Zura(US:ZURA)2025-05-08 10:55Financial Performance - Total assets as of March 31, 2025, were $172.5 million, a decrease from $179.5 million as of December 31, 2024[12] - Operating expenses for the three months ended March 31, 2025, were $19.3 million, compared to $8.4 million for the same period in 2024, representing a 130% increase[14] - Net loss for the three months ended March 31, 2025, was $17.4 million, compared to a net loss of $7.7 million for the same period in 2024, indicating a 126% increase in losses[14] - Cash and cash equivalents decreased to $170.6 million as of March 31, 2025, from $176.5 million at the end of 2024, reflecting a decrease of $5.9 million[22] - The Company has an accumulated deficit of $173.3 million as of March 31, 2025, and a net loss of $17.4 million for the three months ended March 31, 2025[34] - The Company reported a net loss of $7.7 million for the three months ended March 31, 2024, indicating a year-over-year increase in losses[34] Research and Development - Research and development expenses for the three months ended March 31, 2025, were $10.5 million, significantly higher than $3.6 million for the same period in 2024, marking a 192% increase[14] - The company is currently developing tibulizumab (ZB - 106), with a global Phase 2 study initiated in December 2024, targeting approximately 80 participants[28] - The Company has two key product candidates: Crebankitug (ZB-168) and Torudokimab (ZB-880), targeting immune and inflammatory disorders[32] - The Company is obligated to make milestone payments to Lilly totaling up to $155.0 million for development and $440.0 million for sales based on net sales thresholds for tibulizumab[63] Shareholder Equity and Financing - The company raised $5.1 million from the issuance of Class A Ordinary Shares in connection with a sale under the ATM, net of commissions[23] - The Company raised $56.7 million in net cash proceeds from the Business Combination and an additional $105.3 million from the April 2024 Private Placement[35] - In Q1 2025, the Company sold 3,000,000 Class A Ordinary Shares at $1.75 per share, generating net proceeds of $5.1 million[77] - As of March 31, 2025, a total of 47,219,119 shares are reserved for issuance, including options and warrants[78] - The maximum number of Class A Ordinary Shares that may be issued under the Employee Stock Purchase Plan (ESPP) is 4,029,898, plus additional shares from the Equity Incentive Plan[87] Liabilities and Obligations - Total liabilities as of March 31, 2025, were $21.1 million, unchanged from December 31, 2024[12] - The total accounts payable and accrued expenses increased to $21.1 million as of March 31, 2025, up from $19.5 million as of December 31, 2024[57] - The Company has incurred operating losses since inception and may never become profitable[34] - The Company is obligated to make future payments to Pfizer totaling up to $69.0 million for development milestones and $525.0 million for sales milestones[70] - The Company is obligated to make milestone payments to Lilly totaling up to $155.0 million for development and $440.0 million for sales based on net sales thresholds for tibulizumab[63] Share-Based Compensation - The Company reported a share-based compensation expense of $3.6 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024[23] - The total share-based compensation expense for the three months ended March 31, 2025, was $3.644 million, compared to $2.409 million for the same period in 2024, representing a 51.1% increase[98] - As of March 31, 2025, there was approximately $21.7 million of total unrecognized share-based compensation expense related to options granted, expected to be recognized over a weighted average period of 3.1 years[98] - The Company granted 3,572,790 share options during the three months ended March 31, 2025, with a weighted average exercise price of $1.20[91] - The fair value of share options granted during the three months ended March 31, 2025, was estimated at $0.97 per option, compared to $2.91 for the same period in 2024[93] - As of March 31, 2025, the Company had 15,687,069 options outstanding with a weighted average exercise price of $2.50 and an intrinsic value of $4.096 million[91] Regulatory and Compliance - The company qualifies as a "smaller reporting company" and is exempt from certain regulatory requirements, including auditor attestation under Section 404 of the Sarbanes-Oxley Act[176] - The company has reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements[177] - The company is exempt from holding non-binding advisory votes on executive compensation or golden parachute arrangements[177] - The company is not required to comply with Public Company Accounting Oversight Board requirements related to critical audit matters in auditor reports[177] Licensing and Agreements - The Company entered into a license agreement with Lilly for an exclusive license to develop and commercialize tibulizumab, a bispecific antibody[58] - As part of the 2023 Lilly License, the Company granted Stone Peach a call right to purchase 4.99% of ZB17's equity for $1.0 million, with a noncontrolling interest balance of $1.5 million as of March 31, 2025[59] - Stone Peach will receive an annual payment starting at $0.6 million, increasing by 10% annually, as long as the Company maintains its license for tibulizumab[60] - A one-time payment of $4.5 million is due to Stone Peach upon FDA acceptance of the IND for tibulizumab, recorded in R&D expenses for the year ended December 31, 2024[61] - The Lonza License requires an annual fee of $0.4 million, recorded in accounts payable as of March 31, 2025[73]