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Geron(GERN) - 2024 Q3 - Quarterly Report
GERNGeron(GERN)2024-11-07 21:05
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Financial Performance - Total revenues for the nine months ended September 30, 2024, were 29,457,000,comparedto29,457,000, compared to 214,000 for the same period in 2023, representing a significant increase[6] - Product revenue for the nine months ended September 30, 2024, was 28,989,000,withroyaltiescontributing28,989,000, with royalties contributing 468,000[6] - The net loss for the nine months ended September 30, 2024, was 149,220,000,comparedtoanetlossof149,220,000, compared to a net loss of 132,154,000 for the same period in 2023[6] - Basic and diluted net loss per share for the nine months ended September 30, 2024, was (0.23),consistentwiththesameperiodin2023[6]−ComprehensivelossfortheninemonthsendedSeptember30,2024,was(0.23), consistent with the same period in 2023[6] - Comprehensive loss for the nine months ended September 30, 2024, was 148,387,000, compared to 132,885,000forthesameperiodin2023,indicatinganincreaseinlosses[8]AssetsandLiabilities−Totalcurrentassetsincreasedto132,885,000 for the same period in 2023, indicating an increase in losses[8] Assets and Liabilities - Total current assets increased to 398,057,000 as of September 30, 2024, up from 341,348,000attheendof2023,reflectingagrowthofapproximately16.6341,348,000 at the end of 2023, reflecting a growth of approximately 16.6%[4] - Total current liabilities rose to 137,933,000 as of September 30, 2024, compared to 108,070,000attheendof2023,indicatinganincreaseofabout27.6108,070,000 at the end of 2023, indicating an increase of about 27.6%[4] - Cash and cash equivalents decreased to 60,344,000 as of September 30, 2024, from 70,023,000attheendof2023,adeclineofapproximately9.570,023,000 at the end of 2023, a decline of approximately 9.5%[4] - The total stockholders' equity increased to 292,284,000 as of September 30, 2024, up from 247,949,000attheendof2023,representingagrowthofabout17.8247,949,000 at the end of 2023, representing a growth of about 17.8%[4] Expenses - Research and development expenses for the nine months ended September 30, 2024, totaled 80,305,000, down from 92,135,000intheprioryear,adecreaseofapproximately12.992,135,000 in the prior year, a decrease of approximately 12.9%[6] - Selling, general, and administrative expenses for the nine months ended September 30, 2024, were 102,361,000, compared to 47,734,000forthesameperiodin2023,reflectinganincreaseofabout114.547,734,000 for the same period in 2023, reflecting an increase of about 114.5%[6] - Stock-based compensation for employees and directors increased to 24,392 from 14,110,representinganincreaseofapproximately72.514,110, representing an increase of approximately 72.5%[12] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2024, was 174,673, compared to 126,805forthesameperiodin2023,indicatingasignificantincreaseofapproximately37.7126,805 for the same period in 2023, indicating a significant increase of approximately 37.7%[12] - Cash, cash equivalents, and restricted cash at the end of the period were 62,198, up from 31,245attheendofthepreviousperiod,reflectinganincreaseofapproximately99.531,245 at the end of the previous period, reflecting an increase of approximately 99.5%[12] - The company reported a net cash used in investing activities of 2,493 for the nine months ended September 30, 2024, compared to 227,891inthepreviousperiod,reflectingasignificantdecreaseofapproximately98.9227,891 in the previous period, reflecting a significant decrease of approximately 98.9%[12] Stock and Equity - As of March 31, 2024, Geron Corporation had 591,163,808 common shares outstanding, reflecting an increase from 508,731,846 shares as of March 31, 2023[10] - The total additional paid-in capital as of June 30, 2024, was 2,027,173,000, up from 1,799,841,000asofJune30,2023[10]−Thecompanyissued41,999,998sharesofcommonstockinconnectionwiththeexerciseofwarrants,raising1,799,841,000 as of June 30, 2023[10] - The company issued 41,999,998 shares of common stock in connection with the exercise of warrants, raising 141,000,000[9] Inventory and Product Revenue - Inventory decreased by 20,283duringtheninemonthsendedSeptember30,2024,withnopriorperioddataavailableforcomparison[12]−ThecompanybegancapitalizinginventoryrelatedtoRYTELOinthequarterendedJune30,2024,followingitsapprovalonJune6,2024[20]−AsofSeptember30,2024,netproductrevenuefromU.S.salesofRYTELOwas20,283 during the nine months ended September 30, 2024, with no prior period data available for comparison[12] - The company began capitalizing inventory related to RYTELO in the quarter ended June 30, 2024, following its approval on June 6, 2024[20] - As of September 30, 2024, net product revenue from U.S. sales of RYTELO was 28,209,000, with gross product revenue of 32,657,000,resultingintotalgross−to−netadjustmentsof32,657,000, resulting in total gross-to-net adjustments of 4,448,000[57] Debt and Financing - The outstanding principal amount under the Hercules Loan Agreement was 80.0millionasofSeptember30,2024,withanetcarryingvalueof80.0 million as of September 30, 2024, with a net carrying value of 83.8 million, which includes accrued end of term charges[77] - The interest rate on the Hercules Loan Agreement was set at 12.5% as of September 30, 2024, with an interest-only period extended through December 31, 2024[76] - Future minimum payments under the Hercules Loan Agreement total 92.50million,with92.50 million, with 2.55 million due in the remainder of 2024 and 89.95millionin2025[79]LegalandCompliance−Thecompanyhasnotestablishedanyreserveforpotentialliabilitiesrelatedtofuturelawsuits,whichcouldmateriallyimpactitsfinancialstatements[80]−GeronCorporationiscurrentlynotinvolvedinanymaterialpendinglegalproceedings,whichmayhelpinfocusingresourcesonbusinessactivities[80]MarketableSecurities−Thecompanyhasnotrecordedanyallowancesforcreditlossesonavailable−for−salesecuritiesforthethreeandninemonthsendedSeptember30,2024,indicatingnounrealizedlossesattributabletocreditfactors[64]−ThefairvalueofmarketablesecuritiesasofSeptember30,2024,was89.95 million in 2025[79] Legal and Compliance - The company has not established any reserve for potential liabilities related to future lawsuits, which could materially impact its financial statements[80] - Geron Corporation is currently not involved in any material pending legal proceedings, which may help in focusing resources on business activities[80] Marketable Securities - The company has not recorded any allowances for credit losses on available-for-sale securities for the three and nine months ended September 30, 2024, indicating no unrealized losses attributable to credit factors[64] - The fair value of marketable securities as of September 30, 2024, was 316,742,000, with gross unrealized losses of 1,010,000[60]AgreementsandCommitments−AsofSeptember30,2024,Geronhasnoncancelablecommercialpurchasecommitmentstotalingapproximately1,010,000[60] Agreements and Commitments - As of September 30, 2024, Geron has noncancelable commercial purchase commitments totaling approximately 62.4 million related to contract manufacturing agreements for RYTELO[84] - Geron entered into a revenue participation right purchase agreement with Royalty Pharma, receiving an upfront payment of $125.0 million in exchange for tiered revenue interest payments on RYTELO sales[97]