Avecho Biotechnology (AVE) Q2 2024 TU earnings summary

Executive summary

• Commenced dosing in pivotal Phase III clinical trial for TPM®-enhanced CBD soft-gel capsule targeting insomnia, with active recruitment across multiple Australian sites.

• First patient dosed in May 2024; 19 patients currently on medication, 49 more in eligibility screening.

• Exploring strategic partnerships and licensing opportunities domestically and internationally.

Financial highlights

• Received A$1,066K in R&D grants for the year ended 31 Dec 2023 under the Australian Government's R&D Tax Incentive Scheme.

• Invested ~A$805K in R&D and incurred ~A$399K in employment, admin, and corporate costs during the quarter ended 30 June 2024.

• Received A$130K advance from Endpoint Capital in June 2024, with a further ~A$500K expected in Q3 as R&D tax refund advances.

• Ended the quarter with ~A$4.8 million in cash and cash equivalents.

• Net cash from operating activities was A$251K for the quarter, reversing a negative trend from the prior period.

Outlook and guidance

• Interim analysis timing for the Phase III trial may be informed by global cannabidiol trial results.

• Company continues to seek cost reduction strategies and non-dilutive funding to extend its financial runway.