Tivic Health Reports 79% Revenue Decline and $1.5 Million Net Loss in Q1 2025

Tivic Health Systems, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues dropping to $70,000 from $334,000 in the same period last year, marking a decrease of 79%. The company's cost of sales also fell sharply, down 88% to $20,000, resulting in a gross profit of $50,000 compared to $167,000 in the prior year. Despite these reductions in revenue and costs, Tivic Health recorded a net loss of $1.5 million, slightly higher than the $1.48 million loss reported in the first quarter of 2024. The loss per share attributed to common stockholders was $(2.52), a notable improvement from $(17.15) in the previous year, reflecting a significant increase in the weighted average number of shares outstanding due to a reverse stock split.

The company has made strategic moves to enhance its product offerings and market position. In February 2025, Tivic Health acquired an exclusive worldwide license for the TLR5 agonist Entolimod from Statera Biopharma, aimed at treating Acute Radiation Syndrome. This acquisition included an option for additional indications, which Tivic exercised in March 2025 for the treatment of neutropenia. The company is also focusing on its FDA-approved product, ClearUP, which treats sinus pain and congestion, while exploring new monetization strategies. The total operating expenses for the quarter were $1.56 million, a decrease from $1.65 million in the previous year, primarily due to reduced sales and marketing expenditures.

Operationally, Tivic Health's customer base has shifted, with 66% of sales in the latest quarter coming from individual customers, compared to 82% in 2024. The company has also seen a significant reduction in advertising spend, down 92%, as it redirected resources towards securing the Statera licensing agreement. The total employee headcount remains stable, with the company maintaining a lean operational structure while relying on third-party service providers for various functions.

Looking ahead, Tivic Health faces challenges related to liquidity, with cash and cash equivalents at $669,000 as of March 31, 2025, down from $2 million at the end of 2024. The company has indicated that it may need to raise additional capital to support ongoing operations and product development, particularly as it seeks to advance its biopharmaceutical pipeline. The management has expressed concerns about the company's ability to continue as a going concern within the next year, given the accumulated deficit of $45 million and ongoing operational losses. Future funding will be critical for Tivic Health to navigate its strategic initiatives and achieve profitability.