Puretech Health(US:PRTC)2022-08-25 10:08Financial Performance - Total revenue for the six months ended June 30, 2022, was $7.0 million, compared to $5.8 million for the same period in 2021, marking an increase of approximately 19.5%[126]. - The company incurred a loss of $23.5 million for the period ended June 30, 2022, compared to a loss of $77.6 million for the same period in 2021, indicating a reduction in losses[126]. - Net loss for the six months ended June 30, 2022, was $28,344,000, compared to a net loss of $75,395,000 for the same period in 2021, representing a 62.4% improvement[133]. - Total comprehensive income for the period ended June 30, 2022, was a loss of $28,880,000, compared to a loss of $77,553,000 in 2021, reflecting a 62.9% reduction in comprehensive losses[133]. - The Group reported a net loss of $23.472 million for the six months ended June 30, 2022, compared to a net loss of $28.880 million in the same period of 2021, showing an improvement of 18.9%[159]. Cash Flow and Liquidity - As of June 30, 2022, the company had consolidated cash and cash equivalents of $365.9 million, down from $465.7 million as of June 30, 2021, representing a decrease of approximately 21.4%[116][128]. - Net cash used in operating activities for the six months ended June 30, 2022, was $87.2 million, an increase of $21.9 million compared to $65.4 million for the same period in 2021, reflecting higher operating losses primarily due to increased research and development activities[119]. - Cash flows from operating activities resulted in a net cash used of $87,249,000 for the first half of 2022, compared to $65,366,000 in the same period of 2021, indicating a 33.4% increase in cash outflow[133]. - Cash and cash equivalents at the end of the period were $365,910,000, down from $439,766,000 at the end of June 2021, marking a decrease of 16.7%[134]. - The company expects its existing financial assets will be sufficient to fund operations and capital expenditures into the first quarter of 2026, despite ongoing net operating losses typical for pre-revenue biotechnology companies[122]. Operating Expenses - Operating loss for the six months ended June 30, 2022, was $101.2 million, compared to a loss of $68.1 million for the same period in 2021, indicating a significant increase in operating expenses[126]. - Research and development expenses totaled $84.579 million for the six months ended June 30, 2022, compared to $20.877 million in 2021, indicating a significant increase of 304.5%[159]. - Total operating expenses reached $73.92 million, up from $31.58 million, indicating a year-over-year increase of 134%[160]. Investments and Fair Value - The company experienced a gain on investments held at fair value of $59,019,000 in 2022, contrasting with a loss of $74,415,000 in 2021, indicating a significant turnaround[133]. - The fair value of investments held at fair value decreased to $367.95 million as of June 30, 2022, down from $493.89 million at the beginning of the year, reflecting a decline of 25.5%[161]. - The Group recorded a loss of $29.9 million on investments held at fair value during the six months ended June 30, 2022, which was reflected in the Condensed Consolidated Statements of Comprehensive Income/(Loss)[233]. - The balance of investments held at fair value as of June 30, 2022, was $142.394 million, down from $239.533 million at the beginning of the year, after accounting for a loss of $(30.217) million[234]. Shareholder Equity and Stock Activity - The total equity of the parent company as of June 30, 2022, was $576,024,000, compared to $561,372,000 at the end of June 2021, reflecting a 2.6% increase[132]. - The company commenced a $50 million share repurchase program, with the first tranche amounting to $25 million[217]. - As of June 30, 2022, the company had 288,611,120 common shares outstanding, including 2,010,269 shares repurchased and held in treasury[219]. - The company reported a cash outflow of $4,267,000 from the purchase of treasury stock in 2022, with no such outflow reported in 2021[133]. Tax and Financing - The Group recorded a consolidated tax provision of $(32.5) million benefit for the six months ended June 30, 2022, representing an effective tax rate of 58.1%[277]. - The company incurred finance costs of $56,320,000 in the first half of 2022, compared to a net income of $16,252,000 in the same period of 2021, indicating a significant shift in financial performance[133]. - Total finance income for the six months ended June 30, 2022, was $630,000, compared to $119,000 in 2021, representing a significant increase of 429%[209]. - The total finance costs decreased from $2,755,000 in 2021 to $1,961,000 in 2022, a reduction of approximately 29%[209]. Management and Compensation - Key management personnel compensation for the six months ended June 30, 2022, totaled $(337) thousand, reflecting a net income in share-based compensation due to a decrease in RSU value[266]. - The Group incurred share-based payment expenses of $3.6 million for the six months ended June 30, 2022, down from $5.6 million in the same period of 2021[189]. - The Group's share-based payment expense for stock options was $4.5 million for the six months ended June 30, 2022[203].