Eterna Therapeutics Reports Zero Revenue and $8.2 Million Net Loss in Q1 2025

Eterna Therapeutics Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue dropping to zero from $47,000 in the same period last year. The company incurred a net loss of $8.2 million, compared to a loss of $6.6 million in the first quarter of 2024. This loss includes a notable $5.3 million non-cash expense related to a forward sales contract. Operating expenses also decreased to $2.73 million from $5.77 million year-over-year, primarily due to reduced general and administrative costs, which fell from $4.32 million to $1.42 million.

The company's total assets as of March 31, 2025, were approximately $5.06 million, a decrease from $5.27 million at the end of 2024. Current liabilities surged to $10.44 million, up from $2.94 million, largely due to the forward sales contract liability of $5.34 million. Eterna's accumulated deficit increased to $239.7 million, reflecting ongoing challenges in achieving profitability.

In terms of strategic developments, Eterna Therapeutics formed a new wholly-owned subsidiary, Ernexa TX2 Inc., in April 2025, while dissolving Eterna Therapeutics LLC, which had no operations. The company also entered into a securities purchase agreement (SPA) on March 31, 2025, to sell approximately 58.3 million shares of common stock and pre-funded warrants, with an initial closing on April 2, 2025, generating $1.1 million in gross proceeds. The second closing, expected to yield an additional $6.2 million, is contingent upon shareholder approval at the upcoming annual meeting.

Operationally, Eterna's cash balance stood at $1.92 million at the end of the first quarter, a slight increase from $1.73 million at the end of 2024. The company reported a decrease in cash used in operating activities to $2.07 million from $3.75 million year-over-year, indicating improved cash management despite ongoing losses. Eterna's employee headcount and customer engagement metrics were not disclosed in the filing, but the company continues to focus on developing its lead product candidate, ERNA-101, targeting solid tumors and autoimmune diseases.

Looking ahead, Eterna Therapeutics faces substantial doubt regarding its ability to continue as a going concern, as it does not expect to have sufficient cash to fund operations for the next twelve months. The company plans to seek additional capital through various means, including public or private equity offerings and strategic partnerships. However, it acknowledges the uncertainty surrounding its ability to raise funds on favorable terms, which could impact its operational plans and overall viability.