Immix Biopharma, Inc. — Q2 2023 Form 10-Q
Reporting period: Three and six months ended June 30, 2023. Unaudited consolidated results. Immix is a clinical-stage biopharmaceutical company with ImmixBio and majority-owned subsidiary Nexcella; it reported no operating revenue.
Key financial metrics
| Metric | Q2 2023 | Q2 2022 | Six months 2023 | Six months 2022 |
|---|---|---|---|---|
| Revenue | $0 reported | $0 reported | $0 reported | $0 reported |
| Operating expenses | $3.72 million | $1.56 million | $6.24 million | $2.89 million |
| Net loss | $3.60 million | $1.56 million | $6.10 million | $2.89 million |
| Loss per share, basic and diluted | $0.24 | $0.11 | $0.42 | $0.21 |
| Operating cash flow | Not separately presented | Not separately presented | $(5.61) million | $(2.04) million |
- At June 30, cash and cash equivalents were $12.65 million, versus $13.44 million at December 31, 2022. Current assets were $15.51 million and current liabilities $2.40 million.
- Total liabilities were $2.40 million; no external borrowing is shown on the consolidated balance sheet. No profit margins are meaningful because the company reported no revenue.
- Six-month financing cash flow was $4.81 million, mainly from common-stock sales and Nexcella stock proceeds, offset by deferred offering costs. Cash declined $0.78 million over the period.
Material changes versus prior comparable periods
- Q2 operating expenses rose about 138% year over year; six-month expenses rose about 116%. Management attributed the increase primarily to clinical-trial and CRO costs, higher professional services and officer salaries, and stock-based compensation.
- R&D expense increased to $2.21 million in Q2 from $0.61 million, and to $3.53 million for the first half from $1.24 million, reflecting ongoing trials, including Nexcella’s CAR-T program.
- Six-month operating cash use increased to $5.61 million from $2.04 million. The company raised equity through its March ATM facility and issued additional shares, increasing dilution.
Outlook, risks and unusual items
- Management expects cash on hand and potential July ATM proceeds to fund planned operations through at least August 11, 2024. The company has recurring losses, an accumulated deficit of $44.04 million, no product revenue, and states it will need additional capital; financing may be unavailable or dilutive.
- The March ATM offering was completed June 15. The July ATM facility allows initially eligible sales of up to $4.2 million, subject to Form S-3 public-float limits. As of August 10, 25,000 shares had generated net proceeds of $51,335. The filing reports March ATM net proceeds differently in its cash-flow and narrative disclosures; see verification items below.
- Nexcella’s Hadasit/BIRAD license entails approximately $13 million of additional quarterly payments through September 2026, a $50,000 annual license fee, 5% royalties on net sales, and sales milestones of up to $20 million.
- Management identified substantial clinical, regulatory, manufacturing, competition, intellectual-property and financing risks. Product candidates remain in development and require further trials and regulatory approval.
- Disclosure controls were deemed ineffective due to a material weakness in internal financial controls, attributed to limited staffing and insufficient formal accounting processes. Management said it was adding accounting consultants and working on remediation.
- The filing reports no material pending litigation and no material changes to previously disclosed risk factors. It provides no formal revenue or earnings guidance.
Most important facts for investors to verify
- Cash runway assumptions, ongoing cash burn, and availability and capacity of future financing.
- ATM proceeds and share issuance: the cash-flow statement shows $4.81 million from common-stock sales, while the narrative cites $4.69 million net proceeds for the March ATM; reconcile the amounts and offering-cost treatment.
- Clinical progress, trial costs and outcomes for IMX-110 and Nexcella’s NXC-201 programs, and the timing and funding of the Hadasit/BIRAD obligations.
- Remediation and subsequent status of the material weakness in internal controls.
- Share-count changes and dilution: 16,261,818 shares outstanding at June 30 versus 16,286,818 reported as of August 11.