Corbus Pharmaceuticals(US:CRBP)2025-05-06 20:21PART I: FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (unaudited) Unaudited Q1 2025 financials show a $17.0 million net loss, driven by R&D, with total assets at $139.9 million Condensed Consolidated Balance Sheets Total assets decreased to $139.9 million by March 31, 2025, from $155.9 million at year-end 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $18,900 | $17,198 | | Investments | $113,887 | $131,864 | | Total current assets | $137,360 | $152,976 | | Total assets | $139,931 | $155,879 | | Liabilities & Equity | | | | Total current liabilities | $11,620 | $11,818 | | Total liabilities | $12,825 | $13,451 | | Total stockholders' equity | $127,106 | $142,428 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss increased to $17.0 million in Q1 2025 from $6.9 million in Q1 2024, primarily due to higher R&D Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | $15,642 | $5,762 | | General and administrative | $4,133 | $3,861 | | Total operating expenses | $19,775 | $9,623 | | Operating loss | ($19,775) | ($9,623) | | Net loss | ($16,978) | ($6,899) | | Net loss per share, basic and diluted | ($1.39) | ($0.83) | Condensed Consolidated Statements of Cash Flows Net cash used in operations increased to $16.4 million in Q1 2025, with $18.1 million provided by investing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($16,421) | ($7,967) | | Net cash provided by (used in) investing activities | $18,123 | ($98,236) | | Net cash provided by financing activities | $0 | $106,582 | Notes to Condensed Consolidated Financial Statements Notes detail the company's oncology and obesity pipeline, liquidity, license agreements, and the January 2024 public offering - The company is an oncology and obesity company with a pipeline of three main experimental drugs: CRB-701 (ADC for solid tumors), CRB-601 (monoclonal antibody for solid tumors), and CRB-913 (CB1 receptor inverse agonist for obesity)24 - The company expects its cash, cash equivalents, and investments of approximately $132.8 million at March 31, 2025, will be sufficient to meet operating and capital requirements for at least twelve months from the report's issuance29 - In January 2024, the company completed a public offering, raising gross proceeds of approximately $94.5 million and net proceeds of $88.6 million58 - A milestone payment of $0.4 million related to the CRB-913 program under the Jenrin License Agreement was achieved and recorded as R&D expense in Q1 20253845 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the oncology and obesity pipeline, increased R&D expenses, and liquidity, projecting funding through Q2 2027 Overview Corbus focuses on oncology and obesity, advancing CRB-701, CRB-601, and CRB-913 in clinical trials - CRB-701 (Nectin-4 ADC): Phase 1 dose optimization study is ongoing in the U.S., U.K., and Europe94 - CRB-601 (anti-αvβ8 mAb): A Phase 1 dose escalation study began in December 202494 - CRB-913 (obesity): Dosed the first participant in a Phase 1 SAD/MAD study in Q1 202591 Results of Operations Operating expenses rose 105% to $19.8 million in Q1 2025, primarily due to a 171% increase in R&D costs Research and Development Expenses by Program (in thousands) | Program | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | CRB-601 | $3,237 | $1,334 | $1,903 | 143% | | CRB-701 | $7,133 | $2,461 | $4,672 | 190% | | CRB-913 | $2,753 | $578 | $2,175 | 376% | | Total program specific costs | $13,243 | $4,373 | $8,870 | 203% | - The increase in R&D costs for CRB-701 was due to higher clinical and drug supply costs as the Phase 1 trial is ongoing. CRB-601 costs rose as the Phase 1 dose escalation study is ongoing. CRB-913 costs increased due to drug supply manufacturing and the start of the Phase 1 clinical study99 - General and administrative expenses increased by $0.3 million, primarily due to higher stock-based compensation costs101 Liquidity and Capital Resources The company has $133.5 million in liquidity, sufficient through Q2 2027, but requires significant additional capital for trials - Based on current plans, the company expects its cash, cash equivalents, and investments of $132.8 million (as of March 31, 2025) to be sufficient to fund operations through the second quarter of 2027108 - The company will need to raise significant additional capital to continue funding clinical trials for CRB-701, CRB-601, and CRB-913109 - The company has potential future milestone payments of up to $18.4 million to Jenrin (per compound), $150.8 million to UCSF, and up to $130.0 million in development/regulatory and $555.0 million in commercial milestones to CSPC111113115 Item 3. Quantitative and Qualitative Disclosures about Market Risk This section is not applicable for the current reporting period - Not Applicable117 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective, with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025119 - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control120 PART II: OTHER INFORMATION Item 1. Legal Proceedings The company is not currently involved in any material legal proceedings - The company is not currently a party to any material legal proceedings121 Item 1A. Risk Factors No material changes or additions to risk factors were reported from the 2024 Annual Report - There have been no material changes in or additions to the risk factors included in the 2024 Annual Report122 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds were reported for the period - None123 Item 5. Other Information CEO and CFO adopted Rule 10b5-1 trading plans on March 14, 2025, with sales commencing October 24, 2025 - On March 14, 2025, the CEO and CFO adopted Rule 10b5-1 trading plans for the potential sale of common stock, with sales permitted to begin on October 24, 2025126127 Item 6. Exhibits This section lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications