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Boundless Bio, Inc.(BOLD) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward-Looking Statements and Market and Industry Data Forward-Looking Statements This section outlines forward-looking statements, detailing risks such as limited operating history, capital needs, and unproven therapeutic approaches - The report contains forward-looking statements concerning future operations, financial position, use of IPO proceeds, cash runway, benefits of portfolio prioritization, timing and success of clinical trials, regulatory submissions, potential benefits of ecDTx, and intellectual property strategies7 - Key risks include a limited operating history, significant operating losses, substantial additional capital requirements, early development stage with only one active clinical trial (BBI-355 and BBI-825 combination), novel and unproven approach to treating cancer with ecDTx, lengthy and expensive clinical development with uncertain outcomes, potential side effects, reliance on third parties, significant competition, and volatile stock price811 - The company operates in an evolving environment, and new risk factors and uncertainties may emerge, making forward-looking statements inherently subject to risks and uncertainties9 PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents unaudited condensed financial statements, detailing financial position, operational performance, and cash flows Condensed Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | $179,453 | $206,409 | | Total liabilities | $56,762 | $55,767 | | Total stockholders' equity | $122,691 | $150,642 | - Total assets decreased by $26.96 million from December 31, 2024, to June 30, 2025, primarily due to a reduction in cash, cash equivalents, and short-term investments15 - Total stockholders' equity decreased by $27.95 million, largely driven by the accumulated deficit from net losses15 Condensed Statements of Operations and Comprehensive Loss This section details the company's operational performance, including revenues, expenses, and net loss over specific periods | Metric (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 | $12,218 | $14,735 | $24,355 | $27,864 | | General and administrative | $4,843 | $4,656 | $10,047 | $8,410 | | Total operating expenses | $17,061 | $19,391 | $34,402 | $36,274 | | Net loss | $(15,675) | $(16,976) | $(31,433) | $(32,406) | | Net loss per share, basic and diluted | $(0.70) | $(0.77) | $(1.41) | $(2.78) | - Net loss decreased by $1.3 million for the three months ended June 30, 2025, and by $0.97 million for the six months ended June 30, 2025, compared to the respective prior year periods18 - Research and development expenses decreased by $2.5 million (3 months YoY) and $3.5 million (6 months YoY), while general and administrative expenses increased by $0.2 million (3 months YoY) and $1.6 million (6 months YoY)18 Condensed Statements of Convertible Preferred Stock and Stockholders' Equity/ (Deficit) This section outlines changes in convertible preferred stock and stockholders' equity, reflecting capital structure evolution and accumulated deficit | Metric (in thousands) | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :-------------------- | :---------------- | :------------- | :------------ | | Total stockholders' equity | $150,642 | $136,592 | $122,691 | | Accumulated deficit | $(201,472) | $(217,230) | $(232,905) | - The accumulated deficit increased from $(201.5) million at December 31, 2024, to $(232.9) million at June 30, 2025, reflecting ongoing net losses21 - Stock-based compensation contributed $3.49 million to additional paid-in capital during the six months ended June 30, 202521 Condensed Statements of Cash Flows This section details cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,359) | $(32,012) | | Net cash provided by/ (used in) investing activities | $14,352 | $(50,054) | | Net cash provided by financing activities | $117 | $89,723 | | Net increase/ (decrease) in cash, cash equivalents, and restricted cash | $(11,890) | $7,657 | - Net cash used in operating activities decreased by $5.65 million for the six months ended June 30, 2025, compared to the prior year, primarily due to reduced third-party spending on discovery, development, and clinical activities24131 - Investing activities shifted from a net outflow of $50.1 million in H1 2024 to a net inflow of $14.4 million in H1 2025, driven by net maturities of available-for-sale securities24132 - Financing activities provided significantly less cash in H1 2025 ($0.1 million) compared to H1 2024 ($89.7 million), as the prior period included net proceeds from the IPO24133 Notes to Condensed Financial Statements 1. Organization and Basis of Presentation This section describes the company's business, IPO details, and financial position, including cash runway and accumulated deficit - Boundless Bio, Inc is a clinical-stage precision oncology