Company: MLTX
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001821586-25-000018
Chunk: 131

Company: MoonLake Immunotherapeutics
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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 capitalizing such interest payments as payment-in-kind (“PIK”). No PIK interest relating to the term loan has been recorded and included in the condensed consolidated balance sheets as of June 30, 2025. 

All obligations under the Loan and Security Agreement will be secured on a first-priority basis, subject to certain exceptions, by security interests in substantially all of our assets and our material subsidiaries, including our intellectual property, and will be guaranteed by our material subsidiaries, including foreign subsidiaries, subject to certain exceptions. 

The Loan and Security Agreement contains customary covenants, such as financial covenants and certain events of default after which loans under the Credit Facility may be due and payable immediately. The Company was in compliance with all covenants as of June 30, 2025. 

We are permitted to use the proceeds of the Credit Facility for working capital and general corporate purposes of the Company and our subsidiaries. 

Cash Flows

The following table summarizes our cash flows for the periods indicated.

Six Months Ended(in thousands)    June 30, 2025June 30, 2024Net cash used in operating activities$(92,670)$(42,838)Net cash provided by (used in) investing activities144,500(116,547)Net cash provided by financing activities73,12250,978Effect of movements in exchange rates on cash held1,30329Net increase (decrease) in cash and cash equivalents$126,255 $(108,378)

Cash Flows from Operating Activities

We did not generate any cash inflows from our operating activities. Our cash flows from operating activities are significantly influenced by our use of cash for operating expenses and working capital requirements, and we have historically experienced negative cash flows from operating activities as we invested in clinical research and related development.

Net cash used in operating activities was $92.7 million and $42.8 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The increase of net cash used in operating activities of $49.9 million was primarily driven by the increase in net loss of $57.9 million, an increase in cash paid for changes in accrued expenses and other current liabilities of $2.3 million, and an increase in cash paid for changes in other non-current assets of $1.7 million. The increases were partially offset by a decrease in cash paid for changes in prepaid expenses of $5.4 million, and an increase in cash from changes