What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-05-02 · 86 added, 66 removed, 405 unchanged (27% of the section changed)

4 unchanged sentences

Dollars, except share amounts)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Current assets:

37 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

Collaborations and licenses $ 1,155 $ 3,885 $ 2,094 $ 9,394

9 unchanged sentences

Interest expense ( 34 ) ( 171 ) ( 78 ) ( 369 )

Foreign exchange gain ( 13 ) 4

Foreign exchange (loss)/gain ( 8 ) 1 ( 21 ) 5

Total other income 1,787 1,291 3,275 2,365

23 unchanged sentences

Balance March 31, 2024 180,192,227 $ 1,377,315 $ 80,220 $ ( 1,294,527 ) $ ( 48,371 ) $ 114,637

Stock-based compensation expense — — 3,180 — — 3,180

Issuance of common shares pursuant to the Open Market Sale Agreement 7,833,922 22,359 — — — 22,359

Issuance of common shares pursuant to exercise of options 712,895 3,660 ( 1,649 ) — — 2,011

Unrealized gain on available-for-sale securities — — — — 63 63

Net loss — — — ( 19,796 ) ( 19,796 )

Balance June 30, 2024 188,739,044 $ 1,403,334 $ 81,751 $ ( 1,314,323 ) $ ( 48,308 ) $ 122,454

See accompanying notes to the condensed consolidated financial statements.

ARBUTUS BIOPHARMA CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands of U.S.

Dollars, except share amounts)

Common Shares

8 unchanged sentences

Balance March 31, 2023 165,132,193 $ 1,339,453 $ 74,238 $ ( 1,220,142 ) $ ( 49,634 ) $ 143,915

Stock-based compensation expense — — 2,964 — — 2,964

Issuance of common shares pursuant to the Open Market Sale Agreement 1,790,546 4,742 — — — 4,742

Unrealized loss on available-for-sale securities — — — — 166 166

Net loss — — — ( 17,094 ) — ( 17,094 )

Balance June 30, 2023 166,922,739 $ 1,344,195 $ 77,202 $ ( 1,237,236 ) $ ( 49,468 ) $ 134,693

See accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

(In thousands of U.S.

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

25 unchanged sentences

Effect of foreign exchange rate changes on cash and cash equivalents ( 21 ) 3

Increase in cash and cash equivalents 16,816 9,798

Increase/(decrease) in cash and cash equivalents 36,503 ( 3,579 )

Cash and cash equivalents, beginning of period 26,285 30,776

7 unchanged sentences

Description of the Business

Arbutus Biopharma Corporation (“Arbutus” or “the Company”) is a clinical-stage biopharmaceutical company leveraging its extensive virology expertise to identify and develop novel therapeutics with distinct mechanisms of action, which can potentially be combined to provide a functional cure for patients with chronic hepatitis B virus (cHBV) infection.

Arbutus Biopharma Corporation (“Arbutus” or “the Company”) is a clinical-stage biopharmaceutical company leveraging its extensive virology expertise to develop novel therapeutics with distinct mechanisms of action, which can potentially be combined to provide a functional cure for patients with chronic hepatitis B virus (cHBV) infection.

The Company believes the key to success in developing a functional cure involves suppressing hepatitis B virus deoxyribonucleic acid, reducing hepatitis B surface antigen and boosting HBV-specific immune responses.

1 unchanged sentence

Imdusiran has generated meaningful clinical data demonstrating an impact on both surface antigen reduction and reawakening of the HBV-specific immune response.

Imdusiran is currently in three Phase 2a combination clinical trials.

Imdusiran is currently in two Phase 2a combination clinical trials.

AB-101 is currently being evaluated in a Phase 1a/1b clinical trial.

The Company continues to protect and defend its intellectual property, which is the subject of the Company’s on-going lawsuits against Moderna and Pfizer/BioNTech for their use of its patented LNP technology in their COVID-19 vaccines.

