Boundless Bio, Inc.(BOLD) - 2024 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) Unaudited Q1 2024 financial statements show a net loss of $15.4 million, total assets at $117.1 million, $15.8 million cash used in operations, and a subsequent $87.7 million IPO Condensed Balance Sheets As of March 31, 2024, total assets decreased to $117.1 million from $129.9 million at year-end 2023, primarily due to reduced short-term investments, while the stockholders' deficit widened to $141.2 million Condensed Balance Sheet Summary (in thousands) | Account | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $25,143 | $23,706 | | Short-term investments | $79,737 | $97,046 | | Total current assets | $112,161 | $124,204 | | Total assets | $117,077 | $129,894 | | Liabilities & Stockholders' Deficit | | | | Total current liabilities | $10,644 | $9,359 | | Convertible preferred stock | $247,617 | $247,617 | | Total stockholders' deficit | ($141,184) | ($127,082) | | Total liabilities, convertible preferred stock, and stockholders' deficit | $117,077 | $129,894 | Condensed Statements of Operations and Comprehensive Loss Q1 2024 net loss increased to $15.4 million from $11.7 million in Q1 2023, driven by higher operating expenses, particularly R&D at $13.1 million and G&A at $3.8 million Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Research and development | $13,129 | $9,503 | | General and administrative | $3,754 | $2,584 | | Total operating expenses | $16,883 | $12,087 | | Loss from operations | ($16,883) | ($12,087) | | Interest income | $1,421 | $395 | | Net loss | ($15,430) | ($11,719) | | Net loss per share, basic and diluted | ($12.27) | ($9.91) | Condensed Statements of Cash Flows Q1 2024 saw $15.8 million net cash used in operating activities, $18.1 million provided by investing activities, and $0.9 million used in financing activities, resulting in a $1.4 million net increase in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($15,776) | ($12,090) | | Net cash provided by investing activities | $18,137 | $22,166 | | Net cash provided by / (used in) financing activities | ($924) | $31 | | Net increase in cash and cash equivalents | $1,437 | $10,107 | Notes to Condensed Financial Statements Notes detail the company's clinical-stage oncology focus, a March 2024 reverse stock split, an April 2024 IPO raising $87.7 million, and sufficient liquidity for at least 12 months - The company is a clinical-stage precision oncology firm developing small molecule drugs (ecDTx) targeting extrachromosomal DNA (ecDNA)[13] - On March 19, 2024, the company completed a 1-for-19.5 reverse stock split of its common stock, with all share and per-share amounts retroactively adjusted[14] - On April 2, 2024, the company completed its IPO, raising approximately $87.7 million in net proceeds, with all outstanding convertible preferred stock converting into 14,740,840 shares of common stock prior to the offering[66] - The company believes existing cash, cash equivalents, short-term investments, and IPO net proceeds will fund operations for at least 12 months from the financial statement issuance date[16] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's ecDNA-directed therapeutics, including lead candidates BBI-355 and BBI-825 in Phase 1/2 trials, ongoing operating losses, and sufficient capital from the April 2024 IPO to fund operations into H2 2026 Overview Boundless Bio, a clinical-stage oncology company, focuses on ecDNA-targeted therapies, with lead candidates BBI-355 and BBI-825 in Phase 1/2 trials, and utilizes its proprietary Spyglass platform - Lead ecDTx, BBI-355 (CHK1 inhibitor), is in the Phase 1/2 POTENTIATE clinical trial, with preliminary data expected in H2 2024[73] - Second ecDTx, BBI-825 (RNR inhibitor), is in the Phase 1/2 STARMAP clinical trial, with preliminary data expected in H2 2025[74] - A third ecDTx program targeting a kinesin essential for ecDNA segregation is in discovery, with an IND submission planned for H1 2026[75] Results of Operations Q1 2024 operating expenses increased to $16.9 million, with R&D rising to $13.1 million due to program costs and personnel, and G&A growing to $3.8 million from higher personnel and professional fees R&D Expense Breakdown (in thousands) | Expense Category | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Direct Program Costs | | | | | BBI-355 | $2,231 | $1,798 | $433 | | BBI-825 | $2,136 | $1,019 | $1,117 | | Other development programs | $1,220 | $1,011 | $209 | | Total Direct Program Costs | $5,587 | $3,828 | $1,759 | | Indirect Program Costs | $7,542 | $5,675 | $1,867 | | Total R&D Expenses | $13,129 | $9,503 | $3,626 | - G&A expenses increased to $3.8 million in Q1 2024 from $2.6 million in Q1 2023, driven by higher personnel costs, stock-based compensation, and professional service fees[97] - Other income, net, increased by $1.1 million year-over-year, primarily due to higher interest income from Series C convertible preferred stock financing proceeds[98] Liquidity and Capital Resources As of March 31, 2024, the company held $104.9 million in cash and investments, with the April 2024 IPO raising $100.0 million gross, providing sufficient capital to fund operations into H2 2026 despite ongoing losses - As of March 31, 2024, the company held $104.9 million in cash, cash equivalents, and short-term investments[100] - In April 2024, the company completed its IPO, raising $100.0 million in gross proceeds[99] - Management believes IPO net proceeds combined with existing cash will fund operations into H2 2026[100] Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, Boundless Bio is not required to provide quantitative and qualitative disclosures about market risk[113] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with internal control over financial reporting evaluation not yet required for the newly public company - Management concluded that disclosure controls and procedures were effective as of the end of the quarter[114] - The company is not yet required to have management evaluate the effectiveness of its internal control over financial reporting until the Annual Report for the year ending December 31, 2025[115] PART II. OTHER INFORMATION Legal Proceedings The company is not currently a party to any material legal proceedings, with ordinary course legal matters not expected to have a material adverse impact - The company is not currently a party to any material legal proceedings[117] Risk Factors The company faces numerous risks including limited operating history, significant losses, dependence on future financing, unproven scientific approach, early-stage clinical programs, reliance on third parties, and intellectual property challenges - The company has a limited operating history, incurred $151.5 million in accumulated deficit as of March 31, 2024, and expects continued significant losses[120][121] - The company's scientific approach of targeting ecDNA is novel and unproven, potentially hindering the development of commercially viable products[134] - The company relies on third parties for clinical trial conduct and ecDTx manufacturing, increasing performance, compliance, and supply risks[119][179][182] - Successful commercialization may depend on the development and regulatory approval of an ecDNA companion diagnostic, which carries inherent development and regulatory risks[160][171] Unregistered Sales of Equity Securities and Use of Proceeds In Q1 2024, the company granted options for 1,375,088 common shares, and its April 2, 2024 IPO generated approximately $87.7 million in net proceeds, with no material change to the planned use of funds - In Q1 2024, the company granted options to purchase 1,375,088 shares of common stock at a weighted average exercise price of $11.23 per share[330] - The IPO on April 2, 2024, generated approximately $87.7 million in net proceeds after deducting $7.0 million in underwriting discounts and $5.3 million in other offering expenses[331] Defaults Upon Senior Securities The company reports no defaults upon senior securities - The company reports no defaults upon senior securities[333] Mine Safety Disclosures This item is not applicable to the company - This item is not applicable to the company[333] Other Information No officers or directors adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024 - No officers or directors adopted, modified, or terminated Rule 10b5-1 trading arrangements during the first quarter of 2024[333] Exhibits This section lists exhibits filed with Form 10-Q, including corporate governance documents, equity plans, employment agreements, and Sarbanes-Oxley Act officer certifications - Lists key corporate documents, including the Amended and Restated Certificate of Incorporation, Bylaws, and various equity incentive plans[335] - Includes required certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[335]