Core Insights - CG Oncology announced positive topline data from the Phase 3 BOND-003 trial for cretostimogene in high-risk Non-Muscle Invasive Bladder Cancer (NMIBC), showing a 74.5% complete response rate among patients [1][2][3] - The median duration of response exceeds 27 months, with 63.5% of patients remaining in response at 12 months and 56.6% at 24 months [2][3] - The treatment demonstrated favorable safety, with no Grade 3 or greater treatment-related adverse events reported [2][3] Company Overview - CG Oncology is focused on developing and commercializing innovative therapies for bladder cancer, aiming to improve patient outcomes and quality of life [9] - The company has received FDA Fast Track and Breakthrough Therapy Designations for cretostimogene in December 2023 [5] - Cretostimogene is an investigational oncolytic immunotherapy that has been studied in over 250 patients with NMIBC [8] Clinical Trial Details - The BOND-003 trial is a single-arm, Phase 3 study involving 112 patients with high-risk BCG-unresponsive NMIBC [4] - The primary endpoint is the complete response rate, while the duration of response is a secondary endpoint [4] - The trial population includes patients with prior treatments, indicating a highly pre-treated cohort [4] Market Context - Bladder cancer is a significant health concern, with over 83,000 estimated diagnoses in 2024, and NMIBC accounts for approximately 75% of these cases [7] - There is a critical need for new treatment options in bladder cancer, highlighting the potential impact of cretostimogene if approved [2][3]

Financial Performance - For the three months ended September 30, 2024, the company reported a net loss of approximately $(1.2) million and total revenue of approximately $42.2 million, compared to a net income of $0.2 million and total revenue of $42.9 million for the same period in 2023[70]. - For the nine months ended September 30, 2024, total revenue was approximately $124.3 million, a slight decrease from $126.7 million for the same period in 2023[76]. - The company reported a net loss of $(3.5) million for the nine months ended September 30, 2024, compared to a net income of $1.4 million for the same period in 2023[76]. - Net income (loss) for the three months ended September 30, 2024, was $(1.150) million, a decline of 572.5% from a profit of $243 million in 2023[84]. - EBITDA for the three months ended September 30, 2024, was $0.4 million, down from $1.6 million for the same period in 2023[76]. Revenue Breakdown - Commission revenue for the three months ended September 30, 2024, was $34.780 million, a decrease of 1.9% from $35.469 million in 2023[88]. - Advisory fees increased by 14.7% to $6.247 million for the three months ended September 30, 2024, compared to $5.448 million in 2023[84]. - Advisory fees increased by approximately 14.7% and 11.7% for the three and nine-month periods ended September 30, 2024, respectively, compared to the same periods in 2023[92]. Assets and Brokerage - Total advisory and brokerage assets served were $26.9 billion at September 30, 2024, an increase of approximately 17.99% from $22.8 billion at September 30, 2023[71]. - Brokerage assets as of September 30, 2024, increased to $24.5 billion from $20.8 billion in 2023[89]. - Trail-eligible assets increased to $17.0 billion as of September 30, 2024, compared to $14.0 billion in 2023[89]. - The company experienced net new brokerage assets of $0.4 billion for the three months ended September 30, 2024, compared to $0.5 billion for the same period in 2023[71]. - Total net new assets for the nine months ended September 30, 2024, were $(1.8) billion, an improvement from $(3.2) billion for the same period in 2023[76]. Expenses and Compensation - Employee compensation and benefits increased by 27.5% to $3.937 million for the three months ended September 30, 2024, compared to $3.088 million in 2023[84]. - Total expenses for the three months ended September 30, 2024, were $42.810 million, a slight decrease of 0.1% from $42.849 million in 2023[84]. - Interest and other income decreased by 40.3% to $1.170 million for the three months ended September 30, 2024, compared to $1.933 million in 2023[84]. - Professional fees increased by $0.4 million and $3.6 million for the three and nine-month periods ended September 30, 2024, respectively, related to transaction costs associated with the Business Combination[102]. Financing and Debt - The Company entered into a Subscription Agreement for the purchase of 1,500,000 shares of Series A Redeemable Convertible Preferred Stock at $9.60 per share, totaling $14.4 million[113]. - The Holdings Series B Convertible Preferred Stock was sold at $10.00 per share for an aggregate purchase price of $1.5 million, with a cumulative dividend rate of 7% per annum[115]. - As of September 30, 2024, the Company had $19.1 million outstanding under its Senior Credit Facility with Oak Street Funding, LLC[111]. - The new promissory notes issued in connection with the Business Combination have a maturity date of May 15, 2027, and carry an interest rate of Prime plus 1.00%, but no less than 7.50% per annum[116]. - The company paid approximately $3.5 million on promissory notes in connection with the Business Combination, with noteholders forgiving