Financial Performance - The company incurred net losses of $73.9 million and $35.1 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $229.9 million as of December 31, 2024[710]. - The company has not generated any revenue from product sales since inception and anticipates continued operating losses for the foreseeable future[715]. - Total operating expenses increased by 103.6% from $40.3 million in 2023 to $82.0 million in 2024, primarily due to a $51.7 million expense related to acquired in-process research and development[736][737]. - The accumulated deficit increased from $156.0 million in 2023 to $229.9 million in 2024[744]. Cash and Investments - The company had cash, cash equivalents, and marketable securities of $212.5 million as of December 31, 2024, sufficient to fund operations through 2027 based on current estimates[711]. - As of December 31, 2024, cash, cash equivalents, and marketable securities totaled $212.5 million, up from $106.8 million in 2023[744]. - Net cash used in operating activities was $15.6 million in 2024, compared to $20.6 million in 2023, reflecting a net loss of $73.9 million[752][753]. - Net cash used in investing activities was $121.1 million in 2024, primarily due to purchases of marketable securities totaling $132.2 million[754]. - Net cash provided by financing activities was $130.7 million in 2024, mainly from the issuance of common stock in a private placement[757]. Research and Development - Research and development expenses totaled $65.995 million for the year ended December 31, 2024, a significant increase from $15.411 million in 2023[726]. - Budoprutug, the company's cornerstone product candidate, showed a 60% complete remission rate in a Phase 1b clinical trial for primary membranous nephropathy[707]. - The company plans to initiate clinical trials for budoprutug in immune thrombocytopenia and systemic lupus erythematosus in the first half of 2025[707]. - CLYM116, a preclinical stage anti-APRIL monoclonal antibody, is expected to announce preclinical data in the second half of 2025[708]. - The company expects substantial increases in research and development expenses as it conducts ongoing clinical trials and studies[728]. Expenses and Cost Management - General and administrative expenses decreased by 35.5% from $24.9 million in 2023 to $16.0 million in 2024, driven by a reduction in personnel-related expenses[741]. - Research and development expenses decreased by 8% from $15.4 million in 2023 to $14.2 million in 2024, while total research and development expenses, including related party, decreased by 7%[738][739]. - The company incurred restructuring costs of $3.3 million related to a workforce reduction in the UK, fully recognized by December 31, 2024[718]. - The company anticipates that expenses will continue to increase as it advances product candidates and expands corporate infrastructure[746]. Internal Controls and Compliance - The company identified material weaknesses in internal control over financial reporting, with two remaining unremediated as of December 31, 2024[766]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards until they apply to private companies[767]. - The company will remain an emerging growth company until it achieves total annual gross revenue of $1.24 billion or more, issues more than $1.0 billion of non-convertible debt, or meets other specified criteria[768]. - Stock-based compensation is measured based on estimated grant-date fair value, using the Black-Scholes option pricing model, which involves significant assumptions that can materially affect reported expenses[764]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[769]. Income and Interest - Interest income, net increased by 76% from $4.6 million in 2023 to $8.1 million in 2024, attributed to an increase in marketable securities[743].
Climb Bio, Inc(CLYM) - 2024 Q4 - Annual Report