ZyVersa Therapeutics Reports Significant Financial Challenges, Decreased Cash Position, and Ongoing Operating Losses in Latest 10-Q Filing

ZyVersa Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing drugs for chronic renal and inflammatory diseases, reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company continues to face challenges, including a substantial accumulated deficit and ongoing operating losses.

As of September 30, 2024, ZyVersa's cash position dramatically decreased to approximately $122.9 thousand, down from $3.1 million at the end of 2023. Total current assets also fell to $390.4 thousand from $3.4 million, while total assets decreased to $19.4 million from $22.1 million. The company's total liabilities increased to $12.4 million from $11.0 million, with current liabilities rising to $11.5 million from $10.2 million. The accumulated deficit grew to $(111.2 million) compared to $(103.2 million) at the end of 2023.

In terms of operational performance, ZyVersa reported a net loss of $(2.4 million) for Q3 2024, a decrease from $(2.9 million) in Q3 2023. For the nine months ended September 30, 2024, the net loss was $(8.0 million), significantly lower than $(85.0 million) for the same period in 2023. This reduction in losses is attributed to a substantial decrease in operating expenses, which totaled $7.9 million for the nine months ended September 30, 2024, compared to $93.8 million in the prior year. The decrease was primarily due to the absence of impairment charges that had significantly impacted the previous year's results.

Research and development expenses for the nine months ended September 30, 2024, were $1.7 million, down from $3.0 million in 2023. General and administrative expenses also decreased to $6.2 million from $9.7 million. The company has not generated any revenue since its inception and does not expect to do so in the near future, relying instead on future financing to support operations.

ZyVersa has raised approximately $3.1 million from stock warrant exercises and its “at-the-market” facility since September 30, 2024. The company is actively seeking additional capital to fund the continued development of its product candidates, VAR 200 and IC 100, and anticipates incurring substantial operating losses as it progresses through clinical trials and regulatory approvals. The company’s ability to continue as a going concern is under significant scrutiny, with substantial doubt expressed regarding its financial viability over the next year.