company focused on developing ecDNA-directed therapeutic candidates (ecDTx) for oncogene amplified tumors27 - The company completed its IPO on April 2, 2024, selling 6,250,000 shares at $16.00 per share, generating approximately $87.7 million in net proceeds28 - As of June 30, 2025, the company had $127.1 million in cash, cash equivalents, and short-term investments, which it believes will fund operations for at least twelve months32[36](index=36&type=chunk] It has an accumulated deficit of $232.9 million and expects to incur significant operating losses for the foreseeable future3236 2. Summary of Significant Accounting Policies This section outlines the accounting principles used in financial statement preparation, noting no material policy changes - The condensed financial statements are prepared in accordance with U.S GAAP and SEC interim reporting requirements, with certain footnote disclosures condensed or omitted37 - There were no material changes to the company's significant accounting policies during the six months ended June 30, 202539 - The company qualifies as an 'emerging growth company' (EGC) and has elected to use the extended transition period for complying with new or revised financial accounting standards40 3. Fair Value Measurements This section details the fair value of financial assets, categorizing them by valuation inputs (Level 1 and Level 2) | Asset Type (in thousands) | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :------------------------ | :----------------------- | :--------------------------- | | Money market funds (Level 1) | $11,797 | $24,889 | | U.S. government obligations (Level 2) | $112,451 | $118,289 | | Corporate debt securities (Level 2) | — | $7,238 | | Total fair value of assets | $124,248 | $150,416 | - Money market funds are classified as Level 1, while U.S government obligations and corporate debt securities are classified as Level 2, reflecting valuation based on observable market data47 4. Investments This section provides details on the company's investment portfolio, including money market funds and government obligations | Investment Type (in thousands) | June 30, 2025 Estimated Fair Value | December 31, 2024 Estimated Fair Value | | :----------------------------- | :--------------------------------- | :----------------------------------- | | Money market funds | $11,797 | $24,889 | | U.S. government obligations | $112,451 | $118,289 | | Corporate debt securities | — | $7,238 | | Total cash equivalents and investments | $124,248 | $150,416 | - As of June 30, 2025, there were 21 available-for-sale securities with an estimated fair value of $78.6 million in gross unrealized loss positions, primarily due to the rising interest rate environment52 5. Property and Equipment This section details the company's property and equipment, net of accumulated depreciation and amortization | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Lab equipment | $4,374 | $4,338 | | Computers and software | $899 | $895 | | Leasehold improvements | $1,030 | $981 | | Furniture and fixtures | $1,834 | $1,816 | | Total property and equipment | $8,137 | $8,030 | | Less accumulated depreciation and amortization | $(4,343) | $(3,709) | | Property and equipment, net | $3,794 | $4,321 | - Net property and equipment decreased from $4.32 million at December 31, 2024, to $3.79 million at June 30, 2025, primarily due to accumulated depreciation and amortization53 6. Accounts Payable and Accrued Liabilities This section outlines the company's short-term liabilities, including accounts payable and accrued research and development costs | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Accounts payable | $2,294 | $1,274 | | Accrued research and development costs | $3,058 | $2,584 | | Other accrued liabilities | $503 | $1,496 | | Total accounts payable and accrued liabilities | $5,855 | $5,354 | - Total accounts payable and accrued liabilities increased by $0.5 million from December 31, 2024, to June 30, 2025, mainly driven by an increase in accounts payable and accrued R&D costs54 7. Lease Agreements This section details the company's non-cancelable facility lease, including future minimum payments and operating lease liabilities - The company entered into a non-cancelable facility lease (2024 Lease) for its San Diego headquarters, commencing November 2024 with base rent payments starting July 2025, for a 120-month term5557 - Future minimum lease payments under the 2024 Lease as of June 30, 2025, total $72.3 million, with operating lease liabilities recorded at $49.5 million60 - Lease expense for the three months ended June 30, 2025, was approximately $2.4 million, significantly higher than $0.7 million in the prior year, due to the new 2024 Lease58 8. Commitments and Contingencies This section describes the company's contractual commitments, indemnification obligations, and absence of material litigation - The company enters into cancellable