The Company continues to protect and defend its intellectual property, which is the subject of the Company’s ongoing lawsuits against Moderna and Pfizer/BioNTech for their use of the Company’s patented lipid nanoparticle (LNP) technology in their COVID-19 vaccines.

With respect to the Moderna lawsuit, the claim construction hearing occurred on February 8, 2024.

On April 3, 2024, the Court provided its claim construction ruling, in which it construed the disputed claim terms and agreed with Arbutus’ position on most of the disputed claim terms.

Fact discovery is on-going and next steps include expert reports and depositions.

A trial date has been set for April 21, 2025, and is subject to change.

On April 3, 2024, the court provided its claim construction ruling in which it construed the disputed claim terms and agreed with the Company’s position on most of the disputed claim terms.

On August 5, 2024, the Company and Genevant Sciences Ltd.

(Genevant), along with Moderna, filed a Stipulation to Extend Time (the Stipulation) with the court requesting an amended case schedule to accommodate certain outstanding discovery from Moderna and third parties, as specified in the Stipulation, which would move the start of the trial from April 21, 2025 to September 24, 2025, subject to the court’s availability.

The Stipulation, and the new deadlines set forth therein, are subject to the approval of the court.

A conference to discuss the Stipulation has been scheduled by the court for August 15, 2024.

The lawsuit against Pfizer/BioNTech is ongoing and a date for a claim construction hearing has not been set.

At March 31, 2024, the Company had an aggregate of $ 137.9 million in cash, cash equivalents and investments in marketable securities.

The Company had no outstanding debt as of March 31, 2024.

At June 30, 2024, the Company had an aggregate of $ 148.5 million in cash, cash equivalents and investments in marketable securities.

The Company had no outstanding debt as of June 30, 2024.

The Company believes it has sufficient cash resources to fund its operations for at least the next 12 months.

6 unchanged sentences

These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

These unaudited condensed consolidated financial statements include the accounts of Arbutus Biopharma Corporation and its one wholly-owned subsidiary, Arbutus Biopharma, Inc., and reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company’s financial position as of March 31, 2024 and December 31, 2023, the Company’s results of operations for the three months ended March 31, 2024 and 2023, and the Company’s cash flows for the three months ended March 31, 2024 and 2023.

These unaudited condensed consolidated financial statements include the accounts of Arbutus Biopharma Corporation and its one wholly-owned subsidiary, Arbutus Biopharma, Inc., and reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company’s financial position as of June 30, 2024 and December 31, 2023, the Company’s results of operations for the three and six months ended June 30, 2024 and 2023, and the Company’s cash flows for the six months ended June 30, 2024 and 2023.

Such adjustments are of a normal recurring nature.

The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results for the full year.

These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2023, except as described below under Recent Accounting Pronouncements.

The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results for the full year.

All intercompany balances and transactions have been eliminated.

1 unchanged sentence

Net loss per share is calculated based on the weighted average number of common shares outstanding.

Diluted net loss per share does not differ from basic net loss per share for the three months ended March 31, 2024 and 2023, since the effect of including potential common shares would be anti-dilutive.

For the three months ended March 31, 2024, potential common shares of 22.6 million pertaining to outstanding stock options and unvested restricted stock units were excluded from the calculation of net loss per share.

A total of approximately 19.7 million outstanding stock options were excluded from the calculation for the three months ended March 31, 2023.

Diluted net loss per share does not differ from basic net loss per share for the three and six months ended June 30, 2024 and 2023, since the effect of including potential common shares would be anti-dilutive.

For the six months ended June 30, 2024, potential common shares of 20.5 million pertaining to outstanding stock options and unvested restricted stock units were excluded from the calculation of net loss per share.

A total of approximately 20.2 million outstanding stock options were excluded from the calculation for the six months ended June 30, 2023.

Revenue from collaborations and licenses

14 unchanged sentences

The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services.

Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur.

Consideration associated with at-risk substantive performance milestones, including

sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur.

Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur.

7 unchanged sentences

Recent accounting pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses:

Measurement of Credit Losses in Financial Instruments (ASC 326).

