Salarius Pharmaceuticals Reports $1.71 Million Net Loss in Q1 2025, Pursues Merger with Decoy Therapeutics

Salarius Pharmaceuticals, Inc. reported a net loss of $1.71 million for the first quarter of 2025, a slight decrease from a loss of $1.72 million in the same period of 2024. The company’s total operating expenses for the quarter were $1.72 million, down from $1.77 million year-over-year, primarily due to a significant reduction in research and development costs, which fell to $75,532 from $243,002. This reduction is attributed to a cost-savings plan implemented in late 2023, which included a decrease in operating personnel and a shift in focus towards relying on clinical trial data from external sources.

As of March 31, 2025, Salarius reported cash and cash equivalents of $1.8 million, a decline from $2.4 million at the end of 2024. The company’s total assets decreased to $2.34 million from $3.02 million, while total liabilities increased significantly to $2.28 million from $1.51 million, largely due to rising accounts payable and accrued expenses. The company’s stockholders' equity fell to $61,866, down from $1.51 million at the end of the previous fiscal year, raising concerns about its ability to continue as a going concern.

Strategically, Salarius is pursuing a merger with Decoy Therapeutics, Inc., which was formalized in a merger agreement on January 10, 2025. This merger is contingent upon meeting certain conditions, including raising a minimum of $6 million in financing. The merger aims to enhance stockholder value and is expected to result in a significant change in ownership structure, with Decoy's stockholders projected to own approximately 85.9% of the combined entity. The merger has been approved by both companies' boards but is still pending completion.

Operationally, Salarius has not generated any revenue from product sales and has been focused on developing treatments for cancers caused by dysregulated gene expression. The company has two drug candidates in its pipeline: SP-3164 and seclidemstat (SP-2577). The company has also faced challenges in maintaining compliance with Nasdaq listing requirements, receiving notices of non-compliance regarding stockholders' equity and minimum bid price. Salarius has appealed these determinations, but the outcome remains uncertain.

Looking ahead, Salarius emphasizes the need for additional capital to fund its operations and clinical development activities. The company has indicated that its current cash reserves are only sufficient to sustain operations into the later part of the second quarter of 2025. If the merger with Decoy does not close or if additional financing is not secured, Salarius may be forced to cease operations and liquidate its assets. The company continues to explore various strategic alternatives to maximize stockholder value while navigating these financial challenges.