Absci Corp
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 12, 2025
ABSI$10.17+8.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001628280-25-025077
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001628280-25-039938
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 112 previous paragraphs and 115 current paragraphs.
71 unchanged; 36 reworded; 5 added; 4 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
We are a clinical-stage biopharmaceutical company advancing potential breakthrough therapeutics designed with generative AI. Our Integrated Drug Creation™ platform comprises, in part, cutting edge generative AI models aimed at designing better antibody therapeutics, including against hard-to-drug targets.
Current report
To date, we have had over 25 partnered programs and anticipate entering into additional partnerships.
Current report
Selling, general, and administrative expenses decreased by $0.8 million, or 9%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily attributable to a decrease in stock-based compensation of $0.6 million and a decrease in other administrative costs of $0.2 million.
Current report
On July 28, 2025, we sold of an aggregate of 16,670,000 shares of our common stock, pursuant to an underwriting agreement with Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Jefferies LLC and TD Securities (US) LLC at a public offering price of $3.00 per share, before underwriting discounts and commissions. The total estimated net proceeds to us from the offering are expected to be approximately $46.7 million after deducting underwriting discounts and commissions and estimated offering expenses payable by us.
Current report
In addition, we are also a “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act and have elected to take advantage of certain of the scaled back disclosure requirements available to smaller reporting companies such as avoiding the extensive narrative disclosure required of other reporting companies, particularly in the description of executive compensation. We will remain a smaller reporting company until (a) the last day of the fiscal year in which we have total annual gross revenue of less than $100 million and the market value of our common stock held by non-affiliates exceeds $700.0 million as of the prior June 30th, or (b) the last day of the fiscal year in which we have total annual gross revenue exceeding $100 million and the market value of our common stock held by non-affiliates exceeds $250.0 million. Our status as a smaller reporting company will not be impacted by the loss of emerging growth company status at the end of 2025, so we may continue to take advantage of these scaled disclosure requirements so long as we qualify. In addition, the loss of emerging growth status will not impact our “non-accelerated filer” status, which also provides an exemption from the auditor attestation requirement with respect to internal control over financial reporting.
Removed paragraphs (4)
Previous report
We are advancing antibody therapeutics using generative AI design to create better biologics for patients, faster. We leverage our Integrated Drug Creation platform to combine generative AI models with a synthetic biology data engine, enabling the design of antibody therapeutics that address certain therapeutic targets. Our approach leverages a continuous feedback loop between proprietary AI algorithms and wet lab validation. Each cycle refines our data and builds upon our models, further supporting innovation.
Previous report
IBD affects millions of individuals worldwide, with increasing prevalence and incidence in both developed and developing countries. In the United States, it is estimated that approximately 2.4 million individuals currently have IBD, with approximately 70,000 patients newly diagnosed every year. Based on research from the Crohn's and Colitis Foundation of America, the market for IBD therapeutics is expected to experience steady growth, driven by rising disease prevalence, increasing diagnosis rates, and evolving treatment paradigms.
Previous report
We believe ABS-101 may present a significant market opportunity for the treatment of IBD. Current IBD treatments face limitations such as lack of response in some patients, diminishing effectiveness over time, and a therapeutic efficacy ceiling. ABS-101 has the potential to address these limitations by providing a novel mechanism of action through blocking TL1A-driven activation of immune responses and potentially fibrosis. Additionally, ABS-101 is being developed for potential longer dosing intervals and subcutaneous injections, which we believe may improve patient compliance and quality of life. Beyond IBD, ABS-101's therapeutic relevance may extend to a range of immune-related indications, further broadening its market potential.
Previous report
Current FDA-approved treatments for AGA are limited due to variable efficacy, lack of patient compliance, potential sexual and neurological side effects. Additionally, incremental limitations exist for women of reproductive age. We believe that an antibody therapeutic that is safe and efficacious with durable effects and convenient dosing has the potential to unlock a significant commercial market for hair-regrowth therapy.
