Neurogene(NGNE) - 2021 Q4 - Annual Report

Financial Performance - Total operating loss for 2021 was $60.7 million, up 80% from a loss of $33.7 million in 2020[315] - Net cash used in operating activities was $47.6 million in 2021, compared to $24.6 million in 2020, reflecting increased operating expenses[325] - The company reported a total other income of $6,000 in 2021, a 99% decrease from $451,000 in 2020[321] - The company incurred net cash used in investing activities of $3.3 million in 2021, primarily for laboratory equipment and office furnishings[326] - As of December 31, 2021, the company had an accumulated deficit of $393.5 million and cash and cash equivalents of $142.5 million[322] Expenses - Research and development expenses increased to $39.2 million in 2021 from $24.3 million in 2020, representing a 61% increase[315] - General and administrative expenses rose to $21.5 million in 2021 from $17.2 million in 2020, a 25% increase[319] Capital Resources - The company expects existing capital resources to fund operations into the second half of 2023[328] - The company entered into an ATM Equity Offering Sales Agreement with BofA for an aggregate offering price of up to $40 million, with no sales made to date[323] Stock-Based Compensation - The company measures the cost of stock-based compensation based on the grant-date fair value of the award, recognized over the vesting period[339] - The fair value of options granted is estimated using the Black-Scholes option pricing model, which involves significant estimates regarding expected term, stock price volatility, and risk-free interest rate[340] - There is inherent uncertainty in the company's forecasts and projections, which could materially affect stock-based compensation expense, net loss, and net loss per common stock amounts[341] Licensing and Agreements - The company has an exclusive license agreement with UW, which includes potential milestone payments of up to $10 million based on cumulative net sales of licensed products[334] Market Risk - As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk[343]