Akebia Therapeutics(AKBA) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 reached $57.336 million, a 75.9% increase from $32.607 million in Q1 2024[20] - Product revenue, net, was $55.791 million in Q1 2025, compared to $31.009 million in Q1 2024, reflecting an increase of 80.2%[20] - Net income for Q1 2025 was $6.112 million, a significant improvement from a net loss of $17.985 million in Q1 2024[20] - Basic net income per share for Q1 2025 was $0.03, compared to a loss of $(0.09) per share in Q1 2024[20] - Total product revenues for the three months ended March 31, 2025, were $55.791 million, a significant increase from $31.009 million in the same period of 2024, representing an 80% year-over-year growth[157] Assets and Liabilities - Total assets increased to $310.185 million as of March 31, 2025, up from $220.670 million at the end of 2024, representing a 40.5% growth[17] - Total liabilities increased to $285.604 million as of March 31, 2025, compared to $269.855 million at the end of 2024[17] - Cash and cash equivalents rose to $113.374 million in Q1 2025, compared to $51.870 million at the end of 2024, marking a 118.5% increase[17] - The company reported an increase in additional paid-in capital to $1.696 billion as of March 31, 2025, from $1.629 billion at the end of 2024[17] Cash Flow and Expenses - The company reported a net cash used in operating activities of $13,587,000 for the three months ended March 31, 2025, compared to $19,432,000 for the same period in 2024, indicating improved cash flow management[26] - Research and development expenses for Q1 2025 were $9.754 million, slightly up from $9.731 million in Q1 2024[20] - Selling, general and administrative expenses were $25.742 million in Q1 2025, compared to $25.438 million in Q1 2024[20] - The company recognized interest expense related to the BlackRock Credit Agreement of $2.1 million for the three months ended March 31, 2025, compared to $1.0 million for the same period in 2024, reflecting a 110% increase[77] Inventory and Assets Management - The total inventories increased to $55.7 million as of March 31, 2025, compared to $51.2 million as of December 31, 2024, reflecting a growth of approximately 8.8%[63] - The company’s long-term inventories increased to $35.97 million as of March 31, 2025, from $34.95 million as of December 31, 2024, an increase of approximately 2.9%[68] - Accounts receivable related to product sales increased to approximately $60.0 million as of March 31, 2025, compared to $32.4 million as of December 31, 2024[162] Market and Product Developments - Vafseo® (vadadustat) was approved in the U.S. in March 2024 and entered the market in January 2025, targeting anemia due to chronic kidney disease[31] - Auryxia lost exclusivity in the U.S. market in March 2025, which may impact future revenue streams[31] - Revenue from Vafseo, which entered the market in January 2025, was $12.034 million, while Auryxia generated $43.757 million in revenue for the same period[157] Financing and Capital Structure - Proceeds from the issuance of common stock, net of issuance costs, amounted to $64,907,000 in the first quarter of 2025, compared to $18,740,000 in the same period of 2024[26] - The Company sold 6,189,974 shares of common stock under the ATM program in 2023, generating gross proceeds of $6.8 million[193] - During the three months ended March 31, 2025, the Company sold 9,437,364 shares of common stock under the ATM program with gross proceeds of $18.7 million[198] - The Company entered into an underwriting agreement for a public offering of 25,000,000 shares at an offering price of $2.00 per share, with net proceeds of $46.5 million[199][200] Legal and Compliance - The company does not expect the resolution of current legal proceedings to have a material adverse effect on its financial position or cash flows[155] - The company maintains director and officer liability insurance coverage to cover potential indemnification obligations[156] - As of March 31, 2025, the company had no outstanding claims related to indemnification obligations, concluding that the fair value of these obligations is negligible[156] Stock Options and Compensation - The Company issued 3,634,400 options to employees under the 2023 Plan during the three months ended March 31, 2025[210] - The Company granted 217,613 options to purchase shares of common stock to new hires during the three months ended March 31, 2025[211] - The Company incurs stock-based compensation expenses of $2.2 million and $2.4 million for the three months ended March 31, 2025 and 2024, respectively[203] - Performance-based stock options are granted based on the achievement of specified commercial, regulatory, and corporate milestones[213]