ALX Oncology(ALXO) - 2021 Q2 - Quarterly Report

Financial Performance - The net losses for the three months ended June 30, 2021, and 2020 were $16.3 million and $11.3 million, respectively, while for the six months ended June 30, 2021, and 2020, the losses were $30.5 million and $16.8 million, respectively [90]. - The accumulated deficit as of June 30, 2021, was $149.0 million, up from $118.5 million as of December 31, 2020 [90]. - Net loss attributable to common stockholders for the three months ended June 30, 2021 was $16.3 million, representing a 16% increase from a net loss of $13.97 million in the same period of 2020 [105]. - The company has an accumulated deficit of $149.0 million as of June 30, 2021, indicating significant operating losses since inception [118]. Research and Development - The company has dosed over 170 subjects with its lead product candidate evorpacept across various hematologic and solid malignancies as of June 30, 2021 [87]. - Research and development expenses are expected to increase substantially as the company advances evorpacept through multiple clinical trials and seeks regulatory approval [92]. - The company has incurred significant expenses related to research and development, primarily for evorpacept, which includes costs for clinical trials and manufacturing [96]. - Research and development expenses for the three months ended June 30, 2021 were $11.2 million, an increase of 46% compared to $7.7 million for the same period in 2020 [108]. - Research and development expenses for the six months ended June 30, 2021 were $21.1 million, a 79% increase from $11.5 million in the same period of 2020 [109]. Operating Expenses - Total operating expenses for the three months ended June 30, 2021 were $16.3 million, a 44% increase from $11.3 million in the same period of 2020 [105]. - General and administrative expenses for the three months ended June 30, 2021 were $5.1 million, a 60% increase from $3.2 million in the same period of 2020 [111]. - General and administrative expenses are anticipated to rise due to increased headcount and expanded infrastructure as the company continues to operate as a public entity [99]. Funding and Liquidity - The company raised an aggregate of $545.3 million from inception through June 30, 2021, including $169.5 million from its initial public offering and $194.9 million from a follow-on public offering [89]. - Cash and cash equivalents as of June 30, 2021 were $410.0 million, providing liquidity for ongoing operations [115]. - The company expects to finance operations through equity offerings, debt financings, collaborations, and licensing arrangements, with no committed external funds currently available [119]. - In July 2020, the company completed an IPO, issuing 9,775,000 shares at $19.00 per share, resulting in net proceeds of approximately $169.5 million after expenses [120]. - In December 2020, the company completed a follow-on offering, issuing 2,737,000 shares at $76.00 per share, generating net proceeds of approximately $194.9 million [121]. Risks and Uncertainties - The successful development of product candidates is uncertain and subject to various risks, including regulatory approvals and clinical trial outcomes [97]. - The company expects to incur additional costs associated with operating as a public company and advancing clinical trials for its product candidates [118]. Other Financial Information - Related-party revenue for the three and six months ended June 30, 2021 was zero due to the termination of the Tollnine Agreement as of July 1, 2020 [106]. - The company recognized a $0.6 million loss on early debt extinguishment related to the repayment of a term loan in December 2020 [116]. - For the six months ended June 30, 2021, cash used in operating activities was $25.8 million, attributed to a net loss of $30.5 million [124]. - Cash provided by financing activities for the six months ended June 30, 2021, was $1.5 million, primarily from the exercise of common stock options [126]. - As of June 30, 2021, the company had cash and cash equivalents of $410.0 million, with minimal exposure to interest rate risk [134]. - The company has contractual obligations totaling $10.7 million, including operating lease obligations of $2.3 million and manufacturing contracts of $7.5 million [129]. - The company had $409.7 million in cash exceeding the FDIC insurance limit of $250,000, indicating minimal credit risk [135]. - Foreign currency transaction gains or losses have not been material, with expenses primarily in U.S. dollars [136].