Shattuck Labs(STTK) - 2025 Q3 - Quarterly Report

Financial Performance - License and collaboration revenue for Q3 2025 was $1,000,000, a decrease of 66.7% compared to $2,997,000 in Q3 2024[20] - Net loss for Q3 2025 was $10,056,000, compared to a net loss of $16,675,000 in Q3 2024, indicating a 39.5% improvement[20] - The company reported a comprehensive loss of $10,054,000 for Q3 2025, compared to a comprehensive loss of $16,618,000 in Q3 2024, showing a 39.5% reduction[20] - For the nine months ended September 30, 2025, the net loss was $36.2 million, a decrease from a net loss of $56.7 million in the same period of 2024, representing a 36% improvement[26] - Net loss for the three months ended September 30, 2025, was $10.1 million, a decrease of $6.6 million or 39.7% compared to a net loss of $16.7 million for the same period in 2024[150] - For the nine months ended September 30, 2025, the net loss was $36.2 million compared to $56.7 million for the same period in 2024, indicating a reduction in losses[133] Revenue and Expenses - Research and development expenses for the nine months ended September 30, 2025, were $26,218,000, down 49.5% from $51,816,000 in the same period of 2024[20] - Research and development expenses for the three months ended September 30, 2025, totaled $7,618 million, a decrease of 53.3% from $16,313 million in the same period of 2024[119] - General and administrative expenses decreased by $0.5 million, or 11.0%, to $4.1 million for the three months ended September 30, 2025, from $4.6 million for the same period in 2024[153] - General and administrative expenses for the nine months ended September 30, 2025, decreased by $1.9 million, or 12.9%, to $12.9 million from $14.8 million for the same period in 2024[158] - For the nine months ended September 30, 2025, license and collaboration revenue decreased by $4.7 million, or 82.5%, to $1.0 million from $5.7 million for the same period in 2024[156] Assets and Liabilities - Total assets increased to $100,333,000 as of September 30, 2025, up from $91,049,000 at December 31, 2024, representing a 10.3% growth[18] - Total stockholders' equity increased to $93,240,000 as of September 30, 2025, up from $79,626,000 at December 31, 2024, reflecting a 17.1% increase[18] - The company’s total liabilities decreased to $7,093,000 as of September 30, 2025, down from $11,423,000 at December 31, 2024, a reduction of 38.1%[18] - Cash and cash equivalents decreased to $42,548,000 as of September 30, 2025, down from $57,387,000 at December 31, 2024, a decline of 25.8%[18] - The company reported cash and cash equivalents of $42.5 million as of September 30, 2025, down from $43.8 million at the end of 2024[26] - The company has an accumulated deficit of $417.9 million as of September 30, 2025, highlighting ongoing financial challenges[28] Cash Flow - Cash flows from operating activities resulted in a net cash used of $31.4 million for the nine months ended September 30, 2025, compared to $43.1 million in 2024, indicating a 27% reduction in cash outflow[26] - Net cash used in operating activities for the nine months ended September 30, 2025, was $31.4 million, reflecting a net loss of $36.2 million[168] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $44.4 million, primarily from the sale of common stock and warrants[171] Stock and Equity - Weighted-average shares outstanding increased to 72,184,818 for Q3 2025, compared to 50,833,538 for Q3 2024, representing a 42.0% increase[20] - The Company issued 15,225,158 shares of common stock at a price of $0.8677 per share in August 2025[106] - The Company completed a public offering in December 2023, selling 4,651,163 shares of common stock at a price of $6.45 per share[105] - As of September 30, 2025, the company has 52,635,346 common stock warrants outstanding[108] - The Company recorded total stock-based compensation of $1.778 million for the three months ended September 30, 2025, a decrease of 30.5% from $2.556 million in the same period of 2024[112] Future Outlook - The company anticipates additional losses and negative cash flows until it can generate significant sales from its product candidates currently in development[28] - The company does not expect to generate significant product revenue until successful development and regulatory approval of its product candidates, which may take several years[134] - The company estimates that existing cash and cash equivalents, short-term investments, and potential future proceeds from the exercise of all outstanding common stock warrants will fund operating expenses into 2029[188] Regulatory and Compliance - The company is classified as an emerging growth company and a smaller reporting company, allowing it to take advantage of reduced reporting requirements and exemptions from certain accounting standards[179][181] - The company has identified risks related to potential disruptions at the FDA, which could negatively impact the review of regulatory submissions and overall business operations[190] - The company regained compliance with Nasdaq Listing Rule 5450(a)(1) after meeting the minimum bid price requirement of $1.00 per share[135] Miscellaneous - The global macroeconomic environment remains uncertain, potentially impacting the company's future operations due to inflation and other economic factors[29] - The One Big Beautiful Bill Act (OBBBA) was enacted, with provisions effective in 2025 and 2027, but the immediate impact is not material[79] - The company has not reported any legal proceedings or defaults upon senior securities during the reporting period[186][197] - Shattuck Labs, Inc. filed its Quarterly Report on Form 10-Q on November 6, 2025[204]