SEELAS Life Sciences (SLS) - 2025 Q2 - Quarterly Report

Financial Performance - Net loss for the three months ended June 30, 2025, was $6,601,000, compared to a net loss of $7,470,000 for the same period in 2024, reflecting a decrease of 11.6%[17] - Net loss per common share for the three months ended June 30, 2025, was $0.07, compared to $0.13 for the same period in 2024[17] - The net loss for the three months ended June 30, 2025, was $6.6 million, compared to a net loss of $7.5 million for the same period in 2024, an improvement of $869,000[123] - The company anticipates incurring additional losses until it can generate significant sales from current or future product candidates[139] Assets and Liabilities - Total current assets increased to $29,447,000 as of June 30, 2025, compared to $16,327,000 at December 31, 2024, representing an increase of 80.4%[15] - Total liabilities decreased to $6,156,000 as of June 30, 2025, down from $9,967,000 at December 31, 2024, a reduction of 38.5%[15] - Total stockholders' equity increased to $26,149,000 as of June 30, 2025, from $9,465,000 at December 31, 2024, an increase of 176.5%[15] - As of June 30, 2025, the company had an accumulated deficit of $260.5 million and cash and cash equivalents of $25.3 million, raising substantial doubt about its ability to continue as a going concern[138] Cash Flow - Cash and cash equivalents at the end of the period were $25,397,000, compared to $9,247,000 at the end of June 30, 2024, an increase of 174.5%[25] - Net cash used in operating activities for the six months ended June 30, 2025, was $16,400,000, compared to $20,443,000 in 2024, a decrease of 19.9%[25] - Net cash provided by financing activities was $27.8 million for the six months ended June 30, 2025, primarily from a Registered Direct Offering, compared to $27.1 million in the same period of 2024[146][147] Research and Development - Research and development expenses for the six months ended June 30, 2025, were $7,076,000, down from $10,297,000 in 2024, a decrease of 31.5%[17] - The company anticipates an increase in research and development expenses as it prepares for a potential BLA filing for GPS and trials for newly diagnosed AML patients[128] - Research and development expenses decreased to $3.9 million for the three months ended June 30, 2025, down from $5.2 million in the same period of 2024, a reduction of approximately $1.3 million[124] Financing Activities - Proceeds from the issuance of common stock, common stock warrants, and pre-funded warrants amounted to $23,051,000 for the six months ended June 30, 2025[25] - In January 2025, the company completed a registered direct offering, raising approximately $23.1 million from the sale of 8,200,000 shares of common stock and 11,485,040 pre-funded warrants[30] - The net proceeds from the January 2025 Registered Direct Offering were approximately $23.1 million after deducting fees and expenses, involving the issuance of 8.2 million shares of common stock[135] Agreements and Commitments - The company has received $10.5 million in upfront payments under the Exclusive License Agreement with 3D Medicines, with a total of $191.5 million in potential future milestones remaining[32] - The Company entered into an exclusive license agreement with GenFleet Therapeutics, agreeing to pay an upfront fee of $10 million and potential milestone payments totaling up to $140 million[64] - A binding arbitration proceeding against 3D Medicines was commenced in December 2023 regarding milestone payments and development efforts in the 3DMed Territory[156] Stock and Compensation - Total stock-based compensation for the three months ended June 30, 2025 was $501,000, compared to $334,000 for the same period in 2024[85] - The Company has 75,538,000 shares of common stock reserved for future issuance as of June 30, 2025[69] - The company has $1.5 million of unrecognized compensation cost related to outstanding stock options, expected to be recognized over a weighted-average period of 2.3 years[89] Operational Insights - The company views its operations as a single reportable segment focused on developing novel therapeutics for cancer indications[43] - The company is highly dependent on successful completion of additional financings and revenue-generating partnerships for its future operations[142] - The company currently does not have any commitments to obtain additional funding and is exploring various strategies for future financing[140][141]