MoonLake Immunotherapeutics 10-Q for FY2024 Q1

MoonLake Immunotherapeutics (MLTX)

10-Q 2024-05-07 For: 2024-03-31

Added on April 08, 2026

About this 10-Q

MoonLake Immunotherapeutics filed this 10-Q on May 7, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $13.67M; compared with a net loss of $9M a year earlier
Diluted EPS: -$0.22; compared with -$0.23 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Cayman Islands						98-1711963
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

Dorfstrasse 29
6300 Zug
Switzerland						N/A
(Address of principal executive offices)						(ZIP Code)


PART I. FINANCIAL INFORMATION			2
Item 1. Financial Statements (Unaudited)			2
Condensed Consolidated Balance Sheets			2
Condensed Consolidated Statements of Operations and Comprehensive Loss			3
Condensed Consolidated Statements of Changes In Equity			4
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			25
Item 3. Quantitative and Qualitative Disclosures About Market Risk			38
Item 4. Controls and Procedures			39
PART II. OTHER INFORMATION			40
Item 1. Legal Proceedings			40
Item 1A. Risk Factors			40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			40
Item 3. Defaults Upon Senior Securities			40
Item 4. Mine Safety Disclosures			40
Item 5. Other Information			40
Item 6. Exhibits			41
SIGNATURES			42


	March 31, 2024 (Unaudited)		December 31, 2023
Current assets
Cash and cash equivalents	$	458,441,051	$	451,169,337
Short-term marketable debt securities	88,613,700		59,838,900


Other receivables	1,495,876		1,056,862
Prepaid expenses - current	5,039,343		2,102,203

Total current assets	553,589,970		514,167,302

Non-current assets
Operating lease right-of-use assets	3,698,514		3,628,480
Property and equipment, net	509,816		320,865
Prepaid expenses - non-current	6,318,838		8,423,468




Total non-current assets	10,527,168		12,372,813
Total assets	$	564,117,138	$	526,540,115

Current liabilities
Trade and other payables	$	3,482,790	$	1,837,684
Short-term portion of operating lease liabilities	1,304,426		1,197,876

Accrued expenses and other current liabilities	4,123,304		6,930,120


Total current liabilities	8,910,520		9,965,680

Non-current liabilities
Long-term portion of operating lease liabilities	2,357,495		2,499,990
Pension liability	462,735		583,426

Total non-current liabilities	2,820,230		3,083,416
Total liabilities	11,730,750		13,049,096
Commitments and contingencies (Note 15)

Equity



Class A Ordinary Shares: $0.0001 par value; 500,000,000 shares authorized; 62,874,637 shares issued and outstanding as of March 31, 2024; 60,466,453 shares issued and outstanding as of December 31, 2023	6,287		6,047
Class C Ordinary Shares: $0.0001 par value; 100,000,000 shares authorized; 995,267 shares issued and outstanding as of March 31, 2024; 2,505,476 shares issued and outstanding as of December 31, 2023	100		251
Additional paid-in capital	670,185,376		609,969,236
Accumulated deficit	(130,331,128)		(116,657,472)
Accumulated other comprehensive income	2,693,096		2,357,621
Total shareholders’ equity	542,553,731		495,675,683
Noncontrolling interests	9,832,657		17,815,336
Total equity	552,386,388		513,491,019
Total liabilities and equity	$	564,117,138	$	526,540,115


	Three Months Ended March 31,
	2024		2023


Operating expenses
Research and development	$	(13,014,049)	$	(7,415,097)
General and administrative	(6,806,440)		(5,516,469)
Total operating expenses	(19,820,489)		(12,931,566)
Operating loss	(19,820,489)		(12,931,566)

Other income, net	5,915,220		723,589



Loss before income tax	(13,905,269)		(12,207,977)

Income tax expense	(70,252)		(11,010)
Net loss	$	(13,975,521)	$	(12,218,987)
Of which: net loss attributable to controlling interests shareholders	(13,673,656)		(9,004,856)
Of which: net loss attributable to noncontrolling interests shareholders	(301,865)		(3,214,131)

Net unrealized gain on marketable securities and short term investments	182,273		24,472

Actuarial gain (loss) on employee benefit plans	81,230		(42,144)
Other comprehensive income (loss)	263,503		(17,672)
Comprehensive loss	$	(13,712,018)	$	(12,236,659)
Comprehensive loss attributable to controlling interests shareholders	(13,415,707)		(9,017,481)
Comprehensive loss attributable to noncontrolling interests	(296,311)		(3,219,178)

Weighted-average number of Class A Ordinary Shares, basic and diluted	62,637,212		39,061,977
Basic and diluted net loss per share attributable to controlling interests shareholders	$	(0.22)	$	(0.23)


