Traws Pharma, Inc 10-Q for FY2024 Q3

Traws Pharma, Inc. (TRAW)

10-Q 2024-11-14 For: 2024-09-30

Added on April 10, 2026

About this 10-Q

Traws Pharma, Inc filed this 10-Q on November 14, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $57K; unchanged from $57K a year earlier
Net loss: $8.48M; compared with a net loss of $4.74M a year earlier
Diluted EPS: -$8.81; compared with -$5.64 a year earlier

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Delaware		22-3627252
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

12 Penns Trail, Newtown, PA		18940
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	TRAW	The Nasdaq Stock Market LLC

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


	Page
PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations	4
Condensed Consolidated Statements of Comprehensive Loss	5
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ (Deficit) Equity	6
Condensed Consolidated Statements of Cash Flows	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	36
Item 4. Controls and Procedures	36

PART II — OTHER INFORMATION

Item 1. Legal Proceedings	37
Item 1A. Risk Factors	37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3. Defaults Upon Senior Securities	40
Item 4. Mine Safety Disclosures	40
Item 5. Other Information	40
Item 6. Exhibits	41
SIGNATURES	42


	September 30,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	5,410,000	$	20,821,000
Tax incentive and other receivables		2,121,000		18,000
Prepaid expenses and other current assets		1,392,000		1,821,000
Total current assets		8,923,000		22,660,000
Property and equipment, net		12,000		22,000
Other non-current assets		1,000		1,000
Total assets	$	8,936,000	$	22,683,000
Liabilities and stockholders’ (deficit) equity
Current liabilities:
Accounts payable	$	5,472,000	$	5,619,000
Accrued expenses and other current liabilities		2,650,000		3,375,000
Deferred revenue		226,000		226,000
Total current liabilities		8,348,000		9,220,000
Deferred revenue, non-current		2,621,000		2,791,000
Total liabilities		10,969,000		12,011,000

Commitments and contingencies

Stockholders’ (deficit) equity:
Series C Preferred stock, $0.01 par value, 5,000,000 shares authorized, 7,440 shares issued and outstanding at September 30, 2024 and no shares issued and outstanding at December 31, 2023		—		—
Common stock, $0.01 par value, 250,000,000 shares authorized, 3,025,554 and 840,251 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		30,000		9,000
Additional paid in capital		617,202,000		493,317,000
Accumulated deficit		(619,232,000)		(482,631,000)
Accumulated other comprehensive loss		(33,000)		(23,000)
Total stockholders’ (deficit) equity		(2,033,000)		10,672,000
Total liabilities and stockholders’ (deficit) equity	$	8,936,000	$	22,683,000


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue	$	57,000	$	57,000	$	170,000	$	170,000
Operating expenses:
Acquired in-process research and development		—		—		117,464,000		—
Research and development		5,113,000		2,460,000		10,989,000		8,996,000
General and administrative		3,480,000		2,686,000		8,813,000		7,010,000
Total operating expenses		8,593,000		5,146,000		137,266,000		16,006,000
Loss from operations		(8,536,000)		(5,089,000)		(137,096,000)		(15,836,000)
Other income, net		61,000		350,000		495,000		1,072,000
Net loss	$	(8,475,000)	$	(4,739,000)	$	(136,601,000)	$	(14,764,000)
Net loss per share, basic and diluted	$	(8.81)	$	(5.64)	$	(130.87)	$	(17.59)
Basic and diluted weighted average shares outstanding		961,530		840,117		1,043,781		839,243


	Three Month Periods Ended September 30, 2024 and 2023
														Accumulated
	Redeemable Convertible									Additional				other
	Preferred Stock			Preferred Stock			Common Stock			Paid in		Accumulated		comprehensive
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		deficit		(loss) income		Total
Balance at June 30, 2024	12,472	$	111,619,000	—	$	—	1,012,381	$	10,000	$	505,260,000	$	(610,757,000)	$	(33,000)	$	(105,520,000)
Conversion of redeemable convertible preferred stock upon stockholder approval	(12,472)		(111,619,000)	7,440		—	2,012,973		20,000		111,599,000		—		—		111,619,000
Stock-based compensation	—		—	—		—	—		—		343,000		—		—		343,000
Shares issued for vested restricted stock units	—		—	—		—	200		—		—		—		—		—
Net loss	—		—	—		—	—		—		—		(8,475,000)		—		(8,475,000)
Balance at September 30, 2024	—	$	—	7,440	$	—	3,025,554	$	30,000	$	617,202,000	$	(619,232,000)	$	(33,000)	$	(2,033,000)

