ANTX Narrows Q3 Loss, R&D Spend Halved Amid Cash Burn

TL;DR

**ANTX is burning cash slower, but they're still burning it, so watch for future financing needs.**

AI Summary

AN2 Therapeutics, Inc. (ANTX) reported a net loss of $9.353 million for the three months ended September 30, 2025, an improvement from a net loss of $12.747 million in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $26.464 million, significantly lower than the $43.799 million loss in the prior year. Research and development expenses decreased to $7.000 million for the quarter, down from $8.287 million, and to $17.890 million for the nine months, a substantial reduction from $35.091 million in 2024. General and administrative expenses remained relatively stable at $3.040 million for the quarter and $10.903 million for the nine months. The company's cash, cash equivalents, and investments stood at $65.1 million as of September 30, 2025, down from $88.6 million at December 31, 2024. Management believes current capital is sufficient to fund operations for at least 12 months from the issuance date of the financial statements. The company did not sell any shares through its At-The-Market (ATM) offering during the nine months ended September 30, 2025, after raising $19.1 million in net proceeds from 2,502,000 shares sold in 2023.

Why It Matters

AN2 Therapeutics' reduced net loss and R&D expenses signal a more disciplined approach to capital allocation, which is crucial for a clinical-stage biopharmaceutical company with no revenue. For investors, this indicates a potential extension of their cash runway, mitigating immediate dilution concerns. However, the continued significant cash burn and reliance on existing capital for future development highlight the inherent risks in biotech. Competitively, efficient R&D spending is vital to advance their boron chemistry platform against rivals in Chagas disease, NTM lung disease, and melioidosis, where successful drug development could unlock substantial market opportunities.

Risk Assessment

Risk Level: medium — The company reported an accumulated deficit of $232.2 million as of September 30, 2025, and incurred a net loss of $26.5 million for the nine months ended September 30, 2025. While management believes current cash and investments of $65.1 million will fund operations for at least 12 months, the company's historical reliance on capital raises and continued losses present a medium-term liquidity risk.

Analyst Insight

Investors should monitor ANTX's progress in clinical trials for its product candidates, as successful advancement could significantly de-risk the investment. Given the current cash runway, investors should also anticipate potential future financing activities beyond the 12-month outlook, which could lead to dilution.

Financial Highlights

debt To Equity

Not Disclosed

revenue

Not Disclosed

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

-$9.353M

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

$65.1M

revenue Growth

Not Disclosed

Key Numbers

• $26.464M — Net Loss (Nine months ended September 30, 2025, a decrease from $43.799M in 2024.)
• $17.890M — Research and Development Expenses (Nine months ended September 30, 2025, a significant reduction from $35.091M in 2024.)
• $65.1M — Cash, Cash Equivalents, and Investments (As of September 30, 2025, down from $88.6M at December 31, 2024.)
• $232.2M — Accumulated Deficit (As of September 30, 2025, indicating substantial historical losses.)
• $24.598M — Net Cash Used in Operating Activities (Nine months ended September 30, 2025, an improvement from $43.984M in 2024.)

Key Players & Entities

• AN2 Therapeutics, Inc. (company) — biopharmaceutical company
• Nasdaq Global Select Market (regulator) — stock exchange where ANTX trades
• U.S. Food and Drug Administration (regulator) — regulatory body for product candidates
• Cowen and Company, LLC (company) — sales agent and underwriter for offerings
• Leerink Partners LLC (company) — underwriter for offerings
• Evercore Group L.L.C. (company) — underwriter for offerings
• $100.0 million (dollar_amount) — aggregate gross sales target for ATM offering
• $19.1 million (dollar_amount) — net proceeds from 2023 ATM offering
• $65.5 million (dollar_amount) — net proceeds from 2023 Underwritten Offering
• Delaware (company) — state of incorporation

FAQ

Risk Factors

• Substantial Accumulated Deficit [high — financial]: The company has an accumulated deficit of $232.2 million as of September 30, 2025. This indicates a history of significant net losses, which raises concerns about the company's long-term financial sustainability and its ability to achieve profitability.
• Dependence on Future Financing [high — financial]: AN2 Therapeutics' current cash, cash equivalents, and investments stood at $65.1 million as of September 30, 2025, a decrease from $88.6 million at the end of 2024. While management believes current capital is sufficient for at least 12 months, the company's ability to fund future operations and development activities beyond this period is dependent on its ability to secure additional financing.
• Reliance on Research and Development Success [high — operational]: The company's primary focus is on research and development, with R&D expenses totaling $17.890 million for the nine months ended September 30, 2025. The success of its drug candidates is critical for future revenue generation. Any setbacks or failures in the R&D pipeline could severely impact the company's prospects.
• Drug Development and Regulatory Approval Risks [high — regulatory]: As a biotechnology company, AN2 Therapeutics faces significant risks associated with the lengthy, complex, and expensive process of drug development and obtaining regulatory approval from bodies like the FDA. Delays or failures in this process can lead to substantial financial losses and impact market entry.
• Competition in the Pharmaceutical Market [medium — market]: The pharmaceutical industry is highly competitive. AN2 Therapeutics operates in a landscape with established players and emerging companies, all vying for market share and patient access. The company must differentiate its products and effectively compete on efficacy, safety, and price.
• No ATM Offering Proceeds in 2025 [medium — financial]: The company did not sell any shares through its At-The-Market (ATM) offering during the nine months ended September 30, 2025. This indicates a lack of immediate need or strategic decision to raise capital via this method in the current period, contrasting with the $19.1 million raised in 2023.