	Class A Ordinary Shares	Class C Ordinary Shares			Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total Shareholders' Equity		Noncontrolling Interests		Total Equity
		Shares	Amount															Shares		Amount
Balance at December 31, 2022		38,977,600	$	3,898			13,723,511	$	1,373	$	129,192,291	$	(80,650,212)	$	350,946	$	48,898,296	$	19,868,402	$	68,766,698
Share-based compensation under the equity incentive plan ESPP, ESOP, EIP and reverse vesting of Restricted Founder Shares		—	—				—	—		1,875,992		—		—		1,875,992		701,195		2,577,187
Refund of stamp duty fees		—	—				—	—		3,517		—		—		3,517		1,406		4,923
Net loss for the three months ended March 31, 2023		—	—				—	—		—		(9,004,856)		—		(9,004,856)		(3,214,131)		(12,218,987)
Other comprehensive income		—	—				—	—		—		—		(12,625)		(12,625)		(5,047)		(17,672)
Conversion of MoonLake Class C Ordinary Shares into Class A Ordinary Shares		176,603	18				(176,603)	(18)		237,049		—		1,787		238,836		(238,836)		—
Balance at March 31, 2023		39,154,203	$	3,916			13,546,908	$	1,355	$	131,308,849	$	(89,655,068)	$	340,108	$	41,999,160	$	17,112,989	$	59,112,149


	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Cash flow from operating activities
Net loss	$	(13,975,521)	$	(12,218,987)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	22,813		3,290
Share-based compensation expense	1,677,208		2,577,187

Net periodic pension benefit (gain) cost for the qualified pension plan	(272)		(13,271)
Other non-cash items	171,649		97,631
Changes in operating assets and liabilities:
Other receivables	(439,014)		(161,316)


Right-of-use assets	(5,443)		—
Prepaid expenses	(832,510)		1,103,606
Trade and other payables	1,645,106		3,572,431
Operating leases liabilities	(405,575)		(38,825)
Accrued expenses and other current liabilities	(2,806,816)		(3,946,173)


Net cash flow used in operating activities	(14,948,375)		(9,024,427)

Cash flow from investing activities
Purchase of short-term marketable debt securities	(87,713,327)		—
Proceeds from maturities of short-term marketable debt securities	59,120,801		19,648,532
Purchase of property and equipment	(211,765)		—
Net cash flow used in investing activities	(28,804,291)		19,648,532

Cash flow from financing activities

Issuance of Class A Ordinary Shares, net of transaction costs (Note 11)	52,540,190		—
Stamp duty on capital injection from MoonLake to MoonLake AG (Note 11)	(1,562,235)		—





Buyback of unvested MoonLake AG Common Shares by MoonLake AG following an employee contract termination (Note 11)	(50)		—


Net cash flow provided by financing activities	50,977,905		—

Effect of movements in exchange rates on cash held	46,475		(535)
Net change in cash and cash equivalents	7,271,714		10,623,570

Cash and cash equivalents, beginning of period	451,169,337		39,505,627
Cash and cash equivalents, end of period	$	458,441,051	$	50,129,197

Supplementary disclosure of cash flow information:

Non-cash operating lease assets obtained in exchange for lease obligations	$	369,630	$	—


	March 31, 2024				December 31, 2023
	Level 2		Total			Level 2		Total
Eurocommercial Papers	$	188,351,700	$	188,351,700		$	109,608,915	$	109,608,915
Certificates of Deposit	89,804,879		89,804,879			79,626,727		79,626,727
Total	$	278,156,579	$	278,156,579		$	189,235,642	$	189,235,642


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Eurocommercial Papers	$	186,422,586	$	1,929,114	$	—	$	188,351,700
Certificates of Deposit	88,830,866		974,013		—		89,804,879
Total	$	275,253,452	$	2,903,127	$	—	$	278,156,579
Of which classified within cash and cash equivalents	187,540,125		2,002,754		—		189,542,879
Of which classified within short-term marketable debt securities	87,713,327		900,373		—		88,613,700


Beginning balance, January 1, 2024	$	2,720,854
Other comprehensive income before reclassifications	3,748,517
Amounts reclassified from accumulated other comprehensive income	(3,566,244)

Ending balance, March 31, 2024	$	2,903,127


	March 31, 2024		December 31, 2023
Consulting and advisory services	$	1,629,694	$	80,695
Supply and manufacturing fees payable	1,024,172		553,459
Research and development services and license fees	431,242		911,454
Legal advisory fees payable	193,640		47,095
Other payables	204,042		244,981


Total	$	3,482,790	$	1,837,684


	March 31, 2024		December 31, 2023
Bonuses and related employees compensation expenses	$	1,201,586	$	2,780,219
Supply and manufacturing services	912,052		1,603,739
Tax liabilities	851,475		367,976
Research and development services and license fees	727,210		1,226,281
Consultant and other fees	364,184		853,905
Legal fees	66,797		98,000
Total	$	4,123,304	$	6,930,120


	March 31, 2024		December 31, 2023
Weighted average remaining lease term (in months)	36		39
Weighted average discount rate	4.8	%	4.9	%


Year ending December 31,	Amount
Remainder of fiscal 2024	$	1,082,561
2025	1,443,415
2026	1,132,061
2027	93,510
2028	93,510
Thereafter	64,351
Total lease payments	3,909,408
Less imputed interest	(247,487)
Total lease liability	3,661,921
Less current portion of lease liability	(1,304,426)
Long-term portion operating lease liability	$	2,357,495