Reworded paragraphs (36)
Previous wording
Alongside collaborations with pharmaceutical, biotechnology, technology, and academic leaders, we are advancing our own pipeline of AI designed antibody therapeutics. Our business model is focused on monetizing our Integrated Drug Creation platform by generating internally developed programs that are later partnered or out-licensed following certain value inflection points (anywhere from preclinical through clinical development) or by partnering with third parties who wish to leverage our Integrated Drug Creation platform for early discovery efforts in a variety of deal structures.
Current wording
Our business model is focused on monetizing our Integrated Drug Creation platform by generating internally developed programs that are later partnered or out-licensed following certain value inflection points (anywhere from preclinical through clinical development) or by partnering with third parties who wish to leverage our Integrated Drug Creation platform for early discovery efforts in a variety of deal structures. Our Integrated Drug Creation platform enables our core competencies in three broad areas: target selection and discovery; AI-guided antibody drug creation, such as de novo antibody design; and AI-guided lead optimization. Recently, in collaboration with the California Institute of Technology, we demonstrated the successful de novo design of an antibody that targets a previously difficult-to-drug epitope in the HIV “caldera” region.
Previous wording
Internally developed programs: We believe that by developing our own pipeline, we will create optionality for enhanced monetization and validation of our Integrated Drug Creation platform. With the ability to selectively choose both novel and fast-follower targets, in addition to develop potentially best-in-class attributes, we aim to take our internally developed programs to certain value inflection points before considering partnering or out-licensing opportunities.
Current wording
Internally developed programs: We believe that by developing our own pipeline, we will create optionality for enhanced monetization and validation of our Integrated Drug Creation platform. With the ability to selectively choose both novel and fast-follower targets, in addition to develop potentially best-in-class attributes, we aim to take our internally developed programs to certain value inflection points before considering partnering or out-licensing opportunities. We believe our Integrated Drug Creation platform, in combination with our clinical development strategy, is driving numerous potential near-term value inflection points that may enable proof of concept of two internally developed programs, ABS-101 and ABS-201, by the second half of 2026. Specifically, for ABS-101, which is in development as a potential treatment for Inflammatory Bowel Disease, we initiated the Phase 1 clinical trial in May 2025, and subject to successful completion of the Phase 1 clinical trial, we anticipate starting the Phase 1b/2a clinical trial by the first half of 2026; while for ABS-201, which is in development for the potential treatment of androgenetic alopecia, we anticipate filing an Investigational New Drug application or comparable foreign regulatory filing in the first half of 2026 and, subject to clearance of IND or comparable foreign regulatory filing and initiation of phase 1 clinical development, an interim Phase 1 read-out in the second half of 2026.
Previous wording
Total revenue was $1.2 million for the three months ended March 31, 2025, compared to $0.9 million for the three months ended March 31, 2024, an increase of $0.3 million due to the number of ongoing partnered programs and respective timing of project-based milestones achieved. We incurred a net loss of $26.3 million for the three months ended March 31, 2025, compared to a net loss of $22.0 million for the three months ended March 31, 2024. Research and development expenses increased by $4.1 million, or 34%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Current wording
Revenue was $0.6 million and $1.8 million for the three and six months ended June 30, 2025, respectively, compared to $1.3 million and $2.2 million for the three and six months ended June 30, 2024 due to the number of ongoing partnered programs and respective timing of project-based milestones achieved. We incurred a net loss of $30.6 million and $56.9 million for the three and six months ended June 30, 2025, compared to a net loss of$24.8 million and $46.7 million for the three and six months ended June 30, 2024. Research and development expenses increased by $9.3 million, or 34%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Previous wording
As of March 31, 2025, we had an accumulated deficit of $535.9 million and cash and cash equivalents and short-term investments totaling $134.0 million.
Current wording
As of June 30, 2025, we had an accumulated deficit of $566.5 million and cash and cash equivalents and short-term investments totaling $117.5 million.
