Imunon, Inc. (CLSN) Bundle
Understanding Imunon, Inc. (CLSN) Revenue Streams
Understanding Imunon, Inc.’s Revenue Streams
As of September 30, 2024, Imunon, Inc. has not generated significant revenue from its operations since inception. The company has primarily financed its activities through equity financing and debt issuance.
Breakdown of Primary Revenue Sources
Imunon, Inc. continues to focus on research and development of its drug candidates and technologies, leading to minimal revenue generation. The company reported no substantial revenue from product sales or services as of the latest financial statements.
Year-over-Year Revenue Growth Rate
For the nine months ended September 30, 2024, Imunon, Inc. reported a net loss of $14,563,017, compared to a net loss of $14,626,844 for the same period in 2023. This indicates a slight decrease in net loss year-over-year, suggesting stability in the company's financial performance despite a lack of revenue growth.
Contribution of Different Business Segments to Overall Revenue
Currently, the business segments do not contribute to revenue generation. The focus remains on clinical trials and R&D expenses, which amounted to $9,406,715 for the first nine months of 2024, up from $7,734,897 in the same period of 2023.
Analysis of Any Significant Changes in Revenue Streams
Since there are no revenue streams to report, the analysis focuses on the financial expenditures. Operating expenses for the nine months ended September 30, 2024, totaled $14,986,264, compared to $15,062,803 for the same period in 2023, reflecting a minor decrease.
Revenue and Expense Summary Table
| Period | Net Loss | Operating Expenses | R&D Expenses |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | $14,563,017 | $14,986,264 | $9,406,715 |
| 9 Months Ended September 30, 2023 | $14,626,844 | $15,062,803 | $7,734,897 |
Overall, the company has maintained a consistent financial trajectory with increased R&D spending while continuing to operate at a loss, with no revenue streams reported as of September 30, 2024.
A Deep Dive into Imunon, Inc. (CLSN) Profitability
A Deep Dive into Imunon, Inc.'s Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the gross profit margin was 0% as the company did not report any revenues. The gross profit was $0 against total revenues of $0.
Operating Profit Margin: The loss from operations for the same period was ($14,986,264), resulting in an operating profit margin of -100%.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was ($14,563,017), yielding a net profit margin of -100% given the absence of revenue.
Trends in Profitability Over Time
In the previous year, for the nine months ended September 30, 2023, the net loss was ($14,626,844), indicating a slight improvement in profitability year-over-year with a decrease in losses by $63,827.
The operating loss for the nine months ended September 30, 2023, was ($15,062,803), compared to ($14,986,264) in 2024, reflecting a similar trend in operating efficiency.
Comparison of Profitability Ratios with Industry Averages
The average net profit margin for the biotechnology industry is typically negative, reflecting high R&D expenditures. For comparison, the industry average net profit margin is approximately -30%, indicating that Imunon, Inc.'s performance is consistent with industry trends, albeit at a more severe loss level.
Analysis of Operational Efficiency
The total operating expenses for the nine months ended September 30, 2024, were $14,986,264, slightly lower than the $15,062,803 reported for the same period in 2023. A breakdown of these expenses is as follows:
| Expense Type | 2024 Amount | 2023 Amount | Change |
|---|---|---|---|
| Research and Development | $9,406,715 | $7,734,897 | $1,671,818 |
| General and Administrative | $5,579,549 | $7,327,906 | ($1,748,357) |
| Total Operating Expenses | $14,986,264 | $15,062,803 | ($76,539) |
The increase in research and development expenses reflects ongoing investments in clinical trials and product development, while the decrease in general and administrative expenses indicates improved cost management.
In conclusion, the company's operational efficiency is being tested as it navigates high R&D costs while striving to control general and administrative expenses.
Debt vs. Equity: How Imunon, Inc. (CLSN) Finances Its Growth
Debt vs. Equity: How Imunon, Inc. Finances Its Growth
Overview of Debt Levels
As of September 30, 2024, Imunon, Inc. reported total current liabilities of $5.4 million. The company's short-term debt includes amounts due to contract research organizations and other contractual agreements totaling $1.054 million, and accrued payroll and related benefits of $1.457 million.
Debt-to-Equity Ratio
The debt-to-equity ratio for Imunon, Inc. stands at 0.65 as of September 30, 2024. This is calculated based on total liabilities of $6.2 million against total stockholders' equity of $8.2 million. This ratio is below the industry average of approximately 1.0, indicating a more conservative use of debt in financing its operations compared to peers in the biotech sector.
Recent Debt Issuances and Refinancing Activity
In June 2021, the company entered into a $10 million loan facility with Silicon Valley Bank, of which $6 million was drawn down. This facility was fully repaid by April 2023, including an early termination fee and end-of-term charges totaling approximately $0.3 million. As of September 30, 2024, there are no outstanding long-term debts.
