Longboard Pharmaceuticals(US:LBPH)2024-08-01 20:20Financial Performance - The company reported net losses of $21.8 million for Q2 2024, compared to $15.0 million for Q2 2023, reflecting a 45% increase in losses year-over-year[77]. - The total operating expenses for Q2 2024 were $25.6 million, up from $15.6 million in Q2 2023, marking a 64% increase[88]. - The company has incurred an accumulated deficit of $177.3 million as of June 30, 2024, indicating ongoing financial challenges[77]. - The company anticipates continuing to incur net losses for the foreseeable future, with existing cash expected to fund operations for at least the next 12 months[97]. Research and Development - Research and development expenses for Q2 2024 were $20.4 million, a 63% increase from $12.5 million in Q2 2023, primarily due to increased clinical trial costs for bexicaserin and LP659[89]. - Research and development expenses for the first half of 2024 totaled $33.6 million, a 60% increase from $21.1 million in the same period of 2023[90]. - Bexicaserin (LP352) is in the planning stages for a global Phase 3 program, expected to initiate later in 2024, following positive Phase 1b/2a trial results[75]. - As of June 30, 2024, a hypothetical 10.0 percent increase in accrued research and development expenses would have resulted in an increase to the net loss of approximately $0.9 million[111]. Cash and Financing - The company had cash, cash equivalents, and short-term investments of $304.9 million as of June 30, 2024, sufficient to fund operations for at least the next 12 months[76]. - The company raised approximately $241.5 million from a follow-on public offering in January 2024, contributing to its financial resources[76]. - The company raised $241.5 million in a follow-on public offering in January 2024, issuing 11,500,000 shares at a public offering price of $21.00 per share, resulting in net proceeds of $226.5 million after expenses[94]. - Net cash used in operating activities for the six months ended June 30, 2024, was $34.3 million, compared to $26.6 million for the same period in 2023, primarily due to a net loss of $36.8 million[103]. - Net cash used in investing activities was $251.6 million for the six months ended June 30, 2024, primarily due to $354.0 million in short-term investment purchases[104]. - Net cash provided by financing activities was $286.4 million for the six months ended June 30, 2024, significantly higher than $21.2 million for the same period in 2023[105]. - The company has incurred negative cash flows from operations since inception and may need substantial additional financing to support ongoing operations and product development[100]. Company Classification - The company will cease to be an emerging growth company effective December 31, 2024, as the market value of its common stock held by non-affiliates exceeded $700.0 million[114]. - The company is classified as a smaller reporting company and is not required to provide the information required by this item[116]. Administrative Expenses - General and administrative expenses rose to $5.2 million in Q2 2024, a 67% increase compared to $3.1 million in Q2 2023, driven by higher personnel-related costs[91].