Lexeo Therapeutics(LXEO) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward Looking Statements This section highlights that the report contains forward-looking statements involving risks and uncertainties regarding future financial and operational results - The report contains forward-looking statements that involve risks and uncertainties, covering future results of operations, financial position, business strategy, clinical trials, R&D costs, and regulatory strategy[9] - These forward-looking statements are based on current expectations and projections and are not guarantees of future performance; actual results could differ materially due to risks and uncertainties[10] PART I - FINANCIAL INFORMATION This section details Lexeo Therapeutics' unaudited condensed financial statements and management's analysis of financial condition and operations - The unaudited condensed financial statements are prepared in conformity with generally accepted accounting principles (GAAP) for interim financial information and should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2024[23] - Operating results for the three and six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025, or any other future period[23] Item 1. Financial Statements. This section presents Lexeo Therapeutics' unaudited condensed financial statements, prepared in conformity with GAAP for interim reporting Condensed Balance Sheets (unaudited) This section provides Lexeo Therapeutics' unaudited condensed balance sheets as of June 30, 2025, and December 31, 2024 Condensed Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total assets | $176,068 | $146,942 | | Total liabilities | $37,850 | $30,100 | | Total stockholders' equity | $138,218 | $116,842 | | Cash and cash equivalents | $35,480 | $35,014 | | Current portion of investments in U.S. Treasury securities | $97,413 | $86,504 | | Non-current portion of investments in U.S. Treasury securities | $19,613 | $7,012 | | Accounts payable | $20,025 | $6,417 | | Accrued expenses and other current liabilities | $8,912 | $13,759 | Condensed Statements of Operations and Comprehensive Loss (unaudited) This section presents Lexeo Therapeutics' unaudited condensed statements of operations and comprehensive loss for specified periods Condensed Statements of Operations and Comprehensive Loss (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Research and development | $14,721 | $16,560 | $31,892 | $32,302 | | General and administrative | $15,967 | $6,990 | $32,601 | $14,539 | | Total operating expenses | $30,688 | $23,550 | $64,493 | $46,841 | | Operating loss | $(30,688) | $(23,550) | $(64,493) | $(46,841) | | Gain on long-term investment | $3,390 | $- | $3,390 | $- | | Interest income | $1,268 | $2,348 | $2,461 | $3,999 | | Net loss | $(26,103) | $(21,238) | $(58,759) | $(42,920) | | Net loss per common share, basic and diluted | $(0.60) | $(0.64) | $(1.53) | $(1.41) | Condensed Statements of Stockholders' Equity (unaudited) This section details Lexeo Therapeutics' unaudited condensed statements of stockholders' equity for the periods presented Condensed Statements of Stockholders' Equity (in thousands) | Metric | December 31, 2024 (in thousands) | June 30, 2025 (in thousands) | | :----------------------------------- | :------------------------------- | :----------------------------- | | Total Stockholders' Equity | $116,842 | $138,218 | | Additional Paid-in Capital | $397,132 | $477,175 | | Accumulated Deficit | $(280,173) | $(338,932) | - Issuance of common stock, pre-funded warrants, and warrants from the May 2025 Private Placement contributed $73.08 million to additional paid-in capital[18] - Stock-based compensation expense for the six months ended June 30, 2025, was $6.77 million[18] Condensed Statements of Cash Flows (unaudited) This section presents Lexeo Therapeutics' unaudited condensed statements of cash flows for the six months ended June 30, 2025 and 2024 Condensed Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash used in operating activities | $(48,935) | $(35,019) | | Net cash used in investing activities | $(23,574) | $(411) | | Net cash provided by financing activities | $72,971 | $88,945 | | Net change in cash, cash equivalents and restricted cash | $462 | $53,515 | - Net cash used in operating activities increased by $13.9 million for the six months ended June 30, 2025, primarily due to a higher net loss and an unrealized gain on long-term investment[19][131] - Net cash used in investing activities significantly increased to $23.6 million in 2025, primarily due to $55.4 million in purchases of U.S. Treasury securities, partially offset by $31.9 million from maturities[19][133] - Net cash provided by financing activities in 2025 was primarily driven by $73.1 million in net proceeds from the May 2025 Private Placement offering[19][134] Notes to Condensed Financial Statements (unaudited) This section provides detailed notes accompanying Lexeo Therapeutics' unaudited condensed financial statements 1. Description of Business and Basis of Presentation Lexeo Therapeutics is a clinical-stage genetic medicine company focused on AAV-engineered gene therapies, with financial statements prepared under GAAP - Lexeo Therapeutics is a clinical-stage genetic medicine company focused on hereditary and acquired diseases, utilizing adeno-associated viruses (AAV) to transfer genes[20] - The company has incurred net losses and negative cash flows from operations since inception, with an accumulated deficit of $338.9 million as of June 30, 2025[25] - Current cash, cash equivalents, and investments in U.S. Treasury securities ($152.5 million as of June 30, 2025) are estimated to fund operations for at least 12 months from the financial statements' issuance date[25] 2. Summary of Significant Accounting Policies This section outlines the company's significant accounting policies, noting no material changes from its annual financial statements - There have been no significant changes in the Company's accounting policies from those disclosed in its Annual Financial Statements[28] - Management makes significant estimates and assumptions, particularly for accruals of research and development costs and the fair value of stock option awards[29] - The two-class method is used for net loss per common share, with anti-dilutive securities (e.g., stock options, RSUs, warrants) excluded from diluted net loss per share computation during periods of net loss[30][32] 3. Fair Value Measurements The company measures