SELECTA BIOSCI(SELB) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Unaudited consolidated financial statements detail balance sheets, operations, equity, and cash flows, showing reduced net loss for H1 2025 due to CVR liability changes Consolidated Balance Sheets Consolidated balance sheets as of June 30, 2025, and December 31, 2024, detail assets, liabilities, and stockholders' deficit | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :----------------------------- | | Cash and cash equivalents | $160,324 | $212,610 | | Total assets | $388,893 | $435,023 | | Total liabilities | $391,420 | $441,825 | | Contingent value right liability | $352,100 | $395,500 | | Total stockholders' deficit | $(2,527) | $(6,802) | Consolidated Statements of Operations and Comprehensive Income (Loss) Consolidated statements of operations and comprehensive income (loss) for Q2 and H1 2025 and 2024, detailing revenue, expenses, and net income (loss) Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | Change (in thousands) | Change (%) | | :------------------------------------- | :----- | :----- | :-------------------- | :--------- | | Total revenue | $298 | $33,445 | $(33,147) | (99)% | | Operating (loss) income | $(21,811) | $13,757 | $(35,568) | (259)% | | Change in fair value of CVR liability | $35,300 | $2,500 | $32,800 | 1,312% | | Net income (loss) | $15,886 | $13,836 | $2,050 | 15% | | Basic EPS | $0.51 | $0.58 | $(0.07) | (12)% | | Diluted EPS | $0.50 | $0.54 | $(0.04) | (7)% | Six Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | Change (in thousands) | Change (%) | | :------------------------------------- | :----- | :----- | :-------------------- | :--------- | | Total revenue | $1,398 | $39,285 | $(37,887) | (96)% | | Operating (loss) income | $(43,700) | $409 | $(44,109) | (10,785)% | | Change in fair value of CVR liability | $35,646 | $(36,800) | $72,446 | (197)% | | Net income (loss) | $(1,824) | $(42,988) | $41,164 | (96)% | | Basic EPS | $(0.07) | $(3.88) | $3.81 | (98)% | | Diluted EPS | $(0.07) | $(3.88) | $3.81 | (98)% | Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Deficit Consolidated statements of changes in convertible preferred stock and stockholders' deficit for Q1 and Q2 2025 and 2024, reflecting equity movements and reverse stock split impact - Total stockholders' deficit improved from $(6.8) million at December 31, 2024, to $(2.5) million at June 30, 2025[16][21] - The company effected a 1-for-30 reverse stock split on April 4, 2024, impacting all share and per-share figures presented[21][35] Consolidated Statements of Cash Flows Consolidated statements of cash flows for H1 2025 and 2024, detailing cash movements from operating, investing, and financing activities Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------- | :------- | :------- | | Net cash used in operating activities | $(40,629) | $(30,363) | | Net cash used in investing activities | $(3,670) | $(2,189) | | Net cash (used in) provided by financing activities | $(7,965) | $43,151 | | Net change in cash, cash equivalents, and restricted cash | $(52,220) | $10,608 | - Net cash used in financing activities in 2025 was primarily due to payments of contingent value rights distributions ($7.8 million), a significant shift from proceeds from the 2023 Private Placement in 2024 ($40.0 million)[27][228] Notes to Consolidated Financial Statements Detailed notes to the consolidated financial statements provide additional context and explanations for reported figures and accounting policies 1. Description of the Business This note describes Cartesian Therapeutics, Inc.'s business as a clinical-stage biotechnology company focused on cell therapy for autoimmune diseases - Cartesian Therapeutics, Inc. is a clinical-stage biotechnology company pioneering cell therapy for autoimmune diseases, utilizing proprietary technology for repeated dosing without pre-treatment chemotherapy[30][159] - The company completed a merger on November 13, 2023, and effected a 1-for-30 reverse stock split on April 4, 2024[31][35] - As of June 30, 2025, cash, cash equivalents, and restricted cash totaled $162.1 million, expected to fund operations into mid-2027[43][166][218] 2. Basis of Presentation This note outlines the basis of presentation for the consolidated financial statements, including U.S. GAAP conformity and management's significant estimates - The consolidated financial statements include the Company and its wholly owned subsidiaries, prepared in conformity with U.S. GAAP[40][46] - Management makes significant estimates in areas including fair value of intangible assets, CVRs, deferred income taxes, revenue recognition, accrued R&D expenses, stock-based compensation, and warrant liabilities[47] - The Company operates and manages its business as a single operating segment[48] 3. Summary of Significant Accounting Policies This note summarizes the company's significant accounting policies and discusses the evaluation of new accounting pronouncements - There have been no material changes to the Company's significant accounting policies during the six months ended June 30, 2025[49] - The Company is evaluating the impact of ASU 2023-09 (Income Taxes) effective December 31, 2025, and ASU 2024-03 (Expense Disaggregation Disclosures) effective December 31, 2027[50][51] 4. Goodwill and Intangible Assets This note details the company's goodwill and indefinite-lived intangible assets, including in-process research and development assets - The Merger resulted in goodwill of approximately $48.2 million, with no changes to its carrying value during the six months ended June 30, 2025