PART I – FINANCIAL INFORMATION Financial Statements Q1 2025 saw no revenue, a $3.5 million net loss (up from $2.1 million), but cash rose to $11.3 million from $7.0 million due to $7.1 million in financing Condensed Consolidated Balance Sheets Total assets increased to $12.4 million as of March 31, 2025, primarily due to a significant rise in cash from financing, with equity growing to $11.5 million Condensed Consolidated Balance Sheets (Unaudited) | | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $11,317,365 | $7,038,923 | | Total Current Assets | $12,293,890 | $7,644,871 | | Total Assets | $12,355,218 | $7,712,765 | | Liabilities & Equity | | | | Total Liabilities | $815,299 | $833,906 | | Total Stockholders' Equity | $11,539,919 | $6,878,859 | Condensed Consolidated Statements of Operations and Comprehensive Loss Q1 2025 saw no revenue and a $3.5 million net loss, up from $2.1 million in Q1 2024, mainly due to R&D expenses rising to $2.0 million Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net Revenues | $0 | $0 | | Research and development expense | $1,958,602 | $571,642 | | General and administrative expenses | $1,517,415 | $1,588,262 | | Loss from Operations | ($3,476,017) | ($2,159,904) | | Net Loss | ($3,475,836) | ($2,146,529) | | Net Loss Per Common Share (Basic and diluted) | ($0.27) | ($0.49) | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity increased from $6.9 million to $11.5 million in Q1 2025, driven by $5.6 million from warrant exercises and $1.4 million from stock sales, offset by a $3.5 million net loss - Key activities impacting stockholders' equity in Q1 2025 included: - Common shares issued for exercise of warrants: $5,625,000 - Common stock issued for cash, net: $1,441,964 - Common stock issued for patent: $850,500 - Net loss: ($3,475,836) Condensed Consolidated Statements of Cash Flows Q1 2025 net cash used in operations was $2.8 million, offset by $7.1 million from financing (warrant exercises, stock issuance), resulting in a $4.3 million net cash increase Condensed Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($2,788,025) | ($1,723,956) | | Net Cash Provided by Financing Activities | $7,066,964 | $0 | | Net Increase (Decrease) in Cash | $4,278,939 | ($1,723,956) | | Cash and Cash Equivalents - End of Period | $11,317,365 | $7,562,628 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail the biopharmaceutical business, confirm $11.3 million cash for 12 months, and highlight $1.25 million R&D for a patent, $5.6 million from warrants, and $1.4 million from an ATM offering - The company is a clinical-stage biopharmaceutical company focused on developing therapies for unmet medical needs, including treatments for cancer side effects (HT-001), mast-cell derived cancers (HT-KIT), and Alzheimer's disease (HT-ALZ)24 - As of March 31, 2025, the company had an accumulated deficit of $63.9 million and cash of $11.3 million; management believes current cash is sufficient for at least the next 12 months but will need additional capital for longer-term plans2627 - On January 13, 2025, the company acquired patent applications for $400,000 in cash and 450,000 shares of common stock valued at $850,500, resulting in a total R&D expense of $1,250,500 for the acquisition6870 - In Q1 2025, the company raised $5,625,000 from the exercise of 3,750,000 warrants and an additional $1,441,964 in net proceeds from the sale of 927,968 shares through its At-The-Market (ATM) offering agreement909294 Management's Discussion and Analysis of Financial Condition and Results of Operations Q1 2025 net loss increased to $3.5 million due to $2.0 million in R&D expenses, while G&A decreased, and cash improved to $11.3 million from $7.1 million in financing, sufficient for 12 months - Research and development expenses increased to approximately $2.0 million in Q1 2025 from $0.6 million in Q1 2024, primarily due to a $1.3 million expense for patent application acquisition and $0.5 million for HT-001 program activities117118 - General and administrative expenses decreased by approximately $71,000 (4.5%) to $1.5 million in Q1 2025, mainly due to a $293,000 decrease in stock-based compensation, partially offset by other increases119121 - The company's cash position increased to $11.3 million as of March 31, 2025, which management believes is sufficient to fund operations for at least the next 12 months125 - Net cash provided by financing activities in Q1 2025 was approximately $7.1 million, consisting of $5.6 million from warrant exercises and $1.4 million in net proceeds from an ATM agreement135 Quantitative and Qualitative Disclosures About Market Risk As a "smaller reporting company," Hoth Therapeutics is exempt from providing market risk disclosures - As a "smaller reporting company," Hoth Therapeutics is exempt from the requirement to provide disclosures about market risk150 Controls and Procedures Disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in internal control over financial reporting related to expense classification, with remediation underway - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025152 - The ineffectiveness is due to a material weakness identified in the audit of the 2024 financial statements, related to the classification of prepaid expenses and R&D expenses153 - A remediation plan is underway, which includes enhancing review procedures for significant contracts and strengthening the overall review process154156 PART II – OTHER INFORMATION Legal Proceedings The company reports no material legal proceedings and is unaware of any pending or threatened actions - The company reports no material legal proceedings158 Risk Factors No material changes in risk factors have occurred since the filing of the Annual Report on Form 10-K for fiscal year 2024 - No material changes in risk factors have occurred since the filing of the Annual Report on Form 10-K for the fiscal year 2024159 Unregistered Sales of Equity Securities and Use of Proceeds The company issued 450,000 unregistered shares of common stock on January 13, 2025, for a patent acquisition, relying on Section 4(a)(2) exemption - The company issued 450,000 unregistered shares of common stock on January 13, 2025, to acquire patent applications160 Defaults Upon Senior Securities The company reports no defaults upon senior securities - None161 Other Information No directors or executive officers adopted or terminated Rule 10b5-1 trading plans, and Chris Camarra was appointed to the Board on May 8, 2025 - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter ended March 31, 2025162 - On May 8, 2025, Chris Camarra was appointed to the Board of Directors and its key committees162 Exhibits This section lists exhibits filed with Form 10-Q, including an agreement with OnTargetx R&D Inc., certifications, and Inline XBRL data
Hoth Therapeutics(HOTH) - 2025 Q1 - Quarterly Report