Cardiff Oncology(CRDF) - 2024 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents Cardiff Oncology, Inc.'s unaudited condensed financial statements for Q2 2024, covering balance sheets, operations, comprehensive loss, equity, cash flows, and detailed notes Item 1. Financial Statements (Unaudited) Presents Cardiff Oncology's unaudited condensed financial statements for Q2 2024, including balance sheets, operations, comprehensive loss, equity, cash flows, and detailed notes Condensed Balance Sheets Summarizes the company's financial position at June 30, 2024, and December 31, 2023, detailing assets, liabilities, and stockholders' equity | Metric (in thousands) | June 30, 2024 | December 31, 2023 | | :-------------------- | :------------ | :---------------- | | Total Assets | $66,051 | $81,637 | | Total Liabilities | $13,663 | $11,898 | | Total Stockholders' Equity | $52,388 | $69,739 | - Total Assets decreased by $15.6 million from December 31, 2023, to June 30, 2024[5] - Total Liabilities increased by $1.8 million, while Total Stockholders' Equity decreased by $17.4 million[5] Condensed Statements of Operations Details the company's revenues, expenses, and net loss for the three and six months ended June 30, 2024, and 2023 | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Royalty Revenues | $163 | $108 | $368 | $191 | | R&D Expenses | $9,493 | $8,020 | $17,501 | $17,072 | | SG&A Expenses | $3,215 | $4,296 | $6,345 | $7,379 | | Loss from Operations | $(12,545) | $(12,208) | $(23,478) | $(24,260) | | Net Loss | $(11,778) | $(11,150) | $(21,789) | $(22,373) | | Net Loss per Common Share (Basic & Diluted) | $(0.26) | $(0.25) | $(0.49) | $(0.50) | - For the three months ended June 30, 2024, royalty revenues increased by 50.9% YoY, while net loss increased by 5.6% YoY[8] - For the six months ended June 30, 2024, royalty revenues increased by 92.7% YoY, and net loss decreased by 2.6% YoY[8] Condensed Statements of Comprehensive Loss Outlines the company's total comprehensive loss, including net loss and other comprehensive income/loss, for the reported periods | Metric (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(11,778) | $(11,150) | $(21,789) | $(22,373) | | Unrealized gain (loss) on securities available-for-sale | $35 | $(355) | $(30) | $(36) | | Total Comprehensive Loss | $(11,743) | $(11,505) | $(21,819) | $(22,409) | - The company reported a total comprehensive loss of $(11.7) million for the three months ended June 30, 2024, compared to $(11.5) million in the prior year, primarily due to net loss and a shift from unrealized loss to gain on available-for-sale securities[10] Condensed Statements of Stockholders' Equity Presents changes in stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the six months ended June 30, 2024 | Metric (in thousands) | December 31, 2023 | June 30, 2024 | | :-------------------- | :---------------- | :------------ | | Common Stock Shares Outstanding | 44,677 | 45,602 | | Additional Paid-In Capital | $409,343 | $413,017 | | Accumulated Deficit | $(339,541) | $(360,537) | | Total Stockholders' Equity | $69,739 | $52,388 | - Total stockholders' equity decreased from $69.7 million at December 31, 2023, to $52.4 million at June 30, 2024, primarily due to net losses, partially offset by stock-based compensation and issuance of common stock[12] Condensed Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2024, and 2023 | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(16,970) | $(15,791) | | Net cash provided by investing activities | $18,651 | $18,813 | | Net cash provided by financing activities | $2,165 | $0 | | Net change in cash and cash equivalents | $3,846 | $3,022 | | Cash and cash equivalents—End of period | $25,501 | $19,369 | - Net cash used in operating activities increased by $1.2 million for the six months ended June 30, 2024, compared to the same period in 2023[16] - Net cash provided by financing activities significantly increased to $2.2 million in 2024 due to common stock sales and option exercises, compared to zero in 2023[16] Notes to Condensed Financial Statements Provides detailed explanations and disclosures supporting the condensed financial statements, including accounting policies, fair value measurements, and subsequent events 1. Organization and Basis of Presentation Describes Cardiff Oncology, Inc.'s business, its focus on cancer therapies, and the basis for preparing the financial statements - Cardiff Oncology, Inc. is a clinical-stage biotechnology company focused on developing novel cancer therapies using PLK1 inhibition, with its lead asset onvansertib being evaluated in various clinical programs for RAS-mutated metastatic colorectal cancer (mCRC), metastatic pancreatic ductal adenocarcinoma (mPDAC), small cell lung cancer (SCLC), and triple negative breast cancer (TNBC)[18] - The company has incurred net losses and negative operating cash flows since inception, but as of June 30, 2024, it had $60.3 million in cash, cash equivalents, and short-term investments, which is believed to be sufficient for at least the next 12 months[20] 2. Summary of Significant Accounting Policies Outlines the key accounting principles and methods used in preparing the condensed financial statements - No changes to significant accounting policies occurred during the six months ended June 30, 2024, as described in the Annual Report on Form 10-K for 2023[21] - The company adopted ASU No. 2020-06 on January 1, 2024, using the modified-retrospective method, which resulted in reversing $793,000 of preferred stock dividends related to Series A Convertible Preferred Stock[23] 3. Fair Value Measurements Details the fair value hierarchy and measurements for financial assets and liabilities on a recurring basis | Asset Category (in thousands) | Fair Value June 30, 2024 | Fair Value December 31, 2023 | | :---------------------------- | :----------------------- | :--------------------------- | | Money market fund | $24,349 | $21,606 | | Available for sale investments: | | | | Certificate of deposit | $5,946 | $8,333 | | Corporate debt securities | $13,849 | $19,373 | | Commercial paper | $2,399 | $6,202 | | U.S. treasury securities | $12,624 | $18