Eterna Therapeutics (US:ERNA)2023-08-10 16:00Financing Activities - The company has entered into a private placement of $8.7 million in convertible notes, with an interest rate of 6% per annum, maturing on July 14, 2028[129][130]. - The company has entered into a Standby Equity Purchase Agreement allowing for the sale of up to $10 million in common stock, with gross proceeds of approximately $0.3 million recognized to date[140]. - The company closed a Private Placement of $8.7 million in aggregate principal amount of Notes, intending to use the net proceeds for general working capital purposes[169]. - Net cash provided by financing activities for the six months ended June 30, 2023, included $0.3 million of gross proceeds received under the SEPA with Lincoln Park[181]. Revenue Generation - The company has not generated any revenues from product sales to date, as it is still in the pre-clinical stage[142]. - A cell line customization and license agreement with Lineage Cell Therapeutics may lead to additional revenues, although no assurances can be made[142]. - The company received a $0.3 million upfront, nonrefundable payment under the Lineage Agreement for an option right to obtain a sublicense of intellectual property, with potential future payments based on customer requests[165]. Research and Development - Research and development expenses are recognized as incurred, with major components including preclinical study costs and clinical trial expenses[144][145]. - The company acquired intellectual property assets from Exacis Biotherapeutics, enhancing its mRNA technology platform[138]. - The mRNA technology platform includes over 100 patents, focusing on mRNA cell reprogramming and gene editing technologies[121][122]. - The company anticipates developing product candidates for neurological indications and acute myeloid leukemia using its mRNA technology platform[122]. - The company expensed approximately $0.5 million for the Purchased License acquired in the Exacis Acquisition during the three and six months ended June 30, 2023[155]. Operating Expenses - Total operating expenses for the three months ended June 30, 2023, were $4.549 million, a decrease of $9.331 million compared to $13.880 million in the same period of 2022[149]. - Research and development expenses decreased to $1.579 million for the three months ended June 30, 2023, down from $1.685 million in 2022, reflecting a reduction of $106,000[152]. - General and administrative expenses significantly decreased to $2.510 million for the three months ended June 30, 2023, compared to $6.205 million in 2022, a reduction of $3.695 million[153]. Financial Performance - The net loss for the three months ended June 30, 2023, was $4.508 million, compared to a net loss of $3.398 million in the same period of 2022, an increase in loss of $1.110 million[149]. - Cash, cash equivalents, and restricted cash totaled approximately $5.9 million as of June 30, 2023, with $4.1 million classified as restricted cash[163]. - The change in fair value of warrant liabilities resulted in a credit of $0.191 million for the three months ended June 30, 2023, compared to a credit of $10.792 million in the same period of 2022[157]. - The company recognized a contingent consideration liability of $0.2 million for future payments related to the Exacis Acquisition, with a credit of $0.1 million recognized for the change in fair value as of June 30, 2023[158]. - Loss on non-controlling investment in NoveCite was approximately $8,000 for the three months ended June 30, 2023, compared to $296,000 in the same period of 2022[159]. Future Outlook - The company expects to continue incurring operating losses as it develops product programs and operates as a publicly traded company[175]. - Future funding requirements will depend on various factors, including the cost of regulatory approvals and the scope of clinical trials[176]. - The company may need to raise substantial additional funds to pursue product development, which could result in dilution to stockholders[176]. - The increase in cash used in operating activities was primarily driven by MSA fees and accrued severance payments for the six months ended June 30, 2023[179]. Lease Agreement - The company entered into a sublease agreement for approximately 45,500 square feet of office and laboratory space in Somerville, Massachusetts, with a total base rental payment of approximately $63.0 million over a 10-year term[164]. Licensing Agreements - An amendment to the Exclusive Factor License Agreement has expanded the field of use to include veterinary applications and reduced sublicense fees from 30% to 20%[136].