ALX Oncology(ALXO) - 2022 Q3 - Quarterly Report

Financial Performance - The net loss for the nine months ended September 30, 2022, was $92,773,000, compared to a net loss of $55,025,000 for the same period in 2021, reflecting a 68.8% increase in losses[12]. - The net loss for the three months ended September 30, 2022, was $35.3 million, compared to a net loss of $24.6 million for the same period in 2021, reflecting a 43.5% increase in losses[45]. - The company reported a net loss per share of $0.87 for the three months ended September 30, 2022, compared to $0.61 for the same period in 2021, marking a 42.6% increase in loss per share[12]. - The accumulated deficit increased to $294,758,000 as of September 30, 2022, compared to $201,985,000 as of December 31, 2021[10]. Assets and Liabilities - Total current assets decreased from $367,019,000 as of December 31, 2021, to $290,808,000 as of September 30, 2022, representing a decline of approximately 20.8%[9]. - Total liabilities increased from $17,134,000 as of December 31, 2021, to $30,726,000 as of September 30, 2022, indicating an increase of approximately 79.5%[10]. - Total stockholders' equity decreased from $363,049,000 as of December 31, 2021, to $286,963,000 as of September 30, 2022, representing a decrease of about 21%[10]. - Cash and cash equivalents decreased significantly from $363,667,000 as of December 31, 2021, to $49,054,000 as of September 30, 2022, a decline of approximately 86.5%[9]. Research and Development - Research and development expenses for the three months ended September 30, 2022, were $29,382,000, an increase of 61.1% compared to $18,214,000 for the same period in 2021[12]. - Research and development expenses for the nine months ended September 30, 2022, were $73,203,000, up 86.5% from $39,276,000 for the same period in 2021[12]. - The company recorded $2.5 million and $6.2 million as R&D costs related to the Tallac Collaboration Agreement for the three and nine months ended September 30, 2022, respectively, compared to $0.8 million and $1.4 million for the same periods in 2021[44]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2022, was $68.555 million, up from $50.613 million in the prior year, indicating a 35.4% increase[18]. - The company reported a net cash used in investing activities of $246.358 million for the nine months ended September 30, 2022, compared to $405,000 in the same period of 2021[18]. - Cash, cash equivalents, and restricted cash at the end of the period were $49.120 million, down from $385.149 million at the beginning of the year, reflecting a decrease of 87.3%[18]. Future Outlook - The company expects to incur additional losses in the future as it continues product candidate research and development, indicating a need for further capital raising[20]. - The company intends to raise additional capital through equity sales, debt financings, or strategic alliances, but there is no assurance of success in acquiring sufficient funding[20]. - The company has future purchase obligations of approximately $42.0 million under a master service agreement as of September 30, 2022[49]. Stock and Equity - The company has 40,748,290 shares of common stock outstanding as of September 30, 2022, compared to 40,587,067 shares as of December 31, 2021[38]. - The weighted-average shares of common stock outstanding for the three months ended September 30, 2022, were 40,747,026, compared to 40,396,188 for the same period in 2021[45]. - The company has recognized stock-based compensation of $17.544 million for the nine months ended September 30, 2022, compared to $8.228 million in the prior year[18]. Operating Expenses - The company incurred total operating expenses of $36,681,000 for the three months ended September 30, 2022, compared to $24,576,000 for the same period in 2021, an increase of 49.2%[12]. - General and administrative expenses for the nine months ended September 30, 2022, were $9.8 million, up from $5.4 million in the same period of 2021, reflecting an increase of 81.5%[41]. Investments - The total fair value of cash equivalents and available-for-sale investments was $283.344 million as of September 30, 2022, down from $357.181 million at the end of 2021[26]. - The company reported an unrealized loss on available-for-sale investments of $248,000 for the three months ended September 30, 2022[14]. - Total investments maturing in one year or less decreased from $357.2 million to $275.1 million during the same period[28].