femasys(FEMY) - 2025 Q1 - Quarterly Report

Financial Performance - Sales for the three months ended March 31, 2025, were $341,264, an increase of 26% compared to $271,140 for the same period in 2024[18] - Net loss for the three months ended March 31, 2025, was $5.90 million, compared to a net loss of $3.60 million in the same period last year, reflecting a 63.9% increase in losses[18] - For the three months ended March 31, 2025, the company reported a net loss of $5,896,839, compared to a net loss of $3,599,510 for the same period in 2024, indicating an increase in losses[34] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $5,896,839, compared to a net loss of $3,599,510 for the same period in 2024, representing an increase of 63.8%[76] Assets and Liabilities - Total assets increased to $13.28 million as of March 31, 2025, up from $12.45 million at the end of 2024, representing a growth of 6.7%[14] - Cash and cash equivalents increased to $3.82 million as of March 31, 2025, from $3.45 million at the end of 2024, marking a 10.7% increase[14] - Total current liabilities rose to $9.84 million as of March 31, 2025, compared to $8.58 million at the end of 2024, an increase of 14.7%[16] - The accumulated deficit increased to $133.10 million as of March 31, 2025, from $127.20 million at the end of 2024, indicating a rise of 4.6%[16] Operating Expenses - Operating expenses totaled $5.68 million for Q1 2025, up 55.9% from $3.65 million in Q1 2024[18] - The total operating expenses for the three months ended March 31, 2025, were $5,684,605, up from $3,645,250 in the same period of 2024[80] - Research and development expenses rose to $2.97 million in Q1 2025, up 67.5% from $1.77 million in Q1 2024[18] - The company recognized total research and development expenses of $2,968,472 for the three months ended March 31, 2025, compared to $1,770,731 for the same period in 2024, reflecting a significant increase of 67.5%[80] Cash Flow - The company generated net cash used in operating activities of $4,765,214 for the three months ended March 31, 2025, compared to $4,568,124 for the same period in 2024[34] - The company raised $5,392,027 from at-the-market sales of common stock during the three months ended March 31, 2025, significantly higher than $802,242 in the same period of 2024[34] Stock and Financing - The company issued 3,731,960 shares of common stock in connection with an at-the-market offering, raising approximately $5.22 million[21] - The Company issued senior unsecured convertible notes totaling $6,850,000, convertible at a price of $1.18 per share, along with Series A and B Warrants to purchase up to 5,805,083 shares at exercise prices of $1.18 and $1.475 respectively[53] - The Series A Warrants allow for the purchase of up to 5,805,083 shares of common stock at an exercise price of $1.18 per share, expiring five years from the date of issuance[56] - The Company sold approximately 3.7 million shares of common stock for aggregate proceeds of approximately $5.4 million during the quarter ended March 31, 2025[61] Inventory and Assets - Inventory increased to $3,862,188 as of March 31, 2025, from $3,046,323 as of December 31, 2024, reflecting a growth in materials and finished goods[45] - As of March 31, 2025, the Company had 27,087,886 shares of common stock outstanding, with no dividends declared or paid[62] Future Outlook - The company anticipates continued growth in sales and market acceptance of its products, including FemBloc® and FemaSeed®[10] - The pivotal clinical trial for FemBloc is currently enrolling participants for U.S. approval, highlighting ongoing product development efforts[28] - The company plans to finance its operations through existing cash, equity, debt financing, and anticipated revenue from domestic and international sales of its products[33] - The company has an accumulated deficit of $133,095,096 as of March 31, 2025, and expects to incur additional losses and negative operating cash flows for at least the next twelve months[35] Regulatory and Market Developments - The company announced CE mark certification for the FemBloc delivery system in March 2025, marking a significant regulatory milestone for its non-surgical permanent birth control product[28] - Strategic distribution partnerships for FemBloc were announced in Spain in March 2025, indicating market expansion efforts[28] Interest and Tax - For the three months ended March 31, 2025, the Company recognized total interest expense of $459,449, an increase from $361,522 for the same period in 2024[59] - The effective tax rate for the three months ended March 31, 2025, was 0%, consistent with the previous year, due to the company remaining in a full valuation allowance position[77] Share-Based Compensation - The total share-based compensation expense for the three months ended March 31, 2025, was $367,237, significantly higher than $77,585 for the same period in 2024[71] - The company has a remaining share-based compensation expense of $2,034,357 expected to be recognized in future periods[71]