Financial Performance - The company reported net losses of $49.9 million for the three months ended June 30, 2025, compared to $44.3 million for the same period in 2024, reflecting a decrease of $5.6 million [161]. - Net loss for the six months ended June 30, 2025, was $134.4 million, an increase of $54.3 million from a net loss of $80.2 million in 2024 [167]. - Cash used in operating activities was $115.1 million for the six months ended June 30, 2025, compared to $65.2 million in 2024 [183]. - The company has an accumulated deficit of $447.1 million as of June 30, 2025, with cash and cash equivalents totaling $252.6 million [148]. Expenses - Research and development expenses decreased by $29.9 million to $7.5 million for the three months ended June 30, 2025, primarily due to a $16.8 million reduction in manufacturing and technical operations costs [162]. - General and administrative expenses were $8.3 million for the three months ended June 30, 2025, down from $11.9 million in 2024, a decrease of $3.6 million [163]. - Research and development expenses decreased by $29.8 million to $38.1 million for the six months ended June 30, 2025, compared to $67.9 million in 2024 [168]. - Total operating expenses increased by $51.2 million to $141.3 million for the six months ended June 30, 2025, compared to $90.1 million in 2024 [167]. - The company incurred $37.1 million in restructuring, impairment, and costs of suspended programs during the three months ended June 30, 2025 [164]. - The company incurred $83.4 million in restructuring, impairment, and costs of suspended programs during the six months ended June 30, 2025 [171]. Income and Cash Flow - Interest income decreased to $3.3 million for the three months ended June 30, 2025, down from $5.0 million in 2024, a decrease of $1.7 million [164]. - Interest income decreased by $2.8 million to $7.2 million for the six months ended June 30, 2025, compared to $10.0 million in 2024 [172]. - Cash provided by investing activities was $158.4 million for the six months ended June 30, 2025, primarily from sales and maturities of marketable securities [185]. Restructuring and Workforce Changes - The company announced a reduction in force of approximately 50% in January 2025 and an additional 90% in March 2025 as part of its restructuring efforts [142][143]. - The company recorded an impairment charge of $2.2 million and $10.2 million for the three and six months ended June 30, 2025, respectively, related to property and equipment due to the 2025 Restructuring [195]. - Manufacturing slot cancellation fees were recorded within restructuring, impairment, and costs of suspended programs during the reporting period [192]. Strategic Transactions - A merger agreement was entered into with Concentra Biosciences, LLC, involving a cash tender offer of $4.379 per share [145]. - If the merger is not completed, the company may pursue alternative strategic transactions or consider dissolution and liquidation [148]. - The company entered into a Merger Agreement with Concentra on July 7, 2025, which includes various operational covenants until the merger closes [178]. Liquidity and Financial Position - As of June 30, 2025, the company had available cash and cash equivalents and marketable securities of $252.6 million [175]. - The company has $200.0 million of capacity available under its "at-the-market" equity offering program as of June 30, 2025 [177]. - Total fixed lease payment obligations outstanding as of June 30, 2025, amount to $0.6 million, payable by September 1, 2025 [190]. Accounting and Reporting - There have been no material changes to critical accounting estimates from those described in the previous Annual Report [194]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards [197]. - The company is also a "smaller reporting company," which allows it to take advantage of scaled disclosures as long as certain market value and revenue thresholds are met [198]. - The company has no off-balance sheet arrangements as defined by SEC rules during the periods presented [189]. - Under license agreements, the company is required to make payments upon successful completion of certain milestones and royalty payments upon sales of products, impacting future liquidity and cash flows [191].
Cargo Therapeutics(CRGX) - 2025 Q2 - Quarterly Report