Corvus Pharmaceuticals(CRVS) - 2021 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $11.8 million for the three months ended June 30, 2021, and $23.3 million for the six months ended June 30, 2021, with an accumulated deficit of $246.5 million as of June 30, 2021[109]. - The net loss for the six months ended June 30, 2021, was $23.3 million, slightly improved from a net loss of $23.5 million in 2020[156][157]. - Operating activities used cash of $21.4 million for the six months ended June 30, 2021, compared to $18.8 million for the same period in 2020[156][157]. - The total operating expenses for the six months ended June 30, 2021, were $22.8 million, a decrease of $1.3 million from $24.0 million for the same period in 2020[130]. - The company reported a net increase in cash and cash equivalents of $42.5 million for the six months ended June 30, 2021, compared to $15.6 million in 2020[155]. Revenue Generation - The company has not generated any revenue from product sales to date and does not expect to do so until regulatory approval and commercialization of its products[122]. - The company expects to fund operations and capital needs through equity and/or debt financings until substantial revenue is generated from product sales[153]. Clinical Trials and Product Development - The company initiated a Phase 3 trial for its lead product candidate, mupadolimab, in February 2021, but discontinued it in July 2021 due to positive trends from COVID-19 vaccines[101]. - Interim data from the Phase 1/1b clinical trial of CPI-818 showed one complete response lasting over 15 months and one partial response lasting over five months in patients with PTCL[107]. - The company is conducting a Phase 2 clinical trial for ciforadenant in combination with pembrolizumab, expected to enroll up to 60 patients[108]. - The company has observed evidence of anti-tumor activity in oropharyngeal cancers associated with HPV infection during its ongoing Phase 1/1b trial with mupadolimab[106]. - The company faces uncertainties related to the timing and costs of clinical trials and development of product candidates, which may impact future revenue generation[127]. Research and Development Expenses - The company has incurred significant research and development expenses, primarily related to its product candidates, with no revenues generated to offset these costs[123]. - Research and development expenses for the three months ended June 30, 2021, were $9.1 million, an increase of $1.2 million compared to $7.9 million for the same period in 2020[130]. - The company plans to significantly increase research and development expenses to support the development and potential commercialization of product candidates, including mupadolimab and CPI-818[124]. Cash and Capital Resources - As of June 30, 2021, the company had capital resources of approximately $66.5 million but does not expect these to be sufficient for ongoing clinical trials[115]. - The company sold 9,783,660 shares of common stock in February 2021, raising approximately $32.0 million in net proceeds[112]. - The company sold 4,264,865 shares under its at-the-market offering program during the six months ended June 30, 2021, resulting in net proceeds of $11.8 million[152]. - As of June 30, 2021, the company had cash, cash equivalents, and marketable securities of $66.5 million, up from $44.3 million as of December 31, 2020[147]. - The accumulated deficit increased to $246.5 million as of June 30, 2021, compared to $223.1 million as of December 31, 2020[147]. General and Administrative Expenses - General and administrative expenses for the three months ended June 30, 2021, decreased by $0.7 million to $2.2 million compared to $2.9 million for the same period in 2020[142]. - The company anticipates an increase in general and administrative expenses in the future due to an increase in headcount to support ongoing research and development[129]. Market and Economic Conditions - An immediate 10% increase in interest rates would not materially affect the fair market value of the company's investment portfolio due to its low risk profile[165]. - The company remains an emerging growth company under the JOBS Act, with certain exemptions from new accounting standards[163][164]. - The company did not experience material changes in contractual obligations during the reporting period[162].