Adial Pharmaceuticals Inc. reported a net loss of $2.2 million for the first quarter of 2025, a notable decrease from the net loss of $6.5 million in the same period of 2024. This reduction in net loss was primarily due to non-cash charges of $4.5 million for an inducement expense in 2024 that were not incurred in 2025. However, the decrease was partially offset by increased research and development (R&D) and general and administrative (G&A) spending. R&D expenses rose by approximately $293 thousand, or 65%, driven by increased chemistry, manufacturing, and controls $(CMC)$ expenses for developing clinical supplies and consulting expenses related to advancing AD04 to a Phase 3 trial. G&A expenses increased by approximately $129 thousand, or 9%, mainly due to higher compensation and consulting costs. Significant business developments included the successful completion of equivalence between the formulation used in the prior Phase 3 ONWARD trial and the planned commercial formulation of AD04, which streamlines the path to the next pivotal study. Adial is also preparing for an End of Phase 2 meeting with the FDA in July to finalize key aspects of their Phase 3 trial design and protocol. Additionally, the company continues to strengthen its intellectual property portfolio with multiple granted patents that enhance the value and defensibility of the AD04 program.