[10-Q] Moleculin Biotech, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

Moleculin Biotech, Inc. (MBRX) is a clinical-stage pharmaceutical company advancing its lead drug Annamycin in a global Phase 3 pivotal trial (MIRACLE). As of June 30, 2025, the company reported $7.6 million in cash, $21.6 million in total assets, $28.8 million in total liabilities and an accumulated deficit of $167.4 million. Net loss was $7.64 million for Q2 2025 and $14.08 million for the six months ended June 30, 2025. The company recorded a $20.55 million warrant liability and recognized a $10.4 million loss on issuance related to its June 2025 offering.

The MIRACLE Phase 3 program is active in 35+ sites across the US, EU and Eastern Europe with 8 subjects treated as of July 25, 2025 and planned interim unblinding by end of 2025. Regulators: EMA approved CTAs for nine EU countries; FDA provided positive pediatric study feedback. Nasdaq notified the company of deficiencies on equity and bid-price listing standards; a plan to regain compliance was submitted on July 3, 2025. Management disclosed substantial doubt about going concern and is seeking additional financing.

Positive

• Phase 3 MIRACLE progress: >35 sites targeted and 8 subjects treated as of July 25, 2025 with interim unblinding planned by end of 2025
• Regulatory milestones: EMA approved CTAs for nine EU countries and Georgia approved CTA for MIRACLE
• FDA pediatric feedback: positive iPSP response permitting a pediatric study and potential extrapolation from adult data
• MB-107 topline: median overall survival of 13.5 months (n=36) in STS lung metastases trial
• Financing proceeds: June 2025 offering generated $5.9M gross proceeds and potential additional $17.8M if warrants are exercised

Negative

• Liquidity and going concern: cash of $7.6M at June 30, 2025 stated as insufficient to fund planned operations for at least one year, creating substantial doubt about going concern
• Balance sheet strain: total liabilities $28.8M exceed assets $21.6M, resulting in stockholders' deficit of $7.2M at June 30, 2025
• Large warrant liability: fair value of liability-classified warrants of $20.55M introduces earnings volatility and equity dilution risk
• Nasdaq non-compliance: deficiency notices for minimum stockholders' equity and minimum $1.00 bid price; compliance plan submitted July 3, 2025 and bid-price compliance deadline Dec 24, 2025

Insights

Financial Analyst

TL;DR: Clinical progress is promising, but liquidity, negative equity and large warrant liabilities create near-term financing and listing risks.

Balance sheet dynamics show assets of $21.6M versus liabilities of $28.8M, producing a stockholders' deficit of $7.2M. Cash of $7.6M is explicitly stated as insufficient to fund planned operations for at least one year, prompting substantial doubt about going concern. The company recorded sizeable non-cash volatility from revaluing liability-classified warrants ($20.55M fair value) and a $10.4M loss on issuance, which materially impacts reported results and equity. Nasdaq deficiency notices add listing risk and potential dilution actions (reverse split or further financings). These factors imply a financially constrained near term unless financing is secured.

Clinical Development Specialist

TL;DR: Annamycin's regulatory and clinical progress is materially positive, with Phase 3 enrollment and regulatory acceptances across jurisdictions.

The company advanced the MIRACLE adaptive Phase 3 trial with >35 sites targeted and 8 subjects treated as of July 25, 2025, and expects an interim unblinding by end of 2025. EMA accepted CTAs in nine EU countries and Georgia approved a CTA, enabling multi-country enrollment. FDA provided constructive pediatric iPSP feedback allowing a pediatric study plan and possible extrapolation from adult efficacy. MB-107 final topline showed median overall survival of 13.5 months (n=36) for STS lung mets. From a development standpoint, these regulatory acceptances and early data are material positives for clinical de-risking.

0001659617 Moleculin Biotech, Inc. false --12-31 Q2 2025 0.001 0.001 5,000,000 5,000,000 0 0 0 0 0.001 0.001 100,000,000 100,000,000 30,207,494 30,207,494 3,378,895 3,378,895 1.00 3 1 411 331 34 1,519 916 5 5 5 5 10 10 1.64 4 10 9.15 4 0 0 0 0 0 12,000 59,000 117,000 false false false false 00016596172025-01-012025-06-30 xbrli:shares 00016596172025-08-05 thunderdome:item iso4217:USD 00016596172025-06-30 00016596172024-12-31 iso4217:USDxbrli:shares 00016596172025-04-012025-06-30 00016596172024-04-012024-06-30 00016596172024-01-012024-06-30 00016596172023-12-31 00016596172024-06-30 0001659617us-gaap:CommonStockMember2024-12-31 0001659617us-gaap:AdditionalPaidInCapitalMember2024-12-31 0001659617us-gaap:RetainedEarningsMember2024-12-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-31 0001659617mbrx:SeriesCWarrantsIn2025WarrantInducementOfferLetterMember2025-03-31 0001659617us-gaap:CommonStockMember2025-01-012025-03-31 0001659617us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-31 0001659617us-gaap:RetainedEarningsMember2025-01-012025-03-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-31 00016596172025-01-012025-03-31 0001659617us-gaap:CommonStockMember2025-03-31 0001659617us-gaap:AdditionalPaidInCapitalMember2025-03-31 0001659617us-gaap:RetainedEarningsMember2025-03-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-31 00016596172025-03-31 0001659617us-gaap:CommonStockMember2025-04-012025-06-30 0001659617us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-30 0001659617us-gaap:RetainedEarningsMember2025-04-012025-06-30 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-30 0001659617us-gaap:CommonStockMember2025-06-30 0001659617us-gaap:AdditionalPaidInCapitalMember2025-06-30 0001659617us-gaap:RetainedEarningsMember2025-06-30 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-30 0001659617us-gaap:CommonStockMember2023-12-31 0001659617us-gaap:AdditionalPaidInCapitalMember2023-12-31 0001659617us-gaap:RetainedEarningsMember2023-12-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-31 0001659617us-gaap:CommonStockMember2024-01-012024-03-31 0001659617us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-31 0001659617us-gaap:RetainedEarningsMember2024-01-012024-03-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-31 00016596172024-01-012024-03-31 0001659617us-gaap:CommonStockMember2024-03-31 0001659617us-gaap:AdditionalPaidInCapitalMember2024-03-31 0001659617us-gaap:RetainedEarningsMember2024-03-31 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-31 00016596172024-03-31 0001659617us-gaap:CommonStockMember2024-04-012024-06-30 0001659617us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-30 0001659617us-gaap:RetainedEarningsMember2024-04-012024-06-30 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-30 0001659617us-gaap:CommonStockMember2024-06-30 0001659617us-gaap:AdditionalPaidInCapitalMember2024-06-30 0001659617us-gaap:RetainedEarningsMember2024-06-30 0001659617us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-30 xbrli:pure 0001659617mbrx:AnimalLifeSciencesIncMember2019-12-31 0001659617mbrx:ReverseStockSplitMember2024-03-222024-03-22 0001659617us-gaap:GeneralAndAdministrativeExpenseMember2025-04-012025-06-30 0001659617us-gaap:GeneralAndAdministrativeExpenseMember2024-04-012024-06-30 0001659617us-gaap:GeneralAndAdministrativeExpenseMember2025-01-012025-06-30 0001659617us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-06-30 0001659617mbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-30 0001659617us-gaap:FairValueInputsLevel1Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-30 0001659617us-gaap:FairValueInputsLevel2Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-30 0001659617us-gaap:FairValueInputsLevel3Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-30 0001659617mbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-31 0001659617us-gaap:FairValueInputsLevel1Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-31 0001659617us-gaap:FairValueInputsLevel2Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-31 0001659617us-gaap:FairValueInputsLevel3Membermbrx:WarrantLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-31 0001659617mbrx:WarrantLiabilityLongTermMember2025-03-31 0001659617mbrx:WarrantLiabilityLongTermMember2025-04-012025-06-30 0001659617mbrx:WarrantLiabilityLongTermMember2025-06-30 0001659617mbrx:WarrantLiabilityLongTermMember2023-12-31 0001659617mbrx:WarrantLiabilityLongTermMember2024-01-012024-12-31 0001659617mbrx:WarrantLiabilityLongTermMember2024-12-31 0001659617us-gaap:RelatedPartyMember2025-06-30 0001659617us-gaap:RelatedPartyMember2024-12-31 0001659617mbrx:CommonStockIn2025AgreementMember2025-06-012025-06-30 0001659617mbrx:PrefundedWarrantsIn2025AgreementMember2025-06-012025-06-30 0001659617mbrx:SeriesEWarrantsIn2025AgreementMember2025-06-012025-06-30 0001659617mbrx:SecuritiesPurchaseAgreement2025Member2025-06-30 0001659617mbrx:PrefundedWarrantsIn2025AgreementMember2025-06-30 0001659617mbrx:CommonWarrantsIn2025AgreementMember2025-06-30 utr:Y 0001659617mbrx:SecuritiesPurchaseAgreement2025Member2025-06-012025-06-30 0001659617mbrx:SecuritiesPurchaseAgreement2025Member2025-06-012025-06-30 0001659617mbrx:SeriesEWarrantsIn2025AgreementMember2025-06-30 0001659617mbrx:CommonStockIn2025AgreementMember2025-02-012025-02-28 0001659617mbrx:PrefundedWarrantsIn2025AgreementMember2025-02-28 0001659617mbrx:SeriesDWarrantsIn2025AgreementMember2025-02-28 0001659617mbrx:SecuritiesPurchaseAgreement2025Member2025-02-28 0001659617mbrx:CommonWarrantsIn2025AgreementMember2025-02-28 0001659617mbrx:SecuritiesPurchaseAgreement2025Member2025-02-012025-02-28 0001659617mbrx:InducementWarrantsIn2025WarrantInducementOfferLetterMember2025-02-28 0001659617mbrx:SeriesCWarrantsIn2025WarrantInducementOfferLetterMember2025-02-28 0001659617mbrx:SeriesCWarrantsIn2025WarrantInducementOfferLetterMember2025-02-012025-02-28 0001659617mbrx:SecuritiesPurchaseAgreement2025AndWarrantInducementOfferLetterMember2025-02-012025-02-28 0001659617mbrx:CommonStockIn2024AgreementMember2024-08-012024-08-31 0001659617mbrx:PrefundedWarrantsIn2024AgreementMember2024-08-31 0001659617mbrx:SeriesAWarrantsIn2024AgreementMember2024-08-31 0001659617mbrx:SeriesBWarrantsIn2024AgreementMember2024-08-31 0001659617mbrx:SecuritiesPurchaseAgreement2024Member2024-08-31 0001659617mbrx:CommonWarrantsIssuedInConnectionWithThe2023SecuritiesPurchaseAgreementMember2024-10-31 0001659617mbrx:CommonWarrantsIssuedInConnectionWithThe2023SecuritiesPurchaseAgreementMember2023-12-26 0001659617mbrx:CommonWarrantsIssuedInConnectionWithThe2023SecuritiesPurchaseAgreementMember2024-01-012024-12-31 0001659617mbrx:SecuritiesPurchaseAgreement2024Member2024-08-012024-08-31 0001659617mbrx:WarrantLiabilityMember2024-08-31 0001659617mbrx:PrefundedWarrantsMember2025-03-31 0001659617us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MinimumMember2025-06-30 0001659617us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MaximumMember2025-06-30 0001659617us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MinimumMember2024-12-31 0001659617us-gaap:MeasurementInputRiskFreeInterestRateMembersrt:MaximumMember2024-12-31 0001659617us-gaap:MeasurementInputPriceVolatilityMembersrt:MinimumMember2025-06-30 0001659617us-gaap:MeasurementInputPriceVolatilityMembersrt:MaximumMember2025-06-30 0001659617us-gaap:MeasurementInputPriceVolatilityMembersrt:MinimumMember2024-12-31 0001659617us-gaap:MeasurementInputPriceVolatilityMembersrt:MaximumMember2024-12-31 0001659617us-gaap:MeasurementInputExpectedTermMembersrt:MinimumMember2025-06-30 0001659617us-gaap:MeasurementInputExpectedTermMembersrt:MaximumMember2025-06-30 0001659617us-gaap:MeasurementInputExpectedTermMembersrt:MinimumMember2024-12-31 0001659617us-gaap:MeasurementInputExpectedTermMembersrt:MaximumMember2024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMember2024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MinimumMember2024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MaximumMember2024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:WeightedAverageMember2024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMember2024-01-012024-12-31 0001659617mbrx:LiabilityClassifiedWarrantsMember2025-01-012025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MinimumMember2025-01-012025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MaximumMember2025-01-012025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:WeightedAverageMember2025-01-012025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMember2025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MinimumMember2025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:MaximumMember2025-06-30 0001659617mbrx:LiabilityClassifiedWarrantsMembersrt:WeightedAverageMember2025-06-30 0001659617mbrx:WarrantsMemberus-gaap:SubsequentEventMembermbrx:ConsultantMember2025-07-012025-07-31 0001659617mbrx:WarrantsMemberus-gaap:SubsequentEventMembermbrx:ConsultantMembermbrx:VestingImmediatelyMember2025-07-012025-07-31 0001659617mbrx:WarrantsMemberus-gaap:SubsequentEventMembermbrx:ConsultantMembermbrx:VestingUponSigningOfLetterOfIntentOrClosingOfA10MillionDealMember2025-07-012025-07-31 0001659617mbrx:WarrantsMemberus-gaap:SubsequentEventMembermbrx:ConsultantMembermbrx:VestingUponSigningOfLetterOfIntentOrClosingOfA10MillionDealMember2025-07-31 0001659617mbrx:EquityClassifiedWarrantsMembermbrx:Consultant1Member2025-01-31 0001659617mbrx:EquityClassifiedWarrantsMembermbrx:Consultant2Member2025-01-31 0001659617mbrx:EquityClassifiedWarrantsMembermbrx:VestingBasedOnPerformanceCriteriaMember2025-01-31 0001659617mbrx:EquityClassifiedWarrantsMembermbrx:VestingOver4YearTermMember2025-01-31 0001659617mbrx:EquityClassifiedWarrantsMembermbrx:VestingOver4YearTermMember2025-01-312025-01-31 0001659617mbrx:EquityClassifiedWarrantsMember2024-03-31 0001659617mbrx:EquityClassifiedWarrantsMember2023-06-302024-03-31 0001659617mbrx:EquityClassifiedWarrantsMember2025-06-30 0001659617mbrx:EquityClassifiedWarrantsMember2024-12-31 0001659617mbrx:PrefundedWarrantsMember2025-06-30 0001659617us-gaap:SubsequentEventMembermbrx:ConsultantMember2025-07-012025-07-31 0001659617us-gaap:SubsequentEventMembermbrx:The2025AtmAgreementMember2025-07-31 0001659617mbrx:The2024StockPlanMember2025-06-30 0001659617us-gaap:ResearchAndDevelopmentExpenseMember2025-04-012025-06-30 0001659617us-gaap:ResearchAndDevelopmentExpenseMember2024-04-012024-06-30 0001659617us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-06-30 0001659617us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-06-30 0001659617mbrx:EquityClassifiedWarrantsMember2025-04-012025-06-30 0001659617mbrx:EquityClassifiedWarrantsMember2024-04-012024-06-30 0001659617mbrx:EquityClassifiedWarrantsMember2025-01-012025-06-30 0001659617mbrx:EquityClassifiedWarrantsMember2024-01-012024-06-30 00016596172023-09-30 00016596172023-09-012023-09-30 0001659617mbrx:MDAndersonMember2025-04-012025-06-30 0001659617mbrx:MDAndersonMember2024-04-012024-06-30 0001659617mbrx:MDAndersonMember2025-01-012025-06-30 0001659617mbrx:MDAndersonMember2024-01-012024-06-30 0001659617mbrx:HoustonPharmaceuticalsIncMember2025-04-012025-06-30 0001659617mbrx:HoustonPharmaceuticalsIncMember2024-04-012024-06-30 0001659617mbrx:HoustonPharmaceuticalsIncMember2025-01-012025-06-30 0001659617mbrx:HoustonPharmaceuticalsIncMember2024-01-012024-06-30

