Financial Performance - Tvardi reported net losses of $5.5 million and $10.9 million for the three and nine months ended September 30, 2025, respectively, compared to net losses of $5.5 million and $16.7 million for the same periods in 2024[129]. - The accumulated deficit as of September 30, 2025, was $103.2 million, up from $92.2 million as of December 31, 2024[129]. - The net loss for the three months ended September 30, 2025, was $5.5 million, a slight increase of 0.3% compared to a net loss of $5.5 million in 2024[193]. - Total operating expenses for the nine months ended September 30, 2025, were $19.2 million, an increase of 10.7% from $17.3 million in 2024[193]. - General and administrative expenses for the nine months ended September 30, 2025, totaled $6.6 million, a significant increase of 194.1% from $2.3 million in 2024[201]. - The increase in general and administrative expenses was primarily driven by a $2.7 million rise in professional fees due to legal and audit costs associated with the Merger[201]. - Other income, net for the nine months ended September 30, 2025, was $7.2 million, primarily due to a $12.8 million remeasurement gain on Convertible Notes, partially offset by a $4.9 million loss[205]. - Net cash used in operating activities was $17.8 million for the nine months ended September 30, 2025, compared to $13.5 million for the same period in 2024, indicating a 31.6% increase in cash outflow[215]. - Net cash used in investing activities was $15.1 million for the nine months ended September 30, 2025, due to purchases of short-term investments[220]. - The net cash provided by financing activities for the nine months ended September 30, 2025, was approximately $22.7 million, primarily from the Merger and stock option exercises[222]. Research and Development - Preliminary data from the Phase 2 clinical trial of TTI-101 in idiopathic pulmonary fibrosis (IPF) indicated that the study did not meet its goals, with discontinuation rates of 56.7% and 62.1% for the 400mg and 800mg treatment arms, respectively[138][141]. - The Phase 2 trial enrolled 88 patients, with 58% receiving concomitant therapy, and demonstrated no statistically significant differences in efficacy between treatment arms[140][144]. - Tvardi's second product candidate, TTI-109, is currently in a Phase 1 trial, with topline data expected in the first half of 2026[127][147]. - Research and development expenses are expected to increase substantially as Tvardi continues to invest in the development of TTI-101 and TTI-109[180]. - Research and development expenses decreased to $3.6 million for the three months ended September 30, 2025, from $4.8 million in the same period of 2024, a reduction of 24.9%[194]. - Research and development expenses for the nine months ended September 30, 2025, were $12.5 million, down 16.8% from $15.0 million in 2024[196]. Cash and Investments - As of September 30, 2025, Tvardi had $21.4 million in cash and cash equivalents and $15.0 million in short-term investments[129]. - As of September 30, 2025, there were 551,221 shares of Tvardi's common stock remaining available for grant under the 2025 Equity Incentive Plan[154]. - As of September 30, 2025, Tvardi had $21.4 million in cash and cash equivalents and $15.0 million in short-term investments, down from $31.6 million in cash and cash equivalents as of December 31, 2024[256]. Financing and Capital Structure - The company has historically financed operations through the issuance of preferred stock and convertible debt, raising $28.3 million from Convertible Notes and $83.4 million from preferred stock and convertible debt in 2018 and 2021[128]. - Following the merger with Cara Therapeutics, Tvardi acquired approximately $23.9 million in net assets[129][148]. - Following the Merger, equity holders of Legacy Tvardi owned approximately 84.5% of the outstanding Tvardi common stock on a fully diluted basis[151]. - The Convertible Notes issued by Legacy Tvardi in December 2024 had an aggregate principal amount of approximately $28.3 million, accruing interest at 8% per annum[155]. - Upon the closing of the Merger, the outstanding principal balance of the Convertible Notes converted into 1,265,757 shares of Tvardi common stock, resulting in a gain of $12.8 million recorded in Q2 2025[156]. - Future funding requirements will depend on various factors, including the costs and timing of clinical trials and regulatory approvals[214]. - Tvardi plans to seek additional funding through equity offerings or debt financings following its Merger with Cara in April 2025[210]. Market and Operational Risks - Tvardi has an accumulated deficit of $103.2 million as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern[210]. - The company has incurred significant operating losses since inception and does not expect to generate revenue from product sales for several years[208]. - The fair value of the Convertible Notes at the time of conversion was $23.1 million, with a change in fair value of $12.8 million recorded as other income for Q2 2025[244]. - Tvardi's primary exposure to market risk is interest rate sensitivity, with an immediate 10% change in interest rates expected to have no material effect on fair market value[256]. - Inflation has not had a material effect on Tvardi's results of operations during the reported periods[257]. - The company has not made any material adjustments to its prior estimates of accrued research and development expenses[235]. - Payments under contracts with service providers depend on successful patient enrollment and completion of clinical trial milestones[235].

