GH Research PLC(GHRS) - 2025 Q2 - Quarterly Report

Unaudited Condensed Consolidated Interim Financial Statements This section presents the company's financial performance, position, changes in equity, and cash flows for the interim periods. Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss The company reported a decreased loss for the three months but an increased loss for the six months ended June 30, 2025, driven by rising operating expenses and finance income | Metric | Three months ended June 30, 2025 (thousands of USD) | Three months ended June 30, 2024 (thousands of USD) | Six months ended June 30, 2025 (thousands of USD) | Six months ended June 30, 2024 (thousands of USD) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Loss from operations | (14,704) | (13,219) | (27,436) | (24,747) | | Total other income | 5,415 | 2,840 | 7,335 | 6,702 | | Loss for the period | (9,289) | (10,379) | (20,101) | (18,045) | | Total comprehensive loss for the period | (8,914) | (10,932) | (19,134) | (20,430) | | Basic and diluted loss per share (USD) | (0.15) | (0.20) | (0.33) | (0.35) | - Operating expenses increased by 11.23% for the three months and 10.87% for the six months ended June 30, 2025, compared to the same periods in 2024[1] Unaudited Condensed Consolidated Interim Statement of Financial Position The company's financial position as of June 30, 2025, shows a significant increase in total assets and total equity, primarily driven by a substantial rise in cash and cash equivalents | Metric | At June 30, 2025 (thousands of USD) | At December 31, 2024 (thousands of USD) | | :-------------------------- | :----------------------- | :-------------------------- | | Total current assets | 293,880 | 154,225 | | Total non-current assets | 19,548 | 34,048 | | Total assets | 313,428 | 188,273 | | Total liabilities | 10,249 | 9,322 | | Total equity | 303,179 | 178,951 | - Cash and cash equivalents increased by 151.88% from $100.79 million at December 31, 2024, to $253.87 million at June 30, 2025[2] Unaudited Condensed Consolidated Interim Statement of Changes in Equity Total equity significantly increased from $178.95 million at January 1, 2025, to $303.18 million at June 30, 2025, primarily due to a substantial increase in additional paid-in capital from a share issuance | Metric | At January 1, 2025 (thousands of USD) | At June 30, 2025 (thousands of USD) | | :-------------------------- | :----------------------- | :----------------------- | | Share capital | 1,301 | 1,551 | | Additional paid-in capital | 291,463 | 431,061 | | Other reserves | 5,194 | 8,407 | | Accumulated deficit | (106,446) | (126,268) | | Total equity | 178,951 | 303,179 | - The issue of share capital contributed $139.85 million to total equity during the six months ended June 30, 2025[3] - Share-based compensation expense for the six months ended June 30, 2025, was $3.51 million, a significant increase from $0.14 million in the prior year period[3] Unaudited Condensed Consolidated Interim Statement of Cash Flows The company experienced a net increase in cash and cash equivalents of $149.79 million for the six months ended June 30, 2025, primarily driven by $139.79 million in net cash flows from financing activities, largely from an equity public offering | Cash Flow Activity | Six months ended June 30, 2025 (thousands of USD) | Six months ended June 30, 2024 (thousands of USD) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash used in operating activities | (17,540) | (19,532) | | Cash flows from investing activities | 27,548 | 28,520 | | Net cash flows from financing activities | 139,785 | (185) | | Net increase in cash and cash equivalents | 149,793 | 8,803 | | Cash and cash equivalents at the end of the period | 253,873 | 87,131 | - Proceeds from the equity public offering amounted to $150.00 million, with transaction costs of $(10.15) million[4] NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS These notes provide detailed explanations of the company's accounting policies, financial performance, and position, including significant judgments and key transactions 1. Corporate information GH Research PLC is a clinical-stage biopharmaceutical company focused on developing mebufotenin therapies for Treatment Resistant Depression (TRD), including GH001 and GH002. The company completed a public offering on Nasdaq in February 2025, raising $139.8 million net - The Company is a clinical-stage biopharmaceutical company developing novel and proprietary mebufotenin therapies for Treatment Resistant Depression (TRD), with a portfolio including GH001 (inhalable) and GH002 (intravenous)[6] - On February 6, 2025, the Company completed a public offering on Nasdaq, issuing 10,000,000 ordinary shares at $15.00 per share, resulting in net proceeds of $139.8 million after deducting underwriting discounts and transaction costs[7] 2. Basis of preparation, significant judgments, and accounting policies Interim financial statements adhere to IAS 34, using USD, and