Corbus Pharmaceuticals(CRBP) - 2025 Q2 - Quarterly Report

PART I FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements, management's analysis, market risk disclosures, and internal controls for the period Item 1. Condensed Consolidated Financial Statements (unaudited) Presents unaudited condensed consolidated financial statements, reporting a $34.6 million net loss for H1 2025 and decreased total assets to $125.1 million Condensed Consolidated Balance Sheets Total assets decreased to $125.1 million by June 30, 2025, with stockholders' equity at $111.0 million reflecting the net loss Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $20,044 | $17,198 | | Investments | $96,548 | $131,864 | | Total current assets | $122,825 | $152,976 | | Total assets | $125,085 | $155,879 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $13,333 | $11,818 | | Total liabilities | $14,094 | $13,451 | | Total stockholders' equity | $110,991 | $142,428 | | Total liabilities and stockholders' equity | $125,085 | $155,879 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss increased to $34.6 million for H1 2025, primarily due to a significant rise in research and development expenses Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Research and development | $15,187 | $6,865 | $30,829 | $12,627 | | General and administrative | $3,965 | $4,123 | $8,098 | $7,984 | | Total operating expenses | $19,152 | $10,988 | $38,927 | $20,611 | | Operating loss | $(19,152) | $(10,988) | $(38,927) | $(20,611) | | Net loss | $(17,662) | $(9,997) | $(34,640) | $(16,896) | | Net loss per share, basic and diluted | $(1.44) | $(0.90) | $(2.83) | $(1.75) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased to $111.0 million by June 30, 2025, primarily due to the $34.6 million net loss - Stockholders' equity decreased to $111.0 million at June 30, 2025, from $142.4 million at December 31, 2024, mainly due to a net loss of $34.6 million[22] - In the first six months of 2024, the company raised $144.4 million from common stock issuance, significantly increasing stockholders' equity[22] Condensed Consolidated Statements of Cash Flows Net cash used in operations was $33.0 million for H1 2025, with a $2.8 million net increase in cash from investing activities Cash Flow Summary (in thousands) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash used in operating activities | $(33,020) | $(16,910) | | Net cash provided by (used in) investing activities | $35,866 | $(114,675) | | Net cash provided by financing activities | $— | $141,547 | | Net increase in cash, cash equivalents, and restricted cash | $2,846 | $9,962 | Notes to Condensed Consolidated Financial Statements Details accounting policies, liquidity, and significant license agreements with potential milestone payments for its clinical pipeline - The company is a clinical-stage oncology and obesity company with a pipeline including CRB-701 (ADC for solid tumors), CRB-601 (anti-integrin monoclonal antibody), and CRB-913 (CB1 receptor inverse agonist for obesity)[28] - The company expects its cash, cash equivalents, and investments of approximately $116.6 million at June 30, 2025, will be sufficient for at least twelve months from the report's issuance[33] - Significant potential future milestone payments include up to $18.0 million for CRB-913, $150.8 million for CRB-601, and a combined $685.0 million for CRB-701 in development, regulatory, and commercial milestones[42][46][48] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition, increased R&D expenses for its clinical pipeline, and liquidity, projecting funds through Q2 2027 - The company's pipeline consists of CRB-701 (Nectin-4 ADC), CRB-601 (anti-αvβ8 mAb), and CRB-913 (CB1 inverse agonist for obesity)[93] - Key clinical milestones expected in late 2025 include dose expansion data for CRB-701 at ESMO, identification of the recommended Phase 2 dose for CRB-701, initiation of a Phase 1b study for CRB-913, and dose escalation data for CRB-601[95][96] - Based on current plans, the company's cash, cash equivalents, and investments of $116.6 million as of June 30, 2025, are expected to fund operations through Q2 2027[120] Results of Operations Operating expenses significantly increased due to substantial rises in research and development costs across all three clinical programs Liquidity and Capital Resources Working capital was $109.5 million at June 30, 2025, with funds projected through Q2 2027, requiring additional capital for trials - At June 30, 2025, the company had total current assets of $122.8 million and current liabilities of $13.3 million, resulting in working capital of $109.5 million[116] Cash Flow Summary (in thousands) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net cash used in operating activities | $(33,020) | $(16,910) | | Net cash provided by (used in) investing activities | $35,866 | $(114,675) | | Net cash provided by financing activities | $— | $141,547 | - The company will need to raise significant additional capital to continue funding clinical trials for CRB-701, CRB-601, and CRB-913[121] Item 3. Quantitative and Qualitative Disclosures about Market Risk Quantitative and qualitative disclosures about market risk are indicated as not applicable for the company - The company has indicated that quantitative and qualitative disclosures about market risk are not applicable[129] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[131] - No material changes in internal control over financial reporting occurred during the quarter[132] PART II OTHER INFORMATION This section details legal proceedings, updated risk factors, equity sales, other disclosures, and a list of exhibits Item 1. Legal Proceedings The company is not currently subject to any material legal proceedings - The company is not currently subject to material legal proceedings[134] Item 1A. Risk Factors No material changes to risk factors from the 2024 Annual Report, but adverse global economic conditions pose potential negative impacts - There have been no material changes in or additions to the risk factors included in the 2024 Annual Report[135] - The company highlights potential negative impacts from adverse global conditions, including economic uncertainty, pandemics, geopolitical instability, and changes in international trade policy or tariffs[136][137][138] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities occurred during the reporting period - None[139] Item 5. Other Information No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers in Q2 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during Q2 2025[142] Item 6. Exhibits Lists exhibits filed with the Quarterly Report on Form 10-Q, including CEO/CFO certifications and Inline XBRL documents - The report includes filed exhibits such as CEO and CFO certifications (31.1, 31.2) and Inline XBRL data files (101.INS, 101.SCH, 104)[145]