Financial Performance - For the year ended December 31, 2023, the company generated a net loss of $73.4 million, following a net income of $5.3 million for the year ended December 31, 2022[84]. - For the three months ended March 31, 2024, total revenue was $0, a decrease of $468,000 compared to $468,000 in the same period of 2023[123]. - The net loss for the three months ended March 31, 2024, was $15.52 million, an improvement of $2.70 million compared to a net loss of $18.22 million in the same period of 2023[123]. - Interest income for the three months ended March 31, 2024, was $775,000, a decrease of $813,000 from $1.59 million in the same period of 2023[123]. - Other operating income for Q1 2024 was $0.2 million, attributed to funding from CEPI, while there was no such income in Q1 2023[130]. - Interest income decreased to $0.8 million in Q1 2024 from $1.6 million in Q1 2023, reflecting lower interest earned on short-term cash deposits[131]. - Research and development incentives fell to $0.6 million in Q1 2024 from $1.2 million in Q1 2023, related to UK corporation tax relief[132]. Cash Flow and Financial Position - As of March 31, 2024, the company had an accumulated deficit of $192.1 million and does not expect positive cash flows from operations in the foreseeable future[84]. - Net cash used in operating activities was $11.8 million in Q1 2024, compared to $3.2 million in Q1 2023, primarily due to a net loss of $15.5 million[138][139]. - As of March 31, 2024, the company had cash, cash equivalents, and restricted cash totaling $130.0 million, with gross proceeds from share issuances amounting to approximately $328.4 million since inception[134]. - The accumulated deficit reached $192.1 million as of March 31, 2024, with expectations of continued significant losses and negative cash flows for the foreseeable future[145]. - The company expects existing financial resources to fund operations into Q4 2025, although this is subject to change based on actual cash usage[150]. Research and Development - The Phase 1b/2 APOLLO trial of VTP-200 showed a highest hrHPV clearance rate of 60% at Month 12 in the highest dose group, compared to 33% in the placebo group[93]. - The highest cervical lesion clearance rate of 67% was observed in the highest dose group of the APOLLO trial, compared to 39% in the placebo group[94]. - The company received IND clearance from the FDA for VTP-1000 to progress to a first-in-human clinical trial in Celiac disease[90]. - Research and development expenses are expected to increase in the future as the company continues to advance its clinical programs[104]. - Direct research and development expenses totaled $5.84 million for the three months ended March 31, 2024, slightly up from $5.80 million in the same period of 2023[125]. - Indirect research and development expenses increased to $5.29 million for the three months ended March 31, 2024, compared to $4.02 million in the same period of 2023, an increase of $1.27 million[128]. Operating Expenses - Research and development expenses increased to $11.1 million for the three months ended March 31, 2024, up from $9.8 million in the same period of 2023, representing a $1.3 million increase[126]. - General and administrative expenses decreased to $5.99 million for the three months ended March 31, 2024, down from $12.14 million in the same period of 2023, a reduction of $6.14 million[123]. - The company expects general and administrative expenses to continue to rise as it expands operations in the UK and US and prepares for manufacturing and commercialization of product candidates[107]. - General and administrative expenses decreased to $6.0 million for Q1 2024 from $12.1 million in Q1 2023, primarily due to a foreign exchange gain of $1.2 million compared to a loss of $3.5 million in the prior year[129]. - The company reported total operating expenses of $17.12 million for the three months ended March 31, 2024, down from $21.95 million in the same period of 2023, a decrease of $4.83 million[123]. Financing and Future Outlook - The company anticipates financing future cash needs through public or private equity offerings, debt financings, collaborations, and licensing arrangements[86]. - Future capital requirements will depend on various factors, including the success of product candidates and the ability to generate revenue, with potential needs for additional financing[149]. - The company is classified as an emerging growth company, allowing it to delay the adoption of certain accounting standards[155]. Geopolitical and Market Risks - The company has no operations or suppliers based in Israel, Gaza, Ukraine, Belarus, or Russia, minimizing the impact of geopolitical conflicts on its business[98][99]. - The company is subject to foreign currency exchange rate fluctuations, particularly with the euro, pound sterling, Swiss franc, and Australian dollar[158]. - A hypothetical 10% weakening of the US dollar against the pound sterling would have resulted in an immaterial change to expenses for the three months ended March 31, 2024[160]. - The company does not currently face significant market risk related to interest rate changes, as it has no significant interest-bearing liabilities[161]. - A hypothetical 10% relative change in interest rates would not have materially impacted the company's financial statements[162].
VACCITECH(VACC) - 2024 Q1 - Quarterly Report