Matinas BioPharma(MTNB) - 2022 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements The company's unaudited condensed consolidated financial statements for Q1 2022 show a net loss of $6.0 million Condensed Consolidated Balance Sheets The balance sheet shows total assets decreased to $55.8 million and stockholders' equity fell to $47.7 million by March 31, 2022 Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $19,328 | $21,030 | | Marketable securities | $24,542 | $28,592 | | Total current assets | $45,119 | $50,993 | | Total assets | $55,785 | $61,326 | | Liabilities & Equity | | | | Total current liabilities | $3,768 | $4,349 | | Total liabilities | $8,103 | $8,833 | | Total stockholders' equity | $47,682 | $52,493 | | Total liabilities and stockholders' equity | $55,785 | $61,326 | Condensed Consolidated Statements of Operations and Comprehensive Loss The company reported a Q1 2022 net loss of $6.0 million, widened by increased research and development expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Revenue | $0 | $33 | | Research and development expense | $4,978 | $3,241 | | General and administrative expense | $2,744 | $3,145 | | Loss from operations | ($7,722) | ($6,353) | | Net loss | ($5,978) | ($4,956) | | Net loss per share - basic and diluted | ($0.03) | ($0.03) | Condensed Consolidated Statements of Cash Flow Net cash used in operations was $4.8 million, with significantly lower cash provided by investing and financing activities Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | ($4,756) | ($4,651) | | Net cash provided by investing activities | $2,961 | $8,817 | | Net cash provided by financing activities | $93 | $6,785 | | Net (decrease)/increase in cash | ($1,702) | $10,950 | Notes to Unaudited Condensed Consolidated Financial Statements Notes disclose a history of losses, sufficient cash through 2023, and key collaborations with BioNTech and Thermo Fisher - The company has a history of net losses, with an accumulated deficit of approximately $137.6 million as of March 31, 2022[22] - Management believes cash, cash equivalents, and marketable securities of $43.9 million are sufficient to fund operations through 2023[25] - On March 7, 2022, the company entered an agreement with Thermo Fisher Scientific for scale-up and commercial manufacturing of MAT2203, with estimated fees of approximately $7.7 million over a two-year period[66] - Subsequent to the quarter end, on April 8, 2022, the company entered into an exclusive research collaboration with BioNTech SE, receiving a $2.75 million exclusivity fee[67] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses its LNC delivery platform, clinical candidates, and financial results, confirming liquidity through 2023 Overview The company is a clinical-stage biopharmaceutical firm focused on its lipid nanocrystal (LNC) delivery platform - The company's core focus is its lipid nanocrystal (LNC) delivery platform technology for intracellular delivery of nucleic acids and small molecules[73] - Key strategic elements include advancing clinical assets MAT2203 and MAT2501, expanding the LNC platform, and leveraging collaborations with partners like Genentech and BioNTech[77] Results of Operations R&D expenses increased by $1.8 million while G&A expenses decreased by $0.4 million compared to Q1 2021 Comparison of Results for the Three Months Ended March 31 (in thousands) | Item | 2022 | 2021 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $0 | $33 | ($33) | No contract research revenue in Q1 2022 | | Research and development | $4,978 | $3,241 | $1,737 | Increased clinical trial activity and higher compensation | | General and administrative | $2,744 | $3,145 | ($401) | Non-recurring compensation expense in Q1 2021 | Liquidity and Capital Resources The company's $43.9 million in cash and securities is expected to fund operations and capital expenditures through 2023 - The company's cash, cash equivalents, and marketable securities totaled approximately $43.9 million as of March 31, 2022[95] - Existing cash is expected to be sufficient to fund operating expenses and capital expenditure requirements through 2023[100] - Financing activities in Q1 2022 provided only $0.1 million, a sharp decrease from $6.8 million in Q1 2021[99] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section is not applicable to the company for the reporting period - The company has determined that quantitative and qualitative disclosures about market risk are not applicable[105] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2022[106] - No changes in internal control over financial reporting occurred during the first quarter of 2022 that have materially affected, or are reasonably likely to materially affect, internal controls[108] PART II - OTHER INFORMATION Item 1. Legal Proceedings The company reported no legal proceedings during the period - The company has no legal proceedings to report[109] Item 1A. Risk Factors No material changes were made to risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes were reported from the risk factors set forth in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021[110] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - The company reports no unregistered sales of equity securities[111]