Atossa Therapeutics Reports $6.7 Million Net Loss in Q1 2025, Focuses on Breast Cancer Treatment

Atossa Therapeutics, Inc. reported a net loss of $6.7 million for the first quarter of 2025, compared to a net loss of $5.9 million for the same period in 2024. The company's total operating expenses increased to $7.4 million from $7.0 million year-over-year, primarily driven by higher research and development costs, which rose by 11% to $4.2 million. The increase in R&D expenses was attributed to a rise in compensation costs due to an increase in headcount and higher spending on regulatory consulting services. Interest income also decreased to $720,000 from $1.1 million, reflecting a reduction in cash balances.

As of March 31, 2025, Atossa had cash and cash equivalents of $65.1 million, down from $71.1 million at the end of 2024. The company reported total assets of $70.7 million and total liabilities of $5.4 million, resulting in stockholders' equity of $65.3 million. The company has not yet established a consistent source of revenue to cover its operating costs and anticipates needing to raise additional capital to fund its operations in the future.

In terms of strategic developments, Atossa is focusing on its lead product candidate, (Z)-endoxifen, which is being developed for the treatment of breast cancer. The company has initiated engagement with the U.S. Food and Drug Administration (FDA) to advance its clinical trials, particularly for a metastatic breast cancer indication. The company has also completed several Phase 1 and Phase 2 clinical studies for (Z)-endoxifen, with encouraging results reported in previous trials. Atossa's business strategy includes pursuing partnerships and collaborations to enhance its product development pipeline.

Operationally, Atossa has maintained a consistent employee headcount, which has contributed to increased compensation expenses. The company continues to rely on third-party service providers for critical operational activities, including clinical trials and product manufacturing. As of May 1, 2025, Atossa had 129.2 million shares of common stock outstanding. The company is classified as a non-accelerated filer and a smaller reporting company, indicating its status within the regulatory framework.

Looking ahead, Atossa's management believes that its current cash reserves will be sufficient to fund operations for at least the next 12 months. However, the company acknowledges the need for substantial additional capital to support its ongoing development efforts. The company is also facing challenges related to compliance with Nasdaq listing requirements, as it has received a notice regarding its stock price falling below the minimum bid requirement. Atossa's future performance will depend on its ability to successfully navigate these financial and operational challenges while advancing its clinical programs.