Adicet Bio(ACET) - 2023 Q1 - Quarterly Report

Financial Performance - Revenue decreased by $25.0 million, or 100%, for the three months ended March 31, 2023, due to no revenue recognized under the Regeneron Agreement[119] - Net loss recorded was $30.9 million for the three months ended March 31, 2023, with an accumulated deficit of $269.0 million as of the same date[131] - General and administrative expenses decreased by $0.2 million, or 3%, during the three months ended March 31, 2023, mainly due to lower facility costs and stock-based compensation[121] - Total operating expenses increased by $13.0 million, or 64%, during the three months ended March 31, 2023, compared to the same period in 2022[118] - Interest income increased by $2.6 million, or 8,231%, during the three months ended March 31, 2023, attributed to higher interest rates[122] Research and Development - The ongoing Phase 1 study for the lead product candidate ADI-001 may enroll up to 80 late-stage NHL patients across multiple cancer centers in the U.S.[100] - The FDA granted Fast Track Designation for ADI-001 for NHL in April 2022, with interim results presented at the ASH annual meeting in December 2022[100] - The company plans to initiate a pivotal study for ADI-001 in post-CAR T large B-cell lymphoma patients in Q4 2023[100] - Research and development expenses consist primarily of employee-related costs, consultant agreements, lab materials, and facility-related costs[110] - Research and development expenses increased by $13.3 million, or 98%, during the three months ended March 31, 2023, primarily due to increases in CDMO expenses and payroll[120] Cash and Capital Management - Cash and cash equivalents as of March 31, 2023, were $231.6 million, expected to be sufficient for at least the next twelve months[125] - The company anticipates needing to raise substantial additional capital to fund operations and product development in the foreseeable future[133] - Net cash used in operating activities was $24.1 million for the three months ended March 31, 2023, with non-cash adjustments totaling $6.6 million[140] - Net cash used in investing activities was $1.9 million for the three months ended March 31, 2023, primarily related to the construction of the GMP cell processing suite[142] - Net cash used in financing activities was less than $0.1 million for the three months ended March 31, 2023, related to cash paid for taxes withheld on equity awards[143] Company Operations - The company has no products approved for commercial sale and does not expect to generate revenue from product sales for several years[107] - The company received a non-refundable upfront payment of $25.0 million from Regeneron and an additional $20.0 million for research funding as of March 31, 2023[107] - The company entered into a Capital On Demand™ Sales Agreement, resulting in net proceeds of $43.4 million from the sale of 2,611,723 shares at $17.23 per share[101] - The company increased its tenant improvement allowance by an additional $3.0 million for office and laboratory space buildout[103] - The company wired $187.2 million from its ICS accounts to Pacific Western Asset Management for investment in money market funds[104] Lease Agreements - The initial annual base rent for the Boston Lease was $0.6 million, increasing 2% annually, with an expiration date of July 31, 2026[144] - The initial annual base rent for the Redwood City Lease is $1.3 million, increasing 3% annually, with an expiration date of February 28, 2030[145] Economic Factors - The company does not believe that foreign currency exchange rate fluctuations have had a significant impact on its results of operations for any periods presented[154] - The company does not believe that inflation had a material effect on its business, financial condition, or results of operations during the three months ended March 31, 2023[155] Company Status - The company remains an emerging growth company and smaller reporting company, with annual revenue less than $100 million and market value of stock held by non-affiliates less than $700 million[151] - The company has elected to use the extended transition period for new or revised accounting standards while remaining an emerging growth company[150]