Workforce Reduction - The company reduced its workforce by approximately 40% in November 2022 and by an additional 70% in March 2023 as part of its restructuring plans[84][98]. Financial Performance - Research and development expenses for Q2 2023 were $(0.4) million, a decrease of 104% compared to $11.0 million in Q2 2022[90]. - General and administrative expenses for Q2 2023 were $3.5 million, down 29% from $4.9 million in Q2 2022[93]. - Total operating expenses for the six months ended June 30, 2023, were $18.2 million, a decrease of 42% compared to $31.2 million for the same period in 2022[88]. - The company recorded an impairment charge of $3.4 million on property and equipment for the six months ended June 30, 2023[95]. - The net loss for the six months ended June 30, 2023, was $16.3 million, adjusted for non-cash items, compared to a net loss of $31.0 million in the same period of 2022[105]. Restructuring and Future Plans - The company expects to incur additional restructuring charges of $1.8 million related to the March 2023 restructuring plan, with all charges expected to be paid by the end of Q1 2024[99]. - The company has suspended all research and development activities to conserve capital and focus on strategic alternatives[77]. - Future capital requirements will depend on various factors, including the completion of a merger and the development of new product candidates[109]. Cash Flow and Funding - Operating activities used $17.1 million in cash flows for the six months ended June 30, 2023, compared to $25.4 million in the same period of 2022, indicating a reduction in cash outflow[102]. - Cash provided by investing activities for the six months ended June 30, 2023, was $10.3 million, primarily from the maturities of available-for-sale securities, compared to cash used of $39.8 million in the same period of 2022[104][106]. - The company anticipates that existing cash and short-term investments will be sufficient to fund operations for at least 12 months following the filing date of the report[87]. - The company expects its existing cash resources to fund operations for at least 12 months following the filing date, but may need additional funds sooner than planned[108]. Merger and Stock Sales - The merger agreement with Neurogene Inc. will result in pre-Merger Neurogene stockholders owning approximately 84% of the combined company[80]. - As of March 20, 2023, the company is subject to limitations on raising funds through the sale of common stock due to SEC regulations[103]. - The company has not made any sales of common stock under the ATM facility established in November 2021, which allows for an aggregate offering price of up to $40.0 million[103]. Revenue Generation - The company has not generated product revenue or achieved profitability since inception and anticipates continued net losses[108]. - The company plans to finance operations through equity sales, debt financings, or collaborations, as it currently does not generate significant revenue from product sales[86]. Interest Income - Interest income for the three months ended June 30, 2023, was $1.0 million, up from $0.2 million in the same period of 2022, reflecting a significant increase due to higher interest rates and U.S. treasury securities purchases[101].
Aquinox(NLTX) - 2023 Q2 - Quarterly Report