Financial Performance - The net loss for the year ended December 31, 2024, was $64.767 million, compared to a net loss of $102.062 million in 2023, indicating an improvement in financial performance [650]. - The company reported a comprehensive loss of $64.716 million for 2024, compared to $101.139 million in 2023, reflecting a reduction in overall losses [650]. - The company reported a net loss of $64,767,000 for the year ended December 31, 2024, compared to a net loss of $102,062,000 for the previous year, representing a 36.5% improvement in losses [657]. - The loss from operations improved from $108.389 million in 2023 to $70.400 million in 2024, suggesting better operational efficiency [650]. - The company's accumulated deficit increased from $594.468 million in 2023 to $659.235 million in 2024, highlighting ongoing financial challenges [649]. Cash and Securities - As of December 31, 2024, the company held $76.8 million in cash, cash equivalents, and marketable securities, a decrease from $117.959 million in 2023 [636][649]. - Cash and cash equivalents at the end of 2024 were $37,573,000, an increase from $21,709,000 at the beginning of the year, indicating a net increase of $15,864,000 [657]. - The company's marketable securities totaled $39,183,000 as of December 31, 2024, compared to $92,585,000 as of December 31, 2023, indicating a decrease of about 58% [714]. - The fair value of the company's total financial assets was $73,229,000 as of December 31, 2024, down from $96,935,000 in the previous year, reflecting a decline of approximately 24% [721]. Research and Development - Research and development expenses decreased from $61.419 million in 2023 to $40.179 million in 2024, showing a reduction in operational costs [650]. - Total research and development expenses for the year ended December 31, 2024, were $40.2 million, down from $61.4 million in 2023, reflecting a decrease of approximately 34.5% [814]. - The Company plans to reduce its workforce by approximately 55% as part of a restructuring plan aimed at aligning its workforce with strategic research and development needs [817]. Funding and Future Outlook - The company anticipates continued operating losses for the foreseeable future and will need to raise additional funding to achieve profitability [17]. - The company plans to seek additional funding through public or private equity offerings, debt financings, and strategic alliances to support its operations and product development [663]. - The company anticipates incurring additional losses until it can generate significant sales from its product candidates currently in development [660]. Shareholder Impact - The weighted average common shares outstanding increased from 54,743,490 in 2023 to 60,405,036 in 2024, indicating potential dilution for existing shareholders [650]. - The total number of shares authorized under the Incentive Plan as of December 31, 2024, was 15,848,867, with 8,604,096 shares available for future grants [785]. - The weighted average number of stock options excluded from diluted shares increased from 9,290,308 in 2023 to 11,554,173 in 2024, indicating a rise of approximately 24.4% [707]. Impairment and Expenses - The Company recognized impairment expenses for property and equipment of $2.7 million in 2024 and $3.2 million in 2023, indicating a decrease of approximately 15.6% year-over-year [679]. - The Company recorded impairment losses of $5,233,000 for the year ended December 31, 2024, compared to $5,390,000 in 2023, showing a slight decrease of about 3% [724]. - The Company recognized an impairment expense of $4.8 million in 2024, including $2.5 million for ROU assets and $2.3 million for property and equipment, due to the carrying values exceeding estimated undiscounted cash flows [751]. Lease and Sublease Agreements - The Company subleased approximately 8,000 square feet under Sublease Agreement A for an annual base rent of $0.1 million, increasing by 2.75% annually, with the sublease term running from November 1, 2023, to March 31, 2029 [735]. - The Company subleased approximately 29,000 square feet under Sublease Agreement B for an annual base rent of $0.9 million, with the sublease term from March 1, 2024, to August 2026 [738]. - The total undiscounted lease payments for the Company's operating leases are projected to be $41.182 million, with total lease liabilities amounting to $25.476 million after imputed interest [752]. Tax and Deferred Assets - The Company had a net operating loss carryforward of $339.1 million for federal tax purposes as of December 31, 2024, an increase from $265.5 million in 2023 [804]. - The valuation allowance for deferred tax assets increased by $19.1 million during the year ended December 31, 2024 [802]. - The Company had no accrued interest or penalties related to uncertain tax positions as of December 31, 2024 [809].
Passage BIO(PASG) - 2024 Q4 - Annual Report