UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission File Number: 001-38905

NextCure, Inc.

(Exact name of registrant as specified in its charter)

Delaware	47-5231247
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9000 Virginia Manor Road, Suite 200 Beltsville, Maryland	20705
(Address of principal executive offices)	(Zip Code)

(240) 399-4900

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, $0.001 par value per share	NXTC	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 30, 2024, the registrant had 27,973,289 shares of common stock, par value $0.001 per share, issued and outstanding.

Table of Contents

NextCure, Inc.

Form 10-Q

For the Quarter Ended March 31, 2024

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Unaudited Condensed Balance Sheets as of March 31, 2024 and December 31, 2023	1
	Unaudited Condensed Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2024 and 2023	2
	Unaudited Condensed Statements of Stockholders’ Equity for the Three Months Ended March 31, 2024 and 2023	3
	Unaudited Condensed Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
Item 4.	Controls and Procedures	22
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
SIGNATURES		25

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NEXTCURE, INC.

CONDENSED BALANCE SHEETS

(unaudited, in thousands, except share and per share amounts)


	March 31,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	18,358	$	13,082
Marketable securities		77,643		95,217
Prepaid expenses and other current assets		6,551		4,426
Total current assets		102,552		112,725
Property and equipment, net		7,097		9,033
Right of use assets		3,632		4,398
Other assets		1,878		1,882
Total assets	$	115,159	$	128,038
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,491	$	2,330
Accrued liabilities and other liabilities		5,092		4,553
Total current liabilities		9,583		6,883
Lease liabilities, long term		5,773		5,949
Other long-term liabilities		755		785
Total liabilities		16,111		13,617
Stockholders’ equity:
Preferred stock, par value of $0.001 per share; 10,000,000 shares authorized at March 31, 2024 and December 31, 2023; No shares issued and outstanding at March 31, 2024 and December 31, 2023		—		—
Common stock, par value of $0.001 per share; 100,000,000 shares authorized at March 31, 2024 and December 31, 2023; 27,903,627 and 27,903,027 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively		28		28
Additional paid-in capital		440,791		439,097
Accumulated other comprehensive loss		(182)		(222)
Accumulated deficit		(341,589)		(324,482)
Total stockholders’ equity		99,048		114,421
Total liabilities and stockholders’ equity	$	115,159	$	128,038

The accompanying notes are an integral part of these unaudited condensed financial statements.

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NEXTCURE, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited, in thousands, except share and per share amounts)


	Three Months Ended
	March 31,
	2024		2023
Operating expenses:
Research and development	$	11,398	$	11,647
General and administrative		4,364		5,424
Restructuring and asset impairment charges		2,542		—
Total operating expenses		18,304		17,071
Loss from operations		(18,304)		(17,071)
Other income, net		1,197		975
Net loss	$	(17,107)	$	(16,096)
Net loss per common share - basic and diluted	$	(0.61)	$	(0.58)
Weighted-average shares outstanding - basic and diluted		27,903,040		27,774,536
Comprehensive loss:
Net loss	$	(17,107)	$	(16,096)
Unrealized gain on marketable securities		40		691
Total comprehensive loss	$	(17,067)	$	(15,405)

The accompanying notes are an integral part of these unaudited condensed financial statements.

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NEXTCURE, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited, in thousands, except share data)


	Three Months Ended March 31, 2024

	Stockholders’ Equity
				Additional		Accumulated Other
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		Loss		Deficit		Equity
Balance as of December 31, 2023	27,903,027	$	28	$	439,097	$	(222)	$	(324,482)	$	114,421
Stock-based compensation	—		—		1,693		—		—		1,693
Exercise of stock options	600		—		1		—		—		1
Unrealized loss on marketable securities, net of tax	—		—		—		40		—		40
Net loss	—		—		—		—		(17,107)		(17,107)
Balance as of March 31, 2024	27,903,627	$	28	$	440,791	$	(182)	$	(341,589)	$	99,048


	Three Months Ended March 31, 2023

	Stockholders’ Equity
				Additional		Accumulated Other
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		(Loss) Income		Deficit		Equity
Balance as of December 31, 2022	27,774,536	$	28	$	430,755	$	(1,494)	$	(261,759)	$	167,530
Stock-based compensation	—		—		2,078		—		—		2,078
Unrealized gain on marketable securities, net of tax	—		—		—		691		—		691
Net loss	—		—		—		—		(16,096)		(16,096)
Balance as of March 31, 2023	27,774,536	$	28	$	432,833	$	(803)	$	(277,855)	$	154,203

The accompanying notes are an integral part of these unaudited condensed financial statements.

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NEXTCURE, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Three Months Ended
	March 31,
	2024		2023
Cash flows from operating activities:
Net loss	$	(17,107)	$	(16,096)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		790		960
Amortization of premiums and discounts on marketable securities		(304)		82
Stock-based compensation		1,693		2,078
Asset impairment		1,787		—
Noncash operating lease expense		150		150
Changes in operating assets and liabilities:
Prepaid expenses and other assets		(2,109)		1,089
Accounts payable		2,161		(2,351)
Accrued liabilities and other liabilities		539		(551)
Lease liabilities		(176)		(113)
Other long-term liabilities		(30)		(27)
Net cash used in operating activities		(12,606)		(14,779)
Cash flows from investing activities:
Sales and maturities of marketable securities		29,055		49,773
Purchases of marketable securities		(11,137)		(31,403)
Purchases of property and equipment		(37)		(248)
Net cash provided by investing activities		17,881		18,122
Cash flows from financing activities:
Proceeds from exercise of stock options		1		—
Net cash provided by financing activities		1		—
Net increase in cash and cash equivalents		5,276		3,343
Cash and cash equivalents – beginning of period		13,082		26,630
Cash and cash equivalents – end of period	$	18,358	$	29,973
Supplemental disclosures of cash flow information:
Cash paid for interest	$	19	$	21

The accompanying notes are an integral part of these unaudited condensed financial statements.

