10-K · March 20, 2023
Chemomab (CMMB) is a clinical‑stage biotech advancing CM‑101, a first‑in‑class anti‑CCL24 monoclonal antibody with dual anti‑fibrotic and anti‑inflammatory activity, focused on orphan indications PSC and SSc. The 2022…
Earnings analysis · 10-Q
CMMB earnings analysis
Filed May 11, 2023 · Our reading of the company's report
The latest report
Chemomab reported a materially wider quarterly loss as it ramped R&D spending for CM-101. Cash increased to $20,765k as the company drew down short-term deposits, providing a liquidity runway through June 30, 2024, but…
Read full summary
Chemomab reported a materially wider quarterly loss as it ramped R&D spending for CM-101. Cash increased to $20,765k as the company drew down short-term deposits, providing a liquidity runway through June 30, 2024, but operating cash use and accumulated deficit both deteriorated versus prior year.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.04
What stood out
-
Net loss widened QoQ/YoY
Net loss for the three months ended March 31, 2023 was $8,753 thousand versus $5,104 thousand in the prior-year quarter (increase of $3,649 thousand).
-
R&D ramp drove expense growth
Research and development expense increased to $6,887 thousand in Q1 2023 from $2,745 thousand in Q1 2022 (up $4,142 thousand).
-
Operating expense increase
Total operating expenses rose to $9,049 thousand in Q1 2023 from $5,320 thousand in Q1 2022 (increase of $3,729 thousand, ~70%).
-
Cash converted from deposits; cash balance up
Cash and cash equivalents increased to $20,765 thousand at March 31, 2023 from $13,519 thousand at December 31, 2022 (increase of $7,246 thousand) while short-term bank deposits decreased to $11,941 thousand from $26,374 thousand (decrease of $14,433 thousand).
-
Operating cash burn accelerated
Net cash used in operating activities was $7,186 thousand in Q1 2023 versus $3,711 thousand in Q1 2022 (increase in cash used of $3,475 thousand); free cash flow (operating cash flow minus capex) was approximately -$7,187 thousand.
-
Liquidity runway provided by management
Management states existing liquidity resources as of March 31, 2023 will enable operations through June 30, 2024 (explicit liquidity runway date).
What to watch
-
Wider losses and higher burn
Net loss widened to $8,753 thousand in Q1 2023 from $5,104 thousand in Q1 2022, and operating cash used increased to $7,186 thousand from $3,711 thousand, pressuring liquidity without additional financing.
-
Working capital declined
Total current assets declined to $33,778 thousand at March 31, 2023 from $41,736 thousand at December 31, 2022 (decline of $7,958 thousand); current liabilities were $6,997 thousand (up $248 thousand), reducing net working capital.
-
VAT audit / tax assessment outstanding
The Israeli Tax Authority initiated a VAT audit covering 2017–2020 and issued an assessment; the Company recorded a provision in 2022 (note: assessment amount not specified in the filing).
-
R&D program timing risk
Planned SSc Phase 2 trial is expected to begin enrolling around midyear 2023 with a data readout targeted for the second half of 2024—delays could extend cash needs (management: 'expect to begin enrolling around midyear 2023' and 'data read-out is targeted for the second half of 2024').
-
Limited near-term revenue
Company discloses 'To date, we have not generated any revenue,' indicating continued reliance on financing (explicit statement in MD&A).
Management's outlook
No numeric revenue or EPS guidance provided. Management states liquidity is sufficient to fund operations through June 30, 2024 and expects to begin enrolling the SSc Phase 2 trial 'around midyear 2023' with a 'data read-out targeted for the second half of 2024.' The company filed an amendment to registration statement on Form S-1/A for issuance of up to $10 million (filed March 22, 2023) and retains an ATM capacity (up to $75 million) under the ATM Agreement (April 30, 2021).
Earlier filings 4
10-Q · November 10, 2022
Chemomab reported a Q3 net loss of $8,080 (thousands) and a loss per ADS of $0.70 (loss per ordinary share $0.035), missing consensus EPS (-$0.33). R&D investment ramped materially (Q3 R&D $5,423 vs $1,487 in Q3 2021)…
10-Q · May 12, 2022
Chemomab reported a wider net loss and higher operating spend in Q1 2022 as it ramps clinical activities for lead candidate CM-101. Net loss was $5,104 thousand vs $1,704 thousand a year earlier, with operating expenses…
10-Q · August 13, 2021
Chemomab reported no product revenue and a wider loss in Q2: operating expenses rose to $2,753 (USD thousands) in Q2 2021 versus $1,101 in Q2 2020, driving a net loss of $2,770 (USD thousands) for the quarter. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.