PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risk and controls [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises readers that the report contains forward-looking statements subject to risks and uncertainties, which could cause actual results to differ materially from projections - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[10](index=10&type=chunk) - Statements are based on management's beliefs and assumptions, and the company does not undertake to update them[10](index=10&type=chunk) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for electroCore, Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive loss, equity, and cash flows, along with accompanying notes - The financial statements are unaudited and prepared in conformity with U.S. GAAP and SEC regulations for interim reporting[28](index=28&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,373 | $3,450 | | Restricted cash | $250 | $250 | | Marketable securities | $3,772 | $8,519 | | Accounts receivable, net | $813 | $1,367 | | Inventories | $1,427 | $1,676 | | Prepaid expenses and other current assets | $922 | $1,038 | | **Total current assets** | **$10,557** | **$16,300** | | Property and equipment, net | $197 | $158 | | Operating lease right of use assets, net | $3,663 | $3,739 | | Other assets, net | $142 | $274 | | **Total assets** | **$14,559** | **$20,471** | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $2,567 | $1,827 | | Accrued expenses and other current liabilities | $6,646 | $6,964 | | Current portion of operating lease liabilities | $405 | $361 | | **Total current liabilities** | **$9,618** | **$9,152** | | Noncurrent operating lease liabilities | $3,828 | $3,775 | | **Total liabilities** | **$13,446** | **$12,927** | | Common Stock, par value $0.001 per share | $7 | $7 | | Additional paid-in capital | $185,741 | $184,513 | | Accumulated deficit | $(184,616) | $(177,090) | | Accumulated other comprehensive income | $(19) | $114 | | **Total stockholders' equity** | **$1,113** | **$7,544** | | **Total liabilities and stockholders' equity** | **$14,559** | **$20,471** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share data) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $7,381 | $6,139 | $14,100 | $11,582 | | Cost of goods sold | $939 | $838 | $1,952 | $1,726 | | Gross profit | $6,442 | $5,301 | $12,148 | $9,856 | | Operating expenses: | | | | | | Research and development | $511 | $635 | $1,153 | $1,034 | | Selling, general and administrative | $9,437 | $7,257 | $18,323 | $15,262 | | Total operating expenses | $9,948 | $7,892 | $19,476 | $16,296 | | Loss from operations | $(3,506) | $(2,591) | $(7,328) | $(6,440) | | Total other expense (income) | $165 | $64 | $246 | $(157) | | Loss before income taxes | $(3,671) | $(2,655) | $(7,574) | $(6,283) | | Benefit from income taxes | $- | $- | $48 | $122 | | Net loss | $(3,671) | $(2,655) | $(7,526) | $(6,161) | | Net loss per share – Basic and Diluted | $(0.44) | $(0.38) | $(0.91) | $(0.90) | | Weighted average common shares outstanding – Basic and Diluted | 8,316 | 7,046 | 8,302 | 6,831 | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(3,671) | $(2,655) | $(7,526) | $(6,161) | | Other comprehensive (loss) income: | | | | | | Foreign currency translation adjustment | $(89) | $33 | $(133) | $109 | | Other comprehensive (loss) income | $(89) | $33 | $(133) | $109 | | Comprehensive loss | $(3,760) | $(2,622) | $(7,659) | $(6,052) | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Condensed Consolidated Statements of Equity (in thousands) | (in thousands) | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Balances as of January 1, 2025** | **6,651** | **$7** | **$184,513** | **$(177,090)** | **$114** | **$7,544** | | Net loss | — | — | — | $(3,855) | — | $(3,855) | | Other comprehensive income | — | — | — | — | $(44) | $(44) | | Sale of common stock | 14 | — | 217 | — | — | 217 | | Financing fees | — | — | (38) | — | — | (38) | | Proceeds from the exercise of warrants | 725 | — | 1 | — | — | 1 | | Issuance of stock related to employee compensation, net | 30 | — | — | — | — | — | | Share based compensation | — | — | 540 | — | — | 540 | | **Balances as of March 31, 2025** | **7,420** | **$7** | **$185,233** | **$(180,945)** | **$70** | **$4,365** | | Net loss | — | — | — | $(3,671) | — | $(3,671) | | Other comprehensive income | — | — | — | — | $(89) | $(89) | | Options exercised | 10 | — | 45 | — | — | 45 | | Financing fees | — | — | (42) | — | — | (42) | | Issuance of stock related to employee compensation, net | 36 | — | — | — | — | — | | Share based compensation | — | — | 505 | — | — | 505 | | **Balances as of June 30, 2025** | **7,466** | **$7** | **$185,741** | **$(184,616)** | **$(19)** | **$1,113** | | **Balances as of January 1, 2024** | **6,003** | **$6** | **$172,704** | **$(165,204)** | **$(64)** | **$7,442** | | Net loss | — | — | — | $(3,506) | — | $(3,506) | | Other comprehensive income | — | — | — | — | 76 | 76 | | Issuance of stock related to employee compensation plan, net of forfeitures | 3 | — | — | — | — | — | | Share based compensation | — | — | 484 |

