Allovir Inc

Previous wording

We have incurred significant operating losses since inception, including net losses of $30.3 million for the three months ended March 31, 2024. As of March 31, 2024, we had an accumulated deficit of $686.5 million.

Current wording

We have incurred significant operating losses since inception, including net losses of $6.1 million and $36.4 for the three and six months ended June 30, 2024, respectively. As of June 30, 2024, we had an accumulated deficit of $692.6 million.

Previous wording

At March 31, 2024, we had cash, cash equivalents and short-term investments of $140.5 million. Based on current projections, we believe that our existing cash, cash equivalents and short-term investments, will enable us to fund our operating expenses and capital expenditure requirements through at least twelve months following the issuance of these financial statements. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. However, due to the discontinuation of our clinical trials and research activities, as well as our workforce reduction plan, management has concluded that there is a substantial doubt regarding our ability to continue as a going concern for more than twelve months after the date the condensed consolidated financial statements are available to be issued. See “—Liquidity and Capital Resources.”

Current wording

At June 30, 2024, we had cash, cash equivalents and short-term investments of $129.6 million. Based on current projections, we believe that our existing cash, cash equivalents and short-term investments, will enable us to fund our operating expenses and capital expenditure requirements through at least twelve months following the issuance of these financial statements. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. However, due to the discontinuation of our clinical trials and research activities, as well as our workforce reduction plan, management has concluded that there is a substantial doubt regarding our ability to continue as a going concern for more than twelve months after the date the condensed consolidated financial statements are available to be issued. See “—Liquidity and Capital Resources.”

Previous wording

General and administrative expenses were $10.7 million for the three months ended March 31, 2024, compared to $12.5 million for the three months ended March 31, 2023. The decrease of $1.9 million was primarily due to the decrease in personnel costs resulting from the workforce reduction plan in connection with the Company’s December 2023 announcement of the discontinuation of our three Phase 3 registrational trials and a comprehensive review of strategic alternatives.

Current wording

General and administrative expenses were $7.2 million for the three months ended June 30, 2024, compared to $12.5 million for the three months ended June 30, 2023. The decrease of $5.3 million was primarily due to the decrease in personnel costs resulting from the workforce reduction plan in connection with the Company’s December 2023 announcement of the discontinuation of its three Phase 3 registrational trials and a comprehensive review of strategic alternatives, as well as a $1.8 million gain on lease remeasurement during the three months ended June 30, 2024.

Previous wording

Total other income (loss), net was generally consistent at $2.0 million for the three months ended March 31, 2024, compared to $2.0 million for the three months ended March 31, 2023.

Current wording

Total other income (loss), net was generally consistent at $1.7 million for the three months ended June 30, 2024, compared to $2.0 million for the three months ended June 30, 2023.

Previous wording

Research and development expenses were $12.2 million for the three months ended March 31, 2024, compared to $30.7 million for the three months ended March 31, 2023. The decrease of $18.5 million was primarily due to the discontinuation of clinical trials and research activities and workforce reduction plan in connection with the Company’s December 2023 announcement of the discontinuation of our three Phase 3 registrational trials and a comprehensive review of strategic alternatives, as well as a $5.6 million gain on lease termination during the three months ended March 31, 2024.

Current wording

Research and development expenses were $12.3 million for the six months ended June 30, 2024, compared to $65.5 million for the six months ended June 30, 2023. The decrease of $53.3 million was primarily due to the discontinuation of clinical trials and research activities and workforce reduction plan in connection with the Company’s December 2023 announcement of the discontinuation of our three Phase 3 registrational trials and a comprehensive review of strategic alternatives, as well as a $5.6 million gain on lease termination and remeasurement during the six months ended June 30, 2024.

Previous wording

Restructuring costs were $9.5 million for the three months ended March 31, 2024, which consist primarily of severance and employee termination costs in connection with our workforce reduction plan.

Current wording

Restructuring costs were $10.0 million for the six months ended June 30, 2024, which consist primarily of severance and employee termination costs in connection with our workforce reduction plan.

Previous wording

At March 31, 2024, our cash, cash equivalents and short-term investments were $140.5 million. We believe that our existing cash, cash equivalents and short-term investments will enable us to fund our operating expenses and capital expenditure requirements through at least twelve months following the issuance of these financial statements. However, in light of the discontinuation of all of our clinical trials and research activities, as well as our workforce reduction plan, we have concluded that there is a substantial doubt regarding our ability to continue as a going concern for at least twelve months following the issuance of these financial statements. We have based this estimate on assumptions that may prove to be wrong, and we could expend our capital resources sooner than we expect.