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission File Number: 001-37758

MOLECULIN BIOTECH, INC.

(Exact name of registrant as specified in its charter)

Delaware

2834

47-4671997

(State or Other Jurisdiction of Incorporation or Organization)

(Primary Standard Industrial Classification Code Number)

(IRS Employer Identification Number)

5300 Memorial Drive, Suite 950
Houston, TX							77007
(Address of principal executive offices)							(Zip Code)

713-300-5160

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Registration S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer ☐						Smaller reporting company ☒
Non-accelerated filer ☒						Emerging growth company ☐
Accelerated filer ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.): Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol (s)			Name of each exchange on which registered
Common Stock, par value $0.001 per share			MBRX			The NASDAQ Stock Market LLC

The registrant had 30,286,168 shares of common stock outstanding at August 5, 2025.

Table of Contents

Moleculin Biotech, Inc.

Form 10-Q

Table of Contents

						Page
			PART I – FINANCIAL INFORMATION			3
Item 1.			Financial Statements (Unaudited)			3
			Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024			3
			Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months ended June 30, 2025 and 2024			4
			Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2025 and 2024			5
			Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Six Months Ended June 30, 2025 and 2024			6
			Notes to Condensed Consolidated Financial Statements			7
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			13
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			20
Item 4.			Controls and Procedures			20
			PART II – OTHER INFORMATION			20
Item 1.			Legal Proceedings			20
Item 1A.			Risk Factors			20
Item 2.			Unregistered sales of Equity Securities and Uses of Proceeds			21
Item 3.			Defaults Upon Senior Securities			21
Item 4.			Mine Safety Disclosures			21
Item 5.			Other Information			21
Item 6.			Exhibits			22
			Signatures			23

2

Table of Contents

PART 1 FINANCIAL INFORMATION

Item 1. Financial Statements

Moleculin Biotech, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except for share and per share data)

(Unaudited)

		June 30,				December 31,
		2025				2024
Assets
Current assets:
Cash and cash equivalents		$	7,557			$	4,278
Prepaid expenses and other current assets			1,519				916
Total current assets			9,076				5,194
Intangible assets			11,148				11,148
Other non-current assets			900				—
Operating lease right-of-use asset			370				424
Furniture and equipment, net			99				159
Total assets		$	21,593			$	16,925
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	3,721			$	2,030
Accrued expenses and other current liabilities			4,192				3,329
Total current liabilities			7,913				5,359
Operating lease liability - long-term, net of current portion			292				358
Warrant liability			20,553				5,229
Total liabilities			28,758				10,946
Commitments and contingencies (Note 7)
Stockholders' equity (deficit)
Preferred stock, $0.001 par value; 5,000,000 shares authorized, no shares issued or outstanding			—				—
Common stock, $0.001 par value; 100,000,000 shares authorized; 30,207,494 and 3,378,895 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			30				3
Additional paid-in capital			160,286				159,384
Accumulated other comprehensive loss			(38	)			(41	)
Accumulated deficit			(167,443	)			(153,367	)
Total stockholders’ equity (deficit)			(7,165	)			5,979
Total liabilities and stockholders’ equity		$	21,593			$	16,925

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents

Moleculin Biotech, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(Unaudited)

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenues		$	—			$	—			$	—			$	—
Operating expenses:
Research and development			3,600				4,090				7,036				8,342
General and administrative			2,091				2,064				4,568				4,457
Depreciation and amortization			29				31				59				63
Total operating expenses			5,720				6,185				11,663				12,862
Loss from operations			(5,720	)			(6,185	)			(11,663	)			(12,862	)
Other income (loss):
Gain from change in fair value of warrant liability			9,609				1,696				18,663				3,151
Transaction costs allocated to warrant liabilities			(1,207	)			—				(2,995	)			—
Loss on issuance of warrant liabilities			(10,352	)			—				(18,150	)			—
Other income, net			4				11				13				22
Interest income, net			26				159				56				400
Net loss		$	(7,640	)		$	(4,319	)		$	(14,076	)		$	(9,289	)
Net loss per common share - basic and diluted		$	(0.49	)		$	(1.70	)		$	(1.13	)		$	(3.71	)
Weighted average common shares outstanding, basic and diluted			15,526,401				2,543,244				12,452,165				2,504,709
Net Loss		$	(7,640	)		$	(4,319	)		$	(14,076	)		$	(9,289	)
Other comprehensive income (loss):
Foreign currency translation			—				8				3				(1	)
Comprehensive loss		$	(7,640	)		$	(4,311	)		$	(14,073	)		$	(9,290	)

See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

Moleculin Biotech, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

		Six Months Ended June 30,
		2025				2024
Cash flows from operating activities:
Net loss		$	(14,076	)		$	(9,289	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			59				63
Stock-based compensation			902				946
Change in fair value of warrant liability			(18,663	)			(3,151	)
Loss on issuance of warrant liabilities			18,150				—
Operating lease, net			116				108
Transaction costs allocated to warrant liabilities			2,995				—
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(1,503	)			(163	)
Accounts payable			1,526				335
Accrued expenses and other current liabilities			348				(1,515	)
Net cash used in operating activities			(10,146	)			(12,666	)
Cash flows from investing activities:
Purchase of fixed assets			—				(13	)
Net cash used in investing activities			—				(13	)
Cash flows from financing activities:
Proceeds from exercise of warrants			10				—
Payment of tax liability for vested restricted stock units			—				(25	)
Proceeds from sale of common stock, pre-funded and common warrants and warrant inducement, net of issuance and transaction costs			13,412				—
Net cash provided by (used in) financing activities			13,422				(25	)
Effect of exchange rate changes on cash and cash equivalents			3				(1	)
Net increase (decrease) in cash and cash equivalents			3,279				(12,705	)
Cash and cash equivalents, - beginning of period			4,278				23,550
Cash and cash equivalents, - end of period		$	7,557			$	10,845
Supplemental disclosures of cash flow information:
Non-cash investing and financing activities:
Transaction costs related to the sale of common stock, pre-funded and common warrants		$	584			$	—
Offering costs included in accounts payable and accrued liabilities		$	553			$	—

See accompanying notes to condensed consolidated financial statements.

5

Table of Contents

Moleculin Biotech, Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(in thousands, except for shares)

(Unaudited)

		Six Months Ended June 30, 2025
		Common Stock																Accumulated
		Shares				Par Value Amount				Additional Paid-In Capital				Accumulated Deficit				Other Comprehensive Income (Loss)				Total Stockholders' Equity (Deficit)
Balance, December 31, 2024			3,378,895			$	3			$	159,384			$	(153,367	)		$	(41	)		$	5,979
Warrant inducement and exercise of repriced common stock warrants at $1.00 per share			5,828,570				6				—				—				—				6
Warrants exercised			3,770,029				4				—				—				—				4
Issued for cash - sale of common stock, pre-funded and common warrants			1,150,000				1				—				—				—				1
Stock-based compensation			—				—				485				—				—				485
Consolidated net loss			—				—				—				(6,436	)			—				(6,436	)
Cumulative translation adjustment			—				—				—				—				3				3
Balance, March 31, 2025			14,127,494			$	14			$	159,869			$	(159,803	)		$	(38	)		$	42
Warrants exercised			6,107,974				6				—				—				—				6
Issued for cash - sale of common stock, pre-funded and common warrants			9,972,026				10				—				—				—				10
Stock-based compensation			—				—				417				—				—				417
Consolidated net loss			—				—				—				(7,640	)			—				(7,640	)
Balance, June 30, 2025			30,207,494			$	30			$	160,286			$	(167,443	)		$	(38	)		$	(7,165	)

		Six Months Ended June 30, 2024
		Common Stock																Accumulated
		Shares				Par Value Amount				Additional Paid-In Capital				Accumulated Deficit				Other Comprehensive Income (Loss)				Total Stockholders' Equity
Balance, December 31, 2023			2,227,516			$	33			$	157,653			$	(131,604	)		$	(9	)		$	26,073
Issuance of common stock to consultants			6,834				—				37				—				—				37
Reverse stock split			77,186				(31	)			31				—				—				-
Stock-based compensation			—				—				456				—				—				456
Consolidated net loss			—				—				—				(4,970	)			—				(4,970	)
Cumulative translation adjustment			—				—				—				—				(9	)			(9	)
Balance, March 31, 2024			2,311,536			$	2			$	158,177			$	(136,574	)		$	(18	)		$	21,587
Common stock issued upon vesting of restricted stock units (net of shares withheld for payment of tax liability)			19,743				—				(25	)			—				—				(25	)
Warrants exercised			229,506				1																1
Stock-based compensation			—				—				453				—				—				453
Consolidated net loss			—				—				—				(4,319	)			—				(4,319	)
Cumulative translation adjustment			—				—				—				—				8				8
Balance, June 30, 2024			2,560,785			$	3			$	158,605			$	(140,893	)		$	(10	)		$	17,705

See accompanying notes to condensed consolidated financial statements.

