Immatics N.V.(IMTX) - 2025 Q1 - Quarterly Report

Preliminary Note This section outlines the basis of preparation for the unaudited interim condensed consolidated financial statements, including adherence to IAS 34 and presentation in euros General Information This section outlines the basis of preparation for the unaudited interim condensed consolidated financial statements, including adherence to IAS 34 and presentation in euros - Financial statements prepared in accordance with International Accounting Standard 34 (Interim Financial Reporting) and presented in euros[2] - Report contains forward-looking statements subject to risks and uncertainties, identified by words such as 'anticipate', 'believe', 'expect', 'will'[3] - Company owns various trademarks including Immatics®, XPRESIDENT®, ACTengine®, ACTallo®, ACTolog®, XCEPTOR®, TCER®, AbsQuant®, IMADetect®[4] Unaudited Interim Condensed Consolidated Statement of Loss This statement presents the Group's financial performance, detailing revenue, expenses, and net loss for the three months ended March 31 Consolidated Statement of Loss (Three months ended March 31) | Metric | 2025 (Euros in thousands) | 2024 (as restated) (Euros in thousands) | | :--- | :--- | :--- | | Revenue from collaboration agreements | 18,582 | 30,269 | | Research and development expenses | (41,908) | (32,108) | | General and administrative expenses | (12,067) | (11,642) | | Operating result | (35,374) | (13,469) | | Financial result | (5,475) | 11,747 | | Loss before taxes | (40,849) | (1,722) | | Net loss | (39,855) | (2,240) | | Net loss per share (Basic) | (0.33) | (0.02) | | Net loss per share (Diluted) | (0.33) | (0.03) | Unaudited Interim Condensed Consolidated Statement of Comprehensive Loss This statement details the Group's net loss and other comprehensive income/loss components, including currency translation differences, for the three months ended March 31 Consolidated Statement of Comprehensive Loss (Three months ended March 31) | Metric | 2025 (Euros in thousands) | 2024 (as restated) (Euros in thousands) | | :--- | :--- | :--- | | Net loss | (39,855) | (2,240) | | Currency translation differences from foreign operations | (2,711) | 336 | | Total comprehensive loss for the period | (42,566) | (1,904) | Unaudited Interim Condensed Consolidated Statement of Financial Position This statement provides a snapshot of the Group's assets, liabilities, and shareholders' equity as of March 31, 2025, and December 31, 2024 Consolidated Statement of Financial Position (As of March 31, 2025 and December 31, 2024) | Metric | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 242,844 | 236,748 | | Other financial assets | 300,914 | 367,704 | | Total current assets | 573,563 | 629,555 | | Total non-current assets | 68,129 | 66,591 | | Total assets | 641,692 | 696,146 | | Liabilities and Shareholders' Equity | | | | Total current liabilities | 55,770 | 67,987 | | Total non-current liabilities | 49,316 | 53,317 | | Total shareholders' equity | 536,606 | 574,842 | | Total liabilities and shareholders' equity | 641,692 | 696,146 | Unaudited Interim Condensed Consolidated Statement of Cash Flows This statement summarizes the Group's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31 Consolidated Statement of Cash Flows (Three months ended March 31) | Cash Flow Activity | 2025 (Euros in thousands) | 2024 (as restated) (Euros in thousands) | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | (34,206) | (32,605) | | Net cash provided by/(used in) investing activities | 46,808 | (241,818) | | Net cash provided by/(used in) financing activities | (737) | 174,645 | | Net increase/(decrease) in cash and cash equivalents | 11,865 | (99,778) | | Cash and cash equivalents at the end of the period | 242,844 | 122,093 | Unaudited Interim Condensed Consolidated Statement of Changes in Shareholders' Equity This statement outlines the changes in the Group's share capital, share premium, accumulated deficit, and other reserves for the three months ended March 31 Consolidated Statement of Changes in Shareholders' Equity (Three months ended March 31) | Metric | Balance as of Jan 1, 2025 (Euros in thousands) | Balance as of Mar 31, 2025 (Euros in thousands) | Balance as of Jan 1, 2024 (as restated) (Euros in thousands) | Balance as of Mar 31, 2024 (as restated) (Euros in