Alpine Immune Sciences(ALPN) - 2021 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $10.6 million for the three months ended March 31, 2021, compared to a net loss of $5.5 million for the same period in 2020[62]. - The net loss for the three months ended March 31, 2021, was $10.6 million, compared to a net loss of $5.5 million for the same period in 2020, indicating an increase in losses of 92%[78]. - Collaboration revenue for the three months ended March 31, 2021, was $3.2 million, up from $1.1 million in the same period in 2020, reflecting a 194% increase[80]. - Research and development expenses increased to $10.4 million for the three months ended March 31, 2021, compared to $4.9 million for the same period in 2020, representing a 112% increase[69]. - Total operating expenses rose to $13.7 million for the three months ended March 31, 2021, compared to $6.7 million for the same period in 2020, marking a 106% increase[78]. Cash and Investments - As of March 31, 2021, the company had cash, cash equivalents, restricted cash, and investments totaling $115.4 million[62]. - The company raised an aggregate of $242.4 million to fund operations, including $79.9 million from the sale of common stock and $69.2 million from license and collaboration agreements[86]. - Net cash used in operating activities was $16.0 million for the three months ended March 31, 2021, compared to $9.7 million for the same period in 2020[94]. - Net cash used in investing activities was $6.5 million for the three months ended March 31, 2021, compared to a net cash provided of $13.1 million for the same period in 2020[96]. - Net cash provided by financing activities was $0.2 million for the three months ended March 31, 2021, compared to $5.0 million for the same period in 2020[97]. Agreements and Collaborations - The company recognized revenue of $3.2 million from the AbbVie Agreement for the three months ended March 31, 2021, with a remaining balance of $49.8 million recorded as deferred revenue[65]. - The AbbVie Agreement includes a nonrefundable upfront payment of $60 million and potential milestone payments totaling up to $205 million, plus royalties on worldwide net sales[64]. - The Adaptimmune Agreement has the potential for additional research support payments and milestones totaling up to $288 million[66]. - The company aims to maximize the value of its pipeline through potential partnering activities and collaborations[61]. Research and Development - The company plans to initiate a Phase 2 study for ALPN-101 in systemic lupus erythematosus (SLE) and a Phase 1 study for ALPN-303 in B cell-mediated autoimmune diseases[61]. - The lead oncology program, ALPN-202, has shown superior efficacy in preclinical models compared to approved therapies and is currently in a Phase 1 study[61]. - The company expects to incur significant expenses and operating losses for several years as it continues clinical trials and research and development efforts[62]. - The company expects to continue incurring significant expenses and operating losses as it develops product candidates and seeks regulatory approvals[86]. Expenses and Liabilities - General and administrative expenses increased to $3.3 million for the three months ended March 31, 2021, from $1.8 million in the same period in 2020, a 83% increase[82]. - Interest expense increased by $0.1 million due to additional interest related to the drawdown of the second tranche of the term loan with Silicon Valley Bank[83]. - Interest income decreased by $0.1 million primarily due to less interest earned on investments[84]. - The company borrowed $5.0 million under the Original Agreement with SVB, which had an interest-only period until July 2018[89]. - An Amended and Restated Loan Agreement was entered into in August 2019, allowing for term loans up to $15.0 million, with the first tranche of $5.0 million funded in August 2019[89]. - As of March 31, 2021, the company had $10.6 million in outstanding principal and final fees due under the term loan agreement[90]. - There is a potential loss of up to approximately $1.8 million related to research and development credits subject to review by foreign tax authorities[92]. - The company is in compliance with its loan covenants as of March 31, 2021[90]. Lease Obligations - The annual base rent for the office and laboratory lease is $1.7 million for the first year, increasing by 3.0% each subsequent year[91]. - The company received a tenant improvement allowance of $5.4 million, which is included in the base rent[91].