Xilio Therapeutics, Inc., a clinical-stage biotechnology company focused on developing tumor-activated immuno-oncology therapies, reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a net loss of $14.0 million for the third quarter, an improvement from a net loss of $16.7 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $45.1 million, down from $58.7 million in the prior year.

Total revenue for the third quarter of 2024 was $2.3 million, attributed to license revenue recognized under a new agreement with Gilead Sciences, marking a significant increase from $0 in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue reached $4.6 million, compared to none in the previous year. The company’s total operating expenses for the third quarter were $17.0 million, slightly lower than $17.4 million in the prior year, while for the nine months, operating expenses decreased to $51.6 million from $61.0 million in 2023.

Xilio's cash and cash equivalents increased to $61.3 million as of September 30, 2024, up from $44.7 million at the end of 2023. The company reported total current assets of $63.3 million and total assets of $74.7 million. However, total current liabilities surged to $38.0 million from $16.0 million at the end of 2023, contributing to total liabilities of $53.7 million, up from $24.1 million.

The company undertook a strategic restructuring in March 2024, resulting in a workforce reduction of approximately 21%, which led to restructuring charges of $0.9 million. This decision was part of a broader effort to manage costs amid ongoing financial challenges. Xilio's accumulated deficit reached $370.7 million as of September 30, 2024.

In terms of financing, Xilio raised $21.0 million through various equity placements during the nine months ended September 30, 2024, compared to a net cash outflow of $4.9 million from financing activities in the same period of 2023. The company anticipates that its existing cash will be sufficient to fund operations through the end of the second quarter of 2025, but there is substantial doubt about its ability to continue as a going concern without securing additional capital.

Looking ahead, Xilio plans to raise further capital through equity or debt financing, collaborations, or other sources, while also considering cost reduction strategies if necessary. The company has not yet commercialized any product candidates and does not expect to generate revenue from product sales for several years.