Processa Pharmaceuticals(PCSA) - 2025 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $3.93 million for the three months ended June 30, 2025, compared to a net loss of $3.01 million for the same period in 2024, representing an increase of approximately 30.7%[73] - Operating loss for the six months ended June 30, 2025, was $6.80 million, compared to $5.89 million for the same period in 2024, indicating an increase of approximately 15.4%[73] - An accumulated deficit of $94.0 million was reported at June 30, 2025, with a net loss of $6.8 million for the six months ended June 30, 2025[91] Research and Development - Research and development expenses for the three months ended June 30, 2025, were $2.45 million, up from $1.73 million in the same period in 2024, reflecting an increase of 41.5%[73] - The company is currently in a Phase 2 trial for NGC-Cap and is actively enrolling patients, aiming to obtain preliminary safety-efficacy data[65] - The company plans to use proceeds from financing for continued research and development of NGC-Cap and for working capital[68] Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2025, was $5.00 million, compared to $5.39 million for the same period in 2024, showing a decrease of approximately 7.2%[85] - Net cash provided by financing activities included the sale of 15,340,972 shares of common stock and pre-funded warrants, generating significant capital for the company[88] - The company had cash and cash equivalents of $6.9 million as of June 30, 2025, which, along with $2.4 million received in August 2025, is expected to meet capital needs into Q1 2026[90] - The company plans to raise additional funds through public or private equity offerings, debt financings, and strategic alliances, but acknowledges potential dilution of existing stockholders' interests[93] General and Administrative Expenses - General and administrative expenses for the three months ended June 30, 2025, increased to $1.50 million from $1.35 million in the same period in 2024, a rise of approximately 11.1%[81] Contractual Obligations and Off-Balance Sheet Arrangements - No significant changes to contractual obligations were reported since the last Annual Report[94] - As of June 30, 2025, there were no off-balance sheet arrangements[95] Accounting Pronouncements - The company has not identified any material impact from recently issued accounting pronouncements on its financial position[99]