Why did Belite Bio's operating expenses surge in Q4 2024?

Belite Bio's operating expenses surged in Q4 2024 due to several significant factors:

1. **Clinical Trial Expenses**: The company's operating expenses were likely increased due to the costs associated with their ongoing and newly initiated clinical trials. Belite Bio has been actively advancing its lead product candidate, Tinlarebant, in multiple clinical trials, including the Phase 2/3 DRAGON II trial and the Phase 3 PHOENIX trial. These trials require substantial investments in research and development, including patient enrollment, data collection, and analysis.
2. **Warrant Exercises**: The company recently exercised outstanding warrants, raising $28.75 million in November 2024. The proceeds from this exercise are likely to have been used for general corporate purposes, which may have included funding operating expenses. The issuance of new unregistered shares at a higher price point could also have contributed to the increase in operating expenses, as the company may have used some of the proceeds to cover existing expenses or to fund future growth.

In conclusion, the surge in operating expenses can be attributed to the significant investments in clinical trials and warrant exercises.