Instil Bio(US:TIL)2024-08-13 21:16Financial Performance - For the three months ended June 30, 2024, the net loss was $14.9 million, a decrease of $3.7 million compared to a net loss of $18.7 million for the same period in 2023[89]. - The net loss for the first half of 2024 was $39.2 million, an improvement of $36.5 million compared to a net loss of $75.7 million in 2023[94]. - Cash used in operating activities was $25.0 million for the six months ended June 30, 2024, compared to $54.2 million in 2023, indicating a reduction in cash outflow[111]. - Cash used in operating activities for the six months ended June 30, 2023 was $54.2 million, consisting of a net loss of $75.7 million and a $9.2 million net change in operating assets and liabilities[113]. Expenses - Research and development expenses decreased to $2.9 million for the three months ended June 30, 2024, down from $8.5 million in 2023, primarily due to reduced headcount and discontinued clinical manufacturing activities[90]. - General and administrative expenses were $10.7 million for the three months ended June 30, 2024, compared to $11.5 million in 2023, reflecting a decrease in headcount-related costs[91]. - Total operating expenses for the three months ended June 30, 2024, were $14.1 million, down from $21.0 million in 2023, indicating a reduction of $6.9 million[89]. - Research and development expenses decreased to $10.2 million in the first half of 2024 from $29.1 million in 2023, a reduction of $19.0 million[95]. - General and administrative expenses were $23.1 million for the six months ended June 30, 2024, down from $24.7 million in 2023, reflecting a decrease of $1.6 million[96]. - Restructuring and impairment charges were approximately $0.5 million for the three months ended June 30, 2024, down from $1.0 million in 2023, with expectations for additional charges in 2024[92]. - Restructuring and impairment charges fell to $4.8 million in 2024 from $25.6 million in 2023, a decrease of $20.8 million[97]. - Interest expense increased to $2.0 million for the three months ended June 30, 2024, compared to $0.6 million in 2023, reflecting higher costs associated with loans[89]. Cash and Investments - Cash, cash equivalents, marketable securities, and long-term investments totaled $152.6 million as of June 30, 2024, consisting of $6.8 million in cash and cash equivalents, $141.8 million in marketable securities, and $4.0 million in long-term investments[75]. - As of June 30, 2024, the company had cash, cash equivalents, marketable securities, and long-term investments totaling $152.6 million[98]. - Cash provided by investing activities for the six months ended June 30, 2024 was $21.2 million, primarily from marketable securities investments of $20.6 million[114]. - The outstanding principal amount under the mortgage construction loan was $82.8 million as of June 30, 2024[101]. Future Outlook - The company expects to continue incurring net losses for the foreseeable future due to ongoing research and development activities[75]. - The company expects additional restructuring and impairment charges in 2024 due to workforce reductions and other actions related to its 2024 Plan[97]. - The company plans to evaluate opportunities for a potential sale of its Tarzana manufacturing site to extend its cash runway[102]. - In August 2024, the company entered into an agreement with ImmuneOnco involving an upfront payment of $10 million and potential future payments totaling up to $2.1 billion[106]. Company Status - The company remains an "emerging growth company" and intends to rely on certain exemptions from public company reporting requirements[118]. - The company may delay adopting new accounting standards until it is no longer an emerging growth company or opts out of the transition period provided in the JOBS Act[119]. - The company will remain an emerging growth company until the earliest of December 31, 2026, or when total annual gross revenue exceeds $1.235 billion[120]. - The company is classified as a "smaller reporting company" and may continue to rely on exemptions from certain disclosure requirements[121]. - The market value of the company's shares held by non-affiliates must be less than $250.0 million to maintain smaller reporting company status[121]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its smaller reporting company status[123].