NextCure(NXTC) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements The unaudited condensed financial statements for Q1 2025 show decreased assets and a reduced net loss of $11.0 million compared to Q1 2024 Condensed Balance Sheets Total assets decreased to $67.1 million as of March 31, 2025, driven by reduced cash and marketable securities, impacting equity Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $21,827 | $27,727 | | Marketable securities | $34,033 | $40,894 | | Total current assets | $58,897 | $71,807 | | Total assets | $67,137 | $80,860 | | Liabilities & Equity | | | | Total current liabilities | $5,740 | $9,574 | | Total liabilities | $11,282 | $15,388 | | Total stockholders' equity | $55,855 | $65,472 | | Total liabilities and stockholders' equity | $67,137 | $80,860 | Condensed Statements of Operations and Comprehensive Loss The company reported a reduced net loss of $11.0 million for Q1 2025, primarily due to lower operating expenses and no restructuring charges Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | $7,896 | $11,398 | | General and administrative | $3,726 | $4,364 | | Restructuring and asset impairment charges | $0 | $2,542 | | Total operating expenses | $11,622 | $18,304 | | Loss from operations | ($11,622) | ($18,304) | | Net loss | ($10,976) | ($17,107) | | Net loss per common share | ($0.39) | ($0.61) | Condensed Statements of Cash Flows Net cash used in operating activities was $13.0 million in Q1 2025, with cash and cash equivalents decreasing to $21.8 million by quarter-end Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($12,994) | ($12,606) | | Net cash provided by investing activities | $7,094 | $17,881 | | Net cash provided by financing activities | $0 | $1 | | Net (decrease) increase in cash | ($5,900) | $5,276 | | Cash and cash equivalents – end of period | $21,827 | $18,358 | Notes to Unaudited Condensed Financial Statements Notes detail the company's clinical-stage biopharmaceutical focus, liquidity, and the impact of the 2024 restructuring plan - The company is a clinical-stage biopharmaceutical firm focused on innovative cancer medicines, particularly antibody-drug conjugates[21] - As of March 31, 2025, the company had $55.9 million in cash, cash equivalents, and marketable securities, which it believes is sufficient to fund planned operations for at least the next twelve months[23] - In March 2024, the company implemented a restructuring plan to focus on its NC410 and LNCB74 programs, which included a 37% workforce reduction and pausing internal manufacturing. This resulted in $2.5 million in restructuring and impairment charges in Q1 2024[58][104] - The company has a 50-50 cost and profit-sharing collaboration agreement with LigaChem Biosciences for the development of up to three antibody-drug conjugates, with LNCB74 being the first co-development product[53][54] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses advancing the LNCB74 trial, attributing reduced net loss to lower R&D and restructuring, with cash sufficient into H2 2026 - The company is focused on advancing LNCB74, a B7-H4 targeted ADC, with the Phase 1 clinical trial currently in cohort 3 of dose escalation[82][83] - The company plans to initiate backfill cohorts for the LNCB74 trial in the second half of 2025 and provide a proof of concept data readout in the first half of 2026[83] - Existing cash, cash equivalents, and marketable securities of $55.9 million as of March 31, 2025, are expected to fund operations into the second half of 2026[85][88][108] - The company is seeking partners for its other clinical programs, NC410 and NC525, and third-party financing for its preclinical non-oncology programs[84] Results of Operations Operating expenses significantly decreased to $11.6 million in Q1 2025, driven by reduced R&D costs and the absence of restructuring charges Comparison of Operating Expenses (in thousands) | Expense Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Research and development | $7,896 | $11,398 | ($3,502) | | General and administrative | $3,726 | $4,364 | ($638) | | Restructuring and asset impairment charges | $0 | $2,542 | ($2,542) | | Loss from operations | ($11,622) | ($18,304) | ($6,682) | - R&D expenses decreased by $3.5 million, mainly due to lower costs on programs other than LNCB74, particularly the reduction in spending on NC410 after patient enrollment was stopped[102] - G&A expenses decreased by $0.6 million, driven by $0.4 million in lower personnel-related costs from the 2024 restructuring and reduced insurance costs[103] Liquidity and Capital Resources The company holds $55.9 million in cash, sufficient into H2 2026, but requires substantial additional capital for future development - The company has an active "at the market" (ATM) sales agreement to sell up to $75 million of common stock, but no shares were sold during the three months ended March 31, 2025[107] Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($12,994) | ($12,606) | | Net cash provided by investing activities | $7,094 | $17,881 | | Net cash provided by financing activities | $0 | $1 | - Net cash used in operating activities in Q1 2025 was $13.0 million, primarily due to the $11.0 million net loss and changes in operating assets and liabilities[113] Quantitative and Qualitative Disclosures About Market Risk As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk - As a "smaller reporting company," NextCure is not required to provide quantitative and qualitative disclosures about market risk[124] Controls and Procedures Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[127] - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[128] PART II. OTHER INFORMATION Legal Proceedings The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financials - The company is not currently party to any material legal proceedings[75][129] Risk Factors No material updates to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material updates to the risk factors disclosed in the 2024 Annual Report[130] Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities or use of proceeds during the period - The company reports no unregistered sales of equity securities during the period[131] Other Information No directors or executive officers adopted or terminated Rule 10b5-1 trading plans or other arrangements during Q1 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or other trading arrangement during the quarter[134]