Wed, May 14, 9:11 PM (39 days ago)
**Salarius Pharmaceuticals, Inc. (SLRX) Q1 2025 Financial Summary** Salarius Pharmaceuticals, Inc. (SLRX) reported a challenging first quarter of 2025, marked by significant financial uncertainties and strategic maneuvers. The company's financial health reflects substantial operational losses and a precarious liquidity position, underscoring the need for immediate strategic actions to ensure continuity. **Financial Performance:** - **Revenue:** No revenue was generated from product sales. - **Net Loss:** The company reported a net loss of $1,709,533,000, slightly improved from $1,715,290,000 in Q1 2024. - **Operating Expenses:** Total operating expenses were $1,718,695,000, down from $1,771,615,000 in the same period last year, primarily due to cost-saving measures implemented in Q3 2023. - **Research and Development (R&D):** R&D expenses decreased to $75,532,000 from $243,002,000, reflecting curtailed clinical trials and a focus on cost efficiency. - **General and Administrative (G&A):** G&A expenses increased to $1,643,163,000 from $1,528,613,000, driven by higher professional fees related to the proposed merger with Decoy Therapeutics Inc. - **Cash Flow:** Net cash used in operating activities was $1,181,714,000, an improvement from $1,353,955,000 in Q1 2024. Financing activities provided $545,566,000, primarily from equity issuances. **Liquidity and Capital Resources:** - **Cash Position:** As of March 31, 2025, cash and cash equivalents stood at $1,798,380,000, down from $2,434,528,000 at the end of 2024. - **Stockholders' Equity:** Stockholders' equity was $61,866,000, a significant decline from $1,511,695,000 at the end of 2024. - **Funding Needs:** The company anticipates needing additional capital within the next several months to continue operations beyond the second quarter of 2025. **Strategic Initiatives:** - **Merger with Decoy Therapeutics Inc.:** Salarius entered into a merger agreement with Decoy Therapeutics, aiming to address liquidity concerns and strategic growth. The merger is subject to conditions, including a qualified financing of at least $6.0 million and continued listing on Nasdaq. - **Nasdaq Delisting Risk:** The company received notices of non-compliance with Nasdaq's minimum bid price and stockholders' equity requirements. An appeal has been filed with a Nasdaq Hearings Panel to stay the delisting. **Future Outlook:** - **Uncertainties:** The company faces significant uncertainties, including the successful completion of the merger, securing additional financing, and maintaining Nasdaq listing compliance. - **Operational Impact:** Failure to secure necessary financing or complete the merger could lead to a dissolution and liquidation of assets, adversely affecting stockholder value. **Conclusion:** Salarius Pharmaceuticals is at a critical juncture, with its financial health and operational continuity hinging on the successful execution of its merger with Decoy Therapeutics and securing additional financing. The company's strategic initiatives and financial performance metrics indicate a challenging path ahead, requiring careful navigation of regulatory, financial, and operational challenges.