Organization and Nature of the Business

3 Months Ended

Mar. 31, 2024

Organization and Nature of the Business [Abstract]

Organization and Nature of the Business

1. Organization and Nature of the Business

Overview

Protara Therapeutics, Inc., and its consolidated subsidiaries (“Protara” or the “Company”), is a clinical-stage biopharmaceutical company committed to advancing transformative therapies for the treatment of cancer and rare diseases. Protara’s portfolio includes two development programs utilizing TARA-002, an investigational cell therapy in development for the treatment of non-muscle invasive bladder cancer, or NMIBC, and lymphatic malformations, or LMs. Additionally, the Company’s portfolio includes Intravenous, or IV, Choline Chloride, an investigational phospholipid substrate replacement therapy in development for patients receiving parenteral nutrition, or PN.

Liquidity and Capital Resources

On April 5, 2024, the Company entered into a subscription agreement with certain purchasers and subsequently closed a private placement transaction, or the Private Placement, on April 10, 2024. Pursuant to the Private Placement the Company sold 9,143,380 shares of common stock and, for certain purchasers, pre-funded warrants to purchase an aggregate of 1,700,000 shares of common stock. In each case, the shares of common stock and pre-funded warrants were accompanied by warrants to purchase an aggregate of up to 10,843,380 shares of common stock at a price of $5.25.

Each share of common stock along with its attached common warrant, had a purchase price of $4.15 and each pre-funded warrant, along with its attached common warrant, had a purchase price of $4.149.

At the close of the Private Placement on April 10, 2024, the Company received total net proceeds of approximately $41,963 after deducting placement agent fees and offering expenses.

The Company is in the business of developing biopharmaceuticals and has no current or near-term revenues. The Company has incurred substantial clinical and other costs in its drug development efforts. The Company will need to raise additional capital in order to fully realize management’s plans.

The Company believes that its current financial resources are sufficient to satisfy the Company’s estimated liquidity needs for at least twelve months from the date of issuance of these unaudited condensed consolidated financial statements.