text Therapeutics (CNTX) - 2025 Q3 - Quarterly Report

Financial Performance - The net loss for the nine months ended September 30, 2025, was $23.1 million, with an accumulated deficit of $117.9 million as of the same date[107]. - The net loss for the three months ended September 30, 2025, was $9.7 million, a reduction of $7.8 million or 44% compared to a net loss of $17.5 million in the same period in 2024[130]. - Research and development expenses for the nine months ended September 30, 2025, were $20.0 million, a slight decrease of $0.2 million or 1% compared to $20.2 million in the same period in 2024[136]. - General and administrative expenses increased by approximately $0.5 million, from $5.4 million in the nine months ended September 30, 2024, to $5.9 million in the same period in 2025, an increase of 8%[139]. - Cash used in operating activities for the nine months ended September 30, 2025, was $17.4 million, compared to $9.6 million in the same period in 2024[149]. - Interest income decreased by approximately $0.4 million, from $1.2 million in Q3 2024 to $0.8 million in Q3 2025, a decline of 33%[134]. - Other income for the nine months ended September 30, 2025, was approximately $104,000, compared to an expense of approximately $5,000 in the same period in 2024, primarily due to higher foreign currency gains[141]. Cash Position and Funding - Cash and cash equivalents as of September 30, 2025, were $76.9 million, expected to fund operations into 2027[118]. - The company expects its cash and cash equivalents to fund operations into 2027, covering ongoing clinical trials and operational expenses[143]. - The company plans to finance operations through equity offerings, debt financings, and collaborations, with no assurance of obtaining adequate financing[119]. - The company entered into a private placement agreement on May 1, 2024, raising approximately $100 million before expenses[121]. - Financing activities provided $94.8 million during the nine months ended September 30, 2024, from the sale of common stock and Pre-Funded Warrants in a Private Placement[153]. Research and Development - CTIM-76, a CLDN6 x CD3 TCE, has completed IND-enabling studies, with the first patient dosed in January 2025, and interim data expected in Q2 2026[104]. - CT-95, an MSLN x CD3 TCE, had its first patient dosed in April 2025, with initial Phase 1a data anticipated in mid-2026[105]. - CT-202, a Nectin-4 x CD3 TCE, is expected to initiate a first-in-human trial in Q2 2026[106]. - The development and regulatory milestone payments for CTIM-76 were reduced from $55 million to $15 million, and sales milestone payments from $130 million to $12.5 million[110]. - The company expects to incur significant operating losses and expenses as it advances its product candidates through clinical trials and seeks regulatory approval[116]. Accounting and Reporting - There were no material changes to critical accounting policies and estimates during the three and nine months ended September 30, 2025, compared to the previous year[155]. - The company is classified as an "emerging growth company," allowing it to delay the adoption of certain accounting standards until they apply to private companies[157]. - The market value of the company's stock held by non-affiliates is less than $700.0 million, qualifying it as a "smaller reporting company" with annual revenue below $100.0 million[159]. - The company will continue to be a smaller reporting company as long as the market value of its stock held by non-affiliates remains below $250.0 million or annual revenue stays below $100.0 million[159]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[160]. Investment Activities - Cash used in investing activities for the nine months ended September 30, 2024, included a one-time payment of $3.75 million for acquiring CT-95 assets and $11.0 million under the BioAtla License Agreement for CT-202 development[152]. - The company did not engage in off-balance sheet financing arrangements, indicating no material exposure to financing, liquidity, market, or credit risk[154].