SPROHIGH SIGNALFINANCIAL10-K

SPRO achieved a dramatic turnaround from a $68.6M loss to $8.6M profit while significantly reducing R&D spending and refocusing entirely on tebipenem HBr development.

The company has successfully restructured by abandoning two drug programs (SPR206 and SPR720) and concentrating resources on its most promising asset, tebipenem HBr, in partnership with GSK. However, the language changes reveal increased dependency risk, as SPRO now appears more reliant on GSK's execution rather than having direct control over FDA approval, and the company still faces going concern issues despite the improved financials.

Comparing 2026-03-26 vs 2025-03-27View on EDGAR →
FINANCIAL ANALYSIS

SPRO delivered a remarkable financial transformation, swinging from a $68.6M net loss to an $8.6M profit driven by 39% revenue growth to $66.8M and a dramatic 60% reduction in R&D expenses to $38.5M. The company significantly deleveraged, cutting total liabilities by 85% to $9.9M, though total assets also declined 38% to $68.9M, indicating asset monetization or restructuring activities. Operating cash flow losses improved by 46% to -$12.6M, signaling better cash management, but the overall asset reduction combined with ongoing negative operating cash flow suggests the company is still burning through resources despite the profitable year.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+112.5%
-$68.6M→$8.6M

Net income grew 112.5% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+108.6%
-$73.4M→$6.3M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Total Liabilities
Balance Sheet
-84.6%
$64.4M→$9.9M

Liabilities reduced 84.6% — deleveraging improves balance sheet strength and financial flexibility.

Current Liabilities
Balance Sheet
-81.9%
$49.1M→$8.9M

Current liabilities reduced — improved short-term financial position and working capital health.

R&D Expense
P&L
-60.2%
$96.8M→$38.5M

R&D spending cut 60.2% — could signal cost discipline or concerning reduction in innovation investment.

Capital Expenditure
Cash Flow
-50%
$314K→$157K

Capex reduced 50% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Operating Cash Flow
Cash Flow
+46.2%
-$23.4M→-$12.6M

Operating cash flow surged 46.2% — exceptional cash generation, highest quality earnings signal.

Revenue
P&L
+39.2%
$48.0M→$66.8M

Strong top-line growth of 39.2% — accelerating demand or successful expansion into new markets.

Total Assets
Balance Sheet
-37.7%
$110.5M→$68.9M

Total assets contracted 37.7% — asset sales, write-downs, or balance sheet optimization underway.

Current Assets
Balance Sheet
-37.3%
$107.3M→$67.3M

Current assets declined 37.3% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-03-26
PRIOR — 2025-03-27
ADDED
As of March 20, 2026, there were 57,891,493 shares of the registrant s common stock, $0.001 par value per share, outstanding.
These forward-looking statements include, but are not limited to, statements about: our estimates regarding expenses, future revenue and capital requirements and our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash and cash equivalents; the initiation, timing, design, progress and results of any preclinical studies and clinical trials, and our research and development programs; the regulatory path forward for tebipenem HBr and the potential approval of tebipenem HBr by the U.S.
These risks and uncertainties include, but are not limited to, the following: As of March 2025, we have ceased development of our SPR206 program, and as of November 2025, we have ceased development of our SPR720 oral program, and have shifted our focus and resources to advancing the development of the tebipenem HBr program, as well as other corporate activities.
If we fail to execute successfully on this re-prioritized strategic focus, or our collaboration with GSK fails to advance the development of the tebipenem HBr program, our business and prospects may be materially adversely affected.
Our ability to realize the value of tebipenem HBr depends on obtaining FDA approval.
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REMOVED
As of March 21, 2025, there were 55,900,641 shares of the registrant s common stock, $0.001 par value per share, outstanding.
These risks and uncertainties include, but are not limited to, the following: Our ability to realize the value of tebipenem HBr depends on our commercial partner, GSK, obtaining FDA approval.
Pursuant to our previously announced restructuring, we have suspended development of our SPR720 oral program and have shifted our focus and resources to advancing the clinical development of our tebipenem HBr program, as well as other corporate activities.
If we fail to execute successfully on this re-prioritized strategic focus, our business and prospects may be materially adversely affected.
The report of our auditor on our consolidated financial statements expresses substantial doubt about our ability to continue as a going concern; if we are unable to obtain additional capital, we may not be able to continue our operations on the scope or scale as currently conducted, and that could have a material adverse effect on our business, results of operations and financial condition.
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