Ernexa Therapeutics Reports $3.1 Million Net Loss in Q2 2025, No Revenue Generated

Ernexa Therapeutics Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $3.1 million for the three months ended June 30, 2025, compared to a net loss of $5.5 million for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $11.3 million, a slight improvement from the $12.2 million loss reported in the prior year. The company did not generate any revenue during the second quarter, a significant decline from $47,000 in revenue for the same quarter in 2024, reflecting the absence of active contracts following the assignment of a customer contract to Factor Bioscience in September 2024.

Total operating expenses for the second quarter decreased to $2.5 million from $4.9 million in the prior year, primarily due to reduced general and administrative costs, which fell from $3.9 million to $1.4 million. This reduction was attributed to lower occupancy expenses following the termination of a sublease and decreased professional fees. Research and development expenses increased slightly to $1.1 million from $987,000, driven by higher consulting costs and headcount. The company’s accumulated deficit as of June 30, 2025, stood at approximately $242.9 million.

In terms of strategic developments, Ernexa completed a private placement on March 31, 2025, raising approximately $7.2 million in gross proceeds through the sale of common stock and pre-funded warrants. This financing was crucial for the company, which reported cash and cash equivalents of $4.3 million at the end of the quarter, up from $1.7 million at the end of 2024. The company also repaid $2.3 million in promissory notes during the quarter, which had been issued to an investor in March 2025.

Operationally, Ernexa has been focusing on its lead product candidate, ERNA-101, which is in preclinical development for treating platinum-resistant ovarian cancer. The company is collaborating with the University of Texas MD Anderson Cancer Center to advance this candidate, with plans to submit an Investigational New Drug application by 2026. Additionally, Ernexa is exploring partnerships to co-develop or out-license its therapeutic assets, aiming to expand its developmental opportunities.

Looking ahead, Ernexa's management expressed concerns regarding the company's ability to continue as a going concern, citing substantial doubt about its capacity to fund operations for the next twelve months without raising additional capital. The company plans to explore various funding avenues, including public or private equity offerings, grants, and strategic partnerships, but acknowledges the uncertainty surrounding its ability to secure necessary financing on favorable terms.