Cingulate(US:CING)2025-05-08 20:40Financial Performance - The net loss for the three months ended March 31, 2025, was $3,802,691, compared to a net loss of $2,972,477 for the same period in 2024, indicating an increase in loss of 27.77%[14] - The operating loss for the three months ended March 31, 2025, was $3,706,035, compared to an operating loss of $2,948,217 for the same period in 2024, reflecting a 25.6% increase in losses[30] - For the three months ended March 31, 2025, Cingulate Inc. reported a net loss of $3,802,691, compared to a net loss of $2,972,477 for the same period in 2024, representing an increase of approximately 27.8% in losses year-over-year[18] Research and Development - Research and development expenses increased to $2,222,626 for the three months ended March 31, 2025, up from $1,806,985 for the same period in 2024, reflecting a growth of 23.05%[14] - Total research and development expenses for the three months ended March 31, 2025, were $2,222,626, an increase of 23% compared to $1,806,985 for the same period in 2024[30] - Cingulate is developing two proprietary stimulant medications, CTx-1301 and CTx-1302, aimed at treating ADHD across all patient segments[20] - The company received a grant of $3 million to support the clinical and manufacturing development of CTx-2103, with the first payment expected in May 2025[65] - The company plans to pay a royalty of $500,000 per quarter contingent on the commercialization of CTx-2103, with a maximum cumulative payout of $3.5 million[65] Cash Flow and Liquidity - Cash and cash equivalents decreased from $12,211,321 at the beginning of the year to $9,518,966 at the end of the period, a reduction of 22.06%[18] - The company reported a net cash used in operating activities of $4,608,282 for the three months ended March 31, 2025, compared to $8,746,360 for the same period in 2024, showing a decrease of 47.38%[18] - As of March 31, 2025, Cingulate Inc. had cash and cash equivalents of approximately $9.5 million and an accumulated deficit of approximately $112.3 million[22] - The accumulated deficit as of March 31, 2025, was approximately $112.3 million, compared to $108.5 million at the beginning of the year, showing an increase of about 3.3%[22] Shareholder Equity and Stock Activity - The total stockholders' equity decreased from $7,455,505 as of December 31, 2024, to $5,930,820 as of March 31, 2025, a decline of approximately 20.49%[12] - The weighted average number of shares used in computing net loss per share increased significantly from 412,126 in Q1 2024 to 3,646,893 in Q1 2025, indicating a substantial dilution[14] - The Company has authorized 240,000,000 shares of common stock, with 3,826,199 shares issued and outstanding as of March 31, 2025[42] - The Company sold 200,484 shares of common stock under the At-the-Market Agreement for net proceeds of $1,020,368 during the three months ended March 31, 2025[48] - The Company sold 223,409 shares of common stock under the Lincoln Park Purchase Agreement for net proceeds of $899,989 during the three months ended March 31, 2025[50] Liabilities and Debt - The total liabilities decreased from $7,408,984 as of December 31, 2024, to $6,538,768 as of March 31, 2025, a decrease of approximately 11.73%[12] - As of March 31, 2025, the outstanding principal balance of the Promissory Note plus accrued interest was $5,620,114[41] - The Company issued an unsecured promissory note for $5,480,000 on December 20, 2024, with a 9% annual interest rate, maturing 18 months after issuance[37] - The Company incurred $46,277 of debt issuance costs, with a total unamortized debt discount and debt issuance costs of $431,366 as of March 31, 2025[40] General and Administrative Expenses - Cingulate's total general and administrative expenses for the three months ended March 31, 2025, were $1,483,409, up from $1,141,232 in the same period in 2024, representing a 30% increase[30] - The Company implemented salary reductions in December 2023, with a contingent bonus plan estimated at $722,824 that may become due in the future[36] Tax and Valuation - The company has a valuation allowance for deferred tax assets totaling $18,423,145 as of March 31, 2025, compared to $17,405,569 at December 31, 2024, indicating an increase of approximately 6%[12] - The company has not identified any material uncertain tax positions requiring recognition in the consolidated financial statements as of March 31, 2025[63] Future Funding Strategies - The Company is evaluating various strategies to obtain additional funding, which may include equity offerings or collaborations with other companies[22] - Cingulate Inc. is evaluating various strategies for additional funding, including equity offerings and potential collaborations, to support operations and product development[22]