Thu, May 15, 11:03 AM (39 days ago)
### Summary of Elevation Oncology, Inc. (ELEV) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Revenue:** Elevation Oncology, Inc. (ELEV) reported no revenue for the quarter ended March 31, 2025, consistent with previous quarters due to the company's focus on research and development. - **Net Loss:** The company incurred a net loss of $14.2 million for Q1 2025, compared to $10.7 million in Q1 2024, indicating an increase in operating expenses. **Cash Flow:** - **Operating Activities:** Net cash used in operating activities was $12.7 million for Q1 2025, primarily due to the net loss partially offset by adjustments for non-cash expenses and changes in operating assets and liabilities. - **Investing Activities:** Net cash provided by investing activities was $23.8 million, primarily from sales and maturities of marketable securities. - **Financing Activities:** Net cash used by financing activities was minimal, primarily due to payments for common stock repurchases. **Earnings Changes:** - **Operating Expenses:** Total operating expenses increased to $14.2 million in Q1 2025 from $9.9 million in Q1 2024, driven by higher research and development costs and restructuring charges. - **Research and Development:** R&D expenses were $6.9 million in Q1 2025, up from $6.0 million in Q1 2024, due to increased preclinical and IND-enabling activities for EO-1022. - **General and Administrative:** G&A expenses were $4.0 million in Q1 2025, slightly higher than $3.9 million in Q1 2024. - **Restructuring Charges:** The company incurred $3.4 million in restructuring charges in Q1 2025, primarily related to workforce reduction and asset write-offs. **Quarterly Performance Discussion:** - **EO-1022:** The company is developing EO-1022, a HER3 ADC, with plans to file an IND application in 2026. Preclinical data presented at AACR 2025 showed promising results, including high stability in human serum and potent in vitro cytotoxicity. - **EO-3021:** Development of EO-3021 was discontinued in March 2025 due to data from Phase 1 trials indicating limited efficacy. - **Financial Outlook:** The company expects its cash, cash equivalents, and marketable securities of $80.7 million to fund operations into the second half of 2026. However, future capital requirements are uncertain and depend on various factors, including clinical trial progress and regulatory approvals. **Trends and Uncertainties:** - **Clinical Trials:** The success of EO-1022 and other potential product candidates depends on successful completion of preclinical studies and clinical trials, which are subject to various risks and uncertainties. - **Regulatory Approvals:** The company faces significant challenges in obtaining regulatory approvals for its product candidates, which are subject to extensive regulation and uncertainty. - **Competition:** The company operates in a highly competitive market with several other companies developing similar therapies. **Future Operations Impact:** - **Restructuring:** The company implemented a workforce reduction of approximately 70% in Q1 2025, which is expected to reduce general and administrative expenses. - **Financing:** The company has entered into various financing agreements, including a loan agreement with K2 HealthVentures LLC, which was prepaid in May 2025. - **Strategic Options:** The company is evaluating strategic options to maximize shareholder value, including potential mergers, sales, or licensing agreements.