Skye Bioscience Reports Increased Net Loss and Rising R&D Expenses in Latest 10-Q Filing

Skye Bioscience, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $11.1 million, or $0.28 per share, compared to a net loss of $5.0 million, or $0.18 per share, for the same period in 2024. This increase in losses is attributed primarily to a substantial rise in research and development expenses, which surged to $7.2 million from $1.9 million year-over-year. The total operating expenses for the quarter reached $11.8 million, up from $6.2 million in the prior year, reflecting the company's intensified focus on its clinical trials and product development.

In terms of financial position, Skye Bioscience reported total assets of $64.8 million as of March 31, 2025, a decrease from $72.8 million at the end of 2024. The decline in assets was largely due to a reduction in cash and cash equivalents, which fell to $46.4 million from $68.4 million. The company's current liabilities also increased, totaling $5.3 million compared to $4.3 million at the end of the previous fiscal year. Stockholders' equity decreased to $59.3 million from $68.2 million, primarily driven by the net loss incurred during the quarter.

Strategically, Skye Bioscience is advancing its lead candidate, nimacimab, through a Phase 2a clinical trial aimed at treating obesity. The company has announced plans to extend the trial from 26 weeks to 52 weeks to gather more comprehensive data on safety and efficacy. This decision follows positive preclinical results indicating that nimacimab could achieve significant weight loss comparable to existing treatments. The company is also finalizing its study protocol with the FDA, which is a critical step in its clinical development pathway.

Operationally, Skye has been expanding its workforce to support its research and development efforts, resulting in increased personnel-related costs. The company reported a headcount increase, which has contributed to higher general and administrative expenses, totaling $4.6 million for the quarter, up from $4.2 million in the prior year. Additionally, Skye has been actively managing its legal contingencies, with an estimated legal liability of $1.9 million as of March 31, 2025, related to ongoing litigation matters.

Looking ahead, Skye Bioscience remains focused on advancing its clinical programs and managing its financial resources effectively. The company believes its current cash reserves will be sufficient to fund operations for at least the next 12 months, although it acknowledges the inherent uncertainties in clinical trial timelines and costs. Skye's management is optimistic about the potential of nimacimab and is preparing for future trials while navigating the complexities of the biotechnology landscape.