GlycoMimetics(GLYC) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, total costs and expenses were $11,233,798, an increase from $9,813,496 for the same period in 2023, representing a 14.4% increase[8]. - The net loss for the nine months ended September 30, 2024, was $30,656,406, compared to a net loss of $27,820,780 for the same period in 2023, indicating an increase of 10.3%[10]. - The company reported a net loss of $9,824,000 for Q3 2024, which is a 7% increase from a net loss of $9,203,000 in Q3 2023[100]. - The company incurred a net loss of $30.7 million and had net cash flows used in operating activities of $27.4 million during the nine months ended September 30, 2024[16]. - Total costs and expenses for the nine months ended September 30, 2024, were $32.7 million, compared to $29.7 million for the same period in 2023, reflecting an increase of $3.0 million (10%) year-over-year[108]. Cash and Liquidity - The company reported cash and cash equivalents of $14,391,664 at the end of the period, down from $49,407,629 at the same time last year, a decrease of 70.9%[10]. - As of September 30, 2024, the Company had $14.4 million in cash and cash equivalents and no committed source of additional funding[16]. - The company anticipates that its current cash and cash equivalents will fund operations until the Merger closes, but there are risks associated with this estimate[90]. - The company is facing substantial doubt about its ability to continue as a going concern beyond one year from the issuance of the financial statements[16]. - The company expects its current cash resources will only be sufficient to fund operations through the closing of the contemplated Merger and Private Placement[17]. Workforce and Restructuring - The company reduced its workforce by approximately 80% in July 2024 to conserve cash resources[12]. - During the three months ended September 30, 2024, the Company incurred severance charges of $5.0 million in connection with a corporate restructuring[24]. - The Company recognized restructuring charges related to reorganization plans, which include employee termination benefits and contract termination costs[22]. - The company recorded $5.0 million in severance and related benefits charges during the three months ended September 30, 2024, due to a workforce reduction of approximately 80%[72]. Merger and Strategic Transactions - GlycoMimetics, Inc. entered into a merger agreement with Crescent Biopharma, Inc., expected to close in the second quarter of 2025, with Crescent stockholders owning approximately 86.2% of the combined company pre-merger[13]. - The merger is intended to qualify as a tax-free reorganization, with adjustments to the exchange ratio based on the company's net cash at closing[14]. - The company plans to merge with Crescent Biopharma, Inc., with the merger expected to close in the second quarter of 2025, subject to stockholder approval[13]. - The company expects to raise approximately $200 million in a private placement immediately following the merger[15]. - The company plans to initiate strategic transactions if the merger does not close by the second quarter of 2025 to raise additional capital[18]. Research and Development - Research and development expenses for the three months ended September 30, 2024, were $1,715,347, down from $5,291,790 in the same period of 2023, reflecting a decrease of 67.5%[8]. - Research and development expenses for the nine months ended September 30, 2024, were $14,026,000, a decrease of 5% from $14,783,000 in the same period of 2023[101]. - The Phase 3 trial of uproleselan did not achieve a statistically significant improvement in overall survival compared to chemotherapy alone, leading to a strategic review of alternatives[82][83]. - Following the Phase 3 trial results for uproleselan, the company decided not to conduct an additional clinical trial due to insufficient capital resources[83]. - The company is collaborating with Apollomics for the development of GMI-1687 and uproleselan in Greater China, although GMI-1687 is not actively being developed[88]. Stock and Equity - The company had 15,136,298 stock options and RSUs outstanding for the nine months ended September 30, 2024, compared to 10,971,874 for the same period in 2023[38]. - The Company has $8,830,814 of total unrecognized compensation expense related to unvested options under the 2013 Plan, expected to be recognized over approximately 2.9 years[55]. - The total intrinsic value of options exercised during the nine months ended September 30, 2024, was $4,091, compared to $82,093 for the same period in 2023[55]. - The Company issued and sold 9,822,930 shares of common stock under the 2022 Sales Agreement at a weighted average price of $3.01, generating net proceeds of $28.7 million during the nine months ended September 30, 2023[50]. - The Company's board of directors approved an increase in total authorized shares of common stock from 100,000,000 to 150,000,000 shares[49].