BeyondSpring(BYSI) - 2025 Q1 - Quarterly Report

Financial Performance - BeyondSpring Inc. reported a consolidated net loss of $3.3 million for the three months ended March 31, 2024, and a consolidated net income of $1.2 million for the three months ended March 31, 2025, which included a gain of $7.0 million from the sale of preferred shares of SEED[148]. - For the three months ended March 31, 2025, discontinued operations generated $0.5 million in revenue through SEED's collaboration with Eli Lilly, while continuing operations did not generate any revenue[155]. - The net loss from continuing operations was $2.6 million for the three months ended March 31, 2025, a 24% increase from a net loss of $2.1 million in 2024[165]. - The company reported a net income of $1.2 million for the three months ended March 31, 2025, primarily due to a gain on the sale of subsidiary interests amounting to $7.0 million[171]. - The company incurred a loss from discontinued operations of $3.2 million for the three months ended March 31, 2025, compared to a loss of $1.2 million in 2024[165]. - The company had an accumulated deficit of $402.9 million as of March 31, 2025, down from $407.4 million at the end of 2024[171]. Cash and Financing - The company has raised approximately $299.0 million in equity financings and held $6.5 million in cash and cash equivalents as of March 31, 2025[147]. - Cash used in operating activities decreased to $4.2 million for the three months ended March 31, 2025, from $5.3 million in 2024, reflecting a reduction in operating cash expenditures[174]. - Net cash provided by investing activities was $6.3 million for the three months ended March 31, 2025, primarily from the sale of equity interests in SEED[176]. - The company anticipates needing additional capital resources to fund operations and expects general and administrative expenses to increase due to SEC reporting requirements[178]. - The company plans to finance future operations through a combination of equity and debt financing, licensing arrangements, and potential sales of subsidiary interests[180]. Research and Development - Plinabulin has been administered to over 700 cancer patients, demonstrating a statistically significant reduction in grade 4 neutropenia by over 80% in the DUBLIN-3 Phase 3 study[140]. - The DUBLIN-3 study enrolled 559 patients globally, showing significant overall survival benefits for the Plinabulin and docetaxel combination compared to docetaxel alone[140]. - The company plans to file a New Drug Application (NDA) with the NMPA for Plinabulin as soon as possible following positive study results[140]. - Research and development expenses increased by 21% to $0.9 million for the three months ended March 31, 2025, compared to $0.7 million for the same period in 2024[166]. Operational Expenses - General and administrative expenses rose by 30% to $1.7 million for the three months ended March 31, 2025, compared to $1.3 million in 2024[168]. - BeyondSpring Inc. expects to incur significant expenses and operating losses as it advances its product candidates through clinical development and seeks regulatory approval[149]. Partnerships and Collaborations - The company has partnered with Hengrui to commercialize Plinabulin in Greater China, pending drug approval and successful pricing negotiations[145]. - The upfront payment of RMB 200 million (approximately $31 million) received from Hengrui is recorded as deferred revenue, to be recognized over time after product approval[155]. Discontinued Operations - SEED's operations have been reclassified as discontinued operations, with the company owning approximately 40.12% of SEED's outstanding equity interest as of March 31, 2025[150]. Lease Commitments - The company has lease commitments for office space in New Jersey, totaling 9,727 square feet, with a monthly rent of $25,939, expiring in February 2027[184]. - The annual rent for the New Jersey office will increase by $0.50 per square foot starting in August 2025[184]. - The company leases office space in Dalian, China, with a total area of 210.65 square meters and a monthly rent of $1,404, expiring on December 31, 2027[185]. - The company is entitled to a rent subsidy of approximately $30,000 from the local government in Dalian related to its prior office lease[185]. - Wanchunbulin, a subsidiary, has a government grant agreement requiring it to maintain operations within designated districts until 2033[187]. Accounting and Reporting - There have been no material changes to the company's critical accounting estimates for the three months ended March 31, 2025, compared to the previous year[189]. - The company evaluates its financial estimates based on historical experience, known trends, and contractual milestones[188]. - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[192].