Part I - Financial Information Item 1. Financial Statements (Unaudited) The unaudited statements show decreased assets, an increased net loss to $41.6 million, and a growing accumulated deficit for the first half of 2025 Condensed Balance Sheets Total assets decreased to $169.4 million as of June 30, 2025, driven by a reduction in cash and investments, while the accumulated deficit grew to $288.2 million Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,468 | $40,235 | | Short-term investments | $113,897 | $145,193 | | Total current assets | $149,066 | $188,631 | | Total assets | $169,391 | $209,581 | | Total current liabilities | $10,768 | $12,253 | | Total liabilities | $20,350 | $22,940 | | Accumulated deficit | ($288,249) | ($246,684) | | Total stockholders' equity | $149,041 | $186,641 | Condensed Statements of Operations and Comprehensive Loss The net loss for the first six months of 2025 increased to $41.6 million from $31.8 million year-over-year, primarily due to higher R&D expenses Statement of Operations Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | License and development support revenue | $0 | $251 | | Research and development expenses | $34,914 | $23,488 | | General and administrative expenses | $10,068 | $7,444 | | Loss from operations | ($44,982) | ($30,681) | | Net loss | ($41,565) | ($31,806) | | Net loss per share, basic and diluted | ($1.71) | ($39.24) | Condensed Statements of Cash Flows Net cash used in operations increased to $42.8 million for the first half of 2025, while cash, cash equivalents, and restricted cash decreased by $11.6 million Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($42,824) | ($28,771) | | Net cash provided by investing activities | $31,093 | $11,131 | | Net cash provided by (used in) financing activities | $167 | ($1,616) | | Net decrease in cash, cash equivalents and restricted cash | ($11,564) | ($19,256) | | Cash, cash equivalents and restricted cash at end of period | $28,929 | $34,506 | Notes to Condensed Financial Statements The notes detail the company's liquidity, accounting policies, recent IPO, and collaboration agreements, confirming sufficient cash for at least one year of operations - The company completed its IPO on July 22, 2024, raising aggregate net proceeds of $162.3 million29 - As of June 30, 2025, the company had $142.4 million in cash, cash equivalents, and investments and believes this is sufficient to fund planned operations for at least one year30 - Immediately upon completion of the IPO, all 6,160,385 outstanding shares of convertible preferred stock converted into common stock84 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the focus on allogeneic NK cell therapies, the increased net loss driven by R&D expenses, and the sufficiency of cash to fund operations into Q2 2027 - The company is a clinical-stage biotech focused on allogeneic NK cell therapies, with its lead candidate, AlloNK, being evaluated in trials for autoimmune diseases120121 - The increase in R&D expenses for the six months ended June 30, 2025, was primarily due to an $8.4 million increase in external costs related to AlloNK product development and clinical trials151 - Based on current operating plans, the company expects its existing cash, cash equivalents, and investments of $142.4 million to be sufficient to fund operations into the second quarter of 2027155 Comparison of Results of Operations (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Research and development | $34,914 | $23,488 | | General and administrative | $10,068 | $7,444 | | Loss from operations | ($44,982) | ($30,681) | | Net loss | ($41,565) | ($31,806) | Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, this section is not required and has been omitted - As a smaller reporting company, Artiva Biotherapeutics is not required to provide quantitative and qualitative disclosures about market risk182 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025183 - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls184 Part II - Other Information Item 1. Legal Proceedings The company is not currently a party to any material legal proceedings - The company reports that it is not currently involved in any litigation or legal proceedings that management believes are likely to have a material adverse effect on the business186 Item 1A. Risk Factors The company faces significant risks related to its limited operating history, unproven therapies, reliance on third parties, and intense competition - The company has a limited operating history, no approved products, and a history of significant net losses, making it difficult to evaluate its future success189 - The development of NK cell-based product candidates is an unproven approach, and the company may not be able to develop any products of commercial value199 - The manufacture of cell therapy products is novel and complex; the company relies on GC Cell for manufacturing certain candidates and faces risks of delays or quality issues279283 - The company faces significant competition from other biotechnology and pharmaceutical companies, many of which have greater financial and technical resources294 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company details the use of its $162.3 million in net IPO proceeds and reports no unregistered sales of equity securities - The company completed its IPO on July 22, 2024, and received net proceeds of approximately $162.3 million490491 - There has been no material change in the planned use of proceeds from the IPO as described in the final prospectus492 Item 3. Defaults Upon Senior Securities This item is not applicable to the company - The company reports no defaults upon senior securities494 Item 4. Mine Safety Disclosures This item is not applicable to the company - The company reports that mine safety disclosures are not applicable495 Item 5. Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter496 Item 6. Exhibits This section lists the exhibits filed with the report, including required officer certifications - The report includes certifications from the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906498
Artiva Biotherapeutics, Inc.(ARTV) - 2025 Q2 - Quarterly Report