Tempest Therapeutics(US:TPST)2023-08-10 20:39Financial Performance - The company reported a net loss of $15.2 million for the six months ended June 30, 2023, compared to a net loss of $17.7 million for the same period in 2022, reflecting a decrease of approximately 14%[80]. - The total operating loss for the three months ended June 30, 2023, was $7.5 million, down from $8.8 million in the same period of 2022, indicating a reduction of approximately 15%[89]. - As of June 30, 2023, the company had an accumulated deficit of $151.0 million, with expectations of increasing losses in the foreseeable future[98]. - Cash used in operating activities for the six months ended June 30, 2023, was $14.7 million, compared to $15.5 million in the same period of 2022[106]. Research and Development - Research and development expenses decreased by $1.2 million to $4.4 million for the three months ended June 30, 2023, primarily due to reduced costs from contract research organizations[91]. - Research and development expenses decreased by $1.7 million to $9.1 million for the six months ended June 30, 2023, compared to $10.8 million in the prior year period, primarily due to reduced costs from contract research organizations[96]. - The ongoing clinical trial for TPST-1120 demonstrated a 74.4% relative improvement in unconfirmed objective response rate compared to the control arm, with 30% vs. 17.2% responses[78]. - The company plans to continue leveraging its drug development experience to identify new targets for its pipeline, including ongoing preclinical programs targeting TREX-1[77]. - The company anticipates more mature data on overall survival and progression-free survival for its clinical programs to be available in the second half of 2023 or the first half of 2024[78]. Cash and Financing - As of June 30, 2023, the company had cash and cash equivalents of $17.6 million, which are projected to be insufficient to cover operating expenses beyond the second quarter of 2024[82]. - Existing cash and cash equivalents as of June 30, 2023, are projected to be insufficient to fund operating expenses and capital expenditures beyond the second quarter of 2024[99]. - Cash provided by financing activities for the six months ended June 30, 2023, was $1.2 million, primarily from the issuance of common stock under the ATM program[110]. - The company expects to finance future cash needs primarily through the issuance of additional equity, borrowings, and strategic alliances[117]. - Material cash requirements as of June 30, 2023, include $8.6 million payable within 12 months, with anticipated increases in expenses related to ongoing development activities[116]. - The term loan with Oxford Finance matures on August 1, 2025, with an annual floating interest rate of 7.15%[102]. - The company sold 1,239,272 shares of common stock under the ATM Program for net proceeds of $6.8 million as of June 30, 2023[103]. Administrative Expenses - General and administrative expenses decreased by $0.1 million to $3.1 million for the three months ended June 30, 2023, primarily due to reduced consulting and professional services costs[92]. - General and administrative expenses decreased by $0.2 million to $6.0 million for the six months ended June 30, 2023, compared to the prior year period, mainly due to a reduction in consulting and professional services[97]. Internal Controls - As of June 30, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[123]. - No changes in internal control over financial reporting during the quarter ended June 30, 2023, that materially affected internal control[124].