Financial Performance - Total revenue for Q1 2025 was $101,630, a decrease of 85.5% compared to $700,433 in Q1 2024[17] - Gross profit for Q1 2025 was $45,832, down 75.7% from $189,000 in Q1 2024[17] - Net loss for Q1 2025 was $8,545,885, compared to a net loss of $11,118,572 in Q1 2024, representing a 23.1% improvement[17] - Operating expenses for Q1 2025 totaled $12,616,661, an increase from $11,270,990 in Q1 2024[17] - The company reported a basic and diluted net loss per share of $0.53 for Q1 2025, compared to $20.08 for Q1 2024[17] - Revenue for the three months ended March 31, 2025, was approximately $0.1 million, a decrease from $0.7 million for the same period in 2024[54] - Product sales accounted for 93% of total revenue in the three months ended March 31, 2025, while development services accounted for 100% of revenue[54] Assets and Liabilities - Total current assets increased to $2,420,589 as of March 31, 2025, from $950,267 as of December 31, 2024, a growth of 154.5%[15] - Total liabilities decreased to $14,258,469 as of March 31, 2025, down 23.5% from $18,571,008 as of December 31, 2024[15] - Goodwill decreased significantly to $16,209,509 as of March 31, 2025, from $27,048,973 as of December 31, 2024, a reduction of 40.2%[15] - Cash and cash equivalents increased to $1,577,193 as of March 31, 2025, from $646,500 as of December 31, 2024, a rise of 144.5%[15] - Total stockholders' equity decreased to $3,992,793 as of March 31, 2025, from $8,542,627 as of December 31, 2024, a decline of 53.3%[15] - As of March 31, 2025, Onconetix had cash of approximately $1.6 million and a working capital deficit of approximately $11.6 million, with an accumulated deficit of approximately $125.4 million[35] Impairment and Expenses - The company incurred a loss on impairment of goodwill amounting to $10,918,000 for the three months ended March 31, 2025, compared to $5,192,000 in the prior year, indicating a 110% increase in impairment losses[23] - The company recognized goodwill impairment losses of approximately $10.9 million for the three months ended March 31, 2025, compared to $5.2 million for the same period in 2024[65] - The company recorded full impairments of intangible assets acquired from the acquisitions of Proteomedix and ENTADFI, resulting in a zero balance as of March 31, 2025[60] - The company incurred net periodic benefit costs of $16,134 for the three months ended March 31, 2025, compared to a net periodic benefit cost of $(6,733) for the same period in 2024[169] Capital Structure and Financing - The company redeemed Series C preferred stock amounting to approximately $1.71 million in 2025, indicating ongoing efforts to manage its capital structure[35] - The company has two non-interest-bearing notes payable of $5.0 million each, with maturity dates of April 19, 2024, and September 30, 2024[75] - A non-convertible debenture of $5.0 million was issued to a related party with an interest rate of 4.0% per annum, originally payable by June 30, 2024[91] - The maturity date of the related party debenture was extended to October 31, 2024, with no other terms modified[92] - The Company issued a promissory note to Keystone Capital Partners, LLC with an aggregate principal amount of $117,647.06, due by November 12, 2025[100] - The Company raised $2,000,000 from the sale of 3,499 Series C Preferred Stock and warrants to purchase 591,856 shares of common stock on October 2, 2024[121] - The Company received approximately $4.8 million under the Equity Line of Credit (ELOC) during the three months ended March 31, 2025[125] Business Operations and Strategy - Onconetix acquired Proteomedix AG on December 15, 2023, enhancing its capabilities in prostate cancer diagnosis with the Proclarix diagnostic product[26] - The company has abandoned the commercialization of ENTADFI due to insufficient resources and is exploring options for the sale of ENTADFI assets[28] - Management plans to generate product revenue from Proclarix and seeks additional funding through equity or debt financing to support ongoing operations[36] - The company is focusing on the commercialization of Proclarix, an in vitro diagnostic test for prostate cancer, which is expected to generate revenue by 2027[185][192] - The company has no products approved for sale aside from Proclarix and has not generated any revenue from product sales to date[193] Corporate Governance and Management - The company is currently searching for a permanent Chief Executive Officer and Chief Financial Officer[187] - The Company has entered into a potential business combination with Ocuvex Therapeutics, Inc., which would result in Ocuvex equity holders owning approximately 90% of the Company post-transaction[177] Tax and Regulatory Matters - The Company recorded an income tax benefit of approximately $127,000 for the three months ended March 31, 2024, yielding an effective tax rate of 21.3% for Proteomedix[161] - The Company has recorded a full valuation allowance against its U.S. deferred tax assets due to uncertainty around utilizing these tax attributes[162]
Blue Water Biotech(BWV) - 2025 Q1 - Quarterly Report