Onconetix(US:ONCO)2025-11-13 22:26Financial Performance - Total revenue for Q3 2025 was $303,651, a decrease of 25.4% compared to $406,859 in Q3 2024[16] - Gross profit for Q3 2025 was $268,894, significantly higher than $105,414 in Q3 2024, reflecting improved cost management[16] - The net loss for Q3 2025 was $8,783,702, compared to a net loss of $3,827,405 in Q3 2024, representing an increase in losses of 129.3%[16] - The company reported a gross profit margin of 88.5% in Q3 2025, compared to 25.9% in Q3 2024, indicating improved profitability[16] - For the nine months ended September 30, 2025, the company reported a net loss of $19.7 million, an improvement from a net loss of $29.3 million for the same period in 2024, representing a 32.5% reduction in losses[24] - The company used approximately $6.6 million in cash for operating activities during the nine months ended September 30, 2025, compared to $9.6 million in the same period of 2024, indicating a 31.3% decrease in cash used[24] Assets and Liabilities - Total assets decreased to $19,678,868 as of September 30, 2025, down from $28,181,563 at December 31, 2024, a decline of 30.3%[14] - Current liabilities decreased to $16,303,023 as of September 30, 2025, from $18,290,129 at December 31, 2024, a reduction of 10.8%[14] - The accumulated deficit increased to $136,884,245 as of September 30, 2025, compared to $115,683,621 at December 31, 2024, an increase of 18.3%[14] - The total stockholders' equity decreased to $3,374,121 as of September 30, 2025, down from $8,542,627 at December 31, 2024, a decline of 60.5%[14] Stock and Equity - The balance of common stock increased to $119,563,951, indicating ongoing capital activities[19] - The company had a total of 64,236,085 shares of common stock outstanding as of the latest reporting date[19] - The balance of preferred stock as of September 30, 2025, was $1,560,820, with total stockholders' equity at $141,431,240[22] - The company raised approximately $12.9 million from the Series D PIPE Financing, resulting in net cash proceeds of $9.3 million, and issued 16,099 shares of Series D Preferred Stock[157] Revenue Sources - The company generated total revenue of $303,651 during the three months ended September 30, 2025, with 100% of other revenue coming from the European Union[59] - For the nine months ended September 30, 2025, total revenue was $511,775, with 93% of product sales originating from the European Union[61] - The Company recognized a license revenue of $300,000 from Immunovia AB in Q3 2025, with an additional payment of $300,000 due by March 31, 2026[84] Financing and Debt - The Company issued a non-convertible debenture of $5.0 million to a related party with an interest rate of 4.0% per annum, originally due by June 30, 2024[115] - The Company recorded approximately $0.3 million and $0.8 million of interest expense for the three and nine months ended September 30, 2025, respectively[111] - The Company recognized a loss on extinguishment of notes payable of $1,867,908 for the three and nine months ended September 30, 2025[125] Impairments and Adjustments - The company recorded full impairments of intangible assets acquired from the acquisitions of Proteomedix and ENTADFI during the year ended December 31, 2024[50] - The Company recorded an intangible asset impairment charge of approximately $3.5 million during the nine months ended September 30, 2024, due to competitive pressures[71] - Goodwill balance as of September 30, 2025, was $18,180,299, reflecting an impairment loss of approximately $11.5 million for the nine months ended September 30, 2025[72][73] Operational Challenges - The company incurred substantial operating losses since inception and expects to continue incurring significant losses for the foreseeable future[37] - The company has no committed sources of financing and faces uncertainty regarding the availability of additional funding on favorable terms[40] - The company abandoned the commercialization of ENTADFI and fully impaired its assets as of June 30, 2024, due to insufficient resources and cash runway[30] Agreements and Legal Matters - The Company entered into an Amended and Restated Forbearance Agreement with Veru, extending the due date for the April and September 2024 Veru Notes until June 30, 2025[94] - The Company agreed to make required payments during the April 2024 Forbearance Period, including $50,000 of principal and 15% of monthly cash receipts from Proteomedix and Proclarix sales[96] - The company terminated the Merger Agreement with Ocuvex and paid a Termination Payment of $302,343.55[204]