Adicet Bio (ACET) 2025 Conference June 04, 2025 04:20 PM ET Speaker0 All right. Good afternoon, everyone. Welcome to the twenty twenty five Jefferies Global Healthcare Conference. My name is Clara Don. I'm one of the biotech analysts here at Jefferies. So we're very pleased to have Ken Shore, president and CEO of Adisat, join us today for this fireside chat. Welcome. Speaker1 Good afternoon. I'm very happy to be here and look forward for a productive session, Clara. Speaker0 Great. So before we go into deta ...

Core Viewpoint - Adicet Bio, Inc. (ACET) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance Indicators - The upgrade for Adicet Bio reflects an improvement in the company's underlying business, which is expected to drive the stock price higher [4]. - For the fiscal year ending December 2025, Adicet Bio is projected to earn -$1.71 per share, representing a -28.6% change from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - Adicet Bio's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Summary of Adicet Bio (ACET) Conference Call Company Overview - Adicet Bio is a leader in gamma delta CAR T cell therapies, which have several advantages over traditional therapies, including being off-the-shelf, better safety profiles, and effective tissue distribution [3][4][5][6][7]. Key Advantages of Gamma Delta CAR T Cells - **Off-the-Shelf Availability**: Gamma delta CAR T cells can be administered without prior patient-specific modifications, reducing preparation time [3]. - **Safety Profile**: These cells are associated with lower rates of cytokine release syndrome (CRS) and immune effector cell-associated neurotoxicity syndrome (ICANS) compared to alpha beta T cells [4]. - **Tissue Distribution**: Gamma delta T cells effectively localize to tissues, which is beneficial for treating autoimmune diseases and solid tumors [5][6]. - **Innate Antitumor Activity**: They can target tumor cells even if they do not express the specific target, enhancing their therapeutic potential [7]. Clinical Programs and Data - Adicet Bio is currently running two clinical programs and has two preclinical programs in development [8]. - In clinical trials for diffuse large B-cell lymphoma (DLBCL) and mantle cell lymphoma (MCL), the complete response (CR) rates were comparable to autologous therapies, with a notable safety advantage [11][12]. - The company is focusing on autoimmune diseases, particularly lupus nephritis (LN) and systemic lupus erythematosus (SLE), with plans to expand to other conditions like systemic sclerosis and ANCA vasculitis [19][21]. Market Potential and Unmet Needs - The market for autoimmune diseases is significant, with high unmet medical needs, particularly in conditions like lupus nephritis, where patients face severe long-term health risks [25]. - The company aims to provide a one-time therapy that could lead to complete responses, reducing the need for ongoing immunosuppressants [25]. Data Expectations and Patient Selection - Investors are looking for data from at least six patients with three months of follow-up to assess efficacy [27]. - The ideal patient profile includes younger individuals with recent diagnoses and minimal existing tissue damage [31]. Competitive Landscape - The cell therapy space is competitive, with many companies pivoting from oncology to autoimmune diseases based on promising academic data [33]. - Adicet Bio differentiates itself by offering off-the-shelf therapies that do not require leukapheresis or personalized manufacturing, which can complicate treatment [36][39]. Future Developments - The company is also exploring renal cell carcinoma (RCC) as a new target, leveraging its unique advantages in tissue targeting and safety [44][46]. - Data from RCC trials is expected in the second half of the year, with a focus on achieving better outcomes than existing therapies [49]. Financial Position - Adicet Bio has approximately $150 million in cash, which is expected to fund operations into the second half of the following year [52]. - The company is open to business development opportunities to enhance its pipeline and financial stability [52]. Regulatory Environment - Interactions with regulatory agencies have been positive, with a collaborative approach noted in discussions about innovative therapies [53][54]. - The company believes that therapies demonstrating significant patient benefits will receive favorable attention from regulators [54]. Conclusion - Adicet Bio is positioned to make significant advancements in both autoimmune and oncology sectors with its gamma delta CAR T cell therapies, addressing critical unmet needs while navigating a competitive landscape and regulatory challenges [56].

