Nautilus Biotechnology(US:NAUT)2025-07-31 20:35PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and related notes for the periods ended June 30, 2025, detailing the company's financial position and performance Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, for the periods ended June 30, 2025 Condensed Consolidated Balance Sheets This table provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $34,457 | $27,646 | | Short-term investments | $113,416 | $102,247 | | Total current assets | $150,725 | $132,826 | | Total assets | $213,189 | $242,743 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $8,137 | $7,632 | | Total liabilities | $32,095 | $34,013 | | Accumulated deficit | $(304,665) | $(273,019) | | Total stockholders' equity | $181,094 | $208,730 | Condensed Consolidated Statements of Operations This table presents the company's operating expenses, interest income, and net loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (Unaudited) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $10,394 | $12,436 | $21,930 | $25,366 | | General and administrative | $6,703 | $8,353 | $14,011 | $17,030 | | Total operating expenses | $17,097 | $20,789 | $35,941 | $42,396 | | Interest income | $2,080 | $2,798 | $4,311 | $5,675 | | Net loss | $(15,033) | $(18,010) | $(31,646) | $(36,740) | | Net loss per share | $(0.12) | $(0.14) | $(0.25) | $(0.29) | Condensed Consolidated Statements of Cash Flows This table summarizes the cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(27,287) | $(31,723) | | Net cash provided by investing activities | $33,985 | $36,647 | | Net cash provided by financing activities | $113 | $564 | | Net increase in cash, cash equivalents and restricted cash | $6,811 | $5,488 | Notes to Condensed Consolidated Financial Statements These notes provide essential details on the company's business, accounting policies, development-stage status, and financial commitments - Nautilus is a development-stage biotechnology company focused on its proteomics platform, devoting substantially all resources to R&D, and has not generated any revenue since its inception in 201628 - The company has incurred net operating losses every year since inception and had an accumulated deficit of $304.7 million as of June 30, 202532 - Management believes its cash, cash equivalents, and short-term investments of $147.9 million as of June 30, 2025, are sufficient to fund operations for at least the next twelve months33 - As of June 30, 2025, the company had open purchase commitments for goods and services of $1.5 million and total future minimum lease payments of $35.8 million7780 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes the company's financial condition and operational results, highlighting its development-stage status, expense trends, liquidity, and capital resources Overview This overview describes Nautilus as a development-stage life sciences company focused on its proteomics platform, with no commercialized products or revenue to date - Nautilus is a development-stage life sciences company creating a platform technology for quantifying the proteome, with no commercialized products or generated revenue yet8889 - The company plans a three-phase commercial launch for its platform, with a broader launch anticipated in late 2026, currently in the first phase of research collaborations92 Results of Operations This section details the company's operating expenses, showing a decrease in research and development and general and administrative costs for the periods presented Comparison of Operating Results (Q2 2025 vs. Q2 2024) | (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $10,394 | $12,436 | $(2,042) | (16)% | | General and administrative | $6,703 | $8,353 | $(1,650) | (20)% | | Total operating expenses | $17,097 | $20,789 | $(3,692) | (18)% | - The decrease in Q2 2025 operating expenses was driven by lower salaries and benefits from a March 2025 reduction in force, reduced laboratory services, and lower stock-based compensation as initial merger-related grants became fully expensed110111 Comparison of Operating Results (Six Months Ended June 30, 2025 vs. 2024) | (in thousands) | H1 2025 | H1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $21,930 | $25,366 | $(3,436) | (14)% | | General and administrative | $14,011 | $17,030 | $(3,019) | (18)% | | Total operating expenses | $35,941 | $42,396 | $(6,455) | (15)% | Liquidity and Capital Resources This section discusses the company's cash position, capital funding strategies, and its recent Nasdaq minimum bid price deficiency notice - As of June 30, 2025, the company had cash, cash equivalents, and investments of $179.5 million, which management believes is sufficient to fund operations for at least the next twelve months117125 - In February 2024, the company established an "at the market" (ATM) offering program to sell up to $125.0 million of common stock, with no shares sold under this program during the first six months of 2025119 - On May 2, 2025, the company received a deficiency letter from Nasdaq for its stock price falling below the $1.00 minimum bid requirement, with a 180-day compliance period122123 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company's primary market risks include interest rate fluctuations affecting its investment portfolio and inflation impacting operating costs - The company's main market risks are interest rate risk on its $179.5 million in cash and investments, and inflation risk on its operating costs144145146 Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025148 PART II - OTHER INFORMATION This section covers other information including legal proceedings, risk factors, equity sales, defaults, mine safety, and exhibits Item 1. Legal Proceedings The company may become involved in various claims and legal proceedings in the ordinary course of business - A lawsuit filed by the company in December 2023 against Somalogic, Inc. and the California Institute of Technology concerning a patent dispute was settled and dismissed in November 202479 Item 1A. Risk Factors This section outlines significant risks to the company's business, including its development-stage status, dependence on platform commercialization, competition, capital needs, and intellectual property protection - The business is entirely dependent on the successful development and commercialization of its Nautilus platform, which remains in the development stage and faces significant scientific, technical, and market acceptance challenges156172 - The company faces significant competition from large, established life sciences companies with greater financial, manufacturing, and commercial resources156193194 - The company anticipates needing to raise additional capital to fund its development and commercialization plans, with fundraising potentially impacted by adverse economic conditions159213214 - The company faces substantial risks related to obtaining and maintaining sufficient intellectual property protection for its technology and may become involved in costly litigation160162222 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the period - None366 Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the period - None367 Item 4. Mine Safety Disclosures This section is not applicable to the company - None368 Item 5. Other Information No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the last fiscal quarter - No directors or officers adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during the quarter369 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer