Tempest Therapeutics, Inc., a clinical-stage biotechnology company based in Brisbane, California, reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company focuses on developing targeted and immune-mediated product candidates for cancer treatment, with its lead program, Amezalpat (formerly TPST-1120), set to begin a pivotal study for first-line liver cancer.

As of September 30, 2024, Tempest's cash and cash equivalents stood at $22.1 million, a decrease from $39.2 million at the end of 2023. Total current assets also fell to $23.6 million from $40.4 million, while total assets decreased to $33.8 million from $51.6 million. The company's total stockholders' equity dropped to $11.5 million from $26.8 million, reflecting ongoing operational losses.

For the three months ended September 30, 2024, Tempest reported operating expenses of $7.6 million, up 79% from $4.2 million in the same period of 2023. Research and development expenses surged to $7.6 million, compared to $4.2 million in the prior year, driven primarily by increased costs associated with Amezalpat. The loss from operations for the quarter was $(10.6 million), a 56% increase from $(6.8 million) in the previous year. The net loss for the quarter was $(10.6 million), compared to $(6.8 million) in Q3 2023, with a net loss per share of $(0.41), an improvement from $(0.48) per share in the same period last year.

For the nine months ended September 30, 2024, the company reported a net loss of $(28.0 million), up from $(22.0 million) in the same period of 2023. Research and development expenses for the nine months increased to $17.7 million from $13.3 million, while general and administrative expenses rose to $10.4 million from $8.3 million.

In terms of financing, Tempest raised $8.4 million through an at-the-market offering during the nine months ended September 30, 2024, compared to $1.3 million in the same period of 2023. The company has also initiated a new ATM program, with $196.4 million remaining available for sale as of September 30, 2024.

Strategically, the company expanded its leadership team with the appointment of Sheldon Mullins as Vice President of Regulatory Affairs and Troy Wagner as Vice President of Quality Assurance in September 2024. Additionally, Tempest entered into a master clinical supply agreement with F. Hoffmann-La Roche Ltd. for the supply of atezolizumab for clinical studies involving Amezalpat.

Despite these developments, Tempest continues to face challenges, including the need for additional capital to fund ongoing operations and clinical trials, as well as the potential for dilution of existing stockholders' equity. The company anticipates incurring significant expenses and operating losses for the foreseeable future as it advances its product candidates through clinical trials and regulatory approvals.