Mural Oncology plc(MURA) - 2025 Q2 - Quarterly Report

Cautionary Statement Regarding Forward-Looking Statements This section warns that forward-looking statements are subject to substantial risks and uncertainties, and actual results may differ - Forward-looking statements are based on current expectations and assumptions, and actual results may differ materially due to inherent uncertainties, risks, and changes in circumstances[8] - Key areas of forward-looking statements include strategic alternatives, post-Separation relationships, product candidate development, manufacturing, funding, safety, business model, intellectual property, expenses, collaborations, regulatory developments, and indemnification liabilities[8] - Important factors that could cause actual results to differ materially are further described in Part II, Item 1A, 'Risk Factors'[9] Summary of the Material Risks Associated with Our Business This section summarizes significant risks that could materially affect the Company's business, prospects, and financial condition - Impact of global economic and political developments (inflation, interest rates, capital market disruptions) on R&D efforts and share value[11] - Uncertainty in identifying and implementing strategic transactions, with potential negative consequences or failure to realize anticipated benefits[11] - Corporate restructuring and headcount reduction may not yield anticipated savings and could disrupt business operations[11] - Limited operating history as a standalone company makes business valuation and prospect prediction challenging[11] - Significant and anticipated ongoing losses, with no approved products or product sales revenue to date[12] - Need for additional funding to advance product candidates, which may not be available on acceptable terms, potentially leading to program delays or scaling back[12] - Lengthy, expensive, and uncertain biopharmaceutical product development process, with risks of unexpected costs, delays, or inability to complete development and commercialization[12] - Potential for side effects or undesirable properties of product candidates to delay or halt clinical trials, prevent regulatory approval, or result in negative post-marketing consequences[12] - Challenges in obtaining or maintaining adequate patent protection, leading to competition and decreased market share[12] - Risks related to the tax-free status of the Separation and Distribution, potentially leading to significant tax liabilities and indemnification obligations[13] - Status as an 'emerging growth company' and 'smaller reporting company' may make ordinary shares less attractive to investors[13] - Volatility in the price of ordinary shares, potentially unrelated to operations, and the risk of an inactive trading market[13] Part I. Financial Information This section presents the Company's unaudited financial statements and management's discussion and analysis Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, operations, equity, and cash flows Condensed Consolidated Balance Sheets The condensed consolidated balance sheets provide a snapshot of the Company's financial position at June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity | ASSETS (in K) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $77,094 | $115,462 | | Marketable securities | — | $28,923 | | Total current assets | $81,556 | $152,917 | | TOTAL ASSETS | $87,555 | $169,394 | | LIABILITIES AND EQUITY (in K) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total current liabilities | $28,418 | $26,195 | | Total liabilities | $28,772 | $28,892 | | Total equity | $58,783 | $140,502 | | TOTAL LIABILITIES AND EQUITY | $87,555 | $169,394 | - Cash and cash equivalents decreased by $38.368 million from December 31, 2024, to June 30, 2025. Total assets decreased by $81.839 million, while total equity decreased by $81.719 million over the same period[16] Condensed Consolidated Statements of Operations and Comprehensive Loss This statement details the Company's operating expenses, operating loss, other income, net loss, and comprehensive loss for the three and six months ended June 30, 2025, and 2024 Operating Results (in K, except share and per share amounts) | Operating Expenses (in K) | 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 | $23,277 | $27,544 | $50,702 | $54,412 | | General and administrative | $8,079 | $6,733 | $15,038 | $13,898 | | Restructuring and impairment | $17,486 | — | $17,486 | — | | Total operating expenses | $48,842 | $34,277 | $83,226 | $68,310 | | Operating loss (in K) | $(48,842) | $(34,277) | $(83,226) | $(68,310) | | Other income (in K) | $860 | $2,713 | $2,107 | $5,829 | | Net loss (in K) | $(47,982) | $(31,564) | $(81,119) | $(62,481) | | Net loss per ordinary share - basic and diluted ($) | $(2.78) | $(1.86) | $(4.71) | $(3.71) | - Net loss increased significantly for both the three-month period (from $(31,564)K to $(47,982)K) and six-month period (from $(62,481)K to $(81,119)K) ended June 30, 2025, primarily due to restructuring and impairment charges[19] Condensed Consolidated Statements of Equity (Deficit) This statement outlines the changes in the Company's equity (deficit) for the periods ended June 30, 2025, and June 30, 2024, reflecting net losses, share issuances, and share-based compensation Changes in Equity (in K, except share data) | Item | Balance, Dec 31, 2024 | Q1 2025 Activity | Balance, Mar 31, 2025 | Q2 2025 Activity | Balance, Jun 30, 2025 | | :-------------------------------- | :-------------------- | :--------------- | :-------------------- | :--------------- | :-------------------- | | Ordinary Shares (Shares) | 17,095,371 | 169,446 | 17,264,817 | 9,720 | 17,274,537 | | Ordinary Shares (Amount in K) | $171 | $2 | $173 | $0 | $173 | | Additional Paid-in Capital (in K) | $299,682 | $539 | $300,221 | $(1,121) | $299,100 | | Other Comprehensive (Loss)/Gain (in K) | $20 | $(19) | $1 | $(1) | $0 | | Accumulated Deficit (in K) | $(159,371) | $(33,137) | $(192,508) | $(47,982) | $(240,490) | | Total Equity (in K) | $140,502 | $(32,615) | $107,887 | $(49,104) | $58,783 | - Total equity decreased from $140,502 thousand at December 31, 2024, to $58,783 thousand at June 30, 2025, primarily due to accumulated net losses[22] Condensed Consolidated Statements of Cash Flows This statement summarizes the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024