contracts for preclinical research, clinical trials, manufacturing, and other services, which generally provide for termination upon notice without significant penalty61 - The company provides indemnification to vendors, lessors, business partners, officers, and directors, with potential future payments being unlimited in many cases, but no material costs have been incurred to date6264 - There are no material outstanding litigation matters, and no liabilities for loss contingencies have been accrued as of June 30, 2025, or December 31, 202465 9. Common Stock This section details common stock options, equity awards, and shares available for issuance under employee plans | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Common stock options issued and outstanding | 4,647 | 3,818 | | Equity awards available for future issuance | 2,934 | 2,648 | | Shares available for purchase under employee stock purchase plan | 325 | 187 | | Total | 7,906 | 6,653 | - The total number of common stock shares reserved for future issuance increased from 6.65 million at December 31, 2024, to 7.91 million at June 30, 202566 10. Stock-Based Compensation This section outlines the company's stock-based compensation plans, including options, exercise prices, and related expenses - The 2024 Incentive Award Plan became effective with the IPO, authorizing 3,765,892 shares for issuance as of June 30, 2025, including an evergreen provision increase67 | Metric (in thousands, except per share data) | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | Balance of stock options outstanding | 4,647 | 3,818 | | Weighted-average exercise price | $5.10 | $6.37 | | Unrecognized compensation cost (stock options) | $11,800 | N/A | | Unrecognized compensation cost (ESPP) | $700 | N/A | | Stock-Based Compensation Expense (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 | $642 | $888 | $1,357 | $1,412 | | General and administrative | $1,051 | $1,247 | $2,133 | $2,051 | | Total stock-based compensation | $1,693 | $2,135 | $3,490 | $3,463 | 11. Net Loss Per Common Share This section presents the calculation of net loss per common share, basic and diluted, for the reported periods | Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(15,675) | $(16,976) | $(31,433) | $(32,406) | | Weighted-average shares | 22,356 | 22,023 | 22,328 | 11,641 | | Net loss per share, basic and diluted | $(0.70) | $(0.77) | $(1.41) | $(2.78) | - Potential common shares from options were excluded from diluted net loss per share calculation as their inclusion would be anti-dilutive due to the net loss79 12. Segment Information This section confirms the company operates as a single reporting segment, focusing on ecDTx development with no revenue | Expense Category (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 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | R&D – Compensation and benefits | $3,217 | $3,679 | $6,512 | $7,165 | | R&D – Clinical trial costs | $2,448 | $2,935 | $5,298 | $5,532 | | G&A – Compensation and benefits | $1,528 | $1,645 | $3,102 | $3,192 | | Facilities related | $2,400 | $652 | $4,699 | $1,304 | | Total operating expense | $17,061 | $19,391 | $34,402 | $36,274 | - The company operates and manages its business as one reporting and one operating segment, focused on designing and developing ecDTx, with no revenue recorded to date4181 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition and results, focusing on ecDNA therapeutics, portfolio prioritization, and financial impacts, including liquidity Overview This section provides an overview of the company's clinical-stage oncology focus, portfolio prioritization, and workforce reduction - Boundless Bio is a clinical-stage precision oncology company developing ecDNA-directed therapeutic candidates (ecDTx) for oncogene amplified tumors, a condition affecting 14% to 17% of cancer patients84 - The company announced a portfolio prioritization on May 23, 2025, focusing on the BBI-355/BBI-825 combination, advancing the Kinesin program with BBI-940, and extending its cash runway into the first half of 20288695 - Due to a narrow therapeutic index and lack of dose-proportional exposure, respectively, BBI-355 and BBI-825 single-agent clinical development arms were discontinued, but a combination arm for BBI-355/BBI-825 has been opened based on preclinical synergistic activity878889 - The company incurred a $1.0 million charge related to a workforce reduction of approximately one-third, completed by June 30, 2025, as part of streamlining operations95 Macroeconomic, Political, and Regulatory Environment Considerations This section addresses risks from macroeconomic, political, and regulatory environments, including market volatility and potential FDA delays - Uncertainty in global macroeconomic, political, and regulatory environments poses significant risks, including market volatility, high interest rates, inflation, and potential disruptions to