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ZT

ZyVersa Therapeutics, Inc. (ZVSA)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 showed no revenue and a sharp net loss of $19.8M driven by an $18.6M non-cash impairment of in-process R&D after a “significant and sustained” market cap decline; EPS was $(2.56) vs $(2.43) YoY, while core OpEx (ex-impairment) fell YoY on lower R&D and G&A .
  • Liquidity remains strained: cash was $0.5M at 9/30; management reiterated operations are “month‑to‑month” and additional financing is required; working capital deficit was $(11.8)M .
  • Capital markets actions: $2.05M cash raised via a July warrant inducement (new 6.12M A‑4 warrants at $0.67); an ELOC for up to $10M was signed in June; commitment share fees increased G&A .
  • Listing risk manifested: Nasdaq delisting became effective Oct 6; shares now trade on OTCQB (ZVSA), elevating liquidity and volatility risks .
  • No earnings call transcript and no S&P Global consensus estimates were available; investor focus remains on near‑term financing, program updates (VAR 200, IC 100), and resolution of vendor claims .

What Went Well and What Went Wrong

What Went Well

  • Cost control: R&D ($0.37M) and G&A ($1.74M) declined ~16% and ~5% YoY on lower consultants, D&O insurance, professional fees, and stock comp amortization completion .
  • Cash inflows: $2.05M raised in Q3 via warrant inducement; $4.05M YTD capital raised (Q3 + earlier transactions), providing limited runway extension .
  • Operating cash burn improved YTD: net cash used in operations was $(4.70)M for 9M 2025 vs $(6.30)M in 9M 2024, aided by non‑cash impairment and working capital movements .

What Went Wrong

  • Non‑cash impairment: $18.6M IPR&D write‑down due to sustained market cap decline and uncertainty in funding future milestones; drove Q3’s GAAP loss .
  • Liquidity/going concern: cash $0.53M and working capital deficit $(11.77)M at quarter‑end; company explicitly said cash funds operations “on a month‑to‑month basis” and additional financing is necessary .
  • Listing and vendor risks: Nasdaq delisting effective Oct 6, 2025; vendor interest accrual recognized ($0.649M) with an additional $1.07M claim not accrued (disputed) despite a partial credit memo; both weigh on risk profile .

Financial Results

Income statement snapshot (oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenues ($USD Millions)$0.0 (no revenue since inception) $0.0 (no revenue) $0.0 (no revenue) $0.0 (no revenue)
R&D Expense ($USD Millions)$0.436 $0.259 $0.410 $0.365
G&A Expense ($USD Millions)$1.834 $1.886 $1.634 $1.739
IPR&D Impairment ($USD Millions)$0.000 $0.000 $0.000 $18.648
Total Operating Expenses ($USD Millions)$2.270 $2.145 $2.044 $20.752
Net Loss ($USD Millions)$(2.401) $(2.257) $(2.211) $(19.806)
Diluted EPS ($)$(2.43) $(0.73) $(0.46) $(2.56)
Weighted Avg Shares (Millions)0.988 3.107 4.814 7.741

Notes: No margins are presented given zero revenue .

Liquidity and capitalization (oldest → newest)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Cash & Equivalents ($USD Millions)$0.123 $1.612 $0.072 $0.528
Working Capital (Deficit) ($USD Millions)—$(9.894) $(12.141) $(11.770)
Accounts Payable ($USD Millions)—$9.605 $9.774 $9.805
Shares Outstanding (End, Millions)—2.568 4.873 8.096 (as of 11/17/25)
Warrants Outstanding (Millions)———6.912

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial guidance (revenue/EPS/margins)FY/QuarterNone disclosedNone disclosedMaintained (no guidance provided in filings/press release)

Earnings Call Themes & Trends

Note: No earnings call transcript located for Q3 2025; themes below reflect MD&A/filings.

