CMMB earnings analysis
What we found in CMMB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.04
What they said about what is next.
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).
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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