Shares of Atossa Therapeutics, Inc. (ATOS) stock were declining in the pre-market trading session on August 26, 2021. ATOS stock price saw a decline of 3.50 % to drop at $3.58 a share at the time of this writing. The stock was green in the previous trading session and went high by 1.37% at closing. Let’s dig in to understand the reason behind this drop.
What’s Happening?
Atossa Therapeutics, Inc. is the biopharmaceutical stock that is developing therapeutics to treat infectious diseases. Yesterday on August 25, 2021, Levi & Korsinsky announced investigations against Atossa Therapeutics. Investigations concerned possible breaches of fiduciary duty.
Levi & Korsinsky is a renowned law firm having offices in various states of the United States of America. The firm has recovered millions of dollars for shareholders of various stocks.
Financial View of ATOS stock:
ATOS stock on August 26, 2021, did announce second-quarter 2021 financial results the highlights of which are given below.
- Atossa stock had no source of sustainable revenue and no associated cost of revenue for the second quarter of 2021.
- The stock spent $7,004,000 in total operating expenses in the second quarter of 2021. Operating expenses for the first half were $10,534,000 for Atossa Therapeutics. Total operating expenses for the three- and six-month periods in the previous year were $3,936,000 and $6,873,000
- Research and development expenses in the recently reported quarter were $3,799,000. This represents an increase of 130% from the same tenure of the previous year. These expenses for the six months were $5,177,000, a 100% increase year-over-year. Previous year three months and six months research and development expenses were $1,653,000 and $2,592,000
- General and administrative expenses for ATOS stock reached $3,205,000 in the second quarter of 2021. These expenses increased by $922,000, or 40% from the same prior-year quarter. For the first half of 2021, these expenses were $5,357,000 which represents an increase of 25% from the same prior-year quarter.
Balance Sheet of ATOS stock:
By the end of the second quarter of 2021, ATOS stock had $142.5 million in cash, cash equivalents, and restricted cash. This compares to $137.57 million cash, cash equivalents, and restricted cash as of March 31, 2021.
Wrap Up:
The investigation against Atossa Therapeutics by the Levi & Korsinsky is the obvious reason for the bearish sentiment today. Increased operating expenses in 2021 reflect that the stock is progressing with time. It has gained almost 26% in the last 12 months.
