2023 Q4 Form 20-F Financial Statement

#000095017024041615 Filed on April 04, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023 2022
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $3.622M $17.01M $21.12M
YoY Change -8.49% -19.46% -3.87%
% of Gross Profit
Research & Development $15.89M $58.25M $57.26M
YoY Change -15.81% 1.72% 35.62%
% of Gross Profit
Depreciation & Amortization $1.148M $4.713M $3.690M
YoY Change 38.15% 27.72% 12.23%
% of Gross Profit
Operating Expenses $19.51M $75.26M $78.38M
YoY Change -14.54% -3.99% 22.1%
Operating Profit -$75.26M -$78.38M
YoY Change -3.99% 22.1%
Interest Expense -$600.0K -$1.000M $3.800M
YoY Change -75.0% -126.32% 52.0%
% of Operating Profit
Other Income/Expense, Net $1.989M $7.081M $7.318M
YoY Change 63.17% -3.24% 1056.08%
Pretax Income -$18.13M -$69.17M -$71.07M
YoY Change -24.53% -2.66% 16.38%
Income Tax $505.0K $491.0K $111.0K
% Of Pretax Income
Net Earnings -$18.63M -$69.67M -$71.18M
YoY Change -22.56% -2.12% 16.49%
Net Earnings / Revenue
Basic Earnings Per Share -$1.74 -$1.82
Diluted Earnings Per Share -$0.46 -$1.74 -$1.82
COMMON SHARES
Basic Shares Outstanding 41.08M 39.97M 39.14M
Diluted Shares Outstanding 39.97M 39.14M

Balance Sheet

Concept 2023 Q4 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $131.5M $131.5M $173.3M
YoY Change -24.11% -24.11% -34.91%
Cash & Equivalents $131.5M $131.5M $173.3M
Short-Term Investments
Other Short-Term Assets $13.30M $13.30M $22.47M
YoY Change 408.64% -40.81% 26.38%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $145.6M $145.6M $196.6M
YoY Change -25.92% -25.92% -30.96%
LONG-TERM ASSETS
Property, Plant & Equipment $13.54M $13.54M $20.48M
YoY Change 9.23% -33.87% -28.87%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.280M $2.280M $3.298M
YoY Change -24.35% -30.87% -7.52%
Total Long-Term Assets $15.82M $15.82M $23.78M
YoY Change -33.46% -33.46% -26.51%
TOTAL ASSETS
Total Short-Term Assets $145.6M $145.6M $196.6M
Total Long-Term Assets $15.82M $15.82M $23.78M
Total Assets $161.5M $161.5M $220.4M
YoY Change -26.73% -26.73% -30.51%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.629M $5.629M $5.187M
YoY Change 8.52% 8.52% 39.36%
Accrued Expenses $10.52M $10.52M $11.27M
YoY Change 26.83% -6.68% -20.18%
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 $17.00M $17.00M $17.99M
YoY Change -5.54% -5.54% -5.85%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.091M $2.091M $5.321M
YoY Change 124.12% -60.7% -37.16%
Total Long-Term Liabilities $2.091M $2.091M $5.321M
YoY Change -60.7% -60.7% -37.16%
TOTAL LIABILITIES
Total Short-Term Liabilities $17.00M $17.00M $17.99M
Total Long-Term Liabilities $2.091M $2.091M $5.321M
Total Liabilities $19.09M $19.09M $23.31M
YoY Change -18.13% -18.13% -15.46%
SHAREHOLDERS EQUITY
Retained Earnings -$260.0M
YoY Change 36.63%
Common Stock $54.00K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $142.4M $142.4M $197.0M
YoY Change
Total Liabilities & Shareholders Equity $161.5M $161.5M $220.4M
YoY Change -26.73% -26.73% -30.51%

Cashflow Statement

Concept 2023 Q4 2023 2022
OPERATING ACTIVITIES
Net Income -$18.63M -$69.67M -$71.18M
YoY Change -22.56% -2.12% 16.49%
Depreciation, Depletion And Amortization $1.148M $4.713M $3.690M
YoY Change 38.15% 27.72% 12.23%
Cash From Operating Activities -$14.19M -$48.45M -$59.54M
YoY Change -26.64% -18.62% 0.42%
INVESTING ACTIVITIES
Capital Expenditures $46.00K $1.100M $7.512M
YoY Change -97.72% -85.36% -198.4%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$46.00K -$1.100M -$7.512M
YoY Change -97.72% -85.36% -1.6%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $9.000K $1.000K
YoY Change 800.0% -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 9.000K 1.000K
YoY Change 800.0% -100.0%
NET CHANGE
Cash From Operating Activities -14.19M -48.45M -59.54M
Cash From Investing Activities -46.00K -1.100M -7.512M
Cash From Financing Activities 0.000 9.000K 1.000K
Net Change In Cash -14.24M -49.54M -92.98M
YoY Change -33.35% -46.72% -199.09%
FREE CASH FLOW
Cash From Operating Activities -$14.19M -$48.45M -$59.54M
Capital Expenditures $46.00K $1.100M $7.512M
Free Cash Flow -$14.24M -$49.55M -$67.05M
YoY Change -33.35% -26.1% 29.81%

