Mon, May 12, 1:07 PM (63 days ago)
**CervoMed Inc. (CRVO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1.9 million (down 18% YoY) from NIA grant, primarily supporting the RewinD-LB Trial. - **Operating Expenses:** $7.2 million (up 46% YoY), driven by increased R&D and G&A expenses. - **Net Loss:** $4.9 million (up 95% YoY), reflecting higher operating expenses and lower grant revenue. - **Cash Position:** $35.2 million in cash and marketable securities as of March 31, 2025. - **Cash Burn:** $3.9 million used in operating activities, offset by $5.4 million from investing activities. **Key Metrics:** - **Profit Margins:** Negative, with a net loss margin of approximately -258%. - **Cash Flow:** Negative operating cash flow of $3.9 million, with positive investing cash flow of $5.4 million. - **Earnings Changes:** Net loss per share increased to $0.56 from $0.41 YoY. **Quarterly Performance Discussion:** - **Revenue:** Decreased due to the completion of the Initial Phase of the RewinD-LB Trial and transitioning to the Extension Phase. - **Expenses:** Increased R&D expenses due to CMC activities, non-clinical studies, and clinical trial costs. G&A expenses rose due to headcount and outsourced services. - **Cash Flow:** Negative operating cash flow due to net loss and changes in operating assets and liabilities. **Trends and Uncertainties:** - **Positive Trends:** Successful Phase 2b trial results for neflamapimod, potential for Phase 3 discussions with the FDA. - **Uncertainties:** Dependence on additional financing, regulatory approval risks, and competition. - **Future Operations:** Plans to initiate Phase 2a trials for ischemic stroke and FTD, continue RewinD-LB Trial Extension Phase. **Impact on Future Operations:** - **Financing Needs:** CervoMed will require additional capital to advance neflamapimod through clinical development and fund operations. - **Regulatory:** Pending 32-week results from the RewinD-LB Trial Extension Phase and potential Phase 3 plans. - **Market:** Potential market for neflamapimod in DLB and other neurodegenerative diseases, pending successful clinical trials and regulatory approval.