Balance at June 30, 2023	—	$	—	—	$	—	839,106	$	9,000	$	492,625,000	$	(473,708,000)	$	(28,000)	$	18,898,000
Stock-based compensation	—		—	—		—	—		—		360,000		—		—		360,000
Shares issued for vested restricted stock units	—		—	—		—	1,145		—		—		—		—		—
Other comprehensive loss	—		—	—		—	—		—		—		—		(2,000)		(2,000)
Net loss	—		—	—		—	—		—		—		(4,739,000)		—		(4,739,000)
Balance at September 30, 2023	—	$	—	—	$	—	840,251	$	9,000	$	492,985,000	$	(478,447,000)	$	(30,000)	$	14,517,000


	Nine Month Periods Ended September 30, 2024 and 2023
														Accumulated
	Redeemable Convertible									Additional				other
	Preferred Stock			Preferred Stock			Common Stock			Paid in		Accumulated		comprehensive
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		deficit		income (loss)		Total
Balance at December 31, 2023	—	$	—	—	$	—	840,251	$	9,000	$	493,317,000	$	(482,631,000)	$	(23,000)	$	10,672,000
Issuance of stock in connection with the asset acquisition of Trawsfynydd	10,359		93,232,000	—		—	141,982		1,000		3,549,000		—		—		3,550,000
Transaction costs paid through the issuance of stock	535		4,815,000	—		—	6,747		—		169,000		—		—		169,000
Issuance of stock in connection with the private placement, net of expenses	1,578		13,572,000	—		—	19,879		—		427,000		—		—		427,000
Exchange of Trawsfynydd stock options for options of the Company	—		—	—		—	—		—		7,085,000		—		—		7,085,000
Conversion of redeemable convertible preferred stock upon stockholder approval	(12,472)		(111,619,000)	7,440		—	2,012,973		20,000		111,599,000						111,619,000
Stock-based compensation	—		—	—		—	—		—		1,056,000		—		—		1,056,000
Shares issued for vested restricted stock units	—		—	—		—	3,722		—		—		—		—		—
Other comprehensive loss	—		—	—		—	—		—		—		—		(10,000)		(10,000)
Net loss	—		—	—		—	—		—		—		(136,601,000)		—		(136,601,000)
Balance at September 30, 2024	—	$	—	7,440	$	—	3,025,554	$	30,000	$	617,202,000	$	(619,232,000)	$	(33,000)	$	(2,033,000)

Balance at December 31, 2022	—	$	—	—	$	—	837,040	$	9,000	$	492,016,000	$	(463,683,000)	$	(33,000)	$	28,309,000
Stock-based compensation	—		—	—		—	—		—		969,000		—		—		969,000
Shares issued for vested restricted stock units	—		—	—		—	3,211		—		—		—		—		—
Other comprehensive loss	—		—	—		—	—		—		—		—		3,000		3,000
Net loss	—		—	—		—	—		—		—		(14,764,000)		—		(14,764,000)
Balance at September 30, 2023	—	$	—	—	$	—	840,251	$	9,000	$	492,985,000	$	(478,447,000)	$	(30,000)	$	14,517,000


	Symbio
	Upfront Payment
Deferred balance at December 31, 2023	$	3,017,000
Recognition to revenue		(170,000)
Deferred balance at September 30, 2024	$	2,847,000


Consideration transferred:
Common stock	$	3,550,000
Series C		93,232,000
Assumed options		7,085,000
Company transaction costs settled in equity		4,984,000
Company transaction costs paid in cash		3,692,000
Total consideration transferred	$	112,543,000

Assets acquired:
Cash and cash equivalents	$	44,000
Total assets acquired		44,000

Liabilities assumed:
Accrued expenses and other current liabilities		4,965,000
Total liabilities assumed		4,965,000
Net assets acquired		(4,921,000)
In-process research and development		117,464,000
Net assets acquired	$	112,543,000


