--- title: "Citius Oncology 10-Q cites auditor's going-concern doubt" url: "https://aibio.space/news/citius-oncology-10-q-cites-auditors-going-concern-doubt/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-05-14" section: "Distress" tickers: "NASDAQ:CTOR, NASDAQ:CTXR" source: "https://www.sec.gov/Archives/edgar/data/1851484/000121390025043359/ea0241639-10q_citius.htm" summary: "Citius Oncology reported $112 in cash at March 31, 2025 and negative working capital of about $31.7 million. Its parent had sufficient capital to fund it o" --- By the aibio.space news desk. Sources - [Citius Oncology, Inc. 10-Q (2025-05-14)](https://www.sec.gov/Archives/edgar/data/1851484/000121390025043359/ea0241639-10q_citius.htm) - [Citius Oncology, Inc. 10-K (2024-12-27): business](https://www.sec.gov/Archives/edgar/data/1851484/000121390024113150/ea0225372-10k_citius.htm) [CTOR](https://aibio.space/companies/citius-oncology/) [CTXR](https://aibio.space/companies/citius-pharmaceuticals/) 2025-05-14 # Citius Oncology 10-Q cites auditor's going-concern doubt Tickers [CTOR](https://aibio.space/companies/citius-oncology/)[CTXR](https://aibio.space/companies/citius-pharmaceuticals/) Citius Oncology reported $112 in cash at March 31, 2025 and negative working capital of about $31.7 million. Its parent had sufficient capital to fund it only through May 2025, and Nasdaq gave it until October 20, 2025 to fix its bid price. ## Key facts - **Companies**: Citius Oncology, Inc. (NASDAQ: CTOR), Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) - **News type**: Distress - **Primary source**: [Citius Oncology, Inc. 10-Q (2025-05-14)](https://www.sec.gov/Archives/edgar/data/1851484/000121390025043359/ea0241639-10q_citius.htm) *An aerial view of the Capitol and its grounds. CC0, via rawpixel. The picture shows the field, not the companies named.* Citius Oncology, Inc. (Nasdaq: [CTOR](https://aibio.space/companies/citius-oncology/)) filed its quarterly report on Form 10-Q for the quarter ended March 31, 2025 on May 14, 2025. The report says the independent auditor's report includes an explanatory paragraph stating there is substantial doubt about the company's ability to continue as a going concern. The company says it has concluded there is substantial doubt as well, citing its historical operating losses and expected future negative cash flows from operations. ## Dependence on the parent The company has no revenue and has relied on funding from its parent, Citius Pharmaceuticals, Inc. (Nasdaq: [CTXR](https://aibio.space/companies/citius-pharmaceuticals/)). The going-concern note says "Citius Pharma has sufficient capital to fund Citius Oncology through May 2025," and that this is what raises the substantial doubt. On April 2, 2025, the parent closed a registered direct offering of common stock and pre-funded warrants to an institutional investor. Its net proceeds were approximately $1.735 million after placement agent fees and other offering expenses. The 10-Q does not name the placement agent. It says the company expects the parent to have sufficient funds to continue its operations after that financing. It also says there is no assurance the parent will keep funding the company. The company plans to keep relying on the parent, to raise equity from outside investors and to generate revenue from LYMPHIR, which the FDA approved in August 2024. It says the company and the parent are both engaged in capital raising to extend the cash runway. The 10-Q also confirms that Jefferies LLC is the exclusive financial advisor for the strategic review. ## Cash, working capital and obligations The balance sheet lists cash and cash equivalents of $112 at March 31, 2025, the same figure as at September 30, 2024. Negative working capital was approximately $31.7 million. Total liabilities were $55,796,733, including a license payable of $28,400,000, accrued expenses of $8,722,168, accounts payable of $7,676,310 and $4,941,664 due to a related party. The net loss for the six months ended March 31, 2025 was $14,394,757, against $9,562,949 a year earlier. The 10-Q attributes the $4,831,808 increase mainly to higher research and development costs, up $1,906,460, and general and administrative expenses, up $2,661,818. The accumulated deficit reached $53,673,344. Payments are due soon. The company agreed to pay Eisai $2,535,318 on or before July 15, 2025, then $2,350,000 on the 15th of each of the next four months, and a final $2,197,892 on or before December 15, 2025. Each payment carries interest at 2% per annum from its original due date until paid. When LYMPHIR was approved, a $27.5 million milestone became payable to Dr. Reddy's Laboratories SA. Of that, $22.5 million remained due at March 31, 2025, and Dr. Reddy's agreed to a partial deferral without penalty pending further discussions. Minimum purchase commitments are about $17.3 million with one contract manufacturer, and about $4.5 million with two other vendors. ## The Nasdaq notice On April 5, 2025, stockholders approved raising authorized common stock to 400,000,000 shares from 100,000,000. On April 23, 2025, Nasdaq notified the company that it was not in compliance with Listing Rule 5550(a)(2), because the minimum bid price closed below $1.00 per share for 30 consecutive business days. Under Rule 5810(c)(3)(A), the company has 180 calendar days, until October 20, 2025, to regain compliance. The bid price must close at $1.00 or more for at least ten consecutive business days. The report lists the ability to regain compliance with Nasdaq's continued listing requirements among its risks. It reports 71,552,402 shares outstanding as of May 9, 2025, and says the stock is listed on the Nasdaq Capital Market. Item 1 of Part II reports no legal proceedings. ## What the filing does not give The 10-Q says the company needs "substantial additional financing" to meet its milestone and purchase obligations, but it does not put a dollar figure on the amount. It gives no date or amount for the financing it needs. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story CTOR Citius Oncology, Inc. NASDAQ · United States Open the starter desk CTXR Citius Pharmaceuticals, Inc. NASDAQ · United States Open the starter desk ## More in Distress Distress ### [Mineralys takes ownership of lorundrostat patents but keeps Tanabe milestone debts](https://aibio.space/news/mineralys-takes-ownership-lorundrostat-patents-but-keeps-tanabe/) Oct 29, 2026 Distress ### [Bristol Myers Squibb drops Prothena's PRX019, ending up to $617.5 million in milestones](https://aibio.space/news/bristol-myers-squibb-drops-prothenas-prx019-ending-up-617-5-million/) Oct 29, 2026 Distress ### [LENZ Therapeutics reorganizes to cut 2027 operating expenses by more than 50%](https://aibio.space/news/lenz-therapeutics-reorganizes-cut-2027-operating-expenses-more-50/) Oct 28, 2026 --- Source page: https://aibio.space/news/citius-oncology-10-q-cites-auditors-going-concern-doubt/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Citius Oncology 10-Q cites auditor's going-concern doubt", 2025-05-14, https://aibio.space/news/citius-oncology-10-q-cites-auditors-going-concern-doubt/