$ADIL

ADIAL PHARMACEUTICALS, INC.

CIK:0001513525|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating Expenses:
Research and development expenses	$ 440	$ 732	$ 873	$ 1,479
General and administrative expenses	5,400	1,150	6,969	2,671
Acquired in process research and development	46,185		46,185
Total Operating Expenses	52,025	1,882	54,027	4,150
Loss From Operations	(52,025)	(1,882)	(54,027)	(4,150)
Other Income (Expense)
Interest income	58	24	105	59
Change in fair value of milestone warrant rights liability	8,280		8,280
Financing Expense Related To Milestone Warrant Rights Liability	(2,067)		(2,067)
Loss on extinguishment	(6,054)		(6,054)
Loss on equity method investment	(181)	(99)	(249)	(262)
Other income (expenses)		(1)		165
Total other income (expense)	36	(76)	15	(38)
Net Loss	$ (51,989)	$ (1,958)	$ (54,012)	$ (4,188)
Loss per share, basic	$ (11.25)	$ (4.61)	$ (17.97)	$ (12.19)
Loss per share, diluted	$ (11.25)	$ (4.61)	$ (17.97)	$ (12.19)
Weighted average shares, basic	4,621,735	424,908	3,004,904	343,700
Weighted average shares, diluted	4,621,735	424,908	3,004,904	343,700

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (54,012)	$ (4,188)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity-based compensation	285	361
Change in fair value of milestone warrant rights liability	(8,280)
Financing Expense Related To Milestone Warrant Rights Liability	2,067
Loss on extinguishment of Azora Therapeutics convertible promissory notes	6,054
Acquired in process research and development	46,185
Change in value of equity method investment	249	262
Change in fair value contingent consideration		(150)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	176	145
Accrued expenses	(2,354)	(137)
Accounts payable	1,655	420
Accounts payable, related party		(48)
Net cash used in operating activities	(7,975)	(3,335)
Cash flows from investing activities:
Cash receipt from contingent consideration		150
Net cash assumed in the acquisition of Azora Therapeutics	5,282
Net cash provided by investing activities	5,282	150
Cash flows from financing activities:
Net proceeds from sale of common stock	1,165	3,127
Proceeds from the private placement issuance of pre-funded warrants	26,800
Issuance costs from the private placement issuance of pre-funded warrants	(2,441)
Proceeds from warrant exercise, net of expenses		2,222
Net cash provided by financing activities	25,524	5,349
Net increase in cash and cash equivalents	22,831	2,164
Cash and cash equivalents at beginning of period	5,881	3,751
Cash and cash equivalents at end of period	28,712	5,915
Supplemental disclosure of noncash financing information:
Fair value of Series A convertible preferred stock issued for the acquisition of Azora Therapeutics	38,533
Net liabilities acquired in the acquisition of Azora Therapeutics	9,964
Issuance costs from the private placement issuance of pre-funded warrants included in accounts payable	35
Extinguishment of the Azora Therapeutics convertible promissory notes to pre-funded warrants	5,585
Transaction costs for the acquisition of Azora Therapeutics in accounts payable and accrued liabilities	2,412
Right to purchase Milestone warrants in association with the private placement issuance of the pre-funded warrants	$ 32,092

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 28,712	$ 5,881
Prepaid expenses and other current assets	133	300
Total Current Assets	28,845	6,181
Intangible assets, net	3	3
Equity method investment	241	490
Total Assets	29,089	6,674
Current Liabilities:
Accounts payable	2,624	655
Accrued expenses	2,497	742
Total Current Liabilities	5,121	1,397
Milestone warrant rights liability	23,812
Total Liabilities	28,933	1,397
Commitments and contingencies – see Note 10
Series A convertible preferred stock, $0.001 par value; 13,000 and 0 shares designated as of June 30, 2026 and December 31, 2025, respectively; 12,930.617 and 0 shares issued and outstanding as of June 30 2026 and December 31, 2025, respectively	38,533
Stockholders’ (Deficit) Equity
Preferred Stock, 5,000,000 shares authorized with a par value of $0.001 per share as of June 30, 2026 and December 31, 2025
Common Stock, 100,000,000 shares authorized with a par value of $0.001 per share, 2,625,890 and 1,111,010 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	3	1
Additional paid in capital	105,604	95,248
Accumulated deficit	(143,984)	(89,972)
Total Stockholders’ (Deficit) Equity	(38,377)	5,277
Total Liabilities, Temporary Equity and Stockholders’ (Deficit) Equity	$ 29,089	$ 6,674