Previous wording
•Build out our internally developed programs: We are in the process of selectively creating our own programs and intend to advance them to certain value inflection points anywhere from preclinical validation through clinical development prior to out-licensing for further clinical advancement by a partner or other third party. We may also utilize significant resources in the design and execution of clinical trials to support our internally developed programs.
Current wording
•Build out our internally developed programs: We will continue to selectively develop our own programs and intend to advance them to certain value inflection points anywhere from preclinical validation through clinical development, prior to out-licensing for further clinical advancement by a partner or other third party, or potentially through commercialization. We may also utilize significant resources in the design and execution of clinical trials to support our internally developed programs.
Previous wording
•Establish new partnerships: Our potential to grow revenue and long-term earnings will require us to successfully identify, establish and maintain programs with new and existing partners.
Current wording
•Establish and maintain partnerships: Our potential to grow revenue and long-term earnings will require us to successfully identify, establish and maintain programs with new and existing partners.
Previous wording
•Successfully complete our drug creation activities with partners and enter into licensing agreements: Our business model relies upon entering into licensing agreements with our partners to advance the product candidates we generate through preclinical validation through clinical development to commercialization. Both our ability to successfully complete drug creation activities to meet the needs of a partner, and the partner’s prioritization of the relevant program, impact the likelihood and timing of any election by a partner to enter into a follow-on licensing agreement. There is no assurance that a partner will elect to license our intellectual property for the development of any product candidates.
Current wording
•Successfully complete our drug creation activities with partners and enter into licensing agreements: Our business model relies upon entering into licensing agreements with our partners to advance the product candidates we generate through preclinical validation and clinical development to commercialization. Both our ability to successfully complete drug creation activities to meet the needs of a partner, and the partner’s prioritization of the relevant program, impact the likelihood and timing of any election by a partner to enter into a follow-on licensing agreement. There is no assurance that a partner will elect to license our intellectual property for the development of any product candidates.
Previous wording
•Developing and commercializing product candidates generated with our Integrated Drug Creation platform: Our business model is dependent on the eventual progression of product candidates discovered or initially developed utilizing our Integrated Drug Creation platform into clinical trials by us or our partners and through commercialization by our partners or other third parties. Given the nature of our relationships with our partners, we often do not fully control the progression, clinical development, regulatory strategy, public disclosure or eventual commercialization, if approved, of our partnered programs. As a result, our future success and our potential eligibility to receive milestone payments and royalties are significantly dependent on our partners’ efforts over which we have no control. The timing and scope of any approval that may be required by the U.S. Food and Drug Administration (FDA), or any other regulatory body, for drugs that are developed based on molecules discovered and/or manufactured using our Integrated Drug Creation platform can significantly impact our results of operations and future performance.
Current wording
•Developing and commercializing product candidates generated with our Integrated Drug Creation platform: Our business model is dependent on the eventual progression of product candidates discovered or initially developed utilizing our Integrated Drug Creation platform into clinical trials by us or our partners and through commercialization by us, our partners, or other third parties. Given the nature of our relationships with our partners, we often do not fully control the progression, clinical development, regulatory strategy, public disclosure or eventual commercialization, if approved, of our partnered programs. As a result, our future success and our potential eligibility to receive milestone payments and royalties are significantly dependent on our partners’ efforts over which we have no control. The timing and scope of any approval that may be required by the U.S. Food and Drug Administration (FDA), or any other regulatory body, for drugs that are developed based on molecules discovered and/or manufactured using our Integrated Drug Creation platform can significantly impact our results of operations and future performance.
Previous wording
Our first development candidate, ABS-101 is in development as a potential treatment for Inflammatory Bowel Disease (IBD). IBD is a chronic condition characterized by inflammation within the gastrointestinal tract and encompasses two main disorders: ulcerative colitis (UC) and Crohn’s Disease (CD). UC primarily affects the colon and the rectum, and symptoms include bloody diarrhea, abdominal pain, bowel urgency, and frequent bowel movements. CD can affect any part of the gastrointestinal tract, from the mouth to the anus, and symptoms include abdominal pain, diarrhea, weight loss, fatigue, and complications such as strictures or fistulas. Both conditions can significantly impact patients’ quality of life in terms of physical health, emotional well-being, and the unpredictability of symptom onset.
