ZyVersa Therapeutics Reports $2.3 Million Net Loss in Q1 2025

ZyVersa Therapeutics, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of approximately $2.3 million, a decrease from a net loss of $2.8 million during the same period in 2024. The company has not generated any revenue to date, maintaining an accumulated deficit of about $114.9 million as of March 31, 2025. Total operating expenses for the quarter were $2.1 million, down from $2.8 million in the prior year, primarily due to reduced research and development costs, which fell by 49.5% to $259,000, and a decrease in general and administrative expenses by 18.5% to $1.9 million.

In terms of liquidity, ZyVersa reported current assets of $2.1 million, an increase from $1.7 million at the end of 2024. However, current liabilities also rose to $12.0 million from $11.2 million, resulting in a working capital deficiency of approximately $9.9 million. The company’s cash position improved slightly, with cash at the end of the quarter totaling $1.6 million, compared to $1.5 million at the end of 2024. ZyVersa's cash flow from operating activities showed a significant improvement, with a net cash used of $1.8 million compared to $3.8 million in the same quarter last year.

Strategically, ZyVersa has been active in financing activities, raising approximately $2.0 million through a private placement of pre-funded warrants and warrants during the quarter. This financing is crucial as the company continues to develop its lead product candidates, VAR 200 and IC 100, aimed at treating renal and inflammatory diseases. The company has indicated that it will need to secure additional funding to support ongoing operations and development efforts, as it expects to incur significant expenses in the future.

Operationally, ZyVersa has not reported any significant changes in customer counts or product adoption rates, as it remains in the clinical development stage without any product sales. The company continues to evaluate potential collaborations and partnerships to enhance its market presence and operational capabilities. As of March 31, 2025, ZyVersa's employee headcount remains stable, with no significant changes reported in staffing levels.

Looking ahead, ZyVersa anticipates continued operating losses as it progresses with its clinical trials and regulatory submissions. The company acknowledges the need for substantial additional financing to achieve its business objectives and to potentially reach profitability. Management has expressed confidence in its ability to access capital resources but recognizes the inherent uncertainties in securing funding on favorable terms. The outlook remains cautious, with the company emphasizing the importance of successful product development and regulatory approval to generate future revenues.