Applied Therapeutics' Cash Dries Up Amidst Mounting Deficit

TL;DR

**Applied Therapeutics is burning through cash at an alarming rate and is on the brink of collapse, making it a high-risk bet for any investor.**

AI Summary

Applied Therapeutics, Inc. reported a net loss of $18.99 million for the three months ended September 30, 2025, a significant improvement from the $68.59 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $62.145 million, down from $149.631 million in 2024. Total revenue for the three months ended September 30, 2025, was $1.0 million, primarily from license revenue, compared to $0.122 million in 2024. Research and development expenses decreased to $9.601 million for the quarter, down from $14.828 million in 2024, and general and administrative expenses also fell to $8.157 million from $15.037 million. The company's cash and cash equivalents plummeted from $79.398 million at December 31, 2024, to $11.945 million as of September 30, 2025, indicating a substantial burn rate. The accumulated deficit reached $636.355 million by September 30, 2025, and total stockholders' deficit was $561 thousand, raising substantial doubt about its ability to continue as a going concern within one year.

Why It Matters

Applied Therapeutics' precarious financial position, highlighted by a cash balance of just $11.945 million and a stockholders' deficit of $561 thousand, signals severe liquidity concerns for investors. This could lead to further dilutive equity raises or even bankruptcy, impacting existing shareholders significantly. For employees, the going concern doubt creates job insecurity. Customers and the broader market for rare disease treatments, specifically for Galactosemia and Sorbitol Dehydrogenase deficiency, face uncertainty regarding the continued development and availability of Applied Therapeutics' product candidates, potentially leaving unmet medical needs. The competitive landscape in rare disease drug development is intense, and Applied Therapeutics' financial struggles could allow rivals to gain market share.

Risk Assessment

Risk Level: high — The company's cash and cash equivalents decreased from $79.398 million at December 31, 2024, to $11.945 million at September 30, 2025, representing an 85% decline. Furthermore, the total stockholders' equity has turned into a deficit of $561 thousand as of September 30, 2025, from a positive $57.006 million at December 31, 2024, indicating severe financial distress and raising substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should immediately consider divesting any holdings in Applied Therapeutics, Inc. given the severe liquidity issues and the explicit 'going concern' warning. The rapid depletion of cash and the negative stockholders' equity suggest a high probability of further dilutive financing or potential insolvency, making it an extremely speculative investment.

Financial Highlights

debt To Equity

N/A

revenue

$1,000,000

operating Margin

-1675.8%

total Assets

$34,374,000

total Debt

$34,935,000

net Income

-$18,990,000

eps

N/A

gross Margin

N/A

cash Position

$11,945,000

revenue Growth

721.3%

Revenue Breakdown

Key Numbers

• $11.945M — Cash and cash equivalents (Decreased from $79.398 million at Dec 31, 2024, indicating rapid cash burn.)
• $561K — Total stockholders' deficit (Shifted from positive $57.006 million at Dec 31, 2024, to a deficit, signaling severe financial distress.)
• $18.99M — Net loss (Q3 2025) (Improved from $68.591 million in Q3 2024, but still a significant loss.)
• $62.145M — Net loss (YTD Sep 2025) (Improved from $149.631 million in YTD Sep 2024, but still substantial.)
• $1.0M — Total revenue (Q3 2025) (Increased from $0.122 million in Q3 2024, primarily from license revenue.)
• $636.355M — Accumulated deficit (Increased from $574.210 million at Dec 31, 2024, reflecting ongoing losses.)
• 144,300,674 — Shares outstanding (As of September 30, 2025, indicating potential dilution from previous issuances.)

Key Players & Entities

• Applied Therapeutics, Inc. (company) — clinical-stage biopharmaceutical company
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Capital Market (company) — exchange where APLT is listed
• Galactosemia (other) — rare metabolic disease targeted by the company
• Sorbitol Dehydrogenase (SORD) deficiency (other) — rare metabolic disease targeted by the company
• Bloomberg (company) — financial news organization
• FDA (regulator) — Food and Drug Administration
• Private Securities Litigation Reform Act of 1995 (regulator) — federal securities law

FAQ

Risk Factors

• Substantial doubt about going concern [high — financial]: The company's cash and cash equivalents decreased from $79.4 million at December 31, 2024, to $11.9 million as of September 30, 2025. Coupled with an accumulated deficit of $636.4 million and a total stockholders' deficit of $561 thousand, there is substantial doubt about the company's ability to continue as a going concern within one year.
• Significant cash burn rate [high — financial]: The net loss for Q3 2025 was $19.0 million, and $62.1 million year-to-date. While improved from prior periods, this continued high burn rate, combined with the dwindling cash reserves, presents a significant financial risk.
• Negative stockholders' equity [high — financial]: The company has transitioned from a positive stockholders' equity of $57.0 million at December 31, 2024, to a deficit of $561 thousand as of September 30, 2025. This indicates that liabilities now exceed assets, a critical financial distress signal.
• Dependence on future financing [high — operational]: Given the current cash position and burn rate, the company will likely require significant additional funding to continue its operations and development activities. Failure to secure such funding could jeopardize its future.
• Reduction in R&D and G&A expenses [medium — operational]: R&D expenses decreased from $14.8 million in Q3 2024 to $9.6 million in Q3 2025, and G&A expenses fell from $15.0 million to $8.2 million. While this improves short-term cash flow, it could indicate a slowdown in development or operational scaling.

Industry Context

Applied Therapeutics operates in the highly competitive and capital-intensive biotechnology sector, focused on developing novel therapeutics. The industry is characterized by long development cycles, high R&D costs, and significant regulatory hurdles. Success often depends on securing substantial funding and achieving positive clinical trial results.