Current wording
Our first development candidate, ABS-101 is in development as a potential treatment for Inflammatory Bowel Disease (IBD).
Previous wording
Our second development candidate, ABS-201 is in development as a potential treatment for androgenic alopecia (AGA). AGA is an indication with a significant clinical unmet need and a potential patient population of approximately 80 million individuals in the United States alone. AGA is a genetically predetermined disorder that can affect over 50 percent of men and over 40% of women by age 50. It is characterized by progressive loss of terminal hair of the scalp any time after puberty, and follows a characteristic distribution in both males and females. Hair loss is most prominent in the vertex and frontotemporal regions in males. In women, the frontal hairline is typically spared with diffuse hair loss at the crown and top of the head, with loss often marked by a wider center part.
Current wording
Our second development candidate, ABS-201 is in development as a potential treatment for androgenic alopecia (AGA).
Previous wording
In January 2025, we entered into a strategic collaboration with Advanced Micro Devices, Inc. (AMD) has a goal to optimize the performance of AMD Instinct TM accelerators and ROCm TMsoftware to support our AI drug creation, including our de novo antibody design models. Additionally, AMD invested $20.0 million through the purchase of 5,714,285 shares of our common stock a private investment in public equity (PIPE) at a premium over the market price.
Current wording
In January 2025, we entered into a strategic collaboration with Advanced Micro Devices, Inc. (AMD) with a goal to optimize the performance of AMD Instinct TM accelerators and ROCm TMsoftware to support our AI drug creation, including our de novo antibody design models. Additionally, AMD invested $20.0 million through the purchase of 5,714,285 shares of our common stock a private investment in public equity (PIPE) at a premium over the market price.
Previous wording
Research and development expenses include the personnel-related costs (comprised of salaries, benefits and share-based compensation), contract research services, contract manufacturing, consulting fees, laboratory supplies and facilities, and certain technology costs. These expenses are exclusive of depreciation and amortization. Research and development activities consist of continued development of our Integrated Drug Creation platform, internally developed programs, and partnered programs. We derive improvements to our Integrated Drug Creation platform from each type of activity. Research and development efforts apply to our Integrated Drug Creation platform broadly, as well as and across programs.
Current wording
Research and development expenses include personnel-related costs (comprised of salaries, benefits and share-based compensation), contract research services, contract manufacturing, consulting fees, laboratory supplies and facilities, and certain technology costs. These expenses are exclusive of depreciation and amortization. Research and development activities consist of continued development of our Integrated Drug Creation platform, internally developed programs, and partnered programs. We derive improvements to our Integrated Drug Creation platform from each type of activity. Research and development efforts apply to our Integrated Drug Creation platform broadly, as well as across programs.
Previous wording
Selling, general, and administrative expenses include personnel-related costs (comprised of salaries, benefits and share-based compensation) for executive, business development, legal, finance, human resources, information technology and other administrative functions. Business development expenses include costs associated with attending conferences and other promotion efforts of our Integrated Drug Creation platform. General and administrative expenses include certain professional service expenses such as, external legal, accounting, and other consultants, as well as certain technology costs and allocated facility costs. These expenses are exclusive of depreciation and amortization.
Current wording
Selling, general, and administrative expenses include personnel-related costs (comprised of salaries, benefits and share-based compensation) for executive, business development, legal, finance, human resources, information technology and other administrative functions. Business development expenses include costs associated with attending conferences and other promotion efforts for our Integrated Drug Creation platform. General and administrative expenses include certain professional service expenses, such as external legal, accounting, and other consultants, as well as certain technology costs and allocated facility costs. These expenses are exclusive of depreciation and amortization.
