AN2 Therapeutics(ANTX) - 2024 Q2 - Quarterly Report

Financial Performance - For the six months ended June 30, 2024, the net loss was $31.1 million, consistent with the net loss of $31.1 million for the same period in 2023, resulting in an accumulated deficit of $185.5 million as of June 30, 2024[118]. - The company reported net losses of $31.1 million for both the six months ended June 30, 2024, and 2023, with an accumulated deficit of $185.5 million as of June 30, 2024[141]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $15.9 million, a decrease of 4% from $16.6 million in the same period of 2023[128]. - Total operating expenses for the six months ended June 30, 2024, were $34.2 million, an increase of 5% from $32.6 million in the same period of 2023[135]. - General and administrative expenses increased by 22% to $3.7 million for the three months ended June 30, 2024, compared to $3.0 million in the same period of 2023[132]. - General and administrative expenses were $7.4 million for the six months ended June 30, 2024, compared to $7.1 million in 2023, marking a 4% increase[139]. - Research and development expenses decreased by 10% to $12.1 million for the three months ended June 30, 2024, compared to $13.5 million for the same period in 2023[129]. - Research and development expenses increased to $26.8 million for the six months ended June 30, 2024, up from $25.5 million in the same period of 2023, representing a 5% increase[136]. - Clinical trial expenses rose by $3.3 million to $10.4 million, a 46% increase compared to $7.1 million in 2023[138]. - Personnel-related expenses increased by $1.3 million to $9.3 million, reflecting a 17% rise from $8.0 million in 2023[138]. Income and Cash Flow - Other income, net increased by 81% to $1.4 million for the three months ended June 30, 2024, compared to $0.8 million for the same period in 2023, driven by higher interest rates and cash balances[133]. - Other income, net increased to $3.1 million for the six months ended June 30, 2024, up from $1.5 million in 2023, a 107% increase[140]. - Cash used in operating activities was $32.0 million for the six months ended June 30, 2024, compared to $24.4 million in 2023[152][153]. - Net cash provided by investing activities was $42.8 million for the six months ended June 30, 2024, compared to $18.8 million in 2023[154]. - The company generated approximately $65.5 million from an Underwritten Offering in August 2023, after deducting commissions and offering expenses[142]. Funding and Future Outlook - The company has raised a total of $182.4 million through various funding rounds since its inception, including $70.0 million from an underwritten offering in August 2023[118]. - Future funding requirements are expected to be substantial, as the company does not have any products approved for sale and anticipates continued operating losses[143][144]. - As of June 30, 2024, the company had cash, cash equivalents, and investments totaling $104.5 million, expected to fund operations for at least the next twelve months[120]. - The company had cash, cash equivalents, and investments totaling $104.5 million as of June 30, 2024, primarily in money market funds and marketable securities[162]. Regulatory and Compliance - The company intends to rely on exemptions provided by the JOBS Act, including not complying with auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act[161]. - The company will remain an emerging growth company (EGC) until total annual revenues exceed $1.235 billion or it qualifies as a large accelerated filer with at least $700 million in equity securities held by non-affiliates[161]. Economic Factors - A hypothetical 10% relative change in interest rates would not have had a material impact on the company's financial statements[163]. - The company was not exposed to material foreign currency risk during the quarter ended June 30, 2024[164]. - Inflation has generally increased the company's labor and operating costs, but it has not had a material effect on the unaudited interim condensed financial statements[165].