Financial Performance - For the three months ended September 30, 2025, the company generated revenues of $0.1 million, a decrease of 83.3% compared to $0.6 million for the same period in 2024[90] - Total operating expenses for the three months ended September 30, 2025 were $7.1 million, down 33% from $10.6 million for the same period in 2024[92] - The net loss for the three months ended September 30, 2025 was $5.9 million, an improvement of 39.2% compared to a net loss of $9.7 million for the same period in 2024[97] - For the nine months ended September 30, 2025, revenues were $0.4 million, a significant decrease of 89.5% from $3.8 million for the same period in 2024[98] - Total operating expenses for the nine months ended September 30, 2025 were $23.9 million, a decrease of 23.4% compared to $31.2 million for the same period in 2024[101] - The company reported a net loss of $21.2 million for the nine months ended September 30, 2025, an improvement from a net loss of $26.6 million for the same period in 2024[107] Research and Development - Research and development expenses for the nine months ended September 30, 2025 were $14.0 million, down 13.6% from $16.2 million for the same period in 2024[104] - The company plans to submit a new version of the Co-Dx PCR COVID-19 test for 510(k) OTC clearance after collecting clinical evaluation data[82] - The proprietary Co-Primers technology is being utilized for applications beyond infectious disease testing, including genetic trait identification in plants and animals[89] Joint Ventures and Approvals - A joint venture was formed with Arabian Eagle Manufacturing to develop and commercialize Co-Dx technologies in Saudi Arabia and 18 other countries[83] - The company has received regulatory approval for PCR diagnostic tests for various diseases, including COVID-19 and influenza, in multiple countries[88] Cash Flow and Financing - Cash and cash equivalents stood at $11.4 million as of September 30, 2025, with total current assets of $14.1 million compared to total current liabilities of $3.7 million[109] - Net cash used in operating activities increased to $22.9 million for the nine months ended September 30, 2025, compared to $20.9 million for the same period in 2024[110] - Net cash provided by investing activities rose to $26.6 million for the nine months ended September 30, 2025, up from $16.8 million in the prior year[111] - The company raised approximately $3.8 million from a registered direct offering of 9,619,000 shares at $0.40 per share on September 18, 2025[115] - A new Equity Distribution Agreement was established with Maxim Group LLC, allowing for an at-the-market equity offering program of up to $10.0 million[108] - The company completed another registered direct offering in October 2025, generating gross proceeds of approximately $7.0 million[118] - The company anticipates continued operating losses and cash usage in the near term, indicating a potential need for additional financing[114] Compliance and Controls - The company has no off-balance sheet arrangements[121] - Disclosure controls and procedures were evaluated as effective as of September 30, 2025[122]

Financial Performance - Rental revenues for the three months ended September 30, 2025, were $16,602,000, up from $14,533,000 in the same period of 2024, representing a year-over-year increase of about 14.2%[15] - Net income for the three months ended September 30, 2025, was $5,547,000, compared to a net loss of $3,339,000 in the same period of 2024, indicating a significant turnaround[15] - The company reported a net income per share of $0.19 for the three months ended September 30, 2025, compared to a net loss per share of $0.00 in the same period of 2024[15] - For the nine months ended September 30, 2025, the company reported a net loss of $320,000 compared to a net loss of $9.721 million for the same period in 2024[24] - For the three months ended September 30, 2025, total rental revenues were $16,602,000, an increase of 14.3% from $14,533,000 in the same period of 2024[93] - For the three months ended September 30, 2025, the net income attributable to common shareholders was $4.015 million, resulting in basic earnings per share of $0.19[124] Assets and Liabilities - Total assets increased to $846,790,000 as of September 30, 2025, compared to $821,809,000 on December 31, 2024, reflecting a growth of approximately 3.3%[13] - Total liabilities rose to $342,639,000 as of September 30, 2025, from $299,131,000 on December 31, 2024, marking an increase of approximately 14.5%[13] - Cash and cash equivalents increased to $19,595,000 as of September 30, 2025, compared to $5,094,000 on December 31, 2024, showing a substantial improvement in liquidity[13] - The company’s accumulated deficit increased to $19,285,000 as of September 30, 2025, from $6,834,000 on December 31, 2024[13] - The company’s equity decreased to $504,151,000 as of September 30, 