thousands) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 1,216 | 1,216 | 847 | 1,031 | | Share premium | 1,162,136 | 1,166,466 | 823,166 | 1,001,402 | | Accumulated deficit | (589,541) | (629,396) | (604,759) | (607,000) | | Other reserves | 1,031 | (1,680) | (1,636) | (1,300) | | Total shareholders' equity | 574,842 | 536,606 | 217,618 | 394,133 | Notes to the Unaudited Interim Condensed Consolidated Financial Statements 1. Group Information Immatics N.V. is a biotechnology group focused on T cell redirecting immunotherapies for cancer, comprising its Dutch parent, German subsidiary (Immatics Biotechnologies GmbH), and U.S. subsidiary (Immatics US Inc.) - Immatics N.V. and its subsidiaries (Immatics GmbH, Immatics US Inc.) operate as a biotechnology group focused on T cell redirecting immunotherapies for cancer[15] - Interim condensed consolidated financial statements for Q1 2025 were authorized for issue by the Audit Committee on May 13, 2025[16] 2. Material Accounting Policies This section details the basis of presentation for the interim financial statements, prepared in accordance with IAS 34, and highlights the restatement of previously issued interim financial statements due to a correction in deferred tax liabilities and income tax paid 2.1 Basis of Presentation - Interim financial statements prepared on a going concern basis in accordance with IAS 34 and should be read in conjunction with the annual financial statements for December 31, 2024[17][18] - Presented in Euros, the functional and reporting currency of Immatics N.V., with foreign operations translated at prevailing exchange rates for assets/liabilities and average rates for the statement of loss[19] - New and amended standards applicable from January 1, 2025, had no impact on the Q1 2025 interim financial statements, but the company is assessing the impact of IFRS 18 (effective Jan 1, 2027) and other amendments effective Jan 1, 2026[20][22][23] 2.2 Restatement of Previously Issued Interim Financial Statements - Restatement corrected an understatement of deferred tax liabilities and an overstatement of income tax expenses for Q1 2024 due to limitations of German tax law on recovering tax losses carried forward[28] - Adjusted presentation of 'Income tax paid' in the cash flow statement, with no impact on 'Net cash provided by/(used in) operating activities'[29] Impact of Restatement on Consolidated Statement of Profit and Loss (Three months ended March 31, 2024) | Metric | As previously reported (Euros in thousands) | Adjustment (Euros in thousands) | As restated (Euros in thousands) | | :--- | :--- | :--- | :--- | | Net loss | (3,054) | 814 | (2,240) | | Taxes on income | (1,332) | 814 | (518) | | Net loss per share (Basic) | (0.03) | 0.01 | (0.02) | | Net loss per share (Diluted) | (0.04) | 0.01 | (0.03) | 3. Segment Information The Group operates as a single segment, focusing on the research and development of T cell redirecting immunotherapies for cancer, with the CEO serving as the chief operating decision maker - The Group manages its operations as a single segment, focused on R&D of T cell immunotherapies for cancer[31] 4. Revenue from Collaboration Agreements Revenue is generated from strategic collaboration agreements, primarily with Moderna and BMS. Total revenue decreased significantly due to the termination of the Genmab collaboration in March 2024, despite increased activities with Moderna - Revenue is derived from strategic collaboration agreements with Bristol-Myers-Squibb (BMS) and ModernaTX, Inc., both in pre-clinical stage[32] Revenue from Collaboration Agreements (Three months ended March 31) | Partner | 2025 (Euros in thousands) | 2024 (Euros in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Moderna, United States | 14,403 | 9,583 | +4,820 | | BMS, United States | 4,179 | 5,735 | -1,556 | | Genmab, Denmark | — | 14,951 | -14,951 | | Total | 18,582 | 30,269 | -11,687 | - The collaboration with Genmab was terminated in March 2024, leading to no revenue recognized from Genmab in Q1 2025, contributing significantly to the overall revenue decrease[35] Deferred Revenue Related to Collaboration Agreements | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Current | 25,295 | 35,908 | | Non-current | 29,165 | 34,161 | | Total | 54,460 | 70,069 | 5. Financial Result The financial result shifted from a gain of €11.7 