Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of $35.5 million, compared to a net loss of $12.3 million for the same period in 2022 [156]. - Net loss for Q3 2023 was $35.5 million, compared to a net loss of $12.3 million in Q3 2022, reflecting an increase of $23.2 million [174]. - Total operating expenses for the nine months ended September 30, 2023, were $61.8 million, up from $23.8 million in the same period of 2022, an increase of $37.9 million [183]. - Research and development expenses for the nine months ended September 30, 2023, increased by $28.6 million to $48.7 million, compared to $20.1 million in the same period of 2022 [184]. - General and administrative expenses for the nine months ended September 30, 2023, increased by $9.4 million to $13.0 million, compared to $3.6 million in the same period of 2022 [185]. - The company reported cash used in operating activities of $52.2 million for the nine months ended September 30, 2023, primarily due to a net loss of $66.1 million [199]. Capital Raising and Financing - The company closed its initial public offering (IPO) on November 14, 2023, selling 18,750,000 shares at $15.00 per share, resulting in net proceeds of approximately $291.3 million [155]. - The company raised aggregate net cash proceeds of $117.4 million from the sale and issuance of redeemable convertible preferred stock and convertible notes during the nine months ended September 30, 2023 [191]. - Cash provided by financing activities for the nine months ended September 30, 2023, was $116.7 million, mainly from the issuance of Series A-1 redeemable convertible preferred stock [203]. - In February 2023, the company issued 5,072,919 shares of Series A-1 redeemable convertible preferred stock, generating net proceeds of $68.1 million [194]. - The second tranche closing of the Series A Agreement in July 2023 generated net proceeds of $45.9 million, with a third tranche closing in October 2023 generating $86.0 million [194]. - The company converted outstanding convertible notes into 3,229,851 shares of Series A-2 redeemable convertible preferred stock at a conversion price of $10.18 per share in February 2023 [193]. Research and Development - Research and development expenses are anticipated to increase substantially as the company invests in developing its product candidates and expanding its pipeline [164]. - Research and development expenses increased by $13.8 million to $22.2 million in Q3 2023, compared to $8.5 million in Q3 2022, primarily driven by contract manufacturing costs rising by $4.6 million [175]. - The company plans to evaluate its lead program, CRG-022, in a potentially pivotal Phase 2 clinical trial for patients with large B-cell lymphoma [153]. - The company has not generated any revenue from product sales since inception and does not expect to do so until obtaining regulatory approval for its product candidates [159]. - The company expects to continue to expend significant resources for the foreseeable future, depending on various factors including product development and regulatory approvals [195]. Financial Position - As of September 30, 2023, the company had an accumulated deficit of $113.1 million and cash and cash equivalents of $60.3 million [156]. - As of September 30, 2023, the company had available cash and cash equivalents of $60.3 million and an accumulated deficit of $113.1 million [191]. - The company expects to continue incurring significant operating losses to support the development of its product candidates, with existing cash projected to meet needs through 2025 [192]. - The company has no products approved for sale and does not expect to generate revenue until regulatory approval is obtained for its product candidates [196]. - As of September 30, 2023, the company has fixed lease payment obligations of $3.1 million, with $2.8 million payable within 12 months [206]. Operating Expenses - General and administrative expenses are expected to increase as the company expands its headcount and operations, and as it advances product candidates through clinical development [167]. - General and administrative expenses rose by $4.9 million to $6.5 million in Q3 2023, compared to $1.6 million in Q3 2022, mainly due to a $3.1 million increase in professional services [177]. - The net change in fair value of redeemable convertible preferred stock tranche obligations resulted in a loss of $7.7 million in Q3 2023, primarily due to an increase in the fair value of underlying shares [179]. - Cash used in investing activities for the nine months ended September 30, 2023, was $6.0 million, primarily for equipment purchases related to research and development [201].
Cargo Therapeutics(CRGX) - 2023 Q3 - Quarterly Report