Anebulo Pharmaceuticals' Cash Burn: What You Need to Know

Anebulo Pharmaceuticals (NASDAQ:ANEB) had $12m in cash and was debt-free in June 2025, with a cash burn of $6.3m in the last year, giving it a cash runway of approximately 22 months. The company has reduced its cash burn by 22% year on year, but shareholders should consider how easy it would be for Anebulo Pharmaceuticals to raise more cash in the future.

Anebulo Pharmaceuticals (NASDAQ:ANEB) reported its financial performance for the fourth quarter and fiscal year 2025, offering insights into its cash management and strategic initiatives. The company, focused on developing treatments for cannabis toxicity, reported a net loss of $8.5 million, a slight increase from the previous year, primarily due to increased research and development expenses Anebulo Pharmaceuticals, Inc. SEC 10-K Report^[2].

Anebulo Pharmaceuticals ended June 2025 with $12 million in cash and was debt-free. Despite a cash burn of $6.3 million in the last year, the company has reduced its cash burn by 22% year on year, extending its cash runway to approximately 22 months. This financial stability is crucial as the company continues to invest in its lead product candidate, selonabant, which is being developed for both oral and intravenous formulations to treat cannabis toxicity.

The company's lead product candidate, selonabant, has completed a Phase II clinical trial in the Netherlands, demonstrating positive results in treating cannabis intoxication. Anebulo Pharmaceuticals is now prioritizing the development of an intravenous formulation of selonabant for pediatric patients with unintentional cannabis poisoning, aiming to expedite regulatory approval Anebulo Pharmaceuticals, Inc. SEC 10-K Report^[2].

Anebulo Pharmaceuticals' financial health is supported by a $0.9 million grant from NIDA for the development of intravenous selonabant. The company has also entered into a Loan and Security Agreement with 22NW and JFL Capital Management LLC, allowing for borrowing up to $3 million. Additionally, the company completed a private placement offering, raising approximately $14.9 million in net proceeds Anebulo Pharmaceuticals, Inc. SEC 10-K Report^[2].

However, the company faces significant challenges. It has not generated any revenue since inception and expects to incur future losses, with no assurance of profitability. The company's intellectual property risks are substantial, as it relies on patents to protect its product candidate. Regulatory and market risks also pose threats, including potential changes in healthcare regulations and competition from other entities developing similar treatments Anebulo Pharmaceuticals, Inc. SEC 10-K Report^[2].

In conclusion, while Anebulo Pharmaceuticals has shown financial resilience and strategic progress, investors should remain vigilant about the company's cash management and the challenges it faces in raising additional capital and obtaining regulatory approval.