--- title: "Liquidia files 2024 financials with going-concern doubt" url: "https://aibio.space/news/liquidia-files-2024-financials-going-concern-doubt-revised-debt/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-05-08" section: "Distress" tickers: "NASDAQ:LQDA" source: "https://www.sec.gov/Archives/edgar/data/1819576/000155837025006838/lqda-20241231xex99d1.htm" summary: "The auditor's report cites recurring losses. Management also changed how it accounts for two amendments to a $100.0 million royalty-backed financing." --- By the aibio.space news desk. Sources - [Liquidia Corporation 8-K (2025-05-08)](https://www.sec.gov/Archives/edgar/data/1819576/000155837025006838/lqda-20241231xex99d1.htm) [LQDA](https://aibio.space/companies/liquidia/) 2025-05-08 # Liquidia files 2024 financials with going-concern doubt, revised debt accounting Tickers [LQDA](https://aibio.space/companies/liquidia/) The auditor's report cites recurring losses. Management also changed how it accounts for two amendments to a $100.0 million royalty-backed financing. ## Key facts - **Company**: Liquidia Corporation (NASDAQ: LQDA) - **News type**: Distress - **Primary source**: [Liquidia Corporation 8-K (2025-05-08)](https://www.sec.gov/Archives/edgar/data/1819576/000155837025006838/lqda-20241231xex99d1.htm) *The facade of a neoclassical court building at dusk. Photo: Carol M Highsmith, CC0, via rawpixel. The picture shows the field, not the companies named.* Liquidia Corporation (Nasdaq: [LQDA](https://aibio.space/companies/liquidia/)) filed an 8-K on May 8, 2025 that includes its financial statements for the year ended December 31, 2024, together with the auditor's report. The report carries a section titled "Substantial Doubt About the Company's Ability to Continue as a Going Concern." The auditor, PricewaterhouseCoopers LLP of Raleigh, North Carolina, says recurring losses since inception, and expected continued operating losses and negative cash flows, raise substantial doubt about that ability. The statements include no adjustments for the outcome of that uncertainty. ### Management's own warning Management's note says that, based on current operating plans and excluding any external financing, Liquidia will not have enough cash to fund operating expenses, capital requirements and its minimum cash covenants beyond one year from the date the statements were issued. It says it will need additional funding over the next twelve months, and that it could be required to delay, reduce or eliminate research and development programs, or "potentially force us to cease operations." The 2024 net loss was $128.3 million, compared with $78.5 million in 2023, and the accumulated deficit reached $557.4 million. Cash used in operating activities was $93,422 thousand in 2024, against $41,564 thousand in 2023. Financing activities provided $194,663 thousand, which left year-end cash and cash equivalents of $176,479 thousand, up from $83,679 thousand. Management ties its conclusion to its operating plans and the minimum cash covenants, even though year-end cash was higher than a year earlier. Sales of common stock, net of issuance costs, brought in $138,551 thousand in 2024. ### The HCR debt and the restatement The debt is a revenue interest financing agreement with HealthCare Royalty Partners IV, L.P., and HealthCare Royalty Management, LLC, dated January 9, 2023 and amended since. It was set up for up to $100.0 million in four tranches. In 2024 the lender funded $25.0 million more on January 5 and $32.5 million more on September 12, and the third and fourth tranches were eliminated. Aggregate payments are capped at 175% of the funded amount, plus an internal rate of return true-up. If a change of control occurs or an event of default happens, HCR may accelerate payments up to that cap. The agreement also requires minimum cash and cash equivalents of $15.0 million for the rest of the payment term, which runs to 2031. Liquidia first treated the Fourth and Fifth Amendments as extinguishments of debt. After reevaluating them, management concluded that they are modifications. The company describes the resulting errors as immaterial and says they affected its previously issued 2024 statements. The revised 2024 net loss is $128,291 thousand, down from $130,394 thousand as previously reported. Accumulated deficit moves to $557,389 thousand from $559,492 thousand, and stockholders' equity to $79,378 thousand from $77,275 thousand. The HCR payable at year-end was $18,016 thousand current and $95,268 thousand long-term. The auditor named long-term debt as a critical audit matter for that reason. ### The product behind the cash need Liquidia's lead product candidate is YUTREPIA, an inhaled dry powder formulation of treprostinil for pulmonary arterial hypertension and PH-ILD. It is built on the company's PRINT particle engineering technology. On August 16, 2024, the FDA granted tentative approval to the NDA for YUTREPIA. At the same time, the FDA determined that Tyvaso DPI, approved on May 23, 2022, qualifies for three-year New Clinical Investigation exclusivity for dry powder treprostinil. Final approval of YUTREPIA for those indications is therefore delayed until after that exclusivity expires on May 23, 2025. The company also develops L606, a twice-daily liposomal treprostinil licensed from Pharmosa Biopharm Inc., which is in an open-label study in the United States. Operations also show the cost of that work. Revenue for 2024 was $13,996 thousand, against $17,488 thousand in 2023. Research and development expense rose to $47,842 thousand from $43,242 thousand, and general and administrative expense rose to $81,569 thousand from $44,742 thousand. Total costs and expenses were $135,290 thousand, compared with $90,872 thousand a year earlier. The same statements carry the auditor's opinion that they present fairly, in all material respects, the company's financial position and results. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story LQDA Liquidia Corporation NASDAQ ยท 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/liquidia-files-2024-financials-going-concern-doubt-revised-debt/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Liquidia files 2024 financials with going-concern doubt", 2025-05-08, https://aibio.space/news/liquidia-files-2024-financials-going-concern-doubt-revised-debt/