Arcturus Therapeutics(ARCT) - 2020 Q3 - Quarterly Report

Revenue Performance - Collaboration revenue for the three months ended September 30, 2020, was $2.3 million, a decrease of 29.7% compared to $3.3 million for the same period in 2019[69] - For the nine months ended September 30, 2020, collaboration revenue was $7.3 million, down 59.0% from $17.8 million in the same period of 2019[70] Operating Expenses - Total operating expenses for the three months ended September 30, 2020, were $23.3 million, an increase of 112.5% from $10.9 million in the same period of 2019[72] - General and administrative expenses for the three months ended September 30, 2020, were $5.6 million, a 43.6% increase from $3.9 million in the same period of 2019[72] - General and administrative expenses rose by $1.7 million and $3.3 million for the three and nine months ended September 30, 2020, respectively, mainly from increased personnel expenses[77] Research and Development - Research and development expenses for the three months ended September 30, 2020, were $17.7 million, a 150.5% increase from $7.1 million in the same period of 2019[73] - Research and development expenses related to the LUNAR-COV19 candidate were $6.2 million for the three months ended September 30, 2020[73] - Total development expenses for the three months ended September 30, 2020, were $13.8 million, a significant increase from $4.6 million in the same period of 2019[73] - Research and development expenses increased by $2.1 million and $1.2 million for the three and nine months ended September 30, 2020, respectively, compared to 2019, primarily due to the LUNAR-OTC program[74] - LUNAR-CF expenses rose by $0.7 million and $1.5 million during the three and nine months ended September 30, 2020, respectively, attributed to increased R&D costs related to the Cystic Fibrosis Foundation agreement[74] Financial Position - The company reported an accumulated deficit of $112.7 million as of September 30, 2020[67] - As of September 30, 2020, the company had approximately $307.1 million in cash, cash equivalents, and restricted cash, following a capital raise of approximately $186.6 million during the third quarter[81] - The company raised approximately $480.2 million in gross proceeds from various public and private offerings, debt issuances, and collaboration agreements from inception through September 30, 2020[81] - Net cash provided by financing activities for the nine months ended September 30, 2020 was $272.9 million, significantly higher than $36.9 million for the same period in 2019[85] - The company has non-cancelable contractual obligations totaling approximately $6.4 million as of September 30, 2020[80] Future Outlook - Future funding requirements will depend on various factors, including clinical results and the success of product candidates in development[87] - The company is focused on developing infectious disease vaccines and therapies for liver and respiratory rare diseases using its proprietary STARR technology[67] - The LUNAR-COV19 vaccine candidate's Phase 1/2 clinical study has completed dosing of all subjects in the first cohort[67] Cash Flow - Net cash used in operating activities was $36.2 million on a net loss of $41.0 million for the nine months ended September 30, 2020, compared to net cash provided of $1.1 million on a net loss of $15.0 million for the same period in 2019[83] - Personnel-related expenses increased by $1.1 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, due to higher headcount and share-based compensation[76]