Werewolf Therapeutics(US:HOWL)2025-11-04 12:11Financial Performance - The company reported external development costs totaling $20.98 million for the nine months ended September 30, 2025, compared to $22.61 million for the same period in 2024, indicating a decrease of approximately 7.2%[98] - No revenue was recognized during the nine months ended September 30, 2025, compared to $1.9 million recognized in the same period of 2024[117] - The accumulated deficit as of September 30, 2025 was $467.0 million, indicating the total losses incurred since inception[125] - The company has not generated any revenue from product sales to date and does not expect to do so in the foreseeable future[127] - The company anticipates substantial and increasing expenses and net losses as it advances product candidates through clinical development, leading to a significant increase in its accumulated deficit[128] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $3.7 million, a decrease from $10.5 million for the same period in 2024[148] Research and Development - Research and development expenses for WTX-124 were $13.09 million for the nine months ended September 30, 2025, up from $8.67 million in the same period of 2024, reflecting a year-over-year increase of approximately 51.9%[98] - Research and development expenses for the nine months ended September 30, 2025 were $37.9 million, down from $40.7 million in 2024, a decrease of $2.8 million[118] - Research and development expenses for the three months ended September 30, 2025 were $11.6 million, a decrease of $0.9 million from $12.5 million in the same period of 2024[109] - The company is developing additional INDUKINE candidates, including WTX-712, WTX-518, and WTX-921, with preclinical data presented at the AACR Annual Meeting in April 2024[91] - The company plans to release interim data from the WTX-124 monotherapy and combination expansion arms in the fourth quarter of 2025[87] - The company has initiated a Phase 1b/2 clinical trial for WTX-330, with an update on the clinical trial expected in the fourth quarter of 2025[88] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025 were $51.3 million, a decrease of $3.9 million from $55.1 million in 2024[116] - General and administrative expenses are expected to fluctuate based on the operating needs of the business, including support for research and development activities[102] - General and administrative expenses for the three months ended September 30, 2025 were $4.1 million, down from $4.6 million in 2024, reflecting a decrease of $0.5 million[111] Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $65.7 million, which is expected to be insufficient to fund operations for at least twelve months[141] - The company incurred net cash used in operating activities of $49.3 million for the nine months ended September 30, 2025, compared to $41.9 million for the same period in 2024, reflecting an increase of $7.3 million[146] - The company entered into the K2HV Loan Agreement, providing up to $60.0 million in term loans, with $30.0 million received at closing[132] - The term loan under the K2HV Loan Agreement matures on May 1, 2028, with a variable interest rate starting at 10.3%[133] - The company expects to continue funding operations through equity and/or debt financing until it can generate substantial revenue from product sales[143] - The repayment of all amounts outstanding under the PWB Loan Agreement resulted in a repayment of $10.7 million in term loans[148] Interest Income and Expense - Interest income decreased to $0.7 million for the three months ended September 30, 2025, down from $1.6 million in 2024, primarily due to lower balances in money market accounts[112] - Interest expense increased to $1.3 million for the three months ended September 30, 2025, compared to $1.2 million in 2024, attributed to a higher effective interest rate under the K2HV Loan Agreement[113] - Interest expense for the nine months ended September 30, 2025 was $3.9 million, compared to $3.4 million in 2024, reflecting an increase of $0.5 million[122] Other Financial Information - The company has substantial doubt about its ability to continue as a going concern for at least twelve months from the date of the financial statements issued[95] - The company has received $20.0 million in payments from Jazz under the Collaboration Agreement and is eligible for up to an additional $1.255 billion in milestone payments[140] - The company sold 2,360,186 shares of common stock at an average price of $1.71 per share for net proceeds of $3.6 million during the nine months ended September 30, 2025[139] - The company recognized a total loss on extinguishment of debt of $0.6 million during the second quarter of 2024[131] - Total estimated base rent payments for the office and laboratory lease expiring in May 2030 are approximately $11.5 million[151] - There were no material changes to the company's critical accounting policies during the three and nine months ended September 30, 2025[153]