GlycoMimetics(GLYC) - 2025 Q1 - Quarterly Results

Condensed Balance Sheets This statement presents the company's financial position, including assets, liabilities, and equity, at two distinct reporting dates Condensed Balance Sheet Highlights (in thousands) | Item | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Cash | $22,429 | $34,766 | | Total current assets | $22,838 | $34,804 | | Total assets | $25,605 | $35,617 | | Total current liabilities | $14,284 | $9,614 | | Total liabilities | $51,766 | $47,096 | | Total stockholders' deficit | $(30,161) | $(15,479) | - Cash decreased by $12,337 thousand from December 31, 2024, to March 31, 2025[2] - Total stockholders' deficit significantly increased from $(15,479) thousand to $(30,161) thousand, indicating a worsening equity position[2] Condensed Statement of Operations and Comprehensive Loss This statement details the company's financial performance, including revenues, expenses, and net loss, over a specific period Condensed Statement of Operations Highlights (Three Months Ended March 31, 2025, in thousands) | Item | Amount | | :-------------------------- | :------- | | Research and development | $10,627 | | General and administrative | $3,597 | | Total operating expenses | $14,224 | | Loss from operations | $(14,224) | | Total other expense, net | $(924) | | Net loss and comprehensive loss | $(15,148) | | Net loss per share (basic and diluted) | $(18.39) | - The company reported a net loss of $15,148 thousand for the three months ended March 31, 2025[5] - Research and development expenses were the largest component of operating expenses at $10,627 thousand[5] Condensed Statements of Convertible Preferred Stock and Stockholders' Equity This statement outlines changes in the company's equity and convertible preferred stock over the reporting period Changes in Stockholders' Deficit (in thousands) | Item | December 31, 2024 | March 31, 2025 | | :-------------------------------- | :---------------- | :------------- | | Convertible Preferred Stock Amount | $4,000 | $4,000 | | Common Stock Amount | $1 | $1 | | Additional Paid-in Capital | $2,387 | $2,853 | | Accumulated Deficit | $(17,867) | $(33,015) | | Total Stockholders' Deficit | $(15,479) | $(30,161) | - The accumulated deficit increased by $15,148 thousand, primarily due to the net loss incurred during the period[10] - Additional paid-in capital increased by $466 thousand, attributed to stock-based compensation expense[10] Condensed Statements of Cash Flows This statement reports the cash generated and used by operating, investing, and financing activities over a period Condensed Statements of Cash Flows Highlights (Three Months Ended March 31, 2025, in thousands) | Cash Flow Activity | Amount | | :------------------------------------ | :------- | | Net loss | $(15,148) | | Stock-based compensation expense | $1,229 | | Net cash used in operating activities | $(10,851) | | Net cash used in financing activities | $(1,486) | | Net decrease in cash | $(12,337) | | Cash at beginning of period | $34,766 | | Cash at end of period | $22,429 | - Operating activities consumed $10,851 thousand in cash during the three months ended March 31, 2025[14] - The company experienced a net decrease in cash of $12,337 thousand, resulting in a cash balance of $22,429 thousand at period end[14] Notes to Condensed Financial Statements These notes provide essential details and explanations supporting the condensed financial statements, clarifying accounting policies and significant events 1. Nature of the Business and Basis of Presentation Crescent Biopharma, Inc. was established in September 2024 to research and develop cancer therapy candidates. The company is an early-stage biopharmaceutical firm facing typical industry risks. A significant event is the Merger Agreement with GlycoMimetics, amended in February and April 2025, which will result in a combined company focused on solid tumor therapies. In connection with the Merger, Crescent completed a pre-closing financing of approximately $200.0 million. The financial statements are unaudited, prepared in accordance with GAAP for interim reporting, and reflect management's adjustments. The company has incurred significant operating losses and negative cash flows since inception, with an accumulated deficit of $33.0 million as of March 31, 2025. However, management expects that existing cash, combined with net proceeds from the Merger and Pre-Closing Financing (closed June 13, 2025), will be sufficient to fund operations for at least 12 months Background and Basis of Presentation This section outlines the company's formation, strategic merger, and the basis for financial statement preparation - Crescent Biopharma, Inc. was established on September 19, 2024, to research and develop cancer therapy candidates licensed from Paragon Therapeutics, Inc[19] - The Company entered into a Merger Agreement with GlycoMimetics on October 28, 2024, which