Immunome(IMNM) - 2022 Q3 - Quarterly Report

PART I – FINANCIAL INFORMATION Presents unaudited financial statements, management's discussion, market risk, and controls for the period Financial Statements (Unaudited) Presents unaudited condensed financial statements for Immunome, Inc., detailing financial position, operations, and cash flows Condensed Balance Sheets Details assets, liabilities, and equity, showing decreased cash and total assets, and increased accumulated deficit due to ongoing net losses Condensed Balance Sheets | Account | Sep 30, 2022 ($ thousands) | Dec 31, 2021 ($ thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 27,078 | 49,229 | | Total current assets | 29,239 | 56,638 | | Total assets | 30,546 | 57,925 | | Liabilities & Equity | | | | Total liabilities | 7,462 | 9,740 | | Accumulated deficit | (108,215) | (79,105) | | Total stockholders' equity | 23,084 | 48,185 | Condensed Statements of Operations Reports a significant increase in net loss to $29.1 million, primarily due to higher research and development expenses Condensed Statements of Operations | Metric | Nine Months Ended Sep 30, 2022 ($ thousands) | Nine Months Ended Sep 30, 2021 ($ thousands) | | :--- | :--- | :--- | | Research and development | 19,020 | 9,725 | | General and administrative | 10,094 | 7,635 | | Total operating expenses | 29,114 | 17,360 | | Loss from operations | (29,114) | (17,360) | | Net loss | (29,110) | (16,859) | | Net loss per share | (2.45) | (1.49) | Condensed Statements of Cash Flows Shows a near doubling of cash used in operations and a significant decrease in cash from financing activities, resulting in a net cash decrease Condensed Statements of Cash Flows | Cash Flow Activity | Nine Months Ended Sep 30, 2022 ($ thousands) | Nine Months Ended Sep 30, 2021 ($ thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (22,007) | (11,421) | | Net cash used in investing activities | (176) | (65) | | Net cash provided by financing activities | 32 | 27,963 | | Net (decrease) increase in cash | (22,151) | 16,477 | | Cash at end of period | 27,178 | 56,343 | Notes to Condensed Financial Statements Provides detailed context on the company's financial position, operations, capital raising, and significant transactions like warrant modification - The company is a clinical-stage biopharmaceutical firm focusing on oncology and infectious diseases, including COVID-19, and has incurred net losses since inception, expecting them to continue[21][23] - As of September 30, 2022, the company had $27.1 million in cash and cash equivalents, believed to be sufficient to fund operations for at least 12 months from the report's filing date[25] - In July 2020, the company entered into a U.S. Department of Defense (DoD) agreement for up to $17.6 million in funding for its COVID-19 antibody therapeutic development, with $17.4 million received as of September 30, 2022[59][62] - On September 2, 2022, the company modified its Series B Warrants, reducing the exercise price from $45.00 to $10.00 per share, resulting in a non-cash deemed dividend of $0.6 million[83] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, liquidity, and operational progress, highlighting increased net loss, program advancements, and future funding needs - The company's lead COVID-19 program, IMM-BCP-01, initiated a Phase 1b study in June 2022, with topline safety and PK data expected by the end of 2022[108][109] - The lead oncology program, IMM-ONC-01, targeting IL-38, is advancing towards clinical trials, with plans to submit an IND application by mid-2023[110] Expense Category Changes | Expense Category | Nine Months Ended Sep 30, 2022 ($M) | Nine Months Ended Sep 30, 2021 ($M) | Change ($M) | Primary Driver of Change | | :--- | :--- | :--- | :--- | :--- | | Research & Development | 19.0 | 9.7 | +9.3 | $12.7M reduction in contra-R&D expense from DoD contract, partially offset by lower outsourced research costs | | General & Administrative | 10.1 | 7.6 | +2.5 | $2.5M increase in personnel-related costs due to higher headcount and stock-based compensation | - The company expects its cash of $27.1 million as of September 30, 2022, will be sufficient to fund operations for at least 12 months from the filing date, but substantial additional financing will be required for long-term strategy[107][142] Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Immunome, Inc. is not required to provide quantitative and qualitative market risk disclosures - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[172] Controls and Procedures Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of September 30, 2022, the company's disclosure controls and procedures were effective[175] - No material changes in internal control over financial reporting occurred during the quarter ended September 30, 2022[176] PART II – OTHER INFORMATION Covers legal proceedings, risk factors, equity sales, and required exhibits for the reporting period Legal Proceedings The company reports it is not currently a party to any material legal proceedings - The company is not currently involved in any material legal proceedings[178] Risk Factors As a smaller reporting company, Immunome, Inc. is not required to provide risk factor disclosures - The company is not required to provide risk factor disclosures in its Form 10-Q as it is a smaller reporting company[179] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - There were no unregistered sales of equity securities or use of proceeds to report for the period[180] Exhibits Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files - Exhibits filed with the report include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[186]