million in Q1 2024 to a loss of €5.5 million in Q1 2025, primarily due to a significant increase in foreign currency losses and a decrease in other financial income Financial Income and Expenses (Three months ended March 31) | Metric | 2025 (Euros in thousands) | 2024 (Euros in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Change in fair value of liabilities of warrants | 1,597 | 1,043 | +554 | | Other financial income | 6,264 | 11,381 | -5,117 | | Other financial expenses | (13,336) | (677) | -12,659 | | Financial result | (5,475) | 11,747 | -17,222 | - Foreign currency losses increased significantly to €13.087 million in Q1 2025 from €0.017 million in Q1 2024, mainly from USD holdings[37][39] - Fair value of warrants decreased from €0.24 per warrant (Dec 31, 2024) to €0.02 per warrant (Mar 31, 2025), resulting in a €1.6 million income[37] 6. Income Tax The Group recognized an income tax benefit of €1.0 million in Q1 2025, compared to an expense of €0.5 million in Q1 2024. This shift is due to a net loss across the Group in 2025 and a decrease in deferred tax liability, whereas in 2024, Immatics GmbH generated taxable income from a collaboration termination Current and Deferred Taxes (Three months ended March 31) | Metric | 2025 (Euros in thousands) | 2024 (as restated) (Euros in thousands) | | :--- | :--- | :--- | | Current income tax | — | (1,332) | | Deferred income tax | 994 | 814 | | Taxes on income | 994 | (518) | - No current income tax expense in Q1 2025 due to net loss across the Group; a deferred income tax benefit of €0.994 million was recognized due to a decrease in deferred tax liability[41][42] - In Q1 2024, Immatics GmbH generated net income from the Genmab collaboration termination, leading to a €1.3 million current income tax expense, subject to German tax law limitations on tax loss carryforwards[43][44][46] 7. Share-based Payments Immatics N.V. operates three equity incentive plans (2020, 2022, 2024 Equity Plans) for directors, management, and employees, granting equity-settled Service Options and Performance-Based Options (PSUs). Total share-based compensation expenses remained stable at approximately €4.3 million for Q1 2025 and Q1 2024 Service Options - Service Options for employees and management vest on a four-year time-based schedule, while annual service options for Board members vest entirely after one year[51] - Weighted average fair value of Service Options granted in Q1 2025 was $5.51 per option, estimated using a Black-Scholes pricing model[52] Service Options Outstanding (March 31, 2025) | Metric | Number | Weighted average exercise price (USD) | | :--- | :--- | :--- | | Service Options outstanding on January 1 | 10,089,474 | 9.94 | | Service Options granted in 2025 | 1,014,400 | 5.51 | | Service Options forfeited | 30,432 | 11.02 | | Service Options outstanding on March 31 | 11,060,119 | 9.53 | | Service Options exercisable on March 31 | 5,366,201 | 10.12 | Performance-Based Options (PSUs) - PSUs vest based on achieving market capitalization milestones ($1.5B, $2B, $3B) and a four-year time-based vesting schedule[54] - No PSUs were granted in Q1 2025; fair value is measured at grant date using a Monte-Carlo simulation model[55] PSUs Outstanding (March 31, 2025) | Metric | Number | Weighted average exercise price (USD) | | :--- | :--- | :--- | | PSUs outstanding on January 1 | 3,680,000 | 10.09 | | PSUs outstanding on March 31 | 3,680,000 | 10.09 | | PSUs exercisable on March 31 | — | — | Total Share-based Compensation Expenses Total Employee-Related Share-based Compensation Expenses (Three months ended March 31) | Category | 2025 (Euros in thousands) | 2024 (Euros in thousands) | | :--- | :--- | :--- | | Research and development expenses | (2,155) | (2,268) | | General and administrative expenses | (2,175) | (2,029) | | Total share-based compensation | (4,330) | (4,297) | Additional Outstanding Awards Fully Vested - All outstanding awards from previous Immatics GmbH plans were replaced by cash payments and 2020 Equity Plan awards at Nasdaq listing, which are now fully vested with no additional expense recognized[57] Matching Stock Options Outstanding Matching Stock Options Outstanding (March 31, 2025) | Metric | Number | Weighted average exercise price (USD) | | :--- | :--- | :--- | | Matching Stock Options outstanding on January 1 | 1,315,798 | 10.00 | | Matching Stock Options forfeited | 4,950 | 10.00 | | Matching Stock Options expired | 1,520 | 10.00 | | Matching Stock Options outstanding on March 31 | 1,309,328 | 10.00 | | Matching Stock Options exercisable on March 31 | 1,309,328 | 10.00 | Converted Options Outstanding Converted Options Outstanding (March 31, 2025) | Metric | Number | Weighted average exercise price (USD) | | :--- | :--- | :--- | | Converted Options outstanding on January 1 | 477,842 | 2.90 | | Converted Options forfeited | 2,275 | 1.50 | | Converted Options expired | 254 | 1.17 | | Converted Options outstanding on March 31 | 475,313 | 2.90 | | Converted Options exercisable on March 31 | 475,313 | 2.90 | 8. Other Current and Non-Current Assets Other current assets increased to €24.2 million as of March 31, 2025, primarily driven by an increase in receivables from pre-paid income tax. Other non-current assets saw a slight decrease Other Current Assets (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Prepaid expenses | 11,964 | 12,048 | | Value added tax receivables | 976 | 888 | | Other assets | 11,265 | 6,310 | | Total | 24,205 | 19,246 | - Other assets include receivables from pre-paid income tax, which increased from €5.9 million (Dec 31, 2024) to €10.8 million (Mar 31, 2025)[61] Other Non-Current Assets (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Prepaid expenses | 225 | 333 | | Other assets | 907 | 917 | | Total | 1,132 | 1,250 | 9. Property, Plant and Equipment, Intangible Assets and Right-of-use Assets The Group acquired €3.5 million in property, plant, and equipment and intangible assets in Q1 2025, a decrease from €7.5 million in Q1 2024. Right-of-use assets increased by €3.2 million, mainly due to facility expansion - Acquisitions of property, plant and equipment and intangible assets decreased from €7.5 million in Q1 2024 to €3.5 million in Q1 2025[63] - Additions include leasehold improvements, lab, office, and computer equipment for the Houston R&D and GMP manufacturing facility, totaling €2.7 million in Q1 2025[64] - Right-of-use assets and corresponding lease liabilities increased by €3.2 million in Q1 2025, primarily due to facility expansion[65] 10. Provisions Provisions as of March 31, 2025, totaled €2.257 million, entirely consisting of provisions for annual employee bonuses, compared to no provisions at December 31, 2024 Provisions (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Provision for bonuses | 2,257 | — | | Total | 2,257 | — | 11. Accounts Payables Accounts payables decreased to €18.4 million as of March 31, 2025, from €20.7 million at December 31, 2024, driven by a reduction in trade payables, partially offset by an increase in accrued liabilities Accounts Payables (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Trade payables | 5,857 | 10,112 | | Accrued liabilities | 12,538 | 10,581 | | Total | 18,395 | 20,693 | 12. Other Current Liabilities Other current liabilities remained stable at €6.6 million as of March 31, 2025, compared to €6.8 million at December 31, 2024, with changes in payroll tax and other liabilities offsetting each other Other Current Liabilities (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Accrual for vacation and overtime | 1,779 | 1,579 | | Income tax liability | 1,761 | 1,761 | | Payroll tax | 731 | 2,008 | | Other liabilities | 2,373 | 1,457 | | Total | 6,644 | 6,805 | 13. Shareholders' Equity The total number of ordinary shares outstanding remained unchanged at 121,550,169 as of March 31, 2025, with no new shares issued or options exercised during the period. Other reserves are primarily related to foreign currency translation amounts from U.S. operations - Total ordinary shares outstanding remained at 121,550,169 as of March 31, 2025, with no changes from December 31, 2024[69] - Other reserves are related to accumulated foreign currency translation amounts from the Group's U.S. operations[70] 14. Related Party Disclosures During the three months ended March 31, 2025, the Group did not engage in any new related-party transactions with key management personnel or related entities, nor did it grant new service options to its Board of Directors - No new related-party transactions with key management personnel or related entities, and no new service options granted to the Board of Directors in Q1 2025[71] 15. Financial Instruments