Assembly Biosciences(ASMB) - 2024 Q3 - Quarterly Report

Financial Performance - The net loss for the three months ended September 30, 2024, was $9,613,000, compared to a net loss of $14,420,000 for the same period in 2023, reflecting a reduction in losses of about 33.5%[7]. - The net loss for the nine months ended September 30, 2024, was $29,842,000, compared to a net loss of $50,266,000 for the same period in 2023, indicating a reduction in losses[11]. - The company reported a net loss of $9.6 million for the three months ended September 30, 2024, compared to a net loss of $14.4 million for the same period in 2023, representing a 33.5% improvement[25]. - Basic net loss per share for the nine months ended September 30, 2024, was $(5.12), an improvement from $(11.61) in the same period of 2023[25]. - Comprehensive loss for the three months ended September 30, 2024, was $9,476,000, compared to $14,370,000 for the same period in 2023, showing a 33.5% improvement[7]. Revenue and Collaboration - Collaboration revenue from a related party for the three months ended September 30, 2024, was $6,845,000, compared to $0 for the same period in 2023[7]. - The company recognized $6.8 million in collaboration revenue from the Gilead Collaboration Agreement during the three months ended September 30, 2024[27]. - Collaboration revenue recognized from the Gilead Collaboration Agreement was $6.8 million for the three months ended September 30, 2024, and $21.2 million for the nine months ended September 30, 2024[52]. - The total transaction price for the Gilead Collaboration Agreement was determined to be $90.7 million as of September 30, 2024[50]. - The Company entered into a collaboration agreement with Gilead in October 2023, receiving total proceeds of $100.0 million[46]. Assets and Liabilities - As of September 30, 2024, total assets decreased to $100,262,000 from $136,823,000 as of December 31, 2023, representing a decline of approximately 26.5%[6]. - Total liabilities decreased to $74,259,000 as of September 30, 2024, from $95,726,000 as of December 31, 2023, a decrease of approximately 22.4%[6]. - The accumulated deficit increased to $815,590,000 as of September 30, 2024, from $785,748,000 as of December 31, 2023[6]. - Total stockholders' equity decreased from $41,714,000 as of September 30, 2023, to $26,003,000 as of September 30, 2024, indicating a significant decline[10]. - Total current liabilities rose to $41.635 million from $39.225 million, an increase of about 6.1%[6]. Cash Flow and Expenses - Cash and cash equivalents increased to $28,452,000 from $19,841,000, marking a growth of about 43.3%[6]. - The company reported net cash used in operating activities of $50,710,000 for the nine months ended September 30, 2024, slightly lower than $50,904,000 for the same period in 2023[11]. - The company reported total operating expenses of $17,801,000 for the three months ended September 30, 2024, compared to $15,048,000 for the same period in 2023, an increase of approximately 18.4%[7]. - Research and development expenses rose to $13,515,000 for the three months ended September 30, 2024, up from $10,824,000 in the same period of 2023, an increase of approximately 24.9%[7]. - The company incurred $0.3 million in reimbursable expenses due to Gilead during the nine months ended September 30, 2024[52]. Stock and Equity - The weighted average common shares outstanding for the three months ended September 30, 2024, was 6,351,431, compared to 4,380,444 for the same period in 2023[7]. - The company completed a reverse stock split at a ratio of 1-for-12, reducing the number of shares outstanding from 65.8 million to 5.5 million[22]. - The exercise price of warrants sold was set at $17.00 per share, with an expiration date of June 18, 2029[41]. - The company has $2.9 million of total unrecognized stock-based compensation related to outstanding equity awards as of September 30, 2024[44]. - The weighted average number of common shares outstanding increased to 6,351,431 for the three months ended September 30, 2024, up from 4,380,444 in the same period of 2023[25]. Future Outlook - The company has not generated any revenue from product sales to date and continues to incur substantial losses as it develops its product pipeline[13]. - The company expects to continue incurring substantial losses for the next several years as it advances its product development efforts[13]. - The company has sufficient funds to meet its operating requirements for at least the next twelve months, but may need to secure additional funding through various means[13]. - The company intends to secure additional funding through strategic relationships, public or private equity or debt financings, and grants[13]. - Gilead will support the collaboration with extension fees of $75.0 million in each of the third, fifth, and seventh years of the collaboration[48].