Skye Bioscience Reports Significant Financial Developments, Commences Phase 2 Clinical Trial for Lead Drug Candidate

Skye Bioscience, Inc. reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company, which focuses on developing molecules for obesity and metabolic diseases, has not yet generated revenue from its principal operations and anticipates several years before potential revenue generation.

As of September 30, 2024, Skye's cash and cash equivalents surged to $67.4 million, a substantial increase from $1.3 million at the end of 2023. Total current assets also rose to $79.8 million from $11.7 million, while total assets reached $81.5 million compared to $11.9 million at year-end 2023. The increase in assets is attributed to successful financing activities, including proceeds from the issuance of common stock and warrants totaling $83.6 million for the nine months ended September 30, 2024, compared to $11.7 million for the same period in 2023.

Despite these positive cash flow developments, Skye reported a net loss of $16.8 million for the nine months ended September 30, 2024, a decrease from a net loss of $33.2 million in the same period of 2023. The basic and diluted loss per share improved to $(0.48) from $(6.38) year-over-year. Operating expenses for the nine months totaled $19.5 million, down from $30.6 million in the prior year, primarily due to a significant reduction in costs associated with the acquisition of in-process research and development (IPR&D) assets, which were $0 in 2024 compared to $21.2 million in 2023.

Research and development expenses increased to $10.9 million for the nine months ended September 30, 2024, up from $4.2 million in 2023, driven by higher salaries, equity-based compensation, and contracted clinical costs for the Phase 2 clinical trial of nimacimab, the company's lead drug candidate. General and administrative expenses also rose to $13.2 million from $5.4 million, reflecting increased headcount and professional fees.

Strategically, Skye completed the acquisition of Bird Rock Bio Sub, Inc. for $20 million in August 2023, which contributed to the increase in stockholders' equity to $75.8 million as of September 30, 2024, compared to a deficit of $2.1 million at the end of 2023. The company also entered into a transaction regarding the sale of Verdélite Sciences, Inc., adjusting the purchase price to $2 million, payable in installments through December 2027.

In terms of operational developments, Skye commenced a Phase 2 clinical trial for nimacimab during the three months ended September 30, 2024, with expectations for interim data in Q2 2025 and topline data in Q4 2025. The trial aims to evaluate weight loss and body composition changes in participants, marking a significant step in the company's clinical development efforts.