Unity Biotechnology(UBX) - 2020 Q1 - Quarterly Report

Financial Performance - Total current assets decreased from $129,487,000 as of December 31, 2019, to $115,233,000 as of March 31, 2020, a decline of approximately 11%[10] - Operating expenses for the three months ended March 31, 2020, were $27,156,000, up 37% from $19,737,000 for the same period in 2019[12] - Net loss for the three months ended March 31, 2020, was $28,038,000, compared to a net loss of $18,767,000 for the same period in 2019, representing an increase of 49%[12] - Cash and cash equivalents decreased from $37,473,000 as of December 31, 2019, to $25,059,000 as of March 31, 2020, a reduction of approximately 33%[10] - The company reported a net cash used in operating activities of $25,073,000 for the three months ended March 31, 2020, compared to $20,596,000 for the same period in 2019, indicating a 22% increase in cash outflow[19] - The company reported a comprehensive loss of $27,755,000 for the three months ended March 31, 2020, compared to a comprehensive loss of $18,653,000 for the same period in 2019, marking an increase of 48%[12] - The Company reported an accumulated deficit of $273.5 million as of March 31, 2020, compared to $245.5 million as of December 31, 2019, indicating ongoing financial challenges[23] - The Company used $25.1 million in operating activities for the three months ended March 31, 2020, compared to $20.6 million for the same period in 2019, highlighting increased cash outflows[23] - The Company has not generated any revenue from contracts with customers and does not expect positive cash flows from operations in the foreseeable future[23] - Management expects operating losses to continue, necessitating the need for additional capital to sustain operations[24] Assets and Liabilities - Total liabilities increased from $30,514,000 as of December 31, 2019, to $52,458,000 as of March 31, 2020, an increase of 72%[10] - Cash, cash equivalents, and marketable securities totaled $109.2 million as of March 31, 2020, down from $38.9 million as of December 31, 2019[24][32] - The Company has $25.059 million in total cash equivalents, including $24.059 million in money market funds[66] - The Company holds $84.179 million in total short-term marketable securities, including $46.951 million in U.S. government debt securities[66] - The total marketable securities as of March 31, 2020, were valued at $109,238 million, compared to $124,459 million as of December 31, 2019[76] Stock and Financing Activities - The company issued 1,513,840 shares of common stock under its at-the-market equity offering program, raising $8,763,000 net of issuance costs[16] - The company issued and sold 1,513,840 shares through its ATM Offering Program, generating net proceeds of approximately $8.8 million during the three months ended March 31, 2020[145] - The company recorded a contingent consideration liability of $1,131 million as of December 31, 2019, which decreased to $910 million by March 31, 2020[71] - The company recorded a change in fair value of the contingent consideration liability, resulting in a decrease of $221 million from December 31, 2019, to March 31, 2020[71] - Cash provided by financing activities for the three months ended March 31, 2020 was $9.0 million, primarily from $8.8 million in proceeds from the sale of common stock[157] Research and Development - Research and development expenses increased to $19,265,000 for the three months ended March 31, 2020, from $16,505,000 in the same period of 2019, reflecting a growth of 17%[12] - Research and development expenses rose by $2.8 million to $19.3 million, primarily due to increased clinical study costs associated with UBX0101[137] - The Phase 2 study of UBX0101 for osteoarthritis is fully enrolled, with expected top-line results in the second half of 2020[117] - The company plans to file an IND for a Phase 1 safety study for ophthalmology candidates in the second half of 2020[119] - The company has identified 24 SASP factors and disease biomarkers relevant to OA, with 19 meeting criteria for meaningful measurement, indicating potential for disease modulation[198] Market and Operational Risks - The COVID-19 pandemic has not significantly impacted the Company's operations to date, but future effects remain uncertain[40] - The COVID-19 pandemic has impacted clinical trial operations, leading to protocol amendments for remote data collection[125] - The company acknowledges that its ability to raise additional funds will depend on various financial and economic factors, which may be impacted by the ongoing COVID-19 pandemic[182] - The company faces risks related to the novel therapeutic approach of using senolytic molecules, which may not translate effectively from preclinical models to human applications[197] - The company may need to prioritize certain drug candidates over others due to limited resources, potentially missing out on more profitable opportunities[184] Future Outlook - The company expects to continue incurring losses for the foreseeable future as it develops drug candidates and conducts clinical studies[177] - The company anticipates that existing capital resources will fund planned operating expenses into the second half of 2021, but may need additional funds sooner due to various factors[180] - The company’s ability to generate revenue and achieve profitability is uncertain and may take many years[204] - The company has not entered into any off-balance sheet arrangements[163] - The company has implemented a remote work plan and heightened safety measures due to COVID-19[208]