maintain a going concern basis due to strong financial resources, with key judgments in share-based compensation and R&D tax credits - The unaudited condensed consolidated interim financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and presented in U.S. dollar (USD), the Company's functional and presentation currency[8] - The Group continues to adopt the going concern basis, believing it has sufficient financial resources ($253.9 million cash and cash equivalents, $54.8 million marketable securities as of June 30, 2025) to cover planned cash outflows for at least the next twelve months[13][15] - For share-based compensation expense, the Group now uses a blended rate for expected volatility, combining its own historical volatility with that of comparable public companies, a change from prior periods which relied solely on comparable companies[18] - Research and development tax credits of $1.6 million were recognized for the six months ended June 30, 2025, with a portion remaining unrecognized due to management's assessment of uncertainty[19][20] - Management considers the Group to have only a single segment: Research and Development ("R&D")[24] 3. Expenses by nature Total operating expenses increased by 10.87% for the six months ended June 30, 2025, primarily due to a significant rise in general and administration expenses (up 67.76%) and employee expenses, while external research and development expenses decreased | Expense Category | Three months ended June 30, 2025 (thousands of USD) | Three months ended June 30, 2024 (thousands of USD) | Six months ended June 30, 2025 (thousands of USD) | Six months ended June 30, 2024 (thousands of USD) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | External research and development expenses | 6,085 | 7,876 | 11,507 | 14,923 | | Employee expenses (R&D) | 2,857 | 1,810 | 5,242 | 3,358 | | Total research and development expenses | 8,958 | 9,755 | 16,810 | 18,413 | | External costs (G&A) | 3,694 | 2,322 | 6,563 | 4,237 | | Employee expenses (G&A) | 1,977 | 1,069 | 3,918 | 1,950 | | Total general and administrative expenses | 5,746 | 3,464 | 10,626 | 6,334 | | Total operating expenses | 14,704 | 13,219 | 27,436 | 24,747 | - Share-based compensation expense included in employee expenses for the six months ended June 30, 2025, was $1.5 million for R&D and $2.0 million for G&A, significantly higher than the prior year[25][26] 4. Finance income and expense Total finance income increased by 11.64% for the six months ended June 30, 2025, primarily driven by higher gains on cash equivalents and other financial assets at fair value through profit and loss. Finance expenses remained stable | Metric | Three months ended June 30, 2025 (thousands of USD) | Three months ended June 30, 2024 (thousands of USD) | Six months ended June 30, 2025 (thousands of USD) | Six months ended June 30, 2024 (thousands of USD) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Finance income on cash, cash equivalents and other financial assets | 596 | 522 | 1,888 | 1,080 | | Gain on cash equivalents and other financial assets at FVTPL | 1,819 | 1,081 | 2,564 | 2,138 | | Interest income under effective interest rate method at FVOCI | 659 | 952 | 1,381 | 2,007 | | Total Finance income | 3,074 | 2,555 | 5,833 | 5,225 | | Finance expense on investments | (165) | (165) | (333) | (331) | | Finance expense on lease liability | (9) | (13) | (19) | (26) | | Total Finance expense | (174) | (178) | (352) | (357) | 5. Cash and cash equivalents Cash and cash equivalents significantly increased to $253.9 million as of June 30, 2025, from $100.8 million at December 31, 2024, primarily due to proceeds from the sale of other financial assets and redemption of marketable securities | Metric | June 30, 2025 (thousands of USD) | December 31, 2024 (thousands of USD) | | :-------------------- | :-------------------- | :------------------------ | | Cash at bank and in hand | 31,673 | 28,577 | | Cash equivalents | 222,200 | 72,214 | | Total | 253,873 | 100,791 | - During the six months ended June 30, 2025, the Group received $19.6 million from the sale of other financial assets and $8.0 million from the redemption of marketable securities[30] 6. Marketable securities The fair value of marketable securities decreased to $54.8 million as of June 30, 2025, from $62.4 million at January 1, 2025, primarily due to redemptions and disposals. These securities mature within the next two years | Metric | Marketable securities (thousands of USD) | | :------------------------------------ | :---------------------------- | | At January 1, 2025 | 62,446 | | Accrued interest | 1,381 | | Interest received | (346) | | Redemptions and disposals of marketable securities | (8,640) | | Revaluation adjustment | (28) | | At June 30, 2025 | 54,813 | - Marketable securities held by the Group mature at varying dates within the next two years[31] - Movement on marketable securities through OCI for the six months ended June 30, 2025, was $(22) thousand, compared