Company to host a conference call and webcast today, August 6, 2025 at 4:30 p.m. EDT ROCKAWAY, NJ, August 6, 2025 (GLOBE NEWSWIRE) – electroCore, Inc. (Nasdaq: ECOR) ("electroCore" or the "Company"), a commercial-stage bioelectronic technology company, today announced financial results for the three and six months ended June 30, 2025. Recent Highlights "The Veterans Administration market returned to normalized growth in the second quarter, validating our confidence in the long-term relevance of our solution ...

Core Insights - electroCore, Inc. reported net sales of $7.4 million for Q2 2025, representing a 20% increase compared to Q2 2024, and year-to-date net sales of $14.1 million, a 22% increase compared to the first half of 2024 [4][8] - The company successfully closed the acquisition of NeuroMetrix, Inc. and completed the integration ahead of schedule, while also reducing cash usage to approximately $614,000 in Q2 2025 [3][8] Financial Performance - For Q2 2025, gross profit was $6.4 million, yielding an 87% gross margin, compared to $5.3 million and 86% gross margin in Q2 2024 [4] - Total operating expenses for Q2 2025 were approximately $9.9 million, up from $7.9 million in Q2 2024, driven by increased selling, general, and administrative expenses [6][9] - GAAP net loss for Q2 2025 was $3.7 million, or a loss of $0.44 per share, compared to a net loss of $2.7 million, or a loss of $0.38 per share, in Q2 2024 [11][22] Revenue Breakdown - The increase in net sales was primarily attributed to higher sales of prescription products sold to the U.S. Department of Veterans Affairs (VA) and growth in nonprescription wellness products, including Truvaga™ and TAC-STIM [4][8] - Prescription gammaCore sales to the VA increased by 13% year-over-year, while sales of Truvaga™ surged by 74% in Q2 2025 compared to Q2 2024 [5][8] Cash Position and Outlook - As of June 30, 2025, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $7.4 million, down from $12.2 million at the end of 2024 [14] - For the full year 2025, the company expects total revenue to be approximately $30.0 million and net cash usage to be between $3.9 million and $4.4 million [15]

Core Insights - electroCore, Inc. has appointed James C. Theofilos to its Board of Directors effective August 1, 2025, highlighting the company's commitment to enhancing its leadership team [1][2] - Mr. Theofilos brings nearly two decades of experience in finance and strategic growth, particularly in the healthcare and life sciences sectors, which is expected to benefit electroCore's operational discipline and innovation [2] - electroCore focuses on improving health and quality of life through non-invasive bioelectronic technologies, with its leading products including gammaCore and Quell neurostimulator for chronic pain treatment [3] Company Overview - electroCore, Inc. is a commercial-stage bioelectronic technology company dedicated to innovative non-invasive solutions for health improvement [3] - The company's primary products, gammaCore and Quell, utilize non-invasive vagus nerve stimulation technology to address chronic pain syndromes [3] - Additionally, electroCore markets Truvaga products, which are designed for personal use to enhance general wellness and human performance [3]

Company Overview - electroCore, Inc. is a commercial-stage bioelectronic technology company focused on improving health and quality of life through innovative non-invasive bioelectronic technologies [2] - The company's leading prescription products include gammaCore, a non-invasive vagus nerve stimulation (nVNS) device, and Quell neurostimulator, both aimed at treating chronic pain syndromes [2] - Additionally, electroCore offers Truvaga products, which are handheld nVNS devices designed for personal use to promote general wellness and human performance [2] Upcoming Financial Results - electroCore will report its financial results for the second quarter ended June 30, 2025, after the market closes on August 6, 2025 [1] - Management will host a webinar at 4:30 PM EDT on the same day to review the financial results and address investor questions [1] - Investors can access the webinar through a provided registration link and dial-in details [1]

