Aligos Therapeutics(ALGS) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents unaudited consolidated financial statements, detailing financial position, operations, equity, and cash flows Item 1. Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, including balance sheets, income, equity, and cash flows, with accompanying notes Condensed Consolidated Balance Sheets Total assets increased to $134.7 million, liabilities decreased, and stockholders' equity turned positive, driven by investments and warrant liability changes | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $18,661 | $36,997 | | Short-term investments | $104,284 | $19,942 | | Total current assets | $127,944 | $62,141 | | Total assets | $134,706 | $70,094 | | 2023 common warrants liability | $9,191 | $72,367 | | Total liabilities | $32,840 | $99,067 | | Total stockholders' equity (deficit) | $101,866 | $(28,973) | Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income Net income for the six months ended June 30, 2025, was $27.2 million, a significant improvement from a prior year loss, driven by a gain from warrant fair value changes | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue from collaborations | $— | $— | $— | $292 | | Revenue from customers | $965 | $1,061 | $1,276 | $1,755 | | Research and development | $13,976 | $21,099 | $28,478 | $37,464 | | General and administrative | $5,556 | $6,376 | $10,608 | $13,043 | | Total operating expenses | $19,532 | $27,475 | $39,086 | $50,507 | | Loss from operations | $(18,567) | $(26,414) | $(37,810) | $(48,460) | | Change in fair value of 2023 common warrants | $1,682 | $30,437 | $63,176 | $16,106 | | Net (Loss) income | $(15,863) | $5,061 | $27,225 | $(29,802) | | Net (loss) income per share, basic | $(1.53) | $0.81 | $2.90 | $(4.77) | Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) Total stockholders' equity increased significantly to $101.866 million by June 30, 2025, driven by a $105.004 million PIPE offering and net income | Metric (in thousands) | Balance as of Dec 31, 2024 | Balance as of June 30, 2025 | | :-------------------- | :------------------------- | :-------------------------- | | Total Stockholders' Equity (Deficit) | $(28,973) | $101,866 | | Issuance of common stock, pre-funded warrants and common warrants in connection with 2025 PIPE offering | - | $105,004 | | Net income (Q1 2025) | - | $43,088 | | Net loss (Q2 2025) | - | $(15,863) | Condensed Consolidated Statements of Cash Flows Net cash provided by financing activities was $101.6 million for the six months ended June 30, 2025, significantly offsetting cash used in operations and investing | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash and cash equivalents used in operating activities | $(36,413) | $(42,239) | | Net cash and cash equivalents used in investing activities | $(83,488) | $(48,649) | | Net cash and cash equivalents provided by financing activities | $101,565 | $262 | | Net decrease in cash, cash equivalents, and restricted cash | $(18,336) | $(90,626) | | Cash, cash equivalents, and restricted cash, end of period | $18,771 | $45,148 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements, covering organization, accounting policies, and various financial components 1. Organization and basis of presentation Aligos Therapeutics is a clinical-stage biotechnology company focused on liver and viral diseases, with sufficient cash to fund operations for at least 12 months - Aligos is a clinical-stage biotechnology company developing novel therapeutics for chronic hepatitis B virus (HBV) infection, metabolic dysfunction associated steatohepatitis (MASH), and coronaviruses[32] - The company has incurred substantial losses and negative cash flows since inception, with an accumulated deficit of $590.8 million as of June 30, 2025[37] - As of June 30, 2025, the company had $122.9 million in cash, cash equivalents, and investments, which is expected to fund operations for at least 12 months[38][39] 2. Summary of significant accounting policies The financial statements adhere to U.S. GAAP for interim reporting, with no material changes to accounting policies from the 2024 Form 10-K - The company's unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and SEC interim reporting requirements[34] - No material changes were made to the company's significant accounting policies from its 2024 Form 10-K[44] - The company has elected the extended transition period for complying with new or revised financial accounting standards as an 'emerging growth company'[45] 3. Balance sheet components Property and equipment, net, and total accrued liabilities decreased from December 31, 2024, to June 30, 2025 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Property and equipment, net | $2,063 | $2,362 | | Accrued R&D expenses | $3,824 | $5,029 | | Accrued compensation | $4,421 | $6,387 | | Total Accrued liabilities | $12,209 | $15,557 | 4. Investments Short-term investments significantly increased to $104.284 million by June 30, 2025, leading to increased interest income | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Short-term investments (Fair Value) | $104,284 | $19,942 | | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Interest income | $400 | $300 | $1,200 | $900 | 5. Fair value measurement The 2023 common warrants liability, a Level 3 financial instrument, significantly decreased to $9.191 million by June 30, 2025 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Available for sale securities (Level 2) | $104,284 | $19,942 | | 2023 common warrants liability (Level 3) | $(9,