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Surrozen(SRZN) - 2024 Q2 - Quarterly Report
SRZNSurrozen(SRZN)2024-08-12 20:14

Financial Performance - For the three months ended June 30, 2024, the net loss increased to 25.3million,a16925.3 million, a 169% increase compared to a net loss of 9.4 million for the same period in 2023[90]. - The company had an accumulated deficit of 255.8millionandcashandcashequivalentsof255.8 million and cash and cash equivalents of 37.8 million as of June 30, 2024[85]. - The company expects to continue incurring net losses due to increased expenses related to research and development activities[102]. - The company has not generated revenue from product sales and relies on collaboration and license revenue[107]. Research and Development - Research and development expenses for the three months ended June 30, 2024, were 5.3million,adecreaseof235.3 million, a decrease of 23% from 6.9 million in the same period of 2023[90]. - The company completed the Phase 1a study of SZN-043 in February 2024, demonstrating acceptable safety and tolerability, and has initiated enrollment in the Phase 1b clinical trial[82]. - SZN-043 program expenses increased by 0.5million,or240.5 million, or 24%, for the three months ended June 30, 2024, primarily due to the initiation of the Phase 1b clinical trial[91]. - Total research and development expenses decreased by 4.4 million, or 30%, to 10.6millionforthesixmonthsendedJune30,2024,comparedto10.6 million for the six months ended June 30, 2024, compared to 15.0 million for the same period in 2023[97]. - The company anticipates proof-of-concept data from the Phase 1b clinical trial in the first half of 2025[82]. Operating Expenses - The total operating expenses for the six months ended June 30, 2024, were 18.2million,adecreaseof2718.2 million, a decrease of 27% from 24.9 million in the same period of 2023[96]. - General and administrative expenses decreased by 1.0million,or121.0 million, or 12%, for the six months ended June 30, 2024, primarily due to workforce reductions and lower consulting fees[98]. Income and Financing - The increase in other income, net for the three months ended June 30, 2024, was 3.4 million, primarily due to a 4.8millionincreaseinnoncashchangeinfairvalueofwarrantliabilities[94].Otherincome,net,increasedby4.8 million increase in non-cash change in fair value of warrant liabilities[94]. - Other income, net, increased by 3.6 million for the six months ended June 30, 2024, primarily due to a 5.0millionincreaseinnoncashchangeinfairvalueofwarrantliabilities[101].Cashprovidedbyfinancingactivitieswas5.0 million increase in non-cash change in fair value of warrant liabilities[101]. - Cash provided by financing activities was 16.1 million for the six months ended June 30, 2024, primarily from a private placement[112]. - The company entered into a private placement in April 2024, raising approximately 16.0million,withpotentialadditionalproceedsof16.0 million, with potential additional proceeds of 175.5 million if warrants are fully exercised[105]. Economic Conditions - Inflation has increased and is expected to continue to rise, impacting labor costs and research expenses[118]. - The company does not believe inflation has materially affected its financial condition during the reported periods, but future costs may increase[118]. - Greater uncertainty in economic conditions and stock price volatility may arise due to inflation[118].