NRX Pharmaceuticals(US:NRXP)2025-05-15 21:01PART I - FINANCIAL INFORMATION Financial Statements The company reported a reduced net loss but faces a significant working capital deficit and going concern risk Condensed Consolidated Balance Sheet Data (in thousands) | | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $5,548 | $1,443 | | Total current assets | $7,256 | $3,302 | | Total assets | $7,590 | $3,651 | | Liabilities and Stockholders' Deficit | | | | Total current liabilities | $32,751 | $21,863 | | Total liabilities | $32,751 | $26,874 | | Total stockholders' deficit | $(25,161) | $(23,223) | Condensed Consolidated Statements of Operations (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Total operating expenses | $3,847 | $5,998 | | Loss from operations | $(3,847) | $(5,998) | | Net loss | $(5,512) | $(6,528) | | Net loss per share (Basic and diluted) | $(0.34) | $(0.74) | Condensed Consolidated Statements of Cash Flows (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,480) | $(3,671) | | Net cash used in investing activities | $0 | $0 | | Net cash provided by financing activities | $7,585 | $395 | | Net increase (decrease) in cash | $4,105 | $(3,276) | - The company has concluded that substantial doubt exists regarding its ability to continue as a going concern due to a history of net losses, negative cash flows, and a working capital deficit2426 Notes to Unaudited Condensed Consolidated Financial Statements The notes detail drug development progress, financing activities, and strategic acquisitions for its clinic network - The company's lead drug candidates, NRX-101 and NRX-100, are expected to be submitted for FDA approval in Q2 2025, while its subsidiary HOPE Therapeutics aims to generate revenue2123 - The Alvogen License Agreement was terminated, resulting in an outstanding refund liability of $4.7 million due to Alvogen as of March 31, 20256566 - The company secured approximately $15.0 million in gross proceeds from Senior Secured Convertible Promissory Notes, with the final $5.4 million tranche closing in January 20252583 - A Registered Direct Offering in January 2025 generated net proceeds of approximately $3.255 million from the sale of common stock and warrants105 - Post-quarter, subsidiary HOPE Therapeutics entered an agreement with Kadima Neuropsychiatry Institute to develop a national network of precision psychiatry clinics166 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses the strategic shift to a revenue model, positive trial data, and reduced operating expenses - The company is transitioning from a pre-revenue biotech to a revenue-generating enterprise through its new subsidiary, HOPE Therapeutics173 - Final data from the Phase 2b/3 trial of NRX-101 showed a statistically significant reduction in akathisia (P=0.025), supporting a planned NDA submission based on this safety benefit176178179 - HOPE Therapeutics has signed definitive agreements to acquire Kadima Neuropsychiatry Institute and Dura Medical, forming the foundation of a planned national clinic network174175196 - R&D expenses decreased by $0.9 million and G&A expenses decreased by $1.3 million, driven by the conclusion of a phase 2 study and lower consultant fees201202 - The company secured significant capital through a $5.4 million convertible note tranche and a $3.5 million registered direct offering in Q1 2025190 Results of Operations Comparison (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | Change ($) | | :--- | :--- | :--- | :--- | | Research and development | $804 | $1,748 | $(944) | | General and administrative | $2,943 | $4,250 | $(1,307) | | Total operating expense | $3,847 | $5,998 | $(2,151) | | Net loss | $(5,512) | $(6,528) | $1,016 | Quantitative and Qualitative Disclosures About Market Risk The company is exempt from market risk disclosures as a smaller reporting company - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a smaller reporting company243 Controls and Procedures Management concluded that disclosure controls and procedures were effective with no material changes during the quarter - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective246 - No material changes occurred in the company's internal controls over financial reporting during the first quarter of 2025247 PART II - OTHER INFORMATION Legal Proceedings The company reports no material legal proceedings that would adversely affect its financial position - The company is not involved in any legal proceedings that it believes could have a material adverse effect on its financial position or results of operations96249 Risk Factors No material changes to risk factors were reported since the last Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the company's Annual Report on Form 10-K filed on March 14, 2025250 Unregistered Sales of Equity Securities and Use of Proceeds No previously unreported unregistered sales of equity securities occurred during the first quarter of 2025 - There were no unregistered sales of equity securities during the three months ended March 31, 2025, that were not already reported251 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025254 Exhibits This section lists all exhibits filed with the Form 10-Q, including agreements and certifications