Werewolf Therapeutics(US:HOWL)2022-08-11 11:04Revenue and Collaboration Agreements - The company has not generated any revenue from product sales to date, but recognized $4.1 million in revenue related to a Collaboration Agreement for the six months ended June 30, 2022[102]. - The company received an upfront payment of $15.0 million in April 2022 under a collaboration agreement with Jazz Pharmaceuticals, with potential milestone payments of up to $520.0 million[94]. - The company received an upfront payment of $15.0 million in April 2022 under a Collaboration Agreement with Jazz, with potential additional milestone payments totaling up to $1.26 billion[124]. - Collaboration revenue for the three months ended June 30, 2022, was $4.1 million, unchanged from 2021[112]. Financial Performance and Expenses - As of June 30, 2022, the company had an accumulated deficit of $282.8 million, with expectations of continued substantial and increasing expenses and net losses in the foreseeable future[96]. - Total operating expenses for the three months ended June 30, 2022, increased to $19.1 million from $11.0 million in 2021, representing an increase of $8.2 million[112]. - Research and development expenses for the three months ended June 30, 2022, were $13.9 million, up from $7.3 million in 2021, an increase of $6.6 million[113]. - General and administrative expenses for the three months ended June 30, 2022, were $5.2 million, compared to $3.7 million in 2021, an increase of $1.5 million[116]. - Net loss for the three months ended June 30, 2022, was $14.6 million, compared to a net loss of $10.9 million in 2021, an increase of $3.7 million[112]. - For the six months ended June 30, 2022, total operating expenses were $34.5 million, up from $18.4 million in 2021, an increase of $16.1 million[118]. - Research and development expenses for the six months ended June 30, 2022, were $24.8 million, compared to $12.1 million in 2021, an increase of $12.8 million[119]. - General and administrative expenses for the six months ended June 30, 2022, were $9.7 million, compared to $6.3 million in 2021, an increase of $3.3 million[121]. - The company has incurred an accumulated deficit of $282.8 million through June 30, 2022, and expects to continue incurring substantial and increasing expenses and net losses for the foreseeable future[133]. Cash Flow and Funding - Existing cash and cash equivalents of $145.7 million are expected to fund operations through at least the fourth quarter of 2023, but this estimate is based on assumptions that may prove incorrect[134]. - Net cash used in operating activities for the six months ended June 30, 2022, was $14.3 million, a decrease of approximately $3.5 million compared to $17.8 million for the same period in 2021[139]. - Net cash provided by financing activities for the six months ended June 30, 2022, was $3.6 million, a significant decrease of $106.1 million compared to $109.7 million for the same period in 2021[141]. - The company has financed operations primarily through proceeds from convertible promissory notes and equity securities, raising a total of $109.2 million from its IPO[95]. - The company will require further funding to complete the development of WTX-124, WTX-330, or any other product candidate[136]. Research and Development Plans - The company expects research and development expenses to continue to increase substantially as it initiates and progresses clinical trials for WTX-124 and WTX-330[106]. - External development costs for the six months ended June 30, 2022, totaled $14.3 million, compared to $7.0 million for the same period in 2021, indicating a significant increase in R&D spending[106]. - The company plans to initiate a Phase 1/1b clinical trial for WTX-124 and submit an IND for WTX-330 in the second half of 2022[93]. - The company plans to increase research and development expenses as it continues preclinical and clinical development of product candidates[132]. - The company may consider entering into collaboration arrangements or selectively partnering for clinical development and commercialization[137]. Operational Challenges - The company has not experienced material financial statement impacts from the COVID-19 pandemic to date, but the future impact remains uncertain[100]. - The company expects general and administrative expenses to increase in the future due to an increase in personnel headcount to support research and development activities[109]. - The company expects to face inflationary pressures that could adversely affect its operations in the future[132]. Deferred Revenue and Lease Obligations - As of June 30, 2022, the company had $13.1 million in deferred revenue, classified as current or net of current portion[102]. - Total estimated base rent payments over the remaining term of the lease for office and laboratory space are approximately $18.9 million[145]. - The net cash used in investing activities for the six months ended June 30, 2022, was $1.1 million, compared to nearly zero for the same period in 2021, primarily due to cash paid for leasehold improvements[140].