Lomond's Net Loss Widens to $21.5M Amid Soaring R&D Costs

TL;DR

**Lomond is burning cash at an alarming rate, making it a high-risk bet on a single drug candidate.**

AI Summary

Lomond Therapeutics Holdings, Inc. reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $21,494,706, up from $8,761,142 in the same period of 2024. This was primarily driven by a substantial rise in research and development expenses to $18,788,032 in 2025 from $7,000,000 in 2024, and general and administrative expenses increasing to $3,422,928 from $836,663. The company's cash and cash equivalents decreased sharply to $10,416,252 as of September 30, 2025, from $28,417,310 at December 31, 2024, largely due to $19,206,462 in cash used in operating activities and $17,288,596 used in investing activities, including significant short-term investment purchases. Despite a $20,000,000 raise from common stock issuance, the company's total stockholders' equity declined to $22,690,214 from $23,755,265. The company is focused on developing a next-generation inhibitor for acute myeloid leukemia (AML) and completed a merger with Legacy Lomond on November 1, 2024.

Why It Matters

Lomond Therapeutics' escalating net loss and significant cash burn are critical for investors, signaling increased financial risk and a potential need for further capital raises. The substantial investment in R&D, up to $18.8 million, indicates aggressive pursuit of its AML drug candidate, which could be a high-reward, high-risk strategy. For employees, continued funding is essential for job security and project continuity. Customers and the broader market will be impacted by the success or failure of its AML inhibitor, potentially bringing a new treatment option to a competitive therapeutic area, but only if the company can sustain its operations through clinical development.

Risk Assessment

Risk Level: high — The company reported a net loss of $21,494,706 for the nine months ended September 30, 2025, and cash and cash equivalents decreased by over $18 million to $10,416,252. This significant cash burn, coupled with substantial R&D expenses of $18,788,032, indicates a high operational risk and potential for future dilution or financing challenges.

Analyst Insight

Investors should exercise extreme caution and thoroughly evaluate Lomond's long-term financing strategy and clinical trial progress. Given the high cash burn and increasing losses, potential investors should wait for clearer signs of clinical success or a more stable financial position before considering an investment.

Financial Highlights

debt To Equity

0.45

revenue

N/A

operating Margin

N/A

total Assets

$33,006,743

total Debt

$10,316,529

net Income

-$21,494,706

eps

-$0.69

gross Margin

N/A

cash Position

$10,416,252

revenue Growth

N/A

Key Numbers

• $21.5M — Net Loss (Increased from $8.8M in prior year period)
• $18.8M — Research and Development Expenses (Increased from $7.0M in prior year period)
• $10.4M — Cash and Cash Equivalents (Decreased from $28.4M at December 31, 2024)
• $19.2M — Net Cash Used in Operating Activities (For the nine months ended September 30, 2025)
• $17.3M — Net Cash Used in Investing Activities (For the nine months ended September 30, 2025)
• $20.0M — Proceeds from Common Stock Issuance (For the nine months ended September 30, 2025)
• $22.7M — Total Stockholders' Equity (Decreased from $23.8M at December 31, 2024)
• 32,198,214 — Shares of Common Stock Outstanding (As of September 30, 2025)
• $0.69 — Net Loss Per Share (For the nine months ended September 30, 2025)
• $7.2M — Total Current Liabilities (Increased from $2.6M at December 31, 2024)

Key Players & Entities

• Lomond Therapeutics Holdings, Inc. (company) — registrant
• Legacy Lomond (company) — privately held Delaware corporation merged with Lomond
• Eil Therapeutics, Inc. (company) — related party in license agreements
• Bala Therapeutics, Inc. (company) — related party in license agreements
• SEC (regulator) — Securities and Exchange Commission
• FDA (regulator) — U.S. Food and Drug Administration
• Delaware (location) — state of incorporation
• November 1, 2024 (date) — date of merger with Legacy Lomond
• September 30, 2025 (date) — end of current reporting period
• December 31, 2024 (date) — end of previous fiscal year

