Design Therapeutics(DSGN) - 2024 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $200.5 million as of June 30, 2024, with cash and cash equivalents totaling$261.0 million[65]. - The company has not generated any revenue from product sales to date[65]. - The company anticipates continued net losses and negative cash flows from operations for the foreseeable future, primarily funded through equity and debt financing[82]. - The company reported a net cash used in operating activities of $(23,699,000) for the six months ended June 30, 2024, an improvement from$(31,228,000) in the same period of 2023[86]. Research and Development - Research and development expenses for Q2 2024 were $10.516 million, a decrease of$6.548 million from $17.064 million in Q2 2023[77]. - Research and development expenses for the three months ended June 30, 2024, totaled$10,516,000, a decrease of 38.4% from $17,064,000 in the same period of 2023[78]. - Research and development expenses for the six months ended June 30, 2024, were$20,317,000, a decrease of 38.1% from $32,794,000 in the same period of 2023[80]. - The company aims to complete GLP studies for the new product candidate DT-216P2 by the end of 2024 and expects to initiate clinical trials in 2025[61]. - The company has received FDA clearance for the IND of DT-168 and plans to initiate Phase 1 development in 2024[62]. - In preclinical studies, the HD GeneTAC candidate molecules showed over 50$4.527 million, down by $1.005 million from$5.532 million in Q2 2023[77]. - Total operating expenses for Q2 2024 were $15.043 million, a reduction of$7.553 million compared to $22.596 million in Q2 2023[77]. - For the six months ended June 30, 2024, total operating expenses were$29,443,000, down 33.4% from $44,247,000 in the same period of 2023[79]. - General and administrative expenses for the six months ended June 30, 2024, were$9,126,000, down 20.3% from $11,453,000 in the same period of 2023[81]. Cash and Funding - As of June 30, 2024, the company had$261.0 million in cash, cash equivalents, and investment securities, a decrease of $20.8 million from$281.8 million at December 31, 2023[82]. - The company expects its existing cash and investments to be sufficient to fund planned operating expenses for more than the next 12 months[85]. - Future capital requirements will depend on various factors, including the scope and costs of clinical trials and the emergence of competing therapies[87]. - The company has not sold any shares under the $100.0 million ATM Program as of June 30, 2024, which is part of the$300.0 million shelf registration statement filed in April 2022[84]. Company Classification - The company remains classified as an emerging growth company until at least December 31, 2026, allowing it to rely on certain exemptions from public company reporting requirements[101]. - The company has irrevocably elected not to avail itself of the exemption from new or revised accounting standards, thus will adhere to the same standards as other public companies[102]. - The company will cease to be an emerging growth company upon reaching at least $1.235 billion in annual revenue or if certain market conditions are met[103].