Financial Performance - The company reported a net loss of $28.2 million for the three months ended March 31, 2025, compared to a net loss of $28.0 million for the same period in 2024, representing a 1% increase in loss [139]. - Total operating expenses for the three months ended March 31, 2025, were $29.9 million, a decrease of $986,000, or 3%, compared to the same period in 2024 [139]. - General and administrative expenses increased by less than $0.1 million, or 1%, to $7.1 million for the three months ended March 31, 2025 [141]. - The company reported losses of $28.2 million for the three months ended March 31, 2025, with an accumulated deficit of $526.1 million as of the same date [150]. - Net cash used in operating activities was $25.4 million for the three months ended March 31, 2025, compared to $22.8 million for the same period in 2024 [158][159]. - The company incurred net cash used in investing activities of $2.9 million for the three months ended March 31, 2025, primarily due to purchases of short-term treasury securities and lab equipment [160]. Research and Development - Research and development expenses decreased by $1.1 million, or 5%, to $22.8 million for the three months ended March 31, 2025, primarily due to a decrease in expenses related to contract development and manufacturing organizations (CDMOs) [140]. - The company received FDA clearance for its IND application for ADI-001 in lupus nephritis in December 2023 and expanded its clinical development program to include additional autoimmune diseases in August 2024 [123]. - ADI-270, targeting CD70 for renal cell carcinoma (RCC), received FDA clearance for its IND application in June 2024 and Fast Track Designation in July 2024 [126]. - The company plans to file one new Investigational New Drug (IND) application every 12-18 months as part of its ongoing development strategy [122]. - The company has incurred significant losses and does not expect to generate substantial product revenue until regulatory approvals are obtained for its product candidates [152]. Capital and Funding - The company raised approximately $19.3 million in net proceeds through the JonesTrading ATM Program in January 2024 before transitioning to the Jefferies ATM Program [146]. - The company completed a public offering of 32,379,667 shares at a price of $2.40 per share, resulting in net proceeds of approximately $91.7 million after underwriting discounts and expenses [147]. - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $150.4 million, which is expected to cover operational needs for at least the next twelve months [148][151]. - The company anticipates needing to raise substantial additional capital to fund operations and product development in the foreseeable future [153]. Compliance and Regulations - The company received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, with a deadline to regain compliance by October 6, 2025 [164]. - The company is classified as a "smaller reporting company," allowing it to take advantage of reduced disclosure requirements [168]. Economic Factors - Inflation has generally affected the company by increasing labor, clinical trial, and manufacturing costs [175]. - The company does not believe that inflation had a material effect on its business, financial condition, or results of operations during the three months ended March 31, 2025 [175]. - The company intends to retain and continue using its equipment, furniture, fixtures, and office equipment, which mitigates the impact of inflation on operations [175]. - Foreign currency exchange rate fluctuations have not had a significant impact on the company's results of operations for any periods presented [174]. Cash Management - As of March 31, 2025, the company had $2.9 million of restricted cash held in cash collateral accounts following the termination of a loan agreement [127]. - The company has restricted cash of $2.9 million held in cash collateral accounts as of March 31, 2025 [149]. - The company's assets are primarily monetary, consisting of cash, cash equivalents, and short-term investments in treasury securities [175]. - The company incurs a majority of its general and administrative expenses and research and development costs in U.S. Dollars [174].

Financial Performance - Adicet Bio reported a net loss of $28.2 million for Q1 2025, or $0.31 per share, compared to a net loss of $28.0 million, or $0.35 per share, in Q1 2024[8][12] - Research and Development (R&D) expenses decreased to $22.8 million in Q1 2025 from $23.9 million in Q1 2024, primarily due to a $1.4 million reduction in expenses related to contract development manufacturing organizations[8][12] - Cash and cash equivalents were $150.4 million as of March 31, 2025, down from $176.3 million as of December 31, 2024, with expectations to fund operations into the second half of 2026[8][12] Clinical Trials and Development - Enrollment is ongoing for the Phase 1 clinical trial of ADI-001 in autoimmune diseases, with preliminary data expected in 2H 2025[3][7] - The Phase 1 clinical trial of ADI-270 in metastatic/advanced clear cell renal cell carcinoma (ccRCC) is also underway, with preliminary data anticipated in 2H 2025[7][8] - Adicet has received Fast Track Designation from the FDA for ADI-001 targeting refractory systemic lupus erythematosus and systemic sclerosis[3][8] - Adicet plans to initiate enrollment for additional autoimmune disease patients in the Phase 1 trial by Q3 2025[3][8] - The company aims to leverage its allogeneic gamma delta CAR T cell therapy platform, identifying two promising programs targeting PSMA and autoimmune diseases[2][3] - Adicet will present preclinical data for ADI-270 at the ASGCT Annual Meeting in May 2025, highlighting its anti-tumor activity[7][8] Leadership Changes - The company appointed Michael Grissinger to its Board of Directors, bringing over 40 years of experience in biopharmaceutical business development and strategy[5]

