Company: IOBT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047744
Chunk: 257

Company: IO Biotech, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 257
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 offerings, debt financings or other capital sources, including collaborations, licenses or similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed or on favorable terms, if at all. Any failure to raise capital as and when needed could have a negative impact on our financial condition and on our ability to pursue our business plans and strategies, including our research and development activities. If we are unable to raise capital, we will need to delay, reduce or terminate planned activities to reduce costs.   

Components of Operating Results 

Operating Expenses 

Our operating expenses since inception have consisted primarily of research and development expenses and general and administrative costs. 

Research and Development 

Our research and development expenses consist primarily of costs incurred for the development of our product candidates and our drug discovery efforts, which include: 

•personnel costs, which include salaries, benefits and equity-based compensation expense; 

•expenses incurred under agreements with outside consultants and advisors, including their fees and related travel expenses; 

•expenses incurred under agreements with third parties, including CROs that conduct research, preclinical activities and clinical trials on our behalf as well as CMOs that manufacture our product candidates for use in our preclinical and clinical trials and perform chemistry, manufacturing and control activities; 

•laboratory and vendor expenses related to the execution of preclinical studies and planned and ongoing clinical trials; 

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•expenses related to research conducted by institutions, universities and hospitals as part of collaborations; 

•filing and maintenance of patents and intellectual property rights, including payment to third parties for assignment of patent rights and licensing fees and milestone payments incurred under product license agreements where no alternative future use exists; 

•laboratory supplies and equipment used for internal research and development activities; and 

•facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. 

We expense all research and development costs in the periods in which they are incurred. Costs for certain research and development activities are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and third-party service providers. 

From time to time, we obtain grants from public and private funds for our research and development projects. The grant income for a given period is recognized as a cost reimbursement and is typically based on the time and the costs that we have spent on the specific project during that period. 

We have historically met the requirements to receive a tax credit in Denmark of up to 5