was subsequently amended, leading to the formation of a combined company focused on developing cancer therapies for solid tumors[22] - In connection with the Merger, Crescent agreed to a Pre-Closing Financing for gross proceeds of approximately $200.0 million, including $37.5 million from convertible notes[23] - Immediately prior to the Merger on June 13, 2025, GlycoMimetics effected a 1-for-100 reverse stock split, and the Combined Company was re-domesticated to the Cayman Islands[24] Going Concern This section assesses the company's ability to continue operations, considering its financial performance and future funding - The Company has incurred a net loss of $15.1 million and used net cash of $10.9 million for operating activities during the three months ended March 31, 2025[29] - As of March 31, 2025, the Company had an accumulated deficit of $33.0 million[29] - Existing cash of $22.4 million (as of March 31, 2025), combined with $159.5 million net proceeds from the Merger and Pre-Closing Financing (closed June 13, 2025), is expected to fund operations for at least 12 months[30] 2. Summary of Significant Accounting Policies This section outlines the key accounting policies applied in preparing the condensed financial statements. It covers the use of estimates, segment reporting (single segment), concentrations of credit risk (cash and third-party dependence), capitalization of deferred offering costs, fair value measurements (using a three-level hierarchy), classification of convertible preferred stock (outside stockholders' deficit), accounting for convertible notes payable (amortized cost), accruals for research and development contract costs, expensing of R&D and G&A costs as incurred, accounting for commitments and contingencies (no material liabilities as of March 31, 2025), stock-based compensation (Black-Scholes for options, hybrid method for common stock valuation), early exercise of stock options, net loss per share calculation (two-class method, anti-dilutive effect), and income taxes (asset and liability method with valuation allowance, no uncertain tax positions). The Company is also evaluating recently issued accounting pronouncements (ASU 2023-09 and ASU 2024-03) Use of Estimates This section highlights the reliance on management's judgments and assumptions in preparing the financial statements - Financial statements require management estimates and assumptions, particularly for research and development expenses, prepaid/accrued costs, and stock-based compensation valuation[31] Segment Information This section clarifies that the company operates and manages its business as a single reportable segment - The Company operates and manages its business as a single segment for performance assessment and operating decisions[32] Concentrations of Credit Risk This section identifies key credit risks, including cash balances and dependence on third-party organizations - Credit risk primarily relates to cash balances held at an accredited financial institution, which may exceed federally insured limits[33] - The Company is dependent on third-party organizations, including Paragon, for research, development, and manufacturing of product candidates[34] Deferred Offering Costs This section describes the capitalization and treatment of costs directly associated with equity financings - The Company capitalizes legal, professional, and other third-party fees directly associated with in-process equity financings as deferred offering costs[35] - As of March 31, 2025, deferred offering costs of $2.8 million were recorded as Other assets[35] Fair Value Measurements This section explains the methodology for classifying and measuring financial assets and liabilities at fair value - The Company classifies financial assets and liabilities carried at fair value into a three-level hierarchy (Level 1, 2, 3) based on observability of inputs[36] - Convertible Notes are accounted for at amortized cost, which approximates fair value utilizing Level 2 inputs[37] Classification of Convertible Preferred Stock This section details the accounting classification of convertible preferred stock outside of stockholders' deficit - Series Seed convertible preferred stock is classified outside of stockholders' deficit due to holders' liquidation rights not solely within the Company's control[38] - The Convertible Preferred Stock is not redeemable, except for a contingent deemed liquidation event, which is not currently probable[39] Convertible Notes Payable (Accounting Policy) This section outlines the accounting treatment for convertible notes payable, including amortization of debt issuance costs - Convertible Notes are accounted for at amortized cost, with debt issuance costs recorded as a debt discount and amortized as interest expense using the effective interest method[40] Research and Development Contract Costs Accruals This section describes the accrual policy for R&D expenses from vendor