Zentalis Pharmaceuticals Files Q3 2024 10-Q

Ticker: ZNTL · Form: 10-Q · Filed: Nov 12, 2024 · CIK: 1725160

Sentiment: neutral

Topics: 10-Q, pharmaceuticals, financial-results

TL;DR

Zentalis Q3 10-Q filed. Financials and ops update for period ending 9/30/24.

AI Summary

Zentalis Pharmaceuticals, Inc. filed its 10-Q for the period ending September 30, 2024. The company reported its financial results and provided updates on its business operations. Key financial figures and operational highlights for the third quarter of 2024 are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial health and operational progress of Zentalis Pharmaceuticals, crucial for understanding its current standing and future prospects in the pharmaceutical sector.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Zentalis faces inherent risks related to drug development, clinical trials, regulatory approvals, and market competition.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Zentalis Pharmaceuticals, Inc.?

Zentalis Pharmaceuticals, Inc. is primarily involved in the pharmaceutical preparations industry, as indicated by its SIC code [2834].

What is the fiscal year end for Zentalis Pharmaceuticals?

The company's fiscal year ends on December 31st (1231).

When was Zentalis Pharmaceuticals, Inc. previously known as Zeno Pharma, LLC?

The company's name changed from Zeno Pharma, LLC on January 7, 2020 (20200107).

What is the SEC file number for Zentalis Pharmaceuticals?

The SEC file number for Zentalis Pharmaceuticals is 001-39263.

What period does this 10-Q filing cover?

This 10-Q filing covers the period ending September 30, 2024 (20240930).

Filing Stats: 4,547 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-11-12 16:00:52

Key Financial Figures

Filing Documents

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 11

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 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 43

OTHER INFORMATION

PART II. OTHER INFORMATION 44

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 100

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 100

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 100

Other Information

Item 5. Other Information 100

Exhibits

Item 6. Exhibits 100

Signatures

Signatures 102 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," "continue," "goal," "milestone," "foreseeable," "may prove," 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 plans to host an investor event and share updated clinical data and a regulatory update, including plans for registration-intent studies, and the timing thereof; 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 interes

—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) September 30, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 41,320 $ 28,038 Marketable securities, available-for-sale 349,932 454,881 Prepaid expenses and other current assets 9,018 13,799 Total current assets 400,270 496,718 Property and equipment, net 5,016 5,819 Operating lease right-of-use assets 33,403 35,916 Prepaid expenses and other assets 5,609 6,818 Goodwill 3,736 3,736 Restricted cash 2,627 2,681 Total assets $ 450,661 $ 551,688 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 8,202 $ 14,926 Accrued expenses 46,675 54,441 Total current liabilities 54,877 69,367 Long-term lease liability 40,457 43,150 Other long-term liabilities 996 1,780 Total liabilities 96,330 114,297 Commitments and contingencies EQUITY Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; 250,000,000 shares authorized; 71,149,666 and 70,765,554 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 71 70 Additional paid-in capital 1,359,589 1,323,576 Accumulated other comprehensive income 1,594 2,194 Accumulated deficit ( 1,006,923 ) ( 888,556 ) Total stockholders' equity 354,331 437,284 Noncontrolling interests — 107 Total equity 354,331 437,391 Total liabilities and stockholders' equity $ 450,661 $ 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 License Revenue $ — $ — $ 40,560 $ — Operating Expenses Research and devel

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