Skye Bioscience Reports $12.8 Million Net Loss and Increased R&D Expenses in Latest Quarter

Skye Bioscience, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2025. The company recorded a net loss of $12.8 million for the third quarter, compared to a loss of $3.9 million in the same period last year, marking a 228% increase in losses. For the nine months ended September 30, 2025, the net loss totaled $41.5 million, up from $16.8 million in the prior year. The increase in losses is attributed primarily to heightened research and development expenses, which surged to $30.9 million for the nine months, a 183% increase from $10.9 million in 2024.

The company's total operating expenses for the third quarter reached $13.3 million, significantly higher than the $5 million reported in the same quarter of 2024. This increase was driven by a 92% rise in research and development costs, which were primarily related to the ongoing Phase 2a clinical trial of nimacimab, the company's lead candidate for treating obesity. General and administrative expenses decreased slightly by 16% to $3.9 million, reflecting cost management efforts amid the company's restructuring initiatives.

In terms of liquidity, Skye Bioscience reported a working capital of $31.6 million as of September 30, 2025, down from $68.4 million at the end of 2024. The company had cash and cash equivalents of $18.4 million, a significant decrease from $68.4 million at the end of the previous fiscal year. The decline in cash reserves is attributed to substantial cash outflows from operating activities, which totaled $33.3 million for the nine months ended September 30, 2025, compared to $17.1 million in the same period last year.

Strategically, Skye is focused on advancing its clinical pipeline, particularly the nimacimab program. The company recently completed enrollment in a 26-week extension study for nimacimab, with results expected in the first quarter of 2026. However, the company did not meet its primary endpoint in the initial Phase 2a study, prompting management to implement a cost reduction plan to extend its financial runway while seeking additional funding. Skye has also entered into an Equity Distribution Agreement, allowing it to sell up to $100 million in common stock, although no shares have been sold under this agreement to date.

Looking ahead, Skye Bioscience anticipates continued operating losses as it progresses through clinical trials and seeks to secure additional funding. The company remains dependent on external financing to support its operations and research activities, with the potential for further strategic collaborations to enhance its financial position. The ongoing litigation related to a former employee also poses a risk, with an estimated legal contingency of $2.1 million as of September 30, 2025.