Curanex flags going-concern doubt with $2.94 million in cash at June 30

Curanex Pharmaceuticals Inc. (Nasdaq: CURX) reported cash of $2,938,463 at June 30, 2026, down from $4,973,134 at December 31, 2025. In its quarterly report dated August 14, 2026, the company said it does not expect its existing cash and cash equivalents to fund operations for at least twelve months from the date the interim statements are issued. It said that raises substantial doubt about its ability to continue as a going concern.

Management's plans are to issue equity or debt securities, pursue collaborations or out-licensing for its product candidates, and cut or defer discretionary spending. The company said these plans are not considered probable of being effectively implemented, so they do not alleviate the doubt. It added that there is no assurance it can raise money on acceptable terms, or at all.

What the numbers show

For the six months ended June 30, 2026, Curanex reported a net loss of $6,441,198 and net cash used in operating activities of $2,034,671. It has had no operating revenue. Research and development cost $4,849,879 and general and administrative expense was $1,659,040. In the second quarter alone, the net loss was $3,290,970. The accumulated deficit reached $11,288,753.

The gap between the loss and the cash used comes from prepaid research payments made in earlier periods. The company said prepaid research and development balances fell from $6,166,294 at December 31, 2025 to $1,819,177 at June 30, 2026. It expects cash used in operations to increase materially as those balances are consumed, and expects research spending to rise with its planned Investigational New Drug application and later clinical work.

In the first-quarter report, Curanex reported cash of $4,018,574 at March 31 and net cash used in operating activities of $954,560. That report said management had concluded no substantial doubt existed, pointing to net proceeds of approximately $13.24 million from the August 2025 initial public offering and $2.07 million from the underwriters' over-allotment exercise in September 2025.

The IPO money and the stock

The offering was 3,750,000 shares at $4.00 each, for gross proceeds of $15.0 million. The 10-Q puts total offering costs at approximately $2.12 million, including $1.41 million of underwriting discounts and commissions. The 10-K names Dominari Securities, LLC as representative of the underwriters. The 562,500 over-allotment shares sold at the same price for gross proceeds of $2.25 million.

The company also disclosed that its common stock is subject to a Nasdaq minimum bid price deficiency, which it said may hurt its ability to raise capital. Curanex filed a certificate of amendment on August 14, 2026 for a 1-for-20 reverse stock split, effective August 20, 2026. Its 8-K said the purpose was to regain compliance with the $1.00 minimum bid price in Nasdaq Listing Rule 5550(a)(2). The 8-K cited 31,364,812 shares outstanding immediately before the split, while the 10-Q balance sheet shows 28,364,812 shares at June 30.

The science is early

Curanex describes itself as a developmental stage company pursuing botanical drugs for inflammatory diseases. Its lead candidate, Phyto-N, is a botanical extract, and the 10-K says its research to date has been limited to preclinical studies across six core indications. On April 2, 2026, the company added cancer cachexia as a new core indication.

The 10-K says Curanex plans to submit an IND for ulcerative colitis in the fourth quarter of 2026. It says a Phase I trial would begin 30 days after submission if the FDA allows it, and separately that Phase 1 development is planned to start in Australia in the fourth quarter of 2026. The company has said a 28-day dose-range finding study in rats and dogs, announced in March 2026, showed no treatment-related adverse findings of toxicological significance. That is animal data, and the pivotal GLP toxicology studies that support an IND are still ahead.

The 10-Q lists plans to raise capital, license assets and cut spending, but it does not describe any completed financing or license deal.

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