Revenue Generation - The company has not generated any revenues from product sales and does not expect to do so within the next 12 months[117]. - For the six months ended June 30, 2024, the company recognized $24.5 million in revenue under the Asset Purchase Agreement with Ono, compared to $18.0 million for the same period in 2023, representing a 36.1% increase[121][132]. - The company received a one-time upfront payment of approximately $26.4 million under the Asset Purchase Agreement with Ono, with potential additional payments of up to $101.4 million based on milestones[119]. Research and Development Expenses - Research and development expenses for the three months ended June 30, 2024, were $10.8 million, up from $9.6 million in the same period in 2023, reflecting a 12.5% increase[133]. - The company plans to substantially increase research and development expenses to advance the development of EQ101, EQ302, and itolizumab (EQ001)[124]. - Research and development expenses increased by $1.7 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a $1.9 million increase in CMC activities expenses[134]. Development Funding - Development funding recognized for the six months ended June 30, 2024, was $17.2 million, compared to $13.5 million for the same period in 2023, indicating a 27.4% increase[132]. - As of June 30, 2024, the company had received $53.1 million in development funding from Ono for itolizumab[142]. General and Administrative Expenses - General and administrative expenses are expected to increase due to expanding infrastructure and compliance costs associated with being a public company[126]. - General and administrative expenses remained relatively constant at $3.1 million for the three months and $6.9 million for the six months ended June 30, 2024, compared to $3.1 million and $6.8 million for the same periods in 2023[135]. Financial Condition - As of June 30, 2024, the company had an accumulated deficit of $188.0 million and $11.1 million in cash and cash equivalents, along with $22.2 million in short-term investments[139]. - The company anticipates challenges in securing additional financing due to macroeconomic factors, which could impact its financial condition and operations[117]. - If Ono does not exercise its option, the company anticipates needing to reduce cash burn by approximately $10 million between November 2024 and August 2025 to fund operations[146]. Interest Income - Interest income decreased to $0.4 million and $0.8 million for the three and six months ended June 30, 2024, respectively, down from $0.6 million and $1.3 million in the same periods of 2023[137]. Stock Repurchase Program - The stock repurchase program authorized by the board allows for repurchases of up to $7.5 million, with $0.3 million spent on repurchasing 298,385 shares as of June 30, 2024[144]. Option Period - The option period for Ono to exercise its option on itolizumab will expire on October 30, 2024, following the delivery of topline data and interim analysis results[120].
Equillium(EQ) - 2024 Q2 - Quarterly Report