Spruce Biosciences Files Q2 2024 10-Q

TL;DR

SPRB Q2 10-Q filed. Financials and ops update.

AI Summary

Spruce Biosciences, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results and provided updates on its business operations. Key financial data and operational highlights are detailed within the filing, which covers the second quarter of 2024.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Spruce Biosciences, crucial for understanding the company's trajectory and investment potential.

Risk Assessment

Risk Level: medium — As a biotech company, Spruce Biosciences faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Numbers

• 2024-06-30 — Reporting Period End (End of the second quarter of 2024)
• 2024-08-12 — Filing Date (Date the 10-Q was submitted to the SEC)

Key Players & Entities

• SPRUCE BIOSCIENCES, INC. (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240812 (date) — Filing Date
• Eli Lilly and Company (company) — Mentioned in relation to a license agreement
• Silicon Valley Bank (company) — Mentioned in relation to a term loan

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share SPRB Nasdaq Global Select

Filing Documents

• sprb-20240630.htm (10-Q) — 1854KB
• sprb-ex31_1.htm (EX-31.1) — 16KB
• sprb-ex31_2.htm (EX-31.2) — 15KB
• sprb-ex32_1.htm (EX-32.1) — 8KB
• sprb-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-095461.txt ( ) — 5685KB
• sprb-20240630.xsd (EX-101.SCH) — 861KB
• sprb-20240630_htm.xml (XML) — 593KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 75 Item 3. Defaults Upon Senior Securities 75 Item 4. Mine Safety Disclosures 75 Item 5. Other Information 75 Item 6. Exhibits 76

Signatures

Signatures 77 Table of Contents SUMMARY OF RISKS ASSOCIATED WITH OUR BUSINESS We face risks and uncertainties associated with our business, many of which are beyond our control. Some of the material risks associated with our business include the following: We have a limited operating history, have incurred significant net losses since our inception, and anticipate that we will continue to incur significant net losses for the foreseeable future. We expect these losses to increase as we continue our clinical development of, and seek regulatory approvals for, tildacerfont and any future product candidates. We will need substantial additional financing to develop tildacerfont and any future product candidates and implement our operating plans. If we fail to obtain additional financing, we may be forced to delay, reduce or eliminate our product development programs or commercialization efforts. We currently depend entirely on the success of tildacerfont, which is our only product candidate. If we are unable to advance tildacerfont in clinical development, obtain regulatory approval, and ultimately commercialize tildacerfont, or experience significant delays in doing so, our business will be materially harmed. Our clinical trials may fail to adequately demonstrate the safety and efficacy of tildacerfont, which could prevent or delay regulatory approval and commercialization. We face significant competition from other biotechnology and pharmaceutical companies, and our operating results will suffer if we fail to compete effectively. Any delays in the commencement or completion, or termination or suspension, of our clinical trials could result in increased costs to us, delay or limit our ability to generate revenue, and adversely affect our commercial prospects. Preclinical and clinical drug development involves a lengthy and expensive process with uncertain outcomes, and results of earlier studies and trials may not be predictive of future trial resul

— FINANCI AL INFORMATION

PART I — FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements SPRUCE BIOSCIENCES, INC. CONDENSED BAL ANCE SHEETS (unaudited) (in thousands, except share and per share amounts) June 30, December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 69,683 $ 96,339 Prepaid expenses 2,698 3,876 Other current assets 1,531 1,968 Total current assets 73,912 102,183 Right-of-use assets 1,060 1,181 Other assets 547 582 Total assets $ 75,519 $ 103,946 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 682 $ 3,332 Accrued expenses and other current liabilities 10,683 14,600 Term loan, current portion 1,622 1,622 Deferred revenue, current portion 1,298 4,911 Total current liabilities 14,285 24,465 Lease liabilities, net of current portion 880 1,019 Term loan, net of current portion 923 1,717 Other liabilities 262 236 Total liabilities 16,350 27,437 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.0001 par value; 10,000,000 shares authorized and no shares issued or outstanding as of June 30, 2024 and December 31, 2023 — — Common stock, $ 0.0001 par value; 200,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 41,302,599 and 41,029,832 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 4 4 Additional paid-in capital 277,203 273,737 Accumulated deficit ( 218,038 ) ( 197,232 ) Total stockholders' equity 59,169 76,509 Total liabilities and stockholders' equity $ 75,519 $ 103,946 See accompanying notes to the condensed financial statements. 1 Table of Contents SPRUCE BIOSCIENCES, INC. CONDENSED STATEME NTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Collaboration reve

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View this 10-Q filing on SEC EDGAR