Aerovate Therapeutics(AVTE) - 2022 Q1 - Quarterly Report

Financial Performance - The net loss for Q1 2022 was $10.9 million, compared to a net loss of $2.8 million in Q1 2021, reflecting an increase of $8.1 million[82]. - The company has no products approved for sale and has not generated any revenue to date[74]. - Net cash used in operating activities for Q1 2022 was $5.7 million, compared to $3.8 million in Q1 2021, reflecting a net loss of $10.9 million in 2022[96][97]. - The net decrease in cash and cash equivalents for Q1 2022 was $26.1 million, compared to an increase of $4.1 million in Q1 2021[95]. Operating Expenses - The company reported total operating expenses of $11.0 million for Q1 2022, an increase of $8.2 million compared to $2.8 million in Q1 2021[82]. - Research and development expenses for Q1 2022 were $7.3 million, up from $2.2 million in Q1 2021, primarily due to the initiation of the Phase 2b/Phase 3 trial[83]. - General and administrative expenses increased to $3.8 million in Q1 2022 from $0.6 million in Q1 2021, largely due to costs associated with being a public company[84]. - Net cash used in investing activities for Q1 2022 was $20.4 million, primarily due to purchases of short-term investments totaling $32.9 million, partially offset by sales and maturities of $12.5 million[98]. Funding and Capital Requirements - The company has raised a total of $79.4 million from convertible preferred stock and $5.0 million from convertible promissory notes since inception[87]. - As of March 31, 2022, the company had cash and cash equivalents of $161.1 million, projected to fund operations into the second half of 2025[88]. - The company anticipates future capital requirements will depend on various factors, including clinical trial costs and regulatory approval timelines[89]. - No net cash was provided by financing activities in Q1 2022, while $7.9 million was provided in Q1 2021 from the sale of Series A redeemable convertible preferred stock[99]. Assets and Liabilities - The company experienced a $2.1 million increase in prepaid expenses and other current assets, and a $2.1 million decrease in accounts payable and accrued liabilities in Q1 2022[96]. - There were no significant changes in critical accounting policies and estimates during Q1 2022 compared to the previous year[101]. Legal and Regulatory Matters - As of March 31, 2022, the company was not involved in any legal proceedings expected to materially impact its financial position[112]. Internal Controls - The company's disclosure controls and procedures were deemed effective as of March 31, 2022[109].