Absci Corp
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
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Jun 30, 2025 · Filed Aug 12, 2025
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Notes to Unaudited Condensed Consolidated Financial Statements
- Organization and nature of operations
Absci Corporation (the “Company”) is a clinical stage biopharmaceutical company advancing potential breakthrough antibody therapeutics with generative AI. The Company’s Integrated Drug Creation platform comprises, in part, cutting edge AI models aimed at designing better antibody therapeutics, including against hard-to-drug targets.
The Company was organized in the State of Oregon in August 2011 as a limited liability company and converted to a limited liability company (“LLC”) in Delaware in April 2016. In October 2020, the Company converted from a Delaware LLC to a Delaware corporation. The Company’s headquarters are located in Vancouver, Washington.
Unaudited interim financial information
The Company prepared its interim condensed consolidated financial statements that accompany these notes in conformity with accounting principles generally accepted in the United States, consistent in all material respects with those applied in its Annual Report on Form 10-K for the year ended December 31, 2024.
The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. The actual results that the Company experiences may differ materially from its estimates. The interim financial information is unaudited and reflects all normal adjustments that are, in the Company’s opinion, necessary to provide a fair statement of results for the interim periods presented. This report should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
- Revenue recognition
Contract balances
Contract liabilities are recorded as deferred revenue when cash payments are received or due in advance of the satisfaction of performance obligations. As of June 30, 2025 and December 31, 2024, contract liabilities were $1.0 million and $1.1 million, respectively. During the three and six months ended June 30, 2025, the Company recognized $0.2 and $0.6 million, respectively, as revenue that had been included in deferred revenue at the beginning of the period. During the three and six months ended June 30, 2024, the Company recognized $1.3 million and $2.2 million, respectively, as revenue that had been included in deferred revenue at the beginning of the period.
Concentration of risk
During the three and six months ended June 30, 2025, two partners represented approximately 99% andthree partners represented 100% of total partner program revenue, respectively. During the three and six months ended June 30, 2024, two partners represented 100% of total partner program revenue.
- Collaborative arrangements
As of June 30, 2025, the Company has collaborative arrangements with PrecisionLife, Memorial Sloan Kettering Cancer Center, Twist Bioscience, and Owkin that involve joint research and development activities and for which the parties are exposed to significant risks and rewards dependent on the commercial success of such activities. The Company performs drug creation activities to co-develop product candidates. These arrangements include rights for the parties to share in the potential value created by the programs, as well as cost sharing which may result in payments between the parties. The Company’s accounting policy is to present cost sharing payments to and from the Company’s collaborators within research and development expense on the condensed consolidated statements of operations and comprehensive loss. The Company did not have cost sharing payments related to collaborative arrangements during the three or six months ended June 30, 2025 and 2024.
- Investments
Cash equivalents, marketable securities and deposits are classified as available-for-sale and are recorded at fair value on the condensed consolidated balance sheets, with any unrealized gains and losses reported in accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity on the Company’s condensed consolidated balance sheets, until realized. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
The amortized cost and fair value of investments are as follows (in thousands):
| June 30, 2025 | ||||
|---|---|---|---|---|
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair market value | |
| Assets | ||||
| Money market funds | $8,404 | $— | $— | $8,404 |
| U.S. treasuries | 79,459 | 2 | (27) | 79,434 |
| Total | $87,863 | $2 | $(27) | $87,838 |
| Classified as: | ||||
| Cash equivalents | $8,404 | |||
| Short-term investments | 79,434 | |||
| Total | $87,838 | |||
| December 31, 2024 | ||||
|---|---|---|---|---|
| Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair market value | |
| Assets | ||||
| Money market funds | $2,134 | $— | $— | $2,134 |
| U.S. treasuries | 71,151 | 61 | — | 71,212 |
| Total | $73,285 | $61 | $— | $73,346 |
| Classified as: | ||||
| Cash equivalents | $2,134 | |||
| Short-term investments | 71,212 | |||
| Total | $73,346 | |||
Investments held as of June 30, 2025 have a remaining maturity of less than one year. Proceeds from maturities of available-for-sale securities were $26.0 million and $51.0 million for the three and six months ended June 30, 2025, respectively. Proceeds from maturities of available-for-sale securities were $54.5 million and $89.1 million for the three and six months ended June 30, 2024, respectively. There wereno realized gains or losses on securities for the three and six months ended June 30, 2025 and 2024. Unrealized gains and losses on securities were primarily due to changes in interest rates.
- Fair value measurements
The Financial Accounting Standards Board (“FASB”) has defined fair value to establish a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1: Observable inputs such as quoted prices in active markets.
Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
When quoted market prices are available in active markets, the fair value of assets and liabilities is estimated within Level 1 of the valuation hierarchy.
If quoted prices are not available, then fair values are estimated by using pricing models, quoted prices of assets and liabilities with similar characteristics, or discounted cash flows, within Level 2 of the valuation hierarchy. In cases where Level 1 or Level 2 inputs are not available, the fair values are estimated by using inputs within Level 3 of the hierarchy.