The guidance was effective for the Company beginning January 1, 2023 and it changed how entities account for credit losses on the financial assets and other instruments that are not measured at fair value through net income, including available-for-sale debt securities.

The adoption of ASC 326 did not have a material impact on the Company’s results of operations or financial position.

In November 2023, the FASB issued ASU No.

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2023-07, Segment Reporting (Topic 280):

27 unchanged sentences

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the immediate or short-term maturity of these financial instruments.

To determine the fair value of the contingent consideration (Note 8), the Company uses a probability weighted assessment of the likelihood the milestones would be met and the estimated timing of such payments, and then the potential contingent payments are discounted to their present value using a probability adjusted discount rate that reflects the early stage nature of

the development program, the time to complete the program development, and overall biotech indices.

The Company determined the fair value of the contingent consideration was $ 7.8 million as of March 31, 2024 and the increase of $ 0.2 million from December 31, 2023 has been recorded as a component of total operating expenses in the statements of operations and comprehensive loss for the three months ended March 31, 2024.

The Company determined the fair value of the contingent consideration was $ 8.0 million as of June 30, 2024 and the increase of $ 0.4 million from December 31, 2023 has been recorded as a component of total operating expenses in the statements of operations and comprehensive loss for the six months ended June 30, 2024.

The assumptions used in the discounted cash flow model are level 3 inputs as defined above.

2 unchanged sentences

Level 1 Level 2 Level 3 Total

As of March 31, 2024 (in thousands)

As of June 30, 2024 (in thousands)

Cash and cash equivalents $ 62,788 $ — $ — $ 62,788

15 unchanged sentences

(in thousands)

Three Months Ended March 31, 2024 $ 7,600 $ 180 $ 7,780

Three Months Ended March 31, 2023 $ 7,531 $ 273 $ 7,804

Six Months Ended June 30, 2024 $ 7,600 $ 391 $ 7,991

Six Months Ended June 30, 2023 $ 7,531 $ ( 363 ) $ 7,168

See Note 4 for additional information regarding the fair value of the Company’s investments in marketable securities.

3 unchanged sentences

Gross Unrealized Loss (1)

As of March 31, 2024 (in thousands)

As of June 30, 2024 (in thousands)

Cash equivalents

3 unchanged sentences

Investments in marketable short-term securities

US government agency bonds $ 10,172 $ — $ ( 17 ) $ 10,155

US corporate bonds 41,860 — ( 90 ) 41,770

22 unchanged sentences

(1) Gross unrealized gain (loss) is pre-tax and is reported in accumulated other comprehensive loss.

The contractual term to maturity of the $ 86.1 million of short-term marketable securities held by the Company as of March 31, 2024 is less than one year.

As of March 31, 2024, the Company held $ 8.7 million of long-term marketable securities with contractual maturities of more than one year, but less than five years.

The contractual term to maturity of the $ 79.2 million of short-term marketable securities held by the Company as of June 30, 2024 is less than one year.

As of June 30, 2024, the Company held $ 6.5 million of long-term marketable securities with contractual maturities of more than one year, but less than five years.

As of December 31, 2023, the Company’s $ 99.7 million of short-term marketable securities had contractual maturities of less than one year, while the Company’s $ 6.3 million of long-term marketable securities had maturities of more than one year, but less than five years.

At March 31, 2024 and December 31, 2023, the Company had 42 and 37 , respectively, available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses.

At June 30, 2024 and December 31, 2023, the Company had 28 and 37 , respectively, available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses.

Unrealized losses on the Company’s investments in debt securities have not been recognized into income as the issuers’ bonds are of high credit quality and the decline in fair value is largely due to market conditions and/or changes in interest rates.

2 unchanged sentences

The fair value is expected to recover as the bonds approach maturity.

Accrued interest receivable on investments in marketable securities of $ 0.6 million at both March 31, 2024 and December 31, 2023 is included in prepaid expenses and other current assets.

The Company had realized gains of less than $ 0.1 million for the three months ended March 31, 2024 and no realized gains or losses for the same period in 2023.

