Financial Performance - The company reported a net loss for every period since inception and anticipates substantial net losses in the future[24]. - Net loss for 2024 was 257,590,000,comparedtoanetlossof327,265,000 in 2023, representing a 21% improvement[638]. - The company expects to incur additional operating losses and recognizes the need to raise additional capital to implement its business plan[651]. - The Company has fully offset its net deferred tax assets with a valuation allowance due to historical operating performance and net losses[679]. - The Company recorded zero collaboration costs for the year ended December 31, 2024, compared to 1.8millionfor2023,withnomilestonesachievedinbothyears[743].CashandInvestments−AsofDecember31,2024,thecompanyhadcash,cashequivalents,andinvestmentstotaling373.1 million[617]. - Cash and cash equivalents at the end of 2024 were 75,218,000,downfrom83,155,000 in 2023, a decrease of about 10%[635]. - The total financial assets as of December 31, 2024, amounted to 368.7million,comparedto444.1 million as of December 31, 2023[696]. - The fair value of available-for-sale securities decreased from 444.1millionin2023to368.7 million in 2024, indicating a significant reduction in investment value[700]. - The Company has not experienced significant credit losses in its cash and investment accounts as of December 31, 2024 and 2023[657]. Research and Development - Research and development expenses decreased from 242,914,000in2023to192,299,000 in 2024, a reduction of about 21%[638]. - The Company has accrued liabilities for estimated research and development costs based on services provided but not yet invoiced[677]. - Research and development expenses include costs incurred for internal and sponsored collaborative research, totaling significant amounts but not specified in the provided content[688]. - The Company recorded 3.5millioninresearchanddevelopmentexpensesrelatedtoclinicaltrialsstartreadinessmilestonesfortheyearendedDecember31,2024[769].−TheCompanyrecorded5.4 million in research and development expenses for the year ended December 31, 2024, upon achieving a regulatory milestone, compared to zero in 2023[734]. Liabilities and Equity - Total liabilities decreased slightly from 130,604,000in2023to126,531,000 in 2024, a decrease of approximately 3%[635]. - The total stockholders' equity decreased from 512,233,000in2023to422,179,000 in 2024, a decline of about 17%[635]. - The total operating lease liabilities as of December 31, 2024, were 90.756million,adecreasefrom95.121 million in 2023[775]. - The weighted-average number of shares used in computing net loss per share increased from 156,931,778 in 2023 to 194,811,756 in 2024, an increase of approximately 24%[638]. - The Company has a total of 212,210,597 shares of common stock issued and outstanding as of December 31, 2024, compared to 168,642,238 shares in 2023[789]. Impairment and Charges - An impairment charge of 15.7millionwasrecordedfortheright−of−useassetandrelatedleaseholdimprovementsduetoidentifiedimpairmentindicators[630].−Thecompanyincurredanimpairmentoflong−livedassetsof15,717,000 in 2024, compared to 13,245,000in2023,anincreaseofabout192.0 million and 3.0millioninimpairmentlossesforitsequityinvestmentsinNotchfortheyearsendedDecember31,2024,and2023,respectively[785].−Thecompanyrecognizedanaggregatelong−livedassetimpairmentchargeof6.2 million for the right-of-use asset and leasehold improvements in 2024, following a discounted cash flow analysis[703]. - The expected sublease rental income for a property in South San Francisco was revised to 4.7millionthroughMarch31,2032,leadingtoanadditionalimpairmentchargeof9.5 million[705]. Financing and Capital Raising - The Company anticipates needing substantial additional financing to develop its products and implement operating plans[24]. - The Company intends to raise additional capital through equity securities, debt financings, or other sources to fund operations and product development[651]. - The Company sold an aggregate of 20,894,565 shares of common stock in ATM offerings during 2023, resulting in net proceeds of 91.1million[648].−InaregisteredofferingonMay13,2024,theCompanysold37,931,035sharesatapriceof2.90 per share, generating gross proceeds of 110.0million[649].−TheCompanyhascommittedupto15.0 million in funding for a strategic collaboration with The University of Texas MD Anderson Cancer Center, with 3.0millionpaidupfrontinboth2020and2023[745].AgreementsandCollaborations−TheCompanyhaspotentialmilestonepaymentsofupto840.0 million under the Pfizer Agreement, with no payments made in 2024 or 2023[714]. - The Servier Agreement includes potential milestone payments of up to €75.0 million for regulatory milestones and first commercial sales in the U.S., EU, and UK, with €60.0 million remaining for the initial indication of cema-cel[729]. - Under the Notch Agreement, Notch is eligible to receive up to 283.0millionperexclusivetargetandcelltypeuponachievingcertainclinical,regulatory,andcommercialmilestones[739].−TheCompanyhasexclusiverightstocommercializeproductsincorporatingAntiontechnologydevelopedduringthecollaborationwithAntionBiosciences[760].−TheLicenseAmendmentwithOverlandTherapeuticsincludesupto115.0 million in milestone payments and tiered mid single-digit to low double-digit royalties on net sales in the JV Territory[753]. Stock Options and Compensation - As of December 31, 2024, the company had 24,184,884 outstanding stock options with a weighted average exercise price of 8.14andanaggregateintrinsicvalueof1,000[795]. - The company granted 6,211,389 options in 2024, with an average exercise price of 3.08,while357,993optionswereexercisedatanaveragepriceof2.27[795]. - The aggregate intrinsic value of options exercised in 2024 was 0.6million,comparedto2.3 million in 2023[795]. - The fair value of common stock for options granted in 2024 ranged from 1.40to3.32, with expected volatility between 72.85% and 74.09%[796]. - The expected term for stock options granted in 2024 was between 5.02 and 6.25 years[796].
Allogene Therapeutics(ALLO)2025-03-13 20:04