M&A - ADIAL PHARMACEUTICALS, INC.

Form Type: 10-Q

Filing Date: 2025-05-14

Corporate Action: Merger

Type: Update

Accession Number: 000121390025043281

Filing Summary: Adial Pharmaceuticals, Inc. reported its quarterly results for the period ending March 31, 2025, revealing a net loss of $2,228,801 compared to a net loss of $6,476,560 for the same period in 2024. The company's total assets decreased to $3,451,122 from $5,043,942 in the prior quarter, driven by a decrease in cash and cash equivalents, which stand at $2,365,780. Current liabilities were reported at $1,324,460, up from $975,858 in the previous period. Adial incurred higher research and development expenses of $746,891, reflecting ongoing development activities. The company also noted a merger with its subsidiary Purnovate, which was approved by the board in January 2025, with the expectation that this will have no impact on the condensed consolidated financial statements. Additionally, Adial recognized $150,000 in other income from a contingent payment associated with the sale of assets of Purnovate to Adovate, LLC. The number of common shares outstanding as of May 13, 2025, was 7,900,695.

Form Type: 10-K

Filing Date: 2025-03-04

Corporate Action: Acquisition

Type: Update

Accession Number: 000121390025019771

Filing Summary: Adial Pharmaceuticals, Inc. reports on its clinical-stage biopharmaceutical focus, specifically the development of the AD04 drug for alcohol use disorder. The company has experienced significant losses since inception, culminating in a $13.2 million loss for 2024. The current cash situation poses a threat to sustaining operations for the upcoming year. A merger with Purnovate, LLC established an expanded portfolio in addiction treatment. In 2023, an agreement with Adovate LLC was executed, allowing Adovate to acquire Purnovate’s assets, effective June 2023. Adial has engaged in various funding measures, including a recent Purchase Agreement with Alumni Capital to raise up to $10 million in equity capital. Additionally, a pharmacokinetics study for AD04 has been completed, meeting FDA requirements for future trials. The company’s operational strategy hinges on successfully developing and marketing AD04 amid considerable business and market risks.