Immunome(IMNM) - 2022 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION Financial Statements (Unaudited) Immunome, Inc.'s unaudited condensed financial statements as of June 30, 2022, reflect a $20.6 million net loss and $34.6 million cash position Condensed Balance Sheets Total assets decreased to $39.0 million by June 30, 2022, driven by reduced cash, while stockholders' equity declined to $30.3 million Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $34,649 | $49,229 | | Total current assets | $37,598 | $56,638 | | Total assets | $39,019 | $57,925 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $8,618 | $9,728 | | Total liabilities | $8,742 | $9,740 | | Accumulated deficit | $(99,682) | $(79,105) | | Total stockholders' equity | $30,277 | $48,185 | Condensed Statements of Operations Net loss for the six months ended June 30, 2022, more than doubled to $20.6 million, primarily due to increased R&D expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $5,717 | $3,233 | $13,795 | $5,212 | | General and administrative | $3,209 | $2,507 | $6,785 | $4,425 | | Loss from operations | $(8,926) | $(5,740) | $(20,580) | $(9,637) | | Net loss | $(8,924) | $(5,241) | $(20,577) | $(9,139) | | Net loss per share | $(0.74) | $(0.46) | $(1.70) | $(0.83) | Condensed Statements of Cash Flows Net cash used in operating activities significantly increased to $14.4 million for the six months ended June 30, 2022, reflecting higher net loss Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(14,436) | $(7,276) | | Net cash used in investing activities | $(176) | $(39) | | Net cash provided by financing activities | $32 | $27,378 | | Net (decrease) increase in cash | $(14,580) | $20,063 | Notes to Condensed Financial Statements Notes detail the company's biopharmaceutical focus, liquidity challenges, $99.7 million accumulated deficit, and DoD contract funding - The company is a biopharmaceutical firm focused on discovering and developing antibody therapeutics for oncology and infectious diseases, including COVID-19[21] - As of June 30, 2022, the company had an accumulated deficit of $99.7 million and expects to generate losses for the foreseeable future[23][25] - Its cash and cash equivalents of $34.6 million are expected to fund operations for at least 12 months from the filing date[23][25] - The company has a contract with the Department of Defense (DoD) for its COVID-19 antibody therapeutic, with total funding of $17.6 million[58][62] - As of June 30, 2022, $17.4 million had been received from the DoD contract[58][62] - The company adopted the new lease accounting standard, ASC 842, on January 1, 2022, resulting in the recognition of a right-of-use asset and lease liability of $0.2 million[56] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's clinical transition, increased operating losses from higher R&D, and liquidity needs for pipeline advancement Overview and Lead Programs The company is a clinical-stage biopharmaceutical firm with lead programs IMM-BCP-01 (COVID-19) and IMM-ONC-01 (oncology) - The company's Phase 1b study of IMM-BCP-01 for patients with SARS-CoV-2 is underway, with topline data anticipated in the second half of 2022[105] - For the lead oncology program, IMM-ONC-01, the company plans to submit an IND application in the second half of 2022[107] - The company's discovery engine is expected to advance one to two programs into IND-enabling studies per year[108] Results of Operations Operating expenses significantly increased, driven by an $8.6 million rise in net R&D and $2.4 million in G&A expenses Comparison of Operating Results (in thousands) | Expense Category | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Research and development | $13,795 | $5,212 | $8,583 | | General and administrative | $6,785 | $4,425 | $2,360 | | Total operating expenses | $20,580 | $9,637 | $10,943 | - The increase in R&D expenses for the first six months of 2022 was primarily due to a $7.4 million reduction in contra-R&D expense related to the DoD agreement and a $1.2 million increase in personnel costs[136] - The increase in G&A expenses for the first six months of 2022 was mainly driven by a $2.3 million rise in personnel-related costs from increased headcount and stock-based compensation[138] Liquidity and Capital Resources The company held $34.6 million cash as of June 30, 2022, sufficient for 12 months, but requires additional capital for R&D - The company had $34.6 million in cash as of June 30, 2022, which is expected to fund operations for at least 12 months from the filing date[142][152] Summary of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Cash used in operating activities | $(14,436) | $(7,276) | | Cash used in investing activities | $(176) | $(39) | | Cash provided by financing activities | $32 | $27,378 | - The company has an Open Market Sale Agreement (ATM) in place, allowing it to sell up to $75.0 million in common shares, but has not yet sold any shares under this agreement[142] Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Immunome, Inc. is not required to provide market risk disclosures - As a smaller reporting company, Immunome, Inc. is not required to provide quantitative and qualitative disclosures about market risk[169] Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2022, with no material changes - Management concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective[171] - No material changes were made to the internal control over financial reporting during the quarter ended June 30, 2022[172] PART II – OTHER INFORMATION Legal Proceedings The company is not currently involved in any material legal proceedings - The company is not currently involved in any material legal proceedings[174] Risk Factors As a smaller reporting company, Immunome, Inc. is not required to provide risk factor information - As a smaller reporting company, Immunome, Inc. is not required to provide this information[175] Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds were reported for the period - There were no unregistered sales of equity securities or use of proceeds to report for the period[176] Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents and certifications - Exhibits filed include corporate governance documents, a director compensation policy, and required Sarbanes-Oxley certifications[181]