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GlycoMimetics(GLYC) - 2024 Q3 - Quarterly Report
GLYCGlycoMimetics(GLYC)2024-11-13 21:30

Financial Performance - For the three months ended September 30, 2024, total costs and expenses were 11,233,798,anincreasefrom11,233,798, an increase from 9,813,496 for the same period in 2023, representing a 14.4% increase[8]. - The net loss for the nine months ended September 30, 2024, was 30,656,406,comparedtoanetlossof30,656,406, compared to a net loss of 27,820,780 for the same period in 2023, indicating an increase of 10.3%[10]. - The company reported a net loss of 9,824,000forQ32024,whichisa79,824,000 for Q3 2024, which is a 7% increase from a net loss of 9,203,000 in Q3 2023[100]. - The company incurred a net loss of 30.7millionandhadnetcashflowsusedinoperatingactivitiesof30.7 million and had net cash flows used in operating activities of 27.4 million during the nine months ended September 30, 2024[16]. - Total costs and expenses for the nine months ended September 30, 2024, were 32.7million,comparedto32.7 million, compared to 29.7 million for the same period in 2023, reflecting an increase of 3.0million(103.0 million (10%) year-over-year[108]. Cash and Liquidity - The company reported cash and cash equivalents of 14,391,664 at the end of the period, down from 49,407,629atthesametimelastyear,adecreaseof70.949,407,629 at the same time last year, a decrease of 70.9%[10]. - As of September 30, 2024, the Company had 14.4 million in cash and cash equivalents and no committed source of additional funding[16]. - The company anticipates that its current cash and cash equivalents will fund operations until the Merger closes, but there are risks associated with this estimate[90]. - The company is facing substantial doubt about its ability to continue as a going concern beyond one year from the issuance of the financial statements[16]. - The company expects its current cash resources will only be sufficient to fund operations through the closing of the contemplated Merger and Private Placement[17]. Workforce and Restructuring - The company reduced its workforce by approximately 80% in July 2024 to conserve cash resources[12]. - During the three months ended September 30, 2024, the Company incurred severance charges of 5.0millioninconnectionwithacorporaterestructuring[24].−TheCompanyrecognizedrestructuringchargesrelatedtoreorganizationplans,whichincludeemployeeterminationbenefitsandcontractterminationcosts[22].−Thecompanyrecorded5.0 million in connection with a corporate restructuring[24]. - The Company recognized restructuring charges related to reorganization plans, which include employee termination benefits and contract termination costs[22]. - The company recorded 5.0 million in severance and related benefits charges during the three months ended September 30, 2024, due to a workforce reduction of approximately 80%[72]. Merger and Strategic Transactions - GlycoMimetics, Inc. entered into a merger agreement with Crescent Biopharma, Inc., expected to close in the second quarter of 2025, with Crescent stockholders owning approximately 86.2% of the combined company pre-merger[13]. - The merger is intended to qualify as a tax-free reorganization, with adjustments to the exchange ratio based on the company's net cash at closing[14]. - The company plans to merge with Crescent Biopharma, Inc., with the merger expected to close in the second quarter of 2025, subject to stockholder approval[13]. - The company expects to raise approximately 200millioninaprivateplacementimmediatelyfollowingthemerger[15].−Thecompanyplanstoinitiatestrategictransactionsifthemergerdoesnotclosebythesecondquarterof2025toraiseadditionalcapital[18].ResearchandDevelopment−ResearchanddevelopmentexpensesforthethreemonthsendedSeptember30,2024,were200 million in a private placement immediately following the merger[15]. - The company plans to initiate strategic transactions if the merger does not close by the second quarter of 2025 to raise additional capital[18]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were 1,715,347, down from 5,291,790inthesameperiodof2023,reflectingadecreaseof67.55,291,790 in the same period of 2023, reflecting a decrease of 67.5%[8]. - Research and development expenses for the nine months ended September 30, 2024, were 14,026,000, a decrease of 5% from 14,783,000inthesameperiodof2023[101].−ThePhase3trialofuproleselandidnotachieveastatisticallysignificantimprovementinoverallsurvivalcomparedtochemotherapyalone,leadingtoastrategicreviewofalternatives[82][83].−FollowingthePhase3trialresultsforuproleselan,thecompanydecidednottoconductanadditionalclinicaltrialduetoinsufficientcapitalresources[83].−ThecompanyiscollaboratingwithApollomicsforthedevelopmentofGMI−1687anduproleselaninGreaterChina,althoughGMI−1687isnotactivelybeingdeveloped[88].StockandEquity−Thecompanyhad15,136,298stockoptionsandRSUsoutstandingfortheninemonthsendedSeptember30,2024,comparedto10,971,874forthesameperiodin2023[38].−TheCompanyhas14,783,000 in the same period of 2023[101]. - The Phase 3 trial of uproleselan did not achieve a statistically significant improvement in overall survival compared to chemotherapy alone, leading to a strategic review of alternatives[82][83]. - Following the Phase 3 trial results for uproleselan, the company decided not to conduct an additional clinical trial due to insufficient capital resources[83]. - The company is collaborating with Apollomics for the development of GMI-1687 and uproleselan in Greater China, although GMI-1687 is not actively being developed[88]. Stock and Equity - The company had 15,136,298 stock options and RSUs outstanding for the nine months ended September 30, 2024, compared to 10,971,874 for the same period in 2023[38]. - The Company has 8,830,814 of total unrecognized compensation expense related to unvested options under the 2013 Plan, expected to be recognized over approximately 2.9 years[55]. - The total intrinsic value of options exercised during the nine months ended September 30, 2024, was 4,091,comparedto4,091, compared to 82,093 for the same period in 2023[55]. - The Company issued and sold 9,822,930 shares of common stock under the 2022 Sales Agreement at a weighted average price of 3.01,generatingnetproceedsof3.01, generating net proceeds of 28.7 million during the nine months ended September 30, 2023[50]. - The Company's board of directors approved an increase in total authorized shares of common stock from 100,000,000 to 150,000,000 shares[49].