Klotho Neurosciences, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing total assets of $2,464,199 compared to $2,192,706 at the end of 2023. Current assets increased to $154,645, primarily due to an increase in cash and prepaid expenses.
Current liabilities decreased to $982,428 from $1,620,989 at the end of 2023, mainly due to the conversion of notes payable into common stock.
The company reported a net loss of $2,959,426 for the quarter, compared to a net loss of $144,111 in the same quarter of the previous year. The increase in net loss is attributed to increased share-based compensation and professional fees.
Net cash used in operating activities was $2,002,358 for the nine months ended September 30, 2024, compared to $247,406 in the same period of the previous year. The increase is primarily due to expenses related to the business combination and continued operating costs.
Klotho Neurosciences had cash of $50,895 at the end of the quarter, with net cash provided by financing activities amounting to $2,173,942, largely from investments and proceeds from the business combination.
The company has incurred significant operating losses and requires additional funding to continue operations. There is substantial doubt about its ability to continue as a going concern for the next twelve months without additional funding.
The filing also details a business combination with Redwoods Acquisition Corp, resulting in Klotho becoming a wholly owned subsidiary of Redwoods. The transaction was treated as a reverse acquisition for accounting purposes.
Klotho Neurosciences is in a pre-revenue state and focuses on developing medicines for chronic diseases, including cancer and neurodegenerative disorders. The company holds various licenses and patents for its drug development activities.
The company is addressing Nasdaq compliance issues related to minimum market value requirements and is evaluating options to regain compliance, including potential changes in listing tiers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Klotho Neurosciences Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.