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CY2023 us-gaap Nature Of Operations
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<p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">1. Nature of the business</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Achilles Therapeutics plc (formerly Achilles TX Limited) and subsidiaries, or the Company, is a biopharmaceutical company developing AI-powered precision T cell therapies targeting clonal neoantigens to treat solid tumors. The Company is focused on advancing immuno-oncology therapeutics by exploiting its pioneering work in the field of tumor evolution and clonal neoantigens.</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company is a public limited company originally incorporated pursuant to the laws of England and Wales in November 2020 as a private limited company named Achilles TX Limited, with nominal assets and liabilities, for the purposes of becoming the ultimate holding company for Achilles Therapeutics UK Limited (formerly Achilles Therapeutics Limited). Achilles Therapeutics UK Limited was incorporated in May 2016 under the laws of England and Wales and its registered office and principal place of business is currently 245 Hammersmith Road, London W6 8PW. Achilles TX Limited and Achilles Therapeutics Holdings Limited (a wholly owned direct subsidiary of Achilles TX Limited formed in November 2020 for the purpose of becoming the direct holding company of Achilles Therapeutics UK Limited and Achilles Therapeutics US, Inc.) have not conducted any operations prior to the corporate reorganization other than activities incidental to their formation.</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company has devoted its efforts principally to research and development since formation. The Company has not yet completed product development, filed for or obtained regulatory approvals for any products, nor verified the market acceptance and demand for such products. As a result, the Company is subject to risks that are common to emerging companies in the biotech industry, including the uncertainties of the product discovery and development process, dependence on key individuals, development of the same or similar technological innovations by the Company’s competitors, protection of proprietary technology, compliance with government regulations and approval requirements, the Company’s ability to access capital and uncertainty of market acceptance of products.</span></p><div style="font-size:11pt;font-family:'Calibri',sans-serif;"><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Going concern</span></p><p style="font-size:10pt;margin-top:10pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">In accordance with the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern.</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company has historically been loss making and anticipates that it will continue to incur losses for the foreseeable future and had an accumulated deficit of $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">260.0</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million as of December 31, 2023. The Company has funded these losses principally through the issuance of ordinary and preferred shares. The Company expects to continue to incur operating losses and negative cash outflows until such time as it generates a level of revenue that is sufficient to support its cost structure.</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company continues to assess the impact of the disruption of global financial markets, including as a result of global health concerns or pandemics, global economic uncertainty and geo-political events, including the war between Russia and Ukraine and the unrest in the Middle East resulting from the Israel-Hamas war and other global macroeconomic factors such as inflation, increases in commodity prices, energy and fuel prices, credit and capital markets instability and supply chain interruptions could reduce our ability to access capital, which could, in the future, negatively affect our business and the value of our common shares.</span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="font-size:10pt;margin-top:0;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Geopolitical events, including the ongoing conflict between Russia and Ukraine and the unrest in the Middle East resulting from the Israel-Hamas war, have created global economic uncertainty. This has led to significant increases in commodity prices, energy and fuel prices, credit and capital market instability and supply chain interruptions which have led to increasing inflation. This may in turn adversely impact the Company’s ability to deliver its goals.</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">As of December 31, 2023, the Company had cash and cash equivalents of $</span><span style="font-size:10pt;font-family:Times New Roman;color:#000000;white-space:pre-wrap;min-width:fit-content;">131.5</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> million. The Directors have reviewed the financial projections of the Company for the 12 months subsequent to the date of issuance of these financial statements including consideration of severe but plausible scenarios that may affect the Company in that period. These show that the Company will be able to pay (or otherwise discharge) its debts as they fall due immediately following the date of signing of this Balance Sheet and for the period considered by the forecast.</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Accordingly, the financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and settlement of liabilities and commitments as they fall due in the ordinary course of business for at least 12 months from the date of issuance of the financial statements.</span></p></div>
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<p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:8pt;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Use of estimates</span></p><p style="font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:8pt;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Estimates and assumptions reflected in these financial statements include, but are not limited to, the accrual for research and development expenses, the fair value of share options granted and incremental borrowing rate for leases. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ materially from those estimates.</span></p>
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