Financial Performance - The company reported a total operating expense of $36.649 million for the three months ended September 30, 2023, an increase of 57% compared to $23.292 million for the same period in 2022[143]. - The net loss for the three months ended September 30, 2023, was $36.215 million, a 57% increase from the net loss of $23.059 million in the same period in 2022[143]. - The company recorded a net loss of $76.4 million for the nine months ended September 30, 2023, compared to a net loss of $75.8 million for the same period in 2022, reflecting an increase of $0.6 million[169]. - The net loss for the nine months ended September 30, 2023, was $76.4 million, with non-cash charges of $22.4 million[179]. - Other income decreased by $0.5 million during the nine months ended September 30, 2023, due to the completion of services provided to a third-party partner[167]. Expenses - Research and development expenses decreased by $5.638 million, or 35%, to $10.407 million for the three months ended September 30, 2023, compared to $16.045 million in the same period in 2022[143][145]. - General and administrative expenses decreased by $1.861 million, or 26%, to $5.386 million for the three months ended September 30, 2023, compared to $7.247 million in the same period in 2022[143][146]. - Research and development expenses decreased by $16.3 million, or 31%, to $36.8 million for the nine months ended September 30, 2023, primarily due to reductions in personnel and contract services[158]. - General and administrative expenses decreased by $3.6 million, or 15%, to $20.3 million for the nine months ended September 30, 2023, driven by lower personnel and consulting costs[160]. Cash and Investments - As of September 30, 2023, the company had cash, cash equivalents, and investments totaling $21.4 million, which are expected to fund operations only into the first quarter of 2024[169]. - As of September 30, 2023, the company held cash, cash equivalents, and investments totaling $21.4 million, down from $70.5 million as of December 31, 2022[193]. - The company expects to finance its cash needs primarily using existing cash, cash equivalents, and investments[176]. Workforce Reductions - The company implemented a workforce reduction of approximately 40% in August 2023, incurring costs of approximately $1.3 million related to severance payments[127]. - A further workforce reduction of approximately 40% was implemented in November 2023, with estimated costs of $0.9 million related to severance payments[129]. - The company recognized restructuring and impairment charges of $20.856 million in the three months ended September 30, 2023, reflecting the impact of workforce reductions[143]. Compliance and Regulatory Issues - The company received a notice from Nasdaq on September 8, 2023, regarding non-compliance with the minimum bid requirement, as the average closing price of its Class A common stock fell below $1.00[134]. Lease Modifications - The company entered into a lease modification agreement with a payment of $5.1 million and transferred assets with a net carrying value of $32.1 million as part of the lease termination[149]. - The company entered into a Lease Modification Agreement in September 2023, resulting in a lease modification payment of $5.1 million and a gain from lease termination[177][178]. - The modification reduced operating lease liabilities by $60.0 million and right-of-use assets by $34.7 million[178]. - Future lease payments as of September 30, 2023, are projected to be $1.3 million for the year ending December 31, 2023[178]. Other Financial Activities - Cash provided by investing activities for the nine months ended September 30, 2023, was $32.2 million, primarily from net maturities of investments[184]. - Cash provided by financing activities for the nine months ended September 30, 2023, was $0.1 million, compared to $3.9 million in 2022[184]. - The company has not sold any shares under its at-the-market sales agreements during the three and nine months ended September 30, 2023[172]. Company Status - The company has no products approved for marketing or commercial sale and has never generated any revenue from product sales[139]. - The company has an accumulated deficit of $533.3 million as of September 30, 2023, indicating ongoing financial challenges[169]. - The company remains an emerging growth company, with the status expected to continue until at least December 31, 2024[190].
Atreca(BCEL) - 2023 Q3 - Quarterly Report