Abeona Therapeutics(ABEO) - 2022 Q1 - Quarterly Report

Financial Performance - Total current assets decreased from $56,292 thousand as of December 31, 2021, to $39,204 thousand as of March 31, 2022, representing a decline of approximately 30.4%[8] - Cash and cash equivalents decreased from $32,938 thousand to $20,326 thousand, a reduction of about 38.2%[8] - Total liabilities decreased from $28,211 thousand to $23,729 thousand, a decline of approximately 16.0%[8] - The net loss for Q1 2022 was $20,791 thousand, compared to a net loss of $16,002 thousand in Q1 2021, reflecting an increase in loss of about 29.0%[10] - Net loss for the three months ended March 31, 2022, was $20,791 thousand, compared to a net loss of $16,002 thousand for the same period in 2021, representing a 30% increase in net loss year-over-year[12] - Cash outflows from operating activities for the three months ended March 31, 2022, were $13,687 thousand, slightly higher than $13,585 thousand for the same period in 2021[12] Expenses - Research and development expenses increased from $8,317 thousand in Q1 2021 to $10,545 thousand in Q1 2022, an increase of about 27.0%[10] - General and administrative expenses decreased from $6,280 thousand in Q1 2021 to $4,224 thousand in Q1 2022, a reduction of approximately 32.7%[10] - The company incurred impairment charges totaling $6,168 thousand in Q1 2022, including $1,355 thousand for licensed technology and $3,252 thousand for construction-in-progress[10] - The company recorded an impairment charge of $3.3 million for construction-in-progress related to the ABO-101 and ABO-102 programs for the three months ended March 31, 2022[29] - The company recorded an impairment charge of $1.6 million related to leases for the ABO-101 and ABO-102 programs for the three months ended March 31, 2022[38] - Stock-based compensation expense for the three months ended March 31, 2022, was $862,000, a decrease from $1.950 million in the same period of 2021[42] Equity and Financing - Total stockholders' equity decreased from $51,375 thousand as of December 31, 2021, to $31,443 thousand as of March 31, 2022, a decline of approximately 38.8%[11] - The company has not generated significant product revenues and has not achieved profitable operations, indicating a need for additional financing to support ongoing development activities[16] - The company has sufficient resources to fund operations for at least the next 12 months but will need to secure additional funding beyond that period[19] - On April 29, 2022, the Company agreed to issue and sell 1,000,006 shares of Series A Preferred Stock and 250,005 shares of Series B Preferred Stock at an offering price of $19.00 per share, resulting in gross proceeds of approximately $25.0 million[49] - The Company plans to conduct a reverse stock split of the outstanding shares of Common Stock, with the ratio to be determined by the Board of Directors[50] Assets and Investments - As of March 31, 2022, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $37.2 million[16] - As of March 31, 2022, the company had short-term investments in U.S. treasury securities valued at $10,989 thousand[25] - Total assets measured at fair value as of March 31, 2022, amounted to $42.060 million, with $27.683 million classified under recurring assets[35] Stock Options and Awards - The company reported a total of 53,750,137 potential dilutive securities that could impact future net loss per share calculations[24] - As of March 31, 2022, the total compensation cost related to non-vested option awards not yet recognized is approximately $5.0 million with a weighted average remaining vesting period of 2.6 years[46] - The outstanding restricted stock awards decreased from 2,431,515 to 1,948,334 from December 31, 2021, to March 31, 2022, with a total unrecognized compensation expense of approximately $2.8 million expected to be recognized over a weighted average vesting period of 2.7 years[48] - The number of exercisable options as of March 31, 2022, is 3,516,716, with a weighted average exercise price of $1.51[46] - The Company granted 252,000 restricted stock awards during the three months ended March 31, 2022[48] - The aggregate intrinsic value of options is calculated based on the difference between the exercise price and the fair value of the Company's common stock[46] Settlement and Liabilities - The company has a settlement liability of $30 million with REGENXBIO, with $20 million already paid and $10 million due in the next two years[31] - As of March 31, 2022, the current portion of the payable to REGENXBIO is $4.7 million, and the long-term portion is $3.9 million[32] - Operating lease liabilities as of March 31, 2022, have a present value of $9.095 million, with total undiscounted payments of $11.506 million[40] - The company reported accrued expenses of $4.206 million as of March 31, 2022, down from $5.585 million in December 2021[36]