Autolus(AUTL) - 2023 Q1 - Quarterly Report

Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets Total assets decreased to $460.0 million by March 31, 2023, from $490.3 million, primarily due to reduced cash and a decline in equity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $343,027 | $382,436 | | Total current assets | $393,885 | $425,771 | | Total assets | $459,971 | $490,274 | | Liabilities & Equity | | | | Total current liabilities | $39,637 | $46,366 | | Total liabilities | $193,051 | $191,600 | | Total shareholders' equity | $266,920 | $298,674 | | Total liabilities and shareholders' equity | $459,971 | $490,274 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss increased to $39.8 million for Q1 2023 from $37.1 million in Q1 2022, despite new license revenue, driven by higher operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | License revenue | $1,292 | $0 | | Total operating expenses, net | ($43,104) | ($41,784) | | Net loss | ($39,811) | ($37,062) | | Total comprehensive loss | ($34,170) | ($44,517) | | Basic and diluted net loss per ordinary share | ($0.23) | ($0.41) | Condensed Consolidated Statements of Shareholders' Equity Shareholders' equity decreased from $298.7 million to $266.9 million by March 31, 2023, primarily due to the $39.8 million net loss Changes in Shareholders' Equity for Q1 2023 (in thousands) | Description | Amount | | :--- | :--- | | Balance at December 31, 2022 | $298,674 | | Share-based compensation expense | $2,416 | | Unrealized gain on foreign currency translation | $5,641 | | Net loss | ($39,811) | | Balance at March 31, 2023 | $266,920 | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities increased to $42.4 million in Q1 2023, leading to a $39.4 million decrease in total cash and equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($42,419) | ($35,030) | | Net cash used in investing activities | ($3,622) | ($771) | | Net cash used in financing activities | ($691) | ($1) | | Net decrease in cash, cash equivalents and restricted cash | ($39,406) | ($41,784) | | Cash, cash equivalents and restricted cash, end of period | $343,355 | $268,892 | Notes to Condensed Consolidated Financial Statements Note 1. Nature of the Business Autolus Therapeutics, a clinical-stage biopharmaceutical company, continues to incur losses but maintains sufficient cash to fund operations for at least twelve months - The company is a biopharmaceutical firm developing next-generation programmed T cell therapies for cancer treatment[16] - The company has incurred recurring losses since inception, with a net loss of $39.8 million for the three months ended March 31, 2023, and an accumulated deficit of $710.0 million[16] - Management expects that its forecast cash will be sufficient to fund operations for at least twelve months from the issuance date of the financial statements[16] Note 3. License Revenue The company recognized $1.29 million in license revenue in Q1 2023 from a new agreement with Cabaletta Bio Inc. for RQR8 safety switch technology - On January 9, 2023, the Company entered into an Option and License Agreement with Cabaletta Bio Inc., granting a non-exclusive license for its RQR8 safety switch technology[24] - The company recognized total license revenue of $1.2 million for the three months ended March 31, 2023, related to the Cabaletta Agreement, as the performance obligation was satisfied upon delivery of the license and know-how[24] Note 7. Shareholders' Equity In December 2022, the company completed a public offering of 81.9 million ADSs at $2.00 per ADS, raising net proceeds of $152.4 million - In December 2022, the Company completed an underwritten public offering of 81,927,012 ADSs at a price of $2.00 per ADS, raising net proceeds of $152.4 million after underwriting discounts and offering expenses[35] Note 9. Net loss per share Basic and diluted net loss per share improved to $0.23 in Q1 2023 from $0.41 in Q1 2022, driven by a significant increase in outstanding shares Net Loss Per Share Calculation (in thousands, except share and per share data) | Description | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net loss attributable to ordinary shareholders | ($39,811) | ($37,062) | | Weighted-average number of ordinary shares | 173,825,825 | 90,914,175 | | Net loss per share - basic and diluted | ($0.23) | ($0.41) | - Potentially dilutive securities, including 13.1 million share options and 3.3 million warrants, were excluded from the calculation as their effect would be anti-dilutive[41] Note 10. Liability related to future royalties and sales milestones, net The liability for future royalties and sales milestones, stemming from a Blackstone agreement, increased from $125.9 million to $130.8 million by March 31, 2023, due to non-cash interest expense - The liability is related to a strategic collaboration agreement with Blackstone from November 2021, involving future royalties and sales milestones[42] Activity in Liability for Future Royalties (in thousands) | Description | Amount | | :--- | :--- | | Balance at December 31, 2022 | $125,900 | | Non-cash interest expense | $4,905 | | Balance at March 31, 2023 | $130,805 | Note 11. Leases Total lease costs for Q1 2023 decreased to $1.1 million from $1.4 million, while the weighted-average remaining lease term significantly increased to 11.9 years, reflecting new facility agreements Lease Information (in thousands, except years and percentage) | Metric | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Total lease costs | $1,121 | $1,430 | | Weighted-average remaining lease term | 11.9 years | 5.5 years | | Weighted-average discount rate | 6.87% | 7.15% | - The company is leasing a new 70,000 square foot manufacturing facility in Stevenage, UK, which is being handed over in portions as construction completes. This has contributed to the increase in the remaining lease term[48] Future Fixed Lease Payments (in thousands) | Period | Amount | | :--- | :--- | | Remainder of 2023 | $4,661 | | 2024 | $5,299 | | 2025 | $3,815 | | 2026 | $3,587 | | 2027 | $3,587 | | Thereafter | $18,464 | | Total lease payments | $39,413 | Note 12. Commitments and Contingencies The company has license agreements with potential future milestone and royalty payments, but no milestones were deemed probable as of March 31, 2023, and no litigation was pending - The company has license agreements with UCLB, Noile, and Adaptive that include potential future milestone and royalty payments[57][58][59] - As of March 31, 2023, no milestones under these agreements were considered probable of being achieved[59] - The company was not a party to any litigation and had no contingency reserves as of March 31, 2023[60] Note 13. Related parties Blackstone and Syncona are identified as related parties due to significant ownership, with several related parties purchasing $113.0 million in ADSs during the December 2022 public offering - Blackstone and Syncona Portfolio Limited are considered related parties as they each own more than 10% of the Company's outstanding voting securities[62][64] Related Party Purchases in December 2022 Public Offering | Related Party | ADSs Purchased | Total Purchase Price (in millions) | | :--- | :--- | :--- | | Syncona Portfolio Limited | 14,000,000 | $28.0 | | Deep Track Capital, LP | 15,000,000 | $30.0 | | Qatar Investment Authority | 15,000,000 | $30.0 | | Armistice Capital, LLC | 10,000,000 | $20.0 | | Entities affiliated with Blackstone | 2,500,000 | $5.0 | | Total | 56,500,000 | $113.0 | Note 14. Subsequent Events The company evaluated all events through May 4, 2023, and concluded no subsequent events required disclosure in the condensed consolidated financial statements - The Company evaluated subsequent events through May 4, 2023, and concluded that no event has occurred that requires disclosure[67]