Wed, May 14, 8:04 PM (33 days ago)
**Adial Pharmaceuticals, Inc. (ADIL) Q1 2025 Financial Summary** **Financial Health:** - **Cash Position:** Cash and cash equivalents decreased to $2.4 million from $3.8 million in Q4 2024. - **Liabilities:** Current liabilities increased to $1.3 million from $0.98 million in Q4 2024. - **Stockholders' Equity:** Decreased to $2.1 million from $4.1 million in Q4 2024. **Performance Metrics:** - **Revenue:** No revenue generated. - **Profit Margins:** Negative, with a net loss of $2.2 million. - **Operating Expenses:** Increased by 23% to $2.3 million, driven by higher R&D and G&A expenses. - **Cash Flow:** Net cash used in operating activities was $1.6 million, a slight improvement from Q4 2024. **Earnings Changes:** - **Net Loss:** Decreased to $2.2 million from $6.5 million in Q4 2024. - **Earnings per Share (EPS):** Basic and diluted EPS was $(0.34), an improvement from $(2.19) in Q4 2024. **Quarterly Performance Discussion:** - **R&D Expenses:** Increased by 65% to $0.75 million, primarily due to CMC expenses and consulting for AD04 Phase 3 trial. - **G&A Expenses:** Increased by 9% to $1.52 million, mainly due to higher compensation and consulting. - **Other Income (Expense):** Improved by $179,000 due to a milestone payment from Adovate and increased interest income. **Trends and Uncertainties:** - **Cash Burn:** Continued high cash burn rate, with cash on hand expected to last into Q4 2025. - **Funding:** Raised $2.35 million from warrant exercises in May 2025, but additional capital is needed. - **Regulatory:** Positive interactions with the FDA regarding AD04, but future approval is uncertain. - **Market Risk:** Stock price volatility and potential delisting from Nasdaq due to low stock price and equity. **Future Operations Impact:** - **Phase 3 Trial:** Planning to begin Phase 3 study of AD04 in H2 2025, with estimated costs of $8-12 million per trial. - **Patents:** Recently issued patent for AD04's precision medicine approach. - **Equity Offerings:** Potential dilution from future equity offerings to raise capital. **Ticker:** ADIL **Note:** Amounts are in thousands, except for per-share data. The company's ability to continue as a going concern is uncertain due to recurring losses and the need for additional funding.