CING: Third Quarter Results
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NYSE:CING
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Cingulate, Inc. (NASDAQ:CING) reported third quarter results on November 7th, 2024. No revenues were reported and operating expense of $3.3 million was recognized. During the third quarter and to date the company was issued a European patent for tripulse stimulant formulations, participated in multiple business media interviews and started its final study for CTx-1301 required for the new drug application (NDA). The NDA is expected to be submitted in mid-2025. Cingulate was also able to raise additional capital through its At-the-Market (ATM) facility and other arrangements, increasing its end of quarter cash balance to over $10 million.
Third Quarter Financial and Operational Results
Cingulate reported third quarter 2024 results in a press release and Form 10-Q filing with the SEC on November 7th. For the quarter ending September 30, 2024 operating expenses of $3.3 million were recognized. Net loss for 3Q:24 totaled ($3.2) million or ($1.83) per share. For the third quarter of 2024 versus the same prior year period:
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General & Administrative expenses were $1.9 million, up 2% from $1.8 million attributable to increase in legal and professional fees related to the special shareholders meeting, reverse stock split and capital raise. Personnel expenses declined on lower headcount and cost containment measures, including salary reductions for all employees. The annual directors’ and officers’ insurance also declined;
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Research and development expenses fell 64% to $1.4 million from $3.9 million as a result of decreased clinical activity. Prior year period expenses included significant costs related to two Phase III studies for CTx-1301, the fixed dose pediatric and adolescent safety and efficacy study and the pediatric dose optimization and duration study. Enrollment in these two studies was closed in early 2024 and the company will soon wind down the remaining analytical activities required for an NDA submission. Manufacturing and personnel costs decreased due to the reduction in headcount and cost containment measures;
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Net interest and other expense were $50,000 compared to ($229,000) and was related to incurred on outstanding notes payable, offset by interest earned on invested balances;
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Net loss was ($3.2) million vs. ($6.0) million or ($1.83) per share in 3Q:24.
As of September 30, 2024, cash totaled $10.0 million. This amount compares to the $50,000 cash balance held at the end of 2023. Net cash from financing was $24.4 million. Several financing transactions took place this year to generate these cash proceeds. This includes the issuance of common stock related to the ATM Agreement, the Lincoln Park Agreement, the February 2024 Offering and the June 2024 Warrant Inducement. Management anticipates that cash balances are sufficient to support operations until 3Q:25. Following the end of the third quarter, an additional 214,000 shares were sold raising approximately $900,000.