Immunome, Inc. — Q1 2021 Form 10-Q
Reporting period: Three months ended March 31, 2021. Immunome is a development-stage biopharmaceutical company using a human memory B-cell platform to develop antibody therapeutics, with a focus on oncology and infectious disease. All programs were in preclinical development, and the company had no product revenue.
Financial performance and position
- Revenue: None reported. The filing does not provide a clear gross-margin measure; the company had no product sales.
- Operating expenses: $3.897 million, up $1.242 million from $2.655 million in Q1 2020. Research and development was $1.979 million versus $2.115 million; general and administrative expense rose to $1.918 million from $0.540 million.
- Net loss: $3.898 million, compared with $2.677 million in Q1 2020. Basic and diluted net loss per share was $0.37 versus $2.44; weighted-average shares increased to 10.64 million from 1.10 million, largely reflecting the 2020 IPO and conversion of preferred shares.
- Research funding: Reported R&D expense was net of $4.0 million of DoD reimbursements in Q1 2021. The company reported a $2.6 million DoD reimbursement receivable and $0.7 million deferred research obligation at quarter-end.
- Cash flow: Operating cash use was $3.535 million, compared with $2.064 million in Q1 2020. Investing cash use was $0.031 million; financing provided $0.076 million. Cash and restricted cash declined $3.490 million.
- Liquidity and debt: Cash was $36.276 million and restricted cash $0.100 million at March 31. Total liabilities were $4.710 million, including $0.500 million of PPP debt ($0.366 million current) and $0.078 million of equipment loans. The PPP loan forgiveness application was pending.
Changes, outlook, and risks
- G&A increased primarily due to public-company professional, legal, consulting, insurance, personnel, and share-based compensation costs. R&D excluding DoD-funded activity decreased modestly, partly due to lower supplies and outsourced services.
- On April 28, 2021, after quarter-end, Immunome sold 1.0 million shares for $27.0 million gross and issued warrants to purchase 0.5 million shares at $45 per share. Management said cash at March 31 plus these proceeds was expected to fund operations through fiscal 2022; additional financing will be needed thereafter, and the estimate may prove imprecise.
- The company expects continued operating losses and negative operating cash flows, with expenses increasing as it advances preclinical work and pursues future clinical development. It has no committed external funding source and may need to raise capital, collaborate, reduce or delay programs, or pursue other strategic alternatives.
- COVID-19’s future effects on operations and development timelines remain uncertain. The filing reports no significant impact to operations or financial results to date, while noting pandemic-related disruption could affect future clinical trial commencement.
- Disclosure controls and internal control over financial reporting were reported ineffective due to material weaknesses, including insufficient review of journal entries and account balances and inadequate accounting personnel. Remediation was underway but not complete. Management stated the financial statements fairly present results in all material respects.
- No material legal proceedings were reported. No off-balance-sheet arrangements were reported.
Investor facts to verify
- Whether the April private-placement proceeds were received as expected and how the added shares and warrants affect dilution.
- Whether the company maintained its fiscal 2022 cash runway estimate and what additional financing may be required.
- DoD reimbursement timing, eligible costs, and the treatment of the $2.6 million receivable and deferred research obligation.
- Status of PPP loan forgiveness and any repayment obligation if forgiveness is denied.
- Progress and testing of remediation controls for the disclosed material weaknesses.
- How COVID-19 or other development setbacks could affect preclinical plans and future clinical timelines.