Overview

Klotho Neurosciences, Inc. (the “Company” or “Klotho”) is a biopharmaceutical company that develops essential medicines for the treatment of chronic diseases, including cancer, cardiovascular, and neurodegenerative disorders. The company has acquired two licensed platforms: a generic drug portfolio and a biosimilar biologics platform for cancer treatment, as well as a proprietary, patented gene therapy platform that uses a therapeutic protein called “Klotho” to treat neurodegenerative diseases.

On June 21, 2024, the company completed a business combination with ANEW Medical, Inc., a Wyoming corporation, through a reverse acquisition. The company then changed its name to Klotho Neurosciences, Inc. on September 17, 2024.

Results of Operations

The company has not generated any operating revenues to date. Its historical results have been driven by expenses related to being a public company, as well as expenses associated with planning its research and clinical testing operations.

Years Ended December 31, 2024 and 2023

The company’s financial results for the years ended December 31, 2024 and 2023 are as follows:

Revenues: The company had no revenue for the years ended December 31, 2024 and 2023.

Operating Expenses: The company’s operating expenses for the year ended December 31, 2024 were $5,540,236, compared to $631,322 for the year ended December 31, 2023, an increase of $4,908,914. The increase was primarily due to increased stock-based compensation expense as well as expenses associated with the business combination, including increases in third-party consulting fees and professional fees.

Net Loss: For the year ended December 31, 2024, the company incurred a net loss of $6,150,372, compared to a net loss of $707,458 for the year ended December 31, 2023. The increase in net loss was primarily due to the same factors that drove the increase in operating expenses.

Working Capital

The company’s working capital increased by $0.5 million from December 31, 2023 to December 31, 2024, primarily due to an increase in accrued expenses of approximately $0.9 million and a decrease in note payables of approximately $1.2 million from equity inducement on the Austria Capital promissory note.

Liquidity and Capital Resources

The company’s net cash used in operating activities increased from $446,916 in 2023 to $2,946,512 in 2024, primarily due to increases in expenses related to the business combination and continued operating costs. Net cash used in investing activities increased from $23,582 in 2023 to $123,497 in 2024, primarily due to the acquisition of licenses.

As of December 31, 2024, the company had cash of $63,741 and a net working capital deficit of $1,089,723. The company is dependent on obtaining additional working capital funding from the sale of equity and/or debt securities in order to continue to execute its development plans and continue operations. Without additional funding, there is substantial doubt about the company’s ability to continue as a going concern for the next twelve months.

Critical Accounting Estimates

The company has identified the following critical accounting policies: fair value of financial instruments, convertible promissory notes, warrants, and net income (loss) per share. These policies involve the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the disclosure of contingent assets and liabilities.