X4 Pharmaceuticals, Inc. reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing therapeutics for rare diseases, particularly those related to immune system dysfunction, experienced a notable increase in total current assets, rising to $142.97 million from $122.08 million at the end of 2023. Total assets also grew to $178.17 million, up from $147.26 million, while total liabilities increased to $118.54 million from $96.16 million, resulting in total stockholders’ equity rising to $59.62 million from $51.10 million.

Product revenue for the third quarter of 2024 was $560,000, with total revenue for the nine months reaching $1.12 million, marking a significant increase from zero revenue in the same period last year. However, the company reported a net loss of $36.70 million for the third quarter, compared to a loss of $2.31 million in the same quarter of 2023. For the nine months ended September 30, 2024, X4 reported a net income of $2.37 million, a turnaround from a net loss of $82.04 million in the prior year.

The increase in operating expenses was driven by higher research and development costs, which rose to $34.5 million for the third quarter and $82.3 million for the nine months, primarily due to clinical trial activities related to its lead product, mavorixafor (marketed as XOLREMDI), which received FDA approval in April 2024 for treating WHIM syndrome. Selling, general, and administrative expenses also increased significantly, reflecting the company's efforts to expand its sales and marketing infrastructure for the U.S. launch of XOLREMDI.

A key strategic development was the sale of a Priority Review Voucher for $105 million, which was recorded as a gain on the transfer of non-financial assets. This transaction contributed to a cash position of $135 million as of September 30, 2024, although the company reported net cash used in operating activities of $97.9 million for the nine months, up from $68.8 million in the previous year.

X4 Pharmaceuticals is currently under a Minimum Cash Covenant requiring it to maintain at least $20 million in cash through January 2025. The company has raised concerns about its ability to continue as a going concern due to ongoing operating losses and the need for additional capital to support its operations and meet financial obligations. The company plans to submit a Marketing Authorization Application to the European Medicines Agency for mavorixafor by early 2025, indicating its intent to expand internationally.