Genelux (GNLX) - 2025 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION This section presents Genelux Corporation's unaudited condensed financial statements for the quarter ended June 30, 2025, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed explanatory notes Item 1. Condensed Financial Statements This section presents Genelux Corporation's unaudited condensed financial statements for the quarter ended June 30, 2025, including balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, and statements of cash flows. It also includes detailed notes explaining the basis of presentation, significant accounting policies, license agreements, fair value measurements, investments, balance sheet accounts, leases, commitments and contingencies, stockholders' equity, stock-based compensation, net loss per share, and segment information Condensed Balance Sheets The Condensed Balance Sheets show a decrease in total assets and stockholders' equity for Genelux Corporation from December 31, 2024, to June 30, 2025, primarily driven by a reduction in cash and cash equivalents and short-term investments, while total liabilities remained relatively stable Condensed Balance Sheets Summary | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $32,247 | $34,716 | | Total Liabilities | $8,349 | $8,442 | | Total Stockholders' Equity | $23,898 | $26,274 | | Cash and cash equivalents | $6,546 | $8,565 | | Short-term investments | $21,426 | $22,330 | | Accounts payable and accrued expenses | $6,033 | $5,570 | - Total Assets decreased by $2,469 thousand from $34,716 thousand at December 31, 2024, to $32,247 thousand at June 30, 2025[15] - Total Stockholders' Equity decreased by $2,376 thousand from $26,274 thousand at December 31, 2024, to $23,898 thousand at June 30, 2025[15] Condensed Statements of Operations and Comprehensive Loss Genelux Corporation reported a net loss of $7,456 thousand for the three months ended June 30, 2025, an increase from $6,576 thousand in the prior year period. For the six months ended June 30, 2025, the net loss was $14,948 thousand, up from $14,426 thousand in the same period of 2024, primarily due to increased operating expenses, particularly in research and development Condensed Statements of Operations and Comprehensive Loss Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $ - | $ - | $ - | $ 8 | | Research and development | $ 4,758 | $ 4,417 | $ 9,456 | $ 8,427 | | General and administrative | $ 3,034 | $ 2,475 | $ 6,152 | $ 6,588 | | Total operating expenses | $ 7,792 | $ 6,892 | $ 15,608 | $ 15,015 | | Net loss | $ (7,456) | $ (6,576) | $ (14,948) | $ (14,426) | | Loss per share - Basic and Diluted | $ (0.20) | $ (0.22) | $ (0.41) | $ (0.51) | - Net loss increased by $880 thousand for the three months ended June 30, 2025, compared to the same period in 2024[18] - Research and development expenses increased by $341 thousand (7.7%) for the three months ended June 30, 2025, and by $1,029 thousand (12.2%) for the six months ended June 30, 2025, year-over-year[18] Condensed Statements of Stockholders' Equity The Condensed Statements of Stockholders' Equity detail changes in equity components, showing an increase in common stock shares and additional paid-in capital due to stock compensation and issuance of common shares for cash and warrants, alongside an accumulated deficit from ongoing net losses Condensed Statements of Stockholders' Equity Summary | Metric (in thousands) | Balance at Dec 31, 2024 | Balance at June 30, 2025 | | :-------------------- | :---------------------- | :----------------------- | | Common Stock Shares | 34,728,140 | 37,759,016 | | Common Stock Amount | $35 | $38 | | Additional Paid-in Capital | $278,001 | $290,631 | | Accumulated Deficit | $(251,393) | $(266,341) | | Total Stockholders' Equity | $26,274 | $23,898 | - Issuance of 3,000,000 common shares for cash and warrants, net of costs, contributed $9,553 thousand to additional paid-in capital during the six months ended June 30, 2025[21] - Stock compensation expense for the six months ended June 30, 2025, totaled $2,713 thousand[21][25] Condensed Statements of Cash Flows The Condensed Statements of Cash Flows indicate a net decrease in cash and cash equivalents for the six months ended June 30, 2025, primarily due to cash used in operating activities, partially offset by cash provided by financing activities from common stock issuance Condensed Statements of Cash Flows Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Operating activities | $ (12,494) | $ (11,178) | | Investing activities | $ 856 | $ (18,797) | | Financing activities | $ 9,619 | $ 28,415 | | Net decrease in cash and cash equivalents | $ (2,019) | $ (1,560) | | Cash and cash equivalents, end of period | $ 6,546 | $ 7,858 | - Net cash used in operating activities increased to $12,494 thousand for the six months ended June 30, 2025, from $11,178 thousand in the prior year period[25] - Cash provided by financing activities was $9,619 thousand in 2025, primarily from the sale of common stock, a significant decrease from $28,415 thousand in 2024[25] Notes to Condensed Financial Statements The notes provide essential context and detail for the condensed financial statements, covering the company's organization, liquidity concerns, accounting policies, and specific financial instruments and transactions NOTE 1 – BASIS OF PRESENTATION This note outlines Genelux Corporation's organization as a late clinical-stage biopharmaceutical company focused on oncolytic viral immunotherapies. It highlights recurring losses and substantial doubt about the company's ability to continue as a going concern, emphasizing the need for additional funding to support operations and development plans for its product candidate, Olvi-Vec - Genelux Corporation is a late clinical-stage biopharmaceutical company focused on developing oncolytic viral immunotherapies for cancer[28] - The company has experienced recurring losses from operations since inception, with a net loss of $14.9 million and cash used in operations of $12.5 million during the six months ended June 30, 2025, raising substantial doubt about its ability to continue as a going concern[29] - As of June 30, 2025, the company had $28.1 million in cash, cash equivalents, and short-term investments, which are expected to fund planned operations for the next 12 months from the filing date, but additional financing will be required for long-term development and commercialization[30] NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note confirms no changes to significant accounting policies from the Annual Report, detailing the classification of cash and cash equivalents, available-for-sale investments, and comprehensive loss. It also discusses recent accounting pronouncements, including ASU 2024-03 and ASU 2023-07, and their potential impact