FAQ

Risk Factors

• Deteriorating Financial Position and Burn Rate [high — financial]: The company's net loss significantly increased to $21.5 million for the nine months ended September 30, 2025, from $8.8 million in the prior year period. This is driven by a substantial rise in R&D expenses to $18.8 million and G&A expenses to $3.4 million. Cash and cash equivalents plummeted to $10.4 million from $28.4 million, with $19.2 million consumed by operations and $17.3 million by investing activities, indicating a high burn rate that could challenge future operations.
• Dependence on Future Financing [high — financial]: Despite a $20 million stock issuance, total stockholders' equity decreased to $22.7 million from $23.8 million. The company's substantial operating and investing cash outflows suggest a continued need for external financing to fund its development activities and sustain operations.
• Merger Integration and Operational Execution [medium — operational]: The company completed a merger with Legacy Lomond on November 1, 2024. The successful integration of operations, technology, and personnel post-merger is critical. Any delays or inefficiencies in this process could impact the development timeline and market entry of its AML inhibitor.
• Drug Development and Regulatory Approval Risks [high — regulatory]: As a biotechnology company focused on developing a novel AML inhibitor, Lomond Therapeutics faces inherent risks associated with drug development, including clinical trial failures, unexpected side effects, and the lengthy and complex regulatory approval process by agencies like the FDA. Failure to achieve regulatory approval would severely impact the company's prospects.
• Competitive Landscape in AML Treatment [medium — market]: The acute myeloid leukemia (AML) market is competitive, with existing treatments and ongoing research by other pharmaceutical companies. Lomond's success will depend on its ability to demonstrate superior efficacy, safety, or cost-effectiveness of its novel inhibitor compared to established and emerging therapies.
• Increase in Current Liabilities [medium — financial]: Total current liabilities have surged to $7.2 million from $2.6 million at the end of the previous fiscal year. This increase, primarily in accounts payable and accrued expenses, could strain short-term liquidity if not managed effectively alongside cash outflows.

Industry Context

The biotechnology sector, particularly in oncology, is characterized by high R&D costs, long development cycles, and significant regulatory hurdles. Companies like Lomond Therapeutics are focused on developing innovative therapies for unmet medical needs, such as AML. The competitive landscape includes large pharmaceutical companies and numerous smaller biotechs, making differentiation through clinical efficacy and safety paramount.

Regulatory Implications

Lomond Therapeutics operates under strict regulatory oversight from bodies like the FDA. The development and approval process for its AML inhibitor is subject to rigorous clinical trials and data submission requirements. Any delays, adverse findings in trials, or failure to meet regulatory standards could halt development and commercialization efforts.

What Investors Should Do

1. Monitor Burn Rate and Cash Runway
2. Evaluate R&D Progress and Clinical Milestones
3. Assess Merger Integration Success
4. Analyze Competitive Positioning

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period marked by significantly increased net loss ($21.5M vs $8.8M) and R&D expenses ($18.8M vs $7.0M), alongside a sharp decline in cash reserves.
• 2024-12-31: As of December 31, 2024 — Company held $28.4 million in cash and cash equivalents and $23.8 million in total stockholders' equity prior to the significant expenditures in 2025.
• 2024-11-01: Merger with Legacy Lomond completed — Marks a significant corporate event, integrating operations and potentially accelerating the development pipeline, but also introduces integration risks.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates the company has historically operated at a loss, with the deficit widening significantly to $60.3 million as of September 30, 2025.)

SAFE liability

A Simple Agreement for Future Equity, a financial instrument often used by startups to raise capital, where investors receive equity at a later funding round. (The statement of operations shows a change in fair value of SAFE liability in the prior year period, indicating past financing structures.)

Cash burn rate

The rate at which a company spends its available cash reserves, particularly relevant for companies not yet profitable. (The significant net cash used in operating ($19.2M) and investing ($17.3M) activities highlights a high cash burn rate that necessitates careful financial management and potential future funding.)

Additional paid-in capital

The amount investors have paid for stock above its par or stated value. (This account increased substantially to $87.2 million, primarily due to the $20 million common stock issuance, reflecting investor confidence despite the increasing losses.)

Year-Over-Year Comparison

Compared to the prior year period, Lomond Therapeutics Holdings, Inc. has experienced a significant increase in its net loss, rising from $8.8 million to $21.5 million for the nine months ended September 30, 2025. This deterioration is primarily driven by a substantial escalation in research and development expenses, which more than doubled to $18.8 million, and a sharp rise in general and administrative costs. While the company raised $20 million through stock issuance, its cash reserves have dwindled from $28.4 million at year-end 2024 to $10.4 million, reflecting a high cash burn rate. Total stockholders' equity also saw a slight decrease, indicating the net losses are outpacing capital injections.