Industry Context

AN2 Therapeutics operates within the highly competitive and capital-intensive biotechnology and pharmaceutical sector. The industry is characterized by long drug development cycles, significant R&D investment, and stringent regulatory oversight. Success hinges on innovation, clinical trial outcomes, and the ability to navigate complex regulatory pathways to bring novel therapies to market.

Regulatory Implications

As a clinical-stage biotechnology company, AN2 Therapeutics is subject to extensive regulatory scrutiny from agencies like the FDA. The success of its drug candidates hinges on meeting rigorous safety and efficacy standards for approval. Any delays or failures in the regulatory process pose significant risks to the company's development timeline and commercialization prospects.

What Investors Should Do

1. Monitor R&D Pipeline Progress
2. Assess Cash Burn Rate and Runway
3. Analyze Expense Management

Glossary

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total historical losses since the company's inception. (Indicates the company's history of unprofitability, with a current accumulated deficit of $232.2 million as of September 30, 2025.)

At-The-Market (ATM) Offering

A type of public offering where a company sells its shares directly into the open market over a period of time, typically through a broker or dealer. (AN2 Therapeutics did not utilize its ATM offering in the nine months ended September 30, 2025, after raising $19.1 million in 2023, suggesting a change in capital raising strategy or needs.)

Cash, Cash Equivalents, and Investments

Highly liquid financial assets that can be readily converted into cash. This includes cash on hand, bank deposits, and short-term, highly liquid securities. (Represents the company's readily available funds for operations and investments, standing at $65.1 million as of September 30, 2025.)

Net Cash Used in Operating Activities

The net amount of cash spent or received by a company from its normal business operations during a period. (For the nine months ended September 30, 2025, this was $24.598 million, showing an improvement from $43.984 million in the prior year, indicating better cash management in core operations.)

Year-Over-Year Comparison

AN2 Therapeutics has demonstrated a positive trend in reducing its net loss, with a $9.353 million loss for the three months ended September 30, 2025, down from $12.747 million in the prior year. A significant reduction in R&D expenses to $17.890 million for the nine months (from $35.091 million in 2024) has contributed to this improvement. However, the company's cash position has decreased to $65.1 million from $88.6 million at the end of 2024, and no ATM proceeds were raised in the current period, highlighting ongoing reliance on existing capital and potential future financing needs.

Key Financial Figures

• $0.00001 — ch registered Common Stock, par value $0.00001 per share ANTX The Nasdaq Global Se

Filing Documents

• antx-20250930.htm (10-Q) — 2652KB
• antx-ex31_1.htm (EX-31.1) — 19KB
• antx-ex31_2.htm (EX-31.2) — 19KB
• antx-ex32_1.htm (EX-32.1) — 9KB
• antx-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-277673.txt ( ) — 8566KB
• antx-20250930.xsd (EX-101.SCH) — 1021KB
• antx-20250930_htm.xml (XML) — 1376KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Balance Sheets 3 Condensed Statements of Operations and Comprehensive Loss 4 Condensed Statements of Stockholders' Equity 5 Condensed Statements of Cash Flows 7 Notes to Unaudited Condensed Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 38 PART II. OTHER INFORMATION 40 Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 93 Item 3. Defaults Upon Senior Securities 94 Item 4. Mine Safety Disclosures 94 Item 5. Other Information 94 Item 6. Exhibits 95

Signatures

Signatures 96 i SPECIAL NOTE REGA RDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("Form 10-Q") contains forward-looking statements. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding our future results of operations and financial position, business strategy, product candidates, planned preclinical and nonclinical studies and clinical trials, results of preclinical and nonclinical studies, clinical trials, research and development costs, regulatory approvals, timing and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that are in some cases beyond our control and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "would," "expect," "plan," "anticipate," "could," "intend," "target," "project," "believe," "estimate," "predict," "potential," or "continue," or the negative of these terms or other similar expressions. Forward-looking statements contained in this Form 10-Q include, but are not limited to, statements about: the initiation, timing, progress, and results of our preclinical and nonclinical studies and clinical trials, and our research and development programs, including the manufacture of clinical trial material and drug product for launch; the sufficiency of our existing cash to fund our future operating expenses and capital expenditure requirements; the accuracy of our estimates regarding expenses, capital requirements and needs for additional financing; our use of the net proceeds from financing activities; the outcome of potential interactions w

—FIN ANCIAL INFORMATION

PART I—FIN ANCIAL INFORMATION Ite m 1. Financial Statements. AN2 THERAPEUTICS, INC. CONDENSED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 18,003 $ 21,351 Short-term investments 43,918 62,267 Prepaid expenses and other current assets 2,095 2,644 Total current assets 64,016 86,262 Long-term investments 3,219 5,021 Other assets, long-term — 804 Total assets $ 67,235 $ 92,087 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 2,226 $ 3,317 Accrued compensation 1,744 1,676 Accrued liabilities 2,705 4,454 Other current liabilities 183 791 Total liabilities 6,858 10,238 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $ 0.00001 par value; 10,000,000 shares authorized at September 30, 2025 and December 31, 2024; no shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock, $ 0.00001 par value; 500,000,000 shares authorized at September 30, 2025 and December 31, 2024; 27,371,154 and 29,919,634 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively — — Additional paid-in capital 292,553 287,594 Accumulated other comprehensive gain 64 31 Accumulated deficit ( 232,240 ) ( 205,776 ) Total stockholders' equity 60,377 81,849 Total liabilities and stockholders' equity $ 67,235 $ 92,087 The accompanying notes are an integral part of these unaudited interim condensed financial statements. 3 AN2 THERAPEUTICS, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Operating expenses: Research and developme

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