Harpoon Therapeutics(US:HARP)2023-03-27 20:39Financial Performance - The company reported net losses of $67.7 million, $116.8 million, and $49.9 million for the years ended December 31, 2022, 2021, and 2020, respectively, with an accumulated deficit of $352.5 million as of December 31, 2022[445]. - The company has incurred significant net operating losses since inception and expects to continue incurring losses for the foreseeable future, with research and development expenses anticipated to increase[446]. - Net loss narrowed by $48.9 million, or 42%, to $67.7 million in 2022 from $116.7 million in 2021[490]. - The net cash used in operating activities was $89.2 million in 2022, compared to $122.2 million in 2021, indicating improved cash flow management[490]. - In 2022, cash used in operating activities was $89.2 million, consisting of a net loss of $67.7 million and a net change of $33.6 million in net operating assets and liabilities, partially offset by $12.1 million in non-cash charges[491]. - In 2021, cash used in operating activities was $122.2 million, with a net loss of $116.7 million and a net change of $19.9 million in net operating assets and liabilities, partially offset by $14.5 million in non-cash charges[492]. - Cash provided by financing activities in 2022 was $6.4 million, mainly from $5.4 million in net proceeds from the sale of common stock[494]. - Cash provided by financing activities in 2021 was $111.5 million, primarily from $107.6 million in net proceeds from a follow-on offering[495]. Research and Development - HPN217 demonstrated an overall response rate (ORR) of 77% (10/13) at the highest step doses (12 and 24 mg), with 86% (18/21) of responders remaining on study treatment[426]. - The Phase 1 clinical trial of HPN217 included 62 patients treated with doses up to 24 mg/week, with the most frequent treatment-emergent adverse events being anemia (44%), fatigue (32%), and transient cytokine release syndrome (CRS) (27%)[425]. - HPN328 is currently enrolling patients in a Phase 1/2 clinical trial, with 39% of enrolled patients showing a decrease in sum of target lesion diameters[432]. - The company plans to present interim data for HPN328 in the second half of 2023 and aims to identify a recommended Phase 2 dose by the end of 2023[435]. - Research and development expenses are expected to increase substantially as the company advances its product candidates through clinical trials and regulatory approval processes[464]. - Research and development expenses rose by $9.3 million, or 13%, to $81.4 million in 2022, driven by a $7.2 million increase in product and clinical development expenses[471]. - Research and development expenses consist of personnel costs and non-personnel costs, with significant judgments made in estimating accrued liabilities[513]. Corporate Actions - A corporate restructuring in November 2022 resulted in a workforce reduction of approximately 45%, with estimated costs of up to $1.8 million for termination benefits[444]. - The company implemented a corporate restructuring in November 2022, reducing workforce by approximately 45% to focus on its clinical pipeline[481]. - In November 2022, the company announced a corporate restructuring expected to incur cash payments of up to approximately $1.1 million for termination benefits in the first half of 2023[497]. Revenue and Collaboration - The company has a global Development and Option Agreement with AbbVie for HPN217, which includes potential future payments totaling up to $430 million upon achievement of certain milestones[429]. - AbbVie made an upfront payment of $30.0 million and a development milestone payment of $50.0 million related to the HPN217 program[453]. - If AbbVie exercises its option for the HPN217 program, it will pay an option exercise fee of $200.0 million and up to $230.0 million in further milestone payments[453]. - The company recognized $24.4 million and $18.4 million of revenue from the Development and Option Agreement for the years ended 2022 and 2021, respectively[455]. - Under the Restated Collaboration Agreement, the company received an upfront payment of $20.0 million, with $7.5 million and $0.9 million recognized as revenue in 2022 and 2021, respectively[459]. - Collaboration and license revenue increased by $8.3 million, or 35%, to $31.9 million in 2022 compared to $23.7 million in 2021[470]. - The company has entered into collaboration and license agreements with AbbVie and Werewolf Therapeutics, generating revenue from non-refundable upfront license fees, milestone payments, and royalties on net sales[504]. Financial Position - As of December 31, 2022, the company had $53.1 million in cash and cash equivalents, with an accumulated deficit of $352.5 million[476]. - The company received approximately $11.2 million in net proceeds from the sale of common stock from October 2020 to December 31, 2022, and an additional $1.5 million in 2023[448]. - In March 2023, the company sold 25,000 shares of Series A Preferred Stock and warrants for a total gross proceeds of approximately $25.0 million[449]. - Deferred revenue under the Development and Option Agreement was $21.7 million as of December 31, 2022[455]. - Total operating expenses decreased by $40.2 million, or 29%, to $100.2 million in 2022 from $140.4 million in 2021, primarily due to a $50.0 million decrease in litigation settlement[474]. - Interest income surged by $0.5 million, or 223%, to $0.8 million in 2022, attributed to higher interest yields on cash and marketable securities[475]. Accounting and Compliance - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards until certain conditions are met[520]. - The company expects to utilize the extended transition period for any new or revised accounting standards while remaining an emerging growth company[521]. - The company will maintain its status as an emerging growth company until it reaches total annual gross revenues of at least $1.235 billion or the market value of its common stock held by non-affiliates exceeds $700 million[522]. - Stock-based compensation expense for all awards is recognized based on estimated fair values on the grant date, using the Black-Scholes model[515].