sensei(US:SNSE)2025-11-14 12:45Company Strategy and Operations - The company announced the discontinuation of its lead product candidate, solnerstotug, and is exploring strategic alternatives, including asset sales and potential mergers[86]. - The company has discontinued the development of solnerstotug and is exploring strategic alternatives, which may include asset sales or a merger[115]. - A workforce reduction of approximately 65% was implemented to preserve cash, with expected aggregate cash charges of about $1.6 million related to severance and termination expenses[87]. - The company expects to continue incurring net losses and negative cash flows for the foreseeable future, with a decrease in research and development and general administrative expenses anticipated[92]. Financial Performance - The company has incurred significant operating losses, reporting a net loss of $16.4 million for the nine months ended September 30, 2025, compared to a net loss of $22.4 million for the same period in 2024[91]. - The net loss for the nine months ended September 30, 2025, was $16.4 million, an improvement of $6.0 million compared to a net loss of $22.4 million for the same period in 2024[110]. - As of September 30, 2025, the company had an accumulated deficit of $278.4 million[91]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $25.0 million, with an accumulated deficit of $278.4 million[114]. - Net cash used in operating activities was $16.6 million for the nine months ended September 30, 2025, compared to $18.9 million in 2024[117]. Expenses - Research and development expenses decreased to $2.5 million for the three months ended September 30, 2025, down from $4.6 million in the same period in 2024, reflecting a reduction of $2.1 million[107]. - General and administrative expenses were $2.3 million for the three months ended September 30, 2025, compared to $3.2 million for the same period in 2024, a decrease of $0.9 million[108]. - For the nine months ended September 30, 2025, total operating expenses were $17.3 million, a decrease of $7.0 million compared to $24.3 million in 2024, driven by reductions in research and development and general administrative expenses[110]. - Research and development expenses were $8.8 million for the nine months ended September 30, 2025, down from $14.1 million in 2024, reflecting a decrease of $5.3 million primarily due to lower personnel costs and lab supply purchases[111]. - General and administrative expenses decreased to $8.5 million for the nine months ended September 30, 2025, from $10.2 million in 2024, a reduction of $1.7 million mainly due to lower personnel costs[112]. Going Concern and Financial Outlook - There is substantial doubt about the company's ability to continue as a going concern, as it will not have sufficient cash to fund operations beyond one year from the report date[93]. - The company expects that existing cash and cash equivalents will be insufficient to fund operations beyond one year from the issuance of the financial statements, raising substantial doubt about its ability to continue as a going concern[129]. - The company has not recorded any income tax benefits for net losses incurred, as it believes it is unlikely to realize net operating loss carryforwards[105]. Other Income - Other income decreased to $0.3 million for the three months ended September 30, 2025, down from $0.6 million for the same period in 2024, primarily due to a decrease in interest income[109]. Reporting Classification - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures[141].