Finch Therapeutics (US:FNCH)2022-08-11 11:13Financial Performance - Total revenue for the three months ended June 30, 2022, was $0.4 million, a decrease of 87.3% from $2.8 million in the same period of 2021 [144]. - Collaboration revenue for the six months ended June 30, 2022, was $0.7 million, down 88.8% from $6.4 million in the same period of 2021 [152]. - Net loss for the three months ended June 30, 2022, was $22.7 million, compared to a net loss of $15.2 million in the same period of 2021, representing an increase of 49.2% [143]. - The company has incurred significant operating losses, with net losses of $47.3 million and $29.2 million for the six months ended June 30, 2022 and 2021, respectively, resulting in an accumulated deficit of $208.3 million as of June 30, 2022 [167]. Expenses - Research and development expenses for the three months ended June 30, 2022, were $13.9 million, slightly down from $14.0 million in 2021, reflecting a decrease of 0.3% [145]. - General and administrative expenses increased to $8.2 million for the three months ended June 30, 2022, up 38.8% from $5.9 million in 2021 [148]. - Total operating expenses for the six months ended June 30, 2022, were $47.9 million, an increase of 28.3% from $37.4 million in 2021 [152]. - Research and development expenses for the six months ended June 30, 2022, were $29.5 million, up 9.3% from $26.9 million in 2021 [153]. - General and administrative expenses for the six months ended June 30, 2022, were $17.6 million, an increase of 68.3% from $10.4 million in 2021 [155]. - Restructuring expenses for the three and six months ended June 30, 2022, were $0.9 million, compared to zero in the same periods of 2021, due to expense reduction measures [150][157]. Cash and Financing - As of June 30, 2022, the company reported cash and cash equivalents of $104.7 million, expected to fund operations into the first quarter of 2024 [126]. - Cash used in operating activities for the six months ended June 30, 2022 was $41.5 million, primarily due to a net loss and a net decrease in operating assets and liabilities [160]. - The company raised approximately $177.0 million from the sale of convertible preferred stock and $14.0 million in collaboration revenue from Takeda [158]. - Net cash provided by financing activities for the six months ended June 30, 2022 was $14.8 million, primarily from borrowings under the Loan Agreement [163]. - Cash used in investing activities was $1.8 million for the six months ended June 30, 2022, compared to $11.6 million in the same period of 2021 [162]. - Borrowings under the Term Loan totaled $15.0 million with an average interest rate of 8.43% as of June 30, 2022 [176]. Product Development - The company has no products approved for commercial sale and has not generated any revenue from product sales, relying primarily on collaboration and license agreements for revenue [128]. - The company is preparing to submit an IND for FIN-211 in the fourth quarter of 2022, with a Phase 1b clinical trial anticipated to follow [120]. - The company has partnered with Takeda on targeted microbiome therapeutics for inflammatory bowel disease, with ongoing reviews of development plans for TAK-524 [121]. - The company anticipates topline data from the Phase 3 PRISM4 trial for CP101 to be available in the first half of 2024 [119]. - The company has not recognized any revenue related to the LMIC Agreement with OpenBiome for the three and six months ended June 30, 2022, as there are currently no products available for sale [133]. - The company expects research and development expenses to continue increasing as clinical trials for product candidates are initiated and ongoing [137]. - The company expects expenses to increase substantially as it advances preclinical activities and clinical trials for its product candidates [167]. - The company plans to continue research and development, initiate clinical trials, and seek regulatory authorizations for its product candidates [170].