6

Table of Contents

Moleculin Biotech, Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Nature of Business 

The terms “MBI” or “the Company”, “we”, “our” and “us” are used herein to refer to Moleculin Biotech, Inc. MBI is a clinical-stage pharmaceutical company, organized as a Delaware corporation in July 2015. MBI is a late-stage pharmaceutical development company currently conducting a pivotal Phase 3 trial evaluating Annamycin, also known by its non-proprietary name "naxtarubicin", in combination with Cytarabine for the treatment of subjects with relapsed/refractory (R/R) acute myeloid leukemia (AML). Additionally, the Company has two portfolios of technologies for hard-to-treat cancers and viruses with clinical and preclinical research funded by investigators at academic institutions. 

Each of its three core technologies is based substantially on discoveries made at and licensed from the University of Texas MD Anderson Cancer Center (MD Anderson) in Houston, Texas, and features one or more drugs that have successfully completed a Phase 1 clinical trial. Three of its six drug candidates have shown human activity in clinical trials and are currently or have been in Phase 1B/2 or Phase 2 clinical trials. Since MBI’s inception, its drugs have completed, are currently in, or have been permitted to proceed in, fourteen clinical trials. Annamycin, in a unique multilamellar lipid formulation, is the Company’s lead molecule, and MBI has recently concluded treatment in one Phase 1B/2 clinical trial for treating AML and has begun treating subjects in its Phase 3 clinical trial for the treatment of R/R AML. Annamycin was in two recently closed or concluded Phase 1B/2 clinical trials for treating Soft Tissue Sarcoma metastasized to the lungs (STS lung metastases, STS lung mets, or Advanced STS), with one physician sponsored. The one concluded trial has published its clinical study report. Additionally, there is another phase 1B/2 clinical trial that is physician sponsored which is investigating using WP1066 in combination with radiation for the treatment of glioblastoma, a form of brain cancer.

The physician-sponsored trials utilize primarily external funds, such as grant funds, which are not presented in these financial statements. The Company does not have manufacturing facilities, and all manufacturing activities are contracted out to third parties. Additionally, the Company does not have a sales organization. The Company’s overall strategy is to seek potential out-licensing or outsourcing opportunities with development/commercialization strategic partners who are better suited for the marketing, sales and distribution of its drugs, if approved.

In 2019, the Company sublicensed its technologies to Animal Life Sciences, Inc. (ALI), to enable research and commercialization for non-human use and share development data. As part of this agreement, ALI issued to the Company a 10% equity interest in ALI.

On May 23, 2025, the Company received a letter from the Nasdaq Stock Market LLC (Nasdaq), which notified the Company that it does not presently comply with Nasdaq’s Listing Rule 5550(b)(1) (the “Equity Rule”), which requires that the Company maintain a minimum of $2.5 million in stockholders’ equity, and that the Company also does not meet the alternatives of market value of listed securities or net income from continuing operations set forth in the Equity Rule. The Letter did not have any immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market, and the Company had 45 calendar days to submit a plan to regain compliance. If the Company’s plan is accepted, the Staff can grant an extension of up to 180 calendar days from May 23, 2025 to evidence compliance. After review of the plan of compliance, the Staff is expected to provide written notification to the Company whether it accepts the plan, and if the Staff does not accept the plan, the Company would then be entitled to appeal the Staff’s determination to the Nasdaq Hearings Panel. There can be no assurance that, if the Company does appeal the determination to the Nasdaq Hearings Panel, that such appeal would be successful. On July 3, 2025, the Company submitted a plan to regain compliance and is awaiting Nasdaq response.

On  June 27, 2025, the Company received another deficiency letter from the Staff of Nasdaq notifying the Company that for the last 30 consecutive business days the bid price for the Company’s common stock had closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). The deficiency letter does not result in the immediate delisting of the Company’s common stock from the Nasdaq Capital Market. In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the “Compliance Period Rule”), the Company has been provided an initial period of 180 calendar days, or until December 24, 2025 (the “Compliance Date”), to regain compliance with the Bid Price Rule. If, at any time before the Compliance Date, the bid price for the Company’s common stock closes at $1.00 or more for a minimum of 10 consecutive business days as required under the Compliance Period Rule, the Staff is expected to provide written notification to the Company that it complies with the Bid Price Rule, unless the Staff exercises its discretion to extend this 10 day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H). If the Company is not in compliance with the Bid Price Rule by December 24, 2025, the Company may be afforded a second 180 calendar day period to regain compliance. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the minimum bid price deficiency, which may include, if necessary, implementing a reverse stock split. If the Company does not regain compliance with the Bid Price Rule by the Compliance Date and is not eligible for an additional compliance period at that time, the Staff will provide written notification to the Company that its common stock may be delisted. The Company would then be entitled to appeal the Staff’s determination to a NASDAQ Listing Qualifications Panel and request a hearing. There can be no assurance that, if the Company does appeal the delisting determination by the Staff to the NASDAQ Listing Qualifications Panel, that such appeal would be successful. The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider available options to regain compliance with the Bid Price Rule, which could include effecting a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Bid Price Rule.

2. Basis of presentation, principles of consolidation, and significant accounting policies and liquidity 

Reverse Stock Split - On March 22, 2024, the Company completed a reverse stock split of all the issued and outstanding share of the Company’s common stock at a ratio of 1 to 15. The accompanying consolidated financial statements and notes to the consolidated financial statements gives retroactive effect to the reverse stock split for all periods presented. Certain amounts previously reported include rounding up of fractional shares as a result of the reverse stock split.

Basis of Presentation – Condensed Consolidated Financial Information - The accompanying condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP) for financial information, and in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements furnished reflect all normal adjustments, which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company as of  December 31, 2024 and for the year then ended, including the notes thereto contained in the Form 10-K filed with the SEC on March 21, 2025.

7

Table of Contents

 

Principles of Consolidation - The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company views its operations and manages its business in one operating segment. All material long-lived assets of the Company reside in the United States. In accordance with FASB ASC Topic 280, Segment Reporting, the Company views its operations and manages its business as one segment. As a result, the financial information disclosed herein represents all of the material financial information related to its principal operating segment.

Segment Information - Management has determined that the Company operates in one reportable segment, which is the development and commercialization of drug products. The Company's chief operating decision maker (CODM) is its Chief Executive Officer and Chairman, who reviews financial information presented on a consolidated basis. The CODM primarily uses consolidated net loss, which is also reported on the Consolidated Statements of Operations and Comprehensive Loss as net loss, to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the assessment of segment performance and allocation of resources. The significant expense categories within net loss from operations that the CODM regularly reviews are research and development expenses and general and administrative expenses. The significant expense categories and subcategories are reported on the Consolidated Statements of Operations and Comprehensive Loss. Other expenses included in the Company’s net loss include change in fair value of warrant liabilities, other income (expense), interest income, net, and any additional non-operating expenses that are reported on the Consolidated Statements of Operations and Comprehensive Loss. 

Significant Accounting Policies - The Company's significant accounting policies are described in Note 2, Basis of Presentation, principles of consolidation and significant accounting policies, to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to the significant accounting policies during the six months ended June 30, 2025.

Use of Estimates - The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of financial statements. Estimates are used in the following areas, among others: fair value estimates on intangible assets, warrants, and stock-based compensation expense, as well as accrued expenses and taxes. 

Going Concern and Liquidity - These condensed consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. As of  June 30, 2025, the Company had an accumulated deficit of $167.4 million since inception and had not yet generated any revenues from operations. Additionally, management anticipates that its cash on hand of $7.6 million as of June 30, 2025 is not sufficient to fund its planned operations for a period of at least one year from when these consolidated financial statements are issued. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company intends to seek additional funding through one or more of the following: a combination of equity offerings, debt financings, government or other third-party funding, commercialization, marketing and distribution arrangements, other collaborations, strategic alliances and licensing arrangements and delay planned cash outlays or a combination thereof. There can be no assurance that such events or a combination thereof can be achieved.

 In March 2022, the Company received a subpoena from the SEC requesting information and documents, including materials related to certain individuals (none of which are the Company's officers or directors) and entities, and materials related to the development of and statements regarding the Company's drug candidate for the treatment of COVID-19. The Company has received, and expects to continue to receive, periodic further requests from the SEC staff with respect to this matter. The Company is not aware of the specific nature of the underlying investigation by the SEC, and to the extent that this investigation relates to prior public disclosures that it has made, the Company believes in the accuracy and adequacy of such prior disclosures. The correspondence from the SEC transmitting the subpoena to the Company states that the SEC is trying to determine whether there have been any violations of federal securities laws, but that its investigation does not mean that the SEC has concluded that anyone has violated the law or that the SEC has a negative opinion of any person, entity, or security. The Company cannot predict when this matter will be resolved or what, if any, action the SEC may take following the conclusion of the investigation. The Company expensed approximately $0.01 million and $0.1 million in related general and administrative fees and expenses for the three months ended  June 30, 2025 and 2024, respectively, and $0.03 and $0.1 million for the six months ended June 30, 2025 and 2024, respectively. The Company has not hit the retention limits, so no reimbursement is expected. Accordingly, the Company has not recorded any provision for insurance reimbursement as of June 30, 2025.

Cash and Cash Equivalents - Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company maintains cash accounts principally at one financial institution in the U.S., which at times, may exceed the Federal Deposit Insurance Corporation’s limit. The Company has not experienced any losses from cash balances in excess of the insurance limit. The Company’s management does not believe the Company is exposed to significant credit risk at this time due to the financial condition of the financial institution where its cash is held. 

Intangible Assets – Intangible assets with finite lives are amortized using the straight-line method over their estimated period of benefit. Acquired intangible assets identified as in-process research and development (IPR&D) assets, are considered indefinite lived until the completion or abandonment of the associated research and development efforts. If the associated research and development effort is abandoned, the related IPR&D assets will be written-off and the Company will record a noncash impairment loss on its statements of operations. For those compounds that reach commercialization, the IPR&D assets will be amortized over their estimated useful lives. Intangible assets are tested for impairment on an annual basis, which was completed as of September 30, 2024, and between annual tests if indicators of potential impairment exist, using a fair-value-based approach. The Company evaluates the recoverability of intangible assets periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. No impairments of intangible assets have been identified during any of the periods presented.

8

Table of Contents

 

Prepaid Expenses and Other Current Assets - Prepaid expenses and other current assets consist of the following (in thousands):

		June 30, 2025				December 31, 2024
Prepaid insurance		$	1,069			$	554
Vendor prepayments and deposits			411				331
Prepaid sponsored research			34				11
Related party receivables			4				4
Non-trade receivables			1				16
Total prepaid expenses and other current assets		$	1,519			$	916

Other Non-Current Assets - The Company provided a cash deposit on the MB-108 trial that is expected to be held as a prepayment until the end of the study in 2029.

Fair Value of Financial Instruments - The Company's financial instruments consist primarily of non-trade receivables, accounts payable, accrued expenses and its warrant liability. The carrying amount of non-trade receivables, accounts payable, and accrued expenses approximates their fair value because of the short-term maturity of such.

The Company has categorized its assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3).

Assets and liabilities recorded in the condensed consolidated balance sheets at fair value are categorized based on a hierarchy of inputs as follows:

Level 1 – Unadjusted quoted prices in active markets of identical assets or liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 – Unobservable inputs for the asset or liability.

The Company’s financial assets and liabilities recorded at fair value on a recurring basis include the fair value of warrant liability discussed in Note 4.

The following table provides the financial liabilities reported at fair value and measured on a recurring basis at June 30, 2025 and December 31, 2024 (table in thousands): 

Description		Fair Value				Level 1				Level 2				Level 3
Fair value of warrant liability as of June 30, 2025:		$	20,553			$	—			$	—			$	20,553
Fair value of warrant liability as of December 31, 2024:		$	5,229			$	—			$	—			$	5,229

The table below of Level 3 liabilities (table in thousands) begins with the valuation as of the beginning of the second quarter and then is adjusted for changes in fair value that occurred during the second quarter. The ending balance of the Level 3 financial instrument presented above represents the Company's best estimates and may not be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. 

