Company: SPRB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0000950170-25-108888
Chunk: 11

Company: SPRUCE BIOSCIENCES, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 11
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 the financial statements to reflect this Reverse Stock Split for all periods presented.Reduction in ForceOn April 21, 2025, the Company effected a workforce reduction of 55% to prioritize development and potential accelerated approval of tralesinidase alfa enzyme replacement therapy for the treatment of Sanfilippo Syndrome Type B. The workforce reduction was effective immediately, with a termination date of May 2, 2025 for affected individuals. During the three months ended June 30, 2025, the Company incurred total operating expenses of $0.9 million in connection with the workforce reduction, consisting of expenses related to severance payments and healthcare coverage assistance and related costs. The workforce reduction was completed as of June 30, 2025.Liquidity and Capital Resources The Company has incurred significant losses and negative cash flows from operations. During the six months ended June 30, 2025, the Company incurred a net loss of $16.1 million and used $21.6 million of cash in operations. As of June 30, 2025, the Company had an accumulated deficit of $266.4 million and does not expect positive cash flows from operations in the foreseeable future. The Company has funded its operations primarily through the issuance and sale of equity securities, debt and collaboration revenue.The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which assumes the realization of assets and satisfaction of liabilities and commitments in the normal course of business. Without alternative financing or proceeds from other strategic alternatives, the Company believes that based on its current operating plan, its cash and cash equivalents of $16.4 million as of June 30, 2025 will be insufficient to fund its planned operations and debt obligations for at least 12 months following the issuance date of these financial statements. The Company’s ability to continue as a going concern will require the Company to raise additional capital to fund the Company's operations and there can be no assurance that additional financing will be available to the Company or that such financing, if available, will be available on terms acceptable to the Company. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern for at least 12 months following the issuance date of these financial statements.