obligations based on service estimates - The Company accrues for R&D expenses from obligations with vendors, including Paragon, CROs, and CMOs, based on estimates of services received and work progress[42] - No material deviations between accrued and actual research and development expenses have been experienced as of March 31, 2025[42] Research and Development Costs This section defines the types of research and development costs expensed as incurred by the company - Research and development costs, including salaries, stock-based compensation, employee benefits, and external vendor costs (e.g., Paragon reimbursements), are expensed as incurred[43] General and Administrative Expenses This section details the primary components of the company's general and administrative expenses - General and administrative expenses primarily consist of salaries, bonuses, stock-based compensation, employee benefits, finance and administration costs, and professional fees[45] Commitments and Contingencies (Accounting Policy) This section explains the policy for accruing loss contingencies and the absence of material liabilities - The Company accrues for loss contingencies when losses are probable and reasonably estimable; no liabilities were recorded as of March 31, 2025[46] Stock-Based Compensation (Accounting Policy) This section outlines the accounting methods for stock-based compensation, including valuation models and recognition - Stock-based compensation expense for service-based awards is recognized using the straight-line method over the vesting period[48] - Stock options are valued using the Black-Scholes option-pricing model, while RSAs and RSUs are valued based on the fair value of common stock[49] - Common stock valuations are prepared using a hybrid method, combining an option pricing method (OPM) and a probability-weighted expected return method (PWERM)[50] Early Exercise of Stock Options (Accounting Policy) This section clarifies the accounting treatment for early exercised unvested stock options under the incentive plan - The 2024 Equity Incentive Plan permits early exercise of unvested options, which remain subject to repurchase by the Company and are not deemed outstanding for accounting purposes until vested[52] Net Loss per Share Attributable to Common Stockholders (Accounting Policy) This section describes the application of the two-class method for net loss per share calculation - The Company applies the two-class method for net loss per share, considering Convertible Preferred Stock as participating securities[53][54] - In periods of net loss, basic and diluted net loss per share are the same because potentially dilutive securities have an anti-dilutive effect[57] Income Taxes (Accounting Policy) This section details the asset and liability method for income taxes and the use of a valuation allowance - Income taxes are accounted for using the asset and liability method, with a valuation allowance established against deferred tax assets if recovery is not more likely than not[58] - The Company had no uncertain tax positions or related interest/penalties accrued as of March 31, 2025[60] Recently Issued Accounting Pronouncement Not Yet Adopted This section identifies new accounting pronouncements under evaluation for their potential impact on financial statements - The Company is evaluating the impact of ASU 2023-09 (Income Tax Disclosures, effective 2025) and ASU 2024-03 (Disaggregation of Income Statement Expenses, effective 2026/2027) on its financial statements[61][62] 3. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities significantly increased from $2,225 thousand at December 31, 2024, to $4,445 thousand at March 31, 2025. This increase was primarily driven by higher accrued interest, research and development costs, and employee compensation and benefits Accrued Expenses and Other Current Liabilities (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :--------------- | :---------------- | | Accrued interest | $1,960 | $852 | | Accrued research and development | $1,180 | $713 | | Accrued professional and consulting | $887 | $645 | | Accrued employee compensation and benefits | $418 | $15 | | Total | $4,445 | $2,225 | - Total accrued expenses and other current liabilities increased by $2,220 thousand (99.8%) from December 31, 2024, to March 31, 2025[63] 4. Convertible Notes Payable In October 2024, the Company issued Convertible Notes with an initial principal amount of $37.5 million, including $15.0 million from a related party. These notes accrue interest at 12.0% per annum, compounded annually, and are scheduled to mature on December 31, 2026. They are subject to automatic conversion into common or preferred stock upon a Next Equity Financing or other events, and holders agreed to contribute them to the Crescent Pre-Closing Financing. For the three months ended March 31, 2025, the Company recognized $1.1 million in interest expense, with an effective