Veru(US:VERU)2026-02-11 15:32Financial Performance - Veru Inc. reported no net revenues for the three months ended December 31, 2025, compared to $4.48 million for the same period in 2024[38]. - The company incurred total non-operating expenses of $3.33 million for the three months ended December 31, 2024, contributing to a loss before income taxes of $7.06 million[38]. - The net loss for the three months ended December 31, 2025, was $5,332,579, compared to a net loss of $8,945,347 in 2024, indicating an improvement of 40.5%[99]. - For the three months ended December 31, 2025, total operating expenses were $5,424,015, a decrease of 50.5% from $10,943,943 in 2024[99]. - Research and development expenses for the same period were $1,344,182, down from $5,716,830 in 2024, representing a reduction of 76.6%[99]. - General and administrative expenses decreased to $4,079,833 in 2025 from $5,227,113 in 2024, a decline of 21.9%[99]. - Net cash used in operating activities was $6.2 million for the three months ended December 31, 2025, down from $11.3 million in 2024, a reduction of 45.8%[100]. - Cash, cash equivalents, and restricted cash increased to $32,991,417 as of December 31, 2025, compared to $15,794,562 in 2024, reflecting an increase of 108.5%[100]. Asset Sales and Discontinued Operations - The loss on the sale of the FC2 business was $4.1 million, calculated as the difference between net proceeds of $16.5 million and the total carrying value of $20.6 million[33]. - The purchase price for the FC2 Business Sale was $18.0 million in cash, with net proceeds after costs amounting to $16.5 million[33]. - The FC2 Business Sale represented a strategic shift, with all direct revenues and expenses related to the FC2 business classified within loss from discontinued operations for the three months ended December 31, 2024[35]. - The company sold substantially all assets related to its FDA-approved commercial product, the FC2 Female Condom, on December 30, 2024[22]. - The company recorded a gain of $0.7 million from the sale of ENTADFI assets during the three months ended December 31, 2024[94]. - The company has a total of $20.0 million in purchase price from the sale of ENTADFI assets, with $6.0 million paid at closing and additional payments structured through promissory notes[92]. - There was a net loss from discontinued operations of $(7,135,444) in 2024, which did not occur in 2025[99]. Financial Position and Capital Needs - The company had negative cash flow from operations and requires substantial capital to support drug development and commercialization efforts[30]. - As of the issuance date of the financial statements, the company's cash and cash equivalents were insufficient to fund operations for the next twelve months[30]. - The company has substantial doubt regarding its ability to continue as a going concern for at least twelve months following the issuance date of the financial statements[31]. - The Company has an allowance for credit losses of $3.9 million related to receivables from The Pill Club due to its Chapter 11 bankruptcy filed on April 18, 2023[44]. Shareholder and Legal Matters - The company is involved in multiple shareholder lawsuits, collectively referred to as "Shareholder Litigation," but is unable to estimate potential losses related to these lawsuits[85]. - The company has not recorded a liability for future milestone payments related to technology or intellectual property licenses, as these are not reasonably estimable[87]. Stock and Equity Transactions - The Company completed a public offering on October 31, 2025, raising approximately $23.4 million in net proceeds from the sale of 1,400,000 shares of common stock and warrants[57]. - The Company issued 7,000,000 pre-funded warrants with an exercise price of $0.001 during the three months ended December 31, 2025[58]. - The Company issued 16,800,000 warrants with an exercise price of $3.00 during the three months ended December 31, 2025[59]. - The Company entered into a Lincoln Park Purchase Agreement allowing the sale of up to $100 million of common stock over 36 months, later amended to $50 million until at least $50 million is sold[60]. - As of December 31, 2025, the Company sold 302,500 shares under the Lincoln Park Purchase Agreement, generating proceeds of $3.1 million[64]. - The Company issued 80,000 shares to Lincoln Park as consideration for the Purchase Agreement, valued at $1 million[65]. - The aggregate number of shares that can be sold under the Lincoln Park Purchase Agreement is capped at 1,767,850 shares, approximately 19.99% of the outstanding shares prior to the agreement[63]. - The Company has 400,000 shares available for issuance under the 2022 Employment Inducement Equity Incentive Plan as of December 31, 2025[67]. Accounting and Compliance - The company is currently evaluating the impact of adopting new accounting standards, including ASU 2023-09 and ASU 2024-03, which may affect future disclosures[26][27]. - The company has a full valuation allowance for deferred tax assets, resulting in zero income tax expense for the periods presented[90]. Other Financial Metrics - The Company recognized a gain on extinguishment of debt of $8.6 million related to the change of control payment of $4.2 million made in connection with the FC2 Business Sale[50]. - The company experienced a change in fair value of equity securities, resulting in a loss of $(120,078) in 2025, compared to a loss of $(349,078) in 2024[99]. - The company has a tail product liability insurance coverage amounting to $10.0 million for claims arising from previously sold products[79]. - The total lease cost for the three months ended December 31, 2025, was $194,118, compared to $190,092 in 2024[76]. - The weighted-average remaining lease term for operating leases as of December 31, 2025, was 4.2 years, with a weighted-average discount rate of 7.1%[78]. - The Company recorded a reduction in share-based compensation expense of $44,000 for stock options forfeited during the three months ended December 31, 2025[70]. - The Company has unrecognized compensation expense of approximately $2.4 million related to unvested stock options, expected to be recognized over a weighted average period of 2.4 years[73]. - Goodwill remained unchanged at $6.9 million for both December 31, 2025, and September 30, 2025[47]. - Total property and equipment net value decreased to $336,615 as of December 31, 2025, down from $364,808 as of September 30, 2025[46].