Accrued interest receivable on investments in marketable securities of $ 0.3 million at both June 30, 2024 and December 31, 2023 is included in prepaid expenses and other current assets.

The Company had realized gains of less than $ 0.1 million for the three and six months ended June 30, 2024 and no realized gains or losses for the same periods in 2023.

See Note 3 for additional information regarding the fair value of the Company’s investments in marketable securities.

1 unchanged sentence

In April 2018, the Company entered into an agreement with Roivant Sciences Ltd.

(Roivant), its largest shareholder, to launch Genevant Sciences Ltd.

(Genevant), a company focused on a broad range of RNA-based therapeutics enabled by the Company’s lipid nanoparticle (LNP) and ligand conjugate delivery technologies.

(Roivant), its largest shareholder, to launch Genevant, a company focused on a broad range of RNA-based therapeutics enabled by the Company’s LNP and ligand conjugate delivery technologies.

The Company licensed rights to its LNP and ligand conjugate delivery platforms to Genevant for RNA-based applications outside of HBV, except to the extent certain rights had already been licensed to other third parties (the Genevant License).

5 unchanged sentences

Accordingly, an estimate of the fair value of the securities is based on the original cost less previously recognized equity method losses, less impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or a similar Genevant securities.

As of March 31, 2024, the carrying value of the Company’s investment in Genevant was zero and the Company owned approximately 16 % of the common equity of Genevant.

As of June 30, 2024, the carrying value of the Company’s investment in Genevant was zero and the Company owned approximately 16 % of the common equity of Genevant.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are comprised of the following:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

(in thousands)

13 unchanged sentences

The discount, as well as $ 1.5 million of transaction costs, will be amortized as interest expense based on the projected balance of the liability as of the beginning of each period.

As of March 31, 2024, the Company estimated an effective annual interest rate of approximately 2.0 %.

As of June 30, 2024, the Company estimated an effective annual interest rate of approximately 2.1 %.

Over the course of the Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized and changes in the timing of forecasted royalty revenue.

2 unchanged sentences

As royalties are remitted to OMERS from Alnylam, the balance of the recognized liability is effectively repaid over the life of the Agreement.

From the inception of the royalty sale through March 31, 2024, the Company has recorded an aggregate of $ 23.3 million of non-cash royalty revenue for royalties earned by OMERS.

From the inception of the royalty sale through June 30, 2024, the Company has recorded an aggregate of $ 23.8 million of non-cash royalty revenue for royalties earned by OMERS.

There are a number of factors that could materially affect the amount and timing of royalty payments from Alnylam, none of which are within the Company’s control.

During the three months ended March 31, 2024, the Company recognized non-cash royalty revenue of $ 0.6 million and related non-cash interest expense of less than $ 0.1 million.

During the three months ended March 31, 2023, the Company recognized non-cash royalty revenue of $ 1.2 million and related non-cash interest expense of $ 0.2 million.

The table below shows the activity related to the net liability for the three months ended March 31, 2024 and 2023:

Three Months Ended March 31,

During the six months ended June 30, 2024, the Company recognized non-cash royalty revenue of $ 1.2 million and related non-cash interest expense of less than $ 0.1 million.

During the six months ended June 30, 2023, the Company recognized non-cash royalty revenue of $ 1.9 million and related non-cash interest expense of $ 0.4 million.

The table below shows the activity related to the net liability for the six months ended June 30, 2024 and 2023:

Six Months Ended June 30,

(in thousands)

12 unchanged sentences

The contingent consideration is a financial liability and is measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded in the statements of operations and comprehensive loss (see Note 3).

The fair value of the contingent consideration was $ 7.8 million as of March 31, 2024.

The fair value of the contingent consideration was $ 8.0 million as of June 30, 2024.

Collaborations, contracts and licensing agreements

9 unchanged sentences

Qilu is required to use commercially reasonable efforts to develop, seek regulatory approval for, and commercialize at least one imdusiran product candidate in the Territory.