Three Months Ended June 30, 2025		Warrant Liability Long-Term
Balance, March 31, 2025		$	13,749
Warrants issued			16,413
Change in fair value - net			(9,609	)
Balance, June 30, 2025		$	20,553

The table below of Level 3 liabilities (table in thousands) begins with the valuation as of  December 31, 2024 and then is adjusted for changes in fair value that occurred during the six months ended June 30, 2025. The ending balance of the Level 3 financial instrument presented above represents the Company's best estimates and  may not be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.

Six Months Ended June 30, 2025		Warrant Liability Long-Term
Balance, December 31, 2024		$	5,229
Warrants issued			35,444
Warrants exercised			(1,457	)
Change in fair value - net			(18,663	)
Balance, June 30, 2025		$	20,553

Loss Per Common Share - Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during the period. For purposes of this calculation, options to purchase common stock, restricted stock units subject to vesting and warrants to purchase common stock are considered to be common stock equivalents. Diluted net loss per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. For the three months ended June 30, 2025 and 2024, approximately 24.5 million and 1.6 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their anti-dilutive effect. For the six months ended June 30, 2025 and 2024, approximately 19.3 million and 1.6 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their anti-dilutive effect.

9

Table of Contents

 

Subsequent Events - The Company’s management reviewed all material events through the date of these unaudited condensed consolidated financial statements. 

Recent Accounting Pronouncements - In November 2024 and January 2025, FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements and related disclosures, but expects additional disclosures upon adoption.

In December 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance is effective for the annual periods beginning after the year ended December 31, 2024. There was no material impact upon adoption of ASU 2023-09 on the Company's interim disclosures.

There are no other effective pronouncements, or pronouncements issued but not yet effective, if adopted, that would have a material effect on the accompanying financial statements.

3. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following components (in thousands):

		June 30, 2025				December 31, 2024
Payroll and bonuses		$	1,676			$	1,817
Research and development			1,348				858
Legal, regulatory, professional and other			822				404
Due to related party			218				130
Operating lease liability - current			128				120
Total accrued expenses and other current liabilities		$	4,192			$	3,329

Additionally, accounts payable includes $20,000 as of June 30, 2025 and December 31, 2024, respectively, for related party payables.

4. Warrants and Equity

Warrant and Stock Issuances

In June 2025, the Company closed a public offering of (i) 9,972,026 shares of the Company’s common stock; (ii) pre-funded warrants to purchase up to an aggregate of 6,107,974 shares of common stock; and (iii) Series E Warrants to initially purchase up to an aggregate of 48,240,000 shares of common stock. The combined purchase price for the securities was $0.37 per share of common stock (or pre-funded warrant in lieu thereof). Each pre-funded warrant was exercisable for one share of common stock at an exercise price of $0.001 per share. All of the pre-funded warrants were exercised during the three months ended June 30, 2025. Each common warrant has an initial exercise price of $0.37 per share and will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares upon exercise of the common warrants (warrant stockholder approval). The Company agreed to seek warrant stockholder approval no later than 60 days after the consummation of the offering, and the vote is currently set for the Company's Annual Meeting on August 18, 2025. The Company agreed to seek approval for an amendment to its certificate of incorporation to increase its authorized shares of common stock such that it can issue all shares of common stock required under the common warrants upon any future adjustments to the exercise price of the common warrants (authorized share approval). If the Company does not obtain warrant stockholder approval and/or the authorized share approval at the first stockholder meeting for such purpose after the offering, the Company agreed to call a stockholder meeting every 60 days thereafter until the earlier of the date it obtains the warrant stockholder approval and the authorized share approval or the date the common warrants are no longer outstanding. The common warrants provide that if, while the common warrants are outstanding, the Company sells any common stock and/or common stock equivalents other than in connection with certain exempt issuances (as defined in the warrant agreement), at a purchase price per share less than the exercise price of the common warrants in effect immediately prior to such sale, then immediately after such sale the exercise price of the common warrants then in effect will be reduced to an amount equal to such new issuance price, and, following the authorized share increase date, the number of shares issuable upon exercise of the common warrants will be proportionately adjusted such that the aggregate price will remain unchanged, subject to the floor price of $0.12 (Down Round Feature).. In addition, the common warrants provide that if at any time on or after the date of issuance there occurs any share split, share dividend, share combination recapitalization or other similar transaction involving the common stock and the lowest daily volume weighted average price during the period commencing five consecutive trading days immediately preceding and the five consecutive trading days commencing on the date of such event is less than the exercise price of the common warrants then in effect, then the exercise price of the common warrants will be reduced to the lowest daily volume weighted average price during such period and, following the Authorized Share Increase Date, the number of shares issuable upon exercise will be proportionately adjusted such that the aggregate price will remain unchanged, subject to the floor price of $0.12. The common warrants will expire five years from the date of the warrant stockholder approval. The Company received gross proceeds of $5.9 million and may receive up to an additional approximately $17.8 million in gross proceeds if the warrants are fully exercised for cash. Proceeds of offerings are allocated between common shares and warrants first by allocating to the warrants classified as a liability based on their fair value and then allocating the residual to the equity instruments, which would include pre-funded warrants. The fair value of the Series E warrants was $16.3 million on the issuance date. Because the fair value of the liability classified warrants issued in the June 2025 offering exceeded the total proceeds, no consideration was allocated to the common shares or pre-funded warrants. The full proceeds from the June 2025 offering were recorded as warrant liabilities, and the Company recognized a $10.4 million loss on the issuance of the Series E Warrants. The Company also incurred $1.2 million in transaction costs related to the June 2025 public offering. 

10

Table of Contents

 

In February 2025, the Company entered into a securities purchase agreement with an institutional investor for the sale by the Company of 1,150,000 shares of common stock, and 2,121,029 pre-funded warrants to purchase shares of common stock, and series D warrants to purchase up to 6,543,058 shares of common stock. The combined purchase price for the securities was $1.07 per share of common stock (or pre-funded warrant in lieu thereof). Each pre-funded warrant was exercisable for one share of common stock at an exercise price of $0.001 per share. All of the pre-funded warrants were exercised during the three months ended March 31, 2025. Each common warrant will be exercisable upon the receipt of shareholder approval (which is anticipated to occur in the near term), will have an exercise price of $1.07 per share, and expire five years from the initial exercise date. The Company received gross proceeds of $3.5 million.

In February 2025, the Company entered into a warrant exercise inducement offer letter with a holder of certain existing warrants to receive new warrants to purchase up to a number of shares of common stock equal to 200% of the number of warrant shares issued pursuant to the exercise of such existing warrants to purchase up to 5,828,570 shares of common stock pursuant to which the holder agreed to exercise for cash their existing warrants at a reduced exercise price of $1.00 in exchange for the Company's agreement to issue the inducement warrants to purchase up to 11,657,140 shares (Series C warrants) of the Company's common stock. Each inducement warrant has an exercise price of $0.75 and is exercisable as of the date of issuance and may be exercised for a period of five years. The Company received gross proceeds of $5.8 million. Total gross proceeds received in the two February 2025 transactions were $9.3 million.

In August 2024, the Company entered into a securities purchase agreement with an institutional investor for the sale by the Company of 283,000 shares of common stock, and 2,183,368 pre-funded warrants to purchase shares of common stock, series A warrants to purchase up to 2,466,368 shares of common stock, series B warrants to purchase up to 2,466,368 shares of common stock, and placement agent warrants. The combined purchase price for the securities was $2.23 per share of common stock (or pre-funded warrant in lieu thereof). In August 2024, the Company entered into a warrant amendment agreement, pursuant to which the Company agreed that effective upon closing of the offering, and subject to shareholder approval, to amend 895,834 existing warrants originally issued on  December 26, 2023 at an exercise price of $9.60 per share and a termination date of  February 14, 2029, so that the amended warrants would have a reduced exercise price of $2.23 per share and would expire five years from the date of shareholder approval. The Company calculated the valuation of the warrant amendment immediately prior to the offering, as well as the valuation of the warrant amendment with the repriced terms, and a 91% probability of obtaining shareholder approval. The loss on modification of the warrants of $0.4 million was recorded as a loss on issuance of warrant liabilities during the year ended December 31, 2024. In  October 2024, the Company’s shareholders approved the issuance of both the  August 2024 warrants, as well as the warrant amendment. The Company received gross proceeds of $5.5 million, before deducting the placement agent's fees and other offering expenses payable by the Company. Proceeds of offerings are allocated between common shares and warrants first by allocating to the warrants classified as a liability based on their fair value and then allocating the residual to the equity instruments, which would include pre-funded warrants. As the fair value of the liability classified warrants in the  August 2024 offering exceeded the total proceeds, no consideration was allocated to the Common Shares or Pre-Funded Warrants. The full proceeds of the  August 2024 offering were recorded to warrant liability with an initial liability of $6.1 million, In February 2025, the warrants associated with the August 2024 agreement were exercised in full as part of the warrant inducement, as discussed above.

Liability Classified Warrants

With the exception of the Series E Warrants, the Company uses the Black-Scholes option pricing model (BSM) to determine the fair value of its warrants both at issuance and at each reporting date. For the Series E Warrants, the Company applies a Monte Carlo simulation model to appropriately reflect the impact of the Down Round Feature. The risk-free interest rate assumption is based upon observed interest rates on zero coupon US Treasury bonds linearly interpolated to obtain a maturity period commensurate with the term of the warrants. Estimated volatility is a measure of the amount by which the Company's stock price is expected to fluctuate each year during the expected life of the warrants. 

The assumptions used in determining the fair value of the Company's outstanding liability classified warrants are as follows:

		June 30, 2025			December 31, 2024
Risk-free interest rate		3.6% to 4.2%			4.2% to 4.4%
Volatility		107.0% to 251.0%			76.9% to 99.4%%
Expected life (years)		0.1 to 5.1			0.6 to 4.8
Dividend yield		—%			—%

A summary of the Company's liability classified warrant activity during the six months ended June 30, 2025 and related information follows: 

		Number of Shares				Range of Warrant Exercise								Weighted Average				Weighted Average Remaining Contractual
		Under Warrant				Price per Share								Exercise Price				Life (Years)
Balance at January 1, 2025			6,063,040			$	2.23			$	94.50			$	3.32				3.5
Granted			67,531,089			$	0.37			$	1.34			$	0.51				—
Exercised			(5,828,570	)		$	2.23			$	2.23			$	2.23				—
Balance at June 30, 2025			67,765,559			$	0.37			$	94.50			$	0.61				5.0
Exercisable at June 30, 2025			12,346,590			$	0.75			$	94.50			$	1.33				4.8

For a summary of the changes in fair value associated with the Company's warrant liability for the six months ended June 30, 2025, see Note 2 - Basis of presentation, principles of consolidation and significant accounting policies - Fair Value of Financial Instruments.

Equity Classified Warrants

In July 2025, the Company issued 200,000 warrants to a consultant, of which 100,000 vested immediately and 100,000 will vest upon the signing of a letter of intent or the closing of a licensing deal with a value of $10 million or more.

In January 2025, the Company granted equity-classified warrants to two consultants to purchase up to 50,000 shares each of Company common stock with a ten-year term and an exercise price of $1.64. The first 50,000 of these warrants vest based on performance of certain services, and the other 50,000 vest annually over four years.

In March 2024, the Company granted equity-classified warrants to purchase up to 3,334 shares of Company common stock with a ten-year term and an exercise price of $9.15. The warrants vest annually over four years while services are being performed.

11

Table of Contents

 

At June 30, 2025, the Company had 197,993 equity classified warrants outstanding and 54,501 warrants were exercisable. At  December 31, 2024, the Company had 1,746,993 equity classified warrants outstanding and 1,697,744 warrants were exercisable.

Other Components of Equity and Share Issuances

During the six months ended June 30, 2025, all remaining pre-funded warrants were exercised, leaving no remaining pre-funded warrants outstanding as of June 30, 2025. In July 2025, the Company issued 58,785 shares of common stock to a consultant in exchange for services provided. 

At Market Issuance Sales Agreement (ATM)

In July 2025, the Company entered into a certain At Market Issuance Offering Agreement (2025 ATM Agreement) with Roth Capital Partners, LLC. (Roth). Pursuant to the terms of the 2025 ATM Agreement, the Company may offer and sell shares of our common stock having an aggregate offering price of up to $6.5 million from time to time through or to Roth acting as our sales agent or principal. Roth may also sell shares of our common stock in negotiated transactions at market prices prevailing at the time of sale at prices related to such prevailing market prices. The Company agreed to pay a commission to Roth of 3.0% of the gross proceeds of any shares of common stock sold under the 2025 ATM Agreement, in addition to the reimbursement of certain expenses.