Current wording

At June 30, 2024, our cash, cash equivalents and short-term investments were $129.6 million. We believe that our existing cash, cash equivalents and short-term investments will enable us to fund our operating expenses and capital expenditure requirements through at least twelve months following the issuance of these financial statements. However, in light of the discontinuation of all of our clinical trials and research activities, as well as our workforce reduction plan, we have concluded that there is a substantial doubt regarding our ability to continue as a going concern for at least twelve months following the issuance of these financial statements. We have based this estimate on assumptions that may prove to be wrong, and we could expend our capital resources sooner than we expect.

Previous wording

Net cash used in operating activities was $44.4 million for the three months ended March 31, 2024, reflecting a net loss of $30.3 million and a decrease in our net operating assets and liabilities of $12.9 million. The change in net operating assets and liabilities was primarily due to a decrease of $15.7 million in accounts payable, accrued expenses and amount due to related party offset by a decrease of $2.7 million in prepaid expenses and other current assets.

Current wording

Net cash used in operating activities was $55.7 million for the six months ended June 30, 2024, reflecting a net loss of $36.4 million and a decrease in our net operating assets and liabilities of $21.9 million, partially offset by non-cash charges of $2.6 million. The change in net operating assets and liabilities was primarily due to a decrease of $25.4 million in accounts payable, accrued expenses, other liabilities and amount due to related party offset by a decrease of $3.3 million in prepaid expenses and other current assets. Non-cash charges primarily consist of stock-based compensation expense of $10.9 million offset by a gain on lease termination and remeasurement of $7.4 million.

Previous wording

Net cash used in operating activities was $32.1 million for the three months ended March 31, 2023, reflecting a net loss of $41.2 million, partially offset by non-cash charges of $9.8 million. Non-cash charges primarily consist of stock compensation expense of $10.0 million. The decrease in our net operating assets and liabilities of $0.8 million was primarily due to a decrease of $0.5 million in accounts payable, accrued expenses and amount due to related party.

Current wording

Net cash used in operating activities was $59.2 million for the six months ended June 30, 2023, reflecting a net loss of $86.5 million, partially offset by non-cash charges of $19.5 million. Non-cash charges primarily consist of stock-based compensation expense of $20.3 million. The change in our net operating assets and liabilities of $7.7 million was primarily due to an increase of $4.9 million in accounts payable, accrued expenses and amount due to related party and an increase of $2.9 million in prepaid expenses and other current assets and prepaid expenses to related party.

Previous wording

The $12.3 million increase in cash used in operating activities for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 was primarily due to the change in net operating assets and liabilities as a result of the December 2023 announcement of the discontinuation of the Company’s three Phase 3 registrational trials.

Current wording

The $3.5 million decrease in cash used in operating activities for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to the change in net operating assets and liabilities as a result of the December 2023 announcement of the discontinuation of the Company’s three Phase 3 registrational trials.

Previous wording

Net cash provided by investing activities was $40.0 million for the three months ended March 31, 2024, which was due to investment maturities.

Current wording

Net cash provided by investing activities was $70.0 million for the six months ended June 30, 2024, which was due to $70.0 million of investment maturities.

Previous wording

Net cash provided by investing activities was $41.7 million for the three months ended March 31, 2023, which was due to the investment maturities of $53.5 million, partially offset by the purchase of investments of $11.8 million.

Current wording

Net cash provided by investing activities was $79.6 million for the six months ended June 30, 2023, , which was primarily due to investment maturities of $93.8 million, partially offset by the purchase of investments of $14.2 million.

Previous wording

Operating lease payments represent our commitments for future minimum lease costs under non-cancelable leases for our corporate headquarters in Waltham, MA. The total payments for our operating lease obligations at March 31, 2024 is $21.5 million, of which $2.4 million is due in the next nine months and the remaining payments are due over the term of the respective leases. For additional details regarding our leases, see Note 5 to our condensed consolidated financial statements.

Current wording

Operating lease payments represent our commitments for future minimum lease costs under non-cancelable leases for our corporate headquarters in Waltham, MA. Total payments for our operating lease obligations that were contractually due at June 30, 2024 was $11.0 million. In July 2024, we entered into a Termination Agreement with BP Bay Colony LLC which terminates with immediate effect, the existing lease. In consideration of the termination, we have agreed to pay a $7.0 million termination fee. For additional details regarding our leases, see Note 5 to our condensed consolidated financial statements.