The Group's financial instruments include cash, short-term deposits, accounts receivables, accounts payables, liabilities for warrants, and lease liabilities. Liabilities for warrants are measured at fair value through profit and loss using Level 1 inputs (quoted prices on Nasdaq) Financial Instruments Carrying Amounts (As of March 31, 2025 and December 31, 2024) | Category | March 31, 2025 (Euros in thousands) | December 31, 2024 (Euros in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 242,844 | 236,748 | | Short-term deposits | 300,914 | 367,704 | | Accounts receivables | 5,600 | 5,857 | | Accounts payables | 18,395 | 20,693 | | Liabilities for warrants | 133 | 1,730 | | Lease liabilities | 18,387 | 16,203 | - Liabilities for warrants are classified as financial liabilities at fair value through profit and loss, measured using Level 1 inputs (Nasdaq closing price)[75][76] 16. Earnings and Loss per Share The Group reported basic and diluted loss per share of €(0.33) for Q1 2025, significantly higher than €(0.02) basic and €(0.03) diluted in Q1 2024. Due to the loss-making periods, all equity awards and warrants were anti-dilutive in Q1 2025, unlike Q1 2024 where warrants had a dilutive effect Net Loss and Loss per Share (Three months ended March 31) | Metric | 2025 (Euros in thousands, except per share data) | 2024 (as restated) (Euros in thousands, except per share data) | | :--- | :--- | :--- | | Net loss | (39,855) | (2,240) | | Net loss available to common shareholders | (39,855) | (3,283) | | Weighted average shares outstanding - basic | 121,550,169 | 98,740,222 | | Effect of potentially dilutive warrants / shares option | — | 7,187,500 | | Weighted average shares outstanding - diluted | 121,550,169 | 105,927,722 | | Loss per share - basic | (0.33) | (0.02) | | Loss per share - diluted | (0.33) | (0.03) | - All equity awards and Immatics Warrants were anti-dilutive in Q1 2025 due to the Group being loss-making and the weighted average share price being below the exercise price for warrants[79][80] 17. Commitments and Contingencies There have been no material changes to the contingent liabilities and other financial liabilities described in the Group's annual financial statements for the year ended December 31, 2024 - Statements regarding contingent liabilities and other financial liabilities remain essentially unchanged from the 2024 annual financial statements[82] 18. Events Occurring After the Interim Reporting Period After March 31, 2025, Immatics received an immaterial milestone payment from Moderna, triggered by the initiation of a Phase 1 clinical trial for a product candidate. No other material subsequent events were identified through May 13, 2025 - Immatics received a financially immaterial milestone payment from Moderna after March 31, 2025, for the initiation of a Phase 1 clinical trial[83] - No additional material subsequent events were identified through May 13, 2025[83] Management's Discussion and Analysis of Financial Condition and Results of Operations Overview Immatics is a clinical-stage biotechnology company developing TCR-based immunotherapies for solid tumors, aiming to become a fully integrated biopharmaceutical company. It utilizes two modalities, ACTengine and TCER, with four clinical-stage product candidates and several preclinical ones. The company has raised €1.5 billion and holds €543.8 million in cash and financial assets, sufficient for the next 12 months - Immatics is a clinical-stage biotechnology company focused on T cell receptor (TCR)-based immunotherapies for solid tumors, aiming to deliver tangible clinical benefits[85] - Develops product candidates in two therapeutic modalities: autologous TCR-engineered adoptive T cell therapies (ACTengine) and antibody-like TCR Bispecifics (TCER)[87] - Current pipeline includes four clinical-stage TCR-based product candidates (ACTengine IMA203, ACTengine IMA203CD8, TCER IMA402, TCER IMA401) and several preclinical candidates[89] - Raised €1.5 billion through March 31, 2025, and holds €543.8 million in cash and financial assets, sufficient to fund operations for at least the next 12 months[91] Our Strategy Immatics' strategy focuses on obtaining regulatory approval for PRAME cell therapy (IMA203) in 2L cutaneous melanoma, preparing commercial manufacturing, expanding PRAME opportunities to other cancers and