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NEXTCURE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(unaudited)

1. Nature of the Business

Organization

NextCure, Inc. (“NextCure” or the “Company”) was incorporated in Delaware in September 2015 and is headquartered in Beltsville, Maryland. The Company is a clinical-stage biopharmaceutical company focused on advancing innovative medicines that treat cancer patients that do not respond to, or have disease progression on, current therapies, through the use of differentiated mechanisms of actions including antibody-drug conjugates, antibodies and proteins. We focus on advancing therapies that leverage our core strengths in understanding biological pathways and biomarkers, the interactions of cells, including in the tumor microenvironment, and the role each interaction plays in a biologic response. Since inception, the Company has devoted substantially all of its efforts and financial resources to discovery, research and development activities for the Company’s product candidates, identifying business development opportunities, raising capital and securing intellectual property rights related to the Company’s product candidates.

Liquidity

The Company has not generated any revenue to date from product sales and does not expect to generate any revenues from product sales in the foreseeable future. Through March 31, 2024, the Company has funded its operations primarily with proceeds from public offerings of its common stock, private placements of its preferred stock and upfront fees received under the Company’s former agreement with Eli Lilly and Company, which was terminated in March 2020. The Company expects to incur additional operating losses and negative operating cash flows for the foreseeable future.

As of March 31, 2024, the Company had cash, cash equivalents and marketable securities of $96.0 million. The Company believes that its existing cash, cash equivalents and marketable securities will be sufficient to fund its planned operations for at least the next twelve months from the issuance of these financial statements.

2. Summary of Significant Accounting Policies

The following significant accounting policies are in addition to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”).

Restructuring Charges

The Company recognizes restructuring charges related to reorganization plans that have been implemented by management. In connection with these activities, the Company records restructuring charges at fair value for:

•

contractual or other employee termination benefits provided that the obligations result from services already rendered based on rights that vested or accumulate when the payment of benefits becomes probable and the amount can be reasonably estimated;

•

one-time employee termination benefits to the employees provided that management has committed to a plan of termination, the plan identifies the employees and their expected termination dates, the details of termination benefits are complete, and it is unlikely that changes to the plan will be made or the plan will be withdrawn;

•

contract termination costs when the Company cancels a contract in accordance with its terms; and

•

costs to be incurred over the remaining contract term without economic benefit to the Company at the cease-use date.

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NEXTCURE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(unaudited)

For one-time employee terminations benefits, the Company recognizes the liability in full on the communication date when future services are not required or amortizes the liability ratably over the service period, if required. The fair value of termination benefits reflects the Company’s estimate of expected utilization of certain Company-funded post-employment benefits.

Long-Lived Asset Impairment Assessments

Long-lived assets, including operating lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to future net cash flows estimated by the Company to be generated by such assets. If such asset group is considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the asset group exceeds the fair value of the asset group.

Basis of Presentation

The unaudited condensed financial statements include the accounts of the Company and have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto in the Annual Report.

Unaudited Financial Information

In the opinion of management, the information furnished reflects certain adjustments, all which are of a normal and recurring nature and are necessary for a fair presentation of the Company’s financial position as of the reported balance sheet date and of the Company’s results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities as of the date of the condensed financial statements, and the reported amounts of revenues and expenses during the reporting periods. Although actual results could differ from those estimates, management does not believe that such differences would be material.

Recently Issued Accounting Pronouncements

The Company qualifies as an emerging growth company (“EGC”) as defined under the Jumpstart Our Business Startups Act (the “JOBS Act”). Using exemptions provided under the JOBS Act provided to EGCs, the Company has elected to defer compliance with new or revised financial accounting standards until it is required to comply with such standards, which is generally consistent with required adoption dates of private companies.

The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). All other ASUs issued subsequent to the filing of the Company’s Annual Report were assessed and determined to be either inapplicable or not expected to have a material impact on the Company’s financial position or results of operations.

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NEXTCURE, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(unaudited)

3. Marketable Securities

Marketable securities consist of the following:


	March 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	62,716	$	—	$	(151)	$	62,565
U.S. Treasury and Government agencies		15,109		—		(31)		15,078
Total	$	77,825	$	—	$	(182)	$	77,643


	December 31, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
(in thousands)	Cost		Gain		Loss		Fair Value
Corporate bonds	$	73,334	$	36	$	(210)	$	73,160
U.S. Treasury and Government agencies		22,105		5		(53)		22,057
Total	$	95,439	$	41	$	(263)	$	95,217

The Company uses the specific identification method when calculating realized gains and losses. For the three months ended March 31, 2024 and 2023, respectively, the Company recorded $0 and $0 in realized gains or losses on available-for-sale securities.

The Company reviewed all investments which were in a loss position at the respective balance sheet dates, as well as the remainder of the portfolio. As of March 31, 2024, the Company had investments with a total fair market value of $77.6 million in an unrealized loss position, of which $7.0 million were in a continuous unrealized loss position for more than twelve months. The Company analyzed the unrealized losses and determined that the prevailing high interest rates were the primary factor driving these changes, and such unrealized losses are temporary as the Company anticipates a full recovery of the amortized cost basis of these securities at maturity. After analyzing the securities in an unrealized loss position, the portion of these losses that relates to changes in credit quality is insignificant. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell them prior to the end of their contractual terms. Furthermore, the Company does not believe that these securities expose the Company to undue market risk or counterparty credit risk.

The following table summarizes maturities of the Company’s investments available-for-sale as of March 31, 2024:

March 31, 2024

(in thousands)

SEC Form 10-Q filed by NextCure Inc.