Zura(US:ZURA)2024-11-07 12:11Financial Performance - The net loss attributable to Class A Ordinary Shareholders for the three months ended September 30, 2024, was $22,942,000, 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 $20.702 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 $154.587 million, with an accumulated deficit of $142.272 million[19]. - As of September 30, 2024, the company reported a net loss of $20.7 million for the three months and $38.8 million for the nine months, with an accumulated deficit of $142.3 million[122]. Assets and Liabilities - As of September 30, 2024, the company reported total current assets of $188,975,000, a significant increase from $100,843,000 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 $21,292,000 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 $60,871,000 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 $100,843,000 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 $103.859 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 $62.5 million from Class A Ordinary Shares issuance and $50.0 million from Pre-Funded Warrants[180]. - The company raised a total of $10.0 million from the sale of convertible preferred stock, $7.6 million from a promissory note, $56.7 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 $3.108 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, 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 $7.1 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, 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 $2.1 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 $55.221 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 $155 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].