RAPT Therapeutics(RAPT) - 2021 Q3 - Quarterly Report

Financial Performance - As of September 30, 2021, the company had an accumulated deficit of $266.1 million and incurred net losses of $18.7 million for the three months ended September 30, 2021, compared to $14.6 million for the same period in 2020, representing a 27% increase in losses [65][80]. - Revenue for the three months ended September 30, 2021, was $966,000, a decrease of 37% from $1.5 million in the same period in 2020, entirely related to the Hanmi Agreement [80][81]. - Net loss for the nine months ended September 30, 2021, was $51.3 million, an increase of $11.1 million or 28% compared to a net loss of $40.2 million in 2020 [87]. - Revenue for the nine months ended September 30, 2021, was $3.1 million, a decrease of $683,000 or 18% compared to $3.7 million in 2020 [87]. Expenses - Research and development expenses increased by $2.8 million, or 22%, to $15.7 million for the three months ended September 30, 2021, driven by higher costs associated with drug candidates FLX475 and RPT193 [82][83]. - General and administrative expenses rose by $0.6 million, or 18%, to $3.8 million for the three months ended September 30, 2021, primarily due to increases in stock-based compensation and personnel costs [84]. - Research and development expenses increased by $8.1 million, or 23%, to $42.7 million for the nine months ended September 30, 2021, primarily due to increased costs related to FLX475 and RPT193 [89]. - General and administrative expenses rose by $2.2 million, or 24%, to $11.5 million for the nine months ended September 30, 2021, driven by higher stock-based compensation and insurance expenses [91]. Cash and Funding - Cash and cash equivalents and marketable securities totaled $210.8 million as of September 30, 2021, with working capital of $201.8 million, sufficient to fund operations for at least 12 months [66]. - Cash used in operating activities was $40.3 million for the nine months ended September 30, 2021, reflecting a net loss partially offset by non-cash charges [98]. - Cash provided by financing activities was $140.9 million for the nine months ended September 30, 2021, primarily from a public offering that generated $134.6 million in net proceeds [101]. - The company expects substantial additional funding will be needed to support ongoing operations and development strategies, with potential financing through equity or debt [68]. - The company expects to require additional capital to fund operations and development activities in the future [94]. - The company anticipates that its current cash and cash equivalents will be sufficient to fund operations for at least the next 12 months [93]. Clinical Development - Clinical trial costs are a significant component of research and development expenses, with expectations for substantial increases as the company advances its drug candidates through clinical development [67][74]. - The company has been impacted by the COVID-19 pandemic, which has slowed recruitment in clinical trials and limited operational capabilities [69]. - The company anticipates that general and administrative expenses will increase significantly in the coming years due to staff expansion and costs associated with being a public company [76].