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Instil Bio(TIL) - 2024 Q2 - Quarterly Report
TILInstil Bio(TIL)2024-08-13 21:16

Financial Performance - For the three months ended June 30, 2024, the net loss was 14.9million,adecreaseof14.9 million, a decrease of 3.7 million compared to a net loss of 18.7millionforthesameperiodin2023[89].−Thenetlossforthefirsthalfof2024was18.7 million for the same period in 2023[89]. - The net loss for the first half of 2024 was 39.2 million, an improvement of 36.5millioncomparedtoanetlossof36.5 million compared to a net loss of 75.7 million in 2023[94]. - Cash used in operating activities was 25.0millionforthesixmonthsendedJune30,2024,comparedto25.0 million for the six months ended June 30, 2024, compared to 54.2 million in 2023, indicating a reduction in cash outflow[111]. - Cash used in operating activities for the six months ended June 30, 2023 was 54.2million,consistingofanetlossof54.2 million, consisting of a net loss of 75.7 million and a 9.2millionnetchangeinoperatingassetsandliabilities[113].Expenses−Researchanddevelopmentexpensesdecreasedto9.2 million net change in operating assets and liabilities[113]. Expenses - Research and development expenses decreased to 2.9 million for the three months ended June 30, 2024, down from 8.5millionin2023,primarilyduetoreducedheadcountanddiscontinuedclinicalmanufacturingactivities[90].−Generalandadministrativeexpenseswere8.5 million in 2023, primarily due to reduced headcount and discontinued clinical manufacturing activities[90]. - General and administrative expenses were 10.7 million for the three months ended June 30, 2024, compared to 11.5millionin2023,reflectingadecreaseinheadcount−relatedcosts[91].−TotaloperatingexpensesforthethreemonthsendedJune30,2024,were11.5 million in 2023, reflecting a decrease in headcount-related costs[91]. - Total operating expenses for the three months ended June 30, 2024, were 14.1 million, down from 21.0millionin2023,indicatingareductionof21.0 million in 2023, indicating a reduction of 6.9 million[89]. - Research and development expenses decreased to 10.2millioninthefirsthalfof2024from10.2 million in the first half of 2024 from 29.1 million in 2023, a reduction of 19.0million[95].−Generalandadministrativeexpenseswere19.0 million[95]. - General and administrative expenses were 23.1 million for the six months ended June 30, 2024, down from 24.7millionin2023,reflectingadecreaseof24.7 million in 2023, reflecting a decrease of 1.6 million[96]. - Restructuring and impairment charges were approximately 0.5millionforthethreemonthsendedJune30,2024,downfrom0.5 million for the three months ended June 30, 2024, down from 1.0 million in 2023, with expectations for additional charges in 2024[92]. - Restructuring and impairment charges fell to 4.8millionin2024from4.8 million in 2024 from 25.6 million in 2023, a decrease of 20.8million[97].−Interestexpenseincreasedto20.8 million[97]. - Interest expense increased to 2.0 million for the three months ended June 30, 2024, compared to 0.6millionin2023,reflectinghighercostsassociatedwithloans[89].CashandInvestments−Cash,cashequivalents,marketablesecurities,andlong−terminvestmentstotaled0.6 million in 2023, reflecting higher costs associated with loans[89]. Cash and Investments - Cash, cash equivalents, marketable securities, and long-term investments totaled 152.6 million as of June 30, 2024, consisting of 6.8millionincashandcashequivalents,6.8 million in cash and cash equivalents, 141.8 million in marketable securities, and 4.0millioninlong−terminvestments[75].−AsofJune30,2024,thecompanyhadcash,cashequivalents,marketablesecurities,andlong−terminvestmentstotaling4.0 million in long-term investments[75]. - As of June 30, 2024, the company had cash, cash equivalents, marketable securities, and long-term investments totaling 152.6 million[98]. - Cash provided by investing activities for the six months ended June 30, 2024 was 21.2million,primarilyfrommarketablesecuritiesinvestmentsof21.2 million, primarily from marketable securities investments of 20.6 million[114]. - The outstanding principal amount under the mortgage construction loan was 82.8millionasofJune30,2024[101].FutureOutlook−Thecompanyexpectstocontinueincurringnetlossesfortheforeseeablefutureduetoongoingresearchanddevelopmentactivities[75].−Thecompanyexpectsadditionalrestructuringandimpairmentchargesin2024duetoworkforcereductionsandotheractionsrelatedtoits2024Plan[97].−ThecompanyplanstoevaluateopportunitiesforapotentialsaleofitsTarzanamanufacturingsitetoextenditscashrunway[102].−InAugust2024,thecompanyenteredintoanagreementwithImmuneOncoinvolvinganupfrontpaymentof82.8 million as of June 30, 2024[101]. Future Outlook - The company expects to continue incurring net losses for the foreseeable future due to ongoing research and development activities[75]. - The company expects additional restructuring and impairment charges in 2024 due to workforce reductions and other actions related to its 2024 Plan[97]. - The company plans to evaluate opportunities for a potential sale of its Tarzana manufacturing site to extend its cash runway[102]. - In August 2024, the company entered into an agreement with ImmuneOnco involving an upfront payment of 10 million and potential future payments totaling up to 2.1billion[106].CompanyStatus−Thecompanyremainsan"emerginggrowthcompany"andintendstorelyoncertainexemptionsfrompubliccompanyreportingrequirements[118].−ThecompanymaydelayadoptingnewaccountingstandardsuntilitisnolongeranemerginggrowthcompanyoroptsoutofthetransitionperiodprovidedintheJOBSAct[119].−ThecompanywillremainanemerginggrowthcompanyuntiltheearliestofDecember31,2026,orwhentotalannualgrossrevenueexceeds2.1 billion[106]. Company Status - The company remains an "emerging growth company" and intends to rely on certain exemptions from public company reporting requirements[118]. - The company may delay adopting new accounting standards until it is no longer an emerging growth company or opts out of the transition period provided in the JOBS Act[119]. - The company will remain an emerging growth company until the earliest of December 31, 2026, or when total annual gross revenue exceeds 1.235 billion[120]. - The company is classified as a "smaller reporting company" and may continue to rely on exemptions from certain disclosure requirements[121]. - The market value of the company's shares held by non-affiliates must be less than $250.0 million to maintain smaller reporting company status[121]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its smaller reporting company status[123].