Cartesian Therapeutics(RNAC) - 2021 Q3 - Quarterly Report

Financial Performance - Selecta Biosciences reported grant and collaboration revenue of $24.427 million for the three months ended September 30, 2021, compared to $4.646 million for the same period in 2020, representing a significant increase of 426%[16] - Total operating expenses for the three months ended September 30, 2021, were $26.396 million, up from $18.380 million in the same period of 2020, reflecting an increase of 43.6%[16] - The net loss for the three months ended September 30, 2021, was $17.894 million, compared to a net loss of $9.729 million for the same period in 2020, indicating a 83.5% increase in losses[16] - For the nine months ended September 30, 2021, the net loss was $37.9 million, compared to a net loss of $53.4 million for the same period in 2020, representing a 29% improvement[25] - The company reported stock-based compensation expense of $5.5 million for the nine months ended September 30, 2021, compared to $4.2 million for the same period in 2020, indicating a 31% increase[25] Cash and Assets - Cash and cash equivalents decreased to $114.645 million as of September 30, 2021, down from $138.685 million as of December 31, 2020, a decline of 17.3%[14] - Total assets increased slightly to $167.162 million as of September 30, 2021, compared to $165.435 million as of December 31, 2020, an increase of 1.04%[14] - The company’s accumulated deficit increased to $442.555 million as of September 30, 2021, from $404.629 million as of December 31, 2020, reflecting a rise of 9.4%[14] - The company's total cash, cash equivalents, and restricted cash as of September 30, 2021, amounted to $116.024 million, down from $147.640 million as of September 30, 2020, reflecting a decrease of 21.5%[48] Liabilities and Equity - Total current liabilities rose to $95.616 million as of September 30, 2021, compared to $81.547 million as of December 31, 2020, an increase of 17.2%[14] - The company’s total stockholders' equity showed a deficit of $18.731 million as of September 30, 2021, compared to a deficit of $18.006 million as of December 31, 2020[14] - Accrued expenses increased to $10,742,000 as of September 30, 2021, compared to $8,146,000 as of December 31, 2020, representing a 32% increase[57] Financing and Capital - The company anticipates continued operating losses due to ongoing research and development costs and will require substantial additional financing to fund operations[34] - The company has financed its operations primarily through public offerings, private placements, and research collaborations, with no current source of product revenue expected in the near future[32] - The Company sold 6,883,153 shares of common stock during the nine months ended September 30, 2021, generating aggregate net proceeds of $30,900,000[79] - The Company entered into a stock purchase agreement with Sobi, resulting in gross proceeds of $25,000,000 from the sale of 5,416,390 shares at $4.6156 per share[80] Research and Development - The company is focused on developing its ImmTOR platform, which aims to enhance the efficacy of biologics and enable novel therapeutic modalities[27] - The company has not completed development of any ImmTOR-enabled therapies and is in the early stages of product candidate development[33] - The company is developing SEL-212, a treatment for chronic refractory gout, which aims to control serum uric acid levels and mitigate the formation of anti-drug antibodies[183] - The Phase 3 DISSOLVE clinical program for SEL-212 commenced in September 2020, consisting of two trials with a total enrollment of 210 patients[184] Collaborations and Agreements - The Company received a one-time upfront payment of $75.0 million from Sobi as part of the Sobi License Agreement[105] - Sobi has agreed to make milestone payments totaling up to $630.0 million upon achieving various development and regulatory milestones for SEL-212[105] - The Company entered into a Collaboration and License Agreement with Ginkgo Bioworks, which includes potential milestone payments of up to $85.0 million in cash[167] - The company entered into an Exclusive License Agreement with Genovis, which includes tiered royalties on worldwide sales in the low double digits[168] Impact of COVID-19 - The impact of COVID-19 on the company's business remains uncertain and will depend on future developments related to the pandemic[35] - The COVID-19 pandemic has not materially impacted clinical programs as of the report date, but future developments remain uncertain[209] - The company is proactively working with clinical sites to provide patients with convenient locations for SUA measurement and infusions for the SEL-212 study[209]