Financial Performance - Total revenue for the three months ended September 30, 2025, was $370,000, a significant increase from $5,000 in the same period of 2024, representing a growth of 7,300%[28] - Gross income for the three months ended September 30, 2025, was $58,000, compared to a loss of $0 in the same period of 2024[28] - Operating expenses for the three months ended September 30, 2025, totaled $4,422,000, a decrease from $20,206,000 in the same period of 2024, reflecting a reduction of 78%[28] - The net loss for the three months ended September 30, 2025, was $7,478,000, compared to a net income of $6,392,000 in the same period of 2024[28] - The company reported a comprehensive loss of $7,478,000 for the three months ended September 30, 2025, compared to a comprehensive income of $6,463,000 in the same period of 2024[28] - Net loss for the nine months ended September 30, 2025, was $18,020 thousand, compared to a loss of $59,134 thousand for the same period in 2024[35] - Stock-based compensation expense for the nine months ended September 30, 2025, was $5,167 thousand, down from $15,138 thousand in 2024[35] - Net cash used in operating activities for the nine months ended September 30, 2025, was $2,555 thousand, an improvement from $13,363 thousand in 2024[35] - The company reported a net cash provided by financing activities of $3,801 thousand for the nine months ended September 30, 2025, compared to $18,949 thousand in 2024[35] - The Company incurred a net loss of $18.0 million during the nine months ended September 30, 2025[52] - The Company reported a net loss attributable to common stockholders of $7.5 million for the three months ended September 30, 2025, compared to a net income of $6.4 million for the same period in 2024[185] Assets and Liabilities - Total current assets decreased to $7,263,000 as of September 30, 2025, from $8,735,000 as of December 31, 2024, a decline of 17%[26] - Total liabilities increased to $23,880,000 as of September 30, 2025, compared to $20,840,000 as of December 31, 2024, an increase of 14%[26] - The accumulated deficit as of September 30, 2025, was $(479,821,000), up from $(461,801,000) as of December 31, 2024, indicating a worsening of 4%[26] - Cash and cash equivalents increased to $4,745,000 as of September 30, 2025, from $3,512,000 as of December 31, 2024, an increase of 35%[26] - Cash, cash equivalents, and restricted cash at the end of the period was $4,745 thousand, compared to $6,505 thousand at the end of the previous period[36] - The Company has an accumulated deficit of $479.8 million and negative net working capital of $3.3 million as of September 30, 2025[52] Customer Concentration - During the three months ended September 30, 2025, two customers represented 48% and 36% of total revenue[68] - A single customer represented 85% of total revenue during the nine months ended September 30, 2024[68] Stock and Financing Activities - The company issued common stock through various agreements, including 518,817 shares for equity purchase agreements and 730,439 shares for claim purchases[33] - The Reverse Stock Split was executed at a ratio of 1-for-20 on April 21, 2025[47] - The Reverse Stock Split did not affect the number of authorized shares or the par value of the Common stock, which remains at $0.0001 per share[50] - The Company may seek additional capital through public or private equity offerings or debt financing, but there is no assurance of success[54] - The Company entered into a waiver agreement on July 3, 2025, deferring the June 30, 2025 interest payment date to July 31, 2025[126] - The Company entered into a common stock purchase agreement with Triton for up to $1.5 million, with the S-1 registration statement effective on March 27, 2025[221] - The Company entered into an equity purchase agreement with Ascent Partners Fund LLC, allowing the sale of up to $20.0 million of Common stock[195] - As of September 30, 2025, no shares had been sold to Ascent under the agreement, and the Ascent ELOC remained available for future use[199] - Starting in October 2025, the Company utilized the Ascent ELOC facility, issuing a total of 791,153 shares for gross proceeds of $1.8 million[200] Compliance and Regulatory Issues - The Company received a notice from Nasdaq on February 10, 2025, indicating non-compliance with the minimum $50 million Market Value of Listed Securities requirement[177] - The Company has until December 31, 2025, to regain compliance with Nasdaq's listing standards following a determination of delisting[179] - The Company is currently addressing compliance issues with Nasdaq's listing standards, with a plan to regain compliance by December 31, 2025[219] Research and Development - The company develops biomaterials products, including b-silk and xl-silk, which are biodegradable and vegan protein polymers[39] - Research and development expenses for the three months ended September 30, 2025, were $420,000, down from $3,476,000 in the same period of 2024, a reduction of 88%[28] Tax Liabilities - The Company owes approximately $2.9 million in excise tax as of September 30, 2025, with additional interest and penalties estimated at 9% per annum[115] - The Company has a proposed payment plan to the IRS for approximately $2.9 million in excise tax related to share redemptions[181] - The Sponsor must pay 75% of each payment due to the IRS under the Payment Plan at least 7 days prior to the due date[224] Accounting and Valuation - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[85][86] - The public placement warrant liability was valued at $18,000 as of September 30, 2025, and $267,000 as of December 31, 2024, using the Monte Carlo simulation model[89] - The related party private placement warrant liability was valued at $365,000 as of September 30, 2025, and $133,000 as of December 31, 2024[89] - The long-term debt, non-current, approximated $12.9 million as of September 30, 2025, and $13.2 million as of December 31, 2024[89] - The total Amended Senior Note, including unamortized debt premium, was $12.911 million as of September 30, 2025[127] Stock-Based Compensation - The Company recorded total stock-based compensation expense of $1.474 million for the three months ended September 30, 2025, compared to $14.943 million for the same period in 2024[163] - The total RSU vesting expense was $1.3 million and $4.6 million for the three and nine months ended September 30, 2025, respectively[162] - The Company has $1.1 million of remaining unrecognized stock-based compensation expense expected to be recognized over a weighted-average period of 2.3 years[160] - Stock options repricing occurred on August 3, 2025, reducing the exercise prices for options covering 353,386 shares to $2.42 per share[157][158]
Golden Arrow Merger (GAMC) - 2025 Q3 - Quarterly Report