Lisata Therapeutics(LSTA) - 2025 Q4 - Annual Report

Revenue and Expenses - Revenue for the year ended December 31, 2025, was $0.2 million, a decrease of $0.8 million or 80% compared to $1.0 million in 2024[382] - Total operating expenses decreased by $5.0 million or 21.5% to $18.4 million in 2025 from $23.4 million in 2024[383] - Research and development expenses were approximately $7.9 million in 2025, down $3.4 million or 29.9% from $11.3 million in 2024[390] - General and administrative expenses decreased by $1.6 million or 13.6% to approximately $10.4 million in 2025 compared to $12.1 million in 2024[390] - Total other income decreased by approximately $1.0 million or 59.3% to $0.7 million in 2025 from $1.6 million in 2024[385] Net Loss and Financial Position - Net loss for the year ended December 31, 2025, was $16.6 million, an improvement of $3.4 million or 17% from a net loss of $20.0 million in 2024[381] - Cash and cash equivalents as of December 31, 2025, were approximately $16.0 million, with working capital of approximately $14.6 million[388] Acquisition and Agreements - The proposed acquisition by Kuva Labs Inc. includes a cash offer of $5.00 per share plus a contingent cash payment of $1.00 per CVR if certain milestones are met[377] - The termination of the Exclusive License and Collaboration Agreement with Qilu Pharmaceutical Co., Ltd. was effective January 23, 2026, ending potential milestone payments of up to $200 million[380] Going Concern and Liquidity - Management has expressed substantial doubt regarding the company's ability to continue as a going concern for the next twelve months[398] - The company expects to utilize existing cash balances and various means to meet short and long-term liquidity needs, including potential debt or equity issuances, partnerships, and asset sales[399] - The company acknowledges that additional financing may not be available on acceptable terms, which could delay business expansion or require unfavorable funding terms[401] Stock Issuance and Market Value - As of August 20, 2024, the aggregate market value of the company's outstanding common stock held by non-affiliates was approximately $29.6 million, allowing for an offering of $9,855,890 under the ATM Agreement[400] - During the twelve months ended December 31, 2025, the company issued 262,765 shares of common stock under the ATM Agreement for net proceeds of $784,761, totaling 330,938 shares issued since inception for net proceeds of $1,065,608[400] Accounting Policies and Estimates - The company’s financial statements require management to make estimates and judgments that could differ from actual results, impacting the carrying value of assets and liabilities[402] - Critical accounting policies are essential to the company's financial condition and require complex judgments in their application[403] - Share-based compensation expenses are recognized over the requisite service period based on the grant date fair value, with estimates made for performance-based awards[404]