Tempest Therapeutics(TPST) - 2023 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $7.6 million for the three months ended March 31, 2023, compared to a net loss of $8.5 million for the same period in 2022, reflecting a decrease of approximately 10.1%[75]. - The total operating loss for the three months ended March 31, 2023, was $7.6 million, down from $8.2 million in the prior year period, indicating a reduction of approximately 7.1%[83]. - Cash used in operating activities for Q1 2023 was $8.3 million, compared to $7.1 million in Q1 2022, reflecting a net loss of $7.6 million in 2023 versus $8.5 million in 2022[96][99]. - Cash provided by financing activities in Q1 2023 was $44 thousand, a significant decrease from $1.4 million in Q1 2022[101]. Research and Development - Research and development expenses decreased by $0.4 million to $4.7 million for the three months ended March 31, 2023, primarily due to reduced costs from contract research organizations[86]. - The company plans to continue leveraging its drug development experience to identify new targets for its pipeline[72]. - TPST-1120 demonstrated a 74.4% relative improvement in unconfirmed objective response rate (30% vs. 17.2%) compared to the control arm in a Phase 1b/2 trial for advanced hepatocellular carcinoma[73]. Cash Position and Funding Needs - As of March 31, 2023, the company had cash and cash equivalents of $22.9 million and an accumulated deficit of $143.4 million[89]. - As of March 31, 2023, the company has $7.5 million in material cash requirements due within 12 months, with expected increases in expenses related to ongoing development activities[105]. - The company anticipates needing substantial additional funding for continuing operations, particularly for clinical trials and research and development expenditures[103]. - Future funding requirements will depend on various factors, including operational needs and capital requirements for clinical trials[103]. - The company plans to finance future cash needs primarily through additional equity issuance, borrowings, and strategic alliances, which may dilute existing stockholder ownership[106]. Expenses - General and administrative expenses decreased by $0.1 million to $2.9 million for the three months ended March 31, 2023, primarily due to a reduction in consulting and professional services[87]. - Cash used in investing activities for Q1 2023 was $46 thousand, compared to $3 thousand in Q1 2022, primarily for property and equipment purchases[100]. - Non-cash adjustments in operating activities for Q1 2023 totaled $1.1 million, while in Q1 2022, they were $0.8 million[97][99]. Debt and Financing - The term loan from Oxford Finance, amounting to $35 million, has an annual floating interest rate of 7.15% and matures on August 1, 2025[93]. - The company completed a PIPE financing in April 2022, raising approximately $14.5 million from the sale of 3,149,912 shares at $2.36 per share and pre-funded warrants for 3,206,020 shares at $2.359 each[95]. - The company has raised a total of $164.4 million through capital securities sales since inception[74]. Company Classification - The company remains classified as a smaller reporting company, allowing it to take advantage of scaled disclosures[109].