Tyra Biosciences, Inc. — Q1 2022 Form 10-Q
Reporting period: Three months ended March 31, 2022. Tyra is a pre-revenue precision oncology company developing targeted therapies, including FGFR inhibitors, using its SNÅP platform.
Financial performance and position
| Metric | Q1 2022 | Q1 2021 / comparison |
|---|---|---|
| Revenue | None | None; the company has never generated revenue |
| Research and development expense | $9.6 million | $3.5 million |
| General and administrative expense | $5.2 million | $0.7 million |
| Total operating expenses | $14.8 million | $4.2 million |
| Net loss | $14.8 million | $4.2 million |
| Net loss per share, basic and diluted | $0.36 | $2.09 |
| Net cash used in operating activities | $8.9 million | $4.7 million |
| Cash, cash equivalents and restricted cash at quarter-end | $293.5 million | $140.9 million at March 31, 2021 |
At March 31, 2022, cash and cash equivalents were $292.5 million, current assets were $294.0 million, total assets were $299.0 million, and total liabilities were $7.8 million. Lease liabilities totaled $2.7 million; the filing reports no material debt financing. The company had an accumulated deficit of $55.2 million. Profitability and margins are not meaningful given the absence of revenue.
Changes and notable items
- Net loss increased $10.6 million year over year, driven by higher development and public-company costs. R&D expense rose $6.1 million, reflecting advancement of TYRA-300, TYRA-200 and other programs, including higher personnel costs. G&A rose $4.5 million, including higher personnel, professional-services and other costs.
- Stock-based compensation was $4.0 million, compared with $0.2 million a year earlier; it included $2.5 million in G&A and $1.5 million in R&D. This non-cash expense materially contributed to the reported loss.
- Cash declined $8.9 million during the quarter. Financing provided $0.2 million, mainly from employee benefit plans; the prior-year quarter included $129.6 million of net preferred-stock proceeds.
- In March 2022, Tyra entered a lease for additional office and laboratory space expected to commence in Q2 2023, with projected lease payments of $5.5 million over its term. The reported lease-liability maturity schedule does not include those future payments as a current liability at quarter-end.
Outlook, risks and contingencies
- Management expected to submit an IND for TYRA-300 in mid-2022 and for TYRA-200 in the second half of 2022. These are forward-looking targets, not assured outcomes.
- Management estimated existing cash and cash equivalents would fund operating expenses and capital expenditures through at least 2024. The filing cautions that this forecast relies on assumptions and actual cash needs may differ. The company expects increasing losses and expenses as it advances candidates and expands operations.
- Tyra identifies development, clinical and regulatory uncertainty; manufacturing and funding needs; possible dilution or unfavorable financing terms; and potential delays or disruption related to COVID-19 as risks. It may need additional capital and could have to reduce or delay programs if financing is unavailable.
- The company reported no material legal proceedings and no material changes to the risk factors in its 2021 annual report. It recorded no loss-contingency liabilities at March 31, 2022. Disclosure controls were deemed effective; management was not yet required to evaluate internal control over financial reporting for this quarter.
Key facts for investors to verify
- Progress against the stated IND submission timelines for TYRA-300 and TYRA-200, and any regulatory or clinical updates.
- Cash burn and whether the projected runway through at least 2024 remains supported as development spending grows.
- The composition and recurrence of stock-based compensation and its effect on reported losses and share dilution.
- Expected costs and commencement timing for the expansion lease, along with other future commitments.
- Potential effects of clinical, regulatory, manufacturing, COVID-19, and future financing risks on development plans.