Key Financial Figures

• $0.0001 — ange on Which Registered Common Stock, $0.0001 par value per share N/A N/A Indicate

Filing Documents

• ea0265011-10q_lomond.htm (10-Q) — 643KB
• ea026501101ex31-1_lomond.htm (EX-31.1) — 13KB
• ea026501101ex31-2_lomond.htm (EX-31.2) — 12KB
• ea026501101ex32-1_lomond.htm (EX-32.1) — 7KB
• 0001213900-25-110869.txt ( ) — 3847KB
• cik0001900520-20250930.xsd (EX-101.SCH) — 32KB
• cik0001900520-20250930_cal.xml (EX-101.CAL) — 26KB
• cik0001900520-20250930_def.xml (EX-101.DEF) — 185KB
• cik0001900520-20250930_lab.xml (EX-101.LAB) — 332KB
• cik0001900520-20250930_pre.xml (EX-101.PRE) — 194KB
• ea0265011-10q_lomond_htm.xml (XML) — 346KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1. Unaudited Condensed Consolidated Financial Statements 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6 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 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION 32 Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 3. Defaults Upon Senior Securities 32 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 33

Signatures

Signatures 34 i SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION CONTAINED IN THIS REPORT This Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 (the "Quarterly Report"), including the sections entitled " Risk Factors " and " Management's Discussion and Analysis of Financial Condition and Results of Operations ," includes forward-looking 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements relate to, among others, our plans, objectives and expectations for our business, operations and financial performance and condition, and can be identified by terminology such as "may," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "will," "could," "project," "target," "potential," "continue" and similar expressions that do not relate solely to historical matters. Forward-looking statements are based on management's belief and assumptions and on information currently available to management. Although we believe that the expectations reflected in forward-looking statements are reasonable, such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report, including the section entitled " Management's Discussion and Analysis of Financial Condition and Results of Operations ," to "we," "us," "our," the "Company," and "Lomond" refer to Lomond Therapeutics Holdings, Inc. and its consolidated subsidiaries, and references to "Legacy Lomond" refer to Lomond Therapeutics, Inc.

Forward-looking statements contained in this Quarterly

Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about: the ability of our preclinical studies and future clinical trials to demonstrate safety and efficacy of product candidates that we may develop, license or acquire and other positive results; any action we may take in the future with respect to our related party license agreements with Eil Therapeutics, Inc., or Eil, and Bala Therapeutics, Inc., or Bala, including our ability to meet repayment obligations under promissory notes issued in connection with such license agreements; the initiation, timing, progress, results and cost of our research and development programs and our current and future preclinical studies and planned clinical trials for our current product candidate, any licensed product candidate and any other product candidates we may develop, license or acquire, including statements regarding the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the studies or trials will become available, and our current or future research and development programs; our ability to raise substantial additional capital when needed to complete the development and, if approved, any commercialization of product candidates, the failure of which may force us to delay, reduce or eliminate our product development programs or other operations; the timing, scope and likelihood of regulatory filings and approvals, including timing of investigational new drug applications ("INDs"), and final U.S. Food and Drug Administration ("FDA") approval of our current product candidate, our licensed product candidates and any future product candidates we may develop, license or acquire; our ability to develop and advance our current product candidate, our licensed product candidates and development programs into, and successfully complete, clinical trials; our manufacturing, commercialization, and

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements LOMOND THERAPEUTICS HOLDINGS, INC. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 10,416,252 $ 28,417,310 Short-term investments 17,402,088 - Tax incentive and other receivables 2,123,133 - Prepaid expenses and other current assets 870,070 834,479 Total current assets 30,811,543 29,251,789 Tax incentive receivable, noncurrent 2,195,200 - Total assets $ 33,006,743 $ 29,251,789 Liabilities and Stockholders' equity Current liabilities: Accounts payable $ 1,507,813 $ 260,613 Accrued expenses and other current liabilities 5,712,402 2,293,643 Total current liabilities 7,220,215 2,554,256 Notes payable - related parties 3,096,314 2,942,268 Total liabilities 10,316,529 5,496,524 Commitments and contingencies (Note 4) Stockholders' equity Preferred stock: $ 0.0001 par value; 10,000,000 shares authorized - - Common stock: $ 0.0001 par value; 300,000,000 shares authorized, 32,198,214 and 27,198,214 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 3,220 2,720 Related party notes receivable ( 4,244,603 ) ( 4,065,096 ) Additional paid-in capital 87,239,427 66,630,765 Accumulated deficit ( 60,307,830 ) ( 38,813,124 ) Total stockholders' equity 22,690,214 23,755,265 Total liabilities and stockholders' equity $ 33,006,743 29,251,789 See accompanying notes to unaudited condensed consolidated financial statements. 1 LOMOND THERAPEUTICS HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Operating expenses: Research and development $ 7,008,984 $ 4,000,000 $ 18,788,032 $ 7,000,000 General and administrative 1,022,851 616,091 3,422,928 836,663 Total operating expenses 8,031,83

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View this 10-Q filing on SEC EDGAR