Spruce Biosciences, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to $60.1 million from $96.3 million at the end of 2023. Total current assets also declined to $63.6 million, down from $102.2 million, while total assets decreased to $65.1 million from $103.9 million. Despite these reductions, total current liabilities decreased to $11.9 million from $24.5 million, resulting in total stockholders’ equity of $51.6 million, down from $76.5 million.

In terms of revenue, Spruce reported collaboration revenue of $602,000 for Q3 2024, a significant drop from $3.1 million in Q3 2023. For the nine months ended September 30, 2024, collaboration revenue totaled $4.2 million, compared to $7.2 million for the same period in 2023. The company’s total operating expenses for Q3 2024 were $10.0 million, down from $16.7 million in Q3 2023, reflecting a strategic reduction in costs. The loss from operations improved to $(9.4 million) from $(13.7 million) year-over-year, while the net loss for Q3 2024 was $(8.7 million), compared to $(12.4 million) in Q3 2023.

For the nine-month period, the net loss was $(29.5 million), an improvement from $(38.0 million) in the prior year. The company’s accumulated deficit increased to $226.7 million as of September 30, 2024, up from $197.2 million at the end of 2023. Cash used in operating activities also rose to $(35.3 million) from $(22.1 million) year-over-year.

Strategically, Spruce has implemented cost reduction measures, including the termination of the CAHmelia-203 study and a workforce reduction of approximately 21% in March 2024, aimed at extending its cash runway through the end of 2025. The company is also exploring additional financing options, including potential out-licensing of its product candidate, tildacerfont, which is under development for various endocrine and neurological disorders.

The company’s clinical trials have faced challenges, including the termination of the CAHmelia-203 trial due to not meeting primary efficacy endpoints. However, ongoing trials such as CAHmelia-204 and CAHptain-205 are expected to yield results in December 2024. Spruce continues to focus on building a commercial organization for tildacerfont, which has received orphan drug designation in the U.S. and EU.

As of September 30, 2024, Spruce had 41,302,599 shares of common stock outstanding, with no dividends declared. The company is currently in compliance with its loan agreement with Silicon Valley Bank, which has a remaining principal of $2.2 million.