earlier lines (IMA203CD8, IMA402), leveraging its bispecific platform (IMA401, mRNA-encoded TCERs), and unlocking strategic collaborations for non-dilutive capital - Primary strategy is to obtain regulatory approval for and commercialize PRAME cell therapy (IMA203) in 2L cutaneous melanoma, with a Phase 3 trial ('SUPRAME') targeting BLA submission in 1Q 2027[93] - Preparing in-house manufacturing capabilities at its Houston facility to support late-stage clinical development and commercial supply, aiming for efficient, cost-effective scalability and high success rates[93] - Expanding PRAME commercial opportunity to uveal melanoma (IMA203) and other solid cancers (gynecologic, NSCLC, breast, head and neck) with second-generation IMA203CD8 and TCR Bispecific IMA402[93] - Leveraging its bispecific platform with TCER IMA401 for NSCLC, head and neck, bladder cancer, and advancing mRNA-encoded TCERs in collaboration with Moderna[93] - Actively seeking additional strategic collaborations to combine synergistic capabilities, provide non-dilutive capital, and generate potential milestone payments and royalties[93] Components of Operating Results This section details the accounting policies and factors influencing key components of the operating results: revenue from collaboration agreements, research and development expenses, general and administrative expenses, and financial result Revenue from Collaboration Agreements - Revenue is solely derived from collaboration agreements (e.g., BMS, Moderna), consisting of upfront payments and R&D expense reimbursements[94] - Upfront payments for R&D services are deferred and recognized as revenue on a cost-to-cost basis[95] - Total payments from collaboration agreements reached €525.7 million through March 31, 2025, including €113.0 million from Moderna and €13.7 million from BMS in 2023[96] - Milestone and royalty payments are potential future revenue streams, but their achievement is uncertain[97] Research and Development Expenses - R&D expenses primarily include personnel costs (including share-based compensation), IP expenses, facility costs, and direct clinical/preclinical program expenses[99] - All research and development costs are expensed as incurred due to scientific uncertainty[100] - Expect R&D expenses to increase as product candidates advance through clinical studies and regulatory approval, with potential for delays and unforeseen events[102][103] General and Administrative Expenses - G&A expenses cover personnel costs (including share-based compensation) for finance, legal, HR, business development, professional fees, IT, and facility-related costs[104] - Anticipate increased G&A expenses due to scaling operations, potential regulatory approval preparations, and public company costs[105] Financial Result - Financial result includes income/expenses from changes in fair value of warrant liability, interest income, foreign exchange gains/losses, and expected credit losses[106] - Warrants are classified as liabilities recorded at fair value through profit and loss[106] Results of Operations The Group's net loss significantly widened to €39.9 million in Q1 2025 from €2.2 million in Q1 2024, driven by a substantial decrease in collaboration revenue (due to Genmab termination), increased R&D expenses, and a negative shift in financial results primarily from higher foreign exchange losses Overall Financial Performance Consolidated Statements of Operations Summary (Three months ended March 31) | Metric | 2025 (Euros in thousands) | 2024 (as restated) (Euros in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue from collaboration agreements | 18,582 | 30,269 | (11,687) | | Research and development expenses | (41,908) | (32,108) | (9,800) | | General and administrative expenses | (12,067) | (11,642) | (425) | | Operating result | (35,374) | (13,469) | (21,905) | | Financial result | (5,475) | 11,747 | (17,222) | | Net loss | (39,855) | (2,240) | (37,615) | | Net loss per share (Basic) | (0.33) | (0.02) | (0.31) | Revenue from Collaboration Agreements Analysis - Revenue decreased by €11.7 million (38.6%) from €30.3 million in Q1 2024 to €18.6 million in Q1 2025[109] - Moderna collaboration revenue increased by €4.8 million to €14.4 million, while BMS revenue decreased by €1.6 million to €4.2 million[109] - The termination of the Genmab collaboration in