CervoMed Reports Increased Net Losses and Declining Grant Revenue in Q2 2025

CervoMed Inc., formerly known as Diffusion Pharmaceuticals Inc., reported its financial results for the second quarter of 2025, revealing a significant increase in net losses and a decline in grant revenue compared to the previous fiscal period. The company, which focuses on developing treatments for age-related neurological disorders, recorded a net loss of $6.3 million for the three months ended June 30, 2025, compared to a loss of $2.3 million for the same period in 2024. For the first half of 2025, the net loss reached $11.2 million, up from $4.8 million in the prior year. Grant revenue also fell to $1.8 million in Q2 2025 from $3.3 million in Q2 2024, attributed to the transition from the Initial Phase to the Extension Phase of the RewinD-LB Trial.

Operating expenses for CervoMed increased significantly, with research and development costs rising to $5.1 million in Q2 2025, a 35% increase from $3.8 million in Q2 2024. General and administrative expenses also grew by 30%, totaling $3.3 million in the latest quarter. The overall operating expenses for the second quarter amounted to $8.4 million, a 33% increase from $6.3 million in the same quarter last year. The company’s accumulated deficit as of June 30, 2025, stood at approximately $81.9 million.

Strategically, CervoMed has been focused on advancing its lead drug candidate, neflamapimod, which is currently undergoing clinical trials for the treatment of dementia with Lewy bodies (DLB). The company recently completed the RewinD-LB Trial, a Phase 2b study funded primarily by a $21.3 million grant from the National Institute on Aging (NIA). The trial's results indicated statistically significant improvements in cognitive function, leading the company to plan a Phase 3 trial in the future. Additionally, CervoMed has initiated new trials for neflamapimod targeting other neurological conditions, including frontotemporal dementia and recovery from ischemic stroke.

As of June 30, 2025, CervoMed reported cash and cash equivalents of approximately $8.3 million, alongside marketable securities totaling $25.2 million, bringing total assets to $38.1 million. The company has indicated that it expects its existing cash resources, combined with remaining funds from the NIA grant, will be sufficient to cover its operating expenses for at least the next twelve months. However, CervoMed will continue to seek additional financing through equity offerings and other capital sources to support its ongoing clinical development and operational needs. The company remains committed to addressing its material weaknesses in internal controls over financial reporting, which were identified during its recent audits, and is actively working on remediation plans.