interest rate of approximately 12.0% - Initial principal amount of Convertible Notes: $37.5 million (issued October 2024), with $15.0 million from a related party[64] - Interest rate: 12.0% per annum, compounded annually, with a maturity date of December 31, 2026[64] - The Convertible Notes will automatically convert into common or preferred stock upon a Next Equity Financing or other events, and holders agreed to contribute them to the Crescent Pre-Closing Financing[64][65] - Interest expense recognized for the three months ended March 31, 2025: $1.1 million, with a weighted average effective interest rate of approximately 12.0%[67] 5. Convertible Preferred Stock On September 19, 2024, the Company issued 20,000,000 shares of Series Seed Convertible Preferred Stock to a related party, Fairmount Healthcare Fund II L.P., for gross proceeds of $4.0 million. These shares carry specific voting, conversion, dividend, liquidation, and redemption rights. As of March 31, 2025, each share was convertible into common stock on a one-for-one basis. Holders have preferential liquidation rights over common stockholders and specific voting powers on corporate actions Voting This section details the voting rights of convertible preferred stockholders, including their influence on key corporate actions - Holders of Convertible Preferred Stock vote with common stockholders on an as-converted basis[70] - A majority vote of preferred stockholders is required for key corporate actions, such as liquidation, adverse amendments to charter/bylaws, or authorizing senior/additional preferred stock[70] - Preferred stockholders are entitled to elect one director to the Company's Board[71] Conversion This section outlines the conditions and mechanisms for converting convertible preferred stock into common shares - Each share of Convertible Preferred Stock is convertible into common shares at the option of the holder at any time[72] - Mandatory conversion occurs upon a qualifying public offering or the Merger, converting into newly created non-voting preferred stock[72] - As of March 31, 2025, each outstanding share of Convertible Preferred Stock was convertible into common stock on a one-for-one basis[73] Dividends This section clarifies the non-cumulative nature of dividends on convertible preferred stock and historical dividend payments - Dividends on Convertible Preferred Stock are non-cumulative[74] - No cash dividends were declared or paid by the Company from inception (September 19, 2024) through March 31, 2025[74] Liquidation This section describes the preferential payment rights of convertible preferred stockholders in liquidation events - In a liquidation or Deemed Liquidation Event, Convertible Preferred Stock holders are entitled to preferential payment over common stockholders[75] - Payment amount is the greater of the original issue price plus unpaid dividends, or the as-converted common stock value[75] - A Deemed Liquidation Event includes certain mergers, consolidations, or sales of substantially all Company assets[76] Redemption This section specifies the limited redemption rights of convertible preferred stock, contingent on a deemed liquidation event - The Convertible Preferred Stock does not have redemption rights, except for a contingent redemption upon the occurrence of a Deemed Liquidation Event[77] 6. Common Stock As of March 31, 2025, Crescent Biopharma was authorized to issue 40,000,000 shares of common stock. There were 7,054,798 shares issued and outstanding, including those from Restricted Stock Awards (RSAs) and early exercised stock options. Each common share grants one vote, and holders are entitled to dividends declared by the Board, subject to the preferential rights of Convertible Preferred Stock. A total of 42,658,881 shares were reserved for future issuance, primarily for the conversion of preferred stock, exercise of stock options, and release of RSUs - Authorized common stock shares: 40,000,000 at $0.0001 par value[78] - Issued and outstanding common shares as of March 31, 2025: 7,054,798[2][78] - Total common stock shares reserved for issuance (as of March 31, 2025): 42,658,881, for potential conversion of preferred stock, exercise of stock options, and release of RSUs[79] 7. Stock-Based Compensation This section details the Company's stock-based compensation activities, including the 2024 Equity Incentive Plan, stock option valuation, and activity for stock options, Restricted Stock Units (RSUs), and Restricted Stock Awards (RSAs). It also covers the Parascent Warrant Obligation and the overall stock-based compensation expense. The 2024 Plan has seen multiple increases in authorized shares, totaling 24,568,516 as of March 31, 2025. Stock options are valued using the Black-Scholes model, with 19.6 million options outstanding as of March 31, 2025. RSUs and RSAs were granted with service-based vesting. The Parascent Warrant Obligation, a liability-classified award, contributed