0001193125-26-124143
SEC filingEquillium, Inc. (EQ) reported a net loss of $22.4 million for the fiscal year ended December 31, 2025, widening from $8.1 million in 2024, driven by the absence of revenue following the termination of the Asset Purchase Agreement with Ono Pharmaceutical. Revenue dropped to $0 from $41.1 million YoY, as all upfront and development funding was recognized by 2024. Operating expenses totaled $23.6 million, with research and development at $12.8 million (down 66% from $37.4 million due to wind-down of itolizumab studies like EQUATOR and EQUALISE) and general and administrative at $10.8 million (down 10% from $11.9 million). Loss from operations was $23.6 million, offset partially by $1.2 million in other income, resulting in a $22.4 million pre-tax and net loss. Balance sheet reflects strong liquidity with $30.3 million in cash and cash equivalents and $4.5 million in short-term investments, total assets of $31.9 million, and stockholders' equity of $28.6 million. Cash flows showed $22.7 million used in operations, $4.5 million provided by investing, and $30.4 million from financing, primarily $27.9 million net from an August 2025 private placement. Management anticipates existing cash plus March 2026 proceeds will fund operations into 2029, prioritizing EQ504 Phase 1 study initiation in mid-2026 for ulcerative colitis.
Equillium, Inc. posted a $22.4 million net loss for FY 2025 ended December 31, 2025, compared to $8.1 million in 2024. Revenue fell to $0 from $41.1 million YoY after the Ono Asset Purchase Agreement expired on October 30, 2024, with prior revenue from $26.4 million upfront and $28.3 million development funding fully recognized by 2024. Total operating expenses declined to $23.6 million from higher prior-year levels, driven by R&D drop to $12.8 million (from $37.4 million) due to itolizumab program wind-down, including EQUATOR ($4.8 million) and other studies. G&A expenses were $10.8 million, down slightly from $11.9 million. Loss from operations was $23.6 million, improved by $1.2 million other income (interest $833K, other $403K), yielding $22.4 million loss before zero tax expense. Comprehensive loss was $22.8 million. Shares outstanding basic/diluted: 57.3 million. Accumulated deficit reached $216.2 million.
No revenue was recognized in FY 2025, compared to $41.1 million in 2024 from the Ono agreement ($12.8 million upfront amortization, $28.3 million development funding). The agreement terminated October 30, 2024, with no deferred revenue remaining as of December 31, 2024. Prior Biocon collaboration terminated September 30, 2025, with $0.4 million set-off as R&D reduction. No product sales, milestones, or royalties generated to date. Future revenue unlikely within 12 months, dependent on EQ504/EQ302 advancement.
With zero revenue, operating margin is undefined (operating loss $23.6 million on $23.6 million expenses). No gross profit or margin applicable absent COGS. Profitability pressured by R&D (54% of op ex) and G&A (46%). YoY R&D declined 66% on clinical wind-down, vendor discounts, lower headcount; indirect costs (employee comp $5.5M, overhead $1.0M) also fell. Stock-based comp $2.3 million. Interest income dropped to $833K from $1.4 million on lower cash balances. Other income $403K vs prior expense.
Net cash used in operations was $22.7 million (net loss $22.4M, non-cash add-backs $2.0M including $2.3M stock comp, changes in assets/liabs -$2.3M, deferred revenue -$15.7M). Investing provided $4.5 million (short-term inv maturities $4.5M offset purchases $17.6M, minor property). Financing yielded $30.4 million ($27.9M private placement net, $1.8M option exercises, ATM $0.7M net). Net cash increase $12.2M; ending cash $23.2M (balance sheet $30.3M cash equiv + $4.5M short-term inv). Total assets $31.9M (current $31.0M), liabilities $3.3M (current $2.9M), equity $28.6M (APIC $244.4M, deficit -$216.2M). Shares issued/outstanding: 61.5M vs 35.6M prior. Minimal debt; leases $658K ROU asset, $719K liabs.
Cash of $30.3M plus $35.0M March 2026 private placement gross expected to fund into 2029. Priorities: EQ504 Phase 1 proof-of-mechanism mid-2026 (UC/GI focus, data ~6 months later); evaluate EQ302 advancement (celiac, oral IL-15/IL-21 inhibitor). Expenses to rise on clinical/CMC for EQ504, potential new candidates via platform. No product revenue soon; finance via equity/debt/collaborations. Risks: development delays, capital needs, macro volatility (Ukraine/Middle East conflicts, inflation). No material purchase commitments; contingent milestones remote.