CytomX(US:CTMX)2025-08-07 20:06PART I – FINANCIAL INFORMATION Condensed Financial Statements (Unaudited) This section provides unaudited condensed financial statements, highlighting significant improvements in financial position, a shift to net income, and changes in cash flows driven by a public offering and restructuring Condensed Balance Sheets This section presents the company's financial position, showing significant asset growth and a positive shift in stockholders' equity Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash, cash equivalents and short-term investments | $158,087 | $100,623 | | Total current assets | $164,621 | $107,305 | | Total assets | $175,057 | $120,533 | | Liabilities & Equity | | | | Deferred revenue (current & long-term) | $32,291 | $94,063 | | Total liabilities | $55,147 | $120,989 | | Total stockholders' equity (deficit) | $119,910 | $(456) | - The company's financial position strengthened significantly, with total assets increasing to $175,057 thousand and stockholders' equity becoming positive at $119,910 thousand, up from a deficit of $456 thousand This was primarily driven by proceeds from a recent stock offering and a substantial reduction in deferred revenue liabilities16 Condensed Statements of Operations and Comprehensive Income This section details the company's revenues, expenses, and net income, highlighting a significant improvement in profitability Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $18,658 | $25,115 | $69,575 | $66,578 | | Research and development | $13,322 | $25,172 | $32,189 | $47,224 | | General and administrative | $6,622 | $8,395 | $16,050 | $16,149 | | Income (loss) from operations | $(1,286) | $(8,452) | $21,336 | $3,205 | | Net Income (Loss) | $(154) | $(6,534) | $23,371 | $7,257 | | Diluted Net Income (Loss) per Share | $(0.00) | $(0.08) | $0.21 | $0.09 | - For the six months ended June 30, 2025, the company reported a net income of $23,371 thousand, a significant improvement from the $7,257 thousand net income in the prior-year period This was primarily due to a $15,035 thousand decrease in R&D expenses and a $2,997 thousand increase in revenue19 Condensed Statements of Stockholders' Equity (Deficit) This section outlines changes in stockholders' equity, primarily driven by a significant stock offering and net income - Total stockholders' equity increased from a deficit of $456 thousand at the end of 2024 to a positive $119,910 thousand at June 30, 2025 This change was primarily driven by the issuance of common stock in a follow-on offering, which raised net proceeds of $93,400 thousand, and the net income of $23,371 thousand for the period21 Condensed Statements of Cash Flows This section presents the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(36,796) | $(45,594) | | Net cash provided by (used in) investing activities | $(45,764) | $66,397 | | Net cash provided by financing activities | $93,550 | $5,273 | | Net increase in cash, cash equivalents and restricted cash | $10,990 | $26,076 | - Net cash used in operating activities decreased to $36,796 thousand in the first half of 2025 from $45,594 thousand in the prior-year period, mainly due to lower operating expenses Financing activities provided $93,550 thousand, primarily from a common stock offering, a significant increase from $5,273 thousand in the same period of 202424 Notes to Condensed Financial Statements This section provides detailed explanations of significant events, collaboration updates, financing activities, and corporate restructuring - Collaboration Updates: Amgen and CytomX jointly decided to discontinue CX-904 development in March 2025, and Amgen terminated its license The company's research obligations under the BMS agreement were completed in April 2025 Astellas triggered a $5,000 thousand milestone payment in Q1 2025 for initiating GLP toxicology studies for a second collaboration target515769 - Financing: In May 2025, the company completed an underwritten public offering of 76.9 million shares at $1.30 per share, raising approximately $93,400 thousand in net proceeds86 - Restructuring: A restructuring plan announced in January 2025 resulted in a 40% workforce reduction and was substantially completed in Q1 2025 The company recorded total restructuring charges of approximately $2,900 thousand for the six months ended June 30, 2025107108 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's clinical-stage oncology focus, pipeline updates, financial performance, and confirms sufficient capital resources to fund operations into Q2 2027 Overview and Pipeline Update This section provides an overview of the company's strategic focus and updates on its key clinical development programs - CX-2051 (EpCAM ADC): Positive interim Phase 1 data in advanced metastatic colorectal cancer was announced in May 2025, showing a 28% confirmed partial response rate in efficacy-evaluable patients at higher doses A Phase 2 study is planned for the first half of 2026116118120 - CX-801 (IFNα2b): Phase 1 dose escalation in combination with KEYTRUDA® was initiated in May 2025 for advanced melanoma Initial monotherapy biomarker data is