RetinalGenix Technologies Reports $4.32 Million Net Loss and Seeks Funding for Product Development

RetinalGenix Technologies Inc. reported a net loss of $4.32 million for the fiscal year ending December 31, 2024, a significant increase from the $2.09 million loss recorded in the previous year. The company has not generated any revenue from product sales since its inception, and its accumulated deficit has now reached approximately $15.43 million. The increase in losses is attributed to a 293% rise in stock-based compensation expenses, which totaled $2.61 million, primarily due to the recognition of expenses for warrants issued in early 2024. General and administrative expenses also rose by 48% to $1.33 million, driven by increased costs associated with executive compensation and legal fees.

In terms of operational developments, RetinalGenix is focused on advancing its product offerings, including the Retinal Imaging Screening Device and the RetinalCamTM, which is expected to launch by the end of Q4 2025. The company is also developing two drug candidates, RTG-2023 for dry age-related macular degeneration and RTG-2024 for Alzheimer’s syndrome dementia. The acquisition of DNA/GPS Inc. in July 2022 has enhanced the company's capabilities in pharmacogenetic mapping, which is expected to complement its retinal imaging technologies. However, the company has yet to secure FDA clearance for any of its products, which is critical for commercialization.

RetinalGenix's financial position remains precarious, with cash reserves of only $6,060 as of December 31, 2024, and total liabilities amounting to $1.48 million. The company anticipates needing an additional $6 million to complete product design and testing, as well as to build the necessary infrastructure for growth. The management has indicated that it will seek funding through equity and debt offerings, but there is no assurance that such capital will be available on favorable terms. The company has raised approximately $653,000 through private placements in 2024, but it has not sold any securities since January 1, 2025.

The company is also facing challenges related to its internal controls over financial reporting, which have been deemed ineffective due to a lack of segregation of duties. Management is working on remediation measures, including hiring additional personnel, but these efforts are contingent on securing sufficient funding. The report from the independent registered public accounting firm highlighted substantial doubt about the company's ability to continue as a going concern, emphasizing the need for immediate capital to sustain operations.

Looking ahead, RetinalGenix's future hinges on its ability to secure regulatory approvals for its product candidates and to generate revenue from product sales. The company is actively pursuing strategic partnerships and collaborations to enhance its market position and financial stability. However, the ongoing need for capital and the uncertainty surrounding product development and regulatory processes present significant risks to its operational viability.