Quince Therapeutics(QNCX) - 2025 Q2 - Quarterly Report

Front Matter This section contains preliminary information about the Form 10-Q filing, forward-looking statements, and defined terms Form 10-Q Filing Information This Form 10-Q for Quince Therapeutics, Inc. covers Q2 2025, reporting 53.7 million shares outstanding - Quince Therapeutics, Inc. filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025[2] | Indicator | Value | | :--- | :--- | | Filer Status | Non-accelerated filer, Smaller reporting company | | Common Stock Outstanding (as of Aug 5, 2025) | 53,713,798 shares | | Trading Symbol | QNCX | | Exchange | The Nasdaq Stock Market LLC | Special Note Regarding Forward-Looking Statements This report contains forward-looking statements subject to known and unknown risks and uncertainties detailed in 'Risk Factors' - The report contains forward-looking statements regarding future results, business strategy, drug candidates, clinical trials, regulatory approvals, and financial performance[9][10] - These statements are subject to known and unknown risks, uncertainties, and assumptions, including those described in the 'Risk Factors' section[10] - Readers are cautioned not to rely on forward-looking statements as predictions of future events, and the company does not intend to update them unless legally required[12] Defined Terms This section defines key abbreviated and specific terms used in the Quarterly Report on Form 10-Q - The section defines key terms such as AIDE (Autologous Intracellular Drug Encapsulation), eDSP (Encapsulated dexamethasone sodium phosphate), A-T (Ataxia-Telangiectasia), and various financial and regulatory acronyms[18][19][20] PART I. FINANCIAL INFORMATION This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements (Unaudited) This section presents Quince Therapeutics' unaudited condensed consolidated financial statements and explanatory notes Condensed Consolidated Balance Sheets Total assets slightly increased to $117.21 million, while liabilities grew significantly due to warrants and long-term debt | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :---------------- | :--------- | :--------- | | Cash and cash equivalents | $16,826 | $6,212 | $10,614 | 170.86% | | Short-term investments | $17,882 | $34,572 | $(16,690) | (48.28)% | | Total current assets | $37,345 | $44,036 | $(6,691) | (15.19)% | | Intangible assets | $67,566 | $60,045 | $7,521 | 12.53% | | Total assets | $117,210 | $114,478 | $2,732 | 2.39% | | Total current liabilities | $7,467 | $7,278 | $189 | 2.60% | | Long-term debt | $16,989 | $14,321 | $2,668 | 18.63% | | Warrant liabilities | $15,144 | $0 | $15,144 | N/A | | Total liabilities | $105,474 | $84,332 | $21,142 | 25.07% | | Total stockholders' equity | $11,736 | $30,146 | $(18,410) | (61.07)% | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss improved to $16.05 million (3 months) and $31.08 million (6 months), mainly due to no goodwill impairment | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Research and development | $6,553 | $4,147 | $2,406 | 58.02% | | General and administrative | $3,342 | $4,695 | $(1,353) | (28.82)% | | Goodwill impairment charge | $0 | $17,130 | $(17,130) | (100.00)% | | Fair value adjustment for contingent consideration | $532 | $2,220 | $(1,688) | (76.04)% | | Total operating expenses | $10,427 | $28,192 | $(17,765) | (62.99)% | | Net loss | $(16,049) | $(27,729) | $11,680 | (42.12)% | | Net loss per share (basic and diluted) | $(0.34) | $(0.64) | $0.30 | (46.88)% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Research and development | $14,698 | $7,849 | $6,849 | 87.26% | | General and administrative | $8,131 | $9,666 | $(1,535) | (15.88)% | | Goodwill impairment charge | $0 | $17,130 | $(17,130) | (100.00)% | | Fair value adjustment for contingent consideration | $2,456 | $4,765 | $(2,309) | (48.46)% | | Total operating expenses | $25,285 | $39,410 | $(14,125) | (35.84)% | | Net loss | $(31,079) | $(38,878) | $7,799 | (20.06)% | | Net loss per share (basic and diluted) | $(0.69) | $(0.90) | $0.21 | (23.33)% | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased to $11.74 million, driven by net loss, partially offset by equity and warrant issuances | Metric (in thousands) | December 31, 2024 | June 30, 2025 | Change ($) | Change (%) | | :-------------------- | :---------------- | :------------ | :--------- | :--------- | | Common Stock (shares) | 44,001,643 | 53,624,180 | 9,622,537 | 21.87% | | Common Stock (value) | $44 | $53 | $9 | 20.45% | | Additional paid in capital | $406,609 | $413,078 | $6,469 | 1.59% | | Accumulated other comprehensive income (loss) | $(35) | $6,156 | $6,191 | N/A | | Accumulated deficit | $(376,472) | $(407,551) | $(31,079) | 8.26% | | Total stockholders' equity | $30,146 | $11,736 | $(18,410) | (61.07)% | - Issuance of common stock and warrants in private placement generated $746 thousand in additional paid-in capital[32] - Issuance of common stock in ATM offerings generated $2.89 million in additional paid-in capital[32] Condensed Consolidated Statements of Cash Flows Net cash increased by $10.61 million, driven by financing and investing activities, offsetting operating cash outflows | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Net cash used in operating activities | $(21,016) | $(17,092) | $(3,924) | 22.96% | | Net cash provided by investing activities | $16,937 | $3,936 | $13,001 | 330.33% | | Net cash provided by financing activities | $14,499 | $225 | $14,274 | 6344.00% | | Net increase (decrease) in cash and cash equivalents | $10,