LIQUIDITY	12 Months Ended
Jun. 30, 2024
LIQUIDITY
LIQUIDITY	NOTE 2 — LIQUIDITY The Company is in the clinical stage and has not yet generated any revenues. For the fiscal year ended June 30, 2024, the Company incurred a net loss of $68.5 million and net cash used in operating activities amounted to $57.4 million. As of June 30, 2024, the Company had an accumulated deficit of $329.4 million, and the Company’s capital resources consisted of cash and cash equivalents of $70.4 million and in marketable debt securities totaling $56.7 million. As discussed in Note 7, the Company completed the 2024 Underwritten Offering in June 2024 that resulted in the issuance of approximately 13.0 million shares of common stock and 3.8 million prefunded warrants for net proceeds of $62.6 million after underwriting discounts and other offering costs. As of June 30, 2024, the Company had total liabilities of $11.7 million, including total current liabilities of $9.6 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $5.0 million milestone payment will be due upon dosing of the last patient in a Phase 3 clinical trial for ersodetug. The commitment to pay the last patient dosing milestone of $5.0 million for the ersodetug Phase 3 clinical trial is expected to be recognized as a liability within 12 months. As discussed in Note 15, in July 2024 the Company received net proceeds of approximately $6.0 million related to a private placement of 1.5 million shares of common stock. Management believes the Company’s cash and cash equivalents, investments in marketable debt securities, and additional proceeds from the July 2024 private placement, will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities through September 2025, at a minimum.

LIQUIDITY

12 Months Ended

Jun. 30, 2024

NOTE 2 — LIQUIDITY

The Company is in the clinical stage and has not yet generated any revenues. For the fiscal year ended June 30, 2024, the Company incurred a net loss of $68.5 million and net cash used in operating activities amounted to $57.4 million. As of June 30, 2024, the Company had an accumulated deficit of $329.4 million, and the Company’s capital resources consisted of cash and cash equivalents of $70.4 million and in marketable debt securities totaling $56.7 million.

As discussed in Note 7, the Company completed the 2024 Underwritten Offering in June 2024 that resulted in the issuance of approximately 13.0 million shares of common stock and 3.8 million prefunded warrants for net proceeds of $62.6 million after underwriting discounts and other offering costs.

As of June 30, 2024, the Company had total liabilities of $11.7 million, including total current liabilities of $9.6 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $5.0 million milestone payment will be due upon dosing of the last patient in a Phase 3 clinical trial for ersodetug. The commitment to pay the last patient dosing milestone of $5.0 million for the ersodetug Phase 3 clinical trial is expected to be recognized as a liability within 12 months.

As discussed in Note 15, in July 2024 the Company received net proceeds of approximately $6.0 million related to a private placement of 1.5 million shares of common stock.

Management believes the Company’s cash and cash equivalents, investments in marketable debt securities, and additional proceeds from the July 2024 private placement, will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities through September 2025, at a minimum.