approximately $3.8 million in accrued but unpaid interest[116]. Cash Flow - Net cash used in operating activities for the nine-month period ended September 30, 2024, was $2.4 million, a decrease of approximately $2.7 million or 766% compared to the same period in 2023[119]. - Net cash provided by financing activities was approximately $2.0 million for the nine-month period ended September 30, 2024, compared to cash used of approximately $1.9 million in the same period in 2023[119]. - Net cash used in investing activities was $0.02 million for the nine-month period ended September 30, 2024, compared to $0.1 million in the same period in 2023[119]. Company Operations - The company completed a merger on March 15, 2024, which involved the acquisition of Binah Management Services, enhancing its operational capabilities[66]. - The company has over 1,900 registered individuals working within its financial services entities, indicating a robust operational scale[65]. - The payout rate for financial advisors decreased to 82.42% for the three-month period and 83.26% for the nine-month period ended September 30, 2024, compared to 87.65% and 86.23% in 2023[99]. Economic Context - The U.S. economy grew at an annualized pace of 2.8% in the third quarter of 2024, with the unemployment rate averaging 4.1%[82].

Financial Performance - For the three months ended June 30, 2024, total revenue was approximately $40.6 million, compared to $40.4 million for the same period in 2023, reflecting a slight increase of 0.5%[111] - The net loss for the three months ended June 30, 2024, was approximately $(0.7) million, compared to a net income of $0.1 million for the same period in 2023[111] - Gross profit for the three months ended June 30, 2024, was $7.3 million, a decrease of 3% from $7.5 million for the same period in 2023[115] - EBITDA for the three months ended June 30, 2024, was $0.6 million, down from $2.2 million for the same period in 2023[120] - Total expenses for the three months ended June 30, 2024, increased by 2.8% to $41.171 million from $40.062 million in the same period of 2023[129] - Net income for the three months ended June 30, 2024, was a loss of $736,000, compared to a profit of $131,000 in the same period of 2023, representing a decline of 601.4%[129] - The company reported a 64.2% decrease in interest and other income for the three months ended June 30, 2024, totaling $665,000 compared to $1.857 million in the same period of 2023[129] Asset Management - Total advisory and brokerage assets served were $25.1 billion at June 30, 2024, an increase of approximately 8.7% from $23.1 billion at June 30, 2023[112] - Brokerage assets as of June 30, 2024, were $22.8 billion, up from $21.1 billion as of June 30, 2023[134] - Trail-eligible assets increased to $16.3 billion as of June 30, 2024, compared to $14.2 billion as of June 30, 2023[134] - Net new brokerage assets were $(0.8) billion for the three months ended June 30, 2024, compared to $(0.7) billion for the same period in 2023[114] - Net new advisory assets were $0.0 billion for the three months ended June 30, 2024, compared to $(0.3) billion for the same period in 2023[113] - Total net new assets for the three months ended June 30, 2024, were $(0.8) billion, compared to $(1.0) billion for the same period in 2023[120] Revenue Breakdown - Commission revenue for the three months ended June 30, 2024, was $33.663 million, a 1% increase from $33.322 million in the same period of 2023[133] - Advisory fees rose by 20.2% to $6.320 million for the three months ended June 30, 2024, compared to $5.259 million in the same period of 2023[129] - Advisory fees increased by approximately 20.2% and 10.3% for the three and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023[138] Expenses and Liabilities - Employee compensation and benefits increased by approximately 9% for the three-month period and 4% for the six-month period ended June 30, 2024, compared to the same periods in 2023[144] - Rent and occupancy expenses decreased by approximately 7% for the three-month period and 5% for the six-month period ended June 30, 2024, compared to the same periods in 2023[146] - Interest expense decreased by $0.7 million and $0.8 million for the three and six-month periods ended June 30, 2024, respectively, compared to 2023[149] - Total contractual obligations as of June 30, 2024, amounted to $39.1 million, including long-term debt obligations of $20.3 million and interest payments of $8.8 million[174] Corporate Actions - The Company completed a merger on March 15, 2024, with Kingswood Acquisition Corp, resulting in Wentworth becoming a wholly-owned subsidiary of Binah Capital[106] - Binah Capital entered into a Subscription Agreement for the purchase of 1,500,000 shares of Series A Redeemable Convertible Preferred Stock at $9.60 per share, totaling $14.4 million[109] - The Holdings Series A Stock carries a cumulative dividend of 9% per annum, payable quarterly[160] - The minimum payments and maturities of the Oak Street notes as of June 30, 2024, total $20.3 million[158] Cash Flow - Net cash used in operating activities was $2.1 million for the six-month period ended June 30, 2024, a decrease of approximately $2.3 million compared to net cash provided of $0.2 million for the