2025, from $522,678,000 on December 31, 2024, representing a decline of about 3.5%[13] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $12,672,000, an increase from $11,347,000 in the same period of 2024, reflecting a rise of about 11.6%[15] - Interest expense for the three months ended September 30, 2025, was $4,564,000, down from $6,463,000 in the same period of 2024, indicating a decrease of approximately 29.3%[15] - The company incurred depreciation and amortization expenses of $24.622 million for the nine months ended September 30, 2025, compared to $21.415 million in 2024[24] - The amortization of in-place leases and leasing fees for the nine months ended September 30, 2025, was $13,367,000, compared to $12,632,000 for the same period in 2024[96] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $25.617 million, an increase from $15.272 million in 2024[24] - The company reported a net increase in cash and cash equivalents of $14.501 million during the period, ending with $19.595 million in cash[24] - The company made an acquisition of real estate held for investment totaling $83.797 million during the nine months ended September 30, 2025[24] - The Company sold 25 real estate properties for $57.6 million during the nine months ended September 30, 2025, resulting in net proceeds of $54.5 million and a gain on sale of $4.3 million[89] Shareholder Information - The company declared distributions of $0.215 per share and OP Unit, totaling $6.126 million for the nine months ended September 30, 2025[24] - The Company completed its IPO on October 3, 2024, issuing 13,200,000 shares at $19.00 per share, resulting in net proceeds of $233.9 million[112] - The Company declared total dividends of $0.645 per share during the nine months ended September 30, 2025, amounting to $18.406 million[115] Debt and Interest Rate Management - The carrying amount of the Company's debt as of September 30, 2025, was $308.5 million, with a fair value of $308.5 million[80] - The weighted average interest rate on the company's debt was 5.36% as of September 30, 2025, down from 5.65% as of December 31, 2024[100] - The company entered into interest rate swap agreements with a notional amount of $200 million, effectively converting a portion of floating-rate debt to a fixed rate of 3.664%[107] - The Company entered into five interest rate swap agreements with an aggregate notional amount of $100.0 million, converting floating-rate debt to a fixed rate of 3.22%[108] - The Company expects a net gain of $1.7 million related to interest rate swap agreements to be reclassified from AOCI to earnings over the next 12 months[111] Real Estate Portfolio - As of September 30, 2025, the company owned a diversified portfolio of 307 properties across 37 U.S. states[30] - As of September 30, 2025, the Company had a portfolio of 307 real estate properties with an average remaining lease term of approximately 7.2 years[86] - During the nine months ended September 30, 2025, the Company acquired 25 properties for an aggregate purchase price of $83.8 million, all leased at acquisition with an average remaining lease term of approximately 11.6 years[87] - The Company recorded a gain on the sale of real estate of $9.244 million for the nine months ended September 30, 2025[24] Compliance and Regulations - The Company intends to distribute 100% of its taxable income annually, thus not required to pay federal income tax on its taxable income[70] - The Company believes it was in compliance with all loan covenants as of September 30, 2025[104] - The Company is subject to a 4% non-deductible excise tax on any amount by which distributions are less than the required percentages of ordinary income, capital gain net income, and undistributed taxable income[69] Miscellaneous - The Company completed a series of REIT contribution transactions and internalization of management functions, establishing an UPREIT structure with a publicly-traded REIT[34] - The Company has issued restricted stock units under its 2024 Omnibus Equity and Incentive Plan, with compensation expense recognized over the vesting period[68] - The total stock-based compensation expense recognized was $0.8 million for the three months and $1.6 million for the nine months ended September 30, 2025[120] - The Company recorded amortization of assembled workforce of $0.1 million and $0.3 million for the three and nine months ended September 30, 2025, respectively[119]

