Cartesian Therapeutics(US:RNAC)2020-05-07 20:17Financial Performance - Total current assets decreased from $96,667,000 as of December 31, 2019, to $74,440,000 as of March 31, 2020, a decline of approximately 23%[18]. - Grant and collaboration revenue for Q1 2020 was $0, compared to $10,000 in Q1 2019, indicating a significant drop in revenue[20]. - Total operating expenses increased to $18,822,000 in Q1 2020, up from $11,866,000 in Q1 2019, representing a rise of approximately 58%[20]. - Net loss for Q1 2020 was $19,620,000, compared to a net loss of $12,074,000 in Q1 2019, reflecting an increase in losses of about 63%[20]. - The company reported a basic and diluted net loss per share of $0.21 for Q1 2020, compared to $0.31 for Q1 2019[20]. - The accumulated deficit grew to $355,373,000 as of March 31, 2020, from $335,753,000 as of December 31, 2019, an increase of approximately 6%[23]. - The company has not generated any product revenue to date and does not expect to do so in the foreseeable future, relying solely on collaboration and grant revenue[38]. - Management has indicated that substantial additional financing will be required to fund operations and continue executing its strategy, raising doubts about the company's ability to continue as a going concern within one year[39][40]. Cash and Assets - Cash, cash equivalents, and restricted cash at the end of Q1 2020 totaled $74,264,000, down from $91,551,000 at the beginning of the period, a decrease of approximately 19%[28]. - As of March 31, 2020, the company had cash, cash equivalents, and restricted cash totaling $74.3 million, with $1.7 million in restricted cash related to lease commitments[39]. - The company maintained approximately $0.3 million in Russian bank accounts, all held in U.S. dollars[54]. Liabilities and Debt - Total liabilities increased from $91,172,000 as of December 31, 2019, to $97,563,000 as of March 31, 2020, an increase of about 7%[18]. - The company has classified all amounts due under the 2017 Term Loan as current liabilities due to material adverse change clauses[42]. - The outstanding principal balance under the 2017 Term Loan was $16.1 million as of March 31, 2020, down from $18.2 million as of December 31, 2019[122]. - Total minimum debt payments on the 2017 Term Loan as of March 31, 2020, were $17.7 million, with $6.6 million due in 2020[123]. Research and Development - Research and development expenses surged to $14,724,000 in Q1 2020, compared to $7,353,000 in Q1 2019, marking an increase of approximately 100%[20]. - The company has devoted nearly all financial resources to developing its ImmTOR platform and conducting preclinical studies and clinical trials[38]. - Clinical trial expenses are a significant part of R&D costs, with accruals based on estimates of patient enrollment and other factors[76]. Stock and Equity - The company issued 598,977 shares of common stock through an at-the-market offering, generating $1,141,000 in additional paid-in capital[23]. - The Company had a total of 94,723,513 weighted-average common shares and pre-funded warrants outstanding for the three months ended March 31, 2020, compared to 38,447,319 for the same period in 2019[93]. - The total unrecognized compensation expense related to unvested employee stock options was $10.2 million, expected to be recognized over a weighted average period of 2.5 years[153]. - The Company issued 78,583 shares of common stock under the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2020[162]. Revenue Recognition - Revenue is recognized when control of promised goods or services is obtained, following a five-step model under ASC 606[67]. - The company generates revenue through grants, collaboration, and license agreements, with arrangements evaluated under ASC 808 and ASC 606[68]. - Milestone payments are evaluated for their relation to performance obligations, with revenue recognized based on the probability of achievement[72]. Strategic Collaborations - The company is actively exploring strategic collaborations to secure non-dilutive capital and accelerate the development of its product candidates[40]. - AskBio has agreed to pay an upfront fee of $7.0 million, with potential additional payments of up to $237.0 million in development, regulatory, and sales milestones[165]. - The Company and AskBio agreed to share research, development, and commercialization costs equally for collaboration products[206]. Accounting and Compliance - The company has assessed the impact of new accounting standards, including ASU 2019-12 and ASU 2016-13, on its consolidated financial statements and disclosures[90][89]. - The Company filed a registration statement with the SEC within the required timeframe, avoiding any pro-rata payments to investors[133]. COVID-19 Impact - The ongoing COVID-19 pandemic introduces significant uncertainty regarding the company's business operations and financial condition[41].