Turnstone Biologics (US:TSBX)2024-05-13 21:05Financial Performance - Net loss for Q1 2024 was $19,629,000, compared to a net income of $68,000 in Q1 2023, indicating a significant shift in financial performance[16]. - The company reported a comprehensive loss of $19,746,000 for Q1 2024, compared to a comprehensive income of $189,000 in Q1 2023[16]. - The net loss per share attributable to common stockholders for Q1 2024 was $(0.85), compared to $0.00 in Q1 2023[16]. - For the three months ended March 31, 2024, the company reported a net loss of $19.6 million compared to a net income of $0.1 million for the same period in 2023[29]. - The company incurred a net loss of $19.6 million for the three months ended March 31, 2024, with an accumulated deficit of $196.4 million[157]. - The company reported a decrease in net operating assets and liabilities of $1.4 million in Q1 2024, which partially offset the net loss[209]. Revenue and Expenses - Collaboration revenue for Q1 2024 was $0, down from $19,306,000 in Q1 2023, representing a 100% decrease[16]. - Total operating expenses increased to $20,691,000 in Q1 2024, compared to $19,700,000 in Q1 2023, an increase of about 5.0%[16]. - Total research and development expenses were $15.8 million for the three months ended March 31, 2024, an increase of $0.1 million, or 0.6%, compared to $15.7 million in 2023[194]. - General and administrative expenses rose to $4.9 million for the three months ended March 31, 2024, an increase of $0.9 million, or 22.5%, compared to $4.0 million in 2023[195]. - Manufacturing expenses increased by $2.4 million, contributing to the rise in research and development costs, while clinical and regulatory costs decreased by $0.9 million[194]. Assets and Cash Flow - Total assets decreased from $112,815,000 as of December 31, 2023, to $94,390,000 as of March 31, 2024, a decline of approximately 16.3%[14]. - Cash and cash equivalents decreased from $17,798,000 as of December 31, 2023, to $14,433,000 as of March 31, 2024, a reduction of approximately 18.5%[14]. - As of March 31, 2024, the company had cash, cash equivalents, and restricted cash totaling $14.5 million, down from $33.6 million at the end of Q1 2023[29]. - As of March 31, 2024, the company had cash, cash equivalents, and short-term investments totaling $77.8 million, down from $94.8 million as of December 31, 2023[205]. - Cash used in operating activities for Q1 2024 was $17.5 million, compared to $17.2 million in Q1 2023, primarily due to a net loss of $19.6 million[209][210]. Equity and Financing - Total stockholders' equity fell from $98,667,000 as of December 31, 2023, to $80,011,000 as of March 31, 2024, a decrease of about 19.0%[14]. - The weighted-average shares of common stock outstanding increased to 23,011,795 in Q1 2024 from 2,786,017 in Q1 2023, a significant increase of approximately 726.0%[16]. - The company completed its initial public offering on July 25, 2023, raising net proceeds of $68.7 million from the sale of 6,666,667 shares at $12.00 per share[27]. - The company intends to fund future operations through equity and/or debt financings, as well as potential asset sales and collaborations[33]. - The company is required to receive at least $40.0 million in new funding by March 31, 2025, as part of the loan agreement[147]. Clinical Trials and Development - The company is currently conducting three ongoing Phase 1 clinical trials for its TIL therapies, targeting various solid tumors[25]. - The company is currently conducting three Phase 1 clinical trials for TIDAL-01, targeting breast cancer, colorectal cancer, head and neck cancer, and uveal melanoma[155]. - TIDAL-01, the lead Selected TIL product candidate, is designed to deliver at least 1 billion cells with over 70% functional tumor-reactive T cells, with a clinical program update expected in mid-2024[154][155]. - The company has established a standardized manufacturing process for large-scale production of Selected TILs, with plans to enhance TIL quality and function in future programs[161][155]. Collaborations and Agreements - The company has entered into a collaboration agreement with Moffitt, committing to pay at least $17.5 million over five years for research and development services related to TIL products[173]. - The company recognized collaboration revenue related to the Takeda Agreement of $19.3 million for the three months ended March 31, 2023, and $0.0 million for the same period in 2024[90]. - Takeda is obligated to pay the company up to $200,000,000 upon achieving certain clinical and regulatory milestones for the first Takeda Licensed Product[77]. - The company has a contractual right to receive $58.6 million under expense sharing through the completion of the Phase IIa clinical trial, which was included in the transaction price at inception[87]. Market and Economic Conditions - The company is actively monitoring macroeconomic and geopolitical trends that could impact its business but has not yet experienced material disruptions[162][163]. - The company considers the decline in market value of its investments primarily attributable to economic and market conditions rather than credit-related factors[68].