BioAtla(BCAB) - 2021 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $30.4 million and $49.1 million for the three and six months ended June 30, 2021, respectively, with an accumulated deficit of $140.0 million as of the same date [94]. - Consolidated net loss for the three months ended June 30, 2021 was $(30.38) million, compared to a net loss of $(6.22) million in 2020, a change of $(24.16) million [114]. - Net cash used in operating activities for the six months ended June 30, 2021, totaled $28.5 million, with a consolidated net loss of $49.1 million [140]. Revenue Generation - The company has not generated any revenue from product sales to date and does not expect to generate meaningful revenue in the near future [103]. - The company recognized $0.3 million in collaboration revenues for the three and six months ended June 30, 2021, from legacy service contracts [105]. - Collaboration revenue for the three months ended June 30, 2021 was $0.25 million, an increase of 60% from $0.19 million in the same period of 2020 [114]. - For the six months ended June 30, 2021, collaboration revenue was $0.25 million, consistent with the same period in 2020 [124]. Operating Expenses - The company has incurred significant operating expenses and anticipates additional costs associated with operating as a public company, including legal and accounting services [98][109]. - Total operating expenses for the three months ended June 30, 2021 were $30.71 million, up from $4.71 million in 2020, representing a change of $26 million [114]. - Total operating expenses for the six months ended June 30, 2021 were $49.51 million, up from $5.91 million in 2020, an increase of $43.60 million [125]. - Research and development expenses increased to $14.85 million for the three months ended June 30, 2021, compared to $2.92 million in 2020, a rise of $11.93 million [117]. - Research and development expenses for the six months ended June 30, 2021 were $25.27 million, compared to $4.58 million in 2020, an increase of $20.69 million [127]. - General and administrative expenses rose to $15.86 million for the three months ended June 30, 2021, from $1.79 million in 2020, an increase of $14.07 million [118]. - General and administrative expenses for the six months ended June 30, 2021 were $24.23 million, up from $1.32 million in 2020, an increase of $22.91 million [128]. Cash Position and Funding - As of June 30, 2021, the company's cash and cash equivalents totaled approximately $207.6 million, expected to fund operations at least through the end of 2022 [100]. - The company expects current cash and cash equivalents to fund ongoing operations at least through the end of 2022 [137]. - Future funding requirements will depend on the progress and costs of clinical trials and product development [136]. - The company expects to require substantial additional capital to fund operations and product development for the foreseeable future [99]. - The company may seek additional capital through public or private equity offerings, debt financings, and collaborations [138]. - The company cannot assure that additional financing will be available at acceptable terms, which could adversely affect its business objectives [138]. Other Financial Activities - The company received a PPP Loan of $0.7 million, which was fully forgiven by the SBA in July 2021, resulting in no remaining balance [135]. - Cash used in investing activities was $0.7 million for the six months ended June 30, 2021, related to the purchase of property and equipment [144]. - Net cash used in financing activities was $1.7 million for the six months ended June 30, 2021, primarily due to initial public offering costs [144]. - The net change in operating assets and liabilities for the six months ended June 30, 2021, was primarily due to a $5.7 million increase in accounts payable and accrued expenses [140]. - The company has not entered into any off-balance sheet arrangements [147]. Research and Development Focus - The company has focused all resources on research and development activities, with no products approved for sale [92]. - The company expects its research and development expenses to increase substantially as it advances clinical development for BA3011, BA3021, and BA3071 [95]. - The company has a collaboration agreement with BeiGene for the development and commercialization of BA3071, which includes potential milestone payments of up to $225.5 million [104].