Neurogene(NGNE) - 2022 Q4 - Annual Report

Financial Performance - The company incurred a net loss of $57.6 million for the year ended December 31, 2022, compared to a net loss of $60.7 million in 2021[333]. - Cash used in operating activities was $45.6 million in 2022, slightly improved from $47.6 million in 2021[330]. - The company has an accumulated deficit of $451.1 million as of December 31, 2022[330]. Expenses - Research and development expenses for the year ended December 31, 2022, were $41.1 million, an increase of 5% from $39.2 million in 2021[324]. - General and administrative expenses decreased by 17% to $18.0 million in 2022 from $21.5 million in 2021[326]. - Total operating expenses for 2022 were $59.1 million, a decrease of 3% compared to $60.7 million in 2021[322]. Restructuring and Workforce - The company announced a workforce reduction of approximately 40% as part of a strategic restructuring plan[327]. - The company expects to incur total restructuring charges of $1.8 million, with $1.4 million already incurred in 2022[328]. Cash and Investments - As of December 31, 2022, the company had cash, cash equivalents, and short-term investments totaling $96.4 million[330]. - Interest income increased significantly to $1.6 million in 2022 from $19.0 thousand in 2021 due to higher interest rates[329]. Research and Development Accounting - Research and development costs are charged to expense as incurred, including employee-related expenses, clinical trial costs, and technology licenses[345]. - No product development expenditures have been deferred to date, and costs are recorded based on the evaluation of specific tasks[346]. - Stock-based compensation is recognized over the vesting period, with all share-based payments accounted for based on grant-date fair values[347]. - The fair value of options granted is estimated using the Black-Scholes option pricing model, which involves significant estimates and judgments[348]. - There is inherent uncertainty in forecasts and projections, which could materially affect stock-based compensation expense and net loss amounts[349]. Market Risk Disclosures - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk[351].