2023 Q2 Form 10-Q Financial Statement

#000157688523000025 Filed on May 09, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2022 Q1
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $4.345M $4.422M $3.221M
YoY Change 40.61% 37.29% 165.1%
% of Gross Profit
Research & Development $9.133M $8.713M $5.985M
YoY Change 24.75% 45.58% 132.16%
% of Gross Profit
Depreciation & Amortization $15.00K $14.00K $4.000K
YoY Change 150.0% 250.0%
% of Gross Profit
Operating Expenses $13.48M $13.14M $9.206M
YoY Change 29.46% 42.68% 142.71%
Operating Profit -$13.48M -$13.14M -$9.206M
YoY Change 29.46% 42.68%
Interest Expense $1.884M $1.832M $76.00K
YoY Change 624.62% 2310.53% 1800.0%
% of Operating Profit
Other Income/Expense, Net $1.868M $1.828M $1.000K
YoY Change 618.46% 182700.0% -100.0%
Pretax Income -$11.61M -$11.31M -$9.129M
YoY Change 14.37% 23.86% -66.19%
Income Tax
% Of Pretax Income
Net Earnings -$11.61M -$11.31M -$9.129M
YoY Change 14.37% 23.86% -66.19%
Net Earnings / Revenue
Basic Earnings Per Share -$0.28 -$0.28 -$0.23
Diluted Earnings Per Share -$0.28 -$0.28 -$225.6K
COMMON SHARES
Basic Shares Outstanding 41.03M shares 41.03M shares 40.47M shares
Diluted Shares Outstanding 41.03M shares 41.03M shares 40.47M shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $144.9M $140.4M $189.1M
YoY Change -23.71% -25.74% 356.66%
Cash & Equivalents $77.25M $78.00M $108.8M
Short-Term Investments $67.63M $62.41M $80.33M
Other Short-Term Assets $208.0K $294.0K $3.008M
YoY Change -81.79% -90.23% 412.44%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $149.5M $144.0M $192.1M
YoY Change -21.73% -25.02% 356.26%
LONG-TERM ASSETS
Property, Plant & Equipment $136.0K $151.0K $252.0K
YoY Change 20.35% -40.08%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $27.31M $43.42M $27.66M
YoY Change 36.55% 56.99%
Other Assets $208.0K $195.0K $79.00K
YoY Change 96.23% 146.84% -70.74%
Total Long-Term Assets $27.87M $43.83M $27.99M
YoY Change 35.11% 56.6% 10266.3%
TOTAL ASSETS
Total Short-Term Assets $149.5M $144.0M $192.1M
Total Long-Term Assets $27.87M $43.83M $27.99M
Total Assets $177.4M $187.9M $220.1M
YoY Change -16.19% -14.64% 419.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.026M $762.0K $1.219M
YoY Change 18.48% -37.49% 32.79%
Accrued Expenses $2.374M $7.923M $2.618M
YoY Change -28.56% 202.64% 69.56%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $8.531M $8.779M $3.936M
YoY Change 66.17% 123.04% -87.38%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $62.00K
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $62.00K
YoY Change -100.0% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.531M $8.779M $3.936M
Total Long-Term Liabilities $0.00 $0.00 $62.00K
Total Liabilities $8.531M $8.779M $3.998M
YoY Change 65.36% 119.58% -87.18%
SHAREHOLDERS EQUITY
Retained Earnings -$193.3M -$181.7M
YoY Change 31.59%
Common Stock $4.000K $4.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $168.9M $179.1M $216.1M
YoY Change
Total Liabilities & Shareholders Equity $177.4M $187.9M $220.1M
YoY Change -16.19% -14.64% 419.4%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$11.61M -$11.31M -$9.129M
YoY Change 14.37% 23.86% -66.19%
Depreciation, Depletion And Amortization $15.00K $14.00K $4.000K
YoY Change 150.0% 250.0%
Cash From Operating Activities -$11.67M -$10.18M -$8.299M
YoY Change 80.43% 22.61% 250.17%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$9.000K
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $11.06M -$41.93M -$5.090M
YoY Change 25.43% 723.71%
Cash From Investing Activities $11.06M -$41.93M -$5.099M
YoY Change 25.94% 722.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -145.0K $0.00
YoY Change 935.71%
NET CHANGE
Cash From Operating Activities -11.67M -$10.18M -8.299M
Cash From Investing Activities 11.06M -$41.93M -5.099M
Cash From Financing Activities -145.0K $0.00
Net Change In Cash -751.0K -$52.10M -13.40M
YoY Change -132.61% 288.88% 465.32%
FREE CASH FLOW
Cash From Operating Activities -$11.67M -$10.18M -$8.299M
Capital Expenditures $0.00 $0.00 -$9.000K
Free Cash Flow -$11.67M -$10.18M -$8.290M
YoY Change 81.44% 22.74%