Company Overview - electroCore is a commercial-stage bioelectronic medicine and wellness company focused on multiple indications[6] - The company has FDA clearance for the prevention and treatment of primary headache in adults and adolescents[13] - The company has FDA authorization for symptoms of Fibromyalgia[13] Financial Performance and Projections - The company's revenue has a 5-year CAGR of 58%[7] - Revenue increased from $5.5 million in 2021 to $25.2 million in 2024[12] - Revenue is projected to reach $30 million in 2025[12] - Gross margins are approximately 85%[13] Market Opportunity - The total addressable market (TAM) for VA channel is $2.9 billion[15] - The total addressable market (TAM) for US commercial channel is $101 million[15] - The total addressable market (TAM) for Health & Wellness channel is $33 billion[15] - The total addressable market (TAM) for TAC-STIM is $9.7 billion[15] - $20 billion is spent annually out-of-pocket for chronic pain treatments[14]

分组1 - ElectroCore, Inc. reported a quarterly loss of $0.47 per share, better than the Zacks Consensus Estimate of a loss of $0.56, and an improvement from a loss of $0.53 per share a year ago, resulting in an earnings surprise of 16.07% [1] - The company posted revenues of $6.72 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.12%, but showing an increase from $5.44 million in the same quarter last year [2] - ElectroCore shares have declined approximately 57% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $7.62 million, and for the current fiscal year, it is -$1.36 on revenues of $31.44 million [7] - The Zacks Industry Rank for Medical - Drugs is in the top 26% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the first quarter of 2024 [7][23] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [7][24] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [27] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [8] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, with a focus on medical devices and wellness products [5] - The acquisition of the Quell product line from Neurometrics Inc. is a key component of this transformation [5][17] - The company plans to evaluate market access through third-party payer systems and hospital networks for its prescription product suite [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the strong demand for gammaCore in the VA channel [30] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [30] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [17] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The company plans to launch TRUVEGA in the UK and Canada later in 2025 [14] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management is optimistic that overhead absorption will be better than the previous structure, aiming for margins above 60% but cannot provide precise estimates yet [40][41] Question: Any concerns about tariff exposure for Quell components? - Management believes there is minimal tariff exposure as most components are sourced domestically, with some from Southeast Asia [42] Question: How should growth be modeled for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are added [50] Question: What is the expected contribution from the new acquisitions? - Material revenue contributions from Sparrow are expected to be more of a 2026 story, while Quell is anticipated to generate revenue once manufacturing is validated [61][63] Question: What are the plans for R&D spending? - R&D expenses are expected to remain steady, focusing on sales support and data related to PTSD and traumatic brain injury [65]

Financial Data and Key Metrics Changes - In the first quarter of 2025, the company reported revenue of $6.7 million, a 23% increase compared to $5.4 million in the same quarter of 2024 [22][6] - Gross margins improved to 85% in Q1 2025 from 84% in Q1 2024 [6][23] - GAAP net loss for Q1 2025 was $3.9 million, compared to a net loss of $3.5 million in Q1 2024 [24][26] - Cash and cash equivalents totaled approximately $8 million as of March 31, 2025, down from approximately $12.2 million at the end of 2024 [26] Business Line Data and Key Metrics Changes - Prescription gammaCore VA revenue grew 22% to $4.7 million in Q1 2025 from $3.9 million in Q1 2024 [7] - TRUVEGA net sales reached approximately $1.1 million, a 187% increase from the previous year [10] - Revenue from channels outside the United States increased to $513,000 in Q1 2025 from $449,000 in the same period last year [14] Market Data and Key Metrics Changes - The VA Hospital Administration estimates around 600,000 patients are treated for headaches in the VA system, with a significant number of fibromyalgia patients also identified [8][9] - The company has dispensed gammaCore devices to approximately 9,500 veterans, representing about 1.6% of the total addressable headache market within the VA system [9] Company Strategy and Development Direction - The company is transforming into a broader bioelectronic technology firm, focusing on medical devices and wellness products, with the acquisition of the Quell product line from Neurometrics being a key component [4][5] - The company aims to leverage established distribution channels, particularly in the VA hospital system, to accelerate the adoption of new products