Jasper Therapeutics(JSPR) - 2024 Q4 - Annual Report

Financial Performance - The company incurred net losses of $71.3 million and $64.5 million for the years ended December 31, 2024 and 2023, respectively [426]. - The company generated negative operating cash flows of $62.6 million and $52.1 million for the years ended December 31, 2024 and 2023, respectively [426]. - As of December 31, 2024, the company had an accumulated deficit of $240.9 million [426]. - Net loss increased by $6.8 million, from $64.5 million in 2023 to $71.3 million in 2024, an 11% increase [446]. - Total other income, net increased by $0.6 million, from $4.4 million in 2023 to $5.0 million in 2024 [453]. - Cash provided by financing activities for the year ended December 31, 2024, was $47.9 million, primarily from the issuance and sale of common stock [477]. - The company anticipates substantial additional funding will be required to support ongoing operations and product development initiatives [464]. - The company has significant uncertainties regarding its ability to continue as a going concern within one year from the date of filing the Annual Report due to recurring losses and negative cash flows [464]. Research and Development - The company commenced the Phase 1b/2a BEACON study in Chronic Spontaneous Urticaria (CSU) in late 2023, with 100% complete responses observed at the 240mg dose level [421]. - In the Phase 1b/2a SPOTLIGHT study for Chronic Inducible Urticaria (CIndU), 93% of participants achieved a clinical response across the 40mg and 120mg dosing cohorts [429]. - The company is developing briquilimab as a one-time conditioning therapy for severe combined immunodeficiency (SCID) patients undergoing a second stem cell transplant [422]. - The company has an exclusive license agreement with Amgen for the development and commercialization of briquilimab in all indications and territories worldwide [424]. Expenses and Costs - Research and development expenses increased by $4.0 million, from $51.8 million in 2023 to $55.8 million in 2024, representing an 8% increase [447]. - Personnel-related costs in research and development rose by $4.9 million, from $10.0 million in 2023 to $14.9 million in 2024, a 49% increase [448]. - General and administrative expenses increased by $3.3 million, from $17.1 million in 2023 to $20.4 million in 2024, a 20% increase [452]. - Total operating expenses rose by $7.4 million, from $68.9 million in 2023 to $76.2 million in 2024, an 11% increase [446]. - Program costs decreased by $2.5 million, from $36.8 million in 2023 to $34.3 million in 2024, primarily due to a significant reduction in CMO expenses [450]. Cash and Liquidity - The company had cash and cash equivalents of $71.6 million as of December 31, 2024 [427]. - Cash used in investing activities was $0.5 million for the year ended December 31, 2024, primarily for purchases of property and equipment [476]. - The company filed a universal shelf registration statement allowing for the offering of up to $250.0 million in securities, effective until May 5, 2026 [459]. - An underwritten offering in February 2024 raised net proceeds of $47.2 million from the issuance of 3,900,000 shares of common stock [461]. - As of December 31, 2024, the company had cash and cash equivalents totaling $71.6 million, with no outstanding debt [491]. - The company intends to maintain its portfolio of cash equivalents in institutional market funds composed of U.S. Treasury and U.S. Treasury-backed securities to minimize future interest rate risk [491]. Other Considerations - The company has lease commitments of $1.2 million within the next 12 months and $0.7 million for the remainder of the lease term as of December 31, 2024 [468]. - The company is obligated to pay up to $9.0 million in milestone payments under the 2021 Stanford License Agreement, with no royalties due as of December 31, 2024 [469]. - The company has not experienced material foreign currency transaction gains or losses, and a hypothetical 10% change in exchange rates would not materially affect its financial statements [492]. - Inflation has increased costs related to labor and clinical trials, but it has not had a material effect on the company's consolidated financial statements [493]. - The company is classified as a "smaller reporting company," allowing it to provide only two years of audited financial statements until certain thresholds are met, including a market value of common stock held by non-affiliates exceeding $250 million [490].