Company: IOBT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0000950170-25-047744
Chunk: 118

Company: IO Biotech, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 118
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-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities.     

Based upon our current operating plan, we believe that our existing cash and cash equivalents of $60.0 million as of December 31, 2024, will be sufficient to continue funding our development activities into the second quarter of 2026 assuming draw down of the first three committed tranches of the EIB loan facility. We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. To finance our operations beyond that point we will need to raise additional capital, which, though we were successful in raising additional capital through the Private Placement and the EIB Loan Facility, cannot be assured and which we may not be able to pursue successfully again in the future.  

To date, we have not had any products approved for sale and, therefore, have not generated any product revenue. We do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates. If we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution, and associated regulatory and compliance costs. As a result, until such time, if ever, that we can generate substantial product revenue, we expect to finance our cash needs through equity 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