Aprea Therapeutics(APRE) - 2023 Q1 - Quarterly Report

Financial Performance - Aprea Therapeutics has not generated any revenue from product sales and does not expect to do so in the near future[84]. - The net loss for Q1 2023 was $4.4 million, an improvement from a net loss of $7.9 million in Q1 2022, representing a reduction of $3.6 million[115]. - General and administrative expenses for Q1 2023 were approximately $3.4 million, a decrease of $0.6 million compared to $4.0 million in Q1 2022[113]. - Research and development expenses for Q1 2023 were approximately $1.3 million, down from approximately $4.1 million in Q1 2022, reflecting a decrease of $2.8 million[109]. - The total operating expenses for Q1 2023 were $4.6 million, down from $8.1 million in Q1 2022, a decrease of $3.5 million[108]. - Net cash used in operating activities was $3.0 million for the three months ended March 31, 2023, a decrease of $2.5 million compared to $5.5 million for the same period in 2022[118]. - Net cash provided by financing activities was $5.1 million for the three months ended March 31, 2023, primarily from the sale of 1,050,000 shares of common stock[119]. - The accumulated deficit as of March 31, 2023, was $298.2 million, primarily due to research and development costs and general administrative expenses[115]. - As of March 31, 2023, the company had cash and cash equivalents of $31.0 million, expected to fund operations into Q3 2024[114]. - The company expects to require additional financing to support ongoing operations and product development[123]. - The company has no committed external source of funds and may face dilution if additional capital is raised through equity sales[126]. Clinical Development - The company is currently enrolling patients in a Phase 1/2a clinical trial for ATRN-119, with tolerability and pharmacokinetic data expected in Q1 2024[73]. - Aprea anticipates filing an IND for its lead WEE1 inhibitor product candidate, ATRN-1051, by the end of 2023[74]. - The company has shifted its focus to developing synthetic lethality-based cancer therapeutics following the acquisition of Atrin[77]. - Aprea's most advanced product candidate, ATRN-119, targets the ATR kinase involved in DNA damage response pathways[73]. - The company is exploring combination therapies with poly (ADP-ribose) polymerase inhibitors to enhance synthetic lethality[76]. - Aprea has no ongoing preclinical studies or clinical trials involving reactivators of mutant p53, focusing instead on DDR pathways[77]. - Research and development expenses are expected to increase as Aprea initiates clinical trials for ATRN-119 and other candidates[89]. - The company anticipates increased expenses related to clinical trials, product development, and commercialization efforts[120]. Acquisition and Stock Information - The acquisition of Atrin Pharmaceuticals was completed on May 16, 2022, with Aprea issuing 55,869 shares of common stock and 2,949,630 shares of Series A Non-Voting Convertible Preferred Stock[80]. - As of March 31, 2023, a total of 2,893,403 shares of Series A Non-Voting Convertible Preferred Stock were converted into 1,446,701 shares of common stock[81]. - Acquired in-process research and development expense from the Atrin Acquisition in May 2022 was recorded as an expense at the acquisition date, with no additional IPR&D expense expected in future periods[94]. - The company issued 26,302 shares under the ATM offering program, resulting in net proceeds of approximately $0.3 million during the three months ended March 31, 2023[130]. Other Financial Information - Interest income for Q1 2023 was $256,410, a significant increase from $1,971 in Q1 2022, reflecting a change of $254,439[108]. - The company incurred a foreign currency loss of $13,797 in Q1 2023, compared to a gain of $136,211 in Q1 2022, indicating a change of $150,008[113]. - The company expects to continue incurring increased expenses associated with being a public company, including compliance and regulatory costs[94]. - The company is exposed to interest rate risk, but historical fluctuations in interest income have not been significant[133]. - The company does not currently have any off-balance sheet arrangements[132]. - The company is not currently subject to any material legal proceedings[139].