EVOFEM BIOSCIENC(EVFM) - 2025 Q3 - Quarterly Report

Financial Performance - Product sales for the three months ended September 30, 2025, were $4.952 million, an increase from $4.496 million in the same period of 2024, representing a growth of approximately 10.2%[18] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $1.680 million, compared to a net loss of $2.370 million for the same period in 2024, indicating an improvement of approximately 29.2%[18] - Net loss for the three months ended September 30, 2025, was $1,569 million, compared to a loss of $2,365 million for the same period in 2024, representing a 33.5% improvement[21] - For the nine months ended September 30, 2025, the net loss totaled $5,823 million, slightly improved from $6,485 million in the same period of 2024, showing a 10.2% reduction[21] - The company reported a comprehensive loss of $6,681 million for the nine months ended September 30, 2025, compared to $6,485 million in 2024, indicating a 3% increase[21] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $10.595 million, a decrease from $18.932 million in the same period of 2024, reflecting a reduction of about 43.7%[18] - Research and development expenses for the nine months ended September 30, 2025, were $3.819 million, a significant increase compared to $1.196 million in the same period of 2024[18] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were reported at $0, while total current assets decreased to $7.918 million from $13.609 million as of December 31, 2024[16] - The balance of common stock as of June 30, 2025, was $831,424 thousand, an increase from $829,026 thousand as of September 30, 2024[21] - Cash, cash equivalents, and restricted cash at the end of the period were $840,000, up from $722,000 at the end of the previous year[29] Liabilities - Total liabilities as of September 30, 2025, were $83.976 million, a decrease from $90.264 million as of December 31, 2024, showing a reduction of approximately 6.5%[16] - The company has identified material weaknesses in internal controls and is working on remediation efforts[9] - As of September 30, 2025, the Company reported a working capital deficit of $70.3 million and an accumulated deficit of $900.2 million[41] Regulatory and Market Presence - The company anticipates potential changes in regulatory mandates that could impact the coverage of FDA-approved contraceptive products[14] - The company is focused on expanding its market presence and improving its sales and marketing capabilities, particularly after product rebranding efforts[9] Financing and Debt - Interest pertaining to the Baker Notes for the three months ended September 30, 2025, was approximately $2.9 million, and for the nine months ended September 30, 2025, it was approximately $8.5 million[85] - The Baker Notes have a principal amount of up to $25.0 million, with an interest rate of 10.0% per annum[84] - The Company intends to contest the claims of default made by the Designated Agent and Purchasers under the Baker Bros. SPA[110] Inventory and Cost of Goods Sold - The Company expects to significantly reduce its cost of goods sold (COGS) once PHEXX is manufactured under the Windtree License and Supply Agreement[175] - The Company recorded a total of $1.684 million in inventories as of September 30, 2025, compared to $1.577 million as of December 31, 2024[146] Stock and Equity - The Company issued 5,300,000 shares of common stock upon noncash exercise of purchase rights during the reporting period[21] - The Series E-1 Convertible Preferred Stock was authorized to increase from 2,300 to 10,000 shares to facilitate dividend payments in kind, with a conversion price of $0.40 per share[204] - The Series F-1 Shares rank higher than all Common Stock regarding preferences for dividends and distributions upon liquidation[206] Future Outlook - The Company anticipates continuing to incur net losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[47] - The Company plans to generate recurring product revenue from PHEXX and SOLOSEC, restructure payables, and seek additional funding through various financing options[45]