Oncotelic Therapeutics Reports Net Income of $210,000 for Q2 2025, Significant Improvement from Prior Year

Oncotelic Therapeutics, Inc. reported a net income of approximately $210,000 for the three months ended June 30, 2025, a significant improvement compared to a net loss of about $278,000 for the same period in 2024. The company attributed this positive shift to a reduction in total operating expenses, which decreased by approximately $30,000 to $66,000, and a notable gain of $484,000 from changes in the fair value of derivatives on debt. For the six months ended June 30, 2025, Oncotelic recorded a net loss of approximately $154,000, a substantial decrease from a net loss of $753,000 in the prior year, driven by lower operating expenses and interest costs.

The company’s total operating expenses for the first half of 2025 were approximately $167,000, down from $264,000 in the same period of 2024. Research and development expenses remained relatively stable at $594,000, while general and administrative expenses saw a significant reduction of about $97,000, reflecting ongoing efforts to streamline operations. The decrease in expenses is partly attributed to the transfer of certain operational costs to the joint venture with GMP Bio, which has taken over the development responsibilities for the OT-101 program.

As of June 30, 2025, Oncotelic reported total assets of approximately $26.7 million, slightly up from $26.6 million at the end of 2024. The company’s cash and restricted cash increased to $108,000, compared to $106,000 at the end of the previous year. However, Oncotelic continues to face a working capital deficit of approximately $19.1 million, raising concerns about its ability to sustain operations without additional funding. The company has incurred an accumulated deficit of around $38 million since its inception.

Strategically, Oncotelic has been focusing on its joint venture with GMP Bio, which is developing OT-101 for various cancers and COVID-19. The joint venture has initiated a manufacturing facility in San Diego and is working on multiple compounds, including a nanoparticle platform aimed at treating various cancers. The company is also exploring the development of OT-101 for animal health indications and considering the use of cryptocurrencies for its platform. Management anticipates that the ongoing development efforts and potential future financing will be crucial for the company’s growth and operational viability.

Looking ahead, Oncotelic acknowledges the need for additional capital to fund its operations and continue the development of its product candidates. The company is evaluating various financing options, including equity and debt, to support its ongoing projects. However, management has expressed uncertainty regarding the availability of such financing on favorable terms, which could impact the company’s ability to execute its business plan effectively.