Sera Prognostics(SERA) - 2022 Q1 - Quarterly Report

Special Note Regarding Forward-Looking Statements This section highlights forward-looking statements, subject to risks and uncertainties, and no obligation for public updates - The report contains forward-looking statements that are subject to risks, uncertainties, and assumptions, particularly those detailed in the 'Risk Factors' section[9] - Management cannot predict all risks or assess the full impact of factors that may cause actual results to differ materially from forward-looking statements[9] - The company undertakes no obligation to update publicly any forward-looking statements for any reason after the report date, except as required by law[10] PART I — FINANCIAL INFORMATION This part presents the unaudited condensed financial statements and management's discussion and analysis for Sera Prognostics, Inc Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed financial statements for Sera Prognostics, Inc., including the balance sheets, statements of operations and comprehensive loss, statements of convertible preferred stock and stockholders' equity (deficit), and statements of cash flows, along with their accompanying notes Condensed Balance Sheets This section provides a snapshot of the company's financial position as of March 31, 2022, and December 31, 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Assets | $134,865 | $147,029 | | Total Liabilities | $7,662 | $8,465 | | Total Stockholders' Equity | $127,203 | $138,564 | | Cash and cash equivalents | $64,080 | $58,932 | Condensed Statements of Operations and Comprehensive Loss This section details the company's revenue, expenses, and net loss for the three months ended March 31, 2022, and 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Revenue | $38 | $13 | | Total operating expenses | $12,338 | $6,038 | | Loss from operations | $(12,300) | $(6,025) | | Net loss | $(12,208) | $(6,359) | | Net loss per share, basic and diluted | $(0.40) | $(3.55) | Condensed Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) This section outlines changes in convertible preferred stock and stockholders' equity for the periods presented | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Additional paid-in capital | $306,532 | $305,212 | | Accumulated other comprehensive loss | $(656) | $(183) | | Accumulated deficit | $(178,676) | $(166,468) | | Total stockholders' equity | $127,203 | $138,564 | - Stock-based compensation expense was $1,222 thousand for the three months ended March 31, 2022, compared to $239 thousand for the same period in 2021[18] Condensed Statements of Cash Flows This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(9,557) | $(6,950) | | Net cash provided by (used in) investing activities | $14,634 | $(41) | | Net cash provided by financing activities | $71 | $53,474 | | Net increase in cash and cash equivalents | $5,148 | $46,483 | | Cash and cash equivalents at end of period | $64,080 | $60,016 | Notes to Condensed Financial Statements This section provides detailed explanations and disclosures supporting the condensed financial statements 1. Description of Business and Financial Condition This note describes Sera Prognostics' business, its focus on women's health, and its financial condition including accumulated deficit and liquidity - Sera Prognostics, Inc. is a women's health company utilizing proprietary proteomics and bioinformatics to discover, develop, and commercialize biomarker tests, with an initial focus on improving pregnancy outcomes[22] - The company has incurred net losses and negative cash flows from operations since inception, with an accumulated deficit of $178.7 million as of March 31, 2022[25] - As of March 31, 2022, the company had $64.1 million in cash and cash equivalents and $65.8 million in marketable securities, believing these resources are sufficient for at least 12 months of operating activities[26][27] 2. Significant Accounting Policies This note outlines the key accounting principles and policies used in preparing the unaudited condensed financial statements - The unaudited condensed financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial reporting, with certain information condensed or omitted[28] - The company adopted ASU 2016-02, Leases (Topic 842), effective January 1, 2022, using a modified retrospective method, resulting in a $0.5 million right-of-use asset and a $0.6 million lease liability[32][33] - As an emerging growth company, Sera Prognostics has elected to use the extended transition period for complying with new or revised financial accounting standards[39] 3. Cash, Cash Equivalents and Marketable Securities This note details the composition and fair value of the company's cash, cash equivalents, and marketable securities | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total cash, cash equivalents and marketable securities | $129,884 | $139,963 | Cash and Cash Equivalents (March 31, 2022): | Type | Fair Value (in thousands) | | :--- | :--- | | Cash | $133 | | Money market funds | $2,342 | | Commercial paper | $61,605 | | Total | $64,080 | Marketable Securities by Contractual Maturities (March 31, 2022): | Maturity | Fair Value (in thousands) | | :--- | :--- | | Due within one year | $43,467 | | Due after one year through five years | $22,337 | | Total | $65,804 | 4. Property and Equipment This note provides information on the company's property and equipment, net, and related depreciation and amortization expenses | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Property and equipment, net | $2,571 | $1,773 | - Depreciation and amortization expense was $0.2 million for both the three months ended March 31, 2022, and 2021[45] 5. Accrued and Other Current Liabilities This note details the components of accrued and other current liabilities, including accrued compensation and lease liabilities | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total accrued and other current liabilities | $2,536 | $3,885 | | Accrued compensation | $954 | $2,498 | | Operating lease liability, current portion | $446 | $0 | - Accrued compensation decreased by $1,544 thousand from December 31, 2021, to March 31,