ZyVersa Therapeutics(ZVSA) - 2025 Q3 - Quarterly Report

Financial Performance - For the nine months ended September 30, 2025, the net loss was $24.3 million, a 203.7% increase compared to a net loss of $7.99 million for the same period in 2024[101] - Total operating expenses for the three months ended September 30, 2025, were $20.75 million, an increase of 814.6% from $2.27 million in the same period in 2024[94] - The accumulated deficit as of September 30, 2025, was approximately $136.9 million[78] - The company incurred a net loss of $24.3 million for the nine months ended September 30, 2025, with an accumulated deficit of $136.9 million[111] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $0.4 million, a decrease of 16.3% from $0.5 million in the same period in 2024[95] - Research and development expenses for the nine months ended September 30, 2025, were $1.0 million, a decrease of 15.1% from $1.66 million in the same period in 2024[102] - Impairment of in-process research and development was $18.6 million for the three months ended September 30, 2025, compared to $0 for the same period in 2024[97] - Impairment of in-process research and development was $18.6 million for the nine months ended September 30, 2025, compared to $0.0 million for the same period in 2024, due to a significant decline in market capitalization[104] Operating Activities - Net cash used in operating activities was approximately $4.7 million for the nine months ended September 30, 2025, an improvement from $6.3 million in 2024[108] - Current assets decreased to $996,000 as of September 30, 2025, from $1.716 million in 2024, while current liabilities increased to $12.766 million from $11.231 million[110] - The working capital deficiency increased to $11.770 million as of September 30, 2025, compared to $9.515 million in 2024[110] Financing and Capital - The company expects to continue incurring significant operating losses and will need additional financing to support ongoing operations[79] - The company plans to raise additional capital to fund continued development of its product candidates and expects to incur substantial operating losses for the next several years[117] - The company expects to rely on the issuance of equity or debt to raise additional funds, which may lead to dilution for existing shareholders[119] - Net cash provided by financing activities increased to $3.7 million for the nine months ended September 30, 2025, from $3.3 million in 2024, driven by proceeds from warrant exercises[109] Stock and Market Activity - The company’s common stock was delisted from Nasdaq on October 6, 2025, and began trading on OTCQB on July 28, 2025[80] - The company has no arrangements in place for any strategic business transactions but continues to evaluate potential collaborations with established pharmaceutical companies[118] Administrative Expenses - General and administrative expenses for the three months ended September 30, 2025, were $1.7 million, a decrease of 5.1% from $1.8 million in the same period in 2024[96] - General and administrative expenses decreased by $0.9 million or 20.6% to $5.3 million for the nine months ended September 30, 2025, compared to the same period in 2024[103]