Turnstone Biologics (US:TSBX)2025-08-08 20:44Financial Performance - Total current assets decreased from $34,220,000 in 2024 to $21,109,000 in 2025, a decline of approximately 38.3%[13] - Net loss for the six months ended June 30, 2025, was $17,296,000, compared to a net loss of $40,933,000 for the same period in 2024, indicating an improvement of approximately 57.8%[19] - The Company had a net loss of $17.3 million for the six months ended June 30, 2025, compared to a net loss of $40.9 million for the same period in 2024[34] - The Company recorded a consolidated net loss of $5.49 million for the three months ended June 30, 2025, compared to a net loss of $21.30 million for the same period in 2024, representing a 74.3% improvement[117] - The net loss for the three months ended June 30, 2025, was $5.5 million, a reduction of $15.8 million from the net loss of $21.3 million in the same period of 2024[156] Expenses - Research and development expenses for Q2 2025 were $171,000, significantly down from $17,730,000 in Q2 2024, representing a decrease of about 99.0%[15] - Total operating expenses for the six months ended June 30, 2025, were $14,723,000, down from $42,748,000 in 2024, a decrease of approximately 65.5%[15] - General and administrative expenses increased by $1.1 million, or 25.6%, to $5.4 million for the three months ended June 30, 2025, attributed to costs related to the Merger Agreement and employee restructuring[158] - Total lease costs for the six months ended June 30, 2025, were $463,000, down from $796,000 in the same period of 2024, indicating a 41.8% decrease[113] - The Company incurred $2.1 million in restructuring expenses related to workforce reductions and strategic changes during the six months ended June 30, 2025[120] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $16,688,000, down from $28,926,000 in 2024, a decrease of approximately 42.4%[13] - The company experienced a net cash flow used in operating activities of $11,395,000 for the six months ended June 30, 2025, compared to $33,385,000 in 2024, reflecting a reduction of about 65.9%[19] - As of June 30, 2025, the Company had $16.7 million in cash and cash equivalents, which is expected to be sufficient to fund planned expenditures for the next twelve months[33] - Cash used in operating activities for the six months ended June 30, 2025 was $11.4 million, primarily due to a net loss of $17.3 million[170] - Cash provided by investing activities for the six months ended June 30, 2025 was $1.0 million, resulting from the sale of property and equipment[172] Liabilities and Deficits - The company reported total liabilities of $6,345,000 as of June 30, 2025, down from $8,672,000 in 2024, a reduction of about 26.5%[13] - The accumulated deficit increased from $247,595,000 in 2024 to $264,891,000 in 2025, an increase of approximately 7.0%[13] - The Company has an accumulated deficit of $264.9 million as of June 30, 2025[35] Mergers and Agreements - The merger agreement with XOMA Royalty Corporation includes a cash tender offer of $0.34 per share and a contingent value right (CVR) for potential future payments[22] - The Company entered into a Loan and Security Agreement for a revolving credit facility of up to $20 million, which included a covenant to receive at least $40 million in new funding by March 31, 2025, which was not achieved[36] - The Company entered into an Alliance Agreement with Moffitt in June 2022, committing to pay at least $17.5 million over five years for research and development services related to TIL Products[73][75]. - The Company completed a merger with Myst on December 14, 2020, resulting in a one-time cash payment of $9 million and additional milestone payments based on specific achievements[85][87]. - The Company expects the Merger to close in the third quarter of 2025, but there are no assurances that it will lead to increased stockholder value[32] Stock and Compliance - The Company received a deficiency notice from Nasdaq on September 27, 2024, due to the bid price of its common stock closing below $1.00 per share for 30 consecutive business days[29] - The Company has been granted an additional 180-day grace period until September 22, 2025, to regain compliance with the Minimum Bid Price Requirement[31] - The Company plans to implement a reverse stock split to regain compliance with Nasdaq listing requirements[31] - The Company’s common stock was transferred to the Nasdaq Capital Market on March 31, 2025, due to non-compliance with the minimum bid price requirement[133] Risks and Future Outlook - The company is subject to significant risks related to the Merger, including the potential failure to complete the transaction, which could adversely affect its business and financial condition[188] - If the Offer and the Merger are not consummated, the common stock price may decline significantly from the current market price, reflecting market assumptions[192] - The company is facing potential fluctuations in share price due to market perceptions regarding the completion of the Offer and the Merger[190] - If the Merger is not completed, the Board intends to pursue dissolution and liquidation, affecting the cash available for distribution to stockholders[195]