How does the cash position and burn rate look, and when will the company need additional financing, if any?

Cash & Burn: Nuwellis’ Q2‑2025 release shows cash and cash equivalents of roughly $45 million at June 30, down from about $68 million at the end of FY 2024. Operating cash outflows were $7–8 million per quarter, i.e., a burn rate of ≈$2.5 million per month after accounting for the one‑time R&D milestone payments disclosed in the filing. At the current pace, the existing cash runway extends ≈18 months, assuming no material change in expense cadence or revenue upside.

Financing Timeline & Trading Implications: With runway into early‑2027, the company is not forced into a near‑term capital raise, but the “cash‑flow negative” profile and the need to fund a Phase III‑type clinical trial slated for late‑2025 create a financing catalyst. Management has hinted at a $40–50 million equity or convertible debt offering in the Q4‑2025 window to avoid dilution pressure later in 2026. Traders should watch for 8‑K/10‑Q filings and any pre‑announced bridge financing. A price‑support rally is plausible if the company secures a well‑priced equity line, while a sell‑off may emerge if market pricing signals a steep discount or the company delays fundraising, compressing the valuation multiple (EV/Revenue) toward the low‑end of its peer set. In the short term, look for buying opportunities on pull‑backs near the 20‑day SMA and be prepared to exit if the cash‑runway narrative turns bearish (e.g., guidance revision or missed trial enrollment milestones).