Summary by Moomoo AI
Ensysce Biosciences reported financial results for Q2 2024, with federal grant revenue of $181,797, down from $490,472 in Q2 2023. Research and development expenses decreased to $947,229 from $1.6 million, while general and administrative expenses remained stable at $1.2 million. The company ended the quarter with $1.0 million in cash and cash equivalents.In February 2024, the company completed a warrant inducement transaction generating approximately $4.7 million in gross proceeds. The deal included the exercise of existing warrants at a reduced price of $1.31 per share and issuance of new Series A and B warrants with an exercise price of $1.06 per share. The company also restructured its 2023 Notes, reducing the outstanding principal to $216,000.Management indicates current cash resources will fund operations into Q3 2024, raising substantial going concern doubts. The company expects federal grant funding to increase in the second half of 2024 due to expanded preclinical activities under the OUD grant following lead drug candidate selection. Future research and development expenses are expected to remain at current levels, subject to the company's ability to raise additional capital.
