Puretech Health(PRTC) - 2023 Q4 - Annual Report

Financial Position - As of December 31, 2023, the company had cash and cash equivalents of $191.1 million and short-term investments of $136.1 million, totaling $326.0 million in PureTech Level cash[174]. - The company believes existing financial assets will be sufficient to fund operations and capital expenditures into at least 2027[183]. - The company has no committed sources of capital beyond existing financial assets, indicating potential future funding needs[186]. - Cash and cash equivalents of $191.1 million and short-term investments of $136.1 million were reported, with a total of $326.0 million in PureTech Level cash[194]. Cash Flow - Net cash used in operating activities decreased to $105.9 million in 2023 from $178.8 million in 2022, a reduction of $72.9 million attributed to lower operating losses[177]. - Net cash provided by investing activities increased to $69.0 million in 2023, compared to a net cash outflow of $107.2 million in 2022, resulting in a $176.2 million improvement[179]. - Net cash provided by financing activities was $78.1 million in 2023, an increase of $108.0 million from a net cash outflow of $29.8 million in 2022, primarily due to a $100.0 million upfront payment from Royalty Pharma[181]. - The company reported a net increase in cash and cash equivalents of $41.2 million for the year ended December 31, 2023, compared to a decrease of $315.8 million in 2022[176]. - The company’s cash flow fluctuations are influenced by various factors, including operating losses and investment activities[174]. Investments - Investments held at fair value increased by $65.9 million to $317.8 million as of December 31, 2023, primarily due to a $73.5 million increase in the value of Karuna shares[189]. - The fair value of investments in common shares of Karuna, Vor, and Akili was $280.7 million, $6.0 million, and $6.1 million, respectively, as of December 31, 2023[199]. - A 10.0 percent adverse change in the market price of Karuna, Vor, and Akili common shares would result in a loss of $29.3 million[200]. Liabilities - Non-current liabilities increased by $126.2 million to $184.4 million, driven by a $100.0 million non-refundable initial payment from Royalty Pharma[191]. - Trade and other payables decreased by $10.7 million to $44.1 million, reflecting the deconsolidation of Vedanta[192]. - Preferred share liability decreased by $27.2 million, primarily due to a $24.6 million decrease from the deconsolidation of Vedanta[193]. Future Outlook - The company expects to incur substantial additional expenditures to support ongoing and future activities, anticipating continued net operating losses for the foreseeable future[184]. - The company does not expect significant effects on operating results or cash flows from changes in market interest rates due to the conservative nature of its investment portfolio[194]. - The company maintains a low exposure to credit risk due to a limited number of counterparties and high credit quality of these counterparties[203].