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 (in thousands):
| June 30, 2025 | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Assets: | ||||
| Debt Securities: | ||||
| Money market funds | $8,404 | $— | $— | $8,404 |
| U.S. treasuries | 5,000 | 74,434 | — | 79,434 |
| Total assets | $13,404 | $74,434 | $— | $87,838 |
| Liabilities: | ||||
| Contingent consideration | $— | $— | $12,750 | $12,750 |
| Total liabilities | $— | $— | $12,750 | $12,750 |
| December 31, 2024 | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Assets | ||||
| Debt Securities: | ||||
| Money market funds | $2,134 | $— | $— | $2,134 |
| U.S. treasuries | — | 71,212 | — | 71,212 |
| Total assets | $2,134 | $71,212 | $— | $73,346 |
| Liabilities: | ||||
| Contingent consideration | $— | $— | $12,750 | $12,750 |
| Total liabilities | $— | $— | $12,750 | $12,750 |
The Company reviews trading activity and pricing for its available-for-sale securities as of the measurement date.
There was no change to the value of liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 30, 2025. The contingent consideration liability is related to the acquisition of Totient, Inc. and is included in contingent consideration on the condensed consolidated balance sheet as of June 30, 2025 and December 31, 2024. The fair value estimate is based on a probability-weighted approach. The contingent consideration of $15.0 million held in escrow shall be paid upon the achievement of the milestone of either entering into agreements meeting certain financial criteria with third parties using, or relating to, Totient technology or the first commercial sale of a Totient product. The contingent consideration held in escrow is included in restricted cash on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.
The carrying amount of long-term debt approximates fair value.
- Commitments and contingencies
The Company has access to compute capacity and other services through an agreement with Oracle Cloud Infrastructure (OCI) through early 2028. The remaining financial commitments for the years 2025, 2026, 2027, and 2028 are $1.4 million, $4.6 million, $8.3 million, and $2.3 million, respectively.
- Common stock
Shelf registration statement on Form S-3
In August 2022, the Company filed a shelf registration statement on Form S-3 (the Shelf Registration Statement) with the SEC relating to the registration of up to an aggregate of $250.0 million in shares of the Company’s common stock, preferred stock, debt securities, warrants and units or any combination thereof. The Shelf Registration Statement was declared effective by the SEC on September 2, 2022.
At-the-market offering
In June 2023, the Company entered into a Sales Agreement with Cowen and Company, LLC, as Sales Agent, with respect to an “at the market offering” program under which the Company may offer and sell, from time to time, shares of its common stock, par value $0.0001 per share, having an aggregate offering price of up to $100.0 million through the Sales Agent. The Company will pay the Sales Agent a commission up to 3.0% of the gross sales proceeds of any shares sold under the Sales Agreement. During the six months ended June 30, 2025, the Company has issued 5,269,192 shares and received $21.7 million in net proceeds from the sale of securities pursuant to the Sales Agreement.
Private investment in public equity
In January 2025, the Company entered into a strategic collaboration with Advanced Micro Devices, Inc. (AMD) and sold an aggregate of 5,714,285 shares of the Company’s common stock to AMD for net proceeds of $20.0 million through a private investment in public equity (PIPE). This strategic collaboration with AMD has a goal to optimize the performance of AMD Instinct TM accelerators and ROCm TMsoftware to support the Company’s AI drug creation, including its de novo antibody design models. The issuance of stock to AMD was at a premium of approximately $2.5 million over the market price on the issuance date. The premium was recorded to accrued expenses and other long-term liabilities on the condensed consolidated balance sheet and will be recognized as a credit to research and development expense over the collaboration term. The amortization of the premium was $0.2 million and $0.3 million for the three and six months ended June 30, 2025, respectively.
- Stock-based compensation
The Company grants stock options, restricted stock units, and stock appreciation rights (“SARs”) under the 2021 Stock Option and Incentive Plan (“2021 Plan”) and the 2023 Inducement Plan (the “2023 Inducement Plan”). On January 1, 2025, the number of shares of common stock reserved for future issuance under the 2021 Plan was increased by 5,768,113 shares pursuant to an automatic annual increase. As of June 30, 2025,6,145,568 shares were available for future grant under the 2021 Plan. As of June 30, 2025,1,724,200 shares were available for future grant under the 2023 Inducement Plan.
Total stock-based compensation expense related to all of the Company’s stock-based awards was recorded in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Research and development | 2,015 | 1,913 | $4,038 | $3,567 |
| Selling, general and administrative | 2,737 | 3,383 | 5,659 | 5,326 |
| Total stock-based compensation expense | $4,752 | $5,296 | $9,697 | $8,893 |
Stock options
Activity for stock options is shown below:
| Number of Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands $) | |
|---|---|---|---|---|
| Outstanding at December 31, 2024 | 19,177,571 | $3.39 | 7.6 | $7,317 |
| Granted | 5,211,200 | 3.28 | ||
| Exercised | (766,140) | 2.31 | 1,645 | |
| Canceled/Forfeited | (1,703,265) | 2.83 | ||
| Expired | (513,780) | 7.18 | ||
| Outstanding at June 30, 2025 | 21,405,586 | 3.34 | 7.9 | $5,643 |
| Exercisable at June 30, 2025 | 9,379,791 | $3.46 | 6.9 | $3,867 |
As of June 30, 2025, total unrecognized stock-based compensation related to stock options was $25.2 million, which the Company expects to recognize over a remaining weighted average period of 2.2 years.