5. Stock Based Compensation

As of June 30, 2025, there were 119,116 shares remaining to be issued under the Company's equity compensation plans. 

Stock-based compensation expense for the three and six months ended June 30, 2025 and 2024, respectively, is as follows (table in thousands): 

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
General and administrative		$	300			$	340			$	665			$	721
Research and development			117				113				237				225
Total stock-based compensation expense		$	417			$	453			$	902			$	946

The Company recorded stock compensation expense for the equity classified warrants relating to non-employee consulting agreements of $29,000 and $35,000 for the three months ended  June 30, 2025 and 2024, respectively, and $58,000 and $68,000 for the six months ended June 30, 2025 and 2024, respectively, which are included in the table above. At  June 30, 2025, there was $319,000 of unrecognized stock compensation expense related to the Company's equity classified warrants.

6. Income Taxes

Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

The Company does not expect to pay any significant federal, state, or foreign income taxes in 2025 as a result of the losses recorded during the three and six months ended June 30, 2025 and the additional losses expected for the remainder of 2025 and cumulative net operating loss carryforwards. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. As a result, as of June 30, 2025 and  December 31, 2024 the Company maintained a full valuation allowance for all deferred tax assets.

The Company recorded no income tax provision for the three and six months ended June 30, 2025 and 2024, respectively. The effective tax rate for the six months ended June 30, 2025 and 2024 is nil. The income tax rates vary from the federal and state statutory rates primarily due to the change in fair value of the stock warrants, Internal Revenue Code Section 162(m) limitations and ISO activity, as well as the valuation allowances on the Company’s deferred tax assets. The Company estimates its annual effective tax rate at the end of each quarterly period. Jurisdictions with a projected loss for the year where no tax benefit can be recognized due to the valuation allowance could result in a higher or lower effective tax rate during a particular quarter depending on the mix and timing of actual earnings versus annual projections. 

On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. The Company continues to evaluate the impact the new legislation will have on the consolidated financial statements, but does not anticipate a significant impact due to the Company’s valuation allowance position.

7. Commitments and Contingencies 

In addition to the commitments and contingencies described elsewhere in these notes, see below for a discussion of the Company's commitments and contingencies as of June 30, 2025.

Lease Obligations Payable

The following summarizes quantitative information about the Company's operating leases for the three and six months ended June 30, 2025 and 2024, respectively (table in thousands):

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Lease cost:
Operating lease cost		$	38			$	38			$	75			$	75
Variable lease cost			7				7				14				10
Total		$	45			$	45			$	89			$	85

12

Table of Contents

 

In September 2023, the Company executed an amendment to extend the corporate office lease until August 31, 2029, with an option to renew. The Company is required to remit base monthly rent of approximately $4,700 which will increase at an average approximate rate of 2% each year. The Company is also required to pay additional rent in the form of its pro-rata share of certain specified operating expenses of the building. 

In June 2022, the Company extended the lab lease until September 30, 2027, with no further right or option to renew. The Company recorded approximately $12,000 in sublease income from a related party for the three months ended June 30, 2025 and 2024 and $25,000 and $24,000 for the six months ended June 30, 2025 and 2024, respectively. Sublease income is recorded as other income, net on the Company's condensed consolidated statement of operations and comprehensive loss. Operating cash flows from operating leases was $39,000 and $38,000 for the three months ended  June 30, 2025 and 2024, respectively, and $79,000 and $68,000 for the six months ended June 30, 2025 and 2024, respectively.

In March 2025, the Company terminated the WP1122 license with MD Anderson. The upcoming annual maintenance fee on this license was previously expensed and accrued, as the annual fee is due annually in April. 

Licenses 

MD Anderson - Total expenses related to the Company's license agreements with MD Anderson were $33,000 and $63,000 for the three months ended June 30, 2025 and 2024, respectively, and $83,000 and $117,000 for the six months ended June 30, 2025 and 2024, respectively.

HPI - The Company has two agreements with a related party, Houston Pharmaceuticals, Inc. (HPI) with total expenses of $59,000 for each of the three months ended June 30, 2025 and 2024, respectively, and $117,000 for each of the six months ended June 30, 2025 and 2024, respectively.

Sponsored Research Agreements - The expenses recognized under the agreements were $51,000 and $377,000 for the three months ended June 30, 2025 and 2024, respectively, and $313,000 and $533,000 for the six months ended June 30, 2025 and 2024, respectively. The Company is currently negotiating further sponsored research agreements with various parties.

8. Subsequent Events 

Other than the subsequent events discussed elsewhere in these notes, no other subsequent events were noted as occurring after June 30, 2025.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Form 10-Q, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains certain forward-looking statements. Historical results may not indicate future performance. Our forward-looking statements reflect our current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements.

Forward-looking statements include, but are not limited to, statements about: 

	•	Our ability to continue our relationship with the University of Texas MD Anderson Cancer Center (MD Anderson), including, but not limited to, our ability to maintain current licenses and license future intellectual property resulting from our sponsored research agreements with MD Anderson;
	•	The success or the lack thereof, including the ability to recruit subjects and onboard new clinical trial sites on a timely basis, for a variety of reasons, of our clinical trials through all phases of clinical development;
	•	Our ability to satisfy any requirements imposed by the United States (US) Food & Drug Administration (FDA) (or its foreign equivalents) as a condition of our clinical trials proceeding or beginning as planned;
	•	World-wide events including geopolitical conflicts, public health emergencies, and global supply chain disruptions that may affect our clinical trials, clinical drug candidate supplies, preclinical activities and our ability to raise future financing;

• Our ability to obtain additional funding to commence or continue our clinical trials, fund operations and develop our product candidates;

• The need to obtain and retain regulatory approval of our drug candidates, both in the United States and in Europe, and in countries deemed necessary for future trials;

• Our ability to complete our clinical trials in a timely fashion in line with our stated milestones and within our expected budget and resources;

	•	Our ability to maintain compliance with the continued listing requirements of the Nasdaq Capital Market;
	•	Our ability to source our drug products at reasonable prices;
	•	Compliance with obligations under intellectual property licenses with third parties;

• Any delays in regulatory review and approval of drug candidates in clinical development;

	•	Potential efficacy of our drug candidates;
	•	Our ability to commercialize our drug candidates;

• Market acceptance of our drug candidates;

• Competition from existing therapies or new therapies that may emerge;

• Potential product liability claims;

• Our dependency on third-party manufacturers to successfully, and timely, supply or manufacture our drug candidates for our preclinical work and our clinical trials;

• Our ability to establish or maintain collaborations, licensing or other arrangements;

• Our ability and third parties’ abilities to protect intellectual property rights;

• Our ability to adequately support future growth; and

• Our ability to attract and retain key personnel to manage our business effectively.

13

Table of Contents

We undertake no obligation to publicly update or revise any forward-looking statements, including any changes that might result from any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Furthermore, we cannot guarantee future results, events, levels of activity, performance, or achievements.

Our Business

We are a late-stage pharmaceutical development company currently conducting a pivotal Phase 3 trial evaluating Annamycin (also known by its non-proprietary name "naxtarubicin") in combination with Cytarabine for the treatment of subjects with relapsed/refractory (R/R) acute myeloid leukemia (AML). This Phase 3 trial should have an interim unblinding of data by the end of 2025, less than a year from its commencement, and an additional unblinding in the first half of 2026. We believe such early visibility for a pivotal registration-enabling trial is highly unique in that stakeholders will receive preliminary safety and efficacy data in the “MIRACLE” trial (derived from Moleculin R/R AML AnnAraC Clinical Evaluation) within one year of dosing the first subject. Additionally, we have two portfolios of technologies for hard-to-treat cancers and viruses with clinical and preclinical research funded by investigators at academic institutions. 

Each of our three core technologies is based substantially on discoveries made at and licensed from MD Anderson in Houston, Texas, and features one or more drugs that have successfully completed a Phase 1 clinical trial. Three of our six drug candidates have shown human activity in clinical trials and are currently or have been in Phase 1B/2 or Phase 2 clinical trials. One Phase 2B/3 trial is currently underway. Since our inception, our drugs have completed, are currently in, or have been permitted to proceed in, fourteen clinical trials. Annamycin is in a class of drugs referred to as Anthracyclines, which are inhibitors of topoisomerase II, enabling them to cause DNA damage in rapidly replicating tumor cells. Annamycin, in a unique multilamellar lipid formulation, is our lead molecule and we have recently concluded treating subjects in one Phase 1B/2 clinical trial for treating Acute Myeloid Leukemia (AML) and are embarking on a Phase 3 clinical trial for the treatment of AML, which we believe will be pivotal. Annamycin has also been in two Phase 1B/2 clinical trials for treating Soft Tissue Sarcoma metastasized to the lungs (STS lung metastases, STS lung mets, or Advanced STS). Our Phase 1B/2 STS lung mets trial MB-107 is completed, and a clinical study report has been issued. The other trial is an investigator initiated Advanced STS trial which is closed to recruitment.

One of our core management beliefs is that anthracyclines represent one of the most important treatments for AML and Advanced STS, and we believe Annamycin may, for the first time ever, allow a majority of these patients to benefit from this treatment. We believe that such a benefit could be disruptive to the competitive landscape for these markets. This belief, coupled with our limited resources, leads us to currently focus mainly on the development of Annamycin. We intend to advance our other drug candidates via investigator led studies – both clinically and preclinically.

Focus and Core Technologies

Our core technologies consist of the following programs:

a) Annamycin or L-Annamycin is a “next generation” anthracycline (one of the most widely used classes of chemotherapy), designed to be different than currently approved anthracyclines, which are limited in utility because of cardiotoxicity risks and their susceptibility to multidrug resistance mechanisms. Annamycin was designed to avoid multidrug resistance and to be non-cardiotoxic and, with intensive cardiac monitoring, has shown no cardiotoxicity in subjects treated in our five Annamycin clinical trials to date. Furthermore, we have demonstrated safe dosing significantly beyond the lifetime dose limitations imposed by regulatory authorities upon commonly prescribed anthracyclines due to their inherent cardiotoxicity.

b) Our WP1066 Portfolio includes WP1066, WP1193 and WP1220, three of several Immune/Transcription Modulators in the portfolio designed to inhibit p-STAT3 (phosphorylated signal transducer and activator of transcription 3) among other transcription factors associated with tumor activity. These also stimulate a natural immune response to tumors by inhibiting the errant activity of Regulatory T-Cells (TRegs).

c) Our WP1122 Portfolio contains compounds (including WP1122, WP1096, and WP1097) designed to exploit the potential uses of inhibitors of glycolysis such as 2-deoxy-D-glucose (2-DG). We believe such compounds may provide an opportunity to cut off the energy supply of tumors by taking advantage of their high degree of dependence on glucose in comparison to healthy cells, as well as viruses that also depend upon glycolysis and glycosylation to infect and replicate.

Annamycin and the Lack of Cardiotoxicity

As part of our Annamycin clinical trials, we have engaged an independent expert at the Cleveland Clinic to assess cardiotoxicity associated with chemotherapy (Expert or Independent Expert). The data made available to the Expert include left ventricular ejection fraction (LVEF) as determined by echocardiograms, and ECHO strain imaging, as well as serum Troponin levels (a biochemical marker of acute heart damage). “ECHO strain imaging” is a method in echocardiography (medical ultrasound) for measuring regional or global deformation (contraction or beating) of the myocardium (heart muscle). By strain rate imaging, the simultaneous function of different regions can be displayed and measured. Cardiac health biomarkers such as blood Troponin levels are considered an indicator of potential long-term heart damage. The Expert issued periodic reports during our MB-106 clinical trial and will also issue updated reports over the course of the MIRACLE trial. Such data from clinical trials where a clinical study report has not yet been issued include some data which are preliminary and subject to change.

We received several independent assessments for the absence of cardiotoxicity in subjects treated with Annamycin. We now have independent assessments covering 84 subjects that have been treated with Annamycin in five different clinical trials in the U.S. and Europe with no evidence of cardiotoxicity. To date of the 77 subjects treated in our internally funded trials, 56 were treated above the FDA’s lifetime maximum anthracycline limit of 550 mg/m², including one subject whose repeated Annamycin treatments took that subject to a total cumulative anthracycline exposure of 3,420 mg/m² (or roughly five times the FDA approved lifetime anthracycline exposure) and there has been no evidence of cardiotoxicity reported. After review of the data provided, the Independent Expert, in their most recent report and as stated in previous reports, concluded that there was no evidence of drug-related cardiotoxicity in any subjects.

