Fate Therapeutics Files 10-Q for Q2 2024

TL;DR

Fate Therapeutics filed its Q2 10-Q. Financials and operations detailed.

AI Summary

Fate Therapeutics Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial results and operational highlights. Key financial data and disclosures relevant to investors are included in this filing.

Why It Matters

This filing provides investors with the latest financial health and operational status of Fate Therapeutics, crucial for understanding its current performance and future prospects.

Risk Assessment

Risk Level: medium — As a biotechnology company, Fate Therapeutics faces inherent risks related to drug development, clinical trials, and regulatory approvals.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 20240813 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Fate Therapeutics Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240813 (date) — Filing date
• Johnson & Johnson Innovation (JJDC) Inc. (company) — Mentioned in relation to a Stock Purchase Agreement

FAQ

Key Financial Figures

• $0.001 — he registrant's common stock, par value $0.001 per share, were issued and outstanding.

Filing Documents

• fate-20240630.htm (10-Q) — 2232KB
• fate-ex31_1.htm (EX-31.1) — 12KB
• fate-ex32_1.htm (EX-32.1) — 7KB
• 0000950170-24-096187.txt ( ) — 9891KB
• fate-20240630.xsd (EX-101.SCH) — 1246KB
• fate-20240630_htm.xml (XML) — 2187KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) 5 Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 5 Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2024 and 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 76 Item 3. Defaults Upon Senior Securities 76 Item 4. Mine Safety Disclosures 76 Item 5. Other Information 76 Item 6. Exhibits 78

SIGNATURES

SIGNATURES 80 2 RISK FACTOR SUMMARY Below is a summary of the principal factors that make an investment in our common stock speculative or risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below under the heading "Risk Factors" and should be carefully considered, together with other information in this Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC) before making investment decisions regarding our common stock. Our product candidates and programs represent novel therapeutic approaches to treating cancer and autoimmune diseases, and our product candidates may cause undesirable side effects or have other properties that could delay or halt their preclinical or clinical development, prevent their regulatory approval, limit their commercial potential or result in significant negative consequences. If we fail to complete the preclinical or clinical development of, or to obtain regulatory approval for, our product candidates on a timely basis or at all, our business would be significantly harmed. Our proprietary induced pluripotent stem cell (iPSC) product platform enables the production of next-generation product candidates, and we have multiple iPSC-derived natural killer (NK) cell and T-cell product candidates currently undergoing clinical development. We may elect to deprioritize or discontinue the clinical development of one or more of our product candidates for any number of reasons, including due to changes in our business strategy, our prioritization of our product candidates, and the competitive therapeutic landscape for which our product candidates are being developed. In addition, one or more of our product candidates undergoing clinical development may have therapeutic potential in more than one disease area, and we may elect to discontinue clinical development

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Condensed Consolidated Financ ial Statements (Unaudited)

Item 1. Condensed Consolidated Financ ial Statements (Unaudited) Fate Therapeutics, Inc. Condensed Consolida ted Balance Sheets (Unaudited) (in thousands, except share and per share data) June 30, December 31, 2024 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 36,917 $ 41,870 Accounts receivable 1,048 1,826 Short-term investments 267,962 273,305 Prepaid expenses and other current assets 13,461 14,539 Total current assets 319,388 331,540 Long-term investments 47,162 980 Property and equipment, net 87,534 96,836 Operating lease right-of-use assets 59,547 61,675 Restricted cash 15,177 15,177 Other assets 9 9 Total assets $ 528,817 $ 506,217 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 5,495 $ 4,719 Accrued expenses 22,654 27,514 Deferred revenue — 685 Operating lease liabilities, current portion 6,644 6,176 Total current liabilities 34,793 39,094 CIRM award liability 1,940 — Operating lease liabilities, net of current portion 93,918 97,360 Stock price appreciation milestones 1,184 1,346 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value; authorized shares— 5,000,000 at June 30, 2024 and December 31, 2023; Class A Convertible Preferred shares issued and outstanding— 2,761,108 at June 30, 2024 and December 31, 2023 3 3 Common stock, $ 0.001 par value; authorized shares— 250,000,000 at June 30, 2024 and December 31, 2023; issued and outstanding— 113,849,557 at June 30, 2024 and 98,627,076 at December 31, 2023 114 99 Additional paid-in capital 1,695,450 1,580,032 Accumulated other comprehensive income (loss) ( 422 ) 15 Accumulated deficit ( 1,298,163 ) ( 1,211,732 ) Total stockholders' equity 396,982 368,417 Total liabilities and stockholders' equity $ 528,817 $ 506,217 See acc

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View this 10-Q filing on SEC EDGAR