same period in 2023[171] - Net cash used in investing activities was $0.0 million for the six-month period ended June 30, 2024, compared to $0.1 million for the same period in 2023, primarily due to reduced purchases of property and equipment[172] - Net cash provided by financing activities was approximately $1.3 million for the six-month period ended June 30, 2024, compared to cash used of approximately $1.3 million for the same period in 2023, mainly due to proceeds from Redeemable Convertible Preferred Financing[173] Tax and Valuation - The effective income tax rate was (29.0)% and (15.2)% for the three and six-month periods ended June 30, 2024, compared to 187.8% and 44.2% for the same periods in 2023[152] - The estimated fair value of reporting units was 257% and 266% greater than their carrying value in the annual impairment tests for 2023 and 2022, respectively[180]

Financial Performance - For the period ended March 31, 2024, Binah Capital reported a net loss of approximately $1.6 million and total revenue of approximately $41.0 million, compared to a net income of $1.1 million and total revenue of approximately $43.0 million for the same period in 2023[117]. - Total revenues for the period ended March 31, 2024, were $41,449,000, a decrease of 4.5% compared to $43,385,000 in 2023[131]. - Gross profit for the period ended March 31, 2024, was $7.0 million, a decrease of 12.5% from $8.0 million for the same period in 2023[125]. - EBITDA for the period ended March 31, 2024, was $(0.0) million, compared to $2.8 million for the same period in 2023[126]. - Net income (loss) for the period ended March 31, 2024, was $(1,536,000), a decrease of 243.3% compared to net income of $1,072,000 in 2023[131]. Assets and Liabilities - Total advisory and brokerage assets served were $24.9 billion at March 31, 2024, an increase from $22.8 billion at March 31, 2023[117]. - The company experienced net new assets of $(1.5) billion for the period ended March 31, 2024, compared to $(1.1) billion for the same period in 2023[118]. - Brokerage assets increased to $22.7 billion for the period ended March 31, 2024, compared to $20.6 billion in 2023[137]. - Trail-eligible assets included in brokerage assets were $14.8 billion for the period ended March 31, 2024, up from $14.4 billion in 2023[137]. - The total contractual obligations as of March 31, 2024, amounted to $38.83 million, including long-term debt obligations of $20.89 million and interest payments of $8.11 million[176]. Revenue Breakdown - Commission revenue decreased by 2.6% to $34,395,000 for the period ended March 31, 2024, down from $35,321,000 in 2023[136]. - Sales-based commission revenue increased by 3.2% to $15,767,000, while trailing commission revenue decreased by 7.0% to $18,628,000[136]. - Advisory fees increased by approximately 3% for the period ended March 31, 2024, due to positive market returns offset by outflows of advisory assets[141]. Expenses - Total expenses for the period ended March 31, 2024, were $42,846,000, an increase of 1.9% compared to $42,028,000 in 2023[131]. - Professional fees increased by $3.5 million for the period ended March 31, 2024, due to transaction costs associated with a Business Combination[150]. Financing Activities - The Company reported a net cash used in operating activities of $3.1 million for the period ended March 31, 2024, a decrease of approximately $3.5 million or 921% compared to a net cash provided of $0.4 million for the same period in 2023[172]. - The net cash provided by financing activities was approximately $1.7 million for the period ended March 31, 2024, compared to cash used of approximately $0.8 million for the same period in 2023[174]. - As of March 31, 2024, the outstanding balance under the Senior Credit Facility with Oak Street Funding, LLC was $20.2 million, with a prime interest rate of 8.50% plus 2.25%[159]. Corporate Actions - The company completed a merger on March 15, 2024, resulting in Wentworth becoming a wholly-owned subsidiary of Binah Capital[112]. - Binah Capital entered into a Subscription Agreement for the purchase of 1,500,000 shares of Series A Redeemable Convertible Preferred Stock at $9.60 per share, totaling $14.4 million[115]. - The Holdings Series A Stock carries a cumulative dividend rate of 9% per annum, payable quarterly[163]. Market Conditions - The U.S. economy grew at an annualized pace of 1.6% in Q1 2024, with the unemployment rate averaging 3.8%[128]. - The S&P 500 returned 10.6% during the first quarter of 2024, reflecting a rebound in equity markets[129]. Tax and Compliance - The effective income tax rate decreased to (7.0)% for the period ended March 31, 2024, compared to 21.0% in 2023, related to transaction expenses from the Reverse Recapitalization[156]. - The Company was in compliance with all financial-related covenants as of March 31, 2024[161]. Risk and Accounting - No material changes in market risk were reported compared to the Annual Report for the fiscal year ended December 31, 2023[189]. - The Company will accrue the most likely amount of potential losses when a loss is probable and can be estimated[186]. - Recent accounting pronouncements or changes that may be significant are discussed in the notes to the consolidated financial statements[187].

