Theralase Technologies Inc. V.TLT

RE:RE:RE:RE:Looking for help w/numbers for burn rate, cash on hand, et.

[tdon1229]

Biggainer wrote: The reason why the burn rate has gone down the last few quarters is that covid has shut down treatment for patients, That is why we'll have a better idea on how much they're spending on treatment the next quarter and the quarter after that. When they begin to treat all 25 patients their burn rate will be much higher as logic would suggest. As for being good or bad is dependent on the phase II results. If they get spectacular positive results it will be good, but if they get ho hum results then you know what happens to the stock prices. I'll may add more depending on the next quarterly results.

BuenaSuertaAtod wrote: Many thanks for the excellent info Biggainer! I like that most recent 6 quarters show a clear trend downward in burn rate from well over $2 million per quarter to less than $1 million per quarter.

You say that you expect "the burn rate will be much higher as they go through phase II". Is that the nature of a phase II in general? Is that good (because they're on to phase II), bad (because it means that we're that much closer to another PP), or neutral for TLT?

-TIA

Biggainer wrote: Here is the breakdown of their burn rate.

As of 06/30/2019 cash and cash equivalents of $ 1,134,725

On 08/22/2019 - PP of $17,250,000 minus 6% ($ 1,035,000) for finders fee = $ 16,215,000

As of 09/30/2019 cash and cash equivalents of $ 14,975,634 ( - $ 2,374,091) per quarter 

As of 12/31/2019 cash and cash equivalents of $ 12,548,550 ( - $ 2,427,085)

As of 03/31/2020 cash and cash equivalents of $ 10,916,159 ( - $ 1,632,391)

As of 06/30/2020 cash and cash equivalents of $ 9,610,914 ( - $ 1,305,245)

As of 09/30/2020 cash and cash equivalents of $ 8,790,901 ( - $ 820,013)

As of 12/31/2020 cash and cash equivalents of $ 7,880,243 (- $ 910,658)

So according to their financials, since end of 06/30/2019 to end of 12/31/2020 or 18 months, they have burned through approximately $9,469,483 or avg. of about $526,082/month. 
I also think the burn rate will be much higher as they go through phase II. Just have to see the next quarterly report to get a much clearer picture as to how they stand financially.

BuenaSuertaAtod wrote: I've read here that $390K/mo was burn rate for 2020. $390 x 12mo = $4,680K for the year.

I've also read here that $7,800k cash on hand remains at YE 2020. $7,800K + $4,680K = $11,480K

In Jan 2020 units were issued that raised total gross funds of at least $17,250,000. Net would be quite a bit less than that. Just the same, if $4,680 was what they burned through in 2020 there ought to be more cash left over from that PP than $7,800K shouldn't there?

Where have my numbers gone wrong?

 

 

 

As I've noted previously, US clinical trial sites usually are funded in advance.  Fees are paid to the FDA and funds are provided to the trial sites to cover the costs for investigators for the duration of the trials.  Opening of the six US sites in the first quarter of 2021 will be shown by a sharp drawdown of funds available in the corresponding quarter.  The next quarterly financials will reflect those costs.