TenX Keane Acquisition(TENK) - 2025 Q2 - Quarterly Results

Company Overview and Business Update Citius Oncology is preparing for the Q4 2025 U.S. commercial launch of FDA-approved LYMPHIR, targeting an underserved CTCL market exceeding $400 million Business Highlights and LYMPHIR Commercialization Citius Oncology is in the final stages of preparing for the U.S. commercial launch of LYMPHIR, planned for the fourth quarter of 2025. This initiative is supported by recent capital raises and established distribution agreements - LYMPHIR commercial availability is planned for the fourth quarter of 2025[1][2] - Citius Pharmaceuticals raised $12.5 million in gross financings during the quarter, with Citius Oncology raising an additional $9 million in July 2025, to facilitate LYMPHIR pre-launch initiatives[1] - The company has secured distribution service agreements with leading global providers and has launch supplies ready[2] About Citius Oncology, Inc. Citius Oncology is a specialty biopharmaceutical company focused on developing and commercializing novel targeted oncology therapies. Its primary asset, LYMPHIR, received FDA approval for relapsed or refractory CTCL, targeting an underserved market estimated to exceed $400 million - Citius Oncology is a specialty biopharmaceutical company focused on developing and commercializing novel targeted oncology therapies[5] - LYMPHIR was approved by the FDA in August 2024 for the treatment of adults with relapsed or refractory CTCL who had at least one prior systemic therapy[5] - Management estimates the initial market for LYMPHIR currently exceeds $400 million, is growing, and is underserved by existing therapies[5] Fiscal Third Quarter 2025 Financial Performance The company reported an increased net loss of $5.4 million for Q3 2025, with significant balance sheet changes including higher inventory and liabilities, and no net cash from operations Key Financial Highlights For the fiscal third quarter ended June 30, 2025, Citius Oncology reported a net loss of $5.4 million, an increase from $4.8 million in the prior year. R&D expenses decreased while G&A and stock-based compensation expenses increased. The company also completed a public offering in July 2025, generating approximately $7.4 million in net proceeds - On July 17, 2025, Citius Oncology completed a public offering generating net proceeds of approximately $7.4 million[3] Fiscal Third Quarter 2025 Financial Highlights (YoY) | Metric | Q3 2025 (USD) | Q3 2024 (USD) | Change (YoY) (USD) | | :----------------------- | :---------- | :---------- | :----------- | | R&D expenses | $938,000 | $1.1 million | ↓ $162,000 | | G&A expenses | $1.9 million | $1.5 million | ↑ $400,000 | | Stock-based compensation | $2.1 million | $2.0 million | ↑ $100,000 | | Net loss | $(5.4) million | $(4.8) million | ↑ $(0.6) million | | Net loss per share | $(0.08) | $(0.07) | ↑ $(0.01) | - As of June 30, 2025, the Company had $112 in cash and cash equivalents and 71,552,402 common shares outstanding[3] Condensed Consolidated Balance Sheets As of June 30, 2025, Citius Oncology's total assets increased to $91.7 million from $84.4 million at September 30, 2024, primarily driven by a significant increase in inventory. Total liabilities also rose substantially, leading to a decrease in total stockholders' equity Condensed Consolidated Balance Sheets Summary | Metric | June 30, 2025 (USD) | September 30, 2024 (USD) | Change (USD) | | :-------------------------- | :---------------- | :------------------- | :----- | | Total Current Assets | $18,309,079 | $10,968,878 | ↑ $7,340,201 | | Total Assets | $91,709,079 | $84,368,878 | ↑ $7,340,201 | | Total Current Liabilities | $52,990,335 | $32,700,428 | ↑ $20,289,907 | | Total Liabilities | $59,311,166 | $38,228,539 | ↑ $21,082,627 | | Total Stockholders' Equity | $32,397,913 | $46,140,339 | ↓ $13,742,426 | - Inventory increased significantly from $8,268,766 at September 30, 2024, to $17,208,967 at June 30, 2025[9] - Accounts payable increased from $3,711,622 to $8,667,419, and accrued expenses rose from $0 to $8,458,554[9] Condensed Consolidated Statements of Operations For the three months ended June 30, 2025, Citius Oncology reported a