Shattuck Labs(US:STTK)2024-08-01 20:18Financial Performance - Collaboration revenue for the three months ended June 30, 2024, was $1,609,000, compared to $200,000 for the same period in 2023, representing a significant increase[7]. - The net loss for the three months ended June 30, 2024, was $21,552,000, compared to a net loss of $21,346,000 for the same period in 2023, reflecting a slight increase in losses[7]. - The company reported a comprehensive loss of $21,543,000 for the three months ended June 30, 2024, compared to a comprehensive loss of $21,081,000 for the same period in 2023[7]. - The net loss for the six months ended June 30, 2024, was $40,056 thousand, compared to a net loss of $42,070 thousand for the same period in 2023, representing a decrease of approximately 4.8%[11]. - The company reported cash and cash equivalents of $60,693 thousand as of June 30, 2024, down from $71,893 thousand at the end of 2023, reflecting a decrease of about 15.5%[11]. - The accumulated deficit as of June 30, 2024, was $346.4 million, highlighting the ongoing financial challenges faced by the company since its inception[14]. Expenses - Research and development expenses for the six months ended June 30, 2024, totaled $35,503,000, up from $34,872,000 in the same period of 2023, indicating a year-over-year increase of approximately 1.8%[7]. - The company incurred general and administrative expenses of $5,332,000 for the three months ended June 30, 2024, compared to $4,742,000 for the same period in 2023, reflecting an increase of approximately 12.4%[7]. - The company’s operating expenses for the three months ended June 30, 2024, were $24,571,000, compared to $22,947,000 for the same period in 2023, representing an increase of approximately 7.1%[7]. - Stock-based compensation for the six months ended June 30, 2024, was $5,140 thousand, an increase from $3,535 thousand in the same period of 2023, representing a rise of approximately 45.5%[11]. - The Company recorded total stock-based compensation expense of $2.7 million for the three months ended June 30, 2024, compared to $1.9 million for the same period in 2023[57]. Equity and Shares - The weighted-average shares outstanding for the three months ended June 30, 2024, were 50,791,241, compared to 42,467,664 for the same period in 2023, indicating an increase of approximately 19.7%[7]. - The total stockholders' equity as of June 30, 2024, was $110,616,000, down from $144,705,000 as of December 31, 2023, showing a decrease of about 23.5%[9]. - The Company’s stock options outstanding increased from 5,379,211 in 2023 to 6,443,892 in 2024[38]. - As of June 30, 2024, there were 3,468,550 shares available for future grants under the 2020 Equity Incentive Plan[54]. - The Company has no current plans to issue any shares of preferred stock, with none outstanding as of June 30, 2024[53]. Cash Flow - Cash used in operating activities for the six months ended June 30, 2024, was $27,079 thousand, a significant improvement from $45,077 thousand in the prior year, indicating a reduction of approximately 40%[11]. - The company incurred a net cash used in investing activities of $38,690 thousand for the six months ended June 30, 2024, compared to a net cash provided by investing activities of $69,558 thousand in the prior year[11]. Revenue Sources - Revenue in 2024 has been derived from collaborations with Ono Pharmaceutical Co., Ltd and ImmunoGen, Inc., with the latter being acquired by AbbVie, Inc. in February 2024[22]. - The Company has not recognized any revenue related to sales-based royalties or milestone payments based on the level of sales to date[34]. - The Company entered into a collaboration agreement with Ono Pharmaceutical, potentially receiving up to $217.5 million in milestone payments and tiered royalties ranging from mid-single digit to low-double digit percentages[48][50]. - The Company recognized revenue of $1.5 million and $2.4 million from the Ono Agreement for the three and six months ended June 30, 2024, respectively, with no revenue recognized in 2023[50]. - The Company has completed all obligations under the ImmunoGen Agreement and recognized revenue of $0.3 million for the six months ended June 30, 2024[51]. Investments and Liabilities - The Company’s investments in U.S. government securities had a total fair value of $44,651,000 as of June 30, 2024[40]. - The Company has a liability of up to $20.5 million under the Kopfkino License Agreement, contingent upon achieving specified milestones[44]. - The Company has a cash, cash equivalents, and investments total of $105.3 million, which is expected to fund operations for at least the next twelve months[14]. Clinical Development - The Company has one clinical-stage product candidate, SL-172154, and several compounds in preclinical development, focusing on oncology and autoimmune diseases[13]. - The company is highly dependent on a limited number of contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs) for its clinical trials, which poses a risk to its operations[22]. Stock Options and Valuation - The expected term of employee stock options with service-based vesting is approximately 6.02 years for 2024, slightly down from 6.08 years in 2023[61]. - The expected stock price volatility for options under the 2020 Plan increased to 96.1% in 2024 from 84.8% in 2023[61]. - The risk-free interest rate for options under the 2020 Plan rose to 4.1% in 2024, compared to 3.6% in 2023[61]. - The expected term for options calculated using the Monte Carlo pricing model is 0 years for 2024, down from 4.00 years in 2023[63]. - The expected volatility for shares issued under the 2020 ESPP increased significantly to 158.6% in 2024 from 84.8% in 2023[64]. - The risk-free interest rate for shares issued under the 2020 ESPP is 5.1% for 2024, up from 3.5% in 2023[64]. - The expected dividend yield remains at 0% as the company does not plan to pay dividends in the foreseeable future[61]. - The company utilizes the Black-Scholes option pricing model for estimating the fair value of employee stock options and restricted stock awards[60]. - The fair value of stock options is determined using various management estimates including expected term, volatility, risk-free interest rate, and dividend yield[60]. Regulatory and Reporting - The Company evaluates the measure of progress for revenue recognition each reporting period and adjusts as necessary[33]. - The Company’s collaboration revenue arrangements may include up-front license fees, milestone payments, and royalties[33]. - The Company has not granted a development and commercialization license as of the reporting date[34]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[105].