Financial Performance - Total revenues for the three months ended March 31, 2025, were $1.163 million, an increase from $0.874 million in the same period of 2024, representing a 33% growth[18]. - The net loss for the three months ended March 31, 2025, was $29.511 million, compared to a net loss of $13.748 million in 2024, representing a 115% increase in losses[18]. - The net loss per share attributable to common stockholders was $0.82 for the first quarter of 2025, compared to $0.54 in the same quarter of 2024[18]. - For the three months ended March 31, 2025, the net loss was $29.511 million, compared to a net loss of $13.748 million for the same period in 2024, representing an increase of 114%[24]. - The Company reported net losses of $29.5 million and $13.7 million for the three months ended March 31, 2025 and 2024, respectively, with an accumulated deficit of $203.9 million as of March 31, 2025[44]. - Basic and diluted net loss per share was $(0.82) for the three months ended March 31, 2025, compared to $(0.54) for the same period in 2024[107]. Expenses - Research and development expenses for the same period were $27.003 million, up from $13.078 million in 2024, indicating a 106% increase[18]. - General and administrative expenses rose to $7.337 million from $5.640 million, reflecting a 30% increase year-over-year[18]. - Cash used in operating activities for the three months ended March 31, 2025, was $27.630 million, compared to $14.941 million for the same period in 2024, indicating an 85% increase in cash outflow[24]. - The company incurred stock-based compensation expenses of $5.315 million for the three months ended March 31, 2025, compared to $2.035 million for the same period in 2024, reflecting a 161% increase[24]. - The Company recorded operating lease costs of $135 million for the three months ended March 31, 2025, compared to $111 million for the same period in 2024[66]. Cash and Assets - Cash and cash equivalents decreased to $10.116 million as of March 31, 2025, down from $22.792 million at the end of 2024[16]. - Total current assets were $270.999 million as of March 31, 2025, compared to $280.904 million at the end of 2024[16]. - The company reported cash, cash equivalents, and restricted cash of $10.347 million as of March 31, 2025, down from $329.790 million at the end of the previous year[24]. - As of March 31, 2025, the total cash equivalents amounted to $9,254 million, while total marketable securities were $321,422 million, reflecting a decrease from $334,177 million as of December 31, 2024[57][63]. - The total assets measured at fair value as of March 31, 2025, were $330,819 million, a decrease from $356,271 million as of December 31, 2024[62][63]. Liabilities and Equity - Total liabilities decreased to $19.974 million from $21.531 million at the end of 2024[16]. - The company’s total stockholders' equity as of March 31, 2025, was $328.606 million, compared to $168.870 million as of December 31, 2023, showing a significant increase[24]. Business Developments - The company completed a business combination with Former Dianthus on September 11, 2023, which resulted in Former Dianthus becoming a wholly owned subsidiary[13]. - The company completed a reverse merger on September 11, 2023, resulting in the issuance of 14,817,696 shares of common stock[28]. - The Company raised approximately $72.0 million in pre-closing financing through the issuance of common stock and pre-funded warrants prior to the reverse merger[35]. - The Company raised approximately $230 million through a private placement by issuing 14,500,500 shares of common stock at $12.00 per share and pre-funded warrants for 4,666,332 shares at $11.999 each[36]. Research and Development - The company is focused on advancing the development of DNTH103 and other product candidates, with ongoing preclinical and clinical drug development activities[8]. - The Company has been focusing on developing next-generation complement therapeutics for severe autoimmune and inflammatory diseases, with significant resources allocated to research and development[26][27]. - The Company has not generated any revenue from product sales yet, and its financial performance is assessed based on net loss[54]. - The Company expects to continue incurring significant recurring losses and will rely on outside capital for operations in the foreseeable future[44]. - The Company has potential obligations to pay up to $1.8 million and $11.0 million in development and commercial milestone payments, respectively, to Alloy Therapeutics upon achieving certain milestones[109]. - The Company has potential payments of up to $12.2 million to OmniAb upon achieving certain development milestones[110]. Revenue Recognition - The Company recognized revenue of $1.2 million associated with the Tenacia License Agreement during the three months ended March 31, 2025[106]. - The Company recognized $1.0 million in revenue related to milestones achieved under the Tenacia Agreements during the three months ended March 31, 2025[103]. - The Company has not recorded any royalty revenue to date, as it has not yet satisfied the performance obligations related to its licenses[104]. Stock and Options - The Company issued an aggregate of 11,021,248 shares of common stock to Former Dianthus stockholders during the Reverse Merger on September 11, 2023[72]. - As of March 31, 2025, the company had issued 32,125,933 shares of common stock out of an authorized 150,000,000 shares[74]. - The total common stock reserved for future issuance increased to 11,729,465 shares as of March 31, 2025, up from 11,187,790 shares as of December 31, 2024[75]. - The company had 5,927,868 stock options outstanding as of March 31, 2025, with a weighted average exercise price of $18.50[87]. - The Company reported total stock-based compensation expense of $5.315 million for the three months ended March 31, 2025, compared to $2.035 million for the same period in 2024[91]. - As of March 31, 2025, there was $61.2 million of total unrecognized compensation cost related to granted stock options, expected to be recognized over a remaining weighted-average period of 3.1 years[91]. - The weighted average grant-date fair value per share of stock options granted during the three months ended March 31, 2025, was $16.99[88]. - The Company reported an increase in the number of shares reserved for issuance under the 2018 Amended Plan by 1,555,767 shares on January 1, 2025, due to the Evergreen Provision[81]. Risks and Concerns - The Company is subject to risks including product development uncertainty, dependence on key personnel, and market acceptance of products[38]. - The Company has evaluated its ability to continue as a going concern and expects existing cash and investments to fund obligations for at least twelve months beyond the issuance date[44]. - The Company has experienced negative operating cash flows since its inception, indicating ongoing financial challenges[27]. - The Company has excluded potential dilutive securities from the computation of diluted net loss per share due to their antidilutive effect, totaling 5,932,545 shares for the three months ended March 31, 2025[108].
MAGENTA THERAPEU(MGTA) - 2025 Q1 - Quarterly Report