We believe the Expert's reports are particularly relevant in light of a recently published retrospective study showing that the incidence of heart failure more than doubles for cancer patients treated with anthracyclines compared to cancer patients not receiving anthracyclines (C Larson, et al. Anthracycline and Heart Failure in Patients Treated for Breast Cancer or Lymphoma, 1985-2010. JAMA Network Open. 2023;6(2):e2254669. doi:10.1001/jamanetworkopen.2022.54669). Given the heart-damaging impact of prior treatment with currently prescribed anthracyclines, and considering that the subject population that we are enrolling in our Annamycin trials (multiple prior therapies, including anthracyclines known to be cardiotoxic, many elderly, and other comorbidities) we believe that there is a high likelihood that a cardiac event will eventually occur in the future that we will not be able to disassociate from Annamycin. We believe that the potential for such future incidences, however, does not outweigh the significant lack of cardiotoxicity to date as reflected in the Expert’s reports.

14

Table of Contents

Although we have not definitively concluded that Annamycin is incapable of cardiotoxicity, we discuss Annamycin’s lack of demonstrated cardiotoxicity in this document, corporate presentations and other public communications. Such discussions reflect the information in the preceding paragraphs but in summary are based on the following: 1) Annamycin was initially designed to be non-cardiotoxic; 2) Preclinical studies have demonstrated Annamycin lacks cardiotoxicity as compared to a currently prescribed anthracycline; and, 3) Our Expert’s conclusions from analyzing the data from 84 subjects treated with Annamycin in five clinical studies conducted in the US and in Europe. Our discussions will reflect any additional data or analyses as they become available.

Clinical Trials Summary

We have multiple active INDs/CTAs ("Investigational New Drug" authorization in the US or "Clinical Trial Authorization" in Europe). These INDs/CTAs are under development, approved, in progress, or completed and comprise a total of fourteen clinical trials, internally and externally funded. With Annamycin, we currently have active two AML clinical trials: MB-106 which is a Phase 1B/2 treating AML with AnnAraC (recruitment is closed and this trial is now in subject long-term follow-up) and MB-108 which is a Phase 2B/3 pivotal clinical trial treating R/R AML as 2^nd line therapy (recruitment has started and additional sites are being added). Additionally, there is one externally funded Phase 1B/2 trial treating STS Lung Mets with Annamycin as monotherapy. This trial is closed and is in follow-up on the trial’s subjects. With WP1066, we have an externally funded Phase 1B/2 trial in combination with radiation treating glioblastoma (GBM) at Northwestern University that is actively recruiting.

MIRACLE Trial

We have a Phase 3 pivotal trial for the treatment, with Annamycin in combination with Cytarabine, of AML patients who are R/R after induction therapy. This Phase 3 “MIRACLE” trial is a global study. It is an adaptive trial designed with a lead-in Part A portion of the study having three arms (control arm with cytarabine, and two test arms with cytarabine plus two different doses of Annamycin) intended to determine an “optimum dose” to be used in Part B of the study. Once an optimum dose for the Annamycin is determined the study will continue into Part B with two arms (control arm with cytarabine and a test arm with cytarabine plus Annamycin). In some contexts, we refer to Part A as Phase 2B and Part B as Phase 3, however the adaptive design enables the combining of data from Part A (for the optimum dose) with Part B such that data from both parts A and B will comprise Phase 3 data.

Recent Business Developments

Annamycin

Miracle Trial

Clinical and Regulatory

As of July 25, 2025, we have selected over 35 sites to conduct Part A of the MIRACLE trial in the US, the European Union (EU) and Eastern Europe. Four sites (one each in Ukraine, the country of Georgia, Spain and the US) are actively recruiting, screening and/or treating subjects. Besides these four sites the MIRACLE trial has been submitted to or has been approved by over 25 ethics committees of various clinics in the US and the EU. Eight subjects have been treated as of July 25, 2025 in the randomized, three-arm, blinded MIRACLE trial. This build-up to over 35 sites in the targeted countries of Ukraine, Georgia, US, Romania, Spain, Lithuania, Poland, Italy and Czechia should accelerate in August and September supporting our maintenance of our target for recruiting the first 45 subjects in Part A and unblinding the top line results in the second half of 2025.

In November 2024, we amended our existing US investigational new drug application or IND for inclusion of the MIRACLE trial protocol. In the amendment with the new MIRACLE protocol, the trial will allow, for the first time in the US for AML subjects, dosing above the lifetime maximum allowable dose for currently prescribed anthracyclines. Then in February 2025 we received FDA feedback and guidance on that amendment. Such feedback allowed a reduction in the size of our Part B of the Phase 3 pivotal trial protocol to 222 subjects. Guidance from FDA included a recommendation to alter the statistical plan that reduced the initially proposed size of Part B of our trial by approximately 10%. Moreover, the nature of the feedback helps us move forward quickly to open sites in the US, in addition to the non-US sites we are expecting to open. Any reduction in recruitment enables shortening the time for completion of the trial. 

In February through April of 2025, we received a total of five separate communications from the FDA including additional comments and information requests, all of which we believe we have adequately addressed. These requests focused mainly on safety, subject monitoring, clinical pharmacology, and inclusion/exclusion criteria. None of the requests focused on the overall trial design or dosing of Annamycin. Our last response was submitted on April 18, 2025 and we have not received follow-up communication since that time. However, we cannot be assured that our responses will be adequate for the FDA to continue to allow the amended IND to proceed, or that there will not be additional requests for information. Because we are amending an existing IND, there is no required time for the FDA to respond to our submissions, but neither is a positive FDA response required for us to proceed with the MIRACLE trial. At this time, we will proceed with the MIRACLE trial, as amended, in the US. As with all clinical trials, if at any time the FDA believes there is a safety issue that merits it, the agency may put the MIRACLE trial on clinical hold.

Expands Phase 3 MIRACLE Clinical Trial into the Country of Georgia

On July 9, 2025, we announced that the Regulation Agency for Medical and Pharmaceutical Activities (RAMPA) in the country of Georgia has approved our Clinical Trial Application (CTA) to conduct the MIRACLE trial, further expanding our active sites beyond Ukraine.

Receives European Medicines Agency Approval to Expand Phase 3 MIRACLE Clinical Trial

On May 12, 2025, we announced that the European Medicines Agency (EMA) approved its Clinical Trial Application to conduct its MIRACLE trial in all nine countries submitted in the European Union (EU). We received the final Report for the Application and Evaluation Assessment (part of the EMA’s Clinical Trial Information System or CTIS process) of "Acceptable" for Belgium, Czechia, France, Germany, Italy, Lithuania, Poland, Romania, and Spain. Such approval was under the condition that we present results of appropriate nonclinical GLP studies before initiating the Phase 3 portion (Part B) of the MIRACLE study. Such results will be submitted as a substantial modification. Along with the individual country committee and/or ethics approvals for these nine countries in the EU allows us to proceed. While there are minor differences between the US and EU protocols with the FDA and EMA, respectively, we do not view these as a barrier to conducting the study and are working to harmonize the protocols as appropriate.

15

Table of Contents

Pediatric Study for Annamycin in Combination Therapy with Cytarabine for the Treatment R/R AML

Received Positive FDA Feedback on Pediatric Study Plan for Annamycin in Children with R/R AML

We announced on June 18, 2025, we received a written response from the Office of Oncologic Diseases – Pediatric Oncology of the FDA regarding our Initial Pediatric Study Plan (iPSP), which was submitted after a June 2024 end-of-phase 1/2 meeting. The FDA has agreed to a single pediatric approval study in which Annamycin (also known as naxtarubicin) in combination with Cytarabine will be evaluated as second line therapy in pediatric patients with R/R AML.

Believing that this is particularly important in pediatric oncology because about 60% of children with cancer are treated with anthracyclines that present a high risk of causing heart damage, we expect to commence this trial in the second half of 2027. As part of the iPSP, we proposed a single-arm study evaluating pharmacokinetics (PK), efficacy, and safety of AnnAraC in patients between 2 and 16 years of age. The FDA response calls for including patients from 6 months of age and older, with no minimum number of patients between 6 months and 2 years old. FDA also clarified that drug concentration exposure and safety profile that are comparable would allow extrapolation from efficacy in adults. Importantly, FDA said we would be able to start the pediatric trial before having the full two years of follow-up data from the adult trial. We processed the updates to our iPSP to incorporate FDA’s recommendations and have received additional FDA comments, which we consider to be minor, to process.

MB-107 Annamycin in Monotherapy for the Treatment of STS Lung Mets

We recently hosted a Key Opinion Leader (KOL) call announcing and reviewing the final top line data from the MB-107 trial. The MB-107 trial involved Annamycin monotherapy treatment for STS Lung Mets. The final top line results of MB-107 demonstrated median overall survival (OS) of 13.5 months for subjects as median 7th line therapy (n=36). This compares to OS of 8-12 months in standard of care treatments and 13.4 months for experimental treatments for advanced STS as 2nd line (Comandone A, et al; “Salvage Therapy in Advanced Adult Soft Tissue Sarcoma: A Systematic Review and Meta-Analysis of Randomized Trials”; The Oncologist 2017;22:1518–1527).

Scientific Presentations of Preclinical Data

Promising Preclinical Data of Annamycin in Liver Cancer Treatment Presented at a Symposium at MD Anderson

On August 6, 2025, we announced the presentation of encouraging preclinical data for its lead drug candidate, Annamycin which demonstrated significant efficacy against various primary and metastatic liver cancers, including hepatocellular carcinoma (HCC), colorectal liver metastases, and pancreatic ductal adenocarcinoma (PDAC) liver metastases. This is believed to be the result of targeted accumulation in the liver and other organs. These findings were highlighted in a poster titled "Liposomal Annamycin (L-ANN) Efficacy Against Primary and Metastatic Liver Cancers," presented by Dr. Waldemar Priebe, Lead Author and Chairman of the Scientific Advisory Board at Moleculin at the recently held Shelby-Lavine Pancreatic Cancer Symposium at MD Anderson Cancer Center.

AACR Presentation of Pre-Clinical Data for Annamycin Market Expansion Potential, including Pancreatic Cancer

We announced on April 29, 2025, that new pre-clinical data for Annamycin demonstrating market expansion potential including treatment for pancreatic cancer was presented at the American Association for Cancer Research (AACR) Annual Meeting in Chicago, IL. With five previous or current investigator-initiated clinical trials supporting development of our drug candidates, we believe that our next investigator-initiated trials could be Annamycin for the treatment of pancreatic cancer or advanced soft tissue sarcomas.

The study, presented in poster form, was designed to assess the efficacy of Annamycin in combination with approved anticancer agents in order to identify novel potentially highly efficacious clinical applications of Annamycin alone and with a therapeutic partner. Annamycin in its non-liposomal form (free drug; in vitro) and Liposomal Annamycin (L-ANN; in vivo) were tested in combination with selected FDA approved drugs. Several of the most efficacious drug combinations from the in vitro studies were then tested using well developed in vivo models of leukemia and solid tumors, including sarcoma and pancreatic cancer. It should be noted that in a separate set of previous experiments, Annamycin activity was tested in vitro, and appeared to be highly active, against drug resistant cell lines, including cells resistant to cytarabine and venetoclax.

WP1066

Clinical Trial with WP1066 at Northwestern University

With our WP1066 oral formula, an externally funded Phase 1B/2 trial in combination with radiation treating GBM, a form of brain cancer, is recruiting and treating subjects at Northwestern University (Northwestern). This is an investigator-initiated trial where our main cost is supplying drug product. To date Northwestern has recruited 7 subjects, of which 5 have completed treatment and are undergoing follow-up while 2 continue with treatment. No data has been released.

Preclinical Studies with WP1066 IV Formula at Emory University

We have signed an agreement with Emory University whereby Emory will study various WP1066 IV formulations in preclinical studies with the goal of selecting the best molecule to move into a clinical setting towards, most likely, brain cancers such as GBM. Study drug was delivered in April 2025 to Emory with results from such studies expected in the second half of 2025.