Revenue Growth - Third quarter revenue reached $76.5 million, representing a 280% year-over-year growth[4] - Revenue for the nine-month period totaled $211.6 million, a 223% increase compared to the same period last year[4] - The Angel Guild, the company's recurring revenue stream, contributed $59.2 million, accounting for 77% of total third quarter revenue, with a growth of 556% year-over-year[4] - Licensed content and other revenue surged to $76.39 million in Q3 2025, up from $18.42 million in Q3 2024, representing a growth of 314%[18] - The company raised $130.35 million from financing activities in the nine months ended September 30, 2025, compared to $25.03 million in 2024, indicating a growth of 420%[19] Membership and Engagement - The Angel Guild membership grew to 1.6 million, up 19% from the previous quarter and 620% year-over-year[4] - Average Revenue Per Member (ARPM) was $13.70 for the trailing twelve months ended September 30, 2025[4] Financial Losses - The net loss for the third quarter was $38.6 million, compared to a net loss of $13.9 million in the same quarter of 2024[10] - Operating loss for the nine months ended September 30, 2025, was $93.23 million, compared to a loss of $57.96 million for the same period in 2024, reflecting a 61% increase in losses[18] - Net loss attributable to controlling interests for the nine months ended September 30, 2025, was $91.85 million, compared to $51.18 million in 2024, indicating an increase of 79%[18] Expenses - Selling and marketing expenses for the third quarter were $64.7 million, significantly up from $16.6 million in the prior year[8] - Total operating expenses for the nine months ended September 30, 2025, were $304.86 million, up from $123.45 million in 2024, representing a 147% increase[18] - Cash paid for interest in the nine months ended September 30, 2025, was $7.51 million, a significant increase from $456,144 in 2024[20] Cash and Assets - As of September 30, 2025, cash and cash equivalents were $63.3 million, compared to $7.2 million at the end of 2024[11] - Cash and cash equivalents at the end of Q3 2025 totaled $63.33 million, a substantial increase from $11.34 million at the end of Q3 2024[19] - Net cash used in operating activities for the nine months ended September 30, 2025, was $58.65 million, compared to $39.58 million in 2024, marking a 48% increase in cash outflow[19] - The company reported a net gain on digital assets of $6.23 million for the nine months ended September 30, 2025, compared to $1.59 million in 2024, reflecting a growth of 291%[19] Liabilities and Acquisitions - Total liabilities as of September 30, 2025, were $159.8 million, an increase from $94.7 million at the end of 2024[17] - The company announced the acquisition of the DAVID franchise and intellectual property from Slingshot USA, with the film set to release on December 19, 2025[3]

Clinical Development - Tebipenem HBr completed a Phase 3 trial, meeting its primary endpoint and was stopped early for efficacy, with results presented at IDWeek on October 20, 2025 [201][208]. - The company plans to prioritize finalizing Phase 3 clinical trial activities for tebipenem HBr under the GSK License Agreement, with cash runway sufficient to fund operations into 2028 [203]. - The company ceased development of SPR206 and SPR720, focusing on completing obligations under the GSK License Agreement and other corporate activities [202][212]. Financial Performance - As of September 30, 2025, the company had an accumulated deficit of $482.6 million and cash and cash equivalents of $48.6 million, expecting to incur significant expenses and operating losses for at least the next year [203]. - Total revenues for the three months ended September 30, 2025, were $5,442,000, a decrease of $8,027,000 (approximately 59.6%) compared to $13,469,000 in 2024 [232]. - Grant revenue decreased to $2,394,000 in Q3 2025 from $5,650,000 in Q3 2024, a decline of $3,256,000 (approximately 57.5%) primarily due to a reduction in BARDA contract revenue [232]. - Collaboration revenue from GSK fell to $3,048,000 in Q3 2025 from $7,754,000 in Q3 2024, a decrease of $4,706,000 (approximately 60.6%) [233]. - For the nine months ended September 30, 2025, total revenues were $25,505,000, a decrease of $7,428,000 (approximately 22.5%) from $32,933,000 in 2024 [246]. - Collaboration revenue for the nine months ended September 30, 2025, increased to $19,961,000 from $18,040,000 in 2024, an increase of $1,921,000 (approximately 10.7%) driven by GSK [248]. Expenses and Losses - Total operating expenses for Q3 2025 were $13,358,000, down $18,704,000 (approximately 58.3%) from $32,062,000 in Q3 2024 [232]. - Research and development expenses decreased to $8,597,000 in Q3 2025 from $26,864,000 in Q3 2024, a reduction of $18,267,000 (approximately 68.1%) [236]. - The net loss for Q3 2025 was $7,382,000, an improvement of $10,055,000 (approximately 57.6%) compared to a net loss of $17,437,000 in Q3 2024 [232]. - Direct research and development expenses for the nine months ended September 30, 2025, were $32,875,000, down $35,046,000 (approximately 51.6%) from $67,921,000 in 2024 [249]. - Personnel-related costs for the nine months ended September 30, 2025, were $9.8 million, a slight increase of $0.1 million from $9.7 million in 2024, primarily due to retention bonuses and executive severance expenses [253]. - Total general and administrative expenses