RetinalGenix Technologies Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in expenses and net losses compared to the previous fiscal period. For the third quarter of 2024, the company recorded total operating expenses of $643,331, a decrease of 6% from $685,507 in Q3 2023. The net loss for this quarter was $(644,291), down from $(686,467) in the same period last year.
In the nine-month period ending September 30, 2024, total operating expenses surged to $3,450,920, a 123% increase from $1,546,373 in 2023. The net loss for the nine months was $(3,453,800), compared to $(1,549,253) in the prior year, marking a substantial increase in losses. The increase in expenses was primarily driven by a significant rise in stock-based compensation, which reached $2,240,099 for the nine months, up 282% from $585,701 in 2023. General and administrative expenses also rose by 92% to $941,821, while research and development expenses decreased by 43% to $269,000.
As of September 30, 2024, RetinalGenix had cash reserves of $79,089 and total liabilities of approximately $1,943,000, reflecting a need for additional financing to support ongoing operations. The company has not generated any revenue since its inception and anticipates requiring $12,200,000 for product design, testing, and infrastructure growth.
The company is actively seeking funding through equity and debt securities sales and is in discussions with investment bankers and individual investors for potential capital raises. RetinalGenix has also engaged in strategic collaborations, including a sublicense agreement with Sanovas Ophthalmology, which may provide future revenue opportunities.
In terms of operational developments, RetinalGenix is involved in clinical studies for its key products, including the RetinalCamTM and a portable retinal imaging device. The company is also planning future pharmaceutical studies for medications targeting dry AMD and Alzheimer’s syndrome dementia.
Management has identified a material weakness in internal controls over financial reporting, primarily due to a lack of segregation of duties, and is considering remediation measures. The company has expressed substantial doubt about its ability to continue as a going concern without additional financing or milestone payments from collaborations.