Financial Performance - The company has incurred a net loss of $117.1 million for the year ended December 31, 2024, with an accumulated deficit of $497.9 million as of the same date[208]. - As of December 31, 2024, the company has $176.3 million in cash, cash equivalents, restricted cash, and short-term investments, which is expected to sustain operations into the second half of 2026[277]. - The company anticipates needing substantial additional financing to develop product candidates and implement operating plans, particularly for clinical trials and commercial production[276]. - The company has federal net operating loss carryforwards of approximately $339.9 million as of December 31, 2024, which may be limited by potential ownership changes[352]. Clinical Development and Regulatory Approval - The company plans to report preliminary clinical data for ADI-001 in lupus nephritis (LN) in the first half of 2025 and for other autoimmune diseases in the second half of 2025[211]. - The company received FDA clearance for its IND application for ADI-270 in renal cell carcinoma (RCC) in June 2024 and dosed its first patient in December 2024[211]. - The company received FDA clearance for IND applications for ADI-001 in December 2023 and for additional indications in 2024, with plans to file new INDs every 12-18 months[232]. - The FDA has indicated that companion diagnostics may be required for the approval of product candidates, which could materially impair revenue generation if not obtained[224]. - The FDA's guidance suggests that if a companion diagnostic is essential for a therapeutic product, approval of the therapeutic product may be contingent on the companion diagnostic being approved[225]. - The company anticipates challenges in demonstrating the safety and efficacy of its product candidates to regulatory authorities[397]. - The regulatory approval process for the company's novel product candidates may be more complex and expensive than for established therapies[217]. - The company may seek orphan drug designation for its product candidates, which could provide market exclusivity but is subject to regulatory uncertainties[398]. - The FDA may require post-marketing studies for products receiving accelerated approval, which could impact the timeline for commercialization[396]. - The company has received fast track designation for ADI-001 for the treatment of LN and for ADI-270 in metastatic/advanced clear cell RCC[401]. Research and Development Challenges - The company expects to incur significant expenditures for research and development related to its gamma delta T cell platform, including ADI-001 and ADI-270[209]. - The company faces significant challenges in developing its gamma delta T cell product candidates, including potential negative results from clinical trials and manufacturing difficulties[214]. - Clinical trials are costly and time-consuming, with a high attrition rate; many product candidates fail to demonstrate safety and efficacy[228][229]. - Clinical trials for gamma delta T cell product candidates are expected to incur significantly higher costs than conventional therapies due to extensive R&D and manufacturing requirements[244]. - The company anticipates challenges in manufacturing and processing product candidates at a commercial scale, which could affect inventory creation and cost[368]. - The company has not yet estimated the cost of commercial manufacturing, which could adversely impact the viability of its product candidates[369]. Market and Competitive Landscape - The company faces significant competition from other biotechnology and pharmaceutical companies, which may impact its market position[259]. - The potential target populations for the company's product candidates may be small, limiting the opportunity for profitability[253]. - The company is in the early stages of developing its allogeneic gamma delta T cell therapy, and there is no assurance that it will successfully demonstrate efficacy and safety[216]. Operational Risks and Dependencies - The company has no products approved for commercial sale and has not generated any revenue from product sales to date[208]. - The company currently has no marketing and sales organization and lacks experience in marketing products, which may hinder revenue generation[256]. - The company relies on third-party suppliers for manufacturing, which increases the risk of delays and insufficient product quantities[263]. - The company is highly dependent on key personnel, and the loss of any executive officers or key employees could delay product development[271]. - The company conducts operations in a competitive market for skilled personnel, which may limit its ability to hire and retain qualified staff[272]. - The company relies on independent organizations and consultants for critical operational functions, which may not always be available or effective[281]. Regulatory and Compliance Issues - The company is subject to regulatory changes in China that could impact the development and commercialization of its product candidates, particularly regarding human genetic resources[286]. - The 2024 Negative List in China prohibits foreign investment in certain technologies, which may affect the company's research and development activities[290]. - The company may face compliance risks under the Human Genetic Resources Regulation, which restricts the collection and export of genetic