Blue Water Biotech(BWV) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2025 was $106,494, a decrease of 85.1% compared to $704,848 in Q2 2024[18] - Gross profit for the six months ended June 30, 2025, was $116,335, down from $289,716 in the same period of 2024, reflecting a decline of 59.9%[18] - Total operating expenses for Q2 2025 were $2,005,921, significantly lower than $13,715,735 in Q2 2024, indicating a reduction of 85.3%[18] - The net loss for Q2 2025 was $2,372,442, compared to a net loss of $14,306,704 in Q2 2024, representing a 83.4% improvement[18] - Revenue for the three months ended June 30, 2025, was approximately $0.1 million, a decrease of 85.7% compared to $0.7 million for the same period in 2024[55] - For the six months ended June 30, 2025, revenue was approximately $0.2 million, down 85.7% from $1.4 million in the same period of 2024[56] - For the six months ended June 30, 2025, Onconetix reported a net loss of $10,918,327, a decrease from a net loss of $25,425,276 for the same period in 2024[24] - The net loss for the quarter ending March 31, 2025, was $8,545,885, showing a continued trend of financial losses[22] Assets and Liabilities - Total assets decreased to $19,119,036 as of June 30, 2025, down from $28,181,563 at the end of 2024, a decline of 32.2%[16] - Current liabilities decreased to $12,692,188 as of June 30, 2025, compared to $18,290,129 at December 31, 2024, a reduction of 30.5%[16] - Goodwill decreased to $18,123,296 as of June 30, 2025, down from $27,048,973 at December 31, 2024, a decline of 32.9%[16] - The company reported a total stockholders' equity of $5,909,761 as of June 30, 2025, down from $8,542,627 at December 31, 2024, a decrease of 30.5%[16] - The projected benefit obligation as of June 30, 2025, was $831,242, significantly reduced from $2,593,360 as of December 31, 2024[186] - The fair value of plan assets decreased to $757,598 as of June 30, 2025, from $2,312,481 at the end of 2024[186] Stock and Equity - The weighted average number of common shares outstanding for Q2 2025 was 567,648, compared to 6,528 in Q2 2024, indicating a significant increase in shares[18] - The company issued common stock in connection with the ELOC, resulting in an increase of $1,365,034 in paid-in capital[21] - The total amount of common stock issued in connection with the ELOC was 335,123 shares[21] - The Company is authorized to issue 250 million shares of common stock and 10 million shares of preferred stock[117] - The Company has 1,009,126 shares of common stock issued as of June 30, 2025, compared to 138,422 shares as of December 31, 2024[139] - The Company issued 2,696,729 shares of Series B Convertible Preferred Stock, convertible into approximately 79,315 shares of common stock, as part of the PMX Transaction[123] Impairments and Adjustments - The company recognized an impairment of goodwill amounting to $594,000 in Q2 2025, compared to $10,261,000 in Q2 2024, reflecting a decrease of 94.2%[18] - The company incurred a loss on impairment of goodwill amounting to $11,512,000 for the six months ended June 30, 2025[24] - Goodwill impairment losses were recognized at approximately $0.6 million and $10.3 million for the three months ended June 30, 2025 and 2024, respectively, and $11.5 million and $15.5 million for the six months ended June 30, 2025 and 2024, respectively[70] - The company recorded full impairments of intangible assets acquired from the acquisitions of Proteomedix and ENTADFI during the year ended December 31, 2024[49] Cash Flow and Financing - The company used approximately $3.4 million in cash for operating activities during the six months ended June 30, 2025, compared to $8,431,591 in the prior year[24] - As of June 30, 2025, Onconetix had cash of approximately $0.3 million and a working capital deficit of approximately $11.8 million[38] - The Company received proceeds of $6.39 million under the Equity Line of Credit (ELOC) during the six months ended June 30, 2025[138] - The Company issued a non-convertible debenture of $5.0 million to a related party with an interest rate of 4.0% per annum, originally due by June 30, 2024[101] - The Company has a maximum of $25 million available under the ELOC Purchase Agreement for selling new issued common stock[135] Business Operations and Strategy - Onconetix acquired Proteomedix AG on December 15, 2023, making it a wholly owned subsidiary, which focuses on prostate cancer diagnosis[27] - Management plans to generate product revenue from Proclarix and seeks additional funding through equity or debt financings[39] - The focus is currently on commercializing Proclarix, an in vitro diagnostic test for prostate cancer approved for sale in the EU[210] - Proclarix is designed to assist in diagnosing patients with elevated PSA levels, where only 20-40% may present clinically with cancer[213] - Approximately 10% of all men have elevated PSA levels, leading to a diagnostic "grey zone" that Proclarix aims to clarify[213] Legal and Regulatory - The Company has no material legal proceedings as of June 30, 2025[165] - There is substantial doubt about the company's ability to continue as a going concern within one year from the issuance of the financial statements[40] Miscellaneous - The company recorded stock-based compensation expenses totaling $30,982 for the quarter ending March 31, 2025[22] - The total stock-based compensation expense for the six months ended June 30, 2025, was $60,238, compared to $51,875 for the same period in 2024[161] - The Company has recorded a full valuation allowance against its U.S. deferred tax assets due to uncertainty around utilizing these tax attributes[175] - The Company has not recognized any interest or penalties related to income taxes for the three and six months ended June 30, 2025[176]