Sagimet Biosciences Q2 2024: Net Loss of $21.4M

Ticker: SGMT · Form: 10-Q · Filed: Aug 14, 2024 · CIK: 1400118

Sentiment: bearish

Topics: 10-Q, financials, biotech, net-loss

TL;DR

Sagimet Bio's Q2 2024: $30.4M assets, $1.5M liabilities, $21.4M net loss. Ouch.

AI Summary

Sagimet Biosciences Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $30.4 million and total liabilities of $1.5 million as of June 30, 2024. For the three months ended June 30, 2024, the company reported revenue of $0.01 million and a net loss of $21.4 million.

Why It Matters

This filing provides a snapshot of Sagimet Biosciences' financial health and operational performance, crucial for investors assessing its current market position and future prospects.

Risk Assessment

Risk Level: medium — The company reported a significant net loss in the quarter, indicating potential financial strain and a need for further funding or improved revenue generation.

Key Numbers

Key Players & Entities

FAQ

What was Sagimet Biosciences' net loss for the three months ended June 30, 2024?

Sagimet Biosciences reported a net loss of $21.4 million for the three months ended June 30, 2024.

What were the total assets of Sagimet Biosciences as of June 30, 2024?

As of June 30, 2024, Sagimet Biosciences had total assets of $30.4 million.

What were the total liabilities of Sagimet Biosciences as of June 30, 2024?

As of June 30, 2024, Sagimet Biosciences had total liabilities of $1.5 million.

What was the reported revenue for the three months ended June 30, 2024?

The reported revenue for the three months ended June 30, 2024, was $0.01 million.

What is the fiscal year end for Sagimet Biosciences?

The fiscal year end for Sagimet Biosciences is December 31.

Filing Stats: 4,492 words · 18 min read · ~15 pages · Grade level 18.9 · Accepted 2024-08-14 08:00:29

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Condensed Balance Sheets 5 Condensed Statements of Operations and Comprehensive Loss 6 Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) 7 Condensed Statements of Cash Flows 8 Notes to Condensed Financial Statements 9 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 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 29

Signatures

Signatures 30 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this Quarterly Report) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act) . All statements other than statements of historical facts contained in this Quarterly Report, including statements regarding our future results of operations and financial position, business strategy, drug candidates, planned preclinical studies and clinical trials, results of preclinical studies, clinical trials, research and development costs, regulatory approvals, timing and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that are in some cases beyond our control and may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "would," "expect," "plan," "anticipate," "could," "intend," "target," "project," "believe," "estimate," "predict," "potential," or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements about: our financial performance; our ability to obtain additional cash and the sufficiency of our existing cash, cash equivalents and marketable securities to fund our future operating expenses and capital expenditure requirements; the accuracy of our estimates regarding expenses, future revenue, capital requirements, and needs for additional financing; the scope, progress, results and costs of developing denifanstat or any other drug

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) SAGIMET BIOSCIENCES INC. CONDENSED BALANCE SHEETS (Unaudited) (in thousands, except for share and per share amounts) As of June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 95,959 $ 75,139 Short-term marketable securities 70,414 19,758 Prepaid expenses and other current assets 378 1,749 Total current assets 166,751 96,646 Long-term marketable securities 22,118 — Operating lease right-of-use assets 151 73 Total assets $ 189,020 $ 96,719 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 1,994 $ 186 Accrued expenses and other current liabilities (includes $ 23 and $ 31 payable to related parties as of June 30, 2024 and December 31, 2023, respectively) 3,581 5,403 Operating lease liabilities 153 65 Total liabilities 5,728 5,654 Commitments and contingencies (Note 7) Stockholders' equity, $ 0.0001 par value: Undesignated preferred stock, $ 0.0001 per share: 10,000,000 shares authorized; No shares issued and outstanding — — Series A common stock, $ 0.0001 per share: 500,000,000 shares authorized ; 30,393,397 and 21,375,402 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 3 2 Series B common stock, $ 0.0001 per share: 15,000,000 shares authorized; 1,520,490 shares issued and outstanding at each of June 30, 2024 and December 31, 2023 — — Additional paid-in capital 447,803 340,777 Accumulated deficit ( 264,491 ) ( 249,744 ) Accumulated other comprehensive income (loss) ( 23 ) 30 Total stockholders' equity 183,292 91,065 Total liabilities and stockholders' equity $ 189,020 $ 96,719 The accompanying notes are an integral part of these unaudited condensed financial statements. 5 Table of Contents SAGIMET BIOSCIENCES INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (in thousands, except fo

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