Aclaris Therapeutics(ACRS) - 2024 Q4 - Annual Report

Financial Performance - The company reported a net loss of $902.9 million in 2024, compared to a net loss of $770.8 million in 2023, representing an increase in losses of about 17.0%[554]. - Total revenue for 2024 was $18.72 million, a decrease of 40.5% from $31.25 million in 2023[556]. - Net loss for 2024 was $132.07 million, compared to a net loss of $88.48 million in 2023, representing a 49.2% increase in losses[556]. - The Company reported a comprehensive loss of $131.86 million for 2024, compared to a comprehensive loss of $87.69 million in 2023[556]. - The Company reported segment operating losses of $123.8 million for the year ended December 31, 2024, compared to $69.5 million for the year ended December 31, 2023[688]. - The Company’s total loss before income taxes was $132.1 million for the year ended December 31, 2024, compared to $88.8 million in 2023[688]. Assets and Liabilities - Total assets increased to $220.3 million as of December 31, 2024, compared to $197.4 million in 2023, reflecting a growth of approximately 11.4%[554]. - Total stockholders' equity slightly decreased to $155.6 million in 2024 from $157.2 million in 2023, a reduction of approximately 1.0%[554]. - Total current liabilities increased to $31.6 million in 2024 from $30.9 million in 2023, reflecting a growth of about 2.3%[554]. - The Company has an accumulated deficit of $902.86 million as of December 31, 2024[563]. - The Company has contingent consideration liabilities of $8.7 million as of December 31, 2024, up from $6.2 million in 2023, related to the acquisition of Confluence[676]. Cash and Cash Equivalents - Cash and cash equivalents decreased to $24.6 million in 2024 from $39.9 million in 2023, a decline of about 38.3%[554]. - The company had cash, cash equivalents, and marketable securities totaling $203.9 million as of December 31, 2024[563]. - Cash equivalents decreased from $32.177 million in 2023 to $22.245 million in 2024, a decline of about 30.9%[618]. Research and Development - Research and development expenses for 2024 were $33.59 million, down from $98.38 million in 2023, a reduction of 65.8%[556]. - Total research and development project spend was $17.9 million for the year ended December 31, 2024, down from $67.6 million in 2023[688]. - The Company incurred $86.91 million in in-process research and development expenses in 2024, significantly higher than $6.63 million in 2023[556]. Stock and Equity - The weighted average common shares outstanding increased to 107,850,124 in 2024 from 77,296,665 in 2023, reflecting a 39.5% increase[558]. - The Company issued warrants with an estimated fair value of $44.8 million, allowing the purchase of 14,281,985 shares of common stock at an initial exercise price of $0.00001 per share[631]. - The total potential shares of common stock excluded from the calculation of diluted net loss per share increased to 8,998,118 in 2024 from 7,941,395 in 2023, reflecting an increase in stock options and RSUs[648]. Revenue and Licensing - The Company recognized licensing revenue of $3.0 million in 2024 and $15.0 million in 2023 from the license agreement with Sun Pharmaceutical Industries, Inc.[669]. - The Company recognized licensing revenue of $13.2 million from Eli Lilly and Company in 2024, compared to $12.7 million in 2023[672]. - The Company’s licensing revenue was $12.7 million for the year ended December 31, 2024, compared to $14.7 million in 2023[688]. Employee Compensation and Workforce - Employee compensation expenses increased from $3.910 million in 2023 to $4.979 million in 2024, an increase of about 27.3%[627]. - The Company approved a workforce reduction of approximately 46% in December 2023, resulting in a severance expense of $2.7 million and cash severance payments of $5.6 million for the year ended December 31, 2024[683]. Tax and Deferred Tax Assets - The effective income tax rate for the Company was (0.0)% in 2024, compared to (0.4)% in 2023[658]. - The valuation allowance for deferred tax assets increased from $195.1 million in 2023 to $224.4 million in 2024, primarily due to increases in net operating losses and research and development tax credit carryforwards[661]. - As of December 31, 2024, the Company had federal net operating loss carryforwards of $469.4 million and state net operating loss carryforwards of $401.1 million, both beginning to expire in 2032[660].