Graphite Bio(US:GRPH)2023-08-14 21:04Financial Performance - Cash and cash equivalents increased to $128.5 million as of June 30, 2023, up from $47.7 million at the end of 2022, representing a growth of 168%[15] - Total current assets decreased to $251.2 million from $275.4 million, a decline of 8.8%[15] - Total operating expenses for the three months ended June 30, 2023, were $58.2 million, compared to $26.8 million for the same period in 2022, an increase of 117%[17] - Net loss for the three months ended June 30, 2023, was $55.3 million, compared to a net loss of $25.9 million in the same period of 2022, reflecting a 113% increase in losses[17] - The company reported a comprehensive loss of $55.1 million for the three months ended June 30, 2023, compared to a comprehensive loss of $26.7 million in the same period of 2022, an increase of 106%[17] - For the six months ended June 30, 2023, the net loss was $79.248 million, compared to a net loss of $51.771 million for the same period in 2022, representing a 53.2% increase in losses year-over-year[25] Assets and Liabilities - Total liabilities increased to $62.9 million as of June 30, 2023, from $25.6 million at the end of 2022, a rise of 145%[15] - The accumulated deficit grew to $321.7 million as of June 30, 2023, compared to $242.4 million at the end of 2022, an increase of 32.7%[15] - The company had cash, cash equivalents, and marketable securities totaling $246.7 million as of June 30, 2023, which is expected to fund operations for at least the next 12 months[32] - As of June 30, 2023, the total fair value of cash equivalents and marketable securities was $246.7 million, compared to $283.6 million as of December 31, 2022, reflecting a decrease of approximately 13%[49][51] - The company held $128.5 million in money market funds as of June 30, 2023, up from $45.7 million at the end of 2022, indicating a significant increase in liquidity[49][51] Research and Development - Research and development expenses were $13.5 million for the three months ended June 30, 2023, down from $17.8 million in the same period of 2022, a decrease of 24.8%[17] - The company plans to continue research activities associated with its pre-clinical non-genotoxic conditioning program, aiming to advance toward potential development candidates[29] - The Company recognized $1.1 million in research and development expense related to the LCGM MSA during the six months ended June 30, 2023, compared to $2.8 million during the same period in 2022[67] Corporate Actions and Restructuring - The company anticipates ongoing restructuring initiatives to improve operational efficiency and financial position[11] - The company executed a corporate restructuring plan resulting in a total reduction in force of 71.2% to reduce operational cash burn[28] - The Company recorded restructuring charges of $3.3 million during the six months ended June 30, 2023, related to the elimination of approximately 71.2% of its workforce[116] Stock and Shareholder Information - The company had 57,989,273 shares outstanding as of June 30, 2023, a slight decrease from 58,221,760 shares at the end of 2022[15] - As of June 30, 2023, the Company reserved a total of 17,448,042 shares for future issuance, an increase from 13,893,161 shares as of December 31, 2022[91] - The 2021 Stock Option and Incentive Plan has 7,188,823 shares available for future issuance as of June 30, 2023[104] - The Company issued 65,222 shares under the Employee Stock Purchase Plan (ESPP) during the three and six months ended June 30, 2023[109] - The Company repurchased 152,694 shares of founders' common stock awards during the three and six months ended June 30, 2023[97] Lease and Asset Management - As of June 30, 2023, the Company had operating lease liabilities of $53.4 million related to office suite leases recorded on its condensed balance sheet[82] - The Company recorded a non-cash impairment of $35.0 million to the right-of-use asset and related leasehold improvements due to the Restructuring Plan[81] - Future minimum lease payments for operating leases total $88.356 million, with $4.024 million due in the remaining six months of 2023[86] - Lease expense for the three and six months ended June 30, 2023, was $2.3 million and $4.0 million, respectively, compared to $1.6 million and $3.3 million for the same periods in 2022[86] Cash Flow and Investment Activities - The company reported net cash used in operating activities of $34.729 million for the six months ended June 30, 2023, down from $43.334 million in the same period of 2022[25] - The company generated net cash provided by investing activities of $115.389 million for the six months ended June 30, 2023, compared to a net cash used of $258.883 million in the same period of 2022[25] Licensing and Agreements - In August 2023, the company entered into a license and option agreement to grant a third party the option to acquire certain technology related to its nula-cel program[29] - The Company entered into an exclusive license agreement with Stanford University to develop human prophylactic and therapeutic products, enhancing its product development capabilities[57] - The Company entered into the IDT License Agreement with an upfront payment of $3.0 million and potential regulatory milestone payments of up to $5.3 million, totaling $8.8 million if expanding the licensed field[70] - The company entered into an asset purchase agreement on August 1, 2023, for the sale of certain assets related to its non-genotoxic conditioning technology, with total payments potentially reaching $1.5 million[123]