Terns Pharmaceuticals(US:TERN)2025-08-05 20:31PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents Terns Pharmaceuticals' unaudited condensed consolidated financial statements for Q2 2025, detailing balance sheets, operations, equity, cash flows, and accounting policies Condensed Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | Percentage Change | | :-------------------- | :------------ | :---------------- | :----- | :---------------- | | Cash and cash equivalents | $145,966 | $161,439 | $(15,473) | -9.58% | | Marketable securities | $169,479 | $196,725 | $(27,246) | -13.85% | | Total current assets | $318,952 | $362,109 | $(43,157) | -11.92% | | Total assets | $320,415 | $363,929 | $(43,514) | -11.96% | | Total current liabilities | $12,914 | $15,650 | $(2,736) | -17.48% | | Total liabilities | $15,186 | $18,059 | $(2,873) | -15.91% | | Total stockholders' equity | $305,229 | $345,870 | $(40,641) | -11.75% | | Accumulated deficit | $(469,482) | $(421,481) | $(47,999) | 11.39% | Condensed Consolidated Statements of Operations and Comprehensive Loss This section outlines the company's financial performance over the past three and six months, detailing revenues, expenses, and net loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :----------------------------- | :----------------------------- | :----- | | Research and development | $20,353 | $18,352 | $2,001 | $39,073 | $36,939 | $2,134 | | General and administrative | $7,030 | $7,185 | $(155) | $15,737 | $14,044 | $1,693 | | Total operating expenses | $27,383 | $25,537 | $1,846 | $54,810 | $50,983 | $3,827 | | Loss from operations | $(27,383) | $(25,537) | $(1,846) | $(54,810) | $(50,983) | $(3,827) | | Interest income | $3,350 | $2,876 | $474 | $6,993 | $6,058 | $935 | | Net loss | $(24,093) | $(22,736) | $(1,357) | $(48,001) | $(45,109) | $(2,892) | | Net loss per share, basic and diluted | $(0.26) | $(0.31) | $0.05 | $(0.52) | $(0.61) | $0.09 | Condensed Consolidated Statements of Stockholders' Equity This section details changes in the company's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit | Metric (in thousands) | Balances at December 31, 2024 | Balances at June 30, 2025 | Change | | :-------------------- | :---------------------------- | :------------------------ | :----- | | Common Stock (Amount) | $9 | $9 | $0 | | Additional Paid-in Capital | $767,621 | $774,724 | $7,103 | | Accumulated Other Comprehensive (Loss) Income | $(279) | $(22) | $257 | | Accumulated Deficit | $(421,481) | $(469,482) | $(48,001) | | Total Stockholders' Equity | $345,870 | $305,229 | $(40,641) | - The company issued 95,276 shares under its employee stock purchase plan and 36,637 shares from stock option exercises during the six months ended June 30, 202519 Condensed Consolidated Statements of Cash Flows This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | | Net cash used in operating activities | $(43,320) | $(38,977) | $(4,343) | | Net cash provided by investing activities | $27,459 | $50,188 | $(22,729) | | Net cash provided by financing activities | $392 | $399 | $(7) | | Net (decrease) increase in cash and cash equivalents | $(15,473) | $11,570 | $(27,043) | | Cash and cash equivalents at end of period | $145,966 | $91,496 | $54,470 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements 1. Nature of the Business, Basis of Presentation and Summary of Significant Accounting Policies This note describes Terns Pharmaceuticals' business, the basis for its financial statement presentation, and its key accounting policies - Terns Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company developing small-molecule product candidates for oncology and obesity27 - In September 2024, the company completed an underwritten public offering, issuing 14,064,048 shares of common stock and pre-funded warrants for 2,380,952 shares, generating aggregate net proceeds of $161.9 million36137 - The company manages its operations as a single segment for performance assessment and operating decisions29102103 2. Cash Equivalents and Marketable Securities This note details the composition and fair value of the company's cash equivalents and marketable securities, primarily money market funds and U.S. government securities | Asset Type (in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Amortized Cost (December 31, 2024) | Fair Value (December 31, 2024) | | :------------------------ | :----------------------------- | :------------------------- | :--------------------------------- | :------------------------------- | | Money market funds | $124,002 | $124,002 | $147,566 | $147,566 | | U.S. government securities | $169,272 | $169,479 | $196,803 | $196,725 | | Total | $293,274 | $293,481 | $344,369 | $344,291 | - As of June 30, 2025, the company had 5 available-for-sale marketable securities in an unrealized loss position, but management does not intend to sell them and expects to hold them until maturity, believing an allowance for credit losses is unnecessary due to high credit quality and market-driven fair value declines72 [3. Fair Value Measurements](index=19&type=section&id=3.%20Fair%20Value%2