Tue, May 14, 9:08 PM (73 days ago)
Adial Pharmaceuticals, Inc. reported a significant increase in net loss for Q1 2024, driven by higher research and development (R&D) expenses and a substantial inducement expense related to warrant exercises. The company incurred a net loss of $6.48 million, compared to $2.91 million in Q1 2023. This increase was primarily due to a $4.47 million non-cash inducement expense and higher R&D costs. Cash and cash equivalents increased to $5.03 million from $2.83 million at the end of 2023, primarily due to $3.82 million raised from warrant exercises. However, the company’s cash burn rate remains high, with $1.63 million used in operating activities. Adial anticipates needing additional financing to continue operations beyond Q1 2025. The company faces uncertainties regarding its ability to secure additional funding, which is critical for the continued development of its lead product candidate, AD04, for Alcohol Use Disorder. The company’s financial health remains a concern, with an accumulated deficit of $75.27 million as of March 31, 2024.