Balance Between Debt Financing and Equity Funding
Imunon has balanced its financing through both debt and equity. In a recent offering on July 30, 2024, the company raised $10 million by issuing 5 million shares at $2.00 per share through a registered direct offering. This was complemented by the issuance of unregistered warrants for the same number of shares, further solidifying its equity base while avoiding additional debt.
| Category | Amount ($) |
|---|---|
| Total Current Liabilities | 5,400,000 |
| Short-term Debt | 2,573,430 |
| Contract Research Obligations | 1,054,000 |
| Accrued Payroll and Benefits | 1,456,736 |
| Debt-to-Equity Ratio | 0.65 |
| Equity Raised (July 2024 Offering) | 10,000,000 |
| Outstanding Shares (as of Sept 2024) | 14,500,707 |
Assessing Imunon, Inc. (CLSN) Liquidity
Assessing Imunon, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
Current Assets: $12.5 million
Current Liabilities: $5.4 million
Current Ratio = Current Assets / Current Liabilities = 2.31
Quick Ratio: The quick ratio, which excludes inventory from current assets, is:
Quick Assets: $12.5 million (as there are no inventories reported)
Current Liabilities: $5.4 million
Quick Ratio = Quick Assets / Current Liabilities = 2.31
Analysis of Working Capital Trends
As of September 30, 2024, the net working capital stands at:
Net Working Capital = Current Assets - Current Liabilities = $7.1 million
Comparatively, on December 31, 2023, the net working capital was:
Net Working Capital = $10.8 million
This indicates a decrease in working capital over the period.
Cash Flow Statements Overview
For the nine months ended September 30, 2024, the cash flows are detailed below:
| Cash Flow Type | 2024 Amount | 2023 Amount |
|---|---|---|
| Net cash used in operating activities | ($14.4 million) | ($15.2 million) |
| Net cash provided by investing activities | $9.8 million | $14.3 million |
| Net cash provided by (used in) financing activities | $9.1 million | ($3.7 million) |
| Cash and cash equivalents at end of period | $10.3 million | $12.9 million |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company reported:
- Accumulated deficit of $402.7 million
- Significant net losses amounting to $14.6 million for the nine months ended September 30, 2024
- Cash and cash equivalents of $10.3 million
These financial metrics raise concerns regarding the company's ability to sustain operations without additional funding. The company plans to seek additional capital through various means, including public or private equity offerings.
Is Imunon, Inc. (CLSN) Overvalued or Undervalued?
Valuation Analysis
To assess whether the company is overvalued or undervalued, we will examine key financial ratios, stock price trends, and analyst consensus.
Price-to-Earnings (P/E) Ratio
The current P/E ratio is not applicable due to the company reporting a net loss of $14,563,017 for the nine months ended September 30, 2024 .
Price-to-Book (P/B) Ratio
The price-to-book ratio is calculated using the total stockholders' equity. As of September 30, 2024, the total stockholders' equity was $8,191,721 with 14,500,707 shares outstanding. The book value per share is approximately $0.56.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
As the company is not generating EBITDA due to ongoing losses, the EV/EBITDA ratio cannot be calculated at this time.
Stock Price Trends
Over the last 12 months, the stock price has fluctuated significantly. The stock price was approximately $2.00 following the registered direct offering on August 1, 2024, where 5,000,000 shares were sold .
Dividend Yield and Payout Ratios
The company has not paid any dividends during the first nine months of 2024 or 2023, indicating a dividend yield of 0% .
Analyst Consensus
As of recent reports, analysts have not provided a consensus rating. The lack of profitability and ongoing financial challenges suggest caution among analysts regarding the stock's valuation.
| Metric | Value |
|---|---|
| P/E Ratio | N/A (Net Loss) |
| P/B Ratio | Approx. 3.57 (Price: $2.00, Book Value: $0.56) |
| EV/EBITDA Ratio | N/A (No EBITDA) |
| Net Loss (9M 2024) | $14,563,017 |
| Stock Price (as of Aug 1, 2024) | $2.00 |
| Dividend Yield | 0% |
| Analyst Consensus | Not Specified |
Key Risks Facing Imunon, Inc. (CLSN)
Key Risks Facing Imunon, Inc.
The financial health of Imunon, Inc. is influenced by various internal and external risk factors that could impact its operations and market performance. Below is an overview of these risk factors:
Industry Competition
Imunon operates in a highly competitive biotechnology sector. The company faces competition from established pharmaceutical companies and emerging biotech firms. As of September 30, 2024, the company reported a net loss of $14.6 million for the nine months ended, which reflects the ongoing challenges in maintaining market share amidst intense competition.
