Eledon Pharmaceuticals(US:ELDN)2022-11-13 16:00Financial Performance - Net loss for the nine months ended September 30, 2022, was $29,582,000, compared to a net loss of $25,700,000 for the same period in 2021, indicating an increase in loss of approximately 15.1%[23] - The company reported a net loss of $29.6 million for the nine months ended September 30, 2022, compared to a net loss of $25.7 million for the same period in 2021, representing a 11.4% increase in losses[27] - For the three months ended September 30, 2022, the company reported a net loss of $10.471 million, compared to a net loss of $9.817 million for the same period in 2021[23] - Basic net loss per share for the nine months ended September 30, 2022, was $2.07, compared to $1.73 for the same period in 2021, indicating a 19.7% increase in loss per share[55] - Basic and diluted net loss per share was $(0.73) for the three months ended September 30, 2022, compared to $(0.66) for the same period in 2021, indicating a worsening of approximately 10.6%[55] Assets and Liabilities - Total current assets decreased from $88,346,000 as of December 31, 2021, to $67,565,000 as of September 30, 2022, a decline of approximately 23.5%[21] - Cash and cash equivalents decreased from $84,833,000 as of December 31, 2021, to $65,889,000 as of September 30, 2022, a reduction of about 22.4%[21] - Total liabilities increased from $6,553,000 as of December 31, 2021, to $8,493,000 as of September 30, 2022, an increase of approximately 29.6%[21] - The accumulated deficit increased from $114,899,000 as of December 31, 2021, to $144,481,000 as of September 30, 2022, reflecting a rise of about 26.0%[21] - Total stockholders' equity decreased from $163,995,000 as of December 31, 2021, to $141,093,000 as of September 30, 2022, a decline of about 13.2%[21] - As of September 30, 2022, total assets were $149.586 million, down from $170.548 million as of December 31, 2021[21] Operating Expenses - Operating expenses for the three months ended September 30, 2022, were $10,598,000, compared to $10,506,000 for the same period in 2021, representing an increase of 0.9%[23] - Total operating expenses for the nine months ended September 30, 2022, were $29.740 million, compared to $27.482 million for the same period in 2021[23] - General and administrative expenses for the three months ended September 30, 2022, were $3,146,000, compared to $2,848,000 for the same period in 2021, an increase of approximately 10.5%[23] - Research and development expenses for the nine months ended September 30, 2022, were $19,830,000, compared to $17,553,000 for the same period in 2021, an increase of approximately 12.9%[23] - Stock-based compensation for the nine months ended September 30, 2022, was $6.7 million, an increase from $5.9 million in the same period of 2021[27] Future Outlook and Funding - The company expects to continue incurring net losses in the foreseeable future due to ongoing research and development activities[39] - The company will need to raise additional funds through public or private debt and equity financings to support its ongoing activities[39] - The company is obligated to pay ALS TDI a total of $6.0 million in remaining milestone payments for a first licensed product, with additional payments of up to $2.5 million for a second licensed product[78] - The Company has not recorded any liabilities related to grants received as it has not yet generated sales from the associated R&D programs[82] Research and Development - Research and development expenses are a significant part of the company's operations, with costs incurred as they arise, reflecting ongoing investment in product development[50] - The lead compound in development is tegoprubart, an anti-CD40L antibody, which is aimed at treating autoimmune diseases and other conditions[31] - Eledon Pharmaceuticals acquired Anelixis Therapeutics, Inc. in September 2020, enhancing its product development capabilities in the biopharmaceutical sector[32] - Research and development expenses include costs related to clinical trials, which are expensed as incurred, with no material adjustments to prior-period accrued estimates reported[50][51] Cash Flow and Investments - The company experienced a net cash used in operating activities of $18.9 million for the nine months ended September 30, 2022[27] - Cash and cash equivalents at the end of the period were $65.9 million, down from $94.0 million at the end of September 30, 2021, indicating a decrease of 29.8% year-over-year[27] - The Company received approximately $0.5 million in grants from the Israeli Innovation Authority for R&D investments, with repayment contingent on future sales[82] - The Company has not recorded any amounts associated with indemnifications to date, but may incur charges in the future[87] Lease Obligations - The Company has an operating lease liability of $839,000 as of September 30, 2022, with future minimum lease payments totaling $864,000[74] - The Company’s operating lease cost for the nine months ended September 30, 2022, was $0.3 million, compared to $0.2 million for the same period in 2021[65] - The remaining lease term for operating leases increased from 1.25 years in 2021 to 2.20 years in 2022[74] - Total minimum lease payments for 2023 are projected to be $378,000, with total minimum lease payments for 2024 at $389,000, leading to a total of $864,000[74]