Absci(US:ABSI)2024-08-14 20:08Financial Performance - Total revenues for the three months ended June 30, 2024, were $1,270,000, compared to $3,367,000 for the same period in 2023, representing a decrease of approximately 62.3%[14] - Operating loss for the six months ended June 30, 2024, was $(50,219,000), compared to $(67,473,000) for the same period in 2023, showing an improvement of approximately 25.6%[14] - Net loss for the three months ended June 30, 2024, was $(24,750,000), compared to $(41,672,000) for the same period in 2023, indicating a reduction of approximately 40.6%[14] - The net loss for the six months ended June 30, 2024, was $46.725 million, an improvement from a net loss of $65.027 million for the same period in 2023, representing a 28.1% reduction in losses[21] - Comprehensive loss for the three months ended June 30, 2024, was $(24,732,000), compared to $(41,723,000) for the same period in 2023, a decrease of approximately 40.7%[14] Cash and Assets - Cash and cash equivalents decreased from $72,362,000 in December 2023 to $42,936,000 in June 2024, a decline of approximately 40.5%[11] - Total current assets increased from $120,578,000 in December 2023 to $165,186,000 in June 2024, representing an increase of about 37.1%[11] - Total assets rose from $217,298,000 in December 2023 to $255,529,000 in June 2024, an increase of approximately 17.6%[11] - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $60.585 million, down from $78.016 million at the end of the previous year[21] - The company’s investments in short-term securities amounted to $102.310 million as of June 30, 2024, with proceeds from maturities of available-for-sale securities totaling $89.1 million for the six months ended June 30, 2024[32] Liabilities and Equity - Total liabilities decreased from $41,122,000 in December 2023 to $34,041,000 in June 2024, a reduction of about 17.2%[11] - The accumulated deficit widened from $(406,495,000) to $(453,220,000), indicating an increase in losses of approximately 11.5%[11] - Total stockholders' equity as of June 30, 2024, was $221,488,000, compared to $176,176,000 as of December 31, 2023, reflecting an increase of approximately 25.7%[17] Shareholder Information - The number of shares issued and outstanding increased from 93,087,675 to 113,444,491, representing a growth of about 21.8%[11] - Weighted-average common shares outstanding for the three months ended June 30, 2024, were 112,934,086, compared to 91,827,780 for the same period in 2023, an increase of approximately 23%[14] - Basic and diluted net loss per share for the three months ended June 30, 2024, was $(0.22), compared to $(0.45) for the same period in 2023, a decrease of approximately 51.1%[14] Expenses - Research and development expenses for the three months ended June 30, 2024, increased to $15,261,000 from $12,112,000 in the same period of 2023, reflecting a rise of approximately 26.5%[14] - Total operating expenses for the three months ended June 30, 2024, were $27,991,000, down from $46,355,000 in the same period of 2023, a decrease of approximately 39.5%[14] - Cash used in operating activities for the six months ended June 30, 2024, was $34.706 million, compared to $39.353 million for the same period in 2023, indicating an 11.8% decrease[21] - Total stock-based compensation expense for the six months ended June 30, 2024, was $8.893 million, up from $5.720 million in the same period of 2023, reflecting a 55.5% increase[37] Revenue Recognition - The company recognized $2.2 million in revenue from deferred revenue during the six months ended June 30, 2024, compared to $0.4 million in the same period of 2023, marking a significant increase[27] - Two partners represented 100% of total revenue under technology development arrangements for the six months ended June 30, 2024, compared to approximately 94% in the same period of 2023, indicating a concentration risk[28] Stock Options and Compensation - The company’s stock options outstanding increased to 19,487,460 as of June 30, 2024, from 17,104,505 at the end of 2023, reflecting a growth of 13.9%[39] - The weighted-average grant date fair value of stock options granted during the six months ended June 30, 2024, was $3.22 per share, compared to $1.44 per share in the same period of 2023[40] - The company granted 2,480,085 restricted stock units during the three months ended June 30, 2024, with a weighted average grant date fair value of $5.03 per share[47] - The company recognized $9.7 million of unrecognized compensation expense related to outstanding restricted stock units expected to be recognized over a remaining weighted-average period of 1.7 years[47] Risk Management and Controls - There have been no material changes in reported market risks or risk management policies since the last Annual Report filed on March 21, 2024[136] - Management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of the end of the reporting period[138] - No changes in internal control over financial reporting occurred during the three months ended June 30, 2024, that materially affected internal controls[138] - The company is not currently a party to any material litigation or legal proceedings, but may face various claims in the ordinary course of business[139] Future Outlook - The company is focusing on leveraging its Integrated Drug Creation platform to enhance drug discovery and development processes[6] - Future expectations include potential revenue from milestone achievements and royalties from partnerships utilizing the Integrated Drug Creation platform[6]