Hoth Therapeutics(HOTH) - 2025 Q3 - Quarterly Report

Financial Performance - The net loss for Q3 2025 was approximately $4.11 million, or $0.30 per common share, compared to a net loss of $2.2 million, or $0.32 per common share, in Q3 2024[147]. - The company incurred a net loss of approximately $9.8 million for the nine months ended September 30, 2025, compared to a net loss of $6.1 million for the same period in 2024[156]. Expenses - Research and development expenses for Q3 2025 were approximately $1.6 million, up from $0.9 million in Q3 2024, representing an increase of about 77.8%[141][142]. - General and administrative expenses for Q3 2025 amounted to approximately $2.5 million, a significant increase of 98.2% compared to $1.2 million in Q3 2024[143]. - For the nine months ended September 30, 2025, research and development expenses totaled approximately $4.6 million, compared to $2.21 million for the same period in 2024, reflecting a 108.6% increase[148][149]. - General and administrative expenses for the nine months ended September 30, 2025, were approximately $5.1 million, up from $3.9 million in 2024, marking an increase of about 31.2%[153]. Cash Flow - As of September 30, 2025, the company had approximately $7.8 million in cash and cash equivalents and an accumulated deficit of approximately $70.2 million[157]. - For the nine months ended September 30, 2025, net cash used in operating activities was approximately $7.65 million, primarily due to a net loss of approximately $9.78 million[165]. - For the nine months ended September 30, 2024, net cash used in operations was approximately $5.0 million, resulting from a net loss of approximately $6.1 million[166]. - For the nine months ended September 30, 2025, net cash provided by financing activities was approximately $8.76 million, primarily from net proceeds of approximately $3.5 million from the issuance of common stock and approximately $5.6 million from the exercise of warrants[168]. - For the nine months ended September 30, 2024, net cash provided by financing activities was approximately $3.7 million, resulting from net proceeds from the exercise of warrants[169]. Future Outlook - The company anticipates an increase in research and development activities and general and administrative expenses in future periods due to ongoing projects and potential new acquisitions[150][154]. - Additional funding will be necessary to support future clinical and pre-clinical activities, with no assurances of obtaining adequate financing due to the economic downturn[164]. Agreements and Obligations - A Cooperative Research and Development Agreement was initiated with the VA to assess technology for obesity and fatty liver disease, with results expected in early 2026[140]. - The Company may be required to make minimum royalty payments ranging from middle to high five figures, sales-based royalties ranging from low single digits to low double digits, and milestone payments of up to approximately $35 million if all milestones in current agreements are achieved[163]. Stock and Dividends - The Company accounts for stock-based compensation based on the estimated grant date fair value, with stock options generally issued fully vested[172]. - The Company has never declared or paid any cash dividends on its common shares and does not plan to do so in the foreseeable future[175]. Accounting Standards - The Company does not expect the adoption of the new accounting standards to have a material impact on its consolidated financial statements[182].