Aura Biosciences(AURA) - 2024 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended September 30, 2024, was $21,042, compared to a net loss of $18,512 for the same period in 2023, reflecting a 8.2% increase in losses[7] - For the nine months ended September 30, 2024, the company reported a net loss of $61.085 million, compared to a net loss of $54.277 million for the same period in 2023, representing an increase in loss of approximately 12.5%[70] - The basic and diluted net loss per share for the nine months ended September 30, 2024, was $(1.23), compared to $(1.43) for the same period in 2023, indicating an improvement of approximately 13.9%[70] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $23,232, an increase of 13.5% compared to $20,488 for the same period in 2023[7] - Research and development expenses for the nine months ended September 30, 2024, were $50,968, up 13.5% from $44,952 in the prior year[7] - The company reported a stock-based compensation expense of $8,785 for the nine months ended September 30, 2024, compared to $6,169 for the same period in 2023, marking a 42.5% increase[11] Cash Flow and Liquidity - Cash used in operating activities for the nine months ended September 30, 2024, was $55,853, compared to $46,460 for the same period in 2023, indicating a 20.2% increase in cash outflow[11] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, totaled $26,175, down from $56,372 at the end of September 30, 2023[11] - As of September 30, 2024, cash and cash equivalents decreased to $25.4 million from $55.6 million in 2023, representing a decline of approximately 54%[12] Stock and Equity - Weighted average common stock outstanding for the three months ended September 30, 2024, was 49,663,532, compared to 38,185,197 for the same period in 2023, reflecting a 30.0% increase in shares outstanding[7] - The total stockholders' equity as of September 30, 2024, was $174,668, compared to $151,718 as of September 30, 2023, indicating a 15.1% increase[8] - The Company had 49,778,861 shares of common stock issued and outstanding as of September 30, 2024, compared to 49,350,788 shares at December 31, 2023[34] Marketable Securities - As of September 30, 2024, the Company had total marketable securities valued at $185.087 million, with no unrealized losses reported[32] - The total financial assets as of September 30, 2024, amounted to $173.9 million, with cash equivalents of $24.9 million and marketable securities of $148.9 million[23] Future Capital Needs - The company has sufficient cash and cash equivalents to fund its operating expenses for at least the next 12 months, but future viability depends on raising additional capital[18] - The company has filed a new shelf registration statement for an aggregate offering price of $350 million, superseding the previous registration[17] Lease Obligations - The Company has future minimum lease payments totaling $28.468 million as of September 30, 2024, with lease liabilities net of current portion amounting to $15.958 million[53] - The weighted-average remaining lease term for operating leases is 7.84 years, with a weighted-average discount rate of 10.71%[52] Research and Development - The company is developing Virus-Like Drug Conjugates (VDCs) targeting solid tumors, with a focus on ocular and urologic oncology[14] - The lead candidate, bel-sar, is currently in a global Phase 3 trial for treating small choroidal melanoma and is also being explored for bladder cancer[14] Taxation - The company recorded an income tax provision of $0.1 million for the nine months ended September 30, 2024, resulting in an effective tax rate of 0.1%[72] - As of September 30, 2024, the company had no unrecognized income tax benefits that would reduce its effective tax rate if recognized[74] - The company has recorded a full valuation allowance against its net deferred tax assets due to a history of losses, indicating uncertainty in realizing these assets[73] Miscellaneous - There were no subsequent events identified that require disclosure as of the date of filing of the unaudited condensed consolidated financial statements[75] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[131]