Zelira Therapeutics' Quarterly Cash Flow Report Highlights Operating Challenges
ZLD (ZLD) Share Update October 2024 Tuesday 29th
Zelira Therapeutics Reports Quarterly Cash Flow with Significant Operating Loss
Zelira Therapeutics Limited has released its quarterly cash flow report, revealing a substantial operating cash loss amidst ongoing funding efforts.
Instant Summary:
- Net cash used in operating activities: $1.555 million.
- Proceeds from borrowings: $2.098 million.
- Cash and cash equivalents at end of period: $1.073 million.
- Estimated quarters of funding available: 1.3.
Operating Cash Flow
Zelira Therapeutics reported a net cash outflow of $1.555 million from operating activities for the quarter ending 30 September 2024. This figure reflects the company's ongoing expenses in research and development, staff costs, and administration.
Despite these outflows, the company managed to secure $2.098 million from borrowings, which helped offset the operating losses and resulted in a net increase in cash and cash equivalents by $586,000 for the period.
Financing Activities
The report highlights the company's reliance on external financing, with a total of $2.098 million raised through borrowings. The company has a total of $6.786 million in financing facilities, with $982,000 remaining unused at the quarter's end.
Future Funding and Operations
Zelira is actively pursuing additional funding to support its operations and business objectives, including the HOPE SPV initiative aimed at raising US$32 million for clinical trials in the USA. The company remains optimistic about securing further funding in the coming quarters.
The reported cash flow challenges underscore the financial pressures Zelira Therapeutics is facing. While the recent borrowings provide temporary relief, the company's ability to secure additional funding will be crucial in sustaining operations and investor confidence. The high operating costs relative to customer receipts highlight the need for strategic financial management.
Investor Reaction:
Investors may express concern over the company's cash burn rate and its reliance on external financing. However, Zelira's proactive approach to securing additional funding and its focus on advancing clinical trials could mitigate some of these concerns.
Conclusion:
Investors should closely monitor Zelira Therapeutics' funding efforts and operational developments. The company's ability to navigate its financial challenges will be key to its future growth and stability in the market.