Allarity Therapeutics(US:ALLR)2025-05-09 20:11PART I—FINANCIAL INFORMATION Financial Statements This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, detailing balance sheets, statements of operations, and cash flows, reporting a $2.7 million net loss and $27.7 million in cash, cash equivalents, and restricted cash, with all share data adjusted for prior reverse stock splits Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 25,201 | 19,533 | | Restricted cash | 2,503 | — | | Total current assets | 29,422 | 22,341 | | Total assets | 29,730 | 22,650 | | Liabilities & Equity | | | | Total current liabilities | 11,061 | 10,839 | | Total liabilities | 11,061 | 10,839 | | Total stockholders' equity | 18,669 | 11,811 | | Total liabilities and stockholders' equity | 29,730 | 22,650 | Condensed Consolidated Statements of Operations (Unaudited) | Account | Three Months Ended March 31, 2025 ($ in thousands) | Three Months Ended March 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Research and development | 1,403 | 2,170 | | General and administrative | 1,633 | 2,070 | | Loss from operations | (3,036) | (4,240) | | Net loss | (2,732) | (3,843) | | Net loss per common share, basic and diluted | (0.25) | (664.16) | Condensed Consolidated Statements of Cash Flows (Unaudited) | Activity | Three Months Ended March 31, 2025 ($ in thousands) | Three Months Ended March 31, 2024 ($ in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (2,686) | (1,399) | | Net cash provided by financing activities | 11,143 | 1,380 | | Effect of exchange rate changes on cash | (286) | 165 | | Net increase in cash, cash equivalents and restricted cash | 8,457 | (19) | - The company effected a 1-for-20 reverse stock split on April 9, 2024, and a 1-for-30 reverse stock split on September 11, 2024, with all historical share and per-share amounts retroactively adjusted to reflect these splits726 - As of March 31, 2025, the company had an accumulated deficit of $121.7 million, and management believes its existing cash of $27.7 million is sufficient to fund operations for at least the next 12 months from the financial statement issuance date24 Management's Discussion and Analysis of Financial Condition and Results of Operations Management analyzes Q1 2025 financial results, noting decreased operating expenses and net loss due to reduced R&D and G&A, successful $9.7 million ATM facility utilization, a $2.5 million SEC settlement, and sufficient cash reserves for the next twelve months Comparison of Operations for the Three Months Ended March 31 | ($ in thousands) | 2025 | 2024 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Research and development | $1,403 | $2,170 | $(767) | | General and administrative | $1,633 | $2,070 | $(437) | | Total operating expenses | $3,036 | $4,240 | $(1,204) | | Net loss | $(2,732) | $(3,843) | $1,111 | - Research and development expenses decreased by $0.8 million, mainly due to a $1.0 million reduction in manufacturing and supplies, partially offset by a $0.4 million increase in staffing costs88 - General and administrative expenses decreased by $0.4 million, primarily due to a $0.5 million decrease in professional services89 - In Q1 2025, the company sold 9,719,173 shares of common stock under its At-The-Market (ATM) Sales Agreement, generating net proceeds of approximately $9.7 million, and the agreement has since been fully utilized and terminated7494 - The company reached a final settlement with the SEC regarding a previously disclosed investigation and agreed to pay a one-time civil penalty of $2.5 million, with the payment made on April 2, 20257568 - As of March 31, 2025, the company had $27.7 million in cash, cash equivalents, and restricted cash, which management believes is sufficient to fund operations for at least the next 12 months9294 Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company under Rule 12b-2 of the Exchange Act, the company is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, Allarity Therapeutics is not required to provide the information under this item106 Controls and Procedures Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025107 - 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 controls108 PART II—OTHER INFORMATION Legal Proceedings This section details the company's legal matters, including a $2.5 million SEC investigation settlement and the dismissal of a class-action lawsuit in February 2025 - The company settled with the SEC and agreed to pay a one-time civil penalty of $2.5 million, which was paid on April 2, 202568110 - A class action lawsuit filed against the company and certain officers on September 13, 2024, was dismissed on February 26, 202569 Risk Factors The company reports no material changes to previously disclosed risk factors from its Form 10-K, but adds a new risk concerning potential adverse effects of tariffs, trade sanctions, and government actions on global economic conditions and business operations - There are no material changes to the risk factors from the Annual Report on Form 10-K for the year ended December 31, 2024111 - A new risk is disclosed regarding the potential adverse effects of tariffs, trade sanctions, or similar government actions, which could depress economic activity and restrict access to potential partners and suppliers112 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the reporting period - The company reported 'None' for this item, indicating no unregistered sales of equity securities113 Defaults Upon Senior Securities This item is reported as not applicable to the company - The company reported 'Not applicable' for this item114 Mine Safety Disclosures This item is reported as not applicable to the company - The company reported 'Not applicable' for this item115 Other Information The company confirms no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025116 Exhibits This section lists exhibits filed with the quarterly report, including corporate governance documents, CEO and CFO certifications, and Inline XBRL financial data files - The report includes certifications from the CEO and CFO under Section 302 of the Sarbanes-Oxley Act119 - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, and Presentation) are filed as exhibits119120