aibioTurn Therapeutics ends June with $10.3 million and a going-concern warning
Tickers TTRX
Management says June 30 cash covers GX-03 work in atopic dermatitis into the third quarter of 2027, but the 10-Q also raises substantial doubt that Turn can continue as a going concern.
Key facts
- Company
- Turn Therapeutics Inc. (NASDAQ: TTRX)
- News type
- Distress
- Primary source
- SEC EDGAR: Turn Therapeutics 10-Q
Turn Therapeutics (Nasdaq: TTRX) ended June with $10,288,510 of cash and cash equivalents, up from $5,076,144 at the end of 2025, according to its quarterly report filed August 12. The increase came from financing, mainly a new loan, not from operations. In the same report the company said its capital resources may not be sufficient to fund operations through at least the next 12 months, "which raises substantial doubt about our ability to continue as a going concern."
The runway and the doubt
The 10-Q says the June 30 cash and equivalents of approximately $10.3 million should fund operating expenses and research and development for GX-03 in atopic dermatitis into the third quarter of 2027. Turn adds that the estimate rests on assumptions that may prove wrong and could deplete capital sooner. Working capital was approximately $7.8 million, a figure that excludes the derivative liability. The accumulated deficit was $29.2 million.
If more money does not arrive, the company says it may have to cut staff and delay, limit or end product development, or license out programs it would rather keep. It expects to rely on equity offerings, including draw-downs under its Share Purchase Agreement, on debt financing and on collaborations.
The numbers
The net loss for the second quarter was $5,849,734, against $1,240,415 a year earlier. For six months it was $6,820,865, against $1,568,972. Most of the widening came from items outside operations. Turn booked a $3,341,568 loss on the change in fair value of its derivative liability in the quarter and $638,747 of amortized deferred offering costs. Operating expenses were $1,628,060 in the quarter, including $1,152,996 of general and administrative expense and $475,064 of research and development, up from $62,678.
Operations used $2,556,171 of cash in the first six months. Financing provided $7,786,562, of which $6,716,562 was proceeds from the Avenue Capital loan agreement and $1,070,000 was a collected stock subscription receivable. Turn also issued 342,857 shares under the Avenue Capital agreement, valued at $1,050,967, and paid $235,813 of interest on the term loan.
The balance sheet is thin against that cash. Long-term debt, net, was $6,062,994, and the derivative liability was $6,109,030, up from $3,028,401. Stockholders' equity fell to $686,888 from $4,686,723.
What the science shows so far
Turn describes itself as a clinical-stage biotechnology and medical device company built on its PermaFusion delivery platform. Its lead drug candidate, GX-03, is a topical product being tested in moderate-to-severe atopic dermatitis. The 10-K filed in March said topline results were expected in mid-2026. An October 2026 corporate presentation instead puts Phase 2 topline results in the first quarter of 2027, after a Stage 1 analysis in June 2026 of 50 patients led to a larger Stage 2 of about 135.
The company's headline Stage 1 result is hard to read. In all 50 patients, 59.3% on GX-03 reached the week 4 vIGA-AD success measure, against 30.4% on vehicle, with a p-value of about 0.056, which is above the usual 0.05 threshold. The stronger figures come from a subgroup of 25 patients with a baseline PP-NRS score of 7 or more: 61.5% against 8.3% on that measure, with a p-value of 0.0123. Stage 2 now makes that baseline score a mandatory inclusion criterion. For the same subgroup the presentation lists a week 8 EASI-90 p-value of 0.0914 and a week 8 EASI-100 p-value of 0.0704, and it notes that baseline characteristics favored the vehicle arm. Stage 1 safety showed one adverse event in each arm and no serious ones.
The presentation lists an FDA Type B meeting for the fourth quarter of 2026, a Phase 2a start in hidradenitis suppurativa in the first quarter of 2027, a Phase 3 start in onychomycosis in the second quarter of 2027 and a Phase 3 start in atopic dermatitis in mid-2027. It says every milestone is subject to the success of earlier phases and to capital availability, and its chart marks some as requiring additional capital.