ALX Oncology(ALXO) - 2023 Q1 - Quarterly Report

Financial Performance - Net loss for the first quarter of 2023 was $30,184,000, compared to a net loss of $24,533,000 in the same period of 2022, indicating an increase in losses of 22.9%[10] - The company reported a total comprehensive loss of $29,427,000 in Q1 2023, compared to a comprehensive loss of $25,139,000 in Q1 2022, indicating an increase of 17.5%[12] - Net loss for March 2023 was $30,184 thousand, compared to a net loss of $24,533 thousand in March 2022, representing a 22% increase in losses year-over-year[12] - The company reported a net loss of $30.184 million for the three months ended March 31, 2023, compared to a net loss of $24.533 million for the same period in 2022, representing a year-over-year increase of approximately 22%[53] - The basic and diluted net loss per share increased to $0.74 for the three months ended March 31, 2023, from $0.60 in the same period of 2022, reflecting a 23.3% increase[53] Revenue and Expenses - Research and development expenses increased significantly from $17,073,000 in 2022 to $24,763,000 in 2023, representing a growth of 45.1%[10] - The company reported total operating expenses of $32,203,000 for Q1 2023, up from $24,747,000 in Q1 2022, marking an increase of 30.1%[10] - Total operating expenses for March 2023 were $32,203 thousand, up from $24,747 thousand in March 2022, indicating a 30% increase[10] - Total stock-based compensation expenses for the three months ended March 31, 2023, amounted to $6,351 million, an increase from $5,501 million in the same period of 2022[47] Assets and Liabilities - Total current assets decreased from $270,969,000 in 2022 to $232,536,000 in 2023, a decline of approximately 14.2%[7] - Total liabilities decreased from $43,025,000 in 2022 to $37,750,000 in 2023, a reduction of approximately 12.1%[8] - Total stockholders' equity decreased from $263,464,000 in 2022 to $240,388,000 in 2023, a decline of approximately 8.8%[8] - Cash and cash equivalents increased from $48,822,000 in 2022 to $63,194,000 in 2023, reflecting a growth of 29.5%[7] - The company had total assets of $278.138 million as of March 31, 2023, down from $306.489 million as of December 31, 2022[7] Cash Flow - Cash used in operating activities for Q1 2023 was $27,816,000, compared to $20,674,000 in Q1 2022, representing an increase of 34.3%[15] - Cash, cash equivalents, and restricted cash at the end of March 2023 totaled $63,260 thousand, compared to $159,152 thousand at the end of March 2022, a decrease of 60%[15] - As of March 31, 2023, the company reported cash and cash equivalents of $59.3 million, an increase from $40.2 million as of December 31, 2022[24] Investments - The total fair value of cash equivalents and available-for-sale investments was $252.3 million as of March 31, 2023, down from $274.3 million as of December 31, 2022[24] - The company held $164.8 million in short-term investments, a decrease from $217.4 million as of December 31, 2022[24] - The company has classified its financial assets into three levels based on the fair value hierarchy, with money market funds and U.S. Treasury securities classified as Level 1[21] - The company’s investments include U.S. government agency securities and corporate debt securities, with fair values estimated using observable market data[21] Future Outlook - The company has not realized product revenues from its planned principal operations and expects to incur additional losses in the future for research and development[17] - Management anticipates raising additional capital through equity sales, debt financings, or strategic alliances, but there is no assurance of success in acquiring sufficient funding[17] - The company expects to incur additional losses in the future as it continues product candidate research and development[17] - The company has future purchase obligations of approximately $9.8 million under a Master Service Agreement with KBI Biopharma, which has been extended until November 2026[59] Legal and Compliance - The company has no pending or threatened litigation as of March 31, 2023, indicating a stable legal environment[57] - As of March 31, 2023, the Company was in compliance with all financial reporting covenants under the Loan Agreement[39] - The company has not recorded any liabilities for indemnification agreements as of March 31, 2023, believing their fair value to be minimal[56] Debt and Financing - The Company entered into a secured term loan facility of up to $100.0 million, with an initial draw of $10.0 million and access to an additional $40.0 million through the end of 2023[39] - Interest expense incurred related to the Loan Agreement was $0.3 million for the three months ended March 31, 2023, with no outstanding debt as of March 31, 2022[39] - As of March 31, 2023, the future maturities under the Loan Agreement total $10,600 thousand, with no current portion due[41]