Workflow
Zura(ZURA) - 2024 Q3 - Quarterly Report
ZURAZura(ZURA)2024-11-07 12:11

Financial Performance - The net loss attributable to Class A Ordinary Shareholders for the three months ended September 30, 2024, was 22,942,000,comparedtoalossof22,942,000, compared to a loss of 8,270,000 for the same period in 2023, representing an increase in loss of approximately 177.5%[15]. - For the three months ended September 30, 2023, the net loss was 20.702million,comparedtoanetlossof20.702 million, compared to a net loss of 8.270 million for the same period in the previous year[18]. - As of September 30, 2024, total shareholders' equity was 154.587million,withanaccumulateddeficitof154.587 million, with an accumulated deficit of 142.272 million[19]. - As of September 30, 2024, the company reported a net loss of 20.7millionforthethreemonthsand20.7 million for the three months and 38.8 million for the nine months, with an accumulated deficit of 142.3million[122].AssetsandLiabilitiesAsofSeptember30,2024,thecompanyreportedtotalcurrentassetsof142.3 million[122]. Assets and Liabilities - As of September 30, 2024, the company reported total current assets of 188,975,000, a significant increase from 100,843,000asofDecember31,2023,representinganincreaseofapproximately87100,843,000 as of December 31, 2023, representing an increase of approximately 87%[11]. - The company reported a total liability of 18,244,000 as of September 30, 2024, down from 21,292,000asofDecember31,2023,indicatingadecreaseofabout14.421,292,000 as of December 31, 2023, indicating a decrease of about 14.4%[12]. - The company’s total shareholders' equity increased to 154,587,000 as of September 30, 2024, from 60,871,000asofDecember31,2023,representinganincreaseofapproximately154.060,871,000 as of December 31, 2023, representing an increase of approximately 154.0%[13]. - The total assets of the company as of September 30, 2024, were 189,071,000, up from 100,843,000asofDecember31,2023,reflectinganincreaseofapproximately87.2100,843,000 as of December 31, 2023, reflecting an increase of approximately 87.2%[11]. Cash Flow and Financing - The company had cash and cash equivalents of 188.221 million as of September 30, 2023, up from 103.859millionatthebeginningoftheperiod[28].CashprovidedbyfinancingactivitiesfortheninemonthsendedSeptember30,2024was103.859 million at the beginning of the period[28]. - Cash provided by financing activities for the nine months ended September 30, 2024 was 110.7 million, consisting of 62.5millionfromClassAOrdinarySharesissuanceand62.5 million from Class A Ordinary Shares issuance and 50.0 million from Pre-Funded Warrants[180]. - The company raised a total of 10.0millionfromthesaleofconvertiblepreferredstock,10.0 million from the sale of convertible preferred stock, 7.6 million from a promissory note, 56.7millionfromabusinesscombination,and56.7 million from a business combination, and 80.0 million from an April 2023 private placement[121]. - The company completed an April 2024 Private Placement, issuing 18,732,301 Class A Ordinary Shares at 3.108pershare,raisingapproximately3.108 per share, raising approximately 108.3 million[79]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were 19,319,000,comparedto19,319,000, compared to 10,187,000 for the same period in 2023, reflecting an increase of approximately 90.0%[15]. - General and administrative expenses rose by 7.1millionto7.1 million to 13.3 million for the three months ended September 30, 2024, reflecting a 114% increase year-over-year[154]. - Research and development expenses for the nine months ended September 30, 2024, were 15,161,000,comparedto15,161,000, compared to 37,079,000 for the same period in 2023, showing a decrease of approximately 59.1%[15]. - Research and development expenses increased by 2.1millionto2.1 million to 6.0 million for the three months ended September 30, 2024, representing a 52% increase compared to the same period in 2023[153]. Shareholder Equity and Shares - The company issued 20,090,128 Class A Ordinary Shares in connection with an April 2024 private placement, raising 55.221millionafter55.221 million after 7.2 million in transaction costs[19]. - The company had 65,293,530 Class A Ordinary Shares outstanding as of September 30, 2024[19]. - The total number of shares issuable upon exercise of options to purchase Class A Ordinary Shares increased from 5,681,471 as of September 30, 2023, to 9,318,906 as of September 30, 2024[47]. - The company authorized 300,000,000 Class A Ordinary Shares and 1,000,000 preferred shares as of March 16, 2023[74]. Future Obligations and Risks - The company is obligated to make future milestone payments to Lilly totaling up to 155millionandsalesmilestonepaymentsupto155 million and sales milestone payments up to 440 million under the 2022 and 2023 Lilly Licenses[70]. - The company has not yet conducted any clinical trials and has no product candidates approved for sale, with no revenue generated from product sales[121]. - The company may need to rely on additional financing to achieve its business objectives, as adequate financing may not be available on acceptable terms[176]. - The company has not included future milestone or royalty payments in its financial obligations due to their uncertain timing and amounts[189]. Management and Corporate Structure - A CEO transition was approved, with Robert Lisicki set to take over from founder Someit Sidhu effective April 8, 2024[143]. - The Company completed a business combination on March 20, 2023, resulting in the establishment of Zura Bio Limited as the new holding company[30]. - The business combination has been accounted for as a reverse recapitalization, with Legacy Zura as the accounting acquirer[31]. Regulatory and Compliance - The Company’s future product candidates require FDA approvals, and there is no assurance that any will receive necessary approvals[39]. - The Company’s financial statements are prepared in accordance with U.S. GAAP and may not be comparable to those of other public companies due to its emerging growth status[34]. - The company qualifies as a "smaller reporting company" under the Securities Act and Exchange Act, with a market value of Class A Ordinary Shares held by non-affiliates being less than $250 million[196].