resources by foreign entities[308]. - The evolving interpretation and enforcement of laws and regulations in China could increase operational costs and affect the company's ability to provide services[309]. - Compliance with the FCPA and similar anti-bribery laws may limit the company's ability to compete in foreign markets, potentially leading to material adverse effects on its business and reputation[311]. - The company is subject to extensive healthcare regulations, and violations could result in substantial penalties, impacting clinical research and sales programs[322]. Internal Control and Financial Reporting - The company is required to maintain effective internal control over financial reporting, with potential material weaknesses leading to financial statement restatements[343]. - The company must assess its internal controls annually and disclose changes quarterly, which can be costly and challenging[344]. - As of December 31, 2024, the company identified a material weakness in internal control over financial reporting related to cash disbursements, which was not adequately designed to prevent unauthorized cash disbursements[349]. - The company may incur additional costs in efforts to improve internal control processes, with no assurance of success in avoiding future material weaknesses[347]. Strategic Partnerships and Collaborations - Regeneron has provided a non-refundable upfront payment of $25.0 million and an additional $20.0 million for research funding as of December 31, 2024, under the collaboration agreement[355]. - If the collaboration with Regeneron is terminated, the company may face significant delays in development and commercialization efforts, potentially harming its financial condition[355]. - The company may face challenges in maintaining collaborations with other companies, which are crucial for its business operations[358]. - The company may need to seek additional funding or collaborations if existing agreements do not yield expected results, impacting its development and commercialization efforts[360]. Data Protection and Cybersecurity - The company is subject to cybersecurity threats that could disrupt operations and result in significant costs if data is lost or compromised[376]. - The company must implement new safeguards for data transfers outside the EEA or UK, which will require significant effort and cost[331]. - The company may face potential fines of up to €20 million or 4% of global annual revenues for non-compliance with GDPR or UK GDPR regulations[332]. - The UK GDPR may lead to additional compliance costs and legal risks, with potential penalties of up to £17.5 million or 4% of worldwide revenue for violations[330]. Economic and Market Conditions - Inflation and rising interest rates have decreased the trading value of government securities, posing risks to financial stability[339]. - The company may face adverse impacts from liquidity issues in the financial services industry, as seen with the closure of Silicon Valley Bank in March 2023[338]. - Changes in political and economic policies between China and the United States may adversely affect the company's business, financial condition, and results of operations[318].

Financial Performance - Net loss for Q4 2024 was $28.7 million, or $0.32 per share, compared to a net loss of $29.5 million, or $0.69 per share in Q4 2023[10] - The net loss for the full year 2024 was $117.1 million, or $1.33 per share, compared to a net loss of $142.7 million, or $3.31 per share in 2023[10] Research and Development Expenses - R&D expenses for Q4 2024 were $23.3 million, a decrease of 6.0% from $24.8 million in Q4 2023[10] - For the full year 2024, R&D expenses totaled $99.3 million, down from $106.0 million in 2023, a decrease of 6.3%[10] General and Administrative Expenses - G&A expenses for Q4 2024 were $7.5 million, an increase of 9.7% from $6.8 million in Q4 2023[10] - Full year 2024 G&A expenses were $28.3 million, an increase of 6.8% from $26.5 million in 2023[10] Cash Position - Total cash, cash equivalents, and short-term investments were $176.3 million as of December 31, 2024, up from $159.7 million as of December 31, 2023[10] Clinical Trials and Designations - The company expects to report preliminary clinical data from the ADI-001 trial in lupus nephritis in 1H25 and additional data in 2H25[2] - Patient enrollment for ADI-001 in systemic lupus erythematosus and other autoimmune diseases is expected to begin in 2Q25[2] - Adicet received FDA Fast Track Designation for ADI-001 for treating refractory systemic lupus erythematosus and systemic sclerosis in February 2025[6]

Financial Performance - The net loss for the three months ended September 30, 2024, was $30.478 million, a decrease of $19.407 million or 39% from a net loss of $49.885 million in the same period of 2023[118]. - The net loss for the nine months ended September 30, 2024, was $88.4 million, a decrease of $24.8 million, or 22%, compared to a net loss of $113.2 million for the same period in 2023[123]. - The company reported total operating expenses of $33.153 million for the three months ended September 30, 2024, a decrease of $19.109 million or 37% compared to $52.262 million in the same period of 2023[118]. - Total operating expenses decreased by $23.6 million, or 20%, to $96.9 million for the nine months ended September 30, 2024, compared to $120.5 million for the same period in 2023[123]. Research and Development - Research and development expenses were $26.253 million for the three months ended September 30, 2024, showing a slight increase of $0.086 million or 0% from $26.167 million in the same period of 2023[118]. - Research and development expenses