Cyclacel(CYCC) - 2025 Q2 - Quarterly Results

Business Update and Highlights Cyclacel executed key financing activities, including a reverse stock split, and advanced a strategic acquisition of FITTERS Sdn. Bhd. Corporate and Financing Activities During and shortly after the second quarter of 2025, Cyclacel executed several key corporate and financing actions, including dividend payments, a stock sale, and a reverse stock split - Declared and paid quarterly cash dividends of $0.15 per share on its 6% Convertible Exchangeable Preferred Stock in both April and June 2025[4] - In June, the company raised $3.0 million in gross proceeds by selling 3,000,000 shares of Series F Convertible Preferred Stock to accredited investors at $1.00 per share[4] - A one-for-fifteen reverse stock split was implemented, effective July 7, 2025, to meet the Nasdaq Capital Market's minimum share bid price requirement[4] Strategic Transactions The company entered into a share exchange agreement to acquire FITTERS Sdn. Bhd., later amended to include a cash consideration and extended deadline, with a shareholder vote scheduled - Announced a share exchange agreement with FITTERS Diversified Berhad to acquire 100% of FITTERS Sdn. Bhd. in exchange for approximately 19.99% of Cyclacel's common stock[4] - The agreement was amended in July to include a $1.0 million cash payment from Cyclacel to FITTERS Parent and to extend the final closing date to September 30, 2025[5] - A special meeting is scheduled for September 4, 2025, for shareholders to vote on the approval of the transaction[5] Second Quarter 2025 Financial Results The company significantly reduced its net loss in Q2 2025 due to substantial decreases in operating expenses, improving its cash position Cash Position and Liquidity As of June 30, 2025, the company's cash and cash equivalents stood at $4.3 million, an increase from $3.2 million at the end of 2024, projected to fund expenditures into Q4 2025 | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $4.3 million | $3.2 million | - Net cash used in operating activities was $1.1 million for the three months ended June 30, 2025[6] - The company estimates its current cash resources will fund planned expenditures into the fourth quarter of 2025[6] Operating Expenses Total operating expenses saw a substantial year-over-year decrease, driven by significant reductions in both Research & Development and General & Administrative costs following strategic changes Research and Development (R&D) Expenses R&D expenses dramatically decreased to $0.1 million for Q2 2025 from $2.0 million in Q2 2024, primarily due to the cessation of the transcriptional regulation program after the UK subsidiary's liquidation | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | R&D Expenses | $0.1 million | $2.0 million | - The decrease was mainly due to the liquidation of the UK subsidiary, Cyclacel Limited, on January 24, 2025, which halted expenditure for the transcriptional regulation program[7] General and Administrative (G&A) Expenses G&A expenses were reduced to $1.2 million in Q2 2025 from $1.6 million in the same period of 2024, reflecting lower operating costs partially offset by one-time legacy severance and higher legal fees | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | G&A Expenses | $1.2 million | $1.6 million | - The reduction was attributed to lower operating costs, with savings partially offset by one-off legacy severance costs and increased legal fees[8] Net Loss The company's net loss for Q2 2025 narrowed significantly to $1.3 million, compared to $3.3 million in Q2 2024, primarily due to reduced operating expenses despite the absence of UK R&D tax credits | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss | $1.3 million | $3.3 million | - There were no research and development tax credits in Q2 2025, compared to $0.4 million in Q2 2024, due to the liquidation of the UK subsidiary[9] | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss Per Share | ($0.98) | ($172.18) | Financial Statements Detailed financial statements for Q2 2025 show a reduced operating loss and a positive shift in stockholders' equity Consolidated Statements of Operations (Loss) For the three months ended June 30, 2025, Cyclacel reported no revenue and a total operating loss of $1.32 million, a significant improvement from the $3.64 million operating loss in the same period of 2024 Q2 2025 vs Q2 2024 Statement of Operations (in $000s) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $0 | $4 | | Research and development | $68 | $2,023 | | General and administrative | $1,249 | $1,625 | | Operating loss | ($1,317) | ($3,644) | | Net loss | ($1,318) | ($3,257) | | Net loss applicable to common shareholders | ($1,338) | ($3,257) | | Net loss per share – basic and diluted | ($0.98) | ($172.18) | Consolidated Balance Sheet As of June 30, 2025, the company's balance sheet showed total assets of $4.4 million and total liabilities of $0.77 million, resulting in a positive stockholders' equity of $3.63 million Consolidated Balance Sheet Summary (in $000s) | Line Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $4,275 | $3,137 | | Total current assets | $4,383 | $3,674 | | Total Assets | $4,401 | $4,094 | | Current Liabilities | | | | Accounts payable | $221 | $4,599 | | Total current liabilities | $760 | $6,268 | | Total Liabilities | $770 | $6,268 | | Stockholders' Equity | $3,631 | ($2,174) | Company Overview and Forward-Looking Statements Cyclacel Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on cancer medicines, with forward-looking statements highlighting inherent risks About Cyclacel Pharmaceuticals, Inc. Cyclacel is a clinical-stage biopharmaceutical company developing cancer medicines based on cell cycle, epigenetics, and mitosis biology, with its primary program evaluating plogosertib - Cyclacel is a clinical-stage biopharmaceutical company focused on developing innovative cancer medicines[11] - The company's main program is evaluating plogosertib, a PLK1 inhibitor, in patients with solid tumors and hematological malignancies[11] Forward-looking Statements This section provides a standard safe harbor statement, cautioning that the press release contains forward-looking statements with inherent risks and uncertainties - Warns that statements regarding drug efficacy, future plans, cash runway, and clinical data timing are forward-looking and subject to risks[12] - Key risks include candidates failing in later-stage trials, difficulty in trial enrollment, reliance on outside financing, and maintaining Nasdaq listing requirements[12]