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AVROBIO(AVRO) - 2024 Q2 - Quarterly Report
AVROAVROBIO(AVRO)2024-08-14 20:02

Financial Performance - The company has incurred net losses of 12.7millionand12.7 million and 10.5 million for the three months ended June 30, 2024 and 2023, respectively, and 27.9millionand27.9 million and 24.9 million for the six months ended June 30, 2024 and 2023, respectively[93]. - The net loss for Q2 2024 was 12.7million,representinga2112.7 million, representing a 21% increase compared to a net loss of 10.5 million in Q2 2023[116]. - The company incurred a net loss of 27.9millionforthesixmonthsendedJune30,2024,comparedtoanetlossof27.9 million for the six months ended June 30, 2024, compared to a net loss of 24.9 million for the same period in 2023[136]. - The company used 22.7millionand22.7 million and 20.5 million in operations for the six months ended June 30, 2024 and 2023, respectively[146]. Cash and Capital - The company had 185.1millionincashandcashequivalentsasofJune30,2024,whichisexpectedtofundoperationsforatleastthenexttwelvemonths[92].−Thecompanyhad185.1 million in cash and cash equivalents as of June 30, 2024, which is expected to fund operations for at least the next twelve months[92]. - The company had 185.1 million in cash and cash equivalents as of June 30, 2024, with an accumulated deficit of 118.5million[132].−Thecompanyhasreceived118.5 million[132]. - The company has received 288.6 million in capital contributions since inception, primarily from sales of preferred stock and proceeds from the merger[92]. - Net cash provided by financing activities was 179.1millionforthesixmonthsendedJune30,2024,primarilyduetoproceedsfromthesaleofsharesandtheMerger[139].Expenses−Researchanddevelopmentexpensesincludecostsrelatedtoemployeesalaries,clinicaltrials,andcompliancewithregulatoryrequirements[105].−ResearchanddevelopmentexpensesforQ22024were179.1 million for the six months ended June 30, 2024, primarily due to proceeds from the sale of shares and the Merger[139]. Expenses - Research and development expenses include costs related to employee salaries, clinical trials, and compliance with regulatory requirements[105]. - Research and development expenses for Q2 2024 were 7.1 million, a decrease of 19% from 8.8millioninQ22023[119].−ResearchanddevelopmentexpensesforthesixmonthsendedJune30,2024,totaled8.8 million in Q2 2023[119]. - Research and development expenses for the six months ended June 30, 2024, totaled 17.9 million, down 18% from 21.8millioninthesameperiodof2023[125].−Generalandadministrativeexpensesincreasedby13321.8 million in the same period of 2023[125]. - General and administrative expenses increased by 133% to 4.3 million in Q2 2024 from 1.9millioninQ22023,primarilyduetohigherpersonnelandprofessionalfees[120].−Generalandadministrativeexpensesincreasedto1.9 million in Q2 2023, primarily due to higher personnel and professional fees[120]. - General and administrative expenses increased to 6.5 million for the six months ended June 30, 2024, compared to 3.4millioninthesameperiodof2023,markinga903.4 million in the same period of 2023, marking a 90% increase[129]. - The company anticipates a significant increase in general and administrative expenses in the future due to costs associated with operating as a public company[111]. Research and Development - The company plans to continue the clinical development of its lead product candidate TX45 and expand its clinical product pipeline[93]. - The company is focused on developing biologics to address GPCRs, which represent over 30% of all approved drugs[88]. - The proprietary GEODe™ technology platform aims to overcome challenges in GPCR-targeted drug discovery[89]. - The company expects to incur significant expenses and operating losses as it advances its research programs and product candidates, necessitating additional capital[131]. Merger and Corporate Structure - The merger with AVROBIO was completed on June 20, 2024, resulting in Legacy Tectonic securityholders owning approximately 38.5% of the outstanding shares on a diluted basis[99]. - The increase in professional and consultant fees in Q2 2024 was primarily related to merger-related activities, which rose by 489% to 2.5 million[120]. Liabilities and Obligations - Total contractual obligations and commitments as of June 30, 2024, amount to 3.724million,includingfinanceleasesof3.724 million, including finance leases of 1.243 million and operating leases of 2.481million[148].−Thecompanyhasaone−timelicensefeeof2.481 million[148]. - The company has a one-time license fee of 170,000 under the Harvard License Agreement, with installments due over three years[150]. - The company is obligated to pay up to 8.5millioninmilestonepaymentsforproductsgrantedFDAmarketingauthorizationundertheHarvardLicenseAgreement[152].−Thecompanyhasatotalof8.5 million in milestone payments for products granted FDA marketing authorization under the Harvard License Agreement[152]. - The company has a total of 4.8 million in milestone payments under the Alloy Therapeutics License Agreement for clinical trial advancements[154]. - The SAFE liabilities loss was 3.6millionduetotheremeasurementoftheSAFEliabilitiestofairvalueduringthesixmonthsendedJune30,2024[130].InterestIncome−Interestincomeincreasedby423.6 million due to the remeasurement of the SAFE liabilities to fair value during the six months ended June 30, 2024[130]. Interest Income - Interest income increased by 42% to 318,000 in Q2 2024 compared to 224,000inQ22023,drivenbyhigherinterestrates[116].−Interestincomeincreasedby224,000 in Q2 2023, driven by higher interest rates[116]. - Interest income increased by 0.2 million for the six months ended June 30, 2024, attributed to rising interest rates[130]. Market Conditions - An immediate 10% change in market interest rates would not have a material effect on the fair market value of the company's investment portfolio[167].