Regulatory Changes
Regulatory risks are significant for Imunon, particularly with respect to FDA approvals for its drug candidates. The company has incurred substantial expenses related to regulatory submissions, with research and development expenses totaling $9.4 million for the first nine months of 2024. Any delays or rejections in the approval process could adversely affect its financial performance.
Market Conditions
Fluctuations in the market can impact the company's ability to raise capital. The company had $10.3 million in cash and cash equivalents as of September 30, 2024, which raises concerns about its liquidity and ability to fund ongoing operations. Economic downturns or adverse market sentiments could further complicate fundraising efforts.
Operational Risks
Imunon faces operational risks, including reliance on third-party contract research organizations (CROs). As of December 31, 2023, amounts due to CROs amounted to $1,054,000, which highlights the company’s dependency on external partners for critical research activities.
Financial Risks
The company has a history of significant losses and negative cash flows, with an accumulated deficit of approximately $403 million as of September 30, 2024. This financial strain necessitates ongoing capital raising efforts, which may not always be successful.
Strategic Risks
Strategic risks include potential dilution of shareholder value due to equity financing. The company issued 5,000,000 shares at an offering price of $2.00 per share in July 2024, raising gross proceeds of $10.0 million. This could lead to dilution of existing shareholders’ ownership percentages, impacting investor sentiment.
Mitigation Strategies
To mitigate these risks, Imunon continues to explore various funding avenues, including public and private equity offerings, strategic alliances, and government-sponsored research collaborations. Additionally, the company is focused on advancing its drug development pipeline to enhance its market position.
| Risk Factor | Description | Impact |
|---|---|---|
| Industry Competition | Presence of established and emerging players in biotechnology | High |
| Regulatory Changes | Potential delays in FDA approvals and submissions | High |
| Market Conditions | Fluctuating market sentiments impacting capital raising | Medium |
| Operational Risks | Reliance on third-party CROs for research | Medium |
| Financial Risks | Significant losses and negative cash flows | High |
| Strategic Risks | Potential dilution from equity financing | Medium |
Future Growth Prospects for Imunon, Inc. (CLSN)
Future Growth Prospects for Imunon, Inc.
Analysis of Key Growth Drivers
Imunon, Inc. is positioned for growth through several strategic initiatives. Key growth drivers include:
- Product Innovations: The company continues to develop its pipeline, focusing on its lead product, IMNN-001, aimed at treating cancer. The research and development expenses for the first nine months of 2024 reached $9.4 million, compared to $7.7 million in the same period of 2023, highlighting increased investment in product development .
- Market Expansions: The recent equity financing, where the company raised $10 million through a registered direct offering of 5,000,000 shares at $2.00 per share, allows for further market penetration and expansion of clinical trials .
- Acquisitions: Imunon seeks to enhance its capabilities and product offerings through potential acquisitions, although specific targets are not disclosed at this time.
Future Revenue Growth Projections and Earnings Estimates
The revenue outlook for Imunon is contingent on the successful advancement of its clinical trials and product commercialization. Analysts estimate revenue growth could accelerate significantly if key milestones are met in the coming years. For context, the company reported a net loss of $14.6 million for the nine months ended September 30, 2024 . Continued investment in R&D is projected to yield returns as products move closer to market readiness.
Strategic Initiatives or Partnerships
Imunon has been actively pursuing strategic partnerships to bolster its growth potential:
- Collaborations with research institutions to advance clinical trials.
- Engagements with pharmaceutical companies for potential licensing agreements.
Competitive Advantages
Imunon holds several competitive advantages that enhance its growth prospects:
- Innovative Technology: Proprietary technologies, particularly in DNA vaccine platforms, distinguish Imunon in the biotechnology sector.
- Experienced Leadership: The management team has a proven track record in drug development and commercialization, which is crucial for navigating the competitive landscape.
Financial Overview
As of September 30, 2024, Imunon had cash and cash equivalents of $10.3 million . The company reported total current assets of $12.5 million against current liabilities of $5.4 million, resulting in net working capital of $7.1 million, providing a solid foundation for its ongoing initiatives .
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Loss | $14.6 million | $14.6 million | No Change |
| R&D Expenses | $9.4 million | $7.7 million | +22.1% |
| Cash and Cash Equivalents | $10.3 million | $12.9 million | -20.1% |
| Total Current Assets | $12.5 million | $18.2 million | -31.4% |
| Total Current Liabilities | $5.4 million | $7.4 million | -27.0% |
These insights illustrate Imunon's potential for future growth through innovation, market expansion, and strategic financial management.
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Updated on 16 Nov 2024
Resources:
- Imunon, Inc. (CLSN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Imunon, Inc. (CLSN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Imunon, Inc. (CLSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.