Clene Inc. reported cash and cash equivalents of $7.3 million as of June 30, 2025. The company has issued a "going concern" warning, indicating substantial doubt about its ability to continue operations for the next twelve months without additional financing due to significant historical losses and negative cash flows.
To address this "going concern" warning, Clene Inc. has outlined several strategies:
- Capital Raising: The company plans to raise additional funding through various means, including equity financing and offerings, debt financing, and licensing or collaboration arrangements with third parties. They also intend to utilize their existing at-the-market (ATM) facility and equity purchase agreement, as well as potential proceeds from the exercise of outstanding warrants and stock options.
- Cost-Saving Initiatives: Clene Inc. has implemented measures to reduce expenses, such as delaying and reducing certain research and development programs and commercialization efforts, reducing employee compensation, and eliminating staff positions.
- Recent Financing Activities: Subsequent to June 30, 2025, Clene Inc. generated $1.9 million in gross proceeds from its equity distribution agreement and raised an additional $1.5 million through the issuance of senior secured convertible promissory notes.
- Debt Restructuring: On August 13, 2025, the company amended its 2024 Senior Secured Convertible Promissory Notes, extending the maturity date and delaying the commencement of monthly repayments from January 2026 to September 2026. Monthly interest payments starting August 2025 will also be capitalized and added to the note balance.
Despite these efforts, Clene Inc. has concluded that these plans do not fully alleviate the substantial doubt about its ability to continue as a going concern beyond one year from the date the financial statements were issued. The company's net cash used in operating activities for the six months ended June 30, 2025, was $9.755 million.