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Liquidity/Going ConcernCash $1.6M; month‑to‑month funding, additional financing required Cash $0.07M; month‑to‑month funding, additional financing required Cash $0.53M; month‑to‑month funding reiterated; working capital deficit $(11.8)M Persistently tight; small raises help but short runway
Capital Markets/ListingListed on Nasdaq during Q1 Trading suspended July; moved to OTCQB (application approved July 25) Nasdaq delisting effective Oct 6; trading on OTCQB (ZVSA) Deteriorated
R&D Execution/SpendR&D down YoY on lower CRO/consulting R&D down YoY; modest stability testing spend R&D down YoY; lower consultants; IPR&D fully impaired Lean spend; asset impairment
Regulatory/Legal—Vendor interest accrual recognized; dispute ongoing Interest accrual $0.649M; $1.067M not accrued; $37k credit memo Unresolved but monitored
Macro/Funding Environment—Monitoring trade/tariffs/supply chain, no material impact “Risk‑averse environment for biotech” cited in impairment rationale More challenging

Management Commentary

  • “Based on our current operating plan, we expect our cash and cash equivalents will be sufficient only to fund operating expenses and capital expenditure requirements on a month‑to‑month basis. ZyVersa will need additional financing to support its continuing operations.” — Q3 2025 press release .
  • “The impairment is a result of the decline in ZyVersa’s market capitalization and the inability to demonstrate that financing of the in‑process research and development’s milestones is assured as of September 30, 2025.” — Q3 2025 press release .
  • “Current limitations on accessing significant capital in what is currently a risk averse environment for biotech… resulted in a sustained decline in the Company’s market capitalization… Accordingly, the Company… fully impaired [its] IPR&D.” — Q3 2025 10‑Q .
  • “We will need additional financing to support our continuing operations… through public or private equity, debt financings, or other sources.” — Q3 2025 10‑Q .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in our sources; we did not identify a management Q&A session for the quarter [ListDocuments returned no earnings-call-transcript; 0 results].

Estimates Context

  • S&P Global/Capital IQ consensus estimates for Q3 2025 revenue/EPS were unavailable for ZVSA; therefore, we cannot assess beats/misses or estimate dispersion. Values from S&P Global were not returned by our query (no data) [functions.GetEstimates returned empty].

Key Takeaways for Investors

  • Liquidity is the gating factor: with $0.53M cash and an $(11.8)M working capital deficit, ZyVersa requires near‑term financing to continue operations; expect ongoing equity‑linked capital raises and dilution risk .
  • Non‑cash impairment reset the balance sheet: $18.6M IPR&D write‑down reflects funding uncertainty and market cap pressures; it does not change near‑term cash needs but signals financing‑dependent pipeline risk .
  • Capital structure is more option‑like: 6.9M warrants outstanding and ELOC capacity can fund operations but cap upside; warrant inducement raised $2.05M but added 6.12M new warrants at $0.67 .
  • Listing downgrade increases volatility: OTCQB trading post‑Nasdaq delisting typically reduces liquidity and institutional participation, making financing terms more sensitive to market conditions .
  • Operating discipline helps but cannot offset funding gap: R&D/G&A were lower YoY, yet absolute spend still necessitates external capital until clinical catalysts or partnerships materialize .
  • Watch catalysts: any non‑dilutive funding (grants/partnerships), vendor dispute resolution, ELOC draws, and concrete development updates or IND/timing clarity for VAR 200 and IC 100 could reframe risk/reward .

Appendix: Additional details

  • Capital raises YTD: ~$4.05M (Q3: ~$2.05M; prior raises include ~$2.0M gross from March pre‑funded + common warrants) .
  • Vendor claim: interest accrual now $0.649M (recognized); $1.067M claim not accrued (payment not deemed probable); $37k credit memo received .
  • Shares outstanding: 8.096M as of Nov 17, 2025 (vs 4.873M at 6/30 and 2.568M at 3/31), highlighting share count expansion through 2025 .

Sources: Q3 2025 8‑K/press release and 10‑Q; Q1/Q2 2025 10‑Qs; delisting 8‑K. Specific citations embedded above.