Rani Therapeutics (RANI) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, net loss was $7,914,000 compared to $12,722,000 for the same period in 2024, representing a 37% improvement[17]. - The net loss attributable to Rani Therapeutics Holdings, Inc. for the nine months ended September 30, 2025, was $19,368,000, compared to $21,071,000 in 2024, a decrease of 8%[17]. - For the nine months ended September 30, 2025, the company reported a net loss of $31.9 million, compared to a net loss of $40.9 million for the same period in 2024, representing a 22.4% improvement[27]. - The company reported a net loss of $(12,738) million for the quarter ending March 31, 2025, with accumulated deficit reaching $(110,171) million[21]. - The company reported a net loss per Class A common share of $(0.50) for the nine months ended September 30, 2025, compared to $(0.78) for the same period in 2024[102]. Revenue and Contractual Agreements - The company reported no contract revenue for the three months ended September 30, 2025, consistent with the same period in 2024[17]. - The company recognized $0.2 million in contract revenue for evaluation services performed for Chugai Pharmaceutical Co., Ltd. during the nine months ended September 30, 2025[49]. - The company expects to receive a $10.0 million upfront payment from Chugai under a Collaboration and License Agreement, with potential additional milestone payments totaling up to $175.0 million[152]. Expenses and Cost Management - Research and development expenses for the nine months ended September 30, 2025, were $15,296,000, down 23% from $19,872,000 in 2024[17]. - General and administrative expenses decreased to $14,651,000 for the nine months ended September 30, 2025, from $18,484,000 in 2024, a reduction of 21%[17]. - For the three months ended September 30, 2025, total operating expenses decreased by 38.5% to $7.3 million from $11.8 million in 2024[138]. - Research and development expenses for the three months ended September 30, 2025, decreased by 47.8% to $3.2 million from $6.2 million in 2024, primarily due to a $2.4 million reduction in compensation costs[139]. Cash Flow and Liquidity - Cash flows from operating activities showed a net cash used of $19.0 million for the nine months ended September 30, 2025, down from $26.8 million in 2024, indicating a 29.0% reduction in cash outflow[27]. - The company had cash, cash equivalents, and restricted cash equivalents totaling $4.6 million as of September 30, 2025, compared to $4.8 million at the end of the same period in 2024[41]. - The company generated net cash provided by investing activities of $23.9 million for the nine months ended September 30, 2025, compared to $17.3 million in 2024, reflecting a 38.5% increase[27]. - As of September 30, 2025, total cash equivalents and restricted cash equivalents amounted to $2,823,000, up from $904,000 as of December 31, 2024, indicating a significant increase[45]. Stock and Equity - The weighted-average Class A common shares outstanding increased to 46,444 for the three months ended September 30, 2025, from 28,836 in 2024[17]. - The total stockholders' equity attributable to Rani Therapeutics Holdings, Inc. showed a deficit of $7,860,000 as of September 30, 2025, compared to a positive equity of $1,992,000 as of December 31, 2024[15]. - The Company issued 4,354,000 shares of Class A common stock and pre-funded warrants for total gross proceeds of $3.0 million in July 2025[73]. - The Company raised approximately $60.3 million in a private placement, including the conversion of $6.0 million in loans into 12,500,000 shares of Class A Common Stock[123][125]. Strategic Initiatives and Future Plans - The company continues to focus on advancing its product candidates and expanding its technology platform, with ongoing clinical trials planned[10]. - The company plans to initiate a Phase 1 trial for RT-114, an oral anti-obesity therapy, by the end of 2025[129]. - The RaniPill HC is expected to enable delivery of drug payloads up to 200µL in liquid form, with clinical testing planned to start by the end of 2025[115]. - The company is evaluating strategic financing opportunities, including future equity offerings and collaboration agreements, to support its operations moving forward[33]. Financial Obligations and Liabilities - The effective interest rate on the Company's loans was 14.60% as of September 30, 2025, with total principal payments due of $13.75 million[97]. - The total operating lease liability was $4,017,000, with a current portion of $1,049,000[72]. - The minimum annual rental payments under operating lease agreements total $4,770,000, excluding short-term leases[72]. - The company has not recorded a liability under the Tax Receivable Agreement (TRA) as it is not probable that it will realize tax benefits, with potential TRA payable ranging from $0 to $23.4 million[94].