like Quell and Sparrow [20][32] - Plans to launch TRUVEGA in the UK and Canada later in 2025 are underway [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to sequential growth in core prescription channels and highlighted the positive momentum in both VA and direct-to-consumer channels [27][28] - The company anticipates that operating metrics will improve as revenues grow and one-time expenses decrease [28][33] - Management expects to achieve cash neutrality with quarterly revenue of about $9 million by the end of 2025 or early 2026 [16] Other Important Information - The company incurred additional one-time expenses for severance related to internal restructuring and the acquisition of Neurometrics [15] - The contribution margin of incremental revenue is approximately 65% with the current product mix [16] Q&A Session Summary Question: What are the expected margins for Quell by the end of the year? - Management indicated that while precise estimates are not available yet, they are optimistic that margins will be well above 60% once manufacturing is restarted [38][39] Question: How does cash look after the Neurometrics acquisition? - Cash levels are expected to remain similar to those reported as of March 31, with the acquisition costs primarily covered by cash on Neurometrics' balance sheet [43] Question: What is the growth outlook for top-line revenues? - Management expects mid to high single-digit sequential growth in the VA channel, potentially accelerating into the teens as new products are introduced [48] Question: How is the company expanding its sales efforts in the VA hospital system? - The company is adding headcount to its sales function to increase support in the VA hospital system, with a focus on new products [50][52] Question: What are the early results from selling TRUVEGA on Amazon? - Initial sales through Amazon have been promising, with a few hundred units sold, and the company is optimistic about future growth [56][57]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) The company's financial information details its balance sheet, income statement, cash flows, and related notes [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company reported total assets of **$16.0 million** as of March 31, 2025, with net sales growing to **$6.7 million** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$16.0 million** as of March 31, 2025, primarily due to a reduction in marketable securities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,777 | $3,450 | | Marketable securities | $3,982 | $8,519 | | Total current assets | $11,972 | $16,300 | | **Total assets** | **$16,041** | **$20,471** | | **Liabilities & Equity** | | | | Total current liabilities | $7,856 | $9,152 | | **Total liabilities** | **$11,676** | **$12,927** | | **Total stockholders' equity** | **$4,365** | **$7,544** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased by **23.4%** to **$6.7 million** in Q1 2025, but the net loss widened to **$3.9 million** Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $6,719 | $5,443 | | Gross profit | $5,706 | $4,555 | | Total operating expenses | $9,528 | $8,404 | | Loss from operations | $(3,822) | $(3,849) | | **Net loss** | **$(3,855)** | **$(3,506)** | | Net loss per share | $(0.47) | $(0.53) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to **$4.4 million** in Q1 2025, with cash, cash equivalents, and restricted cash ending at **$4.0 million** Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,355) | $(2,558) | | Net cash provided by (used in) investing activities | $4,500 | $0 | | Net cash provided by financing activities | $180 | $0 | | **Net (de)increase in cash** | **$327** | **$(2,482)** | | Cash, cash equivalents, and restricted cash – end of period | $4,027 | $8,099 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes highlight liquidity challenges, revenue concentration with the VA, and the acquisition of NeuroMetrix, Inc - The company has a history of significant net losses and negative cash flow from operations, funding its activities primarily through the sale of securities[37](index=37&type=chunk)[38](index=38&type=chunk) Management believes its current cash position and expected cash flow will be sufficient for at least the next 12 months[41](index=41&type=chunk) - Revenue is heavily concentrated, with sales to the U.S. Department of Veterans Affairs (VA) and Department of Defense accounting for **70.3%** of net sales in Q1 2025 and **71.2%** in Q1 2024[42](index=42&type=chunk) Net Sales Disaggregation for Q1 (in thousands) | Channel/Market | 2025 | 2024 | | :--- | :--- | :--- | | **By Channel** | | | | Rx gammaCore – VA | $4,721 | $3,875 | | Truvaga | $1,106 | $385 | | **By Geography** | | | | United States | $6,206 | $4,994 | | United Kingdom | $451 | $385 | | **Total Net Sales** | **$6,719** | **$5,443** | - On May 1, 2025, the company