Acumen Pharmaceuticals(ABOS) - 2024 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited financial statements and management's analysis for the reporting period Financial Statements (Unaudited) Acumen Pharmaceuticals reported an increased net loss of $14.9 million in Q1 2024, driven by higher operating expenses, ending the quarter with $301.0 million in total assets Condensed Balance Sheets As of March 31, 2024, total assets were $301.0 million, slightly down from year-end 2023, with a decrease in cash and an increase in marketable securities Condensed Balance Sheets (in thousands) | Balance Sheet Items | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $46,930 | $66,886 | | Marketable securities | $249,690 | $239,189 | | Total assets | $300,967 | $310,125 | | Liabilities & Equity | | | | Total liabilities | $38,933 | $43,152 | | Total stockholders' equity | $262,034 | $266,973 | Condensed Statements of Operations and Comprehensive Loss The company reported a net loss of $14.9 million for Q1 2024, an increase from the prior year, primarily due to higher R&D and G&A expenses, partially offset by increased interest income Condensed Statements of Operations and Comprehensive Loss (in thousands) | Statement of Operations | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Research and development | $12,449 | $8,713 | | General and administrative | $5,325 | $4,422 | | Total operating expenses | $17,774 | $13,135 | | Loss from operations | ($17,774) | ($13,135) | | Interest income | $4,005 | $1,832 | | Interest expense | ($1,000) | $0 | | Net loss | ($14,873) | ($11,307) | | Net loss per share | ($0.25) | ($0.28) | Condensed Statements of Cash Flows Net cash used in operating activities significantly increased to $17.9 million in Q1 2024, reflecting the higher net loss, with financing activities providing $7.1 million Condensed Statements of Cash Flows (in thousands) | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | ($17,859) | ($10,175) | | Net cash used in investing activities | ($9,203) | ($41,927) | | Net cash provided by financing activities | $7,107 | $0 | | Net change in cash | ($19,955) | ($52,102) | | Cash at end of period | $47,164 | $77,999 | Notes to Condensed Financial Statements The notes detail the company's focus on sabirnetug for Alzheimer's, its financial runway, and key financing and collaboration agreements - The company is focused on advancing its drug candidate, sabirnetug, in the Phase 2 portion of a Phase 2/3 clinical trial called "ALTITUDE-AD" for Alzheimer's disease[26] - Management believes the company has sufficient cash to continue operating activities for beyond 12 months from the issuance of the financial statements, despite an accumulated deficit of $237.7 million as of March 31, 2024[28] - In November 2023, the company entered into a Loan and Security Agreement for a term loan facility of up to $50 million, borrowing an initial $30 million, which includes a feature allowing lenders to convert up to $2.5 million of the loan into common stock[60][63] - The company entered into a license agreement with Halozyme in November 2023 to develop a subcutaneous formulation of sabirnetug, involving an upfront payment and future milestone and royalty payments[94][95] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the advancement of sabirnetug in clinical trials, increased operating expenses, and the company's financial runway extending into the first half of 2027 - The company's lead drug candidate, sabirnetug, is being advanced in the ALTITUDE-AD study, a Phase 2/3 clinical trial for early Alzheimer's disease, with the first patient dosed in May 2024[101][103] - Based on the current operating plan, the company expects its existing cash, cash equivalents, and marketable securities of $296.6 million (as of March 31, 2024) to be sufficient to fund operations into the first half of 2027[111][125] Operating Expenses (in thousands) | Expense Category | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Research and development | $12,449 | $8,713 | 43% | | General and administrative | $5,325 | $4,422 | 20% | | Total operating expenses | $17,774 | $13,135 | 35% | - In January 2024, the company raised net proceeds of $7.9 million by issuing 2,068,246 shares of common stock under its at-the-market (ATM) offering program[108][124] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as the company qualifies as a smaller reporting company - Disclosure is not required as the company is a smaller reporting company[145] Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Management concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[147] - No material changes to the company's internal control over financial reporting occurred during the fiscal quarter ended March 31, 2024[148] PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and required exhibits Legal Proceedings The company is not currently a party to any material legal proceedings - The company is not subject to any material legal proceedings[153] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors as described in the Annual Report on Form 10-K for the year ended December 31, 2023[154] Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities The company reported no unregistered sales or issuer purchases of equity securities, with IPO proceeds used as planned - There has been no material change in the planned use of proceeds from the company's IPO[154] Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - The report includes standard exhibits such as CEO/CFO certifications (Sections 302 and 906) and XBRL data files[157]