KTTA

Pasithea Therapeutics Corp. (KTTA) - Q1 2026 Filing Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2026. Pasithea Therapeutics Corp. is a clinical-stage biotechnology company focused on developing treatments for RASopathies and MAPK pathway-driven tumors. The company's lead candidate, PAS-004 (a MEK inhibitor), is currently in Phase 1 trials for advanced cancer and neurofibromatosis type 1 (NF1). The company operates as a single reporting segment and is classified as an Emerging Growth Company and Smaller Reporting Company.

Key Financial Metrics

Note: The company has no product revenue. Interest and dividends income was $450,338 for Q1 2026.

Material Changes vs. Prior Period

• Net Loss Improvement: Net loss decreased by approximately $694,000 (19.5%) compared to Q1 2025. This improvement was primarily driven by a non-cash gain of $1,542,132 from the change in fair value of warrant liabilities.
• Operating Expenses: Total operating expenses increased by $1,196,465 (32.5%). Research and Development (R&D) expenses rose 70.1% to $2.94 million due to increased clinical trial, CMC, and preclinical costs for PAS-004. General and Administrative (G&A) expenses remained relatively flat, decreasing slightly by 0.8%.
• Liquidity Position: Cash balances increased significantly from Q1 2025 levels due to a $54.9 million net proceeds public offering in December 2025. However, cash decreased by $4.76 million during Q1 2026 due to operational burn.
• Warrant Liability Reclassification: In January 2026, the company increased its authorized share count, allowing the reclassification of $3.84 million in Placement Agent Warrant liabilities to equity. This resulted in a $1.55 million gain recognized in the statement of operations.

Outlook, Risks, and Management Commentary

• Clinical Progress: The Phase 1 Advanced Cancer Study for PAS-004 has completed initial cohorts up to 45 mg and is proceeding with dose escalation using a tablet formulation. The company expects to complete this trial in 2028. A Phase 1/1b trial for NF1 patients was initiated in May 2025.
• Liquidity Outlook: Management estimates that current cash resources ($50.4 million) are sufficient to fund operations for at least the next 12 months. The company remains dependent on additional equity or debt financing to execute long-term development plans.
• Capital Markets: The company deregistered its At-The-Market (ATM) offering program in January 2026 and did not sell shares under this agreement during Q1 2026. Significant warrant exercises occurred in Q1 and subsequent events (April-May 2026), converting pre-funded warrants into common stock.
• Risks: Key risks include the need for additional capital, the uncertainty of clinical trial outcomes, potential inflationary pressures on costs, and the company's history of operating losses. The company ceased development of its PAS-003 program for ALS in late 2025.

Investor Verification Checklist

• Cash Runway: Verify the burn rate against the $50.4 million cash balance to confirm the 12-month liquidity estimate.
• Warrant Exercises: Review the impact of the 8.47 million pre-funded warrants exercised between April and May 2026 (subsequent event) on share count and dilution.
• ATM Status: Confirm the status of the deregistered ATM program and the company's ability to raise capital without it.
• Clinical Milestones: Monitor the timeline for the PAS-004 Phase 1 dose escalation and the initiation of pediatric NF1 trials.
• Expense Trends: Track the 70% increase in R&D expenses to ensure alignment with clinical trial enrollment and CMC scaling.