Zentalis Pharmaceuticals, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Zentalis Pharmaceuticals, Inc. filed its Q1 2024 10-Q report, detailing its financial status and business operations.</b>

AI Summary

Zentalis Pharmaceuticals, Inc. (ZNTL) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Zentalis Pharmaceuticals, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is 1359 Broadway, Suite 801, New York, NY 10018. Zentalis Pharmaceuticals was formerly known as Zentalis Pharmaceuticals, LLC and Zeno Pharma, LLC. The Standard Industrial Classification code for the company is Pharmaceutical Preparations [2834].

Why It Matters

For investors and stakeholders tracking Zentalis Pharmaceuticals, Inc., this filing contains several important signals. This 10-Q filing provides investors with an updated view of Zentalis' financial health and operational progress in the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's performance and future prospects in the pharmaceutical sector.

Risk Assessment

Risk Level: low — Zentalis Pharmaceuticals, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain significant new information that would alter the company's risk profile.

Analyst Insight

Review the detailed financial statements and management discussion in the 10-Q to understand Zentalis' current financial position and operational performance.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-07 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (First quarter period)
• 2023-03-31 — Prior Year Q1 End Date (Comparison period)

Key Players & Entities

• Zentalis Pharmaceuticals, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-07 (date) — Filed as of date
• 1359 BROADWAY, SUITE 801 (address) — Business address
• New York (location) — Business address city
• NY (location) — Business address state
• 10018 (postal_code) — Business address zip
• 2834 (sic_code) — Standard Industrial Classification

FAQ

Industry Context

Zentalis Pharmaceuticals operates within the pharmaceutical preparations industry, focusing on the development of novel cancer therapeutics.

Regulatory Implications

As a publicly traded company, Zentalis Pharmaceuticals is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) detailing its financial performance and business activities.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and cash flow.
2. Review management's discussion and analysis for insights into operational performance and strategic initiatives.
3. Identify any new risk factors or updates to existing ones disclosed in the report.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for Zentalis Pharmaceuticals in 2024, providing an update from the previous year's filings.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value per share ZNTL The Nasdaq St

Filing Documents

• zntl-20240331.htm (10-Q) — 1302KB
• zentalis10-qq12024ex311.htm (EX-31.1) — 11KB
• zentalis10-qq12024ex312.htm (EX-31.2) — 11KB
• zentalis10-qq12024ex321.htm (EX-32.1) — 5KB
• zentalis10-qq12024ex322.htm (EX-32.2) — 5KB
• zntl-20240331_g1.jpg (GRAPHIC) — 165KB
• 0001725160-24-000107.txt (&nbsp;) — 6382KB
• zntl-20240331.xsd (EX-101.SCH) — 36KB
• zntl-20240331_cal.xml (EX-101.CAL) — 76KB
• zntl-20240331_def.xml (EX-101.DEF) — 170KB
• zntl-20240331_lab.xml (EX-101.LAB) — 515KB
• zntl-20240331_pre.xml (EX-101.PRE) — 363KB
• zntl-20240331_htm.xml (XML) — 704KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Loss 6 Condensed Consolidated Statements of Cash Flows 7 Condensed Consolidated Statement of Stockholders' Equity 9 Notes to Condensed Consolidated Financial Statements 10

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 34

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 92

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 92

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 92

Other Information

Item 5. Other Information 92

Exhibits

Item 6. Exhibits 92

Signatures

Signatures 94 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements within the meaning of the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential," "design," "aim," "support," "advance," "strive," or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about: our competitive position and our industry; our expectations, projections and estimates regarding our capital requirements, need for additional capital, financing our future cash needs, costs, expenses, revenues, capital resources, cash flows, financial performance, profitability, tax obligations, liquidity, growth, contractual obligations, the period of time our cash resources will fund our current operating plan, our internal control over financial reporting and disclosure controls and procedures; the ability of our clinical trials to demonstrate safety and efficacy of our product candidates, and other positive results; the global macroeconomic environment and increased inflation and interest rates; the timing and focus of our ongoing and future preclinical studies and clinical trials, including the reporting of data from those studies and trials and the timing thereof and the timing of init

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements. Zentalis Pharmaceuticals, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts and par value) March 31, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 37,616 $ 28,038 Marketable securities, available-for-sale 451,368 454,881 Prepaid expenses and other current assets 14,822 13,799 Total current assets 503,806 496,718 Property and equipment, net 5,679 5,819 Operating lease right-of-use assets 34,726 35,916 Prepaid expenses and other assets 6,851 6,818 Goodwill 3,736 3,736 Restricted cash 2,681 2,681 Total assets $ 557,479 $ 551,688 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 10,502 $ 14,926 Accrued expenses 44,296 54,441 Total current liabilities 54,798 69,367 Long-term lease liability 42,616 43,150 Other long-term liabilities 1,294 1,780 Total liabilities 98,708 114,297 Commitments and contingencies EQUITY Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 250,000,000 shares authorized; 71,011,982 and 70,765,554 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 70 70 Additional paid-in capital 1,336,416 1,323,576 Accumulated other comprehensive income 773 2,194 Accumulated deficit ( 878,488 ) ( 888,556 ) Total stockholders' equity 458,771 437,284 Noncontrolling interests — 107 Total equity 458,771 437,391 Total liabilities and stockholders' equity $ 557,479 $ 551,688 See notes to condensed consolidated financial statements. 4 Zentalis Pharmaceuticals, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 License Revenue $ 40,560 $ — Operating Expenses Research and development 49,585 48,584 General and administrative 15,740 16,369 T

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View this 10-Q filing on SEC EDGAR