Previous wording
As we grow our operations, we expect personnel-related costs to increase in absolute dollars and we expect to actively manage other general and administrative expenses.
Current wording
As we grow our operations, we expect personnel-related costs to increase in absolute dollars and we expect to continue to actively manage other general and administrative expenses.
Previous wording
Comparison of the Three Months Ended March 31, 2025 and 2024
Current wording
Comparison of the Three and Six Months Ended June 30, 2025 and 2024
Previous wording
Partner program revenue increased by $0.3 million, or 31%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, driven by a combination of the timing of achieving project-based milestones and the mix of ongoing program activity under our drug creation agreements. For the three months ended March 31, 2025 and 2024, two partners represented approximately 95% and 99% of partner program revenue, respectively.
Current wording
Partner program revenue decreased by $0.7 million, or 53%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and decreased by $0.4 million, or 18%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, driven by a combination of the timing of achieving project-based milestones and the mix of ongoing program activity under our drug creation agreements. For the three and six months ended June 30, 2025 two partners represented approximately 99% and three partners represented 100% of total partner program revenue, respectively. For the three and six months ended June 30, 2024, two partners represented approximately 100% of partner program revenue.
Previous wording
The following table summarizes our operating expenses for the three months ended March 31, 2025 and 2024 (In thousands, except for percentages):
Current wording
The following tables summarize our operating expenses for the three and six months ended June 30, 2025 and 2024 (In thousands, except for percentages):
Previous wording
Research and development expenses increased by $4.1 million, or 34%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to the advancement of our drug creation programs representing $3.1 million of this increase, including direct costs associated with external preclinical development, and an increase of $1.0 million of personnel costs and stock-based compensation.
Current wording
Research and development expenses increased by $5.2 million, or 34%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily attributable to the advancement of our drug creation programs representing $4.6 million of this increase, including direct costs associated with external preclinical and clinical development, an increase of $1.0 million of personnel costs and stock-based compensation, offset by a decrease of $0.4 million in other lab costs.
Previous wording
Selling, general, and administrative expenses increased by $0.7 million, or 8%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was primarily attributable to an increase in stock-based compensation of $1.0 million, an increase in other administrative costs of $0.4 million, offset by a decrease in personnel costs of $0.7 million.
Current wording
Selling, general, and administrative expenses decreased by $0.1 million, or 0%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily attributable to a decrease in personnel costs of $0.7 million, offset by an increase in stock-based compensation of $0.3 million, and an increase in other administrative costs of $0.3 million.
Previous wording
Depreciation and amortization expense decreased by $0.3 million, or 10%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to disposals of lab equipment.
Current wording
Depreciation and amortization expense decreased by $0.4 million, or 11% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and decreased by $0.7 million, or 11%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to disposals of lab equipment.
Previous wording
Interest expense was $0.1 million for the three months ended March 31, 2025, compared to $0.2 million for the three months ended March 31, 2024, representing a decrease of $0.1 million, or 55%, primarily attributable to decreased finance lease and long-term debt obligations.
Current wording
Interest expense was $0.1 million for the three months ended June 30, 2025 compared to $0.2 million for the three months ended June 30, 2024, representing a decrease of $0.1 million, or 63%. Interest expense was $0.1 million for the six months ended June 30, 2025, compared to $0.3 million for the six months ended June 30, 2024, representing a decrease of $0.2 million, or 59%. These decreases were primarily attributable to decreased finance lease and long-term debt obligations.
Previous wording
Other income, net, was $1.5 million for the three months ended March 31, 2025, compared to $1.7 million for the three months ended March 31, 2024, representing a decrease of $0.3 million, or 15%, primarily attributable to realized and unrealized gains and losses on foreign currency transactions. Investment income from cash, cash equivalents and short-term investments remained relatively consistent between periods.
