Financial Position - The company reported an accumulated deficit of $746.3 million as of September 30, 2024, primarily due to research and development expenses and general administrative costs [149]. - The company has raised approximately $666 million in net proceeds from equity securities sales since inception, with cash and cash equivalents of $52.6 million and investments of $192.1 million as of September 30, 2024 [150]. - The company anticipates needing to raise additional financing in the future to fund operations, including preclinical studies and clinical trials for various product candidates [159]. - The company expects to extend its cash runway into the second half of 2026 based on current business plans and available resources [157]. - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $52.6 million, along with investments amounting to $192.1 million [216]. - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates below $700.0 million and annual revenue under $100.0 million [212]. - The company will remain an emerging growth company until the earliest of December 31, 2026, or achieving total annual gross revenue of at least $1.235 billion [211]. - Future disruptions in financial institutions could adversely affect the company's access to cash and cash equivalents [217]. Research and Development - The ongoing ELiPSE-1 clinical trial for CNTY-101 has treated a total of 20 participants, with 19 evaluable for preliminary efficacy as of October 15, 2024 [151]. - The company plans to expand the clinical development of CNTY-101 into additional autoimmune disease indications, with multiple clinical sites activated in the U.S. and plans to expand to select European countries [152]. - A strategic internal portfolio prioritization in January 2023 led to the deprioritization of CNTY-103 and a focus on CNTY-102 and CNTY-107, which are believed to have higher market potential [153]. - The company completed a private placement offering in April 2024, raising $60 million in gross proceeds to support increased research and development activities [154]. - The company incurred $42.6 million in expenses under the FCDI Collaboration Agreement from inception through September 30, 2024 [170]. - The company expects to incur additional losses in the foreseeable future as it expands research and development efforts [197]. Revenue and Expenses - Collaboration revenue for the three months ended September 30, 2024, was $0.8 million, an increase from $0.1 million in the same period of 2023, reflecting a change of $0.7 million [180]. - For the nine months ended September 30, 2024, collaboration revenue was $2.4 million, compared to $2.0 million in 2023, indicating a change of $0.4 million [188]. - Research and development expenses for the three months ended September 30, 2024, were $27.2 million, up from $22.8 million in 2023, representing an increase of $4.4 million [182]. - Research and development expenses for the nine months ended September 30, 2024, totaled $77.9 million, an increase of $7.5 million from $70.4 million in 2023 [189]. - Total operating expenses for the nine months ended September 30, 2024, were $103.3 million, a slight decrease from $104.8 million in 2023, showing a reduction of $1.5 million [187]. - General and administrative expenses were $25.4 million for the nine months ended September 30, 2024, down from $26.1 million for the same period in 2023 [191]. - Personnel-related expenses decreased by $0.8 million, including a $0.3 million decrease in salary and benefits, and a $0.5 million decrease in stock compensation [190]. - The net loss for the three months ended September 30, 2024, was $31.2 million, an improvement from a net loss of $32.7 million in the same period of 2023, reflecting a change of $1.5 million [180]. - Interest income increased to $10.1 million for the nine months ended September 30, 2024, compared to $9.2 million for the same period in 2023, due to higher interest rates [193]. - The company recognized interest income of $3.3 million for the three months ended September 30, 2024, compared to $3.5 million in 2023 [185]. Investments and Acquisitions - The acquisition of Clade Therapeutics is expected to enhance the company's Allo-Evasion technology and expand its pipeline with three additional preclinical-stage programs [154]. - The company raised approximately $60 million from a private placement of 15,873,011 shares at $3.78 per share in April 2024 [196]. - Cash provided by investing activities was $16.9 million for the nine months ended September 30, 2024, down from $42.5 million for the same period in 2023 [201]. Market and Economic Conditions - The company has no material exposure to foreign currency fluctuations and does not engage in hedging activities [215]. - Inflation has not had a material effect on the company's financial statements, although it has increased costs related to labor and laboratory consumables [218]. - The company’s primary market risk exposure is interest income sensitivity, which is influenced by changes in U.S. interest rates [216]. - The company reported no material changes to its critical accounting policies during the nine months ended September 30, 2024 [214]. - The company has opted to use the extended transition period for complying with new or revised accounting standards [210].
Century Therapeutics(IPSC) - 2024 Q3 - Quarterly Report