BioAtla(BCAB)2024-03-26 21:05Financial Performance - The company reported net losses of $123.5 million and $106.5 million for the years ended December 31, 2023 and 2022, respectively, with an accumulated deficit of $416.3 million as of December 31, 2023[407]. - The company reported a net loss of $123.5 million for the year ended December 31, 2023, compared to a net loss of $106.5 million in 2022, indicating an increase in losses of approximately 15.5%[429][430]. - The net loss for 2023 was $123.5 million, compared to a net loss of $106.5 million in 2022, resulting in a net loss per share of $2.58[456]. - Total operating expenses for 2023 were $129.7 million, a 19.9% increase from $108.1 million in 2022, driven primarily by research and development expenses of $103.7 million[456]. - Total stockholders' equity decreased from $180.3 million in 2022 to $70.7 million in 2023, a decline of 60.8%[453]. Research and Development - Research and development expenses increased to $103.7 million in 2023 from $79.3 million in 2022, primarily driven by advancements in clinical-stage ADC programs and other pre-clinical programs[419]. - The increase in research and development expenses includes a $11.2 million rise for Phase 2 clinical-stage ADC programs and a $7.4 million increase for the CTLA4 immuno-oncology program[420]. - Research and development expenses accounted for approximately 80% of total operating expenses in 2023, underscoring the company's focus on product development[456]. - The company is advancing multiple clinical development programs, including mecbotamab vedotin, ozuriftamab vedotin, evalstotug, and BA3182, which will require substantial additional capital[407]. - The company anticipates that its expenses and capital requirements will increase substantially as it advances its clinical development efforts[407]. Cash and Liquidity - As of December 31, 2023, cash and cash equivalents totaled approximately $111.5 million, expected to fund operations for at least twelve months[410]. - Cash used in operating activities was $104.0 million in 2023, up from $90.4 million in 2022, reflecting a year-over-year increase of 15.8%[429][430]. - Cash and cash equivalents at the end of 2023 were $111.5 million, down from $215.5 million at the end of 2022, indicating a significant decrease in liquidity[461]. - The company plans to fund its ongoing losses through public or private equity or debt financings, with a potential gross sales proceeds of up to $100 million from an Open Market Sale Agreement[466]. - The company expects to face challenges in raising additional capital due to market volatility and other economic factors[428]. Collaborations and Revenue - The company has entered into collaborations and licensing agreements that may provide future milestone and royalty payments, but did not recognize any revenue from these agreements in 2023 or 2022[412]. - The company has not recognized any revenue from the BeiGene collaboration for the years ended December 31, 2023, and 2022[536]. - The collaboration agreement with Bristol-Myers Squibb did not impact the Company's financial results for the years ended December 31, 2023, or 2022[537]. Assets and Liabilities - As of December 31, 2023, the company reported total assets of $119.7 million, a decrease of 46.9% from $225.7 million in 2022[452]. - Total current assets decreased from $220.4 million in 2022 to $116.4 million in 2023, a decline of 47%[452]. - Total liabilities increased from $45.4 million in 2022 to $49.0 million in 2023, an increase of 5.8%[453]. - The company's accumulated deficit increased to $416.3 million in 2023, up from $292.8 million in 2022, reflecting ongoing operational losses[453]. Stock and Equity - The total number of common stock options outstanding increased from 2,736,918 in 2022 to 6,273,507 in 2023[495]. - The total number of restricted stock units increased from 510,039 in 2022 to 99,104 in 2023[495]. - The total number of common shares authorized for issuance under the 2020 Equity Incentive Plan increased to 9,196,970 in 2023 from 7,658,509 in 2022, an increase of 20.1%[520]. - The total unrecognized stock-based compensation cost for unvested common stock options was $15.6 million, expected to be recognized over approximately 2.8 years[527]. - The Company issued 165,550 shares under the Employee Stock Purchase Plan (ESPP) in 2023, compared to 147,564 shares in 2022[531]. Tax and Deferred Assets - The Company had federal net operating loss carryforwards of approximately $119.2 million, which can be carried forward indefinitely, subject to an 80% limitation against taxable income[554]. - The Company established a valuation allowance of approximately $85.6 million as of December 31, 2023, to offset deferred tax assets, which increased by approximately $28.9 million during 2023[553]. - The Company had gross unrecognized tax benefits of approximately $3.6 million as of December 31, 2023, none of which would affect the effective tax rate due to the valuation allowance[559]. Operational Insights - The impact of the COVID-19 pandemic on the company's operations remains uncertain and will depend on future developments[411]. - The Company views its operations as a single operating segment, streamlining performance assessment[470]. - The Company has not entered into any off-balance sheet arrangements as defined by SEC rules and regulations[440]. - The Company has not experienced any losses in its cash accounts and believes it is not exposed to significant credit risk[473].