significantly to the $1.229 million total stock-based compensation expense for the three months ended March 31, 2025 2024 Equity Incentive Plan This section details the company's equity incentive plan, including authorized shares and types of awards - The 2024 Equity Incentive Plan was approved on September 19, 2024, authorizing grants of stock options, restricted stock awards, restricted stock units, and other stock-based awards[80] - Total shares reserved for issuance under the 2024 Plan as of March 31, 2025, was 24,568,516, with 273,224 shares available for future grants[80] Stock Option Valuation This section explains the Black-Scholes model and key assumptions used for valuing stock option grants - The fair value of stock option grants is estimated using the Black-Scholes option-pricing model[81] Weighted-Average Assumptions for Stock Option Valuation (Three Months Ended March 31, 2025) | Assumption | Value | | :-------------------- | :---- | | Expected term (in years) | 6.1 | | Expected volatility | 97.1% | | Risk-free interest rate | 4.2% | | Dividend yield | 0.0% | Stock Options This section summarizes the activity and intrinsic value of stock options outstanding during the period Stock Option Activity (Three Months Ended March 31, 2025) | Metric | Number of Options | | :------------------------------------ | :---------------- | | Outstanding balance as of January 1, 2025 | 7,494,090 | | Granted | 12,130,971 | | Exercised | (5,618) | | Outstanding balance as of March 31, 2025 | 19,619,443 | - The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2025, was $0.71[83] - As of March 31, 2025, the aggregate intrinsic value of outstanding options was $9.6 million[83] Restricted Stock Units This section details the issuance and vesting conditions of Restricted Stock Units granted to employees - In March 2025, 3,033,820 RSUs were issued to certain officers and employees at a price of $0.89 per share[84] - These RSUs have service-based vesting conditions over a four-year period[84] - The unvested balance of RSUs as of March 31, 2025, was 3,033,820[86] Restricted Stock Awards This section describes the issuance and unvested balance of Restricted Stock Awards to directors and consultants - In September and October 2024, 2,049,180 RSAs were issued to directors and consultants at $0.20 per share, including related party transactions[87] - The unvested balance of RSAs as of March 31, 2025, was 1,707,650[88] Parascent Warrant Obligation This section outlines the obligation to grant warrants to Parascent and related compensation expense recognition - Parascent is entitled to warrants to purchase 1.00% of the Company's fully diluted outstanding stock on December 31, 2025, and December 31, 2026[89][104] - As of March 31, 2025, the estimated fair value of warrants to be granted on December 31, 2025, was $2.0 million[89] - For the three months ended March 31, 2025, $0.8 million was recognized as stock-based compensation expense related to this obligation[89] Stock-Based Compensation Expense This section presents the total stock-based compensation expense, categorized by classification and award type Stock-Based Compensation Expense by Classification (Three Months Ended March 31, 2025, in thousands) | Classification | Amount | | :-------------------------- | :------- | | General and administrative | $439 | | Research and development | $790 | | Total | $1,229 | Stock-Based Compensation Expense by Award Type (Three Months Ended March 31, 2025, in thousands) | Award Type | Amount | | :-------------------------- | :------- | | Stock options | $414 | | RSAs | $21 | | RSUs | $31 | | Parascent warrant obligation | $763 | | Total | $1,229 | - Total unrecognized compensation cost as of March 31, 2025, was $16.7 million, expected to be recognized over weighted average periods ranging from 0.8 to 4.0 years[92] 8. Income Taxes For the three months ended March 31, 2025, Crescent Biopharma recorded no income tax provision. This was primarily due to the maintenance of a valuation allowance against the Company's net deferred tax assets, which offset any potential tax benefits - No income tax provision was recorded for the three months ended March 31, 2025[94] - The effective income tax rate differed from the 21% federal statutory rate primarily due to the valuation allowance maintained against the Company's net deferred tax assets[94] 9. Paragon Option Agreements Crescent Biopharma entered into Option Agreements with Paragon and Parascent in September and October 2024 for cancer therapy candidates CR-001, CR-002, and CR-003. These agreements grant exclusive options to license candidates, requiring milestone payments (up to $22.0M for CR-001, $46.0M for CR-002) and tiered royalties upon commercialization. The Company exercised its option for CR-001 on March 18, 2025. Significant R&D expenses were incurred under these agreements, with $8.0 million for R&D and $0.3 million for G&A due to Paragon