Financial Performance - The company reported net losses of $17.5 million and $8.7 million for the three months ended September 30, 2024 and 2023, respectively, and $58.3 million and $21.3 million for the nine months ended September 30, 2024 and 2023, respectively[129]. - The net loss for the three months ended September 30, 2024, was $17.5 million, compared to a net loss of $8.7 million for the same period in 2023, representing an increase of $8.8 million[158]. - The company reported a net loss of $58.3 million for the nine months ended September 30, 2024, compared to a net loss of $21.3 million for the same period in 2023, indicating a $37.0 million increase in losses[163]. - The company incurred $50.4 million in cash used in operating activities during the nine months ended September 30, 2024, primarily due to a net loss of $58.3 million[171]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(50.4) million, compared to $(16.8) million for the same period in 2023[175]. - General and administrative expenses for the nine months ended September 30, 2024, were $15.8 million, up from $5.2 million in the same period of 2023, representing a $10.6 million increase[165]. Research and Development - The company completed a Phase 1 trial for RAP-219 and is currently recruiting for a Phase 2a trial in adult patients with drug-resistant focal epilepsy, expecting topline results in mid-2025[124]. - The company has initiated a second MAD clinical trial for RAP-219, with topline results expected in the first quarter of 2025[124]. - The company anticipates a substantial increase in research and development expenses as it advances RAP-219 through clinical development and regulatory approval[144]. - Research and development expenses for the three months ended September 30, 2024, were $15.5 million, an increase of $8.0 million from $7.6 million in the same period of 2023[158]. - Research and development expenses totaled $43.7 million for the nine months ended September 30, 2024, up from $16.2 million in the same period of 2023, reflecting a $27.5 million increase[164]. - During the nine months ended September 30, 2024, the company recognized $1.1 million in research and development expenses related to NeuroPace services[183]. Financial Position and Funding - As of September 30, 2024, the company had an accumulated deficit of $103.8 million and expects operating losses to increase substantially due to ongoing clinical trials and research activities[129]. - The company raised aggregate gross proceeds of $424.4 million from financings, with cash, cash equivalents, and short-term investments totaling $320.7 million as of September 30, 2024[128]. - Cash and cash equivalents as of September 30, 2024, were $39.3 million, with short-term investments totaling $281.3 million[170]. - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments of $320.7 million, expected to fund operations through at least 12 months from the issuance date of the financial statements[178]. - Future funding requirements are anticipated to increase substantially due to ongoing activities, particularly in clinical trials and product development[178]. - The company may need to raise substantial additional capital in the future to support ongoing product development and commercialization efforts[179]. Expenses and Income - Total operating expenses for the three months ended September 30, 2024, were $21.6 million, compared to $9.6 million in the same period of 2023, resulting in an increase of $12.1 million[158]. - General and administrative expenses for the three months ended September 30, 2024, were $6.1 million, up from $2.0 million in the same period of 2023, reflecting an increase of $4.1 million[158]. - Interest income for the three months ended September 30, 2024, was $4.1 million, an increase of $3.2 million from $0.9 million in the same period of 2023[158]. - Interest income for the nine months ended September 30, 2024, was $8.6 million, compared to $1.2 million for the same period in 2023, indicating a $7.4 million increase[167]. Agreements and Collaborations - The company entered into a license agreement with Janssen Pharmaceutical NV, which includes potential milestone payments of up to $76 million for development and $40 million for sales of TARPg8 products[135]. - The NeuroPace Agreement allows the company to utilize data from RNS systems in clinical trials, with exclusivity provisions preventing NeuroPace from providing similar services to competitors[139][140]. - An upfront payment of $1.0 million was made to Janssen Pharmaceutical NV, with potential milestone payments totaling up to $141 million for product development and sales[181]. - The company expects to pay NeuroPace up to $3.7 million over two years for services related to the Phase 2a clinical trial of RAP-219[182]. - The change in fair value of preferred stock tranche right liability was $7.4 million for the nine months ended September 30, 2024, compared to $1.0 million for the same period in 2023, reflecting a $6.4 million increase[168].
Rapport Therapeutics, Inc.(RAPP) - 2024 Q3 - Quarterly Report