Passage BIO(PASG) - 2024 Q2 - Quarterly Report

Financial Performance - The net loss for the six months ended June 30, 2024, was $32,702,000, compared to a net loss of$58,194,000 for the same period in 2023, reflecting an improvement of approximately 44%[10]. - The company reported a comprehensive loss of $15,989,000 for the three months ended June 30, 2024, compared to a comprehensive loss of$23,769,000 for the same period in 2023, indicating a decrease of approximately 32.9%[10]. - Net cash used in operating activities for the six months ended June 30, 2024, was $32,065,000, compared to$39,585,000 for the same period in 2023, indicating a 19% reduction[15]. - The company recorded $1.4 million in other income (expense), net for the three months ended June 30, 2024, primarily from interest income and amortization of marketable securities[41]. - For the six months ended June 30, 2024, the Company reported$2.7 million in other income (expense), net, with $2.4 million from interest income and amortization of marketable securities[42]. Assets and Liabilities - Total current assets decreased from$117,959,000 as of December 31, 2023, to $95,000,000 as of June 30, 2024, representing a decline of approximately 19.5$21,709,000 as of December 31, 2023, to $24,770,000 as of June 30, 2024, a rise of approximately 14.1$39,262,000 as of December 31, 2023, to $34,835,000 as of June 30, 2024, a reduction of about 11.3$92,585,000 as of December 31, 2023, to $67,003,000 as of June 30, 2024, a decline of approximately 27.7$96,935,000 on December 31, 2023, to $75,533,000 as of June 30, 2024[52]. Research and Development - Research and development expenses for the three months ended June 30, 2024, were$10,430,000, compared to $17,324,000 for the same period in 2023, indicating a reduction of about 39.5$12.2 million to $22.0 million for the six months ended June 30, 2024, from$34.2 million for the same period in 2023[148]. - The decrease in research and development expenses was primarily due to reductions in headcount and lower activity in supporting certain programs[145]. - The company has developed its lead clinical product candidate, PBFT02, targeting frontotemporal dementia caused by progranulin deficiency[17]. - The company plans to initiate dosing for PBFT02 in treating FTD-C9orf72 patients in the first half of 2025, following positive regulatory feedback[103]. Equity and Financing - The weighted average common shares outstanding increased from 54,683,817 for the six months ended June 30, 2023, to 58,989,007 for the same period in 2024, an increase of about 7.5%[10]. - The company issued 6,000,000 shares of common stock under the ATM Facility, resulting in net proceeds of $8.7 million after deducting offering costs[20]. - The company has$50 million of capacity remaining to offer and sell shares of common stock under the ATM Facility as of June 30, 2024[157]. - The company plans to seek additional funding through various means, including public or private equity offerings, to support its operations and product development[21]. - The company anticipates financing operations through equity offerings, debt financings, collaborations, and strategic alliances until substantial product revenue is generated[156]. Legal Matters - The company anticipates litigation with a former employee to go to trial in 2024, with claims amounting to mid-single digit millions of dollars[83]. - The court denied both the company's and the plaintiff's motions for summary judgment, and the matter is expected to go to trial in the fourth quarter of 2024[178]. - The company does not currently face any other legal proceedings that would materially adversely affect its business[179]. Operational Expenses - General and administrative expenses for the six months ended June 30, 2024, were $13,025,000, down from$27,111,000 for the same period in 2023, a decrease of about 52.0%[10]. - General and administrative expenses decreased by $1.6 million to$6.5 million for the three months ended June 30, 2024, from $8.1 million for the same period in 2023[144]. - The company recorded share-based compensation expense of$1.578 million for the three months ended June 30, 2024, compared to $3.743 million for the same period in 2023[89]. - The company expects to incur expenses related to scaling up clinical, regulatory, and manufacturing capabilities as part of its future commercialization activities[154]. - The company has an accumulated deficit of$627.2 million as of June 30, 2024, reflecting ongoing financial challenges[18].