2024 Q2 Form 10-Q Financial Statement

#000157688524000064 Filed on May 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 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 $4.848M $5.325M $4.422M
YoY Change 11.58% 20.42% 37.29%
% of Gross Profit
Research & Development $19.53M $12.45M $8.713M
YoY Change 113.87% 42.88% 45.58%
% of Gross Profit
Depreciation & Amortization $17.00K $16.00K $14.00K
YoY Change 13.33% 14.29% 250.0%
% of Gross Profit
Operating Expenses $24.38M $17.77M $13.14M
YoY Change 80.89% 35.32% 42.68%
Operating Profit -$24.38M -$17.77M -$13.14M
YoY Change 80.89% 35.32% 42.68%
Interest Expense $3.912M $1.000M $1.832M
YoY Change 107.64% -45.41% 2310.53%
% of Operating Profit
Other Income/Expense, Net $3.844M $2.901M $1.828M
YoY Change 105.78% 58.7% 182700.0%
Pretax Income -$20.54M -$14.87M -$11.31M
YoY Change 76.89% 31.54% 23.86%
Income Tax
% Of Pretax Income
Net Earnings -$20.54M -$14.87M -$11.31M
YoY Change 76.89% 31.54% 23.86%
Net Earnings / Revenue
Basic Earnings Per Share -$0.34 -$0.25 -$0.28
Diluted Earnings Per Share -$0.34 -$0.25 -$0.28
COMMON SHARES
Basic Shares Outstanding 60.08M shares 60.08M shares 41.03M shares
Diluted Shares Outstanding 60.08M shares 59.81M shares 41.03M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $260.5M $252.5M $140.4M
YoY Change 79.78% 79.84% -25.74%
Cash & Equivalents $67.96M $46.93M $78.00M
Short-Term Investments $192.5M $205.6M $62.41M
Other Short-Term Assets $405.0K $395.0K $294.0K
YoY Change 94.71% 34.35% -90.23%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $266.9M $255.8M $144.0M
YoY Change 78.49% 77.62% -25.02%
LONG-TERM ASSETS
Property, Plant & Equipment $105.0K $117.0K $151.0K
YoY Change -22.79% -22.52% -40.08%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $20.91M $44.11M $43.42M
YoY Change -23.44% 1.59% 56.99%
Other Assets $425.0K $324.0K $195.0K
YoY Change 104.33% 66.15% 146.84%
Total Long-Term Assets $22.00M $45.14M $43.83M
YoY Change -21.06% 2.97% 56.6%
TOTAL ASSETS
Total Short-Term Assets $266.9M $255.8M $144.0M
Total Long-Term Assets $22.00M $45.14M $43.83M
Total Assets $288.9M $301.0M $187.9M
YoY Change 62.86% 60.2% -14.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.211M $3.079M $762.0K
YoY Change 107.85% 304.07% -37.49%
Accrued Expenses $4.004M $2.905M $7.923M
YoY Change 68.66% -63.33% 202.64%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00
YoY Change
Total Short-Term Liabilities $15.37M $8.472M $8.779M
YoY Change 80.13% -3.5% 123.04%
LONG-TERM LIABILITIES
Long-Term Debt $29.38M $30.21M $0.00
YoY Change
Other Long-Term Liabilities $219.0K $252.0K
YoY Change
Total Long-Term Liabilities $29.60M $30.46M $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.37M $8.472M $8.779M
Total Long-Term Liabilities $29.60M $30.46M $0.00
Total Liabilities $44.97M $38.93M $8.779M
YoY Change 427.09% 343.48% 119.58%
SHAREHOLDERS EQUITY
Retained Earnings -$258.2M -$237.7M -$181.7M
YoY Change 33.57% 30.82%
Common Stock $6.000K $6.000K $4.000K
YoY Change 50.0% 50.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $243.9M $262.0M $179.1M
YoY Change
Total Liabilities & Shareholders Equity $288.9M $301.0M $187.9M
YoY Change 62.86% 60.2% -14.64%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$20.54M -$14.87M -$11.31M
YoY Change 76.89% 31.54% 23.86%
Depreciation, Depletion And Amortization $17.00K $16.00K $14.00K
YoY Change 13.33% 14.29% 250.0%
Cash From Operating Activities -$16.55M -$17.86M -$10.18M
YoY Change 41.77% 75.52% 22.61%
INVESTING ACTIVITIES
Capital Expenditures $5.000K $11.00K $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $37.70M -$9.192M -$41.93M
YoY Change 240.78% -78.08% 723.71%
Cash From Investing Activities $37.70M -$9.203M -$41.93M
YoY Change 240.74% -78.05% 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 -128.0K $7.107M $0.00
YoY Change -11.72%
NET CHANGE
Cash From Operating Activities -16.55M -$17.86M -$10.18M
Cash From Investing Activities 37.70M -$9.203M -$41.93M
Cash From Financing Activities -128.0K $7.107M $0.00
Net Change In Cash 21.03M -$19.96M -$52.10M
YoY Change -2899.73% -61.7% 288.88%
FREE CASH FLOW
Cash From Operating Activities -$16.55M -$17.86M -$10.18M
Capital Expenditures $5.000K $11.00K $0.00
Free Cash Flow -$16.55M -$17.87M -$10.18M
YoY Change 41.82% 75.63% 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 a primary toxin involved in the initiation and propagation of AD pathology. The Company is currently focused on advancing a targeted immunotherapy drug candidate, sabirnetug, in the Phase 2 portion of a Phase 2/3 clinical trial called “ALTITUDE-AD” following Phase 1 results in “early AD” patients (patients with mild cognitive impairment or mild dementia due to Alzheimer’s pathology) that were first reported in July 2023. Sabirnetug 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 previously demonstrated in vivo safety and pharmacologic activity in multiple animal species, including transgenic mouse models for AD. The Company intends to amend the ALTITUDE-AD clinical protocol in 2024 to change the current Phase 2/3 study to a Phase 2 standalone study. </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 its 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, 2024 and December 31, 2023, the Company had an accumulated deficit of $237.7 million and $222.8 million, respectively, and working capital of $247.4 million and $233.6 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, if approved for commercial sale. 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, as 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 any 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 or 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 completed a Phase 1 clinical trial of sabirnetug in the second quarter of 2023, which the Company named “INTERCEPT-AD.” This trial enrolled 65 patients with “early AD” and 62 participants received at least one dose of study drug. INTERCEPT-AD was 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. In July 2023, the Company announced topline results from INTERCEPT-AD, which demonstrated that sabirnetug met the primary and secondary objectives of this study in 62 participants with early AD. The Company announced the dosing of the first patient in the ALTITUDE-AD study in May 2024.</span></div>