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DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS <div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Acumen Pharmaceuticals, Inc. (“Acumen” or the “Company”) was incorporated in 1996 in the state of Delaware. Acumen is a clinical-stage biopharmaceutical company developing a novel disease-modifying approach to target what the Company believes to be a key underlying cause of Alzheimer’s disease (“AD”). Alzheimer’s disease is a progressive neurodegenerative disease of the brain that leads to loss of memory and cognitive functions and ultimately results in death. The Company’s scientific founders pioneered research on soluble amyloid-beta oligomers (“AßOs”), which are globular assemblies of the amyloid-beta (“Aß”) peptide that are distinct from Aß monomers and amyloid plaques. Based on decades of research and supporting evidence, AßOs have gained increasing scientific acceptance as primary toxins involved in the initiation and propagation of AD pathology. The Company is currently focused on advancing a targeted immunotherapy drug candidate, ACU193, through a clinical proof of mechanism trial in “early AD” patients (patients with mild cognitive impairment or mild dementia due to Alzheimer’s pathology). ACU193 is a recombinant humanized immunoglobulin gamma 2 (“IgG2”) monoclonal antibody (“mAb”) that was designed to selectively target AßOs, has demonstrated functional and protective effects in in vitro assays, and has demonstrated in vivo safety and pharmacologic activity in multiple animal species, including transgenic mouse models for AD. </span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is subject to the uncertainty of whether the Company’s intellectual property will develop into successful commercial products. </span></div><div style="margin-top:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Liquidity and Capital Resources </span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company has incurred operating losses since inception and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. As of March 31, 2023 and December 31, 2022, the Company had an accumulated deficit of $181.7 million and $170.4 million, respectively, and working capital of $135.3 million and $172.5 million, respectively. Management believes that the Company has sufficient cash to continue operating activities for beyond 12 months from issuance of these condensed financial statements. </span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Future capital requirements will depend upon many factors, including the timing and extent of spending on research and development and market acceptance of the Company’s products. The Company expects that it will need to obtain additional financing to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. Until such time, if ever, the Company can generate revenue sufficient to achieve profitability, the Company expects to finance its operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. There can be no assurance that such financing will be available on terms acceptable to the Company, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, the ownership interest of its stockholders will be diluted, and the terms of these securities may include liquidation of other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting the Company’s ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. If the Company is unable to maintain sufficient financial resources, its business, financial condition and results of operations will be materially and adversely affected. The Company may be required to delay, limit, reduce or terminate its product discovery and development activities or future commercialization efforts. </span></div><div style="margin-top:10pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company initiated a Phase 1 clinical trial of ACU193 in the second quarter of 2021, which the Company named “INTERCEPT-AD.” This trial enrolled 65 patients with “early AD.” INTERCEPT-AD is a U.S.-based, multi-center, randomized, double-blind, placebo-controlled clinical trial with overlapping single ascending dose and multiple ascending dose cohorts evaluating patients with early AD.</span></div>
CY2023Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-181700000 usd
CY2022Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-170400000 usd
CY2023Q1 abos Working Capital
WorkingCapital
135300000 usd
CY2022Q4 abos Working Capital
WorkingCapital
172500000 usd
CY2023Q1 abos Number Of Patients Enrolled In Trial
NumberOfPatientsEnrolledInTrial
65 patient
CY2023Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates </span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements, as well as the reported amounts of expenses during the reporting periods. These estimates and assumptions are based on the Company’s historical experience, and on various other factors that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. </span></div>Actual results may differ from these estimates under different assumptions or conditions. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.
CY2023Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. Accrued clinical trial expenses are presented as a separate line on the statements of cash flows, whereas these accrued expenses were previously included in accrued expenses and other current liabilities. This reclassification had no effect on the reported results of operations.
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CY2023Q1 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
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CY2022Q4 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
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CY2023Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
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CY2023Q1 abos Research And Development Liability Current
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LegalLiabilityCurrent
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AccruedProfessionalFeesCurrent
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CY2023Q1 us-gaap Accounts Payable And Other Accrued Liabilities Current
AccountsPayableAndOtherAccruedLiabilitiesCurrent
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AccountsPayableAndOtherAccruedLiabilitiesCurrent
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CY2023Q1 abos Common Stock And Preferred Stock Shares Authorized
CommonStockAndPreferredStockSharesAuthorized
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CY2023Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
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CY2023Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2023Q1 us-gaap Common Stock Shares Authorized
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CY2023Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
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CY2023Q1 abos Common Stock Number Of Voting Rights
CommonStockNumberOfVotingRights
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CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
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CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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CY2022Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
2769265 shares
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
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CY2023Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
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6446000 usd
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
7567393 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4922019 shares

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