PART I Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing a net income of $56.5 million primarily from $70.0 million in Servier license revenue Condensed Consolidated Balance Sheets Total assets increased to $176.2 million by March 31, 2025, primarily due to higher cash, with stockholders' equity rising to $141.5 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $98,424 | $36,437 | | Total current assets | $155,679 | $101,176 | | Total assets | $176,245 | $122,640 | | Liabilities & Equity | | | | Total current liabilities | $16,847 | $20,573 | | Total liabilities | $34,729 | $39,355 | | Total stockholders' equity | $141,516 | $83,285 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) The company reported a net income of $56.5 million for Q1 2025, a significant turnaround from a net loss in Q1 2024, driven by $70.0 million in license revenue Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | License revenue | $70,000 | $— | | Research and development | $10,506 | $13,545 | | General and administrative | $4,964 | $6,701 | | Income (loss) from operations | $54,530 | ($20,246) | | Net income (loss) | $56,542 | ($18,225) | | Net income (loss) per share - basic | $1.00 | ($0.35) | Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities was $53.4 million in Q1 2025, a significant reversal from the prior year, ending the quarter with $99.2 million in cash and equivalents Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $53,410 | ($21,199) | | Net cash provided by (used in) investing activities | $8,547 | ($13,734) | | Net cash provided by financing activities | $32 | $4,130 | | Net (decrease) increase in cash | $61,989 | ($30,803) | Condensed Consolidated Statements of Stockholders' Equity Total stockholders' equity increased to $141.5 million by March 31, 2025, primarily due to the $56.5 million net income recorded during the quarter - Total stockholders' equity increased to $141.5 million as of March 31, 2025, up from $83.3 million at the end of 2024, mainly due to the $56.5 million net income for the quarter23 Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the Servier licensing agreement's $70.0 million upfront payment and confirm sufficient cash for the next 12 months - In March 2025, the company entered into a global licensing agreement with Servier Pharmaceuticals LLC for BDTX-49332776 - The Servier agreement provided a $70.0 million upfront payment and eligibility for up to $710.0 million in development and commercial sales milestone payments, plus tiered royalties2776 - The company expects its cash, cash equivalents, and investments will be sufficient to fund planned operations for at least the next 12 months from the filing date29 - The $70.0 million upfront payment was recognized as license revenue in Q1 2025, as it was determined to be a single performance obligation (license of functional IP) satisfied at contract execution7881 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the $70.0 million Servier licensing agreement and the company's $152.4 million cash position, expected to fund operations into Q4 2027 Overview The overview highlights the $70.0 million Servier licensing agreement and $152.4 million in cash, funding operations into Q4 2027 - The lead clinical program, BDTX-1535, is being evaluated in a Phase 2 trial for first-line EGFRm NSCLC, with initial results anticipated in Q4 202585 - A global licensing agreement was signed with Servier in March 2025 for BDTX-4933, providing a $70.0 million upfront payment8488 - The company believes its cash, cash equivalents, and investments of $152.4 million as of March 31, 2025, will fund operations into the fourth quarter of 202794 Results of Operations Q1 2025 saw $70.0 million in license revenue, leading to $54.5 million in operating income, with reduced R&D and G&A expenses due to efficiencies Comparison of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | License revenue | $70,000 | $— | $70,000 | | Research and development | $10,506 | $13,545 | ($3,039) | | General and administrative | $4,964 | $6,701 | ($1,737) | | Income (loss) from operations | $54,530 | ($20,246) | $74,776 | - R&D expenses decreased by $3.0 million YoY, primarily due to operational efficiencies for BDTX-1535 and decreased spending on BDTX-4933 following its licensing110111 - G&A expenses decreased by $1.7 million YoY, mainly from operational and workforce efficiencies resulting from the October 2024 corporate restructuring112 Liquidity and Capital Resources Liquidity was significantly bolstered by the $70.0 million Servier upfront payment, resulting in $152.4 million in cash and investments, funding operations into Q4 2027 - As of March 31, 2025, the company had cash, cash equivalents, and investments of $152.4 million119126 - The company received a $70.0 million upfront payment from Servier in March 2025 under a licensing agreement for BDTX-4933118 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash provided by (used in) operating activities | $53,410 | ($21,199) | | Cash provided by (used in) investing activities | $8,547 | ($13,734) | | Cash provided by financing activities | $32 | $4,130 | Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, the company is not required to provide market risk disclosures - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk143 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2025144 - No material changes in internal control over financial reporting were identified during the quarter ended March 31, 2025145 PART II - OTHER INFORMATION Legal Proceedings The company is not currently a party to any material legal proceedings that would adversely affect its business - The company is not currently aware of any material legal proceedings that would have a material adverse effect on its business, financial condition, or results of operations147 Risk Factors Key risks include potential delays from inadequate government agency funding, macroeconomic and geopolitical disruptions, and dependence on partner performance under the Servier license agreement - Inadequate funding, personnel turnover, or shutdowns at the FDA and other government agencies could hinder the ability to review and approve new products in a timely manner149150 - Macroeconomic conditions, political unrest, high inflation, and international trade disruptions (e.g., tariffs) could adversely affect research and development activities and increase costs151 - The company's success with BDTX-4933 is now dependent on Servier's performance under the license agreement, and future collaborations carry similar risks of non-performance or strategic shifts by partners157159 Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities in the reported period161 Defaults Upon Senior Securities The company reports no defaults upon senior securities - None163 Mine Safety Disclosures This item is not applicable to the company - Not applicable164 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - During the three months ended March 31, 2025, none of the company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement165 Exhibits This section lists filed exhibits, including the Servier License Agreement and certifications from the Principal Executive and Financial Officers - Filed exhibits include the License Agreement with Servier Pharmaceuticals LLC, dated March 18, 2025167 - Certifications by the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act sections 302 and 906 are included as exhibits167 Signatures
Black Diamond Therapeutics(BDTX) - 2025 Q1 - Quarterly Report