Solid Biosciences(US:SLDB)2023-08-14 20:03PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents unaudited condensed consolidated financial statements, including balance sheets, operations, and cash flows, with detailed notes Condensed Consolidated Balance Sheets Total assets and stockholders' equity decreased from December 2022 to June 2023, driven by reduced cash and increased accumulated deficit Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $91,569 | $155,384 | $(63,815) | -41.07% | | Available-for-sale securities | $68,623 | $58,338 | $10,285 | 17.63% | | Total current assets | $167,475 | $219,638 | $(52,163) | -23.75% | | Total assets | $204,721 | $260,252 | $(55,531) | -21.34% | | Total current liabilities | $15,866 | $22,508 | $(6,642) | -29.51% | | Total liabilities | $40,993 | $48,586 | $(7,593) | -15.63% | | Total stockholders' equity | $163,728 | $211,666 | $(47,938) | -22.65% | | Accumulated deficit | $(617,437) | $(562,738) | $(54,699) | 9.72% | Condensed Consolidated Statements of Operations No collaboration revenue for Q2 and H1 2023; net losses remained substantial, driven by reduced collaboration revenue and increased interest income Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Collaboration revenue | $0 | $6,169 | $0 | $8,094 | | R&D expenses | $19,777 | $23,180 | $44,408 | $43,125 | | G&A expenses | $7,129 | $6,851 | $14,528 | $14,203 | | Restructuring Charges | $(63) | $1,520 | $(63) | $1,520 | | Total operating expenses | $26,843 | $31,551 | $58,873 | $58,848 | | Loss from operations | $(26,843) | $(25,382) | $(58,873) | $(50,754) | | Interest income, net | $1,949 | $293 | $3,627 | $347 | | Net loss | $(24,629) | $(25,092) | $(54,699) | $(50,420) | | Net loss per share | $(1.25) | $(3.33) | $(2.79) | $(6.71) | - Collaboration revenue decreased to $0 for both the three and six months ended June 30, 2023, from $6,169 thousand and $8,094 thousand respectively in the prior year, due to the completion of research and development services under the Ultragenyx Collaboration Agreement1052 - Net loss per share significantly improved from $(3.33) to $(1.25) for the three months ended June 30, 2023, and from $(6.71) to $(2.79) for the six months ended June 30, 2023, despite increased net loss, primarily due to a substantial increase in weighted average shares outstanding10 Condensed Consolidated Statements of Comprehensive Loss Comprehensive loss for Q2 and H1 2023 was primarily driven by net loss, with minor impact from unrealized gains on securities Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(24,629) | $(25,092) | $(54,699) | $(50,420) | | Unrealized gain (loss) on available-for-sale securities | $9 | $(71) | $82 | $(77) | | Comprehensive loss | $(24,620) | $(25,163) | $(54,617) | $(50,497) | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity decreased from December 2022 to June 2023, driven by net loss, partially offset by equity compensation and common stock sales Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric | Balance at December 31, 2022 | Six Months Ended June 30, 2023 | Balance at June 30, 2023 | | :-------------------- | :--------------------------- | :----------------------------- | :----------------------- | | Common Stock (shares) | 19,556,732 | 487,657 | 20,044,389 | | Common Stock (amount in thousands) | $20 | $0 | $20 | | Additional paid-in capital (in thousands) | $774,452 | $6,679 | $781,131 | | Accumulated other comprehensive income (loss) (in thousands) | $(68) | $82 | $14 | | Accumulated deficit (in thousands) | $(562,738) | $(54,699) | $(617,437) | | Total stockholders' equity (in thousands) | $211,666 | $(47,938) | $163,728 | - During the six months ended June 30, 2023, the company issued 420,000 shares of common stock through an 'at-the-market offering' sales agreement, generating net proceeds of $2,539 thousand1473 - Equity-based compensation contributed $4,062 thousand to additional paid-in capital for the six months ended June 30, 20231478 Condensed Consolidated Statements of Cash Flows Operating cash usage increased, investing cash usage decreased, and financing activities provided more cash, mainly from common stock issuance Cash Flow Activity (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(55,460) | $(43,068) | | Net cash used in investing activities | $(10,972) | $(21,852) | | Net cash provided by financing activities | $2,617 | $95 | | Net decrease in cash, cash equivalents and restricted cash | $(63,815) | $(64,825)