NightHawk Biosciences(US:NHWK)2025-08-22 20:01Revenue and Financial Performance - Revenue decreased by $3.3 million to $0.2 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to the largest customer migrating to a larger CDMO [137]. - The company incurred a net loss of $11.3 million for the three months ended March 31, 2025, contributing to an accumulated deficit of approximately $297.9 million [145][155]. - The company generated approximately $0.2 million in revenue for the three months ended March 31, 2025, which was insufficient to cover operating expenses [146]. Expenses - Cost of revenues decreased by $0.5 million to $0.4 million for the three months ended March 31, 2025, attributed to lower production levels [138]. - Research and development expense decreased by $0.7 million to $3.2 million for the three months ended March 31, 2025, compared to the same period in 2024 [139]. - Selling, general and administrative expenses were $4.0 million for the three months ended March 31, 2025, down from $5.0 million in 2024, reflecting a decrease of $1.0 million due to cost-cutting measures [140]. Cash Flow and Financing - Cash and cash equivalents and short-term investments were approximately $0.2 million as of March 31, 2025, and increased to approximately $0.3 million by August 22, 2025 [144][147]. - Cash used in operating activities was approximately $3.4 million for the three months ended March 31, 2025, compared to $4.7 million in the same period in 2024 [150][152]. - Net cash provided by financing activities was $2.5 million during the three months ended March 31, 2025, compared to $3.3 million for the same period in 2024, a decrease of $0.8 million [154]. Operational Challenges - The company commenced operations of the leased San Antonio facility in September 2022, but the lease was terminated in March 2025 due to non-payment of rent [112]. - The company recognized a loss of $4,132,767 due to lease termination for its principal manufacturing space in San Antonio [124]. - The company has not satisfied the first three quarterly payments on the December 2024 Secured Convertible Notes, indicating a default situation [129]. - There is substantial doubt about the company's ability to continue as a going concern for one year after the financial statements are issued due to recurring losses and insufficient revenue generation [147][159]. Compliance and Regulatory Issues - On April 16, 2025, the company received a notice from NYSE Regulation for non-compliance with listing standards due to late filing of the Annual Report [115]. - Trading of the company's common stock was suspended on April 21, 2025, and it began trading on the OTC Markets Pink Limited exchange on April 22, 2025 [117]. Future Outlook and Strategic Initiatives - The company intends to meet financing needs through cash on hand, revenue from the CDMO facility, grant funding, equity and debt financings, and partnerships [113]. - The company is exploring strategic alternatives and has engaged Alliance Global Partners for this purpose, although no assurance of a successful transaction is provided [158]. - The company anticipates needing to raise additional capital to sustain operations, with potential sources including equity financings and collaborations [148][159]. - The outstanding principal balance of the 2025 Non-Convertible Promissory Notes, Related Party is $5,790,000 as of August 22, 2025 [132]. - The company issued 6,019,444 shares of common stock upon partial conversions of the December 2024 Secured Convertible Notes during the three months ended March 31, 2025 [128].