Gritstone bio(GRTS) - 2020 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $26.2 million for the three months ended March 31, 2020, compared to a net loss of $18.0 million for the same period in 2019, representing an increase in losses of $8.2 million[144]. - The total operating expenses for the three months ended March 31, 2020, were $27.9 million, an increase of $7.7 million compared to $20.3 million for the same period in 2019[144]. - The company has an accumulated deficit of $247.2 million as of March 31, 2020, and does not expect positive cash flows from operations in the foreseeable future[130]. - The net loss for the three months ended March 31, 2020, was $26.2 million, compared to a net loss of $18.0 million for the same period in 2019[164]. - Cash used in operating activities was $23.0 million for the three months ended March 31, 2020, compared to $19.1 million for the same period in 2019[163]. - The company expects to continue incurring significant losses for the foreseeable future as it develops its cancer immunotherapy candidates and does not expect positive cash flows from operations[156]. - The company has an accumulated deficit of $247.2 million as of March 31, 2020, reflecting ongoing operational losses since inception[160]. Research and Development - Research and development expenses increased to $22.5 million for the three months ended March 31, 2020, up from $15.9 million in the same period of 2019, reflecting a rise of $6.6 million[144]. - The company initiated a Phase 1/2 clinical trial of its personalized immunotherapy product candidate, GRANITE, in the fourth quarter of 2018, with the first patient dosed in the first quarter of 2019[123]. - The company has also initiated a Phase 1/2 clinical trial of its second product candidate, SLATE, in combination with immune checkpoint inhibitors, with the first patient dosed in the third quarter of 2019[124]. - The company anticipates needing substantial additional funding to support its operations and product development efforts in the future[157]. Revenue and Funding - Collaboration revenue from the bluebird Collaboration Agreement was $1.3 million for both the three months ended March 31, 2020, and 2019, showing a slight decrease of $85,000 year-over-year[145]. - The company raised net cash proceeds of $177.9 million from the issuance of convertible preferred stock and $20.0 million from a collaboration agreement with bluebird[151]. - Cash provided by financing activities was $5.7 million for the three months ended March 31, 2020, primarily from the issuance of common stock through the ATM Offering Program[168]. - The company anticipates seeking to fund operations through equity or debt financings or collaboration agreements, with adequate funding potentially impacted by the COVID-19 pandemic[128]. Operating Expenses - For the three months ended March 31, 2020, the company reported an increase in expenses of $6.6 million compared to the same period in 2019, primarily due to personnel-related costs increasing by $2.5 million and outside services increasing by $1.7 million[147]. - General and administrative expenses rose to $5.5 million for the three months ended March 31, 2020, up from $4.4 million in the same period in 2019, with a $0.5 million increase in personnel-related costs[148]. - The company expects to incur significant additional costs associated with operating as a public company and developing a sales organization or commercial infrastructure[127]. Cash and Securities - The company had cash, cash equivalents, and marketable securities of $108.9 million as of March 31, 2020, down from $127.8 million as of December 31, 2019[155]. Contracts and Agreements - The company entered into a contract research and testing agreement with a third-party CRO for antibody discovery services, with milestone payments of up to $34.8 million contingent on specified events, none of which had occurred as of March 31, 2020[174]. - The company has ongoing contracts with CROs for clinical trials and CMOs for clinical supply manufacturing, which are generally cancelable within 30 days[175]. Accounting Policies - Financial statements are prepared in accordance with GAAP, requiring management to make estimates and judgments affecting reported amounts of assets and liabilities[176]. - Management evaluates estimates related to preclinical study trial accruals and fair value of assets and liabilities, with actual results potentially differing from estimates[177]. - There have been no changes to critical accounting policies since the Annual Report on Form 10-K for the year ended December 31, 2019, filed on March 11, 2020[178]. - Recent accounting pronouncements are discussed in the notes to the unaudited interim condensed financial statements in the Quarterly Report on Form 10-Q[179]. - There have been no material changes in market risk since the Annual Report on Form 10-K for the year ended December 31, 2019[180].