LAVA Therapeutics(LVTX) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue for the six months ended June 30, 2025, was $0.0 million, a decrease of $6.99 million compared to $7.0 million for the same period in 2024[117][118]. - The net loss for the six months ended June 30, 2025, was $12.1 million, compared to a net loss of $8.9 million for the same period in 2024, an increase of $3.2 million[116]. - Other income (expense), net for the six months ended June 30, 2025, was $3.1 million, an increase of $0.4 million compared to $2.7 million in 2024, primarily due to a $5.2 million gain on extinguishment of borrowings[123]. - Interest income decreased by $0.6 million for the six months ended June 30, 2025, compared to the same period in 2024[123]. - Foreign currency exchange loss for the six months ended June 30, 2025, was $3.3 million, a decrease of $4.3 million compared to a gain of $1.0 million in 2024[123]. Research and Development - The company discontinued the Phase 1 trial of LAVA-1266 for acute myeloid leukemia and myelodysplastic syndrome on August 4, 2025[84]. - Research and development expenses primarily consist of costs incurred in clinical trial activities, with no specific allocation to product development programs[101]. - Research and development expenses for the six months ended June 30, 2025, were $8.9 million, down from $11.6 million in 2024, representing a decrease of $2.7 million[119]. - Research and development expenses decreased by $3.1 million for pre-clinical and clinical trial expenses, primarily due to the discontinuation of the LAVA-1207 clinical trial[119]. - The company plans to resume development of product candidates, including LAVA-1266, and seek regulatory approvals for successful candidates[133]. Expenses and Restructuring - A restructuring plan was adopted in February 2025, resulting in a workforce reduction of approximately 30%, incurring $0.5 million in expenses[89]. - The company incurred $1.7 million in additional restructuring expenses during the three months ended June 30, 2025[91]. - Personnel-related expenses in general and administrative costs increased by $0.3 million due to salary increases and severance payments related to restructuring activities[120]. - General and administrative expenses for the six months ended June 30, 2025, were $6.0 million, a decrease of $0.8 million from $6.8 million in 2024[120]. Cash and Funding - As of June 30, 2025, the company has cash, cash equivalents, and short-term investments totaling $56.2 million, sufficient to meet projected cash requirements for at least 12 months[129]. - Net cash used in operating activities for the six months ended June 30, 2025 was $25.4 million, an increase of $16.3 million compared to $9.1 million for the same period in 2024[135]. - The net decrease in cash and cash equivalents for the six months ended June 30, 2025 was $12.7 million, compared to a decrease of $8.0 million for the same period in 2024[135]. - The company may face challenges in raising additional funds due to potential worsening global economic conditions and market volatility[132]. - If the transactions with XOMA are not consummated, the company will require substantial additional funding to develop product candidates and support operations[132]. Collaborations and Agreements - A share purchase agreement was entered into with XOMA Royalty Corporation on August 3, 2025, for a price of $1.16 per share plus additional cash and contingent value rights[87]. - The collaboration agreement with Pfizer includes a $50 million upfront payment and potential milestone payments totaling approximately $650 million[93]. - The company recognized $1.0 million in milestone payments from Johnson & Johnson under their collaboration agreement following the achievement of research milestones[97]. - The company recognized an aggregate revenue of $17.5 million under the J&J Agreement, including a nonrefundable up-front payment of $8.0 million and clinical milestone payments of $9.5 million[126]. - The company received a nonrefundable up-front payment of $50.0 million from the Pfizer Agreement in October 2022 and a clinical milestone payment of $7.0 million expected in March 2024[126].