decreased by $5.2 million, or 7%, to $76.1 million, primarily due to a $6.4 million decrease in expenses related to CDMOs and other externally conducted research[124]. - The company received FDA clearance for IND applications for ADI-001 in lupus nephritis in December 2023 and expanded the program to include additional autoimmune diseases in August 2024[101]. - ADI-270 received FDA clearance for its IND application in renal cell carcinoma in June 2024, with plans to initiate a Phase 1 clinical trial in Q4 2024[104]. - The company plans to file one new Investigational New Drug (IND) application every 12-18 months as part of its development strategy[100]. - The company initiated research and development activities in China in May 2024 through contractual agreements with local entities[105]. Income and Expenses - Interest income increased by $0.210 million or 8% to $2.730 million for the three months ended September 30, 2024, compared to $2.520 million in the same period of 2023[118]. - Interest income increased by $0.4 million, or 6%, to $8.6 million, attributed to higher cash balances and interest rates[126]. - General and administrative expenses increased by $0.267 million or 4% to $6.900 million for the three months ended September 30, 2024, compared to $6.633 million in the same period of 2023[118]. - General and administrative expenses increased by $1.1 million, or 6%, to $20.8 million, driven by a $1.4 million increase in stock-based compensation[125]. - Other expense, net decreased by $0.3 million, or 65%, to $0.2 million, due to a decrease in franchise taxes and realized losses related to foreign exchange rates[127]. Cash Flow and Liquidity - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling $202.1 million, expected to fund operations for at least the next twelve months[131]. - The company raised approximately $91.7 million from an underwritten public offering of 32,379,667 shares at a public offering price of $2.40 per share[130]. - The company recorded a net cash used in operating activities of $68.3 million for the nine months ended September 30, 2024, compared to $70.2 million for the same period in 2023[144]. - Net cash used in operating activities was $68.0 million for the nine months ended September 30, 2024, compared to $70.2 million for the same period in 2023, reflecting a decrease of approximately 3.1%[145][146]. - Net cash used in investing activities increased significantly to $97.5 million for the nine months ended September 30, 2024, from $4.3 million in the same period of 2023, primarily due to $96.6 million in purchases of short-term treasury securities[147][148]. - Net cash provided by financing activities was $111.2 million for the nine months ended September 30, 2024, a substantial increase from $0.2 million in the same period of 2023, driven by net proceeds from the issuance of common stock[149][150]. - The company reported a non-cash adjustment of $26.2 million in operating activities for the nine months ended September 30, 2024, which included stock-based compensation expense of $18.5 million[145]. - The company experienced a net decrease in operating assets and liabilities of $5.5 million for the nine months ended September 30, 2024, primarily due to a decrease in accrued liabilities[145]. Future Outlook and Strategic Position - The company anticipates needing substantial additional capital to fund ongoing operations and product development in the foreseeable future[139]. - The company remains a "smaller reporting company," allowing it to take advantage of reduced disclosure requirements[156]. - The company does not believe that inflation had a material effect on its business, financial condition, or results of operations during the three and nine months ended September 30, 2024[163]. - The company has not experienced significant impacts from foreign currency exchange rate fluctuations on its results of operations to date[161].

Financial Performance - As of September 30, 2024, Adicet reported a strong cash position of $202.1 million, up from $159.7 million as of December 31, 2023, sufficient to fund operations into the second half of 2026[1][9]. - The net loss for Q3 2024 was $30.5 million, or $0.34 per share, significantly improved from a net loss of $49.9 million, or $1.16 per share, in Q3 2023[8][14]. - Total operating expenses decreased to $33.2 million in Q3 2024 from $52.3 million in Q3 2023, reflecting a reduction in goodwill impairment expenses[14]. Research and Development - Research and Development (R&D) expenses for Q3 2024 were $26.3 million, a slight increase from $26.2 million in Q3 2023, primarily due to higher laboratory and personnel expenses[7][14]. - Adicet expanded the ADI-001 Phase 1 clinical trial to include six autoimmune disease indications, with preliminary clinical data in lupus nephritis expected in 1H25[1][2]. - Adicet plans to initiate enrollment for patients with systemic lupus erythematosus, systemic sclerosis, idiopathic inflammatory myopathy, and stiff person syndrome in 1Q25[2][4]. - Adicet presented clinical biomarker data for ADI-001 at the 9th Annual CAR-TCR Summit, demonstrating significant B cell depletion and CAR T cell activation[4]. General and Administrative Expenses - General and Administrative (G&A) expenses rose to $6.9 million in Q3 2024 from $6.6 million in Q3 2023, mainly due to increased payroll costs[8][14]. Regulatory and Corporate Developments - The FDA granted Fast Track Designation for ADI-270 for the treatment of metastatic/advanced clear cell renal cell carcinoma[6]. - The company appointed Dr. Lloyd Klickstein to its Board of Directors, bringing extensive experience in biopharmaceuticals and immunology[6].