completed its acquisition of NeuroMetrix, Inc. (NURO), which will now operate as a wholly-owned subsidiary[76](index=76&type=chunk)[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **23%** year-over-year revenue growth to increased sales of Rx gammaCore and Truvaga, while managing liquidity challenges [Overview](index=25&type=section&id=Overview) electroCore focuses on non-invasive vagus nerve stimulation (nVNS) technology, with key products gammaCore and Truvaga, and recently acquired NeuroMetrix - The company's business is centered on its proprietary non-invasive vagus nerve stimulation (nVNS) technology[91](index=91&type=chunk) - Key product categories include: - **gammaCore:** A prescription device for primary headache conditions - **Truvaga:** A direct-to-consumer general wellness product - **TAC-STIM:** A human performance product developed with the U.S. Department of Defense[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - The two largest customers are the U.S. VA (**70.3%** of revenue in Q1 2025) and the UK NHS (**5.3%** of revenue in Q1 2025)[99](index=99&type=chunk)[100](index=100&type=chunk)[103](index=103&type=chunk) - The company acquired NeuroMetrix, Inc. (NURO) on May 1, 2025, to add the Quell® platform for fibromyalgia and chronic pain to its portfolio[105](index=105&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Net sales increased by **$1.3 million (23%)** in Q1 2025, driven by higher Rx gammaCore and Truvaga sales, with gross margin stable at **85%** - Net sales for Q1 2025 increased **23%** YoY, primarily due to a **$0.8 million** increase in Rx gammaCore sales to the VA and a **$0.7 million** increase in Truvaga sales[114](index=114&type=chunk)[115](index=115&type=chunk) - Gross margin remained strong and consistent at **85%** in Q1 2025, compared to **84%** in Q1 2024, reflecting favorable product mix and increased sales[116](index=116&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **11%** YoY to **$8.9 million**, driven by targeted investments in sales and marketing to support commercial efforts[118](index=118&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company relies on securities sales and an ATM facility for funding, holding **$8.0 million** in cash and marketable securities as of March 31, 2025 - The company's cash, cash equivalents, restricted cash, and marketable securities totaled **$8.0 million** as of March 31, 2025[126](index=126&type=chunk) - The company relies on an At-The-Market (ATM) facility to sell common stock for funding During Q1 2025, it raised approximately **$0.2 million** in net proceeds from this facility[127](index=127&type=chunk) - Management believes its current cash position and expected cash flow from operations will be sufficient to fund operating expenses and capital requirements for at least the next 12 months from the issuance date of the financial statements[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency and interest rate risks but does not currently use hedging instruments - The company has foreign currency exchange risk related to sales denominated in British Pound Sterling and license revenue in Japanese Yen[130](index=130&type=chunk) - Interest rate risk is limited to the company's portfolio of cash, cash equivalents, and short-term marketable securities, and is considered minimal[132](index=132&type=chunk) - The company does not currently hedge its foreign currency or interest rate exposure[132](index=132&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[135](index=135&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[136](index=136&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company states that it is not currently a party to any legal proceedings that would have a material adverse effect on its financial condition or results of operations - The company believes there are no current legal proceedings or claims pending that would have a material adverse effect on its financial condition or operations This information is incorporated by reference from Note 14 of the financial statements[70](index=70&type=chunk)[138](index=138&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section directs investors to the risk factors previously disclosed in the company's Annual Report on Form 10-K - The company refers readers to the risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2024[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[140](index=140&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company disclosed that no director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements during the first quarter of 2025[145](index=145&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data files - The report includes a list of filed exhibits, primarily consisting of CEO and CFO certifications as required by the Sarbanes-Oxley Act and XBRL data files[147](index=147&type=chunk)