Xenetic Biosciences, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a stable revenue performance but continued net losses. Total revenue for the third quarter was $614,243, slightly up from $611,174 in the same period of 2023. For the nine-month period, revenue remained flat at $1,851,464 compared to $1,868,023 in the prior year. The company continues to generate royalty income primarily from an exclusive license related to blood coagulation disorders.

Research and development (R&D) expenses for the third quarter decreased significantly to $367,985 from $1,020,618 in the prior year, a reduction of approximately 64%. This decline was attributed to lower spending on external services and a decrease in personnel costs following the departure of the former Chief Scientific Officer. For the nine-month period, R&D expenses totaled $2,246,077, down from $2,519,137 in 2023, reflecting a 10.8% decrease.

Total operating costs and expenses for the third quarter were $1,113,716, down from $1,757,859 in the same quarter of 2023. The net loss for the third quarter was $436,671, a significant improvement from the $1,055,555 loss reported in the same period last year. For the nine months ended September 30, 2024, the net loss was $2,905,754, slightly better than the $2,963,072 loss in the previous year.

As of September 30, 2024, total current assets decreased to $7,027,648 from $9,586,874 at the end of 2023, while total assets fell to $8,046,000 from $10,605,226. Current liabilities increased to $1,009,407 from $809,585, resulting in total liabilities remaining consistent at $1,009,407. The accumulated deficit worsened to $(196,139,950) from $(193,234,196) at the end of 2023, and total stockholders' equity decreased to $7,036,593 from $9,795,641.

The company has incurred substantial losses since its inception and anticipates continued operating losses in the near term. It believes that existing resources will fund operations for at least the next twelve months but will require additional long-term capital. Potential funding sources include public and private equity offerings, debt financing, and corporate collaborations.

Xenetic's strategic focus remains on advancing its proprietary DNase platform aimed at improving cancer treatment outcomes, with ongoing collaborations to develop its PolyXen drug delivery platform. The company has also engaged in various research agreements, including a recent extension of its agreement with Scripps Research, which will provide additional funding for its oncology platform.