Unity Biotechnology(US:UBX)2020-07-31 12:56Financial Performance - Net loss for the six months ended June 30, 2020, was $46,705,000, compared to a net loss of $42,440,000 for the same period in 2019, representing an increase of 10.6%[12] - The company reported a comprehensive loss of $46,563,000 for the six months ended June 30, 2020, compared to $42,232,000 for the same period in 2019, indicating a worsening financial position[12] - For the six months ended June 30, 2020, Unity Biotechnology reported a net loss of $46.7 million, compared to a net loss of $42.4 million for the same period in 2019, representing an increase in losses of approximately 7%[24] - The company incurred a net loss of $18.7 million for the three months ended June 30, 2020, compared to a net loss of $23.7 million for the same period in 2019, representing a 21.3% improvement[117] - For the six months ended June 30, 2020, the net loss was $46.7 million, compared to $42.4 million for the same period in 2019, indicating an increase of 10.2%[129] Assets and Liabilities - Total current assets decreased from $129,487,000 as of December 31, 2019, to $123,537,000 as of June 30, 2020, a decline of approximately 4.4%[10] - Total liabilities increased significantly from $30,514,000 as of December 31, 2019, to $52,439,000 as of June 30, 2020, an increase of 72%[10] - The company’s accumulated deficit increased from $245,455,000 as of December 31, 2019, to $292,160,000 as of June 30, 2020, reflecting ongoing operational losses[10] - Cash and cash equivalents increased from $37,473,000 at the end of 2019 to $39,592,000 by June 30, 2020, reflecting a growth of 5.6%[10] - Cash, cash equivalents, and marketable securities totaled $111.8 million as of June 30, 2020, compared to $38.9 million at the beginning of the period[25] Operating Expenses - Research and development expenses for Q2 2020 were $16,123,000, down 12.7% from $18,468,000 in Q2 2019[12] - General and administrative expenses rose to $6,320,000 in Q2 2020, up 27.2% from $4,970,000 in Q2 2019[12] - Total operating expenses decreased by $1.1 million to $23.3 million for the three months ended June 30, 2020, compared to $24.5 million for the same period in 2019[146] - Research and development expenses decreased by $2.3 million to $16.1 million for the three months ended June 30, 2020, primarily due to a $5.3 million decrease in pre-clinical and manufacturing expenses[147] - General and administrative expenses increased by $1.4 million to $6.3 million for the three months ended June 30, 2020, driven by a $1.2 million increase in non-cash stock-based compensation[149] Cash Flow and Financing - Net cash used in operating activities was $44.4 million for the six months ended June 30, 2020, compared to $39.9 million for the same period in 2019, reflecting an 11.3% increase in cash outflow[21] - The company raised approximately $29.5 million through the sale of 4,107,870 shares of common stock under its ATM Offering Program during the six months ended June 30, 2020[158] - Cash provided by financing activities for the six months ended June 30, 2020, was $30.5 million, primarily from the sale of common stock through the ATM Offering Program[172] - The company expects to need substantial additional funding to support ongoing operations and drug development activities[160] Clinical Development and Research - The company plans to initiate a Phase 1 clinical study for UBX1325 in the second half of 2020, which will trigger a milestone payment of $1.0 million[84] - The company completed a Phase 1 clinical study of UBX0101 and initiated a Phase 2 clinical study, expecting top-line results for the 12-week endpoints in Q3 2020[191] - The company plans to continue substantial investments in the development of drug candidates UBX0101, UBX1325, and UBX1967, with ongoing Phase 2 and Phase 1b clinical studies initiated in late 2019 and early 2020[196] - The ongoing COVID-19 pandemic may cause delays and increase costs associated with clinical studies and regulatory approvals[196] - The company acknowledges that additional funds may not be available on acceptable terms, which could impact its ability to continue operations and product development[197] Market and Strategic Investments - The Company has made strategic investments in partners, including a non-controlling equity investment in Ascentage Pharma Group International, which went public in October 2019[37] - The fair value of the equity investment in Ascentage International rose to $7.8 million as of June 30, 2020, up from $5.5 million at December 31, 2019, with a change in fair value of $2.3 million for the six months ended June 30, 2020[75] - The Company has a contingent consideration liability related to agreements with Ascentage Pharma, with a potential maximum value of $5.6 million based on stock price as of June 30, 2020[72] COVID-19 Impact - The COVID-19 pandemic has impacted clinical trial operations, leading to amendments in study protocols to enable remote data collection[135] - The Company has implemented a reduced onsite staffing model in response to the COVID-19 pandemic, which may impact program prioritization[200] - The ongoing COVID-19 pandemic may cause delays and increase costs associated with clinical studies and regulatory approvals[196]