Matinas BioPharma Holdings, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. Unless otherwise noted, financial amounts below are in thousands of dollars. Matinas is a clinical-stage biopharmaceutical company developing products using its lipid nanocrystal (LNC) delivery platform; it has no approved products and has generated no product-sales revenue.
Financial results and liquidity
| Metric | Q1 2024 | Q1 2023 / comparison |
|---|---|---|
| Revenue | $0 | $1,096 |
| Research and development expense | $3,446 | $3,970 |
| General and administrative expense | $2,456 | $2,712 |
| Total costs and expenses | $5,902 | $6,682 |
| Operating loss | $(5,902) | $(5,586) |
| Other income, net | $78 | $73 |
| Net loss | $(5,824) | $(5,513) |
| Basic and diluted loss per share | $(0.03) | $(0.03) |
| Cash used in operating activities | $(5,769) | $(4,087) |
Revenue in Q1 2023 came from BioNTech and Genentech collaboration work; the BioNTech agreement expired in April 2023, and the company completed its remaining Genentech obligations in Q1 2023. R&D expense fell primarily because of lower clinical-trial consulting and headcount costs; G&A fell primarily because of lower stock-based compensation and insurance premiums. Despite lower expenses, the operating and net losses increased year over year because there was no comparable collaboration revenue.
At March 31, 2024, cash and cash equivalents were $1,071, marketable debt securities were $7,039, and restricted cash was $250. Cash, cash equivalents, and marketable securities totaled $8,110, excluding restricted cash. Total assets were $19,610; total liabilities were $5,052; and stockholders’ equity was $14,558. The company reported lease liabilities, including $3,378 of operating lease liabilities and $21 of finance lease liabilities; no conventional borrowings are identified in the supplied filing text. There is no meaningful product gross margin reported.
Material changes, outlook, and risks
- Operating cash use rose to $5,769 from $4,087. Cash, cash equivalents, and restricted cash decreased by $3,716 during the quarter; the company received $2,000 from maturities of marketable securities.
- On April 5, 2024, the company completed a registered direct offering of 33,333,334 common shares and warrants to purchase up to 33,333,334 additional shares. It reported approximately $10,000 gross proceeds and $9,250 net proceeds. The offering is a subsequent event and does not change the March 31 balance-sheet figures.
- Management expects 2024 R&D expense to be lower than in 2023 until additional funding is secured to support initiation of the ORALTO trial for MAT2203 and advancement of the LNC platform; it anticipates a slight decrease in 2024 G&A expense. The company is seeking a development and/or commercial partner for MAT2203 and describes ORALTO as targeting invasive aspergillosis.
- The company has incurred losses and negative operating cash flows since inception, reported an accumulated deficit of $181,397, and expects substantial future losses. Management states existing cash and marketable securities are not sufficient to fund planned operations beyond the next twelve months from the filing date; substantial doubt about the company’s ability to continue as a going concern remains. The company depends on expense controls, potential ATM sales, and additional financing, none of which is assured.
- Key risks include clinical-trial efficacy, safety, recruitment and timing; regulatory approval; manufacturing and third-party dependencies; intellectual-property protection; and access to financing. Equity financing may dilute existing holders. The filing reports no legal proceedings and no material change to the previously disclosed risk factors other than as described in the filing.
Important facts for investors to verify
- How the April offering proceeds affect the company’s cash runway and whether management’s going-concern assessment has changed.
- The funding, partner, and timing assumptions behind the proposed MAT2203 ORALTO trial and the stated 2024 R&D outlook.
- The terms and potential dilution from the April offering warrants, alongside the common shares outstanding; the filing reports 250,816,164 shares outstanding as of May 3, 2024.
- Whether additional financing, collaborations, or licensing arrangements become available on acceptable terms.