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Mar 30, 2025
CervoMed Q1 2025 Earnings Report
CervoMed reported its financial results for the first quarter ended March 31, 2025, showing a net loss of $4.9 million and an increase in research and development expenses.
Key Takeaways
CervoMed Inc. reported a net loss of $4,894,034 for the three months ended March 31, 2025, compared to a net loss of $2,514,335 for the same period in 2024. The company's grant revenue decreased, while operating expenses, particularly research and development, increased significantly. Cash and cash equivalents at the end of the period were $10,501,714.
Net loss increased by 95% to $4,894,034 in Q1 2025 from $2,514,335 in Q1 2024.
Research and development expenses rose by 72% to $4,837,798, driven by increased CMC activities, non-clinical studies, headcount, and outsourced CRO costs.
Grant revenue decreased by 18% to $1,917,491, primarily due to the completion of the Initial Phase of the RewinD-LB trial and transition to the Extension Phase.
Cash and cash equivalents stood at $10,501,714 as of March 31, 2025, with total assets at $38,577,488.
Forward Guidance
CervoMed anticipates continued negative cash flows and will require additional financing to advance product candidates and fund operations. The company expects to continue incurring significant expenses as it progresses neflamapimod through clinical development and operates as a public company.
Positive Outlook
- NIA Grant funding continues to support the RewinD-LB Trial, with approximately $4.0 million remaining.
- Successful completion of the 2024 Private Placement raised approximately $50.0 million in gross proceeds.
- Positive 16-week results from the Extension Phase of the RewinD-LB Trial support neflamapimod's potential.
- Plans to initiate a Phase 2a clinical trial for ischemic stroke recovery in Q2 2025.
- Intention to meet with the FDA to discuss Phase 3 plans for neflamapimod.
Challenges Ahead
- Company has an accumulated deficit of approximately $75.6 million as of March 31, 2025.
- Uncertainty in raising additional funds on favorable terms or at all, which could dilute existing stockholders' ownership.
Historical Earnings Impact
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