Mosaic ImmunoEngineering Reports Improved Net Loss and Decreased Operating Expenses in Q1 2025

Mosaic ImmunoEngineering, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $181,320, a significant improvement compared to a net loss of $288,492 in the same period of 2024. The company's total operating expenses decreased to $174,774 from $268,766 year-over-year, primarily due to reduced research and development costs, which fell from $67,311 to $15,803. General and administrative expenses also saw a decline, dropping from $201,455 to $158,971. The basic and diluted loss per common share was $0.03, compared to $0.04 in the prior year.

In terms of liquidity, Mosaic reported cash and cash equivalents of $85,930 as of March 31, 2025, down from $115,019 at the end of 2024. The company’s total liabilities increased slightly to $7,067,278 from $6,929,785, with current liabilities rising to $5,656,681. The accumulated deficit grew to $9,019,640 from $8,838,320, indicating ongoing financial challenges. The company has not generated any revenue to date, and its ability to continue operations is heavily reliant on raising additional capital.

Strategically, Mosaic is pursuing a potential acquisition of certain rights to Oncotelic Therapeutics, Inc.'s clinical-stage necroptosis cancer therapies and AI technologies, as outlined in a binding term sheet signed on April 26, 2024. This transaction could involve issuing shares valued at $15 million, subject to customary due diligence and shareholder approval. The company is also working under a Master Services Agreement with Oncotelic, which generated $14,000 in advisory income during the quarter.

Operationally, Mosaic has not reported any significant changes in customer counts or product adoption rates, as it remains in the development stage. The company continues to face challenges in securing funding, which is critical for advancing its research and development efforts. Management has expressed concerns regarding the impact of economic conditions, including inflation and potential recession, on its ability to attract investment. The company anticipates that its current cash reserves will not meet operational needs for the next twelve months, raising substantial doubt about its ability to continue as a going concern.

Looking ahead, Mosaic ImmunoEngineering is focused on securing additional financing to support its operations and development initiatives. The company acknowledges the uncertainties surrounding its ability to raise capital and the potential for significant dilution to existing shareholders if it proceeds with equity financing. The management remains committed to advancing its immunotherapy pipeline, contingent upon successful fundraising efforts.