Turnstone Biologics Corp. reported significant financial challenges in its latest 10-Q filing for the nine months ended September 30, 2024. The company, focused on developing innovative cancer therapies using tumor infiltrating lymphocytes (TILs), recorded a net loss of $57.965 million, a substantial increase from the $38.750 million loss reported for the same period in 2023. This increase in losses is attributed to ongoing research and development expenses, which totaled $47.944 million for the nine months, slightly up from $47.033 million in the previous year.

The company has not generated any revenue from product sales since its inception, and collaboration revenue dropped to zero for the nine months ended September 30, 2024, compared to $19.306 million in the same period of 2023. This decline follows the termination of the collaboration agreement with Takeda Pharmaceutical Company, which had previously contributed to the company’s revenue.

As of September 30, 2024, Turnstone's total current assets decreased to $51.143 million from $102.554 million at the end of 2023, primarily due to a significant reduction in short-term investments, which fell from $76.979 million to $21.151 million. The company’s cash and cash equivalents increased to $24.133 million from $17.798 million, reflecting a net increase in cash flows from investing activities.

The accumulated deficit rose to $234.723 million, up from $176.758 million at the end of 2023. The company has expressed substantial doubt about its ability to continue as a going concern, citing the need for additional capital to fund operations and clinical development.

In a strategic move to focus resources on its TIDAL-01 program, Turnstone announced a workforce reduction of approximately 60% in October 2024, which is expected to incur a one-time severance-related charge of about $2.3 million. This restructuring follows the promotion of Saryah Azmat to Chief Operating Officer and the resignation of key executives, including the Chief Financial Officer and Interim Chief Medical Officer.

The company is currently conducting three Phase 1 clinical trials for TIDAL-01, with preliminary data indicating a 25% overall response rate in patients with advanced colorectal cancer. The next clinical update is anticipated in the first half of 2025. Despite these developments, Turnstone faces ongoing risks, including potential Nasdaq delisting due to non-compliance with minimum bid price requirements, as well as challenges in securing adequate funding amidst a volatile economic environment.