aibioEloxx Pharmaceuticals files NT 10-Q, cites lack of funds for accountant review
Tickers ELOX
Eloxx says it cannot afford to engage its auditor to review first quarter 2025 financials, and it expects to disclose substantial doubt about its ability to continue as a going concern. It expects cash of $0.4 million at March 31, 2025.
Key facts
- Company
- Eloxx Pharmaceuticals, Inc. (NASDAQ: ELOX)
- News type
- Distress
- Primary source
- Eloxx Pharmaceuticals, Inc. Form NT 10-Q filed May 15, 2025 (SEC EDGAR)
Eloxx Pharmaceuticals, Inc. filed a notification of late filing on Form 12b-25, commonly called an NT 10-Q, on May 15, 2025. The company says it cannot file its quarterly report for the period ended March 31, 2025 on time. The notice is in a Form NT 10-Q filed May 15, 2025, which gives the reason as a lack of money to pay its independent accounting firm.
The reason given
The company says it was unable to allocate the financial resources needed to engage its independent public accounting firm to review its first-quarter 2025 financial statements. It says those financial constraints are ongoing. It had made the same kind of notice before. In Form 12b-25 notices filed April 1, 2024 and April 1, 2025, it said it could not file its annual reports for 2023 and 2024, because it could not pay its independent accounting firm to perform the audits.
The notice lists, as not yet filed, the annual report on Form 10-K for 2024 and the 10-K for 2023, along with the quarterly reports for the first three quarters of 2024. The company answers "No" to the question of whether all required reports have been filed.
The cash position
Eloxx expects to report cash and cash equivalents of $0.4 million as of March 31, 2025. That compares with $0.1 million at December 31, 2024, and $4.8 million at September 30, 2023, the notice says. The company expects a significant increase in its net loss and accumulated deficit for the first quarter of 2025 compared with the same quarter of 2024.
The notice also says management expects to disclose substantial doubt about the company's ability to continue as a going concern. The reason is that the company does not have enough cash to support its planned operations for at least twelve months from the expected issuance date of the first-quarter financial statements. The notice says those figures are preliminary and subject to change.
Where the cash went
The company's 10-K for 2022, filed in 2023, reported the following. It reported a net loss of $36.1 million for 2022 and an accumulated deficit of $274.4 million at December 31, 2022. Cash and cash equivalents were $19.2 million at that date, and the company said that amount was not sufficient to maintain its planned operations for the next twelve months.
The lead product candidate then was ELX-02, for Alport syndrome. The company began a Phase 2 monotherapy trial in November 2022 and announced in February 2023 that the first patients had been enrolled. The annual report describes ELX-02 as the company's lead product candidate.
Between the 2022 annual report and the notice, the company's reported cash fell from $19.2 million to $0.1 million at December 31, 2024. The notice does not say how the company spent the money or why it could not pay for the audit.
The public filings gap
The notice lists the 2023 and 2024 annual reports and the first three 2024 quarterly reports as not yet filed. A company that has not filed its annual reports for 2023 and 2024 is not current in its reporting.
What comes next
The company has not said when it will file the quarterly report. The notice gives no date for when it expects to pay its auditors or file the missing annual reports. The notice pairs the expected going-concern disclosure with cash of $0.4 million at March 31, 2025.