for the nine months ended September 30, 2025, were $16.9 million, an increase of $0.2 million from $16.6 million in 2024 [253]. Impairment and Other Charges - An impairment charge of $0.6 million was recorded in Q3 2025 related to the right-of-use asset due to a real estate lease evaluation [224]. - The company recognized $1.1 million in expenses related to a strategic restructuring initiative implemented in October 2024, with no further charges expected [225]. - Impairment charges of $587,000 were recognized in Q3 2025, compared to no charges in Q3 2024 [244]. - Impairment charges related to the right of use asset were $0.6 million for the nine months ended September 30, 2025, compared to no charges in the same period of 2024 [257]. Cash Flow and Funding - Cash and cash equivalents as of September 30, 2025, were $48.6 million, providing a runway to fund operating expenses for at least 12 months [259]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $4.3 million, primarily due to a net loss of $22.9 million [262]. - The company did not undertake any investing or financing activities during the nine months ended September 30, 2025 [266][267]. - The company plans to mitigate funding risks through raising additional capital, potential collaborations, and reducing cash expenditures [269]. Revenue Generation and Future Outlook - The company has not generated any revenue from product sales to date, with future revenue dependent on successful regulatory approval of product candidates [214]. - The company anticipates a portion of future revenue will derive from government awards and collaborations with Pfizer and GSK [215][216]. - The company has not yet commercialized any product candidates and may not generate revenue from sales in the near future [259]. Currency Exposure - The company is exposed to foreign currency exchange rate fluctuations, primarily the Euro, British Pound, and Australian Dollar against the U.S. dollar [277].

Financial Performance - Net loss for Q3 2025 was $4,171, down from $5,087 in Q3 2024, mainly due to prior year revaluation expenses[142] - Net loss for the nine-month period ended September 30, 2025, was $15,760, an increase from $12,503 in the prior-year period, attributed to higher general and administrative expenses and changes in derivative liability[149] - The company has an accumulated deficit of $148,210 as of September 30, 2025, reflecting a history of recurring losses[151] Expenses - General and administrative expenses for Q3 2025 were approximately $1,024, a decrease from $1,063 in Q3 2024, primarily due to reduced board and legal fees[136] - Research and development expenses increased to approximately $3,165 in Q3 2025 from $2,063 in Q3 2024, attributed to product and manufacturing development costs for the Glucotrack CBGM[137] - Research and development expenses increased to approximately $8,186 for the nine-month period ended September 30, 2025, compared to approximately $7,800 for the prior-year period, driven by costs related to the Glucotrack CBGM Product development[144] - Marketing expenses rose to approximately $430 for the nine-month period ended September 30, 2025, up from $295 in the prior-year period, primarily due to increased market research fees[145] Financing Activities - The company sold 206,300 shares at an average price of $18.24 per share in March 2025, generating net proceeds of $3,643[120] - A registered direct offering on February 4, 2025, resulted in the sale of 43,968 shares at $69.00 per share, yielding approximately $2,752 in net proceeds[123] - As of September 30, 2025, there was no remaining capacity available under the ATM Program after selling 414,785 shares at an average price of $10.74 per share[121] - The company anticipates requiring approximately $15.0 million in cash to fund operations over the next twelve months, raising substantial doubt about its ability to continue as a going concern[152] Clinical Development - The company initiated a first-in-human clinical study in Q4 2024, which met all primary and secondary endpoints with a Mean Absolute Relative Difference (MARD) of 7.7% across 122 matched pairs[111] - The company plans to file a pre-investigational device exemption (IDE) submission to the FDA in Spring 2026 for future long-term human clinical trials[113] - The company is committed to advancing its clinical program and intends to implement protocol amendments and product enhancements for the CBGM[112] Other Financial Metrics - Other income increased to $44 for the nine-month period ended September 30, 2025, compared to $12 for the prior-year period[147] - Financing income, net was approximately $68 for the nine-month period ended September 30, 2025, a significant improvement from financing expenses of approximately $1,822 in the prior-year period[148] - The change in derivative liability for the nine-month period ended September 30, 2025, was $3,269, primarily due to adjustments of the estimated fair value of exchanged and repurchased warrants[146] - The company does not have any off-balance sheet agreements[155] Stock Activity - A reverse stock split of 1-for-20 was implemented on February 3, 2025, followed by a 1-for-60 reverse stock split on June 13, 2025[115][117]

