Eledon Pharmaceuticals, Inc. (ELDN)·Q2 2024 Earnings Summary

Executive Summary

• Eledon delivered a preliminary Q2 2024 update focused on clinical execution and balance sheet strength while announcing a non-cash accounting restatement (warrants reclassified as liabilities) and delaying the Q2 Form 10‑Q; detailed P&L items (revenue/EPS) were not reported for the quarter .
• Liquidity improved materially with an oversubscribed $50.0M private placement; period-end cash was approximately $83.6M, and management now expects runway through December 2025 .
• Clinical momentum continued: updated Phase 1b data (13 participants) showed overall mean eGFR 70.5 mL/min/1.73m² after day 30 and two patients >90 mL/min/1.73m² at one year; Phase 2 BESTOW reached 80 enrolled by July with completion targeted by year-end 2024 .
• Risk factor emerged: a material weakness in ICFR related to equity instrument accounting and restatement of prior financials; management emphasized this is non-cash and not expected to impact operations or cash runway .

What Went Well and What Went Wrong

• What Went Well

  • Liquidity and runway: $50.0M private placement increased quarter-end cash to ~$83.6M; runway expected through Dec 2025 .
    “We have entered the second half of the year with a strong balance sheet…” — CEO David‑Alexandre C. Gros, M.D. .
  • Clinical execution: 80 participants enrolled in Phase 2 BESTOW as of July; enrollment completion remains on track by year-end 2024 .
  • Phase 1b data quality: Updated data (n=13) showed overall mean eGFR 70.5 mL/min/1.73m² after day 30; two participants >90 mL/min/1.73m² at one year, supporting potential vs. calcineurin inhibitor SOC .

• What Went Wrong

  • Accounting restatement: Warrants reclassified as liabilities under ASC 815-40; prior filings require restatement and should no longer be relied upon .
  • Material weakness: Identified in internal control over financial reporting for equity instruments; disclosure controls deemed not effective over specified periods .
  • Reporting delay: Q2 10‑Q filing delayed due to restatement process; Company furnished preliminary operating update instead of full quarterly financial statements .

Financial Results

Note: The Company furnished a preliminary Q2 business update and disclosed a restatement/delay of the Q2 10‑Q; revenue, EPS, and full P&L were not reported for Q2 2024. Liquidity metrics and qualitative financial notes were provided.

Additional financial notes for Q2 2024:

• Non-cash restatement for warrant liabilities; not expected to impact cash, short-term investments, or cash runway .
• Management expects sufficient liquidity through December 2025 .

KPIs and Operating Metrics

Estimate Comparison (S&P Global)

• Consensus estimates (revenue/EPS) for Q2 2024 were not available from S&P Global at the time of analysis; therefore estimate comparisons are omitted. We will update when available.

Guidance Changes

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was posted; themes below reflect company press releases and 8‑K disclosures.

Management Commentary

• “We have entered the second half of the year with a strong balance sheet following our oversubscribed $50 million private placement… we continue to believe that tegoprubart has the potential to displace calcineurin inhibitors… as a first-line immunosuppression agent for patients undergoing kidney transplant.” — David‑Alexandre C. Gros, M.D., CEO .
• “As of this week, we have already enrolled two-thirds of the projected study participants… We remain on track to complete enrollment by the end of the year.” — David‑Alexandre C. Gros, M.D., CEO (on BESTOW) .
• Prior context: “Eledon continues to execute on time and as promised towards our goal of extending the functional life of transplanted organs.” — CEO, Q4/FY 2023 release .
• Accounting update: Management reported the non‑cash restatement for warrant classification and emphasized no expected impact to cash, cash equivalents, short-term investments, or cash runway .

Q&A Highlights

• No Q2 2024 earnings call transcript or Q&A was posted; the Company furnished a preliminary operating update and disclosed a delayed Q2 10‑Q due to restatement work .

Estimates Context

• S&P Global consensus (revenue, EPS) for Q2 2024 was unavailable at the time of analysis; as a result, comparisons vs. estimates are not included. We will update this section once S&P Global data can be retrieved.

Key Takeaways for Investors

• Balance sheet de‑risked: $50M private placement and ~$83.6M quarter-end cash support development into late 2025, reducing near-term financing risk .
• Clinical trajectory solid: Phase 1b eGFR data remain encouraging (overall mean 70.5 post day‑30; two >90 at one year); BESTOW enrollment pace suggests high clinical interest and execution .
• Accounting overhang: Restatement and ICFR material weakness introduce governance risk and near-term reporting uncertainty; management asserts non‑cash, no runway impact .
• Catalysts: BESTOW enrollment completion by YE2024 and mid‑2025 Phase 1b/OLE update create newsflow; subsequent to Q2, Company announced BESTOW enrollment completion (Sept 4) and top-line timing (4Q25), reinforcing medium-term visibility .
• Watch for 10‑Q filing/resolution of restatement: Timely completion and clarity on any non‑cash P&L impacts will be important for reducing uncertainty and broadening investor participation .
• Thesis check: If BESTOW confirms clinically meaningful graft function (eGFR) vs tacrolimus with an improved tolerability profile, tegoprubart could become a differentiated immunosuppression option in kidney transplantation, a segment with long-standing unmet needs .

Appendix: Source Highlights

• Q2 2024 8‑K (Item 2.02 and 4.02) with preliminary operating update, restatement details, and liquidity .
• Q2 2024 preliminary press release (clinical and cash updates) .
• Q2 2024 relevant press in quarter: Phase 1b updated data (June 3) ; BESTOW enrollment update (July 29) .
• Prior quarters for trend: Q1 2024 8‑K and press release (net loss, EPS, expenses, cash) ; Q4/FY 2023 8‑K and press release (expenses, EPS, cash/investments) .