TScan Therapeutics(TCRX) - 2022 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $47.5 million for the nine months ended September 30, 2022, compared to a net loss of $34.4 million for the same period in 2021, representing an increase in losses of approximately 39%[64]. - Total operating expenses for the nine months ended September 30, 2022, were $58.4 million, an increase of $16.7 million or 40% compared to $41.7 million for the same period in 2021[75]. - Cash used in operating activities was $50.5 million for the nine months ended September 30, 2022, an increase of $16.2 million compared to $34.3 million in the prior year[90]. - Net cash provided by financing activities was $29.2 million for the nine months ended September 30, 2022, a significant decrease from $189.5 million in the same period of 2021[94][95]. - The company has not generated any revenue from product sales and has incurred net losses of $47.5 million for the nine months ended September 30, 2022, compared to a net loss of $34.4 million for the same period in 2021[91][92]. Revenue and Funding - Collaboration and license revenue increased to $10.4 million for the nine months ended September 30, 2022, up from $7.3 million in the same period in 2021, reflecting a growth of 43%[75]. - The company has not generated any revenue from product sales and relies on funding from equity offerings, debt financings, and collaborations to support operations[63]. - The company expects to fund its operations through a combination of equity offerings, debt financings, and collaborations, as it does not anticipate generating product revenue for several years[84][85]. - The company received an upfront payment of $20 million under the Novartis Agreement and is entitled to reimbursement of up to $10 million for research and development costs[79][80]. Expenses and Costs - Research and development expenses rose to $44.2 million for the nine months ended September 30, 2022, compared to $32.3 million in 2021, marking an increase of 37%[77]. - The increase in general and administrative expenses to $4.9 million for the three months ended September 30, 2022, was primarily due to a $0.9 million rise in personnel expenses[73]. - General and administrative expenses increased to $14.2 million for the nine months ended September 30, 2022, up from $9.4 million in the same period of 2021, primarily due to a $3.4 million rise in personnel expenses and a $1.6 million increase in other expenses related to expansion[78]. - The company anticipates substantial increases in expenses as it advances its research programs into preclinical and clinical development[83]. - The company is incurring significant legal and compliance costs as a public entity, which were not applicable when it was private[86]. Future Outlook - The company expects to continue incurring significant operating losses and increasing expenses as it advances its clinical development and commercialization efforts[64]. - The company believes its existing cash and cash equivalents will fund operations into the second quarter of 2024, but acknowledges the risk of exhausting capital resources sooner[68]. - The company may need to raise additional capital to support its operations and product development, which could lead to dilution of existing stockholders' interests[87][89]. - The company plans to submit IND applications for two solid tumor TCR-T therapy candidates by the end of 2022, with additional INDs expected by the end of 2023[62]. - The company has submitted IND applications for TSC-100 and TSC-101, with both cleared by the FDA, and is currently enrolling patients for Phase 1 clinical studies[62].