Tevogen Bio(TVGN) - 2025 Q1 - Quarterly Report

Financial Performance - Tevogen Bio reported a net loss of $10.4 million for the three months ended March 31, 2025, compared to a net loss of$11.3 million for the same period in 2024, primarily due to non-cash stock-based compensation expenses [136]. - The net loss for the three months ended March 31, 2025, was $10.4 million, compared to a net loss of$11.3 million for the same period in 2024 [156]. - Research and development expenses for the three months ended March 31, 2025, were $3.2 million, a decrease of 84.7$20.8 million for the same period in 2024 [157]. - General and administrative expenses for the three months ended March 31, 2025, were $7.2 million, down 17.7$8.7 million in the same period in 2024 [158]. - Cash used in operating activities for the three months ended March 31, 2025, was $3.3 million, compared to$2.2 million for the same period in 2024 [165][166]. Cash and Funding - As of March 31, 2025, Tevogen Bio had an accumulated deficit of $123.8 million and cash reserves of$2.0 million [136]. - As of March 31, 2025, the company had $2.0 million in cash, an increase from$1.3 million as of December 31, 2024 [163]. - The company raised aggregate gross proceeds of $24.0 million from the sale of convertible promissory notes since January 2021 [163]. - The company has drawn$3.0 million from a Loan Agreement with a remaining $27.0 million available for future financing [163]. - The company expects to utilize$8.0 million in grant funding from KRHP for ongoing operational expenses through March 31, 2026 [176]. - The company is exploring various funding strategies, including private placements and partnerships, to support operations [177]. Clinical Development - The first clinical product, TVGN 489, has completed a Phase 1 proof-of-concept trial with no dose-limiting toxicities observed, and secondary endpoints showed a rapid reduction in viral load [126]. - The company aims to commercialize TVGN 489 and other product candidates, expecting to incur expenses related to expanding research and development capabilities and building manufacturing infrastructure [141]. - The company plans to conduct clinical trials for TVGN 489 and other product candidates, which will require considerable financial resources [172]. - The company anticipates increased expenses related to commercialization if marketing approval for TVGN 489 is obtained [174]. Patent and Technology - Tevogen Bio's patent portfolio includes three issued U.S. patents related to TVGN 489, all expiring on December 9, 2040, and nine pending U.S. patent applications [130][131]. - Tevogen Bio's ExacTcell technology is designed to develop off-the-shelf T cell therapies with applications in infectious diseases and cancers [124]. Future Expectations - The company has not generated any revenue to date and does not expect to do so until marketing approval is obtained for its product candidates [141]. - The company expects general and administrative expenses to increase in the future to support ongoing research and development and potential commercialization efforts [149]. - The company expects to incur costs associated with operating as a public company, necessitating additional funding [174]. Obligations and Agreements - Total contractual obligations as of March 31, 2025, amount to $4,846,712, with$1,846,712 due within one year [179]. - The company has committed to a securities purchase agreement with the Patel Family for $6.0 million in Series C Preferred Stock [170]. - The company has not yet received$3.0 million of the $6.0 million purchase price for Series A-1 Preferred Stock [170]. - The company has entered into a Loan Agreement allowing for monthly draws of up to$1.0 million over 27 months, with a maximum loan amount of $36.0 million [171]. - The company has drawn an aggregate of$3.0 million under the Loan Agreement as of March 31, 2025, with an additional $0.5 million drawn in April 2025 [171].