Arcturus Therapeutics(US:ARCT)2025-11-12 11:25Financial Performance - Total revenue for Q3 2025 was $17.151 million, a decrease of 58.8% compared to $41.673 million in Q3 2024[16] - Collaboration revenue for the nine months ended September 30, 2025, was $64.140 million, down 45.4% from $117.389 million in the same period of 2024[16] - Net loss for Q3 2025 was $13.448 million, compared to a net loss of $6.903 million in Q3 2024, representing a 94.0% increase in losses year-over-year[16] - Total collaboration revenue for the three months ended September 30, 2025, was $14.2 million, a decrease of 63.5% compared to $38.8 million for the same period in 2024[35] - Total grant revenue for the nine months ended September 30, 2025, was $10.7 million, compared to $12.2 million for the same period in 2024, reflecting a decrease of 12.3%[35] - For the three months ended September 30, 2025, revenues were $17,151,000, a decrease from $41,673,000 in the same period of 2024, representing a decline of approximately 59%[81] - For the nine months ended September 30, 2025, total revenues were $74,835,000, down from $129,544,000 in 2024, indicating a decrease of about 42%[81] Cash and Assets - Cash and cash equivalents decreased to $180.360 million as of September 30, 2025, down 24.0% from $237.028 million at December 31, 2024[14] - Total assets decreased to $282.343 million as of September 30, 2025, down 17.9% from $344.069 million at December 31, 2024[14] - Total stockholders' equity as of September 30, 2025, was $224.559 million, a decrease of 6.8% from $240.978 million at December 31, 2024[14] - The company’s total current liabilities decreased to $31.699 million as of September 30, 2025, down 51.7% from $65.489 million at December 31, 2024[14] - Remaining available funding under the BARDA Contract as of September 30, 2025, was $30.3 million[48] - As of September 30, 2025, the company's cash and cash equivalents, including restricted cash, totaled $237.2 million[137] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $87.736 million, a decrease of 42.1% from $151.376 million in the same period of 2024[16] - Total research and development expenses for the three months ended September 30, 2025, were $23,265,000, compared to $39,134,000 in 2024, reflecting a reduction of approximately 40%[81] - Total research and development expenses for the nine months ended September 30, 2025, were $87.7 million, down 42% from $151.4 million in the same period in 2024[126] - Research and development expenses decreased to $87.7 million for the nine months ended September 30, 2025, from $151.4 million in the same period of 2024, primarily due to lower costs associated with the LUNAR-COVID program transitioning to commercial phase[129] Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $33.7 million, down 36% from $52.4 million in the same period in 2024[125] - General and administrative expenses were $10.4 million for the three months ended September 30, 2025, down from $13.3 million in 2024, and $32.1 million for the nine months ended September 30, 2025, compared to $40.4 million in 2024, mainly due to reduced share-based compensation and headcount[134] - Share-based compensation expense for the three months ended September 30, 2025, was $5.7 million, down from $9.5 million for the same period in 2024, a decrease of approximately 40%[67] Collaborations and Partnerships - The Company received a $200 million upfront payment under the CSL Collaboration Agreement and is eligible for over $1.3 billion in development milestones[38] - The Company recognized $4.1 million in revenue related to the CSL Collaboration Agreement during the third quarter of 2025[38] - The company is collaborating with CSL Seqirus on the development of mRNA vaccines for COVID-19, influenza, and other infectious diseases[91] - The company has achieved approximately $513.8 million in total upfront payments and milestones from CSL Seqirus, including $4.1 million in the current quarter[137] Legal and Regulatory Matters - The company is involved in legal proceedings, including a lawsuit for trade secret misappropriation against AbbVie Inc. and Capstan Therapeutics, with a response deadline set for December 1, 2025[176] - A prolonged U.S. federal government shutdown could adversely affect the company's business operations and financial condition[175] - Reports indicate that CSL Limited may separate CSL Seqirus, which could disrupt the company's collaboration and adversely affect its business[177] Internal Controls and Governance - There is a material weakness in internal control over financial reporting as of September 30, 2025, related to information technology general controls[165] - Remediation efforts for the identified material weakness are ongoing, with expectations to complete activities in fiscal year 2025[169] - Management has implemented enhanced internal control procedures to address the material weakness identified[168] Future Outlook - The company anticipates continued losses and will require additional capital to fund operations and support long-term plans[157] - The company expects to continue incurring additional losses in the long term and will need to execute on milestones within the CSL Collaboration Agreement to transition to profitability[151] - Future guidance indicates projected revenue growth of 30% for the next fiscal year, aiming for $65 million[186] Miscellaneous - The company has a revolving credit line of $50 million with Wells Fargo, with no amounts drawn down during the three months ended September 30, 2025[62] - The company has not adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended September 30, 2025[182] - The company has 1,586,213 shares available for future issuance under the 2019 Omnibus Equity Incentive Plan as of September 30, 2025[65] - The company has initiated a merger discussion with a complementary biotech firm to enhance its product pipeline[192]