TAO Synergies Inc. Reports First Revenue from Digital Asset Staking, Faces Increased Net Loss

TAO Synergies Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated revenues of $3,962 from digital asset staking, marking its first revenue stream in this area, compared to no revenues in the same period last year. However, the company also reported a net loss of $17.5 million for the quarter, a substantial increase from a loss of $1.3 million in the prior year, primarily driven by increased general and administrative expenses and significant changes in the fair value of its liabilities.

Total operating expenses for the second quarter of 2025 reached $3.04 million, up from $1.58 million in the same quarter of 2024, reflecting a 92.3% increase. This rise was largely attributed to a spike in general and administrative expenses, which rose to $2.19 million from $1.24 million year-over-year, and included approximately $700,000 in warrant issuance costs related to the Series D Private Placement. Research and development expenses, however, decreased significantly to $148,555 from $342,068, as the company concluded its clinical trial for Alzheimer’s disease and discontinued its multiple sclerosis trial.

In terms of strategic developments, TAO Synergies has shifted its focus towards a cryptocurrency treasury strategy, launching a staking initiative for its TAO tokens. This strategic pivot was formalized with the company’s name change from Synaptogenix, Inc. to TAO Synergies Inc. on June 26, 2025. The company also completed a Series D Private Placement, raising approximately $5.1 million, which contributed to an increase in working capital to $18.8 million as of June 30, 2025, compared to $16.7 million at the end of 2024.

Operationally, the company has seen changes in its employee structure, with the resignation of its Chief Executive Officer, who transitioned to a Chief Medical Officer role, and the appointment of a new Executive Chairman. The company’s total employee headcount remains stable, but the restructuring reflects a strategic shift towards enhancing its focus on digital assets and potential therapeutic developments. The company also reported a total of approximately 42,430 TAO tokens as of August 12, 2025, indicating a commitment to expanding its digital asset portfolio.

Looking ahead, TAO Synergies anticipates that its current cash reserves and the market value of its TAO tokens will be sufficient to support its operational needs for at least the next 12 months. However, the company acknowledges the need for additional capital to further its cryptocurrency strategy and other business objectives, which may involve significant dilution for existing shareholders if equity financing is pursued. The company’s ability to secure favorable financing remains uncertain, and it continues to evaluate its strategic options in a rapidly evolving market landscape.