Financial Performance - The company reported a net loss of $29,857 thousand for the three months ended September 30, 2025, compared to a net income of $203,748 thousand for the same period in 2024[20]. - Basic earnings per share from continuing operations for the three months ended September 30, 2025, was $(0.98), a decrease from $8.48 in the same period of 2024[19]. - Total revenues for the three months ended September 30, 2025, were $80,848 thousand, down from $290,073 thousand in the same period of 2024, a decline of approximately 72.06%[18]. - Net income for the nine months ended September 30, 2025, was $124.966 million, a decrease from $178.320 million in the same period of 2024, representing a decline of approximately 30%[26]. - For the nine months ended September 30, 2025, total revenues reached $423,919,000, with net income before taxes of $135,093,000[118]. - The company reported net origination gains of $162,029,000 for the nine months ended September 30, 2025[118]. - Total expenses for the three months ended September 30, 2025, were $104,594,000, with salaries and benefits accounting for $37,245,000[116]. - Total expenses for the period were $256.670 million, with salaries, benefits, and related expenses amounting to $105.159 million[119]. Assets and Liabilities - Total assets increased to $30,656,996 thousand as of September 30, 2025, up from $29,156,490 thousand at December 31, 2024, representing a growth of approximately 5.15%[14]. - Total liabilities rose to $30,291,165 thousand as of September 30, 2025, compared to $28,840,826 thousand at December 31, 2024, marking an increase of approximately 5.01%[14]. - The company’s total equity increased to $365,831 thousand as of September 30, 2025, compared to $315,664 thousand at December 31, 2024, reflecting a growth of approximately 15.87%[14]. - Nonrecourse debt at fair value increased to $10,155,869 thousand as of September 30, 2025, from $8,954,068 thousand at December 31, 2024, indicating a rise of approximately 13.43%[14]. - Total cash and cash equivalents and restricted cash at the end of the period was $402.386 million, up from $220.363 million in the previous year, reflecting an increase of approximately 82%[26]. Operational Metrics - Interest income for the three months ended September 30, 2025, was $482,132,000, while interest expense was $404,031,000, resulting in a net portfolio interest income of $78,101,000[116]. - The company reported a total of 9,925,802 Class A shares outstanding as of September 30, 2024, with an additional 13,185,955 LLC units[22]. - The company executed a cancellation of shares to fund employee tax withholdings amounting to $(178,080,000) during the reporting period[24]. - The company reported purchases and originations of loans held for investment of $(2.477) billion for the nine months ended September 30, 2025, compared to $(2.061) billion in 2024, an increase of approximately 20%[26]. - The company reported a total gain included in earnings of $1,452,839 thousand for the nine months ended September 30, 2024, compared to a gain of $541,007 thousand for the three months ended September 30, 2024[72]. Market and Economic Factors - The Company is focused on expanding its core retirement solutions business, leveraging demographic and economic trends to enhance its home equity-based financing solutions[155]. - The Company is monitoring various economic factors, including interest rates and housing market trends, which significantly impact loan origination volumes and overall financial performance[164]. - The Company has streamlined its marketing and originations operations by transitioning sales teams onto a unified loan origination system, enhancing efficiency and brand recognition[157]. Compliance and Legal Matters - The Company was in compliance with all financial covenants as of September 30, 2025[83]. - Legal expenses for the three months ended September 30, 2025, were $0.5 million, compared to $0.7 million for the same period in 2024[99]. - The Company has settled an individual arbitration claim for a minimal amount but is defending a representative claim under the California Private Attorneys General Act (PAGA)[98]. Adjusted Financial Metrics - Adjusted net income for the nine months ended September 30, 2025, decreased by $2.6 million or 14.9% due to cost-cutting initiatives[208]. - Adjusted net income is utilized by management to assess underlying key drivers and operational performance of continuing operations[210]. - Non-GAAP measures, including adjusted net income and adjusted EBITDA, should not be considered as alternatives to U.S. GAAP measures[206].