A joint development committee has been established between the Company and Qilu to coordinate and review the development, manufacturing and commercialization plans.

A joint development

committee has been established between the Company and Qilu to coordinate and review the development, manufacturing and commercialization plans.

Both parties also have entered into a supply agreement and related quality agreement pursuant to which the Company will manufacture or have manufactured and supply Qilu with all quantities of imdusiran necessary for Qilu to develop and commercialize in the Territory until the Company has completed manufacturing technology transfer to Qilu and Qilu has received all approvals required for it or its designated contract manufacturing organization to manufacture imdusiran in the Territory.

18 unchanged sentences

Total deferred license revenue 11,034

The Company recognized $ 0.2 million of revenue based on labor hours expended by the Company on its Manufacturing Obligations during the three months ended March 31, 2024 and $ 4.1 million during the three months ended March 31, 2023.

As of March 31, 2024, the balance of the deferred license revenue was $ 13.5 million, which, in accordance with ASC 210-20, was partially offset by the contract asset associated with the manufacturing cost reimbursement of $ 2.0 million, resulting in a net deferred license revenue liability of $ 11.5 million.

The Company recognized $ 0.5 million and $ 0.8 million of revenue based on labor hours expended by the Company on its Manufacturing Obligations during the three and six months ended June 30, 2024, respectively, and $ 3.0 million and $ 7.1 million during the three and six months ended June 30, 2023, respectively.

As of June 30, 2024, the balance of the deferred license revenue was $ 13.0 million, which, in accordance with ASC 210-20, was partially offset by the contract asset associated with the manufacturing cost reimbursement of $ 2.0 million, resulting in a net deferred license revenue liability of $ 11.0 million.

The Company incurred $ 0.6 million of incremental costs in obtaining the Qilu License, which the Company capitalized in other current assets and other assets and amortizes as a component of general and administrative expense commensurate with the recognition of the combined performance obligation.

The Company recognized amortization expense of less than $ 0.1 million for both the three months ended March 31, 2024, and 2023.

The Company recognized amortization expense of less than $ 0.1 million for both the three and six months ended June 30, 2024 and amortization expense of less than $ 0.1 million for the three months ended June 30, 2023 and $ 0.1 million for the six months ended June 30, 2023.

The Company reevaluates the transaction price and the total estimated labor hours expected to be incurred to satisfy the performance obligations and adjusts the deferred revenue at the end of each reporting period.

2 unchanged sentences

In July 2021, the Company entered into a clinical collaboration agreement with Barinthus Biotherapeutics plc (Barinthus), formerly Vaccitech plc, to evaluate imdusiran followed by Barinthus’ VTP-300, an HBV antigen specific immunotherapy, and ongoing nucleos(t)ide analogue therapy in patients with cHBV.

Recently, the clinical trial was amended and is now dosing patients in an additional treatment arm that includes an approved PD-1 monoclonal antibody inhibitor, nivolumab (Opdivo ® ).

This clinical trial was amended and is now dosing patients in an additional treatment arm that includes an approved PD-1 monoclonal antibody inhibitor, nivolumab (Opdivo ® ).

The Company is responsible for managing this Phase 2a proof-of-concept clinical trial, subject to oversight by a joint development committee comprised of representatives from the Company and Barinthus.

The Company and Barinthus retain full

rights to their respective product candidates and will split all costs associated with the clinical trial.

The Company incurred $ 0.5 million and $ 0.6 million of expenses, net of Barinthus’s 50% share, during the three months ended March 31, 2024 and 2023, respectively, and reflected those costs in research and development in the statements of operations and comprehensive loss.

The Company and Barinthus retain full rights to their respective product candidates and will split all costs associated with the clinical trial.

The Company incurred $ 0.5 million and $ 1.0 million of expenses, net of Barinthus’s 50% share, during the three and six months ended June 30, 2024, respectively, and $ 0.3 million and $ 0.8 million during the three and six months ended June 30, 2023 respectively, and reflected those costs in research and development in the statements of operations and comprehensive loss.