Current wording
Other income, net, was $1.0 million for the three months ended June 30, 2025 compared to $2.1 million for the three months ended June 30, 2024, representing a decrease of $1.1 million, or 52%, primarily attributable to realized and unrealized gains and losses on foreign currency transactions. Investment income from cash, cash equivalents, and short-term investments remained relatively consistent between periods.
Previous wording
As of March 31, 2025, we had $134.0 million of cash, cash equivalents and short-term investments.
Current wording
As of June 30, 2025, we had $117.5 million of cash, cash equivalents and short-term investments. Subsequent to June 30, 2025, the Company issued and sold 21,778,560 shares of common stock for net proceeds of $60.6 million.
Previous wording
We have incurred net operating losses since inception. As of March 31, 2025, our accumulated deficit was $535.9 million. To date, we have funded operations through issuances and sales of equity securities and debt, in addition to revenue generated from our drug creation agreements. We believe that our cash, cash equivalents and short-term investments will be sufficient to meet our operating expenses, working capital and capital expenditure needs over at least the next 12 months following the date of this filing.
Current wording
We have incurred net operating losses since inception. As of June 30, 2025, our accumulated deficit was $566.5 million. To date, we have funded operations through issuances and sales of equity securities and debt, in addition to revenue generated from our drug creation agreements. We believe that our cash, cash equivalents and short-term investments will be sufficient to meet our operating expenses, working capital and capital expenditure needs over at least the next 12 months following the date of this filing.
Previous wording
Our future capital requirements will depend on many factors, including, but not limited to our ability to raise additional capital through equity or debt financing, the development of our internally developed programs including the progress and strategy of any preclinical and clinical activities, our ability to successfully secure additional partnerships under contract with new partners and increase the number of programs covered under contracts with existing partners, the advancement of technology development activities with existing and future partners, the successful preclinical and clinical development by us and our partners of product candidates generated using our Integrated Drug Creation platform, and the successful commercialization by us and our partners of any such product candidates that are approved. If we are unable to execute on our business plan and adequately fund operations, or if our business plan requires a level of spending in excess of cash resources, we may be required to change our strategies related to preclinical and clinical development and our approach to negotiating partnerships. Alternatively, we may need to seek additional equity or debt financing, which may not be available on terms acceptable to us or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants restricting our ability to take specific actions, such as incurring additional debt, selling or licensing our programs, making product acquisitions, making capital expenditures, or declaring dividends. If we are unable to generate sufficient revenue or raise additional capital when desired, our business, financial condition, results of operations and prospects would be adversely affected.
Current wording
Our future capital requirements will depend on many factors, including, but not limited to our ability to raise additional capital through equity or debt financing, the development of our internally developed programs including the progress and strategy of our preclinical and clinical activities, our ability to successfully enter into additional partnerships with new and existing partners, the advancement of technology development activities with existing and future partners, the successful preclinical and clinical development by us and our partners of product candidates generated using our Integrated Drug Creation platform, and the successful commercialization by us and our partners of any such product candidates that are approved. If we are unable to execute on our business plan and adequately fund operations, or if our business plan requires a level of spending in excess of cash resources, we may be required to change our strategies related to preclinical and clinical development and our approach to negotiating partnerships. Alternatively, we may need to seek additional equity or debt financing, which may not be available on terms acceptable to us or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants restricting our ability to take specific actions, such as incurring additional debt, selling or licensing our programs, making product acquisitions, making capital expenditures, or declaring dividends. If we are unable to generate sufficient revenue or raise additional capital when desired, our business, financial condition, results of operations and prospects would be adversely affected.
Previous wording
In 2022, we received a total of $12.0 million of proceeds from equipment financing arrangements. Terms of the agreements require monthly payments over 42-48 month periods with imputed interest rates ranging from 8%-10%. As of March 31, 2025, the combined outstanding balance on these agreements is $3.2 million.
Current wording
In 2022, we received a total of $12.0 million of proceeds from equipment financing arrangements. Terms of the agreements require monthly payments over 42-48 month periods with imputed interest rates ranging from 8%-10%. As of June 30, 2025, the combined outstanding balance on these agreements is $2.1 million.
