Summary and Analysis of Azitra’s Financial Report

Overview Azitra is a biopharmaceutical company focused on developing innovative therapies for precision dermatology using engineered proteins and live biotherapeutic products. The company has built a proprietary platform that includes a microbial library of approximately 1,500 unique bacterial strains and utilizes artificial intelligence and machine learning technology. Azitra’s initial focus is on the development of genetically engineered strains of Staphylococcus epidermidis for treating various skin diseases.

Financial Performance Azitra is an early-stage clinical biopharmaceutical company that has not commenced commercial operations. The company has capitalized its operations primarily through a series of private placements, public offerings, and an equity line of credit. As of March 31, 2026, Azitra had total assets of approximately $12.1 million and working capital of $9.2 million, with $10.1 million in cash and cash equivalents.

During the three months ended March 31, 2026, Azitra reported the following financial results:

• Total operating expenses of $3.93 million, a 27% increase from the prior year period
  • General and administrative expenses of $2.37 million, a 28% increase
  • Research and development expenses of $1.56 million, a 25% increase
• Net loss of $3.93 million, a 28% increase from the prior year period
• Net cash used in operating activities of $2.48 million
• Net cash provided by financing activities of $10.50 million, primarily from a private placement and draws on the equity line of credit

Strengths and Weaknesses Strengths:

• Proprietary platform with a large microbial library and AI/ML capabilities
• Promising pipeline of product candidates targeting various skin diseases
• Partnerships with leading academic institutions
• Exclusive license to Fred Hutch’s SyngenicDNA Minicircle Plasmid (SyMPL) technology

Weaknesses:

• Early-stage company with no commercial operations or revenue
• Significant operating losses and cash burn
• Reliance on external financing to fund operations
• Potential delisting from the NYSE American due to non-compliance with continued listing standards

Outlook Azitra is focused on rapidly advancing its current pipeline of live biotherapeutic candidates, including ATR-12 for Netherton syndrome, ATR-04 for EGFRi-associated rash, and ATR-01 for ichthyosis vulgaris. The company is also developing cosmetic ingredients using its technology platform.

To achieve compliance with the NYSE American’s continued listing standards, Azitra has submitted a plan and is committed to undertaking a transaction or transactions in the future. However, there is no assurance that the company will be able to regain compliance within the required timeframe.

Azitra’s ability to continue as a going concern is dependent on its ability to raise additional capital through various financing sources. The company’s future success will depend on its ability to successfully develop and commercialize its product candidates, as well as its ability to secure the necessary funding to support its operations.