Century Therapeutics(US:IPSC)2025-05-15 20:15PART I. FINANCIAL INFORMATION Unaudited Consolidated Financial Statements The company achieved a net income of $76.6 million in Q1 2025, largely due to $109.2 million in collaboration revenue recognition Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $51,865 | $58,441 | | Total investments | $133,969 | $161,669 | | Total current assets | $169,631 | $194,051 | | Total assets | $315,609 | $353,216 | | Deferred revenue, current | $0 | $109,164 | | Total liabilities | $75,170 | $191,854 | | Total stockholders' equity | $240,439 | $161,362 | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Collaboration revenue | $109,164 | $855 | | Research and development | $26,580 | $23,421 | | General and administrative | $8,408 | $8,743 | | Income (loss) from operations | $74,176 | $(31,309) | | Net income (loss) | $76,560 | $(28,062) | | Net income (loss) per share, basic & diluted | $0.89 | $(0.45) | Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(34,623) | $(30,248) | | Net cash provided by investing activities | $27,930 | $11,541 | | Net cash provided by financing activities | $120 | $18,195 | | Net decrease in cash, cash equivalents, and restricted cash | $(6,573) | $(512) | Notes to Unaudited Consolidated Financial Statements Notes detail financial health, strategic changes, and obligations, including the Bristol-Myers Squibb collaboration termination and Clade Therapeutics acquisition - The company projects sufficient cash and financial resources, totaling $185.8 million as of March 31, 2025, to fund operations for at least the next 12 months27 - Termination of the Bristol-Myers Squibb collaboration on March 12, 2025, led to a $109.2 million deferred revenue recognition in Q1 2025, with no future revenue expected8386158 - The April 2024 acquisition of Clade Therapeutics added three preclinical programs, but its $4.3 million goodwill was fully impaired by December 31, 20246267 - Future contingent milestone payments include up to $16.1 million per product to Distributed Bio, up to $74.25 million to iCELL Inc., and $30 million related to Clade/Gadeta acquisitions88909193 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses pipeline re-prioritization, the impact of the Bristol-Myers Squibb collaboration termination, increased R&D expenses, and projected cash runway into Q4 2026 - The company re-prioritized its pipeline in March 2025, discontinuing the CNTY-101 lymphoma trial to focus on B-cell mediated autoimmune diseases and three core preclinical iT cell programs131132135 - The Bristol-Myers Squibb collaboration termination on March 12, 2025, resulted in a $109.2 million revenue recognition in Q1 2025141158 R&D Expense Breakdown (in thousands) | Component | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Personnel and related costs | $9,984 | $9,761 | $223 | | Facility and other allocated costs | $5,322 | $4,692 | $630 | | Research and laboratory | $9,475 | $8,042 | $1,433 | | Other | $1,799 | $926 | $873 | | Total R&D Expense | $26,580 | $23,421 | $3,159 | - Cash, cash equivalents, and investments of $185.8 million as of March 31, 2025, are projected to fund operations into Q4 2026, supported by a $60 million private placement in April 2024134162165 Quantitative and Qualitative Disclosures About Market Risk The company's primary market risk is interest rate sensitivity on its $188.6 million investment portfolio, with no material impact expected due to low-risk instruments - The company faces interest rate risk on its $188.6 million cash and investment portfolio, though material impact is not anticipated due to low-risk instruments184186 - Potential disruptions in financial institutions pose a risk to the company's access to cash and cash equivalents187 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the quarter - Disclosure controls and procedures were deemed effective at a reasonable assurance level by management as of March 31, 2025189 - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025190 PART II. OTHER INFORMATION Legal Proceedings The company is not currently involved in any legal proceedings expected to materially impact its financial condition or operations - Management believes no pending claims or actions will materially adversely affect the company's operations, financial condition, or cash flows192 Risk Factors No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for December 31, 2024 - No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for December 31, 2024193 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities The company reported no unregistered sales or repurchases of equity securities during the first quarter of 2025 - No unregistered sales of equity securities occurred during the reporting period194 - The company did not repurchase any of its equity securities during the quarter195 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter ended March 31, 2025198 Exhibits This section lists exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data