AN2 Therapeutics(ANTX) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, the net loss was $10.6 million, a decrease of 36% compared to a net loss of $16.6 million for the same period in 2024[137] - Net losses for the three months ended March 31, 2025, were $10.6 million, compared to $16.6 million for the same period in 2024, representing a 36% improvement[142] - Net cash used in operating activities was $10.6 million for the three months ended March 31, 2025, compared to $17.6 million for the same period in 2024, indicating a reduction of 40%[153][154] - Interest income decreased to $0.9 million for the three months ended March 31, 2025, down from $1.7 million in the same period of 2024, a decline of approximately 47%[141] Research and Development - Research and development expenses decreased by 48% to $7.7 million for the three months ended March 31, 2025, down from $14.7 million in 2024[138] - The company completed enrollment in a 200-patient observational trial for epetraborole in October 2024, with topline data expected in the second quarter of 2025[123] - The Phase 1 study for AN2-502998 is expected to be completed in the second half of 2025, with the compound showing curative activity in preclinical studies[121] - The company anticipates advancing its first oncology compound(s) into development later this year, with potential clinical proof of concept within the current cash runway[122] Financial Position - As of March 31, 2025, the company had cash, cash equivalents, and investments totaling $78.5 million, expected to fund operations for at least twelve months[128] - The company has an accumulated deficit of $216.4 million as of March 31, 2025[127] - As of March 31, 2025, the company had cash, cash equivalents, and investments primarily in investment-grade securities totaling $78.5 million, with exposure to interest rate risk[166] Operating Costs and Future Outlook - General and administrative expenses increased by 6% to $3.8 million for the three months ended March 31, 2025, compared to $3.6 million in 2024[140] - The company expects to incur substantial additional losses in future periods and does not anticipate generating meaningful revenue until regulatory approval and commercialization of product candidates occur[144] - Future funding requirements are expected to be significant, with the company relying on public or private equity offerings or debt financings to meet cash needs[146] - The company plans to continue using third-party service providers for preclinical and clinical development, which will increase operating costs if regulatory approval is obtained[130] Inflation Impact - Inflation has increased labor and operating costs, including clinical trial, non-clinical study, and manufacturing costs[170] - The company believes inflation has not had a material effect on its unaudited interim condensed financial statements[170] Contractual Obligations - The company has contractual obligations including a $2.0 million upfront payment to Anacor and potential milestone payments totaling up to $127 million[158] Cash Flow from Activities - Cash provided by investing activities was $9.2 million for the three months ended March 31, 2025, down from $26.3 million in the same period of 2024[155] - The company generated approximately $65.5 million from an Underwritten Offering in August 2023 and $19.1 million from an ATM Offering in June 2023[143]