service providers and clinical sites99 - Changes at the FDA, such as staff departures or funding shortages, could delay regulatory approvals and increase development costs100 Components of Our Results of Operations This section details the components of operating results, including R&D and G&A expenses, and future revenue expectations - The company has not generated any revenue from product sales to date and does not expect to until ecDTx achieve regulatory approval, which may take several years102 - Operating expenses consist of research and development (R&D) and general and administrative (G&A) expenses103 R&D expenses are primarily for the Spyglass platform, ecDTx discovery, preclinical/clinical development, and ecDNA diagnostic development104 - G&A expenses include personnel costs, facility-related costs, legal fees, professional fees, and insurance111 Both R&D and G&A expenses are expected to increase as the business grows and potentially commercializes products112 Results of Operations Comparison of the Three Months Ended June 30, 2025 and 2024 This section compares financial performance for the three months ended June 30, 2025 and 2024, highlighting changes in expenses and net loss | Metric (in thousands) | June 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------ | :------------ | :----- | | Research and development | $12,218 | $14,735 | $(2,517) | | General and administrative | $4,843 | $4,656 | $187 | | Interest income | $1,386 | $2,382 | $(996) | | Net loss | $(15,675) | $(16,976) | $1,301 | - R&D expenses decreased by $2.5 million, primarily due to reduced spending on the BBI-825 clinical trial and lower personnel, outside services, and lab supply costs, partially offset by increased facilities-related expenses116 - G&A expenses increased by $0.2 million, mainly due to higher facilities-related costs, partially offset by decreased stock-based compensation and other personnel costs117 - Other income, net, decreased by $1.0 million due to a reduction in interest income from a smaller investment portfolio and lower market yields118 Comparison of the Six Months Ended June 30, 2025 and 2024 This section compares financial performance for the six months ended June 30, 2025 and 2024, highlighting changes in expenses and net loss | Metric (in thousands) | June 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------ | :------------ | :----- | | Research and development | $24,355 | $27,864 | $(3,509) | | General and administrative | $10,047 | $8,410 | $1,637 | | Interest income | $2,971 | $3,803 | $(832) | | Net loss | $(31,433) | $(32,406) | $973 | - R&D expenses decreased by $3.5 million, driven by reduced direct program costs for BBI-825, lower personnel, outside services, and lab supply costs, partially offset by a $2.7 million increase in facilities-related expenses120 - G&A expenses increased by $1.6 million, primarily due to a $1.0 million increase in facilities-related costs and a $0.5 million increase in professional service fees121 - Other income, net, decreased by $0.9 million due to reduced interest income from a smaller investment portfolio and lower market yields122 Liquidity and Capital Resources This section details the company's capital raised, current cash position, projected cash runway, and future funding requirements - The company has raised $353.8 million to date, primarily from convertible preferred stock and common stock sales, including $87.7 million net proceeds from its April 2024 IPO123 - As of June 30, 2025, cash, cash equivalents, and short-term investments totaled $127.1 million, projected to fund operations into the first half of 2028126 - The company expects to incur substantial losses for the foreseeable future and will require significant additional funding, likely through equity offerings, debt financings, or collaborations, to support its development and potential commercialization efforts127129 | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(26,359) | $(32,012) | | Net cash provided by/ (used in) investing activities | $14,352 | $(50,054) | | Net cash provided by financing activities | $117 | $89,723 | Contractual Obligations and Other Commitments This section outlines the company's operating lease commitments and cancellable contracts for services - As of June 30, 2025, total future aggregate operating lease commitments for office and lab space amount to $72.3 million, expiring in October 2034134 - The company enters into cancellable contracts for clinical trial, preclinical research, and manufacturing services, which are not separately presented as they generally allow for termination after a notice period135 Off-Balance Sheet Arrangements This section confirms the absence of any off-balance sheet arrangements since the company's inception - The company has not had any off-balance sheet arrangements since its inception, as defined under SEC rules and regulations136 Critical Accounting Policies and Significant