Scholar Rock 10-Q: Assets $79.99M, Liabilities $75.98M

Ticker: SRRK · Form: 10-Q · Filed: Aug 8, 2024 · CIK: 1727196

Sentiment: neutral

Topics: 10-Q, financials, biotech

TL;DR

SRRK 10-Q: Assets $79.99M, Liabilities $75.98M. Tight balance sheet.

AI Summary

Scholar Rock Holding Corp filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $79.99 million and total liabilities of $75.98 million as of June 30, 2024. The filing covers the second quarter of 2024 and provides financial details for the period.

Why It Matters

This 10-Q filing provides a snapshot of Scholar Rock's financial health as of Q2 2024, indicating a narrow net asset position.

Risk Assessment

Risk Level: medium — The company has a significant amount of liabilities relative to its assets, suggesting potential financial strain.

Key Numbers

Key Players & Entities

FAQ

What was Scholar Rock's net income or loss for the quarter ending June 30, 2024?

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What is the company's cash and cash equivalents balance as of June 30, 2024?

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Are there any significant debt obligations reported in this 10-Q?

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What were the total revenues for the period ending June 30, 2024?

Revenue figures for the period ending June 30, 2024, are not present in the provided text.

What is the company's stock ticker symbol?

While not explicitly stated in the financial data, the filing is associated with Scholar Rock Holding Corp, and common knowledge or other parts of the filing would reveal the ticker is SRRK.

Filing Stats: 4,464 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-08-08 07:15:26

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 5 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 5 Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2024 and 2023 6 Consolidated Statements of Stockholders' Equity for the Six Months Ended June 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

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 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 80

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 80

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 80

Other Information

Item 5. Other Information 80

Exhibits

Item 6. Exhibits 81

SIGNATURES

SIGNATURES 82 4 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements SCHOLAR ROCK HOLDING CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 93,372 $ 101,855 Marketable securities 97,122 178,083 Prepaid expenses and other current assets 8,643 8,256 Total current assets 199,137 288,194 Property and equipment, net 3,549 4,600 Operating lease right-of-use asset 17,975 11,417 Restricted cash 2,407 2,407 Other long-term assets 3,797 4,417 Total assets $ 226,865 $ 311,035 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 3,315 $ 3,465 Accrued expenses 21,886 20,449 Operating lease liability 6,198 7,408 Short-term debt 1,588 1,334 Other current liabilities — 85 Total current liabilities 32,987 32,741 Long-term portion of operating lease liability 11,773 4,392 Long-term debt 48,485 48,684 Total liabilities 93,245 85,817 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 300,000,000 shares authorized; 79,992,068 and 75,979,495 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 80 76 Additional paid-in capital 925,376 901,471 Accumulated other comprehensive income (loss) ( 54 ) 92 Accumulated deficit ( 791,782 ) ( 676,421 ) Total stockholders' equity 133,620 225,218 Total liabilities and stockholders' equity $ 226,865 $ 311,035 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents SCHOLAR ROCK HOLDING CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (In thousands, except share and per share data) T

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Nature of the Business Scholar Rock Holding Corporation (the "Company") is a late-stage biopharmaceutical company focused on the discovery, development, and delivery of innovative medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. As a global leader in transforming growth factor beta ("TGF") superfamily biology, the Company's novel understanding of the molecular mechanisms of growth factor activation enabled the development of a proprietary platform for the discovery and development of monoclonal antibodies that locally and selectively target the precursor, or latent, forms of growth factors. By targeting the signaling proteins at the cellular level and acting in the disease microenvironment, the Company believes that it may avoid the historical dose-limiting safety challenges associated with inhibiting growth factors for therapeutic effect. The Company's first product candidate, apitegromab, is a highly selective, fully human, monoclonal antibody, with a unique mechanism of action that results in inhibition of the activation of the growth factor, myostatin, in skeletal muscle. Apitegromab is being developed as a potential first muscle-targeted therapy for the treatment of spinal muscular atrophy ("SMA"). The Company is conducting SAPPHIRE, a pivotal Phase 3 clinical trial to evaluate the efficacy and safety of apitegromab in patients with nonambulatory Type 2 and Type 3 SMA. In 2023, the Company completed enrollment for the Phase 3 SAPPHIRE trial. In 2024, the Company announced data from the Phase 2 TOPAZ trial extension period which showed patient outcomes at 48 months of treatment with apitegromab. The FDA granted Fast Track designation, Rare Pediatric Disease designation and Orphan Drug designation to apitegromab for the treatment of SMA in May 2021, August 2020 and March 2018, respectively. The European Medicines Agency ("EMA") gran

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