ArriVent BioPharma(AVBP) - 2025 Q1 - Quarterly Report

PART I — FINANCIAL INFORMATION Item 1. Condensed Financial Statements (Unaudited) Unaudited statements show a Q1 net loss of $64.4 million and decreased assets, driven by R&D spending and a major license payment Condensed Balance Sheets Total assets decreased to $215.5 million as of March 31, 2025, reflecting a reduction in cash and a higher accumulated deficit Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $49,865 | $74,293 | | Short-term investments | $126,212 | $144,570 | | Total current assets | $185,785 | $226,979 | | Total assets | $215,495 | $274,942 | | Liabilities & Equity | | | | Total liabilities | $12,953 | $17,288 | | Accumulated deficit | $(302,720) | $(238,333) | | Total stockholders' equity | $202,542 | $257,654 | Condensed Statements of Operations and Comprehensive Loss Net loss for Q1 2025 widened to $64.4 million, driven by a substantial increase in research and development expenses Statement of Operations Summary (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $61,289 | $16,975 | | General and administrative | $5,483 | $3,699 | | Total operating expenses | $66,772 | $20,674 | | Operating loss | $(66,772) | $(20,674) | | Net loss | $(64,387) | $(17,417) | | Net loss per share | $(1.90) | $(0.70) | Condensed Statements of Cash Flows Cash used in operations increased significantly to $68.0 million due to a $40 million upfront collaboration payment Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(68,008) | $(18,628) | | Net cash provided by investing activities | $36,821 | $— | | Net cash provided by financing activities | $6,759 | $185,632 | | Net (decrease) increase in cash | $(24,428) | $167,004 | | Cash and cash equivalents at end of period | $49,865 | $317,393 | Notes to Condensed Interim Financial Statements Notes detail the company's liquidity, IPO proceeds, a $40 million license payment, and new financing facilities - The company believes its cash, cash equivalents, and marketable securities of $205.5 million are sufficient to fund operations for at least the next twelve months[36] - In January 2025, the company entered an exclusive license agreement with Lepu Biopharma, paying a $40 million upfront fee[79][80] - An 'at-the-market' (ATM) offering program for up to $250.0 million was established in February 2025, raising $6.5 million in net proceeds in Q1[87][90] - Subsequent to the quarter end, the company entered into a Loan and Security Agreement for up to $75.0 million in term loans[91][155] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses increased R&D expenses from a $40 million upfront payment and confirms liquidity for the next 12 months Results of Operations Operating expenses rose by $46.1 million year-over-year, primarily due to a $40 million upfront payment for a collaboration Operating Expense Comparison (in thousands) | Expense Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Research and development | $61,289 | $16,975 | $44,314 | | General and administrative | $5,483 | $3,699 | $1,784 | | Total operating expenses | $66,772 | $20,674 | $46,098 | - The $44.3 million increase in R&D expenses was primarily due to a $40.0 million one-time up-front payment to initiate the collaboration with Lepu[114] - Costs for the lead product candidate, firmonertinib, increased by $1.5 million, driven by higher expenses for the FURVENT Phase 3 clinical trial[115] Liquidity and Capital Resources The company holds $205.5 million in cash and securities, sufficient for the next year, and secured a new $75 million credit facility - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities of $205.5 million[118] - The company believes its existing cash will be sufficient to meet anticipated cash requirements through at least twelve months from the financial statement issuance date[123] - In May 2025, the company entered into a $75 million loan and security agreement with Silicon Valley Bank, with an initial tranche of $35 million available at the company's option[120][155] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company's exposure to interest rate, foreign currency, and inflation risks is considered not significant - The company believes its exposure to interest rate risk, foreign currency risk, and inflation is not significant and has not had a material effect on its results of operations[141][142][143] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[145] - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[146] PART II — OTHER INFORMATION Item 1. Legal Proceedings The company is not currently a party to any material legal proceedings - The company is not currently a party to or aware of any proceedings that it believes will have a material adverse effect on its business[147] Item 1A. Risk Factors A new risk factor was added concerning potential cost increases from U.S. tariffs, particularly on imports from China - A new risk factor was added regarding changes in United States trade policy, including recently announced tariffs, which could materially impact the business by increasing costs for essential materials[149] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales occurred, and the planned use of IPO proceeds remains materially unchanged - The company received net proceeds of $183.2 million from its initial public offering in January 2024[151] - There has been no material change in the planned use of proceeds from the IPO as described in the prospectus[152] Item 5. Other Information The company secured a new $75 million loan facility in May 2025 and reported no new director Rule 10b5-1 trading plans - On May 8, 2025, the company secured a Loan and Security Agreement with Silicon Valley Bank for a term loan of up to $75.0 million, available in tranches[155] - No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter ended March 31, 2025[160] Item 6. Exhibits This section lists all exhibits filed with the report, including material contracts and required certifications