Neurogene(US:NGNE)2023-05-08 20:17Financial Performance - For the three months ended March 31, 2023, research and development expenses were $7.7 million, a decrease of 28% from $10.7 million in the same period of 2022[84]. - General and administrative expenses for the same period were $4.0 million, down 14% from $4.7 million in the prior year[86]. - Total operating expenses for the three months ended March 31, 2023, were $15.1 million, a slight decrease of 1% from $15.4 million in the same period of 2022[82]. - The net loss for the three months ended March 31, 2023, was $14.2 million, adjusted for non-cash items including impairment of $3.4 million and stock-based compensation of $1.2 million[96]. - For the three months ended March 31, 2023, the net cash used in operating activities was $(13,033) thousand, compared to $(14,091) thousand for the same period in 2022, indicating a 7.5% improvement[95]. Restructuring and Workforce Changes - The company reduced its workforce by approximately 40% in November 2022 and by an additional 70% in March 2023 as part of its restructuring plans[72][89]. - The restructuring plans are expected to incur aggregate charges of $1.7 million and $1.8 million for the November 2022 and March 2023 reductions, respectively[88][90]. - The company has suspended its research and development activities following the decision to discontinue the development of NL-201[78]. Cash and Financing - The company had an accumulated deficit of $465.3 million and cash, cash equivalents, and short-term investments of $83.4 million as of March 31, 2023[93]. - As of March 31, 2023, the company had approximately $83.4 million in cash, cash equivalents, and short-term investments, expected to fund operations for at least the next 12 months[99]. - The company plans to finance operations through equity sales, debt financing, or strategic transactions, with no assurance of success in obtaining adequate financing[79]. - Future capital requirements may vary significantly, and the company may need to seek additional funding sooner than planned[99]. - The company may face challenges in obtaining additional equity or debt financing on acceptable terms, which could negatively impact its business and financial condition[99]. Investment Activities - Cash provided by investing activities for the three months ended March 31, 2023, was $10,706 thousand, primarily from proceeds of available-for-sale securities[97]. - The company’s cash used in financing activities for the three months ended March 31, 2023, was $(66) thousand, primarily for finance lease payments[98]. - The company experienced a net decrease of $3.7 million in operating assets and liabilities for the three months ended March 31, 2023[96]. Future Outlook - The company has not generated product revenue or achieved profitability since inception and anticipates continued net losses in the foreseeable future[99]. - The company’s future capital requirements will depend on various factors, including the development and commercialization costs of future product candidates[100]. - Interest income increased to $0.9 million for the three months ended March 31, 2023, compared to $13 thousand in the same period of 2022, due to higher interest rates[92].