Curis(CRIS) - 2024 Q3 - Quarterly Report

Financial Performance - As of September 30, 2024, the company had an accumulated deficit of $1.2 billion and incurred a net loss of$33.8 million for the nine months ended September 30, 2024[90]. - Revenues, net increased by $0.1 million, or 3$30.3 million for the nine months ended September 30, 2024, compared to $28.2 million for the same period in 2023, reflecting a$2.1 million increase due to timing of payments[127]. - Cash used in financing activities was $5.4 million for the nine months ended September 30, 2024, compared to cash provided of$9.7 million in 2023, mainly due to payments related to the Oberland Purchase Agreement[129]. - As of September 30, 2024, the company had an accumulated deficit of approximately $1.2 billion, indicating significant losses since inception[130]. Cash and Funding - The company has$20.9 million in cash and cash equivalents as of September 30, 2024, and expects to fund operations into mid-2025 with additional proceeds of approximately $10.8 million from recent offerings[90]. - Existing cash and cash equivalents of$20.9 million, along with net proceeds of approximately $10.8 million from the October 2024 offerings, are expected to fund operations into mid-2025[131]. - The company plans to seek additional funding through various avenues, including private or public equity financings and collaborations, to support the development of emavusertib[92]. - The company sold 120,356 and 140,032 shares of common stock under the 2024 Sales Agreement, generating gross proceeds of$0.8 million and $1.0 million during the three and nine months ended September 30, 2024, respectively[121]. - In October 2024, the company entered into a securities purchase agreement to sell 2,398,414 shares of common stock, with net proceeds of approximately$10.8 million expected from the offerings[122]. Research and Development - The company expects to provide additional clinical data from the TakeAim studies in December 2024 and the first quarter of 2025[87]. - Research and development expenses are expected to increase substantially over the next several years due to larger clinical trials and regulatory preparations for emavusertib[104]. - The successful development and commercialization of emavusertib remains highly uncertain due to various risks, including regulatory approval and clinical trial outcomes[105]. - The company may need to delay or reduce its research and development program for emavusertib if sufficient funding is not obtained, which could adversely affect business prospects[132]. - Significant capital will be required to develop and commercialize emavusertib, with expectations of incurring substantial operating losses in the foreseeable future[132]. Operational Changes - The company expects to complete enrollment in the TakeAim Leukemia Phase 1/2 study and has streamlined operations resulting in an approximate 30% reduction in workforce[85]. - The company has entered into a collaboration agreement with Genentech for the commercialization of Erivedge, which is approved for advanced basal cell carcinoma[89]. - The Oberland Purchase Agreement allows for milestone payments of $53.5 million if certain conditions are met, with an estimated Put/Call Price of$41.0 million as of September 30, 2024[96]. - The company faces potential financial obligations due to agreements with collaborators, which could impact future capital requirements[132]. - The company is currently focused on emavusertib, which is in early clinical testing, and must successfully navigate various challenges to achieve profitability[132]. Expenses - Total research and development expenses decreased by $0.7 million, or 6$1.0 million, or 21%, for the three months ended September 30, 2024, primarily due to lower legal and employee-related costs[117]. - Other income increased significantly for the three and nine months ended September 30, 2024, primarily due to a decrease in non-cash expenses related to the sale of future royalties[118].