net loss of $5.37 million, an increase from $4.77 million in the prior year, primarily due to higher general and administrative expenses and the introduction of interest expense. For the nine-month period, the net loss widened to $19.76 million Statements of Operations (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | Change (USD) | | :-------------------------- | :---------- | :---------- | :----- | | Revenues | $0 | $0 | No change | | Research and development | $938,277 | $1,131,439 | ↓ $193,162 | | General and administrative | $1,881,447 | $1,540,411 | ↑ $341,036 | | Total Operating Expenses | $4,944,961 | $4,628,850 | ↑ $316,111 | | Operating Loss | $(4,944,961) | $(4,628,850) | ↑ $(316,111) | | Interest expense | $160,755 | $0 | New expense | | Net Loss | $(5,369,956) | $(4,772,850) | ↑ $(597,106) | | Net Loss Per Share | $(0.08) | $(0.07) | ↑ $(0.01) | Statements of Operations (Nine Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | Change (USD) | | :-------------------------- | :------------ | :------------ | :----- | | Research and development | $5,342,198 | $3,628,900 | ↑ $1,713,298 | | General and administrative | $7,446,753 | $4,443,899 | ↑ $3,002,854 | | Total Operating Expenses | $18,811,238 | $13,903,799 | ↑ $4,907,439 | | Net Loss | $(19,764,713) | $(14,335,799) | ↑ $(5,428,914) | | Net Loss Per Share | $(0.28) | $(0.21) | ↑ $(0.07) | - Stock-based compensation included in general and administrative expenses was $2,125,237 for Q3 2025 and $6,022,287 for the nine months ended June 30, 2025[11] Condensed Consolidated Statements of Cash Flows For the nine months ended June 30, 2025, Citius Oncology reported no net cash provided by operating activities, despite a net loss of $19.76 million. This was influenced by non-cash adjustments like stock-based compensation and significant changes in operating assets and liabilities, particularly an increase in inventory and accrued expenses - Net loss for the nine months ended June 30, 2025, was $(19,764,713)[13] Key Adjustments to Net Loss for Cash Flow (Nine Months Ended June 30) | Adjustment | 2025 (USD) | 2024 (USD) | | :-------------------------- | :----------- | :----------- | | Stock-based compensation expense | $6,022,287 | $5,831,000 | | Deferred income tax expense | $792,720 | $432,000 | | Inventory | $(8,940,201) | $0 | | Prepaid expenses | $1,600,000 | $(2,271,920) | | Accounts payable | $4,955,797 | $(1,289,045) | | Accrued expenses | $8,458,554 | $185,930 | | Due to related party | $6,875,556 | $11,447,834 | - Net Cash Provided By Operating Activities was $0 for both the nine months ended June 30, 2025, and 2024[13] Forward-Looking Statements and Risks This section highlights substantial risks, including the need for additional funding, challenges in LYMPHIR commercialization, and compliance with regulatory and market standards Forward-Looking Statements and Risks This section outlines various forward-looking statements and significant risks that could impact Citius Oncology's future performance. Key risks include the need for substantial additional funding, challenges in commercializing LYMPHIR, maintaining financing agreements, market acceptance, Nasdaq compliance, supply chain dependencies, intellectual property matters, and regulatory and competitive pressures - Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect business, operating results, financial condition, and stock price[6] - Key risks include the need for substantial additional funds to fund operations beyond September 2025 and for at least the next 12 months as a going concern[6] - Other significant risks involve the ability to commercialize LYMPHIR, obtain and maintain financing and strategic agreements, market acceptance, compliance with Nasdaq listing standards, dependence on third-party suppliers, intellectual property matters, government regulation, and competition[6] Investor Information This section provides essential contact details for investor and media inquiries Contact Information This section provides contact details for investor and media inquiries - Investor Contact: Ilanit Allen at ir@citiuspharma.com or 908-967-6677 x113[7] - Media Contact: Greg Salsburg at Greg@STiR-communications.com[7]