0001193125-26-130490
SEC filingTempest Therapeutics, a pre-revenue biotech, reported full fiscal 2025 operating losses and will require additional financing to advance its business objectives.
Fiscal 2025 operating results reflect Tempest’s status as a pre-revenue biotechnology firm, with no product revenue generated from its activities to date. The company recognizes noncash stock-based compensation expense for awards to employees, non-employees, and directors based on grant-date fair value calculated using the Black-Scholes option-pricing model. Research and development costs represent a significant component of the company’s operating expenses for the period, consistent with its focus on therapeutic pipeline advancement. Period-over-period results comparisons are available in the tabular disclosures included in this Item 7 section of the filing.
Since inception through December 31, 2025, Tempest’s operations have been financed primarily by net cash proceeds from sales of common stock, convertible preferred stock, and debt issuances. The company reported zero capital expenditures for fiscal 2025, leading to free cash flow equal to net cash used in operating activities for the year. As of period end, Tempest holds no long-term debt and no material non-cancelable purchase commitments with service providers, as the majority of its vendor contracts are structured as cancelable purchase orders. The company will need to rely on additional financing, including its existing funding commitment with Factor, to achieve its business objectives.
Tempest expects research and development and general and administrative expenses to increase following the closing of its planned asset acquisition, leading to continued operating losses for the foreseeable future. Prior and expected future losses have had and will continue to have an adverse effect on the company’s stockholders’ equity and working capital. Additional risks include potential declines in demand for the company’s common stock if one or more equity research analysts cease coverage or fail to publish regular reports on Tempest, which could lead to declines in share price or trading volume.