Processa Pharmaceuticals(US:PCSA)2026-03-18 20:05Financial Performance - The company reported an operating loss of $13.99 million for the year ended December 31, 2025, compared to a loss of $12.05 million in 2024, reflecting an increase in operating expenses [360]. - The accumulated deficit reached approximately $100.8 million as of December 31, 2025, with a net loss of about $13.56 million for the year [372]. - The company had no revenue for the years ended December 31, 2025 and 2024, with no immediate sales prospects [361]. Research and Development - Research and development costs increased to $7.81 million in 2025 from $7.27 million in 2024, primarily due to ongoing testing and related expenses for the Phase 1B trial for NGC-Cap [364]. - The company anticipates future increases in research and development costs as it finalizes clinical trials and expands its development team [365]. - The company anticipates ongoing negative cash flows from operating activities due to continued research and development efforts [377]. Expenses - General and administrative expenses rose to $6.18 million in 2025, up from $4.78 million in 2024, driven by increases in salaries, stock-based compensation, and professional fees [368]. - Net cash used in operating activities increased to $11,385,195 in 2025 from $11,245,042 in 2024, primarily due to higher costs related to the Phase 2 trial for NGC-Cap and increased payroll expenses [377]. - As of December 31, 2025, prepaid expenses included $1.0 million for advanced payments related to Phase 1B and Phase 2 trials of NGC-Cap [378]. Cash and Financing - Cash and cash equivalents stood at $5.5 million as of December 31, 2025, following a net cash increase of $4.35 million during the year [371]. - The company plans to raise additional capital in the second quarter of 2026 to support ongoing research and development activities [372]. - Net proceeds from financing activities in 2025 totaled approximately $10.6 million from the sale of common stock and warrants [380]. - In 2024, net proceeds from financing activities amounted to $6.3 million from the sale of common stock in a public offering [381]. - The company has filed a registration statement for an at-the-market offering of up to $50 million, with an initial offering price of up to $5.2 million [359]. Digital Assets - The company recorded $295,180 in unrealized gains on digital assets and $109,491 in interest income for the year ended December 31, 2025 [369]. - The company used $850,000 in investing activities to purchase digital assets in 2025 [379]. - Digital assets are measured at fair value, with significant volatility and liquidity considerations impacting valuation [395]. Contracts and Obligations - The company has entered into contracts with CROs and clinical supply manufacturers, which are generally cancelable and not included in contractual obligations [382]. - No off-balance sheet arrangements were reported during the periods presented [384]. Tax Considerations - The company recorded a valuation allowance for deferred tax assets, as it is more likely than not that benefits will not be realized [393].