Cyclo Therapeutics (CYTH) Q3 2024 earnings summary

Executive summary

• Cyclo Therapeutics is a clinical-stage biotech focused on cyclodextrin-based therapies for neurodegenerative diseases, with lead candidate Trappsol® Cyclo™ in Phase III for Niemann-Pick Type C (NPC) and Phase II for Alzheimer's disease.

• In May 2024, the last patient was enrolled in the pivotal Phase III NPC trial; the company also received key patent allowances for Alzheimer's treatment in the US and Europe in 2024.

• On August 21, 2024, Cyclo Therapeutics entered into a merger agreement with Rafael Holdings, with closing expected in late December 2024.

Financial highlights

• Net loss was $8.8 million for Q3 2024 and $19.2 million for the nine months ended September 30, 2024, compared to $4.8 million and $14.4 million for the same periods in 2023.

• Total revenues decreased 53% year-over-year to $234,000 for Q3 2024 and 27% to $559,000 for the nine months ended September 30, 2024.

• Cash and cash equivalents fell to $928,000 as of September 30, 2024, from $9.2 million at December 31, 2023.

• Negative working capital of $15.5 million as of September 30, 2024, compared to positive $3.9 million at year-end 2023.

• Net cash used in operating activities was $18.2 million for the nine months ended September 30, 2024.

Outlook and guidance

• Rafael Holdings has agreed to fund operations through the earlier of merger closing or termination; additional capital will be needed if the merger does not close.

• The company expects continued increases in expenses as it advances clinical trials and regulatory activities for Trappsol® Cyclo™.