Corvus Pharmaceuticals(US:CRVS)2023-03-27 16:00Financial Performance - The net loss for 2022 was $41.307 million, compared to a net loss of $43.241 million in 2021, reflecting a 4.5% improvement[496]. - The net loss per share, basic and diluted, improved to $0.89 in 2022 from $1.03 in 2021[496]. - Total operating expenses for the year ended December 31, 2022, were $32.565 million, a decrease of 15.7% from $38.630 million in 2021[496]. - The Company reported a loss before income tax of $41.307 million for the year ended December 31, 2022, compared to a loss of $43.241 million in 2021[579]. - The net loss for the year ended December 31, 2022, was $41.3 million, resulting in a net loss per share of $0.89, compared to a net loss of $43.2 million and a net loss per share of $1.03 in 2021[541]. Cash and Liquidity - As of December 31, 2022, the company had cash, cash equivalents, and marketable securities totaling $42.3 million, with a significant portion in U.S. Treasury securities[475]. - Cash and cash equivalents at the end of 2022 were $13.159 million, down from $63.458 million at the end of 2021[502]. - The company incurred a net cash used in operating activities of $27.023 million in 2022, an improvement from $36.715 million in 2021[502]. - The Company has financed its operations primarily with proceeds from the sale of stock and will need to raise additional capital to meet its business objectives[515]. - The Company had cash, cash equivalents, and short-term marketable securities totaling $42.3 million as of December 31, 2022, expected to fund operations for at least 12 months[511]. Research and Development - Research and development expenses were $24.4 million, $29.1 million, and $31.8 million for the years ended December 31, 2022, 2021, and 2020, respectively[171]. - Research and development expenses decreased to $24.468 million in 2022 from $29.115 million in 2021, a reduction of 16.5%[496]. - The company continues to focus on the clinical development of its product candidates, including CPI-818, ciforadenant, and mupadolimab, with significant resources expected to be expended in the future[508]. - The Company recorded total stock-based compensation expenses of $2.692 million for the year ended December 31, 2022, a decrease from $4.232 million in 2021[574]. Assets and Liabilities - Total current assets decreased from $71.3 million in 2021 to $43.7 million in 2022, primarily due to a reduction in cash and cash equivalents[492]. - Total liabilities remained relatively stable at $12.1 million in 2022 compared to $12.3 million in 2021[492]. - Stockholders' equity decreased from $97.2 million in 2021 to $56.1 million in 2022, driven by an increase in the accumulated deficit from $266.4 million to $307.7 million[492]. - As of December 31, 2022, the Company had an accumulated deficit of $307.688 million[510]. Employment and Operations - The company had 29 total employees as of December 31, 2022, with 22 primarily engaged in research and development activities[173]. - The company leases approximately 27,280 square feet of office and research facilities, with a lease expiring in 2025[175]. - The company is exploring alternatives for additional space to accommodate anticipated growth[175]. Tax and Regulatory Matters - The effective income tax rate for the Company was 0% for the years ended December 31, 2022, 2021, and 2020, primarily due to a valuation allowance against deferred tax assets[580]. - The Company recorded a full valuation allowance for deferred tax assets due to uncertainty about future utilization[536]. - As of December 31, 2022, the Company had federal net operating loss (NOL) carryforwards of approximately $219.7 million and state NOL carryforwards of approximately $274.9 million, with $155.3 million of federal NOLs not expiring[583]. - The valuation allowance against deferred tax assets increased by approximately $9.2 million for the year ended December 31, 2022, primarily due to the increase in the Company's net operating loss carryforward[582]. - The Company had $8.6 million of federal and $4.7 million of state research and development tax credit carryforwards available to reduce future income taxes[584]. Investments and Equity - The company reported a gain from the sale of property and equipment of $22, while also recognizing a loss from equity method investment of $10.005 million in 2022[496]. - The company's investment in Angel Pharmaceuticals resulted in recognized losses of $10.0 million, $4.8 million, and $0.2 million for the years ended December 31, 2022, 2021, and 2020, respectively[551]. - The Company has a 49.7% ownership interest in Angel Pharmaceuticals as of December 31, 2022, down from 53.2% after third-party financing[551]. - The aggregate potential milestone payments to Vernalis for licensed products were approximately $220 million as of December 31, 2022, with no clinical or regulatory milestones completed during the year[557]. - The Company is required to pay tiered incremental royalties to Vernalis based on annual net sales of licensed products, with rates ranging from mid-single digits to low-double digits[557].