Zura(US:ZURA)2025-08-14 12:25Financial Performance - Total current assets decreased from $178,744 thousand as of December 31, 2024, to $156,985 thousand as of June 30, 2025, representing a decline of approximately 12.1%[13] - Total operating expenses for the three months ended June 30, 2025, were $18,062 thousand, an increase of 53.5% compared to $11,759 thousand for the same period in 2024[15] - Net loss attributable to Class A Ordinary Shareholders for the three months ended June 30, 2025, was $15,993 thousand, compared to a net loss of $12,666 thousand for the same period in 2024, reflecting a 26.5% increase in losses[15] - As of June 30, 2025, the company reported a net loss of $33.4 million, compared to a net loss of $18.1 million for the same period in 2024, indicating an increase in losses of approximately 84% year-over-year[31] - The company has incurred operating losses since inception and may never become profitable, highlighting the ongoing financial challenges[41] Cash and Liquidity - Cash and cash equivalents decreased from $176,498 thousand as of December 31, 2024, to $154,490 thousand as of June 30, 2025, a reduction of approximately 12.4%[13] - Cash and cash equivalents decreased to $154.5 million as of June 30, 2025, from $176.5 million at the beginning of the period, reflecting a net decrease of $22.0 million[31] - The company expects to continue incurring significant operating losses for the foreseeable future, with liquidity sufficient to fund operations over the next twelve months[41] - The Company has significant cash balances exceeding the federally insured limit of $250,000, which poses a risk to its financial condition if access to these funds is lost[51] Research and Development - Research and development expenses for the six months ended June 30, 2025, were $19,178 thousand, up from $9,132 thousand for the same period in 2024, indicating a growth of 109.5%[15] - The company initiated the TibuSHIELD Phase 2 clinical study in May 2025, evaluating tibulizumab in approximately 180 adults with moderate to severe hidradenitis suppurativa[38] - The company is developing tibulizumab (ZB-106), a bispecific dual-antagonist antibody targeting interleukin-17A and BAFF, currently in Phase 2 trials[35] - The company has initiated TibuSURE, a global Phase 2 clinical study for tibulizumab in adults with systemic sclerosis, involving approximately 80 participants[38] Shareholder Equity and Shares - Shareholders' equity decreased from $148,356 thousand as of December 31, 2024, to $127,446 thousand as of June 30, 2025, a decline of approximately 14.1%[13] - The weighted-average Class A Ordinary Shares used in computing net loss per share increased from 74,947,369 for the three months ended June 30, 2024, to 94,289,954 for the same period in 2025[15] - The company raised a total of $105.3 million in net cash proceeds from the sale of Class A Ordinary Shares and pre-funded warrants in April 2024[42] - In April 2025, the Company sold 3 million Class A Ordinary Shares at a price of $1.75 per share under the ATM, resulting in net proceeds of $5.1 million[92] - As of June 30, 2025, a total of 50,230,383 shares are reserved for issuance, including shares issuable upon exercise of pre-funded warrants and options[93] - The Company has issued pre-funded warrants with an exercise price of $0.001 per share, totaling 30,384,348 outstanding as of June 30, 2025[98] - The Company completed a warrant exchange on August 12, 2024, issuing 2,064,082 Class A Ordinary Shares in exchange for public warrants and 1,718,108 Class A Ordinary Shares for private placement warrants[101] Milestone Payments and Obligations - The Company is obligated to make development milestone payments up to an aggregate of $155.0 million and sales milestone payments up to $440.0 million based on net sales thresholds for products developed from tibulizumab[76] - The Company has a right to receive up to $69 million in future development and regulatory milestone payments from Pfizer, along with sales milestone payments up to $525 million[82] - The Company is obligated to make milestone payments to Lilly totaling up to $155 million and sales milestone payments up to $440 million based on net sales thresholds of products developed from the licensed compound[80] - As of June 30, 2025, no Lilly Contingent Payments are due and will not be recorded in the financial statements until they are due[80] Share-Based Compensation - The total share-based compensation expense for the three months ended June 30, 2025 was $3.732 million, compared to $2.926 million for the same period in 2024[119] - The Company had approximately $19.5 million of unrecognized share-based compensation expense related to options, expected to be recognized over a weighted average period of 3.1 years[119] - The Company granted 4,824,440 share options during the six months ended June 30, 2025, with options outstanding increasing to 16,883,380 as of June 30, 2025[107] - The weighted average grant date fair value of options granted during the six months ended June 30, 2025 was $0.96, down from $2.83 in 2024[110] Legal and Regulatory Matters - The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims[120] - The Company expects no material impact from the tax law changes enacted on July 4, 2025, as it analyzes the tax effects for Q3 2025[126] - The Company is currently evaluating the impact of ASU 2023-09 on its income tax disclosures, which is expected to result in considerable changes[62] Other Financial Information - The Company recorded $0.3 million in other income for R&D Credits received in May 2025, and filed an additional claim for $1.0 million that was not received as of June 30, 2025[58] - The Company recorded expenses for Defined Contribution Plans of $0.1 million for Q2 2025, compared to $41,000 in Q2 2024, reflecting a significant increase[125] - Stone Peach requested to exercise a Put Option to sell 50% of its Series Seed Preferred Shares in Z33 for $5.0 million on July 14, 2025[127] - The Company granted inducement awards for options to purchase 890,950 Class A Ordinary Shares to newly hired employees in July 2025[128] - In July 2025, the Company issued 2,888,952 Class A Ordinary Shares related to the exercise of 1,682,000 2023 Pre-Funded Warrants and 1,206,952 2024 Pre-Funded Warrants[129]