Financial Performance - The company reported a net loss of $29.9 million for the three months ended June 30, 2024, compared to a net loss of $32.4 million for the same period in 2023, representing an 8% decrease in loss [118]. - Total operating expenses decreased by 6% to $32.8 million in Q2 2024 from $34.9 million in Q2 2023 [118]. - The net loss for the three months ended June 30, 2024, was $29.9 million, with an accumulated deficit of $438.7 million as of the same date [137]. - Total operating expenses for the six months ended June 30, 2024, were $63.7 million, a decrease of $4.5 million, or 7%, compared to $68.2 million for the same period in 2023 [125]. - The company expects to continue incurring significant losses as it develops and seeks regulatory approvals for its product candidates [138]. - Net cash used in operating activities was $46.3 million for the six months ended June 30, 2024, compared to $49.0 million for the same period in 2023, reflecting a decrease of 5.5% [147][148]. - The company experienced a net decrease in cash and cash equivalents of $64.4 million for the six months ended June 30, 2024, compared to a decrease of $52.2 million in 2023 [145]. Research and Development - Research and development expenses decreased by 9% to $25.9 million in Q2 2024 from $28.4 million in Q2 2023 [118]. - The company plans to file one new Investigational New Drug (IND) application every 12-18 months, continuing to develop product candidates in autoimmune diseases and cancer [101]. - ADI-001 has a substantial market opportunity with over 1.7 million patients in the U.S., EU5, China, and Japan suffering from B cell mediated autoimmune diseases [102]. - The company received FDA clearance for its IND applications for ADI-001 in lupus nephritis and expanded clinical development to include systemic lupus erythematosus, systemic sclerosis, and anti-neutrophil cytoplasmic autoantibody associated vasculitis [102]. - ADI-270 received FDA Fast Track Designation for the potential treatment of metastatic/advanced clear cell renal cell carcinoma, with a Phase 1 trial planned to start in Q4 2024 [106]. - Research and development expenses for the six months ended June 30, 2024, decreased by $5.3 million, or 10%, to $49.8 million compared to $55.1 million for the same period in 2023 [127]. Cash and Financing Activities - Cash and cash equivalents as of June 30, 2024, were $224.1 million, expected to be sufficient for at least the next twelve months [133]. - The company raised approximately $91.7 million from a public offering of 32,379,667 shares at a price of $2.40 per share [131]. - Net cash provided by financing activities was $111.2 million for the six months ended June 30, 2024, a substantial increase from $0.2 million in 2023 [150]. - Cash used in operating activities included non-cash adjustments of $16.5 million in 2024, up from $13.9 million in 2023, indicating an increase of 18.6% [147][148]. - Net cash used in investing activities was $0.5 million for the six months ended June 30, 2024, a significant decrease from $3.4 million in 2023, representing an 85.3% reduction [149]. Interest Income and Expenses - Interest income increased by 15% to $3.0 million in Q2 2024 compared to $2.6 million in Q2 2023 [118]. - Interest income for the six months ended June 30, 2024, increased by $0.6 million, or 12%, to $5.9 million compared to the same period in 2023 [129]. - Interest income increased by $0.4 million, or 15%, to $3.1 million for the three months ended June 30, 2024, due to higher interest rates and investments in treasury securities [122]. General and Administrative Expenses - General and administrative expenses increased by $0.4 million, or 6%, to $7.1 million for the three months ended June 30, 2024, primarily due to an increase in stock-based compensation [121]. Other Financial Metrics - The company’s operating lease liability decreased by $1.8 million in 2024, compared to an increase of $1.6 million in 2023, indicating a shift in lease management [147][148]. - The company is classified as a "smaller reporting company," allowing it to take advantage of reduced disclosure requirements [156]. - The company does not believe that inflation had a material effect on its business, financial condition, or results of operations during the six months ended June 30, 2024 [161].