for the three months ended March 31, 2025. Unpaid R&D costs for CR-001, CR-002, and CR-003 totaled $8.0 million as of March 31, 2025. Additionally, the agreements include a Parascent Warrant Obligation for 1.00% of outstanding stock on a fully-diluted basis on specific grant dates - The Company entered into Antibody Paragon Option Agreement (CR-001) and ADC Paragon Option Agreement (CR-002, CR-003) with Paragon and Parascent in September and October 2024[95][123] - Upon exercising options and finalizing license agreements, the Company will make non-refundable milestone payments of up to $22.0 million for CR-001 and up to $46.0 million for CR-002, plus tiered royalties[95] - The Company exercised its option for CR-001 under the Antibody Paragon Option Agreement on March 18, 2025[95] - For the three months ended March 31, 2025, the Company incurred $8.0 million in research and development expense and $0.3 million in general and administrative expense due to Paragon[100] - As of March 31, 2025, unpaid R&D costs included $5.5 million for CR-001, $1.4 million for CR-002, and $1.1 million for CR-003[101][102] - The Paragon Option Agreements also include a Parascent Warrant Obligation to grant warrants for 1.00% of outstanding capital stock on a fully-diluted basis on December 31, 2025, and December 31, 2026[104] 10. Commitments and Contingencies This section addresses the Company's commitments and contingencies, including its 401(k) Plan, indemnification agreements, and legal proceedings. The Company maintains a 401(k) Plan but recorded no matching contributions for the three months ended March 31, 2025. It provides indemnification to various parties, including directors and executive officers, but has not incurred material costs or accrued related liabilities. As of March 31, 2025, the Company was not a party to any material legal proceedings or claims 401(k) Plan This section details the company's 401(k) plan for eligible employees and any related contributions - The Company maintains a defined-contribution 401(k) Plan for eligible employees[107] - No expense related to 401(k) Plan matching contributions was recorded for the three months ended March 31, 2025[107] Indemnification Agreements This section outlines the company's indemnification obligations to various parties and related financial impact - The Company provides indemnification to vendors, lessors, business partners, and its directors and executive officers[108] - No material costs have been incurred, and no liabilities related to such obligations were accrued as of March 31, 2025[108] Legal Proceedings This section reports on any material legal proceedings or claims involving the company - As of March 31, 2025, the Company was not a party to any material legal proceedings or claims[109] 11. Net Loss per Share For the three months ended March 31, 2025, Crescent Biopharma reported a basic and diluted net loss per share attributable to common stockholders of $(18.39). This was based on a net loss of $(15,148) thousand and 823,664 weighted-average common shares outstanding. Potentially dilutive securities, totaling 44,366,531 shares, were excluded from the diluted EPS calculation because their effect was anti-dilutive Net Loss per Share Calculation (Three Months Ended March 31, 2025, in thousands, except share and per share amounts) | Item | Amount | | :---------------------------------------------------- | :------- | | Net loss | $(15,148) | | Weighted-average common shares outstanding, basic and diluted | 823,664 | | Net loss attributable to common stockholders, basic and diluted | $(18.39) | - Potentially dilutive securities, totaling 44,366,531 shares (including convertible preferred stock, unvested RSAs, stock options, and unvested RSUs), were excluded from diluted net loss per share calculation due to their anti-dilutive effect[112] 12. Related Party Transactions Fairmount, Paragon, and Parascent are identified as key related parties, holding significant ownership stakes in Crescent Biopharma. Fairmount holds approximately 74% of outstanding shares (as-converted), Paragon 9%, and Parascent 9%. Material transactions include Fairmount's $4.0 million Series Seed Preferred Stock investment and $15.0 million Convertible Note. Related party equity awards were issued to Fairmount employees. For the three months ended March 31, 2025, $8.0 million in R&D expenses and $0.3 million in G&A expenses were recognized for services from Paragon/Parascent, resulting in $8.381 million in related party accounts payable and other current liabilities - Fairmount, Paragon, and Parascent are identified as related parties, with Fairmount owning approximately 74% of outstanding shares (as-converted), and Paragon and Parascent each owning approximately 9%[113] - Fairmount invested $4.0 million in Series Seed Preferred Stock and holds a $15.0 million Convertible Note[114] - Related party equity awards, including RSAs and stock options, were