Forte Biosciences(FBRX) - 2021 Q2 - Quarterly Report

Financial Performance - Forte Biosciences reported a net loss of $5.812 million for Q2 2021, a decrease of $28.949 million compared to a net loss of $34.761 million in Q2 2020[118]. - Total operating expenses for Q2 2021 were $5.747 million, down from $34.754 million in Q2 2020, reflecting a decrease of $29.007 million[118]. - The net loss for the six months ended June 30, 2021, was approximately $10.6 million, with an accumulated deficit of about $62.1 million as of the same date[127]. - Net cash used in operating activities for the six months ended June 30, 2021, was $8.0 million, compared to $6.9 million for the same period in 2020[142]. Research and Development - Research and development expenses increased to $3.523 million in Q2 2021 from $1.937 million in Q2 2020, an increase of $1.586 million[118]. - The company anticipates significant increases in research and development expenses as it continues to advance the FB-401 program through clinical trials[135]. - The company recognized an expense of $32.1 million for in-process research and development assets acquired during the merger with Tocagen[112]. - Research and development expenses increased to $3.5 million for Q2 2021, up from $1.9 million in Q2 2020, representing an increase of approximately 84.2%[121]. Clinical Trials - The company completed a Phase 1/2a study of FB-401, showing nearly 80% improvement in atopic dermatitis (AD) disease activity in pediatric subjects[100]. - In the Phase 1/2a trial, 90% of pediatric patients achieved at least a 50% improvement in disease activity, with 70% achieving a 75% improvement[100]. - Forte initiated a multicenter, placebo-controlled clinical trial of FB-401 in September 2020, enrolling 154 subjects, with preliminary results expected in Q3 2021[101]. Revenue and Funding - The company has not generated any revenue from product sales and expects future revenue to fluctuate based on collaborations and licensing agreements[106]. - The company has not generated any revenue from product sales or out-licensing and does not expect to do so until regulatory approval is obtained[134]. - The company raised net cash proceeds of approximately $19.4 million in connection with the Merger, along with an additional $4.6 million from a stock issuance[128]. - Forte incurred $44,000 in offering costs related to a shelf registration statement effective in June 2021, allowing for the potential to raise up to $300 million[96]. Expenses - General and administrative expenses for Q2 2021 were $2.224 million, an increase of $1.464 million compared to $0.760 million in Q2 2020[118]. - General and administrative expenses rose to $2.2 million for Q2 2021, compared to $0.8 million in Q2 2020, marking a 175% increase[122]. - The company expects general and administrative expenses to increase substantially due to staff expansion and higher compliance costs associated with being a public company[124]. Cash Position - Cash and cash equivalents were approximately $50.8 million as of June 30, 2021, expected to fund operations for at least 12 months[133]. Off-Balance Sheet Arrangements - The company has not entered into any off-balance sheet arrangements and does not have holdings in variable interest entities[145].