CY2024Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-237700000 usd
CY2023Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2024Q1 abos Working Capital
WorkingCapital
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CY2023Q4 abos Working Capital
WorkingCapital
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CY2023Q2 abos Number Of Patients Enrolled In Trial
NumberOfPatientsEnrolledInTrial
65 patient
CY2023Q2 abos Number Of Participants Enrolled In Trial With One Dose Of Study Drug Received
NumberOfParticipantsEnrolledInTrialWithOneDoseOfStudyDrugReceived
62 participant
CY2023Q3 abos Number Of Participants Enrolled In Trial With One Dose Of Study Drug Received With Primary And Secondary Objectives Met
NumberOfParticipantsEnrolledInTrialWithOneDoseOfStudyDrugReceivedWithPrimaryAndSecondaryObjectivesMet
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CY2024Q1 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><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%">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. The more significant estimates and assumptions by management include, among others: the valuation allowance of deferred tax assets resulting from net operating losses, the valuation of stock options and the valuation of embedded derivatives within the Company’s long-term debt.</span></div>
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CashEquivalentsAtCarryingValue
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CY2024Q1 us-gaap Assets Fair Value Disclosure
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EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability
2610000 usd
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LiabilitiesFairValueDisclosure
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CY2023Q4 us-gaap Assets Fair Value Disclosure
AssetsFairValueDisclosure
305396000 usd
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EmbeddedDerivativeFairValueOfEmbeddedDerivativeLiability
2560000 usd
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LiabilitiesFairValueDisclosure
2560000 usd
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ResearchAndDevelopmentServiceAgreementsCurrent
2200000 usd
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1035000 usd
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InterestPayableCurrent
249000 usd
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InterestPayableCurrent
249000 usd
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481000 usd
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212000 usd
CY2024Q1 us-gaap Accrued Liabilities Current
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2905000 usd
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CY2024Q1 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
6000 usd
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FinanceLeaseInterestExpense
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CY2024Q1 abos Finance Lease Expense
FinanceLeaseExpense
6000 usd
CY2024Q1 us-gaap Operating Lease Cost
OperatingLeaseCost
37000 usd
CY2023Q1 us-gaap Operating Lease Cost
OperatingLeaseCost
40000 usd
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VariableLeaseCost
1000 usd
CY2023Q1 us-gaap Variable Lease Cost
VariableLeaseCost
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SubleaseIncome
0 usd
CY2023Q1 us-gaap Sublease Income
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3000 usd
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OperatingLeaseExpense
38000 usd
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OperatingLeaseExpense
37000 usd
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ShortTermLeaseRentExpense
18000 usd
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1000 usd
CY2024Q1 us-gaap Lease Cost
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62000 usd
CY2023Q1 us-gaap Lease Cost
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38000 usd
CY2024Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
739000 usd
CY2023Q1 us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
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CY2024Q1 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
23000 usd
CY2023Q1 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
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CY2024Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
30000 usd
CY2023Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
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OperatingLeaseWeightedAverageDiscountRatePercent
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113000 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
155000 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
158000 usd
CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2024Q1 abos Common Stock And Preferred Stock Shares Authorized
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310000000 shares
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AllocatedShareBasedCompensationExpense
2484000 usd
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AllocatedShareBasedCompensationExpense
1390000 usd
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
8062000 usd
CY2024Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
13158055 shares
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
7567393 shares

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