Q1 2024 accounted for a €14.9 million decrease in revenue for Q1 2025[109] Research and Development Expenses Analysis - Total R&D expenses increased by €9.8 million (30.5%) to €41.9 million in Q1 2025 from €32.1 million in Q1 2024[111] - Direct external R&D expenses for ACT programs increased by €5.2 million to €10.0 million, mainly due to increased IMA203 clinical trial activities[111] - Personnel-related expenses (excluding share-based compensation) increased by €3.9 million to €17.3 million due to headcount growth[114] - IP expenses decreased by €1.2 million to €0.6 million due to fewer patent activities[114] General and Administrative Expenses Analysis - Total G&A expenses increased by €0.4 million (3.7%) to €12.1 million in Q1 2025 from €11.6 million in Q1 2024[115] - Personnel-related G&A expenses increased by €0.6 million to €4.4 million due to headcount growth in finance, IT, HR, and communications[117] - Professional and consulting fees decreased by €0.5 million to €1.5 million[118] Change in Fair Value of Warrant Liabilities - Fair value of warrants decreased from €0.24 per warrant (Dec 31, 2024) to €0.02 per warrant (Mar 31, 2025) due to stock price decline, resulting in a €1.6 million income[121] Other Financial Income and Expenses Analysis - Other financial income decreased by €5.1 million to €6.3 million, mainly due to lower unrealized foreign exchange gains[122] - Other financial expenses increased significantly by €12.6 million to €13.3 million, mainly due to higher unrealized foreign exchange losses[122] Taxes on Income Analysis - Taxes on income shifted from an expense of €0.5 million in Q1 2024 to a benefit of €1.0 million in Q1 2025[123] - The shift is primarily due to Immatics GmbH not generating taxable profit in Q1 2025 and a €1.0 million decrease in deferred tax liabilities resulting in a deferred income tax benefit[123] Liquidity and Capital Resources Immatics' cash and cash equivalents increased to €242.8 million as of March 31, 2025, and the company believes it has sufficient capital for the next 12 months. Operations have historically incurred losses, funded by equity financing and collaboration payments. Cash flows from operating activities remained negative, while investing activities saw a net inflow in Q1 2025 due to short-term deposit maturities. Future funding requirements are substantial and depend on clinical trial progress and commercialization success Cash and Capital Position - Cash and cash equivalents increased from €236.7 million (Dec 31, 2024) to €242.8 million (Mar 31, 2025)[124] - Believes existing cash, cash equivalents, and other financial assets (€543.8 million as of Mar 31, 2025) are sufficient to fund operations for at least the next 12 months[91][124] - Accumulated deficit of €629.5 million as of March 31, 2025, with operations primarily funded by equity financing and collaboration payments[125] Sources and Uses of Liquidity - In 2024, received €185.0 million gross proceeds from a public offering in January, €137.9 million from an October public offering, and €19.0 million from an additional purchase option[126] - Established an at-the-market (ATM) offering program for up to $150 million, with no sales made to date[127] - Plans to utilize capital for R&D initiatives, clinical trials, regulatory approval, and investments in manufacturing equipment and operations[128] Cash Flows Analysis Summary of Cash Flows (Three months ended March 31) | Cash Flow Activity | 2025 (Euros in thousands) | 2024 (Euros in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Operating activities | (34,206) | (32,605) | (1,601) | | Investing activities | 46,808 | (241,818) | 288,626 | | Financing activities | (737) | 174,645 | (175,382) | | Total net increase/(decrease) in cash and cash equivalents | 11,865 | (99,778) | 111,643 | - Net cash outflow from operating activities increased slightly to €34.2 million in Q1 2025 from €32.6 million in Q1 2024, driven by loss before tax and working capital changes[130][131][132] - Net cash inflow from investing activities was €46.8 million in Q1 2025 (vs. €241.8 million outflow in Q1 2024), primarily due to €308.5 million proceeds from maturity of short-term deposits offsetting €258.6 million in new investments[133][134] - Net cash used in financing activities was €0.7 million in Q1 2025 (vs. €174.6 million inflow in Q1 202