Tempest Therapeutics Reports $5.2M Net Loss and Decreased Cash Reserves in Latest 10-Q Filing

Tempest Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded a net loss of $5.2 million for the quarter, a decrease from a net loss of $7.9 million in the same period last year, reflecting a 34% improvement. For the first half of 2026, the net loss increased to $32.9 million compared to $18.7 million in the first half of 2025, primarily due to a $22.2 million expense related to acquired in-process research and development from the acquisition of assets from Erigen LLC. Total operating expenses for the quarter were $5.3 million, down from $8.1 million in the prior year, driven by reduced research and development costs.

The company’s cash and cash equivalents significantly decreased to $0.8 million as of June 30, 2026, down from $7.7 million at the end of 2025. This decline raises concerns about the company's liquidity, as it has incurred operating losses since inception and has limited cash resources to fund ongoing operations. Tempest has implemented cost-reduction measures, including workforce reductions, to manage its financial position. As of June 30, 2026, the company had a total of 15,979,411 shares outstanding, a substantial increase from 4,927,161 shares at the end of 2025, primarily due to the issuance of shares in connection with the asset acquisition.

Strategically, Tempest completed the acquisition of the Erigen Assets on February 3, 2026, which included several CAR-T product candidates aimed at treating various cancers. This acquisition was valued at approximately $22.2 million, which was expensed as acquired in-process research and development. The company has also entered into a collaboration agreement with Senlang Biotechnology to advance its in vivo CAR-T product candidate, TPST-4003, into clinical trials in China, with initial patient enrollment expected in late 2026.

Operationally, Tempest has focused on advancing its clinical-stage programs while exploring strategic alternatives to maximize shareholder value. The company has reduced its workforce from 26 to 5 employees as part of its restructuring efforts. Despite these changes, the company has not generated any revenue and continues to rely on external financing to support its operations. The outlook remains uncertain, with substantial doubt about the company's ability to continue as a going concern within the next 12 months unless it secures additional funding. The company has $11.8 million available under a funding commitment from Factor Bioscience, but there are significant uncertainties regarding the fulfillment of the terms associated with this funding.