Previous wording
On June 16, 2023, we entered into a Sales Agreement with Cowen and Company, LLC, as Sales Agent, with respect to an “at the market offering” program under which we may offer and sell, from time to time at our sole discretion, shares of our common stock, par value $0.0001 per share, having an aggregate offering price of up to $100.0 million through the Sales Agent. We will pay the Sales Agent a commission up to 3.0% of the gross sales proceeds of any shares sold under the Sales Agreement. As of March 31, 2025, we have issued 5,647,188 shares and received $23.3 million in net proceeds from the sale of securities pursuant to the Sales Agreement.
Current wording
On June 16, 2023, we entered into a Sales Agreement with Cowen and Company, LLC, as Sales Agent, with respect to an “at the market offering” program under which we may offer and sell, from time to time, shares of our common stock, par value $0.0001 per share, having an aggregate offering price of up to $100.0 million through the Sales Agent. We will pay the Sales Agent a commission up to 3.0% of the gross sales proceeds of any shares sold under the Sales Agreement. As of June 30, 2025, we have issued 5,269,192 shares and received $21.7 million in net proceeds from the sale of securities pursuant to the Sales Agreement. Subsequent to June 30, 2025, the Company issued and sold 5,108,560 shares of common stock for net proceeds of$14.0 million pursuant to the Sales Agreement.
Previous wording
On March 1, 2024, we closed the sale of an aggregate of 19,205,000 shares of our common stock, pursuant to an underwriting agreement with Morgan Stanley & Co. LLC and Cowen and Company, LLC at a public offering price of $4.50 per share, before underwriting discounts and commissions. We received total net proceeds from the offering of $80.8 million after deducting underwriting discounts and commissions and offering expenses payable by us.
Current wording
On March 1, 2024, we sold an aggregate of 19,205,000 shares of our common stock, pursuant to an underwriting agreement with Morgan Stanley & Co. LLC and Cowen and Company, LLC at a public offering price of $4.50 per share, before underwriting discounts and commissions. We received total net proceeds from the offering of $80.8 million after deducting underwriting discounts and commissions and offering expenses payable by us.
Previous wording
In the three months ended March 31, 2025, net cash used in operating activities was $21.8 million and consisted primarily of a net loss of $26.3 million adjusted for non-cash items, including depreciation and amortization expense of $3.1 million, stock-based compensation expense of $4.9 million, and a net increase in operating assets and liabilities in the amount of $2.8 million. Net cash used in operations increased by $4.0 million year-over-year primarily due to increased research and development costs, including ABS-101 external preclinical development costs.
Current wording
In the six months ended June 30, 2025, net cash used in operating activities was $38.7 million and consisted primarily of a net loss of $56.9 million adjusted for non-cash items, including depreciation and amortization expense of $6.1 million, stock-based compensation expense of $9.7 million, and a net decrease in operating assets and liabilities in the amount of $4.0 million.
Previous wording
In the three months ended March 31, 2024, net cash used in operating activities was $17.9 million and consisted primarily of a net loss of $22.0 million adjusted for non-cash items, including depreciation and amortization expense of $3.4 million, stock-based compensation expense of $3.6 million, and a net increase in operating assets and liabilities in the amount of $2.2 million.
Current wording
In the six months ended June 30, 2024, net cash used in operating activities was $34.7 million and consisted primarily of a net loss of $46.7 million adjusted for non-cash items, including depreciation and amortization expense of $6.8 million, stock-based compensation expense of $8.9 million, and a net increase in operating assets and liabilities in the amount of $1.8 million.
Previous wording
In the three months ended March 31, 2025, net cash used in investing activities was $15.0 million primarily from purchases of short-term investments of $40.1 million, partially offset by cash provided by maturities of short-term investments of $25.0 million.
