Additionally, it received a deficiency letter regarding stockholders’ equity on August 14, 2024, but satisfied this requirement by the end of September 2024.

The company executed a 1-for-30 reverse stock split on January 25, 2024, and has raised a total of $53 million through capital stock issuance since its inception. Despite these efforts, there remains substantial doubt about its ability to continue as a going concern without raising additional capital.