Senti Biosciences(US:SNTI)2025-11-13 22:09Financial Performance - For the three months ended September 30, 2025, the company incurred a net loss of $18.1 million, compared to a net loss of $28.9 million for the same period in 2024, representing a 37.5% decrease in losses year-over-year[129]. - For the nine months ended September 30, 2025, the company reported net losses of $47.0 million, down from $52.2 million in the same period of 2024, indicating a 10.0% reduction in losses[129]. - The net loss for Q3 2025 was $18.1 million, a decrease of $10.7 million from a net loss of $28.9 million in Q3 2024[169]. - Net loss decreased to $46.97 million in 2025 from $52.18 million in 2024, showing an improvement of $5.21 million[185]. Cash and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $12.2 million, a decrease from $48.3 million as of December 31, 2024[129]. - Cash and cash equivalents as of September 30, 2025, were $12.2 million, with an accumulated deficit of $344.1 million[185]. - Net cash used in operating activities was $36.57 million for the nine months ended September 30, 2025, compared to $27.89 million in 2024[194]. - The company anticipates needing substantial additional funding to support ongoing operations and development strategies[186]. Research and Development - The company initiated a clinical trial of SENTI-202 for blood cancers in 2024, with topline data expected before the end of 2025[128][146]. - The FDA granted Orphan Drug Designation to SENTI-202 for the treatment of relapsed/refractory hematologic malignancies, including acute myeloid leukemia[145]. - The company is evaluating next steps for SENTI-301A/SN301A after enrollment was stopped due to dose limiting toxicities observed in the trial[148]. - The company anticipates a substantial increase in expenses and operating losses driven by ongoing clinical and preclinical development activities[130]. - Research and development expenses for Q3 2025 were $10.5 million, an increase of $1.8 million from $8.7 million in Q3 2024, primarily due to higher external services and supplies costs[169]. - Research and development expenses increased to $29.8 million for the nine months ended September 30, 2025, up from $26.6 million in 2024, reflecting a $3.2 million increase primarily due to higher external services and supplies costs[177]. - The company anticipates an increase in research and development expenses and manufacturing costs in connection with planned preclinical and clinical development activities[155]. Operating Expenses - General and administrative expenses for Q3 2025 were $6.4 million, a slight decrease from $6.6 million in Q3 2024, mainly due to reduced external services and supplies costs[170]. - The total operating expenses for Q3 2025 were $16.9 million, compared to $15.2 million in Q3 2024, reflecting an increase of $1.7 million[169]. - General and administrative expenses rose to $20.3 million in 2025 from $18.3 million in 2024, an increase of $2.0 million mainly due to higher personnel-related expenses[178]. Income and Other Financial Metrics - Interest income remained stable at $0.2 million for both Q3 2025 and Q3 2024[171]. - Interest income increased to $0.8 million for the nine months ended September 30, 2025, compared to $0.7 million in 2024, attributed to higher average cash balances[179]. - GeneFab sublease income decreased by $3.2 million in Q3 2025 due to a $3.3 million reversal of previously recognized sublease income[172]. - Other income increased by $0.2 million in Q3 2025, attributed to new sublease agreements that began in October 2024[173]. Shareholder and Financing Activities - The company sold 244,960 shares of common stock under the 2025 ATM Agreement at a weighted average price of $2.82 per share, resulting in gross proceeds of $0.7 million[143]. - The company raised aggregate gross proceeds of $356.9 million from various financing activities since inception, including a merger in 2022 and issuance of common stock[187]. Contractual Obligations and Compliance - As of September 30, 2025, the company is in default on its Alameda lease for nonpayment of rent amounting to approximately $0.4 million[206]. - The company has not reported any material changes in contractual obligations since December 31, 2024[207]. - There are currently no off-balance sheet arrangements as defined by SEC regulations[208]. - No material changes have occurred in critical accounting policies and estimates for the nine months ended September 30, 2025[209]. Company Status and Classification - The company remains classified as an "emerging growth company" and has opted not to take advantage of the extended transition period for new accounting standards[210]. - The company expects to maintain its emerging growth status until it achieves total annual revenue of at least $1.235 billion or meets other specified criteria[211]. - The company operates as a single segment focused on the research and development of its gene circuit platform, with no current revenue generation[215]. - The company qualifies as a "smaller reporting company," allowing it to provide reduced disclosure obligations[214].