LAVA Therapeutics(LVTX) - 2025 Q3 - Quarterly Report

Revenue and Financial Performance - The company has not generated any revenues from product sales to date and does not expect to in the future[100] - Total revenue for the nine months ended September 30, 2025, was $0, a decrease of $6.99 million compared to $6.99 million in the same period of 2024[127] - The company reported a net loss of $19.3 million for the nine months ended September 30, 2025, compared to a net loss of $21.2 million for the same period in 2024[142] - The net loss before taxes for the three months ended September 30, 2025, was $7.2 million, a reduction of $5.1 million compared to a net loss of $12.2 million in the same period of 2024[120] Expenses - Research and development expenses are primarily incurred for clinical trial activities and are expensed as incurred[111] - Research and development expenses for the three months ended September 30, 2025, were $2.2 million, down 73% from $8.3 million in the same period of 2024[122] - Research and development expenses for the nine months ended September 30, 2025, were $11.1 million, a decrease of 44% from $19.9 million in the same period of 2024[130] - General and administrative expenses include costs for operational activities such as accounting and legal services[113] - General and administrative expenses for the three months ended September 30, 2025, increased to $5.3 million, up 73% from $3.1 million in the same period of 2024[123] - General and administrative expenses for the nine months ended September 30, 2025, were $11.3 million, an increase of 14% from $9.9 million in the same period of 2024[131] - Professional and consultant fees for the nine months ended September 30, 2025, increased by $3.6 million to $6.0 million, primarily due to legal and professional fees associated with the XOMA Transaction[131] Cash Flow and Liquidity - Cash and cash equivalents totaled $49.7 million as of September 30, 2025, which is expected to be sufficient to fund planned expenditures for at least the next twelve months[140] - Net cash used in operating activities was $(30.3) million for the nine months ended September 30, 2025, compared to $(19.1) million for the same period in 2024, reflecting an increase in cash outflow of $(11.2) million[141] - Net cash provided by investing activities was $40.4 million for the nine months ended September 30, 2025, significantly higher than $1.5 million in the same period of 2024, driven by $40.1 million from maturities of investments[146] - The company experienced a net increase in cash and cash equivalents of $10.1 million for the nine months ended September 30, 2025, compared to a net decrease of $(17.5) million in the same period of 2024, reflecting a positive cash flow change of $27.6 million[141] Agreements and Collaborations - A share purchase agreement with XOMA Royalty Corporation was entered into, offering $1.04 per share plus a contingent value right[92] - The minimum closing net cash condition for the XOMA transaction was reduced from $31.5 million to $24.5 million[92] - The company received a $50 million nonrefundable upfront payment from Pfizer in October 2022 as part of a collaboration agreement[101] - Pfizer is expected to pay up to approximately $650 million upon achieving development, regulatory, and commercial milestones[101] - Under the Pfizer Agreement, the company received a nonrefundable up-front payment of $50.0 million in October 2022 and a clinical milestone payment of $7.0 million in March 2024[137] - The company anticipates no additional reimbursement for agreed-to services under the Pfizer Agreement at this time[137] Restructuring and Trials - A restructuring plan was adopted in February 2025, resulting in a workforce reduction of approximately 30%[96] - The company incurred $0.3 million in costs related to the discontinuation of the Phase 1 trial of LAVA-1266[95] Other Income and Losses - Gain on extinguishment of borrowings recognized in the nine months ended September 30, 2025, was $5.2 million, contributing to total other income of $3.4 million[126] - Other income (expense), net increased to $3.4 million for the nine months ended September 30, 2025, up from $1.8 million in the same period of 2024, primarily due to a $5.2 million gain on extinguishment of borrowings[134] - Foreign currency exchange loss for the nine months ended September 30, 2025, was $3.5 million, an increase of $2.8 million compared to a loss of $0.7 million in the same period of 2024[126] Taxation - Income tax expense for the three months ended September 30, 2025, was $0.1 million, consistent with the same period in 2024[117] Contractual Obligations - There were no material changes to the company's contractual obligations and commitments during the three and nine months ended September 30, 2025, compared to the previous year[139]