Enliven Therapeutics(ELVN) - 2022 Q2 - Quarterly Report

Financial Performance - The company has incurred significant operating losses since inception, with losses from operations of $11.5 million and $26.2 million for the three and six months ended June 30, 2022, respectively, compared to $13.2 million and $23.4 million for the same periods in 2021 [96]. - As of June 30, 2022, the company had an accumulated deficit of approximately $173.6 million and expects to continue incurring operating losses for the foreseeable future [96]. - Net loss for the six months ended June 30, 2022, was $26.1 million, compared to a net loss of $23.4 million for the same period in 2021 [124]. - Total operating expenses for the six months ended June 30, 2022, were $26.2 million, an increase of $2.7 million compared to $23.4 million for the same period in 2021 [124]. Cash and Investments - The company had $60.3 million in cash, cash equivalents, and investments as of June 30, 2022, which is expected to fund operating expenses for at least twelve months [101]. - As of June 30, 2022, the company had $60.3 million in cash, cash equivalents, and investments [132]. - The company has cash, cash equivalents, and investments totaling $60.3 million as of June 30, 2022 [157]. Research and Development - Research and development expenses for the three months ended June 30, 2022, totaled $7.4 million, a decrease from $10.1 million for the same period in 2021 [111]. - The company expects research and development expenses to decrease significantly beginning in the third quarter of 2022 due to the discontinuation of certain trials [108]. - Research and development expenses decreased by approximately $2.7 million from $10.1 million in Q2 2021 to $7.4 million in Q2 2022, primarily due to a $3.2 million decrease related to the discontinued development of tovinontrine [120]. Workforce and Operational Changes - The company decided to discontinue the development of tovinontrine and implemented a reduction in workforce to reduce operating expenses [92]. - The company expects operating expenses to decrease significantly starting in Q3 2022 following the decision to discontinue tovinontrine development and reduce workforce [140]. Revenue Generation - The company has not generated any revenue since inception and does not expect to do so in the near future [107]. - The company has not yet commercialized or generated revenue from any product candidate, relying on funding through stock issuances [128]. Stock Issuance and Financing - The company has issued and sold 231,291 shares of common stock under a sales agreement, resulting in net proceeds of $1.4 million as of June 30, 2022 [94]. - The company completed a public offering of 8,333,333 shares at a price of $6.00 per share, resulting in net proceeds of $46.8 million [95]. Other Financial Information - Net cash used in operating activities for the six months ended June 30, 2022, was $29.5 million, primarily due to a net loss of $26.1 million [133]. - Total other income, net for Q2 2022 was $72, compared to $8 in Q2 2021, primarily from interest earned on cash and investments [119]. Accounting and Regulatory Matters - The company is classified as an "emerging growth company" (EGC) under the JOBS Act, allowing it to delay the adoption of certain accounting standards [152]. - The company may remain an EGC until it reaches total annual gross revenues of $1.07 billion or more [155]. - The company has elected to take advantage of certain exemptions and reduced reporting requirements under the JOBS Act [153]. - There were no material changes to the company's critical accounting policies during the three and six months ended June 30, 2022 [150]. Contingent Liabilities - The company has not included contingent payments related to its license agreement with Lundbeck on its consolidated balance sheets [148]. - The company is subject to certain agreements that require payments upon achievement of development, regulatory, or commercial milestones, which are contingent and not considered contractual obligations [148]. - The company may incur termination fees or wind-down costs upon termination of agreements with contract research organizations, but these costs are generally not fixed or estimable [149].