Enzon Pharmaceuticals Reports $524,000 Net Loss in Q1 2025, Revenue Remains Zero

Enzon Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $524,000, compared to a net income of $320,000 in the same period of 2024. The company's total revenues remained at zero, as it did not earn any royalties or milestone payments during the quarter. Interest and dividend income decreased by 23% to $497,000, down from $647,000 in the prior year, primarily due to lower interest rates on smaller cash balances. Operating expenses surged by 207% to $1,002,000, largely driven by increased professional fees.

The company's balance sheet as of March 31, 2025, showed total assets of $45.5 million, a decline from $47.2 million at the end of 2024. Current liabilities decreased to $554,000 from $1.7 million, reflecting a reduction in accrued expenses and other liabilities. Stockholders' equity also fell to $1.95 million from $3.01 million, attributed to the net loss and the accretion of dividends on Series C preferred stock. The company continues to hold approximately $44.97 million in cash and cash equivalents, down from $46.86 million at the end of the previous fiscal year.

Enzon has not engaged in any clinical operations for over a decade and has received minimal payments from licensing agreements in recent years. The cancellation of a marketing agreement with Micromet AG, now part of Amgen, further underscores the company's challenges in generating revenue. Enzon's management is actively pursuing potential acquisition transactions to leverage its net operating loss carryforwards (NOLs) and enhance shareholder value, although no actionable transactions have been approved to date.

The company has also established a Section 382 rights plan to protect its NOLs from potential limitations due to ownership changes. As of March 31, 2025, Enzon reported federal NOLs of approximately $101.9 million, with a significant portion set to expire between 2025 and 2036. The management remains cautious about the future, indicating that while they believe existing cash reserves will sustain operations through May 2026, the lack of revenue generation poses ongoing risks.

Looking ahead, Enzon Pharmaceuticals acknowledges the uncertainty surrounding its ability to utilize its NOLs and generate future revenues. The company is positioned as a public acquisition vehicle, but it cannot guarantee successful acquisitions or profitable outcomes. The management's focus remains on evaluating potential transactions while navigating the challenges of limited revenue sources and increased operational costs.