Metagenomi(US:MGX)2025-11-12 13:42Financial Performance - Collaboration revenue for Q3 2025 was $8.7 million, down 24.8% from $11.5 million in Q3 2024, and for the nine months ended September 30, 2025, it was $21.3 million, a decrease of 50.1% from $42.7 million in the same period of 2024[123] - Total operating expenses for Q3 2025 were $31.5 million, a decrease of 7.1% from $33.9 million in Q3 2024, and for the nine months ended September 30, 2025, total operating expenses were $92.9 million, down 16.3% from $111.0 million in the same period of 2024[130] - The net loss for Q3 2025 was $20.4 million, compared to a net loss of $18.8 million in Q3 2024, representing an increase of 8.8%[130] Research and Development - Research and development expenses for Q3 2025 were $25.3 million, a slight decrease of 3.7% from $26.3 million in Q3 2024, and for the nine months ended September 30, 2025, they totaled $72.9 million, down 15.2% from $86.0 million in the same period of 2024[130] - The company plans to advance MGX-001 into clinical development, with pre-IND regulatory meetings expected by the end of 2025 and clinical trials to begin in 2027[110] - The company is exploring opportunities in neuromuscular and liver disease targets, as well as partnerships for cell therapy applications[114] - The company has a collaboration with Ionis Pharmaceuticals to develop investigational medicines, with plans to nominate a development candidate from this collaboration in 2025[112] - The company has demonstrated over 90% editing efficiency with its novel Adenine Base Editors across seven genomic targets in primary T-cells, indicating strong potential for its technology platform[116] Cash Flow and Funding - As of September 30, 2025, the company had $184.1 million in cash, cash equivalents, and available-for-sale marketable securities, which is expected to fund projected operating expenses for at least the next 12 months[144] - Net cash used in operating activities for the nine months ended September 30, 2025, was $65.3 million, consisting primarily of the net loss of $65.3 million and changes in net operating assets and liabilities[147] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $71.2 million, primarily due to net maturities of available-for-sale marketable securities[150] - The company expects to require additional funding to support ongoing research and development activities and to commercialize future product candidates[145] - Net cash used in financing activities for the nine months ended September 30, 2025, was $0.4 million primarily due to a payment of deferred financing costs[151] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $84.0 million due to net proceeds from the issuance of common stock in the IPO, net of issuance costs paid during the period[151] Accounting and Estimates - There were no material changes to the company's critical accounting estimates or methodology used for estimates during the nine months ended September 30, 2025[156] - The preparation of financial statements requires the company to make estimates and assumptions affecting reported amounts of assets and liabilities[154] - The company evaluates estimates related to revenue recognition, stock-based compensation expense, and the valuation of deferred tax assets[155] - Actual results may differ from estimates under different assumptions or conditions, which could impact financial reporting[155] - There were no material changes outside the ordinary course of business to the company's cash requirements during the nine months ended September 30, 2025[152] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[157] - Recently issued accounting pronouncements that may impact financial position and results of operations are disclosed in the quarterly report[153] Share Issuance and Agreements - The company completed its initial public offering on February 13, 2024, issuing 6,250,000 shares at $15.00 per share, resulting in net proceeds of approximately $80.7 million[117] - The company has entered into an Open Market Sale Agreement with Jefferies LLC to issue shares with an aggregate offering price of up to $75.0 million, with no shares sold under this agreement as of September 30, 2025[118] - Collaboration revenue decreased by $2.9 million to $8.7 million for the three months ended September 30, 2025, compared to the prior year, primarily due to a $1.5 million decrease from the Affini-T Agreement and a $1.4 million decrease from the Ionis Agreement[131] - For the nine months ended September 30, 2025, collaboration revenue decreased by $21.4 million to $21.3 million, mainly due to an $18.7 million decrease from the Moderna Agreement and a $2.3 million decrease from the Affini-T Agreement[132] - Research and development expenses decreased by $1.0 million to $25.3 million for the three months ended September 30, 2025, primarily due to a $1.6 million decrease in employee-related expenses[133] - For the nine months ended September 30, 2025, research and development expenses decreased by $13.1 million to $72.9 million, primarily due to a $5.1 million decrease in employee-related expenses and a $3.9 million decrease in research supplies and services[134] - General and administrative expenses decreased by $1.4 million to $X million for the three months ended September 30, 2025, primarily due to a $0.6 million decrease in professional services and consulting costs[135] - Total other income (expense), net increased by $0.7 million for the three months ended September 30, 2025, primarily due to a higher loss from the change in fair value of long-term investments in the prior year[137]