	Three months ended March 31, 2024		Three months ended March 31, 2023
Service cost	$	70,762	$	29,802
Interest cost	8,347		7,442
Expected return on plan assets	(15,263)		(8,871)

Amortization of unrecognized loss	2,596		—
Prior service cost / (credit) recognized in current year	(2,570)		—
Total Net Periodic Benefit Cost	$	63,872	$	28,373


	Class A Ordinary Shares(1)		Class C Ordinary Shares(1)		Total Number of Ordinary Shares
		Authorized	Issued	Authorized	Issued	Authorized	Issued and Outstanding

Balance at January 1, 2024		500,000,000	60,466,453	100,000,000	2,505,476	600,000,000	62,971,929
Conversion of Class C Ordinary Shares into Class A Ordinary Shares		—	1,493,356	—	(1,493,356)	—	—
Issuance of Class A Ordinary Shares under the ATM facility		—	914,828	—	—	—	914,828
Cancellation of Class C shares following an employee contract termination in MoonLake AG		—	—	—	(16,853)	—	(16,853)
Balance at March 31, 2024		500,000,000	62,874,637	100,000,000	995,267	600,000,000	63,869,904


Weighted average assumptions for the awards issued during the three months ended March 31, 2024
Estimated fair value of the option on the grant date using Black-Scholes model ($)			36.92
Exercise price ($)			53.54
Expected term of the award on the grant date (years) (1)			6
Expected volatility of the share price (2)			75%
Risk-free interest rate (3)			4.6%
Expected dividend rate			—%
(1) The expected term represents the period that share-based awards are expected to be outstanding. (2) The expected volatility was derived from the historical stock volatilities of comparable peer public companies within the Company’s industry. (3) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the measurement date with maturities approximately equal to the expected term.


Country	March 31, 2024		December 31, 2023
Switzerland	$	819,237	$	507,392
United Kingdom	2,476,610		2,704,555
Portugal	912,483		737,398
Total	$	4,208,330	$	3,949,345


	Total		Less than 1 year		1 to 5 Years		More than 5 years

Purchase obligations(1)	$	61,286,050	$	28,327,468	$	32,958,582	$	—
Lease commitments(2)	3,909,408		1,443,415		2,425,019		40,974
Total contractual obligations	$	65,195,458	$	29,770,883	$	35,383,601	$	40,974


Compensation Plan	Three months ended March 31, 2024		Three months ended March 31, 2023
MoonLake AG Restricted Founder Shares	$	—	$	1,210,082
ESPP	717,302		1,056,954


ESOP	—		188,239


MoonLake Immunotherapeutics 2022 Equity Incentive Plan	959,906		121,912
Total share-based compensation expense	$	1,677,208	$	2,577,187
Of which: included in research and development expense	416,980		586,994
Of which: included in general and administrative expense	1,260,228		1,990,193


Grants awarded
Program			Restricted Founder Shares
Awards unvested as of January 1, 2023			1,110,078
Awards vested for the three months ended March 31, 2023			(832,558)
Awards unvested as of March 31, 2023			277,520


	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023		Change		Change %

Operating expenses
Research and development	$	(13,014,049)	$	(7,415,097)	$	(5,598,952)	75.5	%
General and administrative	(6,806,440)		(5,516,469)		(1,289,971)		23.4	%
Total operating expenses	(19,820,489)		(12,931,566)		(6,888,923)		53.3	%
Operating loss	(19,820,489)		(12,931,566)		(6,888,923)		53.3	%



Other income, net	5,915,220		723,589		5,191,631		717.5	%
Loss before income tax	(13,905,269)		(12,207,977)		(1,697,292)		13.9	%

Income tax expense	(70,252)		(11,010)		(59,242)		538.1	%
Net loss	(13,975,521)		(12,218,987)		(1,756,534)		14.4	%

Net unrealized gain on marketable securities and short term investments	182,273		24,472		157,801		644.8	%
Actuarial gain (loss) on employee benefit plans	81,230		(42,144)		123,374		(292.7)	%
Other comprehensive income (loss)	263,503		(17,672)		281,175		(1,591.0)	%
Comprehensive loss	$	(13,712,018)	$	(12,236,659)	$	(1,475,359)	12.1	%


	For the three months ended
	March 31, 2024		March 31, 2023
Net cash used in operating activities	$	(14,948,375)	$	(9,024,427)
Net cash (used in) provided by investing activities	(28,804,291)		19,648,532
Net cash provided by financing activities	50,977,905		—
Effect of movements in exchange rates on cash held	46,475		(535)
Net increase in cash and cash equivalents	$	7,271,714	$	10,623,570


No.						Description of Exhibit
3.1						Memorandum and Articles of Association of MoonLake Immunotherapeutics (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on April 11, 2022)
31.1*						Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*						Certification of Principal Financial and Accounting Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**						Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**						Certification of Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*						Inline XBRL Instance Document.
101.SCH*						Inline XBRL Taxonomy Extension Schema Document.
101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).