Onconetix Reports Revenue Growth and Reduced Losses in Q3 2024

Onconetix, Inc. reported its financial results for the third quarter of 2024, revealing a significant increase in revenue and a notable reduction in operating losses compared to the previous fiscal period. The company generated approximately $406,859 in revenue for the three months ended September 30, 2024, compared to no revenue in the same period last year. For the nine months ended September 30, 2024, total revenue reached $1.8 million, primarily driven by development services from its subsidiary, Proteomedix. Despite this revenue growth, Onconetix incurred a net loss of $3.8 million for the quarter, an improvement from a loss of $5.3 million in the prior year, and a total net loss of $29.3 million for the nine-month period, up from $15.1 million in 2023.

The company’s financial position has changed significantly since the previous fiscal year, with total assets decreasing from $87.5 million at the end of 2023 to $61.9 million as of September 30, 2024. This decline is attributed to impairments related to the ENTADFI product and goodwill associated with the Proteomedix acquisition, which totaled approximately $15.5 million and $3.5 million, respectively. Onconetix's cash reserves have also dwindled, with only $341,495 remaining as of September 30, 2024, down from $4.6 million at the end of 2023, raising concerns about its ability to sustain operations without additional funding.

Strategically, Onconetix has shifted its focus towards the commercialization of Proclarix, a prostate cancer diagnostic test, following the acquisition of Proteomedix in December 2023. The company has paused its commercialization efforts for ENTADFI, an FDA-approved treatment for benign prostatic hyperplasia, while exploring potential sale options for the asset. The company has also entered into a subscription agreement with a related party, which resulted in the issuance of 500,000 units of common stock and warrants, generating approximately $1.9 million in net cash proceeds.

Operationally, Onconetix has made significant changes, including a reduction in its workforce and a halt in its vaccine development programs, which were previously a major focus. The company’s employee headcount has been adjusted to align with its current strategic direction. As of September 30, 2024, Onconetix had approximately 8.3 million shares of common stock outstanding, reflecting a reverse stock split executed in September 2024. The company is also actively seeking additional capital to support its operations, with plans to utilize an Equity Financing Line of Credit established in October 2024.

Looking ahead, Onconetix faces substantial challenges, including a working capital deficit of approximately $16.3 million and an accumulated deficit of $86 million. The company has indicated that it will require significant additional funding to continue its operations and support the commercialization of Proclarix. Management has expressed uncertainty regarding its ability to secure the necessary capital, which raises doubts about the company's ability to continue as a going concern. The financial statements for the nine months ended September 30, 2024, have been prepared under the assumption that Onconetix will continue as a going concern, but this assumption is contingent on the company’s ability to raise additional funds.