iBio(IBIO) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements iBio, Inc.'s March 31, 2025, financial statements reflect significant losses, negative cash flows, and a 'Going Concern' warning Condensed Consolidated Balance Sheets Total assets decreased to $19.1 million by March 31, 2025, from $28.7 million at June 30, 2024, reflecting reduced cash and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $4,959 | $14,210 | | Total Current Assets | $6,060 | $15,672 | | Total Assets | $19,103 | $28,734 | | Liabilities & Equity | | | | Total Current Liabilities | $5,397 | $3,840 | | Total Liabilities | $7,722 | $7,410 | | Total Stockholders' Equity | $11,381 | $21,324 | Condensed Consolidated Statements of Operations Net loss from continuing operations increased to $4.9 million for Q3 2025 and $13.2 million for the nine months, driven by higher R&D Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $0 | $0 | $200 | $50 | | Research and development | $1,906 | $904 | $5,088 | $4,045 | | General and administrative | $2,973 | $2,722 | $8,516 | $9,230 | | Operating loss | $(4,879) | $(3,626) | $(13,404) | $(13,225) | | Net loss from continuing operations | $(4,861) | $(2,635) | $(13,214) | $(12,197) | | Loss per share (continuing ops) | $(0.49) | $(0.71) | $(1.44) | $(5.43) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased from $21.3 million to $11.4 million due to a $13.2 million net loss, partially offset by capital raises - The accumulated deficit increased from $(313.8) million to $(327.1) million during the nine months ended March 31, 2025, due to ongoing net losses[13] - The company issued common stock and received proceeds from stock option exercises, which increased additional paid-in capital from $335.2 million to $338.4 million over the nine-month period[13] Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $10.7 million for the nine months ended March 31, 2025, resulting in a $9.2 million overall decrease in cash Cash Flow Summary (Nine Months Ended March 31, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(10,689) | $(13,700) | | Net cash provided by investing activities | $697 | $1,050 | | Net cash provided by financing activities | $749 | $11,502 | | Net decrease in cash | $(9,243) | $(1,148) | Notes to the Condensed Consolidated Financial Statements Notes detail the company's AI-enabled biotech transformation, 'Going Concern' warning, and significant financing activities - The company is a preclinical biotechnology company using AI and Machine Learning for developing antibodies, focusing on obesity, cardiometabolic diseases, and immune-oncology[24][31] - Management has concluded there is substantial doubt about the Company's ability to continue as a going concern due to a history of significant losses, negative cash flows, and limited cash resources[41] - On December 31, 2024, the company entered an exclusive license agreement with AstralBio for a myostatin antibody (IBIO-600), paying the $750,000 upfront fee by issuing 246,087 shares of common stock[106][107] - Subsequent to the quarter end, on April 29, 2025, the company raised approximately $6.2 million in gross proceeds through a warrant inducement agreement, exercising 5.6 million existing warrants at a reduced price and issuing new warrants[254] Management's Discussion and Analysis of Financial Condition and Results of Operations MD&A discusses the company's strategic shift to AI-driven antibody discovery, reiterates 'going concern' doubt, and details capital-raising efforts and operating expenses - The company's strategy is to leverage its AI platform for in-house programs, strategic collaborations, and technology licensing to create value[263][266] - The company's pipeline is focused on two main areas: Obesity/Cardiometabolic Diseases (IBIO-600, Activin A, Activin E) and Immuno-Oncology (IBIO-101, TROP-2xCD3, MUC16xCD3, etc.)[290][304] - A 'Going Concern' issue is highlighted, with cash as of May 1, 2025 (approx. $10.5 million) sufficient only through the end of Q1 fiscal 2026 without further capital[331][338] Comparison of Operating Expenses (Three Months Ended March 31) | Expense (in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Research & Development | $1.9 | $0.9 | +$1.0 | | General & Administrative | $3.0 | $2.7 | +$0.3 | Comparison of Operating Expenses (Nine Months Ended March 31) | Expense (in millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Research & Development | $5.1 | $4.0 | +$1.1 | | General & Administrative | $8.5 | $9.2 | -$0.7 | Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, iBio, Inc. is not required to provide market risk disclosures - The company is a smaller reporting company and is not required to provide the information required by Item 3[368] Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[370] - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[371] PART II. OTHER INFORMATION Legal Proceedings The company is not currently subject to any material legal proceedings, though ordinary course claims may arise - iBio is not currently subject to any material legal proceedings[372] Risk Factors Significant risks include 'going concern' doubt, dependence on capital raises, potential stockholder dilution, and Nasdaq delisting risk - There is substantial doubt about the company's ability to operate as a going concern beyond the first quarter of fiscal year 2026 without raising additional capital[378][379] - The company has a history of significant losses, with an accumulated deficit of $327.1 million as of March 31, 2025, and expects to incur further losses[383] - Future capital raises and the exercise of outstanding warrants will cause substantial dilution to existing stockholders[390] - Failure to comply with Nasdaq's continued listing standards could result in the delisting of the company's common stock[393] Unregistered Sales of Equity Securities and Use of Proceeds During Q3 FY2025, the company issued unregistered securities, including stock options to a vendor and shares to AstralBio as part of a license agreement - Issued an option to a professional service vendor to purchase 20,000 shares of Common Stock at an exercise price of $1.83 per share[395] - Issued 246,087 shares of Common Stock to AstralBio on January 28, 2025, pursuant to the Myostatin License Agreement[396] Defaults Upon Senior Securities This section is not applicable to the company Mine Safety Disclosures This section is not applicable to the company Other Information This section details a significant post-period financing event on April 29, 2025, involving a warrant inducement agreement that generated $6.2 million in gross proceeds - On April 29, 2025, the company entered into an Inducement Agreement to encourage the exercise of existing warrants[401] - The agreement resulted in the cash exercise of warrants for 5,626,685 shares at a reduced price of $0.86 per share, generating gross proceeds of approximately $6.2 million[401] - In consideration, the company issued new 'Inducement Warrants' to purchase up to 11,253,370 shares at an exercise price of $0.86 per share[401][402] Exhibits This section lists exhibits filed with the quarterly report, including corporate governance documents, material agreements, and CEO/CFO certifications