Arcturus Therapeutics(US:ARCT)2022-08-08 16:00Financial Performance - Total revenue for the three months ended June 30, 2022, was $27,093,000, a significant increase from $2,001,000 for the same period in 2021, representing a growth of 1,254%[17] - The total revenue for the six months ended June 30, 2022, was $32.3 million, up from $4.1 million in the same period of 2021, indicating strong growth[48] - Revenue for the three months ended June 30, 2022, was $27.1 million, an increase of $25.1 million compared to $2.0 million for the same period in 2021[108] - The increase in revenue for the three months was primarily due to a $12.7 million increase from the agreement with Vinbiocare and a $12.5 million increase from reservation fees recognized from the Israeli Ministry of Health[110] Operating Expenses - Operating expenses for the six months ended June 30, 2022, totaled $104,805,000, down from $115,514,000 in the same period of 2021, indicating a decrease of 9.1%[17] - Total operating expenses for the three months ended June 30, 2022, were $49.2 million, a decrease of $6.5 million compared to $55.7 million in the same period in 2021[112] - Research and development expenses for the three months ended June 30, 2022, were $38,189,000, down from $45,679,000 in the same period of 2021, a decrease of 16.5%[17] - General and administrative expenses increased to $11.0 million for the three months ended June 30, 2022, compared to $10.0 million in the same period last year, reflecting a 10% increase due to higher personnel costs and rent expenses[117] Net Loss and Financial Position - The net loss for the six months ended June 30, 2022, was $72,732,000, compared to a net loss of $110,927,000 for the same period in 2021, reflecting an improvement of 34.4%[17] - The company reported a comprehensive loss of $21,563,000 for the three months ended June 30, 2022, compared to a comprehensive loss of $54,581,000 for the same period in 2021, showing a decrease of 60.5%[17] - As of June 30, 2022, the company reported an accumulated deficit of $420.2 million, up from $347.5 million as of December 31, 2021[34] - The total stockholders' equity as of June 30, 2022, was $170,717,000, down from $228,211,000 at December 31, 2021, a decline of 25.1%[15] Cash and Liquidity - Cash and cash equivalents decreased to $283,491,000 as of June 30, 2022, from $370,492,000 at December 31, 2021, a decline of 23.5%[15] - The company had $283.5 million in unrestricted cash and cash equivalents, which is expected to fund various ongoing projects throughout fiscal year 2022[122] - The Singapore Loan, amounting to S$62.1 million ($46.6 million), was fully drawn on January 29, 2021, and is subject to forgiveness conditions based on regulatory approval and sales thresholds[124] Debt and Financing - The total long-term debt with Western Alliance Bank amounts to $15.3 million, with principal payments scheduled for 2022 and 2023[68] - The current portion of the Singapore Loan is approximately $15.4 million, reflecting a potential principal repayment of S$20.9 million in fiscal year 2022[65] - The company recorded interest expense of $1.4 million for the six months ended June 30, 2022, compared to $1.3 million for the same period in 2021, indicating a slight increase[67] Research and Development - The company has entered into collaborative agreements that include milestone payments based on the achievement of specific research and development milestones[46] - Research and development costs are expensed as incurred, with significant investments in clinical trials and preclinical studies[39] - The company formed a joint venture with Axcelead, Inc. to focus on mRNA manufacturing, with an initial investment of $9.2 million[31] - The current pipeline includes LUNAR-COV19 ARCT-154 as a booster vaccine in Phase 3, with anticipated milestones for booster study initiation in Q4 2022[89] Future Outlook and Strategic Initiatives - The company believes it has sufficient working capital to fund operations for at least the next twelve months[34] - The company anticipates continued losses as it develops and seeks regulatory approvals for its product candidates, necessitating additional capital to fund operations[128] - Future funding requirements will depend on various factors, including the development of vaccine candidates and the achievement of milestones under strategic alliances[128] - The company is actively developing new products, including a novel mRNA vaccine, which is expected to enter clinical trials by the end of the year[160] Miscellaneous - The company has not entered into any off-balance sheet arrangements as of June 30, 2022, indicating a straightforward financial structure[121] - There were no changes in internal controls over financial reporting during the periods covered by this Quarterly Report[134] - The company has implemented cost-cutting measures, resulting in a reduction of operational expenses by FF% in the last quarter[162]