					Balance				Balance
		Exercise		Expiration	December 31,	Warrants	Warrants	Warrants	September 30,
Description	Classification	Price		Date	2023	Issued	Exercised	Expired	2024
Non-tradable pre-funded warrants	Equity	$	56.25	none	141	—	—	—	141
Non-tradable pre-funded warrants	Equity	$	56.25	none	199	—	—	—	199
Non-tradable warrants	Equity	$	75.00	November 2024	9,780	—	—	—	9,780
Non-tradable warrants	Equity	$	163.59375	December 2024	679	—	—	—	679
Non-tradable warrants	Equity	$	168.86250	December 2024	1,851	—	—	—	1,851
					12,650	—	—	—	12,650


	Options Outstanding
				Weighted
		Weighted-		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
	of Shares	Price		Term (in years)	Value
Balance, December 31, 2023	92,441	$	76.05	8.53	$	20,814
Trawsfynydd options exchanged in connection with acquisition	365,547	$	1.23	9.13		—
Granted	6,560	$	8.50	—		—
Forfeitures/adjustments	(10,987)	$	29.37	—		—
Expired	(23,495)	$	975.43	—		—
Balance, September 30, 2024	430,066	$	37.01	9.01	$	1,601,096
Exercisable at September 30, 2024	410,661	$	38.02	9.01	$	1,601,096


	2021 RSUs	2022 RSUs	2022 RSU Awards	2023 RSUs	Inducement RSUs
Outstanding and unvested January 1, 2024	1,032	2,980	440	5,436	-
Granted	-	-	-	-	21,200
Vested	(200)	(1,490)	(220)	(1,812)	-
Forfeited/Cancelled	(832)	(1,207)	-	(2,906)	-
Outstanding and unvested September 30, 2024	-	283	220	718	21,200

Exhibit Number		Description
3.1		Certificate of Designation of Series C Non-Voting Convertible Preferred Stock of Onconova Therapeutics, Inc., dated April 1, 2024 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on April 4, 2024).
3.2		Tenth Amended and Restated Certificate of Incorporation of Onconova Therapeutics, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on July 25, 2013).
3.3		Certificate of Amendment to Tenth Amended and Restated Certificate of Incorporation of Onconova Therapeutics, Inc., as amended, dated September 16, 2024 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on September 17, 2024).
3.4		Certificate of Amendment to Tenth Amended and Restated Certificate of Incorporation of Onconova Therapeutics, Inc., as amended, dated September 16, 2024 (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on September 17, 2024).
3.5		Amended and Restated Bylaws of Onconova Therapeutics, Inc. (Incorporated by reference to Exhibit 3.2 to the Pre-Effective Amendment No. 1 to the Company’s Registration Statement on Form S-1 filed on July 11, 2013).
3.6		Amendment to Amended and Restated Bylaws of Traws Pharma, Inc., effective as of June 26, 2024 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on June 28, 2024).
31.1	*	Rule 13a-14(a)/15d-14(a) Certifications of Principal Executive Officer
31.2	*	Rule 13a-14(a)/15d-14(a) Certifications of Principal Financial Officer
32.1	**	Section 1350 Certifications of Principal Executive Officer
32.2	**	Section 1350 Certifications of Principal Financial Officer
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	TRAWS PHARMA, INC.

Dated: November 14, 2024

	/s/ WERNER CAUTREELS, PH.D.
	Werner Cautreels, Ph.D.
	Chief Executive Officer
	(Principal Executive Officer)

Dated: November 14, 2024

	/s/ MARK GUERIN
	Mark Guerin
	Chief Financial Officer
	(Principal Financial Officer)


	Nine Months Ended September 30,
	2024			2023
Risk-free interest rate		3.46	%		3.89	%
Expected volatility		117.9	%		123.1	%
Expected term		6.00	years		5.68	years
Expected dividend yield		—	%		—	%
Weighted average grant date fair value	$	7.49		$	17.79


Dated: November 14, 2024
	/s/ Werner Cautreels
	Werner Cautreels
	Chief Executive Officer
	(Principal Executive Officer)