Spruce Biosciences Reports No Revenue and Significant Losses in Latest Financial Filing

Spruce Biosciences, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no collaboration revenue during the quarter, a stark decline from $1.6 million in the same period last year. For the first half of 2025, total revenue was also absent, compared to $3.6 million in the first half of 2024. Operating expenses decreased to $2.7 million for the quarter, down from $11.6 million year-over-year, primarily due to reduced research and development costs associated with the discontinuation of the tildacerfont program. The net loss for the quarter was $2.1 million, a notable improvement from a loss of $9.2 million in the prior year.

The company’s financial position has deteriorated, with cash and cash equivalents dropping to $16.4 million as of June 30, 2025, down from $38.8 million at the end of 2024. This decline raises substantial doubt about Spruce's ability to continue as a going concern for the next twelve months without additional financing. The accumulated deficit has now reached $266.4 million, reflecting ongoing operational losses. The company has indicated that it will require significant additional financing to support its product development and operational plans, which may include out-licensing rights or issuing new equity.

Strategically, Spruce has undergone significant organizational changes, including a 55% workforce reduction implemented in April 2025 to prioritize the development of tralesinidase alfa (TA-ERT) for Sanfilippo Syndrome Type B. This reduction resulted in $0.9 million in severance and related costs during the second quarter. Additionally, the company executed a reverse stock split on a 1-for-75 basis, effective August 7, 2025, in an effort to regain compliance with Nasdaq listing requirements. The stock is currently trading on the OTCQB under the symbol "SPRBD."

Operationally, Spruce has focused on advancing its clinical development programs, particularly for TA-ERT and SPR202, while also seeking regulatory approvals. However, the company faces challenges in patient enrollment for clinical trials, which could delay development timelines. The competitive landscape remains a concern, as Spruce competes with other biotechnology firms for market share in the neurological disorder treatment space. As of June 30, 2025, the company had 563,042 shares of common stock outstanding, with no dividends declared.

Looking ahead, Spruce Biosciences anticipates continued financial strain as it seeks to navigate the complexities of drug development and regulatory approval processes. The company has outlined plans to build a commercial organization for TA-ERT, expand manufacturing capabilities, and pursue strategic collaborations. However, the uncertain macroeconomic environment, including inflation and geopolitical tensions, may further complicate its operational and financial outlook. The company’s ability to secure necessary funding will be critical to its future viability and success in bringing its product candidates to market.