0001193125-26-213423
SEC filingOperating loss deepened 33% to $9.9M on higher R&D and legal costs, with cash burn accelerating and going concern uncertainty persisting.
Net loss for Q1 2026 was $9.6 million, compared to $6.7 million in Q1 2025, an increase of 43%. Diluted earnings per share were -$1.11, compared to -$0.05 in the prior year period. The significant change in EPS was primarily due to a reverse stock split that reduced the share count, amplifying the per-share loss.
Net cash used in operating activities was $9.6 million for Q1 2026, up from $6.0 million in Q1 2025, reflecting higher operating expenses. Capital expenditures were immaterial in both periods. The company's ability to continue as a going concern is dependent on obtaining adequate capital to fund operating losses until profitability. Management expects ongoing operating losses for the foreseeable future as clinical programs advance.
Management expects ongoing operating losses for the foreseeable future as clinical programs advance. Key risks include: (1) going concern and need for near-term capital; (2) reliance on single drug candidate (Z)-endoxifen; (3) clinical trial execution and regulatory approval uncertainty; (4) patent litigation (settled post-quarter but with ongoing costs); and (5) potential dilution from future equity raises. Positive catalysts include FDA designations for rare pediatric diseases and upcoming clinical data readouts in H2 2026.