Other Corporate

Additional Patent for Annamycin in the EU

On July 30, 2025, we announced that we received a Notice of Intent to Grant for the European patent application titled, "PREPARATION OF PRELIPOSOMAL ANNAMYCIN LYOPHILIZATE." Such grant should solidify the Company’s European Union exclusivity of Annamycin. The grant is subject to payment of fees and completion of final amendments and formalities. When issued, the patent claims will cover methods of making a preliposomal Annamycin lyophilizate with improved stability and high purity, with a base patent term currently extending until into 2040, subject to extension to account for time required to fulfill requirements for regulatory approval. In addition to the newly expected European patent and previously issued U.S. patents, we have additional patent applications related to Annamycin pending in the U.S., Europe and in major jurisdictions worldwide.

16

Table of Contents

World Health Organization Approval of “naxtarubicin” as International Non-Proprietary Name for Annamycin

We announced on May 6, 2025 that the International Nonproprietary Names (INN) Expert Committee of the World Health Organization approved “naxtarubicin1” for the non-proprietary name of the Company’s next-generation anthracycline in development, Annamycin. With this INN now given and prior approval by the United States Adopted Names (USAN), we have the ability to establish a universally recognized and conflict-free nonproprietary drug name for Annamycin. This is considered the last step of approvals for non-proprietary names. The use of this name will be merged into our public and clinical documents in the near-term.

Commonly referred to as a generic name, each INN is a unique name used to identify pharmaceutical substances or active pharmaceutical ingredients. Each active substance that is to be marketed as a pharmaceutical must be granted a unique name of worldwide acceptability to ensure the clear identification, safe prescription and dispensing of medicines to patients. Nonproprietary names are intended for wide use ranging from labelling and product information to drug regulation and scientific literature.

Additional Patents Issued for Annamycin in the US

We announced on May 5, 2025, that the U.S. Patent and Trademark Office (USPTO) granted two additional U.S. patents with claims covering Annamycin. U.S. patent number 12,257,261 titled, “Preparation of Preliposomal Annamycin Lyophilizate”, has claims covering methods of making liposomal Annamycin and U.S. patent 12,257,262 titled “Method of Reconstituting Liposomal Annamycin“, has claims covering methods of making liposomal Annamycin suspension. Both patents have a base patent term currently extending until June 2040, subject to adjustment for delays in prosecution and extension to account for time required to fulfill requirements for regulatory approval. Moleculin has additional patent applications related to Annamycin pending in the U.S., Europe and in major jurisdictions worldwide.

On March 6, 2025, we announced that we received a Notice of Intent to Grant for the European patent application titled, “Method of Reconstituting Liposomal Annamycin“. The grant is subject to payment of fees and completion of final amendments and formalities. Such grant will enhance the global exclusivity of Annamycin with the potential to be a next generation, non-cardiotoxic treatment for certain cancers. When issued, the patent claims will cover methods of making liposomal Annamycin suspension as well as the resulting compositions for use in the treatment of cancers, with a base patent term currently extending until June 2040, subject to extension to account for time required to fulfill requirements for regulatory approval. In addition to the expected European patent and previously issued U.S. patents, Moleculin has additional patent applications related to Annamycin pending in the U.S., Europe and in major jurisdictions worldwide.

Licenses and Sponsored Research with MD Anderson

We have terminated certain licenses related to WP1122 with MD Anderson and are in discussions to execute an option or options on these technologies along with additional technologies where the term of such options will be tied to the term of our Sponsored Research Agreement with MD Anderson. Such actions are in line with our efforts to focus our resources on the development of Annamycin.

Results of Operations

The following table sets forth, for the periods indicated, data derived from our statement of operations (table in thousands) and such changes in the periods are discussed below in approximate amounts:

Moleculin Biotech, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenues		$	—			$	—			$	—			$	—
Operating expenses:
Research and development			3,600				4,090				7,036				8,342
General and administrative			2,091				2,064				4,568				4,457
Depreciation and amortization			29				31				59				63
Total operating expenses			5,720				6,185				11,663				12,862
Loss from operations			(5,720	)			(6,185	)			(11,663	)			(12,862	)
Other income (loss):
Gain from change in fair value of warrant liability			9,609				1,696				18,663				3,151
Transaction costs allocated to warrant liabilities			(1,207	)			—				(2,995	)			—
Loss on issuance of warrant liabilities			(10,352	)			—				(18,150	)			—
Other income, net			4				11				13				22
Interest income, net			26				159				56				400
Net loss		$	(7,640	)		$	(4,319	)		$	(14,076	)		$	(9,289	)

¹ WHO Drug Information, Vol. 39, No. 1, 2025, pg. 217

17

Table of Contents

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Research and Development Expense. Research and development (R&D) expense was $3.6 million and $4.1 million for the three months ended June 30, 2025 and 2024, respectively. The decrease of $0.5 million is mainly related to a reduction in the clinical trials activity.

General and Administrative Expense. General and administrative expense was $2.1 million each for the three months ended June 30, 2025 and 2024.

Gain from Change in Fair Value of Warrant Liability. We recorded a net gain of $9.6 million in the second quarter of 2025 as compared to a net gain of $1.7 million in the second quarter of 2024, for the change in fair value on revaluation of our warrant liability associated with our warrants issued in conjunction with certain of our previous stock offerings. We are required to revalue our liability-classified warrants at the time of each warrant exercise, if applicable, and at the end of each reporting period and reflect in the statement of operations a gain or loss from the change in fair value of the warrant in the period in which the change occurred. We calculated the fair value of the warrants outstanding using the Black-Scholes model. A gain results principally from a decline in our share price during the period and a loss results principally from an increase in our share price.

Transaction costs allocated to warrant liabilities and Loss on issuance of warrant liabilities. Proceeds of offerings are allocated between common shares and warrants first by allocating to the warrants classified as a liability based on their fair value and then allocating the residual to the equity instruments, which would include pre-funded warrants. As the fair value of the liability classified warrants in the June 2025 offerings exceeded the total proceeds, no consideration was allocated to the common shares or pre-funded warrants. The full proceeds of the June 2025 offering was recorded to warrant liabilities, with an initial liability of $16.4 million, and a loss on initial recognition of $10.4 million. Transaction costs related to the offering were correspondingly fully allocated to warrant liabilities, and $1.2 million in related transaction costs were expensed during the three months ended June 30, 2025.

Interest income, net. Interest income, net decreased by approximately $0.1 million for the comparable quarterly periods due to a decreasing cash balance and decreasing interest rates during the past year.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Research and Development Expense. Research and development (R&D) expense was $7.0 million and $8.3 million for the six months ended June 30, 2025 and 2024, respectively. The decrease of $1.3 million is mainly related to a reduction in the clinical trials activity.

General and Administrative Expense. General and administrative expense was $4.6 million and $4.5 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $0.1 million is mainly related to a slight overall increase in regulatory and legal fees.

Gain from Change in Fair Value of Warrant Liability. We recorded a net gain of $18.7 million in the six months ended June 30, 2025 as compared to a net gain of $3.2 million in the six months ended June 30, 2024, for the change in fair value on revaluation of our warrant liability associated with our warrants issued in conjunction with certain of our previous stock offerings. We are required to revalue our liability-classified warrants at the time of each warrant exercise, if applicable, and at the end of each reporting period and reflect in the statement of operations a gain or loss from the change in fair value of the warrant in the period in which the change occurred. We calculated the fair value of the warrants outstanding using the Black-Scholes model. A gain results principally from a decline in our share price during the period and a loss results principally from an increase in our share price.

Transaction costs allocated to warrant liabilities and Loss on issuance of warrant liabilities. Proceeds of offerings are allocated between common shares and warrants first by allocating to the warrants classified as a liability based on their fair value and then allocating the residual to the equity instruments, which would include pre-funded warrants. As the fair value of the liability classified warrants in the June 2025 and February 2025 offerings exceeded the total proceeds, no consideration was allocated to the Common Shares or Pre-Funded Warrants. The full proceeds of the June 2025 and February 2025 offerings were recorded to warrant liabilities, with initial liabilities of $35.4 million, and losses on initial recognition of $18.2 million. Transaction costs related to the offering were correspondingly fully allocated to warrant liabilities, and $3.0 million in related transaction costs were expensed during the six months ended June 30, 2025.

Interest income, net. Interest income, net decreased by approximately $0.3 million for the comparable quarterly periods due to a decreasing cash balance and decreasing interest rates during the past year.

Liquidity and Capital Resources

The following table sets forth our primary sources and uses of cash for the period indicated (table in thousands):

		Six Months Ended June 30,
		2025				2024
Net cash used in operating activities		$	(10,146	)		$	(12,666	)
Net cash used in investing activities			—				(13	)
Net cash provided by (used in) financing activities			13,422				(25	)
Effect of exchange rate changes on cash and cash equivalents			3				(1	)
Net increase (decrease) in cash and cash equivalents		$	3,279			$	(12,705	)

As of June 30, 2025, there was $0.03 million of cash on hand in a bank account in Australia and we know of no related limitations impacting our liquidity in Australia.

18

Table of Contents

Cash used in operating activities

Cash used in operations was $10.1 million for the six months ended June 30, 2025. This $2.6 million decrease over the prior year period of $12.7 million was primarily due to the timing of costs incurred and associated payments for drug production and clinical trial expenses. 

Cash provided by financing activities 

In July 2025, we entered into an at-the-market equity agreement (the 2025 ATM Agreement) with Roth Capital Partners, LLC (Roth). Pursuant to the terms of the 2025 ATM Agreement, the Company may offer and sell shares of our common stock having an aggregate offering price of up to $6.5 million from time to time through or to Roth acting as our sales agent or principal. Roth may also sell shares of our common stock in negotiated transactions at market prices prevailing at the time of sale at prices related to such prevailing market prices. We paid a commission to Roth equal to 3.0% of the gross proceeds from the sale of our common stock under the 2025 ATM Agreement.

In June 2025, we completed a public offering for the sale of 9,972,026 shares of common stock, and 6,107,974 pre-funded warrants to purchase shares of common stock, and Series E Warrants to purchase up to 48,240,000 shares of common stock. The combined purchase price for the securities was $0.37 per Share of common stock (or pre-funded warrant in lieu thereof). Each Series E Warrant will be exercisable upon the receipt of shareholder approval, will have an exercise price of $0.37 per share, and expire five years from the initial exercise date. The Company received gross proceeds of $5.9 million and up to an additional approximately $17.8 million in gross proceeds if the warrants are fully exercised for cash.

On February 25, 2025, we entered into a securities purchase agreement with an institutional investor for the sale by the Company of 1,150,000 shares of common stock, and 2,121,029 pre-funded warrants to purchase shares of common stock, and series D warrants to purchase up to 6,543,058 shares of common stock. The combined purchase price for the securities was $1.07 per share of common stock (or pre-funded warrant in lieu thereof). Each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.001 per share. The pre-funded warrants are exercisable immediately and may be exercised at any time until all of the pre-funded warrants are exercised in full, subject to the beneficial ownership limitation. Each common warrant will be exercisable upon the receipt of shareholder approval, will have an exercise price of $1.07 per share, and expire five years from the initial exercise date. We received gross proceeds of $3.5 million. All prefunded warrants were exercised in June 2025.

On February 13, 2025, we entered into a warrant exercise inducement offer letter with a holder of certain existing warrants to receive new warrants to purchase up to a number of shares of common stock equal to 200% of the number of warrant shares issued pursuant to the exercise of such existing warrants to purchase up to 5,828,570 shares of common stock (series C warrants) pursuant to which the Holder agreed to exercise for cash their existing warrants at a reduced exercise price of $1.00 in exchange for our agreement to issue the inducement warrants to purchase up to 11,657,140 shares of the Company's common stock. Each inducement warrant will have an exercise price of $0.75, and will be exercisable as of the date of issuance and may be exercised for a period of five years therefrom. We received gross proceeds of $5.8 million. This brings the total gross proceeds received in February 2025 to $9.3 million.

On August 19, 2024, we completed a public offering of 283,000 shares of common stock and 2,183,368 pre-funded warrants to purchase shares of common stock, Series A warrants to purchase up to 2,466,368 shares of common stock and Series B warrants to purchase up to 2,466,368 shares of common stock, at a combined public offering price of $2.23 per share (or per pre-funded warrant in lieu thereof) and accompanying warrants. We received gross proceeds of $5.5 million, before deducting the placement agent's fees and other offering expenses.

