Aptevo Therapeutics(US:APVO)2024-08-08 12:30Financial Performance - Net cash used in operating activities was $12.8 million for the six months ended June 30, 2024, compared to $0.2 million for the same period in 2023, driven by a net loss of $12.7 million[85]. - As of June 30, 2024, the company had cash and cash equivalents of $8.1 million and an accumulated deficit of $236.2 million[91]. - For the six months ended June 30, 2024, net cash used in operating activities was $12.8 million[91]. - The company anticipates significant operating losses for the next several years as it continues to develop its product candidates[92]. - The company requires substantial additional funds to continue its development programs and fulfill planned operating goals[92]. Research and Development - Research and development expenses decreased by $1.9 million, from $5.5 million for Q2 2023 to $3.6 million for Q2 2024, primarily due to lower spending on the APVO436 clinical trial[78]. - Total research and development expenses for the six months ended June 30, 2024, were $7.4 million, down from $9.6 million in the same period of 2023, reflecting reduced costs in clinical trials and preclinical projects[78]. - Clinical candidate APVO436 is currently being evaluated for the treatment of acute myelogenous leukemia (AML)[71]. - Clinical candidate ALG.APV-527 is designed to reactivate antigen-primed T-cells to specifically kill tumor cells and is under evaluation for multiple solid tumor types[71]. - The company has a milestone payment obligation of $2.0 million upon dosing the first patient in a Phase 2 clinical trial of product candidate APVO436[94]. Financing Activities - Net cash provided by financing activities for the six months ended June 30, 2024, was $4.0 million, primarily from the issuance of common stock[85]. - The company completed a public offering on April 10, 2024, issuing 3,400,000 shares at $1.35 per share, generating gross proceeds of $4.6 million and net proceeds of $4.0 million after fees[89]. - On July 1, 2024, the company completed a Registered Direct Offering of 5,339,806 shares at $0.515 per share, resulting in gross proceeds of $2.7 million and net proceeds of $2.3 million after fees[90]. - The company has issued common warrants to purchase up to 6,800,000 shares at an exercise price of $1.35 and 10,679,612 shares at $0.515, which could generate additional proceeds of up to $9.1 million if exercised[89][90]. General and Administrative Expenses - General and administrative expenses decreased by $0.3 million, from $2.7 million for Q2 2023 to $2.4 million for Q2 2024, mainly due to lower employee and consulting costs[80]. Risks and Obligations - The company faces risks related to macroeconomic conditions, which may impact its ability to partner product candidates and complete clinical trials[92][93]. - The company has an operating lease obligation extending through April 2030, with a recorded lease liability of $4.4 million[94]. - The company is eligible to receive up to $5.8 million in milestone payments from Medexus upon achievement of certain regulatory and IXINITY net sales thresholds[86]. - As of June 30, 2024, the company had 1,316 Series A and 1,316 Series B common warrants outstanding from the August 2023 public offering, with an exercise price of $27.28 per share[87].