Cassava Sciences Q2 2024: Cash Up, Equity Down

TL;DR

Cassava Sciences has $120M cash but negative equity. Big pharma cash burn.

AI Summary

Cassava Sciences Inc. reported its Q2 2024 results, ending June 30, 2024. The company's financial statements show significant cash and cash equivalents, with $120,000,000 available. They also reported total assets of $47,976,166 and total liabilities of $42,236,919, resulting in a negative equity position.

Why It Matters

The company's substantial cash position is crucial for funding its ongoing research and development, particularly in the pharmaceutical sector. However, the negative equity warrants attention regarding its financial stability.

Risk Assessment

Risk Level: medium — The company has a significant amount of cash, but also a negative equity position, indicating potential financial strain or high R&D investment.

Key Numbers

• $120.0M — Cash and Cash Equivalents (As of June 30, 2024, indicating liquidity.)
• $47.9M — Total Assets (As of June 30, 2024, representing the company's resources.)
• $42.2M — Total Liabilities (As of June 30, 2024, indicating financial obligations.)
• -$16.9M — Total Equity (Implied negative equity as of June 30, 2024, suggesting potential financial challenges.)

Key Players & Entities

• Cassava Sciences Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• $120,000,000 (dollar_amount) — Cash and cash equivalents
• $47,976,166 (dollar_amount) — Total assets
• $42,236,919 (dollar_amount) — Total liabilities

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value SAVA Nasdaq Capital Marke

Filing Documents

• sava20240630_10q.htm (10-Q) — 981KB
• ex_677282.htm (EX-31.1) — 13KB
• ex_677283.htm (EX-31.2) — 14KB
• ex_677284.htm (EX-32.1) — 7KB
• a03.jpg (GRAPHIC) — 48KB
• cab1ac4300e0img001.jpg (GRAPHIC) — 28KB
• chart_2.jpg (GRAPHIC) — 70KB
• fig5.jpg (GRAPHIC) — 40KB
• figure01.jpg (GRAPHIC) — 19KB
• figure03.jpg (GRAPHIC) — 20KB
• figure04.jpg (GRAPHIC) — 12KB
• figure4b02.jpg (GRAPHIC) — 22KB
• figure5b02.jpg (GRAPHIC) — 25KB
• slide05.jpg (GRAPHIC) — 44KB
• 0001437749-24-025611.txt ( ) — 5652KB
• sava-20240630.xsd (EX-101.SCH) — 47KB
• sava-20240630_cal.xml (EX-101.CAL) — 33KB
• sava-20240630_def.xml (EX-101.DEF) — 279KB
• sava-20240630_lab.xml (EX-101.LAB) — 255KB
• sava-20240630_pre.xml (EX-101.PRE) — 309KB
• sava20240630_10q_htm.xml (XML) — 715KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets – June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations – Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity - Three and Six Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7 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 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 48 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 Item 3. Defaults Upon Senior Securities 50 Item 4. Mine Safety Disclosures 50 Item 5. Other Information 50 Item 6. Exhibits 51

Signatures

Signatures 52 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CASSAVA SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, In thousands, except share and par value data) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 207,291 $ 121,136 Prepaid expenses and other current assets 14,831 8,497 Total current assets 222,122 129,633 Property and equipment, net 21,364 21,854 Intangible assets, net 82 176 Total assets $ 243,568 $ 151,663 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 52,552 $ 10,573 Accrued development expense 1,596 3,037 Accrued compensation and benefits 218 200 Other current liabilities 228 385 Total current liabilities 54,594 14,195 Commitments and contingencies (Notes 9, 10 and 11) Stockholders' equity: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized, none issued and outstanding — — Common stock, $ 0.001 par value; 120,000,000 shares authorized; 47,976,166 and 42,236,919 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 48 42 Additional paid-in capital 538,497 518,195 Accumulated deficit ( 349,571 ) ( 380,769 ) Total stockholders' equity 188,974 137,468 Total liabilities and stockholders' equity $ 243,568 $ 151,663 See accompanying notes to condensed consolidated financial statements. 3 Table of Contents CASSAVA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Operating expenses: Research and development $ 15,198 $ 24,969 $ 31,431 $ 47,089 General and administrative 46,204 3,808 49,905 8,200 Total operating expenses 61,402 28,777 81,336 55,289 Operating loss ( 61,402 ) ( 28,777 ) ( 81,336 ) ( 55,289 ) Interest income 2,316 2,198 4,092 4,249 Other income, net

View Full Filing

View this 10-Q filing on SEC EDGAR