issued to Fairmount employees[115] - For the three months ended March 31, 2025, $8.0 million in R&D expenses and $0.3 million in G&A expenses were recognized for services provided by Paragon and Parascent[116] Related Party Accounts Payable and Other Current Liabilities (as of March 31, 2025, in thousands) | Category | Amount | | :------------------------------------ | :------- | | Paragon accrued research and development | $8,097 | | Paragon accrued general and administrative | $234 | | Other | $50 | | Total | $8,381 | 13. Segment Reporting Crescent Biopharma operates as a single reportable segment focused on the research and development of its programs: CR-001, CR-002, and CR-003. The Chief Executive Officer, as the chief operating decision maker (CODM), manages operations and allocates resources on a company-wide basis, using net loss and comprehensive loss as the primary measure of segment profit or loss. For the three months ended March 31, 2025, the net loss was $15.148 million, with significant external R&D costs for its programs - The Company has one reportable segment related to the research and development of its programs (CR-001, CR-002, CR-003)[118] - The Chief Executive Officer, as CODM, uses net loss and comprehensive loss to assess performance and allocate resources[118] Segment Loss Summary (Three Months Ended March 31, 2025, in thousands) | Category | Amount | | :------------------------------------ | :------- | | CR-001 external research and development costs | $6,740 | | CR-002 external research and development costs | $1,370 | | CR-003 external research and development costs | $1,063 | | General and administrative personnel costs | $1,660 | | Research and development personnel costs | $1,431 | | Professional and consulting fees | $1,736 | | Other segment items | $1,148 | | Net loss and comprehensive loss | $15,148 | 14. Subsequent Events This section details significant events occurring after March 31, 2025, up to June 18, 2025. Key events include the Company entering into a license agreement for CR-001 and amending the Paragon ADC Option Agreement to add CR-003. Equity awards were significantly increased and granted, while some unvested shares and options were repurchased/forfeited due to a CEO change. A new sublease agreement for office space was signed. Most notably, the Merger with GlycoMimetics was completed on June 13, 2025, forming the new 'Crescent Biopharma, Inc.' after a reverse stock split and a $200.0 million Pre-Closing Financing, with shares and warrants converting based on an Exchange Ratio Option and License Agreements (Subsequent) This section details post-period license agreements for CR-001 and amendments to the ADC Option Agreement for CR-003 - On April 28, 2025, the Company entered into a license agreement for CR-001, including milestone payments up to $22.0 million and tiered royalty payments[122] - On April 28, 2025, the Amended and Restated Paragon ADC Option Agreement was entered to add CR-003, with potential milestone payments up to $46.0 million[123] - As of June 18, 2025, the options for CR-002 or CR-003 had not been exercised[124] Equity Awards (Subsequent) This section reports post-period increases in equity plan shares, new option grants, and repurchases/forfeitures due to CEO change - In April 2025, the 2024 Equity Incentive Plan was increased by 6,434,741 shares, bringing the total to 31,003,257 shares[125] - Options for an aggregate of 10,909,167 shares of common stock were granted to employees and consultants in April and May 2025 at exercise prices ranging from $1.38 to $1.67 per share[125][126] - On April 14, 2025, 885,045 unvested restricted shares were repurchased, and 3,717,141 unvested stock options were forfeited due to the former CEO's departure[127] Sublease Agreement (Subsequent) This section describes a new sublease agreement for office space entered into after the reporting period - On May 28, 2025, the Company entered into a sublease agreement for approximately 25,000 square feet of office space in Waltham, Massachusetts[128] - The sublease has an initial term of 45 months, commencing June 1, 2025, with total lease payments expected to be $2.0 million[128] Reverse Recapitalization and Pre-Closing Financing (Subsequent) This section details the completed merger with GlycoMimetics, reverse stock split, and pre-closing financing - On June 13, 2025, the Company completed its Merger with GlycoMimetics, with GlycoMimetics changing its name to 'Crescent Biopharma, Inc.' and focusing on solid tumor therapies[129] - Immediately prior to the Merger, GlycoMimetics effected a 1-for-100 reverse stock split of its common stock[131] - The Exchange Ratio for the Merger was 0.1445 shares of GlycoMimetics common stock for each Pre-Merger Crescent common stock[131] - The Pre-Closing Financing raised $200.0 million, converting into 12,355,716 shares of common stock and 2,767,122 pre-funded warrants of the combined company[132]