to $(650) thousand in the prior year[32] 7. Other current assets Other current assets primarily consist of prepayments and research and development tax credit receivable - Other current assets primarily represent prepayments and research and development tax credit receivable[33] 8. Other non-current assets Other non-current assets represent research and development tax credit receivable - Other non-current assets represent research and development tax credit receivable[34] 9. Trade payables Trade payables primarily represent amounts incurred for manufacturing, research, consulting services, and professional fees, which are expected to be settled within 12 months - Trade payables primarily represent amounts incurred for the provision of manufacturing, research and consulting services and professional fees, which are outstanding at the end of the period and due to be settled within 12 months[35] 10. Other current liabilities Other current liabilities primarily include accruals for operating expenses and employee tax payable, expected to be settled within one year - Other current liabilities primarily represent accruals for operating expenses and employee tax payable and are expected to be settled within one year[36] 11. Share capital The company completed a public offering on February 6, 2025, issuing 10,000,000 ordinary shares, which increased the total outstanding shares to 62,029,395 as of June 30, 2025 - On February 6, 2025, GH Research PLC completed a public offering on the Nasdaq, issuing and selling 10,000,000 ordinary shares at $15.00 per share, with net proceeds of $139.8 million[37] | Metric | Number of outstanding shares | | :-------------------- | :--------------------------- | | At December 31, 2024 | 52,028,145 | | Share issue from public offering | 10,000,000 | | Share option exercise | 1,250 | | At June 30, 2025 | 62,029,395 | 12. Contingencies As of June 30, 2025, there were no material contingencies requiring adjustment or disclosure in the unaudited condensed consolidated interim financial statements - As of June 30, 2025, there were no material contingencies which required adjustment or disclosure in the unaudited condensed consolidated interim financial statements[39] 13. Share based compensation The company operates a Share Option Plan, with 2,470,663 awards outstanding as of June 30, 2025. A significant number of new options were granted during the period, and the share-based compensation expense increased substantially, valued using a Black-Scholes model with a blended volatility rate - As of June 30, 2025, the total number of ordinary shares which may be issued under the Share Option Plan was 3,721,251, with 1,242,042 shares available for future issuance[40] | Metric | At December 31, 2024 | Granted | Forfeited | Exercised | At June 30, 2025 | | :-------------------- | :------------------- | :------ | :-------- | :-------- | :--------------- | | Number of awards | 1,869,547 | 637,000 | (34,634) | (1,250) | 2,470,663 | | Weighted Average exercise price per share in USD | 3.95 | 2.42 | 11.92 | 0.03 | 3.44 | - The weighted average grant date fair value of awards granted during the six months ended June 30, 2025, was $10.32 per award, determined using the Black-Scholes option-pricing model with a blended volatility rate[44] - The expense recognized for all awards for services received during the six months ended June 30, 2025, was $3.5 million, a significant increase from $0.1 million in the prior year period[46] 14. Related party disclosures The only material related party transaction in the three and six months ended June 30, 2025, was the grant of 480,000 share options to key management - Other than share options granted to key management of 480,000 in the three months ended June 30, 2025, there were no material related party transactions[47] 15. Loss per share Basic and diluted loss per share for the six months ended June 30, 2025, was $(0.33), an improvement from $(0.35) in the prior year, calculated based on the weighted average number of shares outstanding | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss attributable to shareholders (in thousands of USD) | (9,289) | (10,379) | (20,101) | (18,045) | | Weighted average number of shares in issue | 62,028,736 | 52,028,145 | 60,039,492 | 52,028,145 | | Basic and diluted loss per share (in USD) | (0.15) | (0.20) | (0.33) | (0.35) | 16. Events after the reporting date In July 2025, the company received communication from the FDA regarding its complete response to the clinical hold on its Investigational New Drug Application (IND) for GH001, with the IND status remaining unchanged as the company works to resolve the hold - In July 2025, the Group received a communication from the U.S. Food and Drug Administration (FDA) relating to its complete response to the clinical hold of its Investigational New Drug Application (IND) for GH001[49] - The status of the IND for GH001 remains unchanged, and the Group continues to work to resolve the clinical hold[49]