Barinthus(US:BRNS)2022-05-10 16:00Financial Performance - The company generated net income of $2.6 million for the three months ended March 31, 2022, compared to a net loss of $15.4 million for the same period in 2021[89]. - The company incurred a net loss of $15.4 million for the quarter ended March 31, 2021, and generated a net income of $2.6 million for the quarter ended March 31, 2022[123]. - For the three months ended March 31, 2022, the company reported revenue of $15.0 million, a significant increase from $0.2 million in the same period of 2021, reflecting a change of $14.8 million[150][151]. - The company recognized a net income of $2.6 million for the three months ended March 31, 2022, compared to a net loss of $15.4 million in the same period of 2021, marking a positive change of $18.0 million[150]. - The company incurred total operating expenses of $14.4 million for the three months ended March 31, 2022, compared to $6.4 million in the same period of 2021, an increase of $7.9 million[150]. Accumulated Deficit and Future Expectations - As of March 31, 2022, the company had an accumulated deficit of $106.0 million and does not expect positive cash flows from operations in the foreseeable future[89]. - The company expects to incur net operating losses for at least the next several years as it advances its product candidates through clinical development[89]. - The company expects to continue incurring net operating losses for at least the next few years as it progresses through clinical development and seeks regulatory approval for its product candidates[164]. - As of March 31, 2022, the company had an accumulated deficit of $106.0 million and expects to continue incurring significant losses in the foreseeable future[174]. Cash and Financing - The company had cash and cash equivalents of $200.6 million as of March 31, 2022, with total gross proceeds from share issuances and convertible loan notes reaching approximately $324.8 million[163]. - The company has sufficient cash to support operations into the fourth quarter of 2024 without additional financing, but may need to delay or reduce R&D programs if unable to secure further funding[123]. - Cash and cash equivalents as of March 31, 2022, totaled $200.6 million, primarily held in bank accounts across the UK, US, and Australia[194]. - Cash used by financing activities was $0.2 million in Q1 2022, a significant decrease from $121.8 million provided in Q1 2021 due to the issuance of Series B shares[172]. Research and Development - The company has a broad pipeline including therapeutic programs for chronic hepatitis B, HPV, prostate cancer, and non-small cell lung cancer, as well as prophylactic programs for herpes zoster and MERS[85]. - Research and development expenses are a significant portion of operating expenses, including costs for personnel, clinical trials, and manufacturing processes[111]. - Research and development expenses for the three months ended March 31, 2022, were $10.7 million, up from $4.6 million in the same period of 2021, representing an increase of $6.1 million[150][154]. - The company has initiated clinical trials for VTP-200, VTP-300, and VTP-600, while preparing VTP-850 and VTP-500 for clinical trials[109]. - The company plans to file an Investigational New Drug application for its HPV-associated cancer program in the first quarter of 2023[94]. - Research and development incentives include payments receivable from the UK government related to corporation tax relief on R&D projects[119]. - Research and development incentives accrued for the three months ended March 31, 2022, were $1.0 million, consistent with the same amount in 2021[160]. Operational Challenges - The ongoing COVID-19 pandemic has significantly impacted the company's clinical trial activities and recruitment efforts[96]. - The company expects general and administrative expenses to increase as it expands operations in the UK and USA, preparing for manufacturing and commercialization[112]. - The company anticipates substantial increases in expenses as it pursues clinical and preclinical development of product candidates and expands operational capabilities[174]. Acquisitions and Goodwill - The acquisition of Avidea Technologies, Inc. was completed for an upfront amount of $33.3 million, with $12.2 million paid in cash and $21.1 million in American Depositary Shares[144]. - Goodwill recognized from the acquisition of Avidea Technologies, Inc. amounted to $12.6 million as of March 31, 2022[146]. Debt and Interest - The convertible loan notes issued between July and November 2020 accrue interest at 8% per annum and mature on June 6, 2023[126]. - Interest expense for the three months ended March 31, 2022, was $0.7 million, a decrease from $2.7 million in the same period of 2021[158]. Cash Flow Activities - Net cash used in operating activities for Q1 2022 was $6.6 million, an improvement from $8.0 million in Q1 2021[165]. - Cash used in investing activities was $1.1 million in Q1 2022, compared to $0.4 million in Q1 2021, primarily for capital expenditures related to new offices in the UK[171]. - The effect of exchange rates on cash and cash equivalents resulted in a loss of $5.6 million in Q1 2022, compared to a loss of $0.8 million in Q1 2021[173].