Financial Performance - For the year ended December 31, 2023, the company reported a net income of approximately $571,000 and total revenue of approximately $168.0 million, a decrease from net income of $910,331 and total revenue of approximately $178.0 million for 2022[162]. - Gross profit for the year ended December 31, 2023, was $31.8 million, a decrease of 4% from $33.2 million in 2022[164]. - EBITDA for the year ended December 31, 2023, was $6.8 million, an increase from $6.3 million in 2022[168]. - Total expenses for the year ended December 31, 2023, were $167.5 million, down 5.6% from $177.4 million in 2022[176]. - Commission revenues decreased by 7.4% to $138.2 million in 2023 from $149.3 million in 2022[175]. - Advisory fees also declined by 6.2% to $21.7 million in 2023 from $23.1 million in 2022[175]. - Total commission revenue for the year ended December 31, 2023, was $159.9 million, down from $172.4 million in 2022, representing a decrease of $12.5 million or 7.3%[181]. Asset Management - Total advisory and brokerage assets served were $23.9 billion at December 31, 2023, up from $22.2 billion at December 31, 2022[163]. - The company experienced net new assets of $(3.6) billion for the year ended December 31, 2023, compared to $1.6 billion for the same period in 2022[169]. - The company maintained brokerage assets of $21.8 billion at December 31, 2023, an increase of 8% from $20.1 billion at December 31, 2022[169]. - Brokerage assets increased to $21.8 billion as of December 31, 2023, from $20.1 billion at the beginning of the period, with a net new brokerage asset decrease of $3.1 million[183]. - Advisory assets decreased to $2.087 billion as of December 31, 2023, from $2.129 billion in 2022, reflecting a decrease of approximately 2% due to net outflows[186]. Economic Context - The U.S. economy grew by 2.5% in 2023, with an unemployment rate averaging 3.7% in the fourth quarter[173]. Financial Obligations and Debt - As of December 31, 2023, the outstanding balance of the Oak Street note was $17.6 million, down from $19.5 million in 2022[204]. - The Company had $20.82 million outstanding under its Senior Credit Facility as of December 31, 2023[204]. - Total contractual obligations as of December 31, 2023, amounted to $45.3 million, including long-term debt obligations of $21.5 million and interest payments of $7.2 million[215]. - As of December 31, 2023, $20.8 million of outstanding debt was subject to floating interest rate risk, but short-term interest rate changes are not expected to materially impact net income[229]. Tax and Interest - The effective income tax rate decreased to (17.49)% for the year ended December 31, 2023, from 11.35% in 2022, attributed to changes in deferred adjustments[201]. - Interest expense increased by $1.8 million for the year ended December 31, 2023, due to an increase in the interest rate of the credit facility[198]. Cash Flow - Net cash provided by operating activities decreased by 52% to $2.5 million in 2023 from $5.3 million in 2022[212]. - Net cash used in investing activities decreased to $0.08 million in 2023 from $0.33 million in 2022, primarily due to reduced purchases of property and equipment[213]. - Net cash used in financing activities decreased to $2.7 million in 2023 from $4.5 million in 2022, mainly due to a reduction in capital distributions[214]. Employee Compensation - Employee compensation and benefits decreased by $0.8 million for the year ended December 31, 2023, due to a headcount reduction of approximately 6%[194]. - The payout rate for financial advisors increased to 77.96% for the year ended December 31, 2023, compared to 75.48% in 2022, an increase of 2.49%[193]. Risk Management - The company has a credit risk exposure primarily from receivables and cash equivalents, with an established allowance for uncollectible accounts to mitigate this risk[230]. - The estimated fair value of reporting units was 257% greater than their carrying value in 2023, indicating no impairment was necessary[221].