Alaunos Therapeutics Reports Modest Revenue Increase and Decreased Net Loss in Q1 2025

Alaunos Therapeutics, Inc. reported its financial results for the first quarter of 2025, revealing a modest revenue increase to $2,000, up from $1,000 in the same period last year. The company continues to operate at a loss, posting a net loss of $1.1 million for the quarter, a decrease from a net loss of $1.7 million in the first quarter of 2024. The reduction in losses is attributed to a significant decrease in general and administrative expenses, which fell to $747,000 from $1.6 million year-over-year, primarily due to cost-cutting measures following a strategic reprioritization of the company's operations.

Total operating expenses for the quarter were $1.1 million, down from $1.7 million in the prior year, reflecting a notable increase in research and development expenses to $347,000, compared to $126,000 in the first quarter of 2024. This increase is linked to ongoing regulatory activities and consulting fees associated with the company's new focus on developing small molecule therapeutics for obesity and metabolic disorders. The company has not generated any product revenue and has accumulated a deficit of approximately $921.5 million since its inception in 2003.

In terms of operational developments, Alaunos has shifted its focus from its previous TCR-T Library Phase 1/2 Trial to the development of small molecule oral obesity treatments. The company is currently conducting in vitro studies to evaluate the efficacy of its candidate compounds, with results expected in the second quarter of 2025. The company has also engaged a contract development and manufacturing organization to assist in the production of active pharmaceutical ingredients for these candidates. As of March 31, 2025, Alaunos had 1,601,252 shares of common stock outstanding and no sales of common stock under its existing equity distribution agreement.

Alaunos faces significant challenges ahead, particularly regarding its liquidity. As of March 31, 2025, the company reported cash and cash equivalents of $319,000, down from $1.1 million at the end of 2024. The company anticipates that its current cash resources will only be sufficient to fund operations into the second quarter of 2025. Furthermore, on April 7, 2025, Alaunos received a notice from Nasdaq indicating that it does not meet the minimum stockholders' equity requirement for continued listing, which could further complicate its financial situation. The company plans to submit a compliance plan to Nasdaq within the required timeframe.

Looking forward, Alaunos is exploring various strategic alternatives, including potential mergers, acquisitions, or partnerships, to secure additional funding and extend its operational runway. The company has engaged Cantor Fitzgerald & Co. as a strategic advisor in this process. However, the ability to execute these plans remains uncertain, and the company has expressed substantial doubt regarding its ability to continue as a going concern if it cannot secure additional financing.