Foghorn Therapeutics(US:FHTX)2025-03-06 21:16Financial Performance - The company reported net losses of $98.4 million for the year ended December 31, 2023, and an accumulated deficit of $558.2 million as of December 31, 2024 [346]. - The net loss for the year ended December 31, 2024, was $86.6 million, an improvement of $11.8 million compared to a net loss of $98.4 million in 2023 [375]. - For the year ended December 31, 2024, the company reported a net loss of $86.6 million, compared to a net loss of $98.4 million for 2023, indicating a 12.5% improvement in losses year-over-year [421]. - The company experienced a net cash used in operating activities of $100.4 million for 2024, a decrease from $118.1 million in 2023, reflecting a 15% reduction in cash outflows [421]. Revenue and Collaboration Agreements - The company has not generated any revenue from product sales and does not expect to do so in the near future [351]. - The company recognized total deferred revenue of $337.8 million related to the Lilly Collaboration Agreement, including a $300.0 million upfront payment [357]. - The company recognized $22.6 million and $17.1 million of revenue under the Lilly Collaboration Agreement for the years ended December 31, 2024 and 2023, respectively [357]. - Collaboration revenue for the year ended December 31, 2024, was $22.6 million, down from $34.2 million in 2023, a decrease of $11.6 million attributed to the termination of the Merck Collaboration Agreement [376]. - The Merck Collaboration Agreement was terminated effective November 7, 2023, resulting in the recognition of all remaining deferred revenue [500]. - The Company recorded $17.0 million of revenue under the Merck Collaboration Agreement for the year ended December 31, 2023 [499]. Operating Expenses - The company expects to incur significant operating losses and increasing expenses for at least the next several years as it advances its product candidates [346]. - Total operating expenses decreased to $125.3 million in 2024 from $142.1 million in 2023, a reduction of $16.8 million [375]. - Research and development expenses were $94.5 million for the year ended December 31, 2024, compared to $109.7 million in 2023, reflecting a decrease of $15.2 million [377]. - General and administrative expenses decreased to $28.4 million in 2024 from $32.4 million in 2023, a reduction of $4.0 million [378]. - The company expects substantial increases in expenses related to ongoing clinical activities, including the Phase 1 clinical trial of FHD-909 partnered with Lilly [393]. Cash and Financing Activities - As of December 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $243.7 million [385]. - The company expects its cash, cash equivalents, and marketable securities to be sufficient to fund its operating expenses and capital expenditures for at least the next 12 months [421]. - The company raised net proceeds of $102.8 million from a public offering that closed on May 22, 2024, selling 12,743,039 shares at a public offering price of $5.51 per share [420]. - The company reported a net cash provided by financing activities of $105.4 million in 2024, a significant increase compared to $1.8 million in 2023 [421]. Impairments and Taxation - The company recorded a non-cash impairment of long-lived assets of $2.4 million in 2024, with no impairment charges in 2023 [382]. - The provision for income taxes was $0 in 2024, compared to $4.2 million in 2023, primarily due to the recognition of taxable income from the Lilly Collaboration Agreement [384]. - The valuation allowance against net deferred tax assets increased by $23.5 million and $31.1 million for the years ended December 31, 2024 and 2023, respectively [505]. - The Company has established a full valuation allowance against net deferred tax assets due to uncertainty in realizing benefits from these items [504]. Research and Development - The company has a pipeline that has the potential to help more than 500,000 cancer patients [339]. - The company incurred research and development expenses, which include salaries, bonuses, and external vendor costs, reflecting its commitment to innovation and development [446]. - Personnel expenses for research and development decreased to $22.5 million in 2024 from $29.5 million in 2023, a reduction of 23.6% [524]. Marketable Securities and Assets - As of December 31, 2024, the company reported total available for sale marketable securities of $188.293 million, with U.S. treasury notes valued at $35.394 million and corporate notes and bonds totaling $107.905 million [467]. - The company's property and equipment, net, increased to $9.964 million in 2024 from $12.956 million in 2023, with a depreciation and amortization expense of $3.1 million for 2024 [469]. - Total liabilities decreased from $363.1 million in 2023 to $329.5 million in 2024, while stockholders' deficit improved from $(77.2) million to $(45.5) million [408]. Stock-Based Compensation - The company incurred stock-based compensation expense of $11.9 million in 2024, down from $16.2 million in 2023, reflecting a 26.5% decrease [421]. - The weighted average grant-date fair value of stock options granted was $3.14 per share in 2024, down from $6.12 per share in 2023 [484]. - Total unrecognized compensation cost related to unvested options was $16.3 million as of December 31, 2024, expected to be recognized over a weighted average period of 2.1 years [485].