Lipella Pharmaceuticals Reports Increased Losses and Declining Revenues in Q2 2025

Lipella Pharmaceuticals Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $1.33 million, compared to a loss of $938,146 in the same period last year. For the first half of 2025, the company recorded a net loss of $2.63 million, up from $2.13 million in the first half of 2024. Total revenues for the second quarter were $86,727, a decline from $136,431 in the prior year, primarily due to reduced grant revenue from the National Institutes of Health (NIH). The company recognized $216,117 in total revenues for the first half of 2025, down from $282,311 in the same period of 2024.

Operating expenses increased significantly, with research and development (R&D) costs rising to $791,581 in the second quarter, up from $661,558 a year earlier. General and administrative expenses also saw a notable increase, totaling $651,721 compared to $427,062 in the previous year. The overall operating expenses for the second quarter amounted to $1.44 million, compared to $1.09 million in the same quarter of 2024. The increase in expenses was attributed to higher costs associated with clinical trials and professional services.

In terms of strategic developments, Lipella has been actively pursuing its clinical programs, particularly for its product candidates LP-10 and LP-310, which are in various stages of clinical development. The company has also made organizational changes, including the conversion of preferred stock into common stock, which resulted in an increase in the number of shares outstanding from 1,208,919 at the end of 2024 to 4,467,395 by June 30, 2025. This conversion is part of the company's efforts to strengthen its capital structure amid ongoing operational losses.

As of June 30, 2025, Lipella reported total assets of $3.72 million, up from $2.67 million at the end of 2024, driven by an increase in cash and cash equivalents, which rose to $2.78 million. The company’s liabilities also increased, totaling $978,534, compared to $754,417 at the end of the previous year. The increase in liabilities was primarily due to higher accounts payable and accrued expenses. The company’s accumulated deficit reached $17.97 million as of June 30, 2025, reflecting its ongoing investment in R&D and operational activities.

Looking ahead, Lipella anticipates continued operating losses as it progresses its clinical trials and seeks additional funding to support its research and development efforts. The company has indicated that it may need to raise significant capital to sustain its operations and advance its product candidates toward commercialization. The management has expressed concerns regarding its ability to continue as a going concern if it cannot secure the necessary funding. The company’s stock is currently traded on the OTC Markets following its delisting from Nasdaq, which may impact its liquidity and market presence.