Determination of fair value
The estimated grant-date fair value of all the Company’s stock options was calculated using the Black-Scholes option pricing model, based on the following assumptions:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Expected term (in years) | 5.5-6.1 | 5.5-6.1 | 5.5-6.1 | 5.5-6.1 |
| Volatility | 91%-92% | 82%-83% | 90%-92% | 81%-83% |
| Risk-free interest rate | 3.9%-4.1% | 4.3%-4.6% | 3.9%-4.4% | 3.8%-4.6% |
| Dividend Yield | —% | —% | —% | —% |
Restricted stock units
Activity for restricted stock units is shown below:
| Number of Shares | Weighted Average Grant Date Fair Value | |
|---|---|---|
| Unvested as of December 31, 2024 | 3,711,710 | $3.12 |
| Granted | 1,423,262 | 3.28 |
| Vested | (414,216) | 4.10 |
| Forfeitures | (317,754) | 2.65 |
| Unvested as of June 30, 2025 | 4,403,002 | $3.11 |
As of June 30, 2025, there was $6.6 million of unrecognized compensation expense related to the outstanding restricted stock units expected to be recognized over a remaining weighted-average period of 2.0 years.
- Net loss per share
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period.
The common stock issuable upon the conversion or exercise of the following dilutive securities has been excluded from the diluted net loss per share calculation because their effect would have been anti-dilutive. Diluted net loss per share, therefore, does not differ from basic net loss per share for the periods presented.
The following potentially dilutive securities, presented based on amounts outstanding at period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would be anti-dilutive:
| For the Six Months Ended June 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Stock options | 21,405,586 | 19,487,460 |
| Restricted stock units | 4,403,002 | 4,444,031 |
| Unvested restricted stock | — | 157,202 |
| Employee stock purchase plan | 106,587 | 93,176 |
| Total | 25,915,175 | 24,181,869 |
On July 17, 2025, the Company sold an aggregate of 5,108,560 shares of the Company’s common stock pursuant to its “at the market” offering program.
On July 28, 2025, the Company sold of an aggregate of 16,670,000 shares of the Company’s common stock pursuant to an underwriting agreement with Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Jefferies LLC and TD Securities (USA) LLC at a public offering price of $3.00 per share, before underwriting discounts and commissions. The total estimated net proceeds to the Company from the offering are expected to be approximately $46.7 million after deducting underwriting discounts and commissions and offering expenses payable by the Company (see Note 11: Subsequent events).
- Segment reporting
The Company hasone reportable segment.
The Company’s Chief Operating Decision Maker (the “CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for the purposes of allocating resources, making operating decisions and evaluating performance. When evaluating the Company’s financial performance, the CODM regularly reviews total expenses by expense category and the CODM makes decisions using this information on a consolidated basis. There are no other measures of profitability used by the CODM, other than those disclosed in these condensed consolidated financial statements.
The table below is a summary of the significant segment expenses (in thousands) provided to the Company’s CODM on a regular basis:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Drug creation programs and platform (1) | $5,290 | $3,862 | $9,295 | $7,491 |
| External preclinical and clinical development (2) | 5,370 | 2,299 | 8,054 | 2,326 |
| Personnel (3) | 10,283 | 9,398 | 20,148 | 19,324 |
| Stock-based compensation | 4,752 | 5,296 | 9,697 | 8,893 |
| General & administrative | 3,291 | 3,752 | 7,628 | 7,553 |
| Depreciation and amortization | 3,000 | 3,384 | 6,072 | 6,800 |
| Total operating expenses | $31,986 | $27,991 | $60,894 | $52,387 |
(1) “Drug creation programs and platform” consists of research and development costs incurred related to the Company’s internally developed programs and drug creation partnership programs for activities prior to the nomination of a development candidate and the continued development of the Company’s Integrated Drug Creation platform.
(2) “External preclinical and clinical development” expense consists of external costs incurred following the Company’s nomination of a development candidate, including all subsequent contract research services, contract manufacturing, consulting fees, and other external costs related to preclinical and clinical development.
(3) “Personnel” expense consists of all employee wages, taxes, benefits, other employee related costs.
- Subsequent events
Subsequent to June 30, 2025, the Company issued and sold 5,108,560 shares of common stock for net proceeds of$14.0 million pursuant to an “at the market offering” program.
On July 28, 2025, the Company sold an aggregate of 16,670,000 shares of its common stock, pursuant to an underwriting agreement with Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Jefferies LLC and TD Securities (USA) LLC at a public offering price of $3.00 per share, before underwriting discounts and commissions. The Company received total net proceeds from the offering of approximately $46.7 million after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.