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $9.1 million, compared to a net loss of $6.8 million for the same period in 2024[169]. - The company did not generate any revenue or other operating income during the three months ended September 30, 2025 and 2024[170]. - Total operating costs and expenses increased to $8.2 million for the three months ended September 30, 2025, up from $7.0 million in the same period of 2024[169]. - Net cash used in operating activities was $13.8 million for the three months ended September 30, 2025, compared to $4.2 million for the same period in 2024[197]. - Interest income, net decreased by $1.1 million during the three months ended September 30, 2025, primarily due to lower cash balances and interest rates[177]. Cash Flow and Investments - Net cash used in investing activities was $28.4 million for the three months ended September 30, 2025, compared to $14.5 million in the same period of 2024[198]. - As of September 30, 2025, the company had $39.6 million in cash and cash equivalents, an increase of $0.1 million from June 30, 2025[185]. - Net cash received in financing activities for Q3 2025 was $37.9 million, up from $16.7 million in Q3 2024, primarily due to common stock issuance proceeds of $11.0 million compared to $7.4 million in the previous year[199]. - Contributions from noncontrolling interest holders amounted to $29.0 million to fund their share of cash calls, with an additional $1.9 million in advance contributions received[199]. - Common stock issuance transaction costs were $0.6 million, with repayments of finance lease liabilities totaling $3.1 million and $0.3 million related to performance bond facility establishment fees[199]. Development Plans and Commitments - The company expects to incur approximately $43.4 million in expenses to progress its development plans for the remainder of the fiscal year ending June 30, 2026[183]. - The company has capital commitments of $75.8 million related to the Beetaloo Joint Venture, which includes drilling and multi-stage hydraulic fracturing of four wells[191]. Foreign Currency and Gains - The company recognized a foreign currency translation gain of $1.7 million for the three months ended September 30, 2025, compared to a gain of $12.1 million in the same period of 2024[178].

Financial Performance - Acrivon Therapeutics reported a net loss of $18.2 million for Q3 2025, an improvement from a net loss of $22.4 million in Q3 2024, representing a 18.8% reduction in losses[6] - Total operating expenses for Q3 2025 were $19.7 million, down from $25.1 million in Q3 2024, indicating a 21.5% decrease[16] Research and Development - Research and development expenses decreased to $13.6 million in Q3 2025 from $18.9 million in Q3 2024, reflecting a 28% reduction due to fewer scheduled milestones and a focus on endometrial cancer[9] - The ongoing Phase 2b trial of ACR-368 for endometrial cancer is designed to evaluate its efficacy in patients who have received prior treatments, with enrollment and dosing ongoing[7] - Initial clinical activity for ACR-2316 has been observed, with tumor shrinkage and confirmed partial responses across several solid tumor types during the Phase 1 trial[7] - Acrivon plans to report initial clinical data from the Phase 1 study of ACR-2316 in the second half of 2025[8] - The company is advancing a new potential first-in-class cell cycle drug discovery program towards candidate nomination in 2025[8] Regulatory and Clinical Designations - ACR-368 has received Fast Track designation from the FDA for its potential as a monotherapy in endometrial cancer patients[12] Financial Position - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $134.4 million, expected to fund operations into Q2 2027[10] Data Presentation and Innovation - The company presented data at the AACR-NCI-EORTC conference demonstrating the predictive capabilities of its AP3 platform in drug design and pathway activity assessment[5]

Financial Performance - Revenue for Q3 2025 was $0, a decrease from $12.2 million in Q3 2024[8] - R&D expenses for Q3 2025 were $1.3 million, down 86.4% from $9.6 million in Q3 2024[9] - G&A expenses remained unchanged at $3.3 million for Q3 2025 compared to Q3 2024[10] - Net loss for Q3 2025 was $4.2 million, compared to a net loss of $7,000 in Q3 2024[10] - Cash, cash equivalents, and short-term investments totaled $33.1 million as of September 30, 2025, up from $22.6 million at the end of 2024[11] - Total stockholders' equity increased to $30.9 million as of September 30, 2025, from $19.1 million at the end of 2024[18] Financing and Funding - The company closed financing of up to $50 million, with an initial tranche of $30 million expected to fund operations through 2027[4] Clinical Development - EQ504 Phase 1 clinical study is expected to initiate in mid-2026[7] - The company aims to achieve proof-of-concept for EQ504 with the addition of ulcerative colitis patient cohorts following the SAD/MAD portion of the study[3] - The company hosted a KOL event discussing the potential of EQ504 in treating ulcerative colitis[5]