Estimates and Judgments This section discusses key accounting policies and estimates, particularly for R&D expenses and stock-based compensation - The preparation of financial statements requires management to make estimates and judgments, particularly concerning accrued R&D expenses and stock-based compensation137 - There have been no material changes to the company's critical accounting policies and estimates from those described in its 2024 10-K138 Emerging Growth Company and Smaller Reporting Company Status This section explains the company's status as an EGC and smaller reporting company, detailing associated disclosure elections - The company qualifies as an 'emerging growth company' (EGC) and has elected to use the extended transition period for complying with new or revised accounting standards, allowing delayed adoption139 - The company will remain an EGC until the earliest of December 31, 2029, or other conditions related to revenue, market value, or debt issuance140 - The company is also a 'smaller reporting company' and can take advantage of scaled disclosures as long as its public float or annual revenue remains below specified thresholds141 Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Boundless Bio, Inc is not required to provide quantitative and qualitative disclosures about market risk - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk143 Item 4. Controls and Procedures Management concluded disclosure controls were effective as of June 30, 2025, with internal control over financial reporting evaluation deferred for newly public companies - As of June 30, 2025, the company's disclosure controls and procedures were effective in providing reasonable assurance that required information is recorded, processed, summarized, and reported timely144 - Due to SEC rules for newly public companies, management is not yet required to evaluate the effectiveness of internal control over financial reporting until after the filing of the 2025 Annual Report on Form 10-K145 PART II. OTHER INFORMATION Item 1. Legal Proceedings There are no material pending legal proceedings against the company, nor is management aware of any contemplated governmental proceedings - There are no material pending legal proceedings against the company, and management is unaware of any contemplated governmental proceedings148 Item 1A. Risk Factors Investing in the company's common stock involves high risk, with no material changes to previously disclosed risk factors in the 2024 10-K - Investing in the company's common stock involves a high degree of risk, and investors should carefully consider the risks and uncertainties described in the 2024 10-K149 - There have been no material changes to the risk factors set forth in Part I, Item 1A of the company's 2024 10-K149 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section reports no unregistered sales or issuer purchases, detailing the shifted use of IPO proceeds to support BBI-355/BBI-825 and BBI-940 programs (a) Recent Sales of Unregistered Securities. This section confirms there have been no recent unregistered sales of equity securities by the company - There have been no recent unregistered sales of equity securities150 (b) Use of Proceeds. This section details the net proceeds from the April 2024 IPO and their reallocated use for key therapeutic programs - The IPO, completed on April 2, 2024, generated net proceeds of approximately $87.7 million after deducting underwriting discounts and offering expenses151 - The planned use of IPO net proceeds has shifted due to portfolio prioritization, now directed to support the BBI-355/BBI-825 combination and BBI-940 programs, including initial proof-of-concept clinical data, research and development of other ecDTx programs, and general corporate purposes152 (c) Issuer Purchases of Equity Securities. This section confirms there have been no issuer purchases of equity securities by the company - There have been no issuer purchases of equity securities153 Item 3. Defaults Upon Senior Securities Boundless Bio, Inc has not defaulted upon any senior securities - There have been no defaults upon senior securities154 Item 4. Mine Safety Disclosures This item is not applicable to Boundless Bio, Inc - This item is not applicable155 Item 5. Other Information This section discloses a Rule 10b5-1 trading arrangement adopted by the Chief Medical Officer for 45,000 shares - Robert Doebele, MD, Ph.D, Chief Medical Officer, adopted a Rule 10b5-1 trading arrangement on April 3, 2025, covering 45,000 shares with an expiration date of August 3, 2026156157 Item 6. Exhibits This section lists exhibits filed with Form 10-Q, including corporate governance documents and officer certifications - The exhibits include the Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, certifications of principal executive and financial officers (31.1, 31.2, 32.1), and Inline XBRL documents (101.INS, 101.SCH, 104)160