Current wording
In the six months ended June 30, 2025, net cash used in investing activities was $6.0 million primarily from purchases of short-term investments of $57.9 million, partially offset by cash provided by maturities of short-term investments of $51.0 million.
Previous wording
In the three months ended March 31, 2024, net cash used in investing activities was $76.7 million primarily from purchases of short-term investments of $97.3 million, partially offset by maturities of short-term investments of $20.5 million.
Current wording
In the six months ended June 30, 2024, net cash used in investing activities was $75.4 million primarily from purchases of short-term investments of $131.2 million, partially offset by maturities of short-term investments of $56.0 million.
Previous wording
In the three months ended March 31, 2025, net cash provided by financing activities was $42.8 million. The net cash provided resulted primarily from proceeds of $41.7 million from the issuance of common stock pursuant to the PIPE with AMD and pursuant to the ATM, and proceeds of $1.9 million from the issuance of common stock from stock option exercises and our 2021 ESPP, partially offset by principal payments of $0.8 million made for financed equipment.
Current wording
In the six months ended June 30, 2025, net cash provided by financing activities was $41.8 million. The net cash provided resulted primarily from proceeds of $41.7 million from the issuance of common stock pursuant to the PIPE with AMD and pursuant to the ATM, and proceeds of $1.9 million from the issuance of common stock from stock option exercises and our 2021 ESPP, partially offset by principal payments of $1.9 million made for financed equipment.
Previous wording
In the three months ended March 31, 2024, net cash provided by financing activities was $81.2 million primarily from proceeds of $80.8 million from the issuance of common stock from a public offering and proceeds of $1.6 million from the issuance of common stock from option exercises and our 2021 ESPP, partially offset by principal payments of $1.3 million made for financed equipment.
Current wording
In the six months ended June 30, 2024, net cash provided by financing activities was $81.1 million primarily from proceeds of $80.8 million from the issuance of common stock from a public offering and proceeds of $2.4 million from the issuance of common stock from option exercises and our 2021 ESPP, partially offset by principal payments of $2.2 million made for financed equipment.
Previous wording
There were no material changes in our critical accounting policies and estimates during the three months ended March 31, 2025.
Current wording
There were no material changes in our critical accounting policies and estimates during the six months ended June 30, 2025.
Previous wording
Subject to certain conditions, as an emerging growth company, we may rely on certain other exemptions and reduced reporting requirements, including without limitation (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the consolidated financial statements, known as the auditor discussion and analysis. We will remain an emerging growth company until the earlier of (a) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more; (b) December 31, 2026, the last day of the fiscal year following the fifth anniversary of the date of the completion of our IPO; (c) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (d) the date we qualify as a “large accelerated filer,” which requires the market value of our common stock held by non-affiliates to exceed $700.0 million as of the prior June 30th.
Current wording
Subject to certain conditions, as an emerging growth company, we may rely on certain other exemptions and reduced reporting requirements, including without limitation (i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and (ii) complying with any requirement by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the consolidated financial statements, known as the auditor discussion and analysis.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Research and development expenses increased by $9.3 million, or 34%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily attributable to the advancement of our drug creation programs representing $7.7 million of this increase, including direct costs associated with external preclinical and clinical development, and an increase of $2.0 million of personnel costs and stock-based compensation, offset by a decrease of $0.3 million in other lab costs.
Current report — wording carried from elsewhere
Other income, net, was $2.5 million for the six months ended June 30, 2025, compared to $3.8 million for the six months ended June 30, 2024, representing a decrease of $1.4 million, or 36%, primarily attributable to realized and unrealized gains and losses on foreign currency transactions. Investment income from cash, cash equivalents and short-term investments remained relatively consistent between periods.
Current report — wording carried from elsewhere
Net cash used in operations increased by $4.0 million year-over-year primarily due to increased research and development costs, including external preclinical and clinical development costs related to our internally developed programs.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The following table summarizes our results of operations for the three months ended March 31, 2025 and 2024 (In thousands, except for percentages):