We believe that our cash on hand and cash equivalents as of June 30, 2025, is sufficient to fund our planned operations into the fourth quarter of 2025. This takes into account cash outlays for preparations for clinical trials beyond the current active trials. The continuation of our Company as a going concern is dependent upon our ability to obtain necessary financing to continue operations and the attainment of profitable operations. We must seek additional funding of approximately $10 million to support MIRACLE and our operations into the first quarter of 2026 through a combination of equity offerings, debt financings, government or other third-party funding, commercialization, marketing and distribution arrangements, other collaborations, strategic alliances and licensing arrangements and delay planned cash outlays or a combination thereof to continue our operations in the near term. We cannot provide assurance that such events or a combination thereof can be achieved.

In March 2022, we received a subpoena from the SEC requesting information and documents, including materials related to certain individuals (none of which are our officers or directors) and entities, and materials related to the development of and statements regarding our drug candidate for the treatment of COVID-19. We have received, and expect to continue to receive, periodic further requests from the SEC staff with respect to this matter. We are not aware of the specific nature of the underlying investigation by the SEC, and to the extent that this investigation relates to prior public disclosures that we have made, we believe in the accuracy and adequacy of such prior disclosures. The correspondence from the SEC transmitting the subpoena to us states that the SEC is trying to determine whether there have been any violations of federal securities laws, but that its investigation does not mean that the SEC has concluded that anyone has violated the law or that the SEC has a negative opinion of any person, entity, or security. We cannot predict when this matter will be resolved or what, if any, action the SEC may take following the conclusion of the investigation. We expensed approximate ly $0.01  million and $0.1 million in related general and administrative fees and expenses for the three months ended  June 30, 2025 and 2024 , respectively, and approximate ly $0.03  million and $0.1 million in related general and administrative fees and expenses for the six months ended  June 30, 2025 and 2024 , respectively.

Critical Accounting Policies and Significant Judgments and Estimates

There have been no material changes to our critical accounting policies and use of estimates from those disclosed in our Form 10-K for the year ended December 31, 2024. For a discussion of our critical accounting policies and use of estimates, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Significant Estimates in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

19

Table of Contents

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Not applicable as we are a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that material information required to be disclosed in our filings under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that material information is accumulated and communicated to our management, including our Chief Executive Officer (CEO), who is our principal executive officer, and Chief Financial Officer (CFO), who is our principal financial and accounting officer, as appropriate, to allow timely decisions regarding required disclosures. Our CEO and CFO have evaluated these disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q and have determined that such disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15-d-15(f) under the Exchange Act) during the three months ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

For information regarding factors that could affect our results of operations, financial condition and liquidity, refer to the section entitled “Risk Factors” in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2024. Except as set forth below, there have been no material changes from the risk factors previously disclosed in our annual report on Form 10-K for the year ended December 31, 2024, as filed with the SEC.

We are not in compliance with multiple of Nasdaq’s continued listing requirements and if we are unable to regain compliance with the listing requirements, our common stock will be delisted from Nasdaq which could have a material adverse effect on our financial condition and could make it more difficult for stockholders to sell their shares.

Our common stock is listed on Nasdaq, and we are therefore subject to its continued listing requirements, including requirements with respect to the market value of publicly held shares, market value of listed shares, minimum bid price per share, and minimum stockholder’s equity, among others, and requirements relating to board and committee independence. If we fail to satisfy one or more of the requirements, we may be delisted from Nasdaq.

On May 23, 2025, we received a letter from the Staff of the Listing Qualifications Department of Nasdaq notifying us that we do not presently comply with Nasdaq’s Listing Rule 5550(b)(1) (the “Equity Rule”), which requires that we maintain a minimum of $2.5 million in stockholders’ equity, and that we also do not meet the alternatives of market value of listed securities or net income from continuing operations set forth in the Equity Rule.

We have submitted a plan to regain compliance. If our plan is accepted, the Staff can grant an extension of up to 180 calendar days from May 23, 2025 to evidence compliance. After review of the plan of compliance, the Staff will provide written notification to us whether it accepts the plan, and if the Staff does not accept the plan, we would then be entitled to appeal the Staff’s determination to the Nasdaq Hearings Panel. There can be no assurance that, if we do appeal the determination to the Nasdaq Hearings Panel, that such appeal would be successful.

We are accounting for the Series E warrants issued in the June 2025 Offering as a warrant liability at fair value as of issuance and any subsequent changes in fair value each reporting period will be reported in earnings, as either a gain or loss. The initial accounting for the warrant liability and the future impact of changes in fair value on earnings will have an adverse effect on our net income and our stockholders’ equity. Additionally, such warrant liability may hinder our ability to meet the stockholders’ equity required in the Equity Rule.

On June 27, 2025, we received another deficiency letter from the Staff of the Listing Qualifications Department of Nasdaq notifying us that for the last 30 consecutive business days the bid price for our common stock had closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”).

In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the “Compliance Period Rule”), we have been provided an initial period of 180 calendar days, or until December 24, 2025 (the “Compliance Date”), to regain compliance with the Bid Price Rule. If, at any time before the Compliance Date, the bid price for our common stock closes at $1.00 or more for a minimum of 10 consecutive business days as required under the Compliance Period Rule, the Staff will provide written notification to us that we comply with the Bid Price Rule, unless the Staff exercises its discretion to extend this 10 day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H).

If we are not in compliance with the Bid Price Rule by December 24, 2025, we may be afforded a second 180 calendar day period to regain compliance. To qualify, we would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq, except for the minimum bid price requirement. In addition, we would be required to notify Nasdaq of our intent to cure the minimum bid price deficiency, which may include, if necessary, implementing a reverse stock split.

If we do not regain compliance with the Bid Price Rule by the Compliance Date and are not eligible for an additional compliance period at that time, the Staff will provide written notification to us that our common stock may be delisted. We would then be entitled to appeal the Staff’s determination to a Nasdaq Listing Qualifications Panel and request a hearing. There can be no assurance that, if we do appeal the delisting determination by the Staff to the Nasdaq Listing Qualifications Panel, such appeal would be successful.

20

Table of Contents

Delisting from Nasdaq would adversely affect our ability to raise additional financing through the public or private sale of equity securities, may significantly affect the ability of investors to trade our securities and may negatively affect the value and liquidity of our common stock. Delisting also could have other negative results, including the potential loss of employee confidence, the loss of institutional investors and general investors that will consider investing in our common stock, a reduction in the number of market makers in our common stock, a reduction in the availability of information concerning the trading prices and volume of our common stock, a reduction in the number of broker-dealers willing to execute trades in shares of our common stock or interest in business development opportunities. Further, we would likely become a “penny stock”, which would make trading of our common stock more difficult.

Our ability to regain compliance with Nasdaq’s bid price requirements may be hindered by the June 2025 Offering we completed and the future exercises of the Series E warrants.

As discussed in the prior risk factor, on June 27, 2025, we received a deficiency letter from the Staff of the Listing Qualifications Department of Nasdaq notifying us that for the last 30 consecutive business days the bid price for our common stock had closed below the minimum $1.00 per share requirement for continued inclusion on Nasdaq.

The future exercise of the Series E warrants issued in the June 2025 Offering we completed may depress our common stock price. In addition, if the exercise price adjustment provisions of the Series E warrants are triggered in the future, which would cause a reduction in the exercise price of the Series E warrants (subject to the floor price) and a proportionate increase in the number of shares underling the Series E warrants, such event may further depress our common stock price.

In order to increase our common stock price, we may in the future complete a reverse stock split. If we complete a reverse stock split and the lowest daily volume weighted average price during the period commencing five consecutive trading days immediately preceding and the five consecutive trading days commencing on the date of such split is less than the exercise price of the Series E warrants then in effect, then the exercise price of the Series E warrants will be reduced to the lowest daily volume weighted average price during such period and, following the date our shareholders approve an increase in our authorized shares of common stock, the number of shares issuable upon exercise will be proportionately adjusted such that the aggregate price will remain unchanged, subject to the floor price. This future potential adjustment of the Series E warrants may significantly increase the number of shares of common stock underlying the Series E warrants and cause dilution to our shareholders.

At our Annual Meeting of Stockholders to be held on August 18, 2025, we will seek stockholder approval granting our Board of Directors authority to effect a reverse stock split of the outstanding shares of our common stock, at a reverse stock split ratio of between 1-for-2 to 1-for-30 (or any whole number in between), as determined by the Board in its sole discretion, prior to the one-year anniversary of such approval.

We will require additional financing in the near term, which financing may result in the reduction of the exercise price of the Series E warrants we issued in our June 2025 Offering and the increase in the number of shares underlying the Series E warrants, which would dilute the ownership interest of our stockholders.

Developing pharmaceutical products, including conducting preclinical studies and clinical trials, is expensive. We will require substantial additional future capital in order to complete clinical development and commercialize Annamycin.

The Series E warrants we issued in the June 2025 Offering provide that if, while the Series E warrants are outstanding, we sell any common stock and/or common stock equivalents other than in connection with certain exempt issuances, at a purchase price per share less than the exercise price of the Series E warrants in effect immediately prior to such sale, then immediately after such sale the exercise price of the Series E warrants then in effect will be reduced to an amount equal to the new issuance price, and, following the date that we amend our certificate of incorporation to increase our authorized shares of common stock, the number of shares issuable upon exercise of the Series E warrants will be proportionately adjusted such that the aggregate price will remain unchanged, subject to the floor price. The floor price is $0.12, and the total number of shares potentially issuable under the Series E warrants if the exercise price of the Series E warrants was reduced to the floor price would be 148,740,000 shares of common stock.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 5. OTHER INFORMATION.

During the period covered by this Quarterly Report, none of the Company’s directors or executive officers has adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).

21

Table of Contents

 

ITEM 6. EXHIBITS

Exhibit No.						Description
4.1						Form of Series E Warrant issued in June 2025 offering (incorporated by reference to Exhibit 4.1 of the Form 8-K filed June 23, 2025)
4.2						Form of Pre-Funded Warrant in June 2025 offering (incorporated by reference to Exhibit 4.13 of the Form S-1 filed June 2, 2025)
10.1						At The Market Offering Agreement, dated July 11, 2025, by and between Moleculin Biotech, Inc., and Roth Capital Partners, LLC (incorporated by reference to Exhibit 1.1 of the Form 8-K filed July 11, 2025)
10.2						Form Placement Agency Agreement between Moleculin Biotech, Inc. and Roth Capital Partners, LLC (incorporated by reference to Exhibit 1.1 of the 8-K filed June 23, 2025)
10.3						Form of Securities Purchase Agreement in June 2025 offering (incorporated by reference to Exhibit 10.1 of the 8-K filed June 23, 2025)
31.1*						Certification of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2*						Certification of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1*+						Certification of Principal Executive Officer Pursuant to Section 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*+						Certification of Principal Accounting and Financial Officer Pursuant to Section 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*						Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH*						Inline XBRL Taxonomy Extension Schema Document
101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

+ The certifications on Exhibit 32 hereto are deemed not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

22

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			MOLECULIN BIOTECH, INC.
Date: August 12, 2025			By:			/s/ Walter V. Klemp
						Walter V. Klemp,
						Chief Executive Officer and Chairman (Principal Executive Officer)
Date: August 12, 2025			By:			/s/ Jonathan P. Foster
						Jonathan P. Foster,
						Executive Vice President & Chief Financial Officer (Principal Financial and Accounting Officer)

23

FAQ

What were Moleculin (MBRX) cash and net loss figures for Q2 2025?

As of June 30, 2025, Moleculin reported $7.6 million in cash and a Q2 2025 net loss of $7.64 million.

What is the status of Moleculin's Phase 3 MIRACLE trial (MBRX)?

The MIRACLE trial is active across >35 targeted sites in the US, EU and Eastern Europe; 8 subjects were treated as of July 25, 2025, with an interim unblinding planned by end of 2025.

Does Moleculin face Nasdaq listing risks (MBRX)?

Yes. Nasdaq issued deficiency notices for stockholders' equity (below $2.5M) and for bid price (under $1); the company submitted a compliance plan on July 3, 2025 and has a bid-price compliance period through Dec 24, 2025.

What material warrant and financing actions did Moleculin undertake in 2025?

In June 2025 the company completed an offering with Series E warrants; gross proceeds were $5.9M and the Series E warrants had a fair value of $16.3M, resulting in a recorded warrant liability of $20.55M and a $10.4M loss on issuance.

What clinical/regulatory uplifts did Moleculin announce in 2025?

Highlights include EMA acceptance for MIRACLE CTAs in nine EU countries, Georgia CTA approval, FDA positive pediatric iPSP feedback, and MB-107 topline OS of 13.5 months (n=36).