aibioOncolytics Biotech flags going concern doubt in first-quarter statements
Tickers ONCY
Oncolytics had cash of 15,303 thousand Canadian dollars at March 31, 2025, and said it can fund operations through the third quarter of 2025.
Key facts
- Company
- Oncolytics Biotech Inc. (NASDAQ: ONCY)
- News type
- Financings
- Primary source
- Oncolytics Biotech Inc. 6-K (2025-05-14)
Oncolytics Biotech Inc. (Nasdaq: ONCY) said in its first-quarter 2025 interim financial statements that material uncertainties "raise substantial doubt on our ability to continue as a going concern and meet our obligations as they come due." The statements cover the three months ended March 31, 2025, and were furnished on a Form 6-K. The company reports in thousands of Canadian dollars, so the figures below are in Canadian dollars.
What the going-concern note means here
The note says management cannot be sure the company can keep operating for the next twelve months without raising more money. Oncolytics says it can currently fund operations only through the third quarter of 2025. It names the sources it expects to use: equity, collaborations and debt. It also cites the difficulty micro-cap companies have in raising significant capital, and it refers to a Nasdaq delinquency notification it has received. The statements do not describe that notification.
The company says there can be no assurance that additional liquidity will be available on acceptable terms, or at all. It also says that if it cannot obtain financing when needed, it may not be able to reduce spending enough to extend its operating runway.
The balance sheet
Cash and cash equivalents were C$15,303 thousand at March 31, 2025, down from C$15,942 thousand at December 31, 2024. The cash flow statement shows cash used in operating activities of C$6,498 thousand, against C$7,469 thousand a year earlier. That was offset in part by C$5,993 thousand of net proceeds from the company's at-the-market equity program, after a C$103 thousand payment on lease liabilities, leaving a decrease in cash of C$608 thousand for the quarter.
Total liabilities were C$13,208 thousand, down from C$14,204 thousand. A non-current contract liability of C$6,730 thousand did not change during the quarter.
Shareholders' equity rose to C$6,494 thousand from C$5,983 thousand. The accumulated deficit reached C$484,400 thousand, up from C$477,713 thousand at year-end 2024. Shares issued rose to 86,421,592 from 80,020,131.
The quarter's results
The net loss for the first quarter of 2025 was C$6,687 thousand, compared with C$6,894 thousand in the first quarter of 2024. Research and development expense was C$4,083 thousand, down from C$5,743 thousand, and general and administrative expense was C$2,916 thousand, against C$2,983 thousand. The statements show a foreign exchange loss of C$51 thousand and a fair value gain on a warrant derivative of C$240 thousand, and interest income of C$123 thousand.
What comes next
After the quarter ended, Oncolytics entered into a share purchase agreement with Alumni Capital LP. Under it, Oncolytics has the right to sell common shares to Alumni over a 15-month period, and Alumni is obligated to purchase them. The statements do not give the price or the cap on the shares Alumni is to take.
The company also has a short-form base shelf prospectus, renewed on July 19, 2024. It allows the sale of up to C$150 million of common shares, subscription receipts, warrants or units in Canada, the United States or both. The shelf is effective until August 19, 2026. The statements say sales may be made to or through underwriters, dealers, placement agents or other intermediaries, but they do not name any for the at-the-market program.
The business behind the numbers
Oncolytics is a clinical-stage biopharmaceutical company developing pelareorep, an intravenously delivered immunotherapy. It is headquartered in Calgary, Alberta. The 2024 annual report on Form 20-F, filed March 7, 2025, says the company has not been profitable since its inception, expects to keep incurring substantial losses and does not expect significant revenue unless pelareorep becomes commercially viable. Its primary focus is hormone receptor-positive, HER2-negative advanced and metastatic breast cancer and metastatic pancreatic ductal adenocarcinoma, moving toward registration-enabled studies, with anal cancer explored through its GOBLET platform study. The first-quarter statements say the company's ability to continue depends on raising more money through equity or strategic deals.