IGM Biosciences(IGMS) - 2025 Q1 - Quarterly Report

Financial Performance - The company incurred a net loss of $52.9 million for the three months ended March 31, 2025, compared to a net loss of $49.8 million for the same period in 2024, reflecting an increase of $3.1 million [129]. - The company has an accumulated deficit of $1.1 billion as of March 31, 2025, primarily due to ongoing research and development costs [129]. - For the three months ended March 31, 2025, net cash used in operating activities was $32.5 million, primarily due to a net loss of $52.9 million and a net change of $9.5 million in operating assets and liabilities [160]. - For the three months ended March 31, 2024, net cash used in operating activities was $42.4 million, with a net loss of $49.8 million [161]. Research and Development - Research and development expenses decreased to $22.3 million for the three months ended March 31, 2025, down from $43.8 million in 2024, a reduction of $21.5 million [146]. - The company does not expect to generate any revenue from product sales in the near future, as it is not currently developing any product candidates [127]. - The company anticipates requiring additional funding for future product development efforts, which may involve public or private equity offerings, debt financings, and collaborations [155]. Impairment and Charges - The company recognized an impairment charge of $21.9 million for long-lived assets during the three months ended March 31, 2025, with no impairment charges recorded in the same period of 2024 [148]. - Impairment of long-lived assets was added to the company's critical accounting policies due to the January 2025 restructuring [171]. Revenue and Income - Collaboration revenue was $0.5 million for both the three months ended March 31, 2025, and 2024, solely related to the Sanofi Agreement [144]. - Interest income decreased to $1.9 million for the three months ended March 31, 2025, from $4.0 million in 2024, a decline of approximately $2.2 million [149]. Workforce and Restructuring - Following the January and April 2025 restructurings, the company reduced its workforce by approximately 73% and 80%, respectively, to preserve cash [126]. - The company plans to evaluate potential strategic alternatives and reorganization options to maximize value for stockholders [126]. - Personnel expenses decreased by $5.1 million due to the effects of the 2024 and January 2025 restructurings [151]. Cash and Liquidity - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $152.1 million, with an accumulated deficit of $1.1 billion [152]. - Net cash provided by investing activities for the three months ended March 31, 2025, was $42.7 million, mainly from $57.2 million in maturities of marketable securities [162]. - Future minimum lease commitments as of March 31, 2025, were $54.9 million, reduced by $31.9 million following a termination payment of $18.0 million [165]. Future Outlook - The company expects operating expenses to decrease following the termination of the Sanofi Agreement and the implementation of restructuring plans, although future expenses may fluctuate significantly [154]. - The company may face challenges in obtaining additional financing on acceptable terms, which could impact shareholder rights and operational flexibility [156]. - The company made termination payments totaling $18.0 million for early lease terminations in April 2025 [134].