Financial Performance - Avalo generated a net loss of $13.1 million for the three months ended March 31, 2025, with negative cash flows from operations of $9.5 million[152]. - Net cash used in operating activities was $9.5 million for the three months ended March 31, 2025, compared to $6.2 million for the same period in 2024[169]. - Other income, net increased by $90.0 million for the three months ended March 31, 2025, primarily due to the absence of prior period private placement transaction costs[164]. - For the three months ended March 31, 2024, net cash provided by financing activities was $115.6 million from a private placement investment, offset by transaction costs of $7.0 million[173]. - There was no net cash provided by financing activities for the three months ended March 31, 2025[173]. Expenses - Research and development expenses increased by $7.0 million to $9.1 million for the three months ended March 31, 2025, primarily due to a $3.8 million increase in clinical expenses related to the LOTUS trial[158]. - General and administrative expenses rose by $2.4 million to $5.5 million for the three months ended March 31, 2025, driven by a $1.6 million increase in stock-based compensation[162]. - Stock-based compensation expense increased by $1.0 million to $1.3 million for the three months ended March 31, 2025, due to option and restricted stock unit grants[160]. Cash Position - The Company had $125.0 million in cash and cash equivalents as of March 31, 2025, sufficient to fund operations into at least 2027[153]. - The Company plans to balance cash levels with projected needs to withstand funding uncertainties, potentially through equity sales or strategic collaborations[153]. - The Company expects future cash used in operating activities to increase due to ongoing development plans for AVTX-009[171]. Clinical Trials - The Phase 2 LOTUS trial of AVTX-009 is evaluating efficacy in approximately 180 adults with moderate to severe hidradenitis suppurativa[149]. Accounting Policies - The company adheres to GAAP in preparing its financial statements, utilizing estimates and assumptions that impact reported assets, liabilities, revenue, and expenses[175]. - There have been no significant changes to the company's critical accounting policies during the three months ended March 31, 2025[175]. - The company does not have any off-balance sheet arrangements as defined by SEC rules[176]. - As a smaller reporting company, the company is not required to provide certain market risk disclosures[177].
Avalo Therapeutics(AVTX) - 2025 Q1 - Quarterly Report