Regulatory Implications

As a clinical-stage biotechnology company, Applied Therapeutics is subject to stringent regulatory oversight from bodies like the FDA. Delays in clinical trials, failure to meet regulatory standards, or changes in regulatory pathways can significantly impact development timelines and the potential for market approval.

What Investors Should Do

1. Monitor cash runway closely.
2. Evaluate progress on pipeline development.
3. Assess the likelihood of future financing rounds.
4. Analyze the sustainability of reduced operating expenses.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a net loss of $18.99 million, cash and cash equivalents of $11.95 million, and a total stockholders' deficit of $561 thousand, raising going concern doubts.
• 2024-12-31: End of Fiscal Year 2024 — Company had $79.4 million in cash and cash equivalents and positive stockholders' equity of $57.0 million.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any net profits. It represents the total losses that have not been offset by profits. (Indicates the company has historically operated at a loss, reaching $636.4 million by September 30, 2025.)

Stockholders' deficit

Occurs when a company's total liabilities exceed its total assets, resulting in negative equity for shareholders. (The company now has a stockholders' deficit of $561 thousand, a significant deterioration from positive equity, signaling severe financial distress.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months from the reporting date. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)

Warrant liabilities

Liabilities arising from financial instruments that give the holder the right, but not the obligation, to purchase a company's stock at a specified price within a certain timeframe. (The value of warrant liabilities decreased from $6.3 million to $4.1 million, but the change in fair value contributed negatively to net income in Q3 2025.)

Year-Over-Year Comparison

Compared to the prior year, Applied Therapeutics has seen a significant reduction in its net loss for both the quarter ($19.0M vs $68.6M) and year-to-date ($62.1M vs $149.6M), alongside a substantial increase in revenue to $1.0M in Q3 2025, primarily from license fees. However, this improvement is overshadowed by a drastic decrease in cash and cash equivalents from $79.4M to $11.9M and a shift to a stockholders' deficit of $561K from a positive $57.0M, intensifying concerns about its going concern status.

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 APLT The Nasdaq Capital Market In

Filing Documents

• aplt-20250930.htm (10-Q) — 2862KB
• aplt-ex31_1.htm (EX-31.1) — 19KB
• aplt-ex32_1.htm (EX-32.1) — 11KB
• 0001193125-25-278818.txt ( ) — 10237KB
• aplt-20250930.xsd (EX-101.SCH) — 1412KB
• aplt-20250930_htm.xml (XML) — 1703KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Condensed Balance Sheets 4 Condensed Statements of Operations 5 Condensed Statements of Stockholders' Equity/(Deficit) 6 Condensed Statements of Cash Flows 8 Notes to Condensed Financial Statements (Unaudited) 9 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 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 44 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 100 Item 3. Defaults Upon Senior Securities 100 Item 4. Mine Safety Disclosures 100 Item 5. Other Information 100 Item 6. Exhibits 101

Signatures

Signatures 102 We own various U.S. federal trademarks, including our company name and logo, that we use in connection with the operation of our business. This Quarterly Report on Form 10-Q includes our trademarks and trade names which are protected under applicable intellectual property laws and are our property. This Quarterly Report on Form 10-Q also contains trademarks, trade names and service marks of other companies, which are the property of their respective owners. Solely for convenience, trademarks, trade names and service marks referred to in this Quarterly Report on Form 10-Q may appear without the , or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent permitted under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. From time to time, we may use our website and our X (formerly known as Twitter) account at @Applied_Tx to distribute material information about us and for complying with our disclosure obligations under Regulation FD. Our financial and other material information is routinely posted to and accessible on the Investors section of our website, available at www.appliedtherapeutics.com. Investors are encouraged to review the Investors & Media section of our website because we may post material information on that site that is not otherwise disseminated by us. Information that is contained in and can be accessed through our website and our X posts are not incorporated into, and does not form a part of, this Quarterly Report on Form 10-Q. 1 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q may contain "forwa

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Applied Therapeutics, Inc. Condensed Balance Sheets (in thousands, except share and per share data) (Unaudited) As of As of September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 11,945 $ 79,398 Prepaid expenses and other current assets 19,709 4,248 Total current assets 31,654 83,646 Security deposits 252 253 Operating lease right-of-use asset 2,468 2,792 TOTAL ASSETS $ 34,374 $ 86,691 LIABILITIES AND STOCKHOLDERS'(DEFICT) EQUITY CURRENT LIABILITIES: Current portion of operating lease liabilities $ 467 $ 406 Accounts payable 4,800 4,433 Accrued expenses and other current liabilities 23,493 16,143 Warrant liabilities 4,142 6,314 Total current liabilities 32,902 27,296 NONCURRENT LIABILITIES: Noncurrent portion of operating lease liabilities 2,033 2,389 Total noncurrent liabilities 2,033 2,389 Total liabilities 34,935 29,685 STOCKHOLDERS' (DEFICIT) EQUITY: Common stock, $ 0.0001 par value; 250,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 144,300,674 shares issued and outstanding as of September 30, 2025 and 137,228,741 shares issued and outstanding as of December 31, 2024 35 35 Preferred stock, par value $ 0.0001 ; 10,000,000 shares authorized as of September 30, 2025 and December 31, 2024; 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Additional paid-in capital 635,759 631,181 Accumulated deficit ( 636,355 ) ( 574,210 ) Total stockholders' (deficit) equity ( 561 ) 57,006 TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY $ 34,374 $ 86,691 The Notes to Condensed Financial Statements are an integral part of these statements. 4 Table of Contents Applied Therapeutics, Inc. Condensed Statements of Operations (in thousands, except share and per share data) (Un

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