expected in Q4 2025, with combination data expected in 2026121 - CX-904 (EGFRxCD3 TCE): In March 2025, CytomX and partner Amgen jointly decided to discontinue the development of the CX-904 program based on clinical observations and pipeline priorities122 Results of Operations This section analyzes the company's revenue and expense trends, highlighting changes in collaboration revenue and R&D costs Revenue by Collaboration Partner (in thousands) | Partner | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Amgen | $332 | $994 | $(662) | | Astellas | $4,646 | $5,492 | $(846) | | Bristol Myers Squibb | $11,566 | $13,433 | $(1,867) | | Regeneron | $2,092 | $2,636 | $(544) | | Moderna | $22 | $2,560 | $(2,538) | | Total revenue | $18,658 | $25,115 | $(6,457) | - Revenue decreased by $6,457 thousand in Q2 2025 compared to Q2 2024, primarily due to the completion of performance obligations under the BMS and Amgen agreements, and reduced activity under the Moderna agreement due to budget considerations142143 Research and Development Expenses (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | External costs | $5,599 | $16,226 | $(10,627) | | Internal costs | $7,723 | $8,946 | $(1,223) | | Total R&D expenses | $13,322 | $25,172 | $(11,850) | - R&D expenses decreased by $11,850 thousand in Q2 2025 compared to Q2 2024 This was primarily due to a one-time $5,000 thousand royalty payment to ImmunoGen in Q2 2024, the termination of the CX-904 program in 2025, and reduced research expenses following the corporate restructuring144 Liquidity and Capital Resources This section assesses the company's cash position and its ability to fund future operations, including recent financing activities - As of June 30, 2025, the company had $158,087 thousand in cash, cash equivalents, and short-term investments152 - In May 2025, the company raised net proceeds of approximately $93,400 thousand from an underwritten public offering156 - Management expects that existing capital resources will be sufficient to fund operations into the second quarter of 2027157 Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, CytomX Therapeutics is not required to provide the information for this item - The company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information under this item168 Controls and Procedures Management, including the Principal Executive and Principal Financial Officers, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2025 There were no material changes to internal controls over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025170 - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting171 PART II – OTHER INFORMATION Legal Proceedings The company reports that it is not aware of any legal proceedings, individually or in the aggregate, that would have a material adverse effect on its financial position, results of operations, or cash flows - The company is not aware of any legal matters that will have a material adverse effect on its financial position, results of operations or cash flows173 Risk Factors This section outlines significant business, financial, clinical, operational, and collaboration risks, including the need for capital, development uncertainties, and reliance on third parties - Business & Financial Risks: The company is a clinical-stage entity with a history of losses and expects to need substantial additional funding to advance its product candidates Failure to obtain capital may force delays or termination of development programs176180 - Clinical & Development Risks: Clinical development is lengthy, expensive, and uncertain Early trial results (e.g., for CX-2051 and CX-801) may not predict future success, and product candidates may cause undesirable side effects that could delay or prevent regulatory approval185193196 - Operational Risks: The company relies on third-party manufacturers, most of which are sole-source suppliers, creating risks of supply interruption It also relies on third parties (CROs) to conduct all clinical trials212241 - Collaboration Risks: The company's success is partly dependent on collaborations with third parties (e.g., Astellas, Regeneron) These collaborators have significant discretion over development, and termination of these agreements could materially harm the business226231 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities, no use of proceeds from such sales, and no repurchases of its equity securities during the period - There were no unregistered sales of equity securities or repurchases of company equity securities during the period389 Defaults Upon Senior Securities The company reported no defaults upon senior securities - None reported389 Mine Safety Disclosures This item is not applicable to the company - Not applicable389 Other Information The company reported no other information for the period - None reported390 Exhibits This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Employee Stock Purchase Plan and certifications by the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act - The report includes certifications from the CEO and CFO as required by Rule 13a-14(a) and Section 1350 of the U.S Code391