Xenetic Biosciences(US:XBIO)2025-11-12 21:30Financial Performance - Total revenue for Q3 2025 was $1,026,957, representing a 67.3% increase from $614,243 in Q3 2024[12] - Royalty revenue for the nine months ended September 30, 2025, was $2,210,115, up from $1,851,464 in the same period of 2024, indicating a growth of 19.4%[12] - Net loss for Q3 2025 was $509,940, compared to a net loss of $436,671 in Q3 2024, showing a decline of 16.7%[12] - For the nine months ended September 30, 2025, the company reported a net loss of $2,101,784, an improvement from a net loss of $2,905,754 in the same period of 2024, representing a decrease of approximately 27.7%[26] - Revenue for the nine months ended September 30, 2025, was $2,210,115, an increase of 19.4% compared to $1,851,464 for the same period in 2024[38] - Royalty revenue for the quarter ended September 30, 2025 increased by 67.2% to approximately $1.0 million from $0.6 million in the same quarter of 2024[76] - For the nine months ended September 30, 2025, royalty revenue increased by 19.4% to approximately $2.2 million from approximately $1.9 million in the same period of 2024[82] Operating Costs and Expenses - Total operating costs and expenses for Q3 2025 were $1,571,691, compared to $1,113,716 in Q3 2024, reflecting an increase of 41.2%[12] - Research and development expenses for the nine months ended September 30, 2025, were $2,292,068, slightly up from $2,246,077 in the same period of 2024[12] - Research and development expenses for the quarter ended September 30, 2025 rose by 105.6% to approximately $0.8 million compared to $0.4 million in the prior year[77] - General and administrative expenses for the quarter ended September 30, 2025 increased by 9.3% to approximately $0.8 million from approximately $0.7 million in the comparable quarter in 2024[78] - General and administrative expenses for the nine months ended September 30, 2025 decreased by 21.4% to approximately $2.1 million from approximately $2.7 million in the comparable period in 2024[84] Cash and Assets - Cash and cash equivalents decreased to $4,121,599 as of September 30, 2025, down from $6,165,568 as of December 31, 2024, a decline of 33.1%[10] - Total assets decreased to $5,067,960 as of September 30, 2025, from $6,901,443 as of December 31, 2024, a reduction of 26.5%[10] - Total stockholders' equity fell to $3,956,185 as of September 30, 2025, down from $6,007,180 as of December 31, 2024, a decrease of 34.1%[10] - The company's cash at the end of the period was $4,121,599, down from $6,839,560 at the end of the same period in 2024, reflecting a decrease of approximately 39.5%[26] - As of September 30, 2025, the company had approximately $4.1 million in cash and $1.1 million in current liabilities, compared to $6.2 million in cash and $0.9 million in current liabilities at December 31, 2024[88] Capital and Funding - The company has raised approximately $3.9 million in an underwritten offering of common stock subsequent to the quarter end[32] - The company anticipates needing additional capital in the long term to pursue its business initiatives despite having adequate resources for at least the next twelve months[32] - The company raised approximately $3.9 million in an underwritten offering of common stock subsequent to the quarter end, indicating ongoing efforts to secure additional capital[89] Strategic Initiatives - The company is engaged in a formal strategic review process to explore alternatives to maximize shareholder value, including potential sales or business combinations[33] - The company is advancing its proprietary DNase technology as an adjunctive therapy for pancreatic carcinoma and metastatic solid tumors[70] Legal and Compliance - The company is not currently subject to any material legal proceedings, which may positively impact its financial stability[102] - There have been no material changes to the risk factors previously disclosed, suggesting stability in the company's risk environment[103] - The company’s management has concluded that its disclosure controls and procedures are effective, ensuring compliance with SEC requirements[99] Other Financial Information - Interest income for the nine months ended September 30, 2025, was $104,205, down from $197,994 in the same period of 2024, a decrease of 47%[12] - The valuation allowance against deferred tax assets was approximately $41.7 million as of September 30, 2025[58] - Total share-based expense related to stock options and RSUs was approximately $16,000 for the three months ended September 30, 2025[54] - The Company had warrants to purchase approximately 800 shares of common stock outstanding as of September 30, 2025, with an exercise price of $29.09 per share[53] - No amounts were recognized as revenue related to the Serum Institute, Pharmsynthez, or SynBio agreements during the three and nine months ended September 30, 2025[50] - The Company has no unrecognized tax positions as of September 30, 2025[59] - The Company did not grant any stock options or RSUs during the three and nine months ended September 30, 2025[56] - The Company paid Dr. Genkin approximately $0.1 million during the three months ended September 30, 2025, related to consulting services[61] - The Company incurred program expenses of $2,271,998 for the nine months ended September 30, 2025, which is an increase of 43.7% from $1,581,070 in the same period of 2024[38] - Working capital decreased to approximately $4.0 million at September 30, 2025, down from approximately $5.7 million at December 31, 2024[87] - Cash flows used in operating activities for the nine months ended September 30, 2025 totaled approximately $2.0 million, slightly improved from $2.1 million for the same period in 2024[90] - There were no cash flows from investing or financing activities for the nine months ended September 30, 2025 and 2024, indicating a lack of investment or financing initiatives during this period[91][92] - The company has not experienced any material changes in contractual obligations and commitments as of September 30, 2025, compared to previous disclosures[93] - There are no off-balance sheet financing arrangements that could materially affect the company's financial condition[94]