Spero Therapeutics(US:SPRO)2025-05-13 20:15Financial Position - The company has an accumulated deficit of $473.5 million as of March 31, 2025, with cash and cash equivalents of $48.9 million[190]. - Cash and cash equivalents as of March 31, 2025, were $48.9 million, consisting of cash and money market accounts[254]. - Management has concluded that substantial doubt exists about the company's ability to continue as a going concern[190]. - The company expects to incur significant expenses and operating losses for at least the next year, with a cash runway sufficient to fund operations into the second quarter of 2026[190]. - Net cash used in operating activities for Q1 2025 was $4.002 million, compared to a net cash provided of $5.938 million in Q1 2024[237]. Revenue and Expenses - Total revenues for the three months ended March 31, 2025, were $5.874 million, a decrease of $3.393 million (approximately 36.6%) compared to $9.267 million in the same period of 2024[222]. - Grant revenue decreased by $4.3 million (approximately 85.0%) to $763,000 in Q1 2025, primarily due to a reduction in committed funds under the BARDA contract for tebipenem HBr[222]. - Collaboration revenue increased by $907,000 (approximately 21.6%) to $5.111 million in Q1 2025, driven by a $1.035 million increase from the GSK agreement[223]. - Total operating expenses decreased by $2.644 million (approximately 11.4%) to $20.605 million in Q1 2025, with research and development expenses down by $3.726 million (approximately 21.5%) to $13.606 million[225]. - Net loss for the three months ended March 31, 2025, was $13.866 million, an increase of $1.197 million (approximately 9.4%) compared to a net loss of $12.669 million in Q1 2024[222]. Development and Clinical Trials - Tebipenem HBr is in Phase 3 development, aiming to be the first broad-spectrum oral carbapenem for complicated urinary tract infections[189]. - The development of SPR720 has been suspended after failing to meet primary endpoints in a Phase 2a clinical trial[189]. - The company plans to prioritize advancing Phase 3 clinical trial activities for tebipenem HBr under the GSK License Agreement[190]. - Direct research and development expenses for the tebipenem HBr program increased by $869,000 (approximately 11.1%) to $8.669 million in Q1 2025[225]. Strategic Actions and Risks - The company anticipates incurring approximately $1.1 million in costs related to workforce reduction due to strategic restructuring, with $0.9 million already incurred[215]. - The company plans to mitigate funding risks through raising additional capital, potential new collaborations, and reducing cash expenditures[245]. - If the company is unable to raise additional funds, it may need to delay or terminate research and product development efforts[249]. - The company expects to finance operations through equity offerings, debt financings, government funding, collaborations, and licensing arrangements, which may dilute stockholder ownership[247]. - The company may have to relinquish valuable rights to technologies or revenue streams if it raises funds through collaborations or licensing arrangements[249]. Compliance and Market Conditions - The company received a deficiency letter from Nasdaq on February 25, 2025, due to its stock price closing below $1.00 for 30 consecutive business days[195]. - The company received a deficiency letter from Nasdaq on February 25, 2025, due to the bid price of its common stock closing below $1.00 per share for 30 consecutive business days, with a compliance deadline of August 25, 2025[250]. - The company is subject to market risk primarily related to interest income sensitivity due to changes in U.S. Treasury interest rates[254]. - The company faces exposure to foreign currency exchange rate movements, primarily the Euro, British Pound, and Australian Dollar against the U.S. dollar, although historical fluctuations have not materially impacted financial statements[254]. - The company has no off-balance sheet arrangements as defined by SEC rules[252].