Azitra Reports $3.07 Million Net Loss in Q1 2025, Faces Funding Challenges

Azitra, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $3.07 million, or $0.23 per share, compared to a net loss of $2.93 million, or $4.32 per share, in the same period of the previous year. The company’s total operating expenses increased to $3.10 million from $2.96 million year-over-year, primarily driven by higher general and administrative costs, which rose to $1.85 million from $1.49 million. Research and development expenses decreased slightly to $1.25 million from $1.47 million, reflecting ongoing efforts to manage costs while advancing its product pipeline.

In terms of liquidity, Azitra's cash and cash equivalents decreased to $3.21 million as of March 31, 2025, down from $4.55 million at the end of 2024. The company’s total assets also declined to $5.91 million from $7.36 million, while total liabilities decreased to $1.50 million from $1.66 million. The reduction in liabilities was attributed to a decrease in accrued expenses and operating lease liabilities. The company’s accumulated deficit now stands at $60.6 million, raising concerns about its ability to continue as a going concern without securing additional funding.

Strategically, Azitra has been active in the capital markets, completing several follow-on public offerings. In January 2025, the company raised approximately $1.2 million by issuing 4.86 million shares at $0.30 per share. This was followed by another offering in February 2025, which generated about $561,000 from the sale of 2.50 million shares at $0.28 per share. These capital raises are part of Azitra's strategy to fund its ongoing research and development efforts as it remains in the pre-commercialization phase of its product pipeline.

Operationally, Azitra continues to focus on its mission to develop novel therapeutics for skin diseases through its synthetic biology platform. The company maintains research facilities in Branford, Connecticut, and Montreal, Canada, and has expanded its laboratory and manufacturing capabilities in Groton, Connecticut. However, the company has not yet reported any product revenue, and its reliance on external funding remains critical for its future operations. The management has indicated that it will continue to seek additional financing to support its business objectives, although there is no assurance that such funding will be secured.

Looking ahead, Azitra faces significant challenges as it navigates the complexities of product development and regulatory approval processes. The company has acknowledged the uncertainty surrounding its ability to continue as a going concern, emphasizing the need for substantial additional funds to complete product development and cover anticipated losses. As it moves forward, Azitra's ability to secure financing and successfully advance its product candidates will be crucial for its long-term viability and growth in the competitive biotechnology landscape.