Royalty Entitlements

9 unchanged sentences

If this royalty entitlement reverts to the Company, it has the potential to provide an active royalty stream or to be otherwise monetized again in full or in part.

From the inception of the royalty sale through March 31, 2024, an aggregate of $ 23.3 million of royalties have been earned by OMERS.

From the inception of the royalty sale through June 30, 2024, an aggregate of $ 23.8 million of royalties have been earned by OMERS.

The Company also is receiving a second royalty interest of 0.75 % to 1.125 % on global net sales of ONPATTRO, with 0.75 % applying to sales greater than $ 500 million, originating from a settlement agreement and subsequent license agreement with Acuitas.

1 unchanged sentence

Revenues are summarized in the following table:

Three Months Ended March 31,

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(in thousands) (in thousands)

Revenue from collaborations and licenses

2 unchanged sentences

Qilu Pharmaceutical Co., Ltd.

513 3,024 757 7,128

Non-cash royalty revenue

Alnylam Pharmaceuticals, Inc.

571 766 1,164 1,944

Total revenue $ 1,726 $ 4,651 $ 3,258 $ 11,338

26 unchanged sentences

and (iii) the November 2021 Registration Statement, of which only the November 2021 Registration Statement remains active.

During the three months ended March 31, 2024, the Company issued 8,666,077 common shares pursuant to the Sale Agreement resulting in net proceeds of approximately $ 21.8 million.

During the three months ended March 31, 2023, the Company issued 7,423,622 common shares pursuant to the Sale Agreement, resulting in net proceeds of $ 19.9 million.

During April 2024, the Company issued an additional 7,833,922 common shares pursuant to the Sale Agreement resulting in net proceeds of approximately $ 22.4 million.

As of April 30, 2024, there was approximately $ 25.4 million of common shares remaining available in aggregate under the March 2022 Prospectus Supplement, pursuant to the November 2021 Registration Statement.

During the three and six months ended June 30, 2024, the Company issued 7,833,922 and 16,499,999 common shares pursuant to the Sale Agreement, respectively, resulting in net proceeds of approximately $ 22.4 million and $ 44.1 million, respectively.

During the three and six months ended June 30, 2023, the Company issued 1,790,546 and 9,214,168 common shares pursuant to the Sale Agreement, respectively, resulting in net proceeds of $ 4.7 million and $ 24.6 million, respectively.

As of June 30, 2024, there was approximately $ 25.4 million of common shares remaining available in aggregate under the March 2022 Prospectus Supplement, pursuant to the November 2021 Registration Statement.

Stock-based compensation

The table below summarizes information about the Company’s stock-based compensation for the three months ended March 31, 2024 and 2023 and the expense recognized in the condensed consolidated statements of operations:

Three Months Ended March 31,

The table below summarizes information about the Company’s stock-based compensation for the three and six months ended June 30, 2024 and 2023 and the expense recognized in the condensed consolidated statements of operations:

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 2024 2023

(in thousands, except share and per share data)

9 unchanged sentences

Total stock compensation expense $ 3,180 $ 2,964 $ 5,194 $ 5,095

Subsequent events

On July 29, 2024, the Company’s Board of Directors took action, effective August 1, 2024, to streamline the organization to focus its efforts on advancing the clinical development of imdusiran and AB-101, and therefore ceased all discovery efforts and discontinued its IM-PROVE III clinical trial.

In taking these steps to streamline the organization, the Company is implementing a 40 % reduction in its workforce, primarily affecting the discovery and general and administrative functions.

As a result, the Company will incur a one-time restructuring charge in the third quarter of 2024 of approximately $ 3.0 million to $ 4.0 million, which includes approximately $ 2.9 million of cash severance and continued benefits payments, a non-cash impairment charge for laboratory equipment of approximately $ 0.5 million and approximately $ 0.2 million to $ 0.4 million of cash payments to vendors for close-out activities in connection with the cessation of discovery efforts and the discontinuation of the IM-PROVE III clinical trial.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements