Company Overview

Vaxart Biosciences, Inc. is a clinical-stage biotechnology company primarily focused on the development of oral recombinant vaccines based on its Vector-Adjuvant-Antigen Standardized Technology (VAAST) proprietary oral vaccine platform. The company is developing prophylactic vaccine candidates that target a range of infectious diseases, including norovirus, coronavirus (including SARS-CoV-2), and influenza. Vaxart has also generated preclinical data for its first therapeutic vaccine candidate targeting cervical cancer and dysplasia caused by human papillomavirus (HPV). The company’s oral vaccines are designed to generate broad and durable immune responses that may protect against a wide range of infectious diseases and may be useful for the treatment of chronic viral infections and cancer.

Financial Operations Overview

Revenue

Vaxart’s revenue comes from three main sources:

1. Non-Cash Royalty Revenue Related to Sale of Future Royalties: In 2016, the company sold certain royalty rights related to the drug Inavir in the Japanese market for $20 million. Vaxart continues to record non-cash royalty revenue as the royalties are paid to the buyer, HealthCare Royalty Partners III, L.P.

2. Revenue from Government Contracts: In 2024, Vaxart was awarded two government contracts - the 2024 ASPR-BARDA Contract and the 2024 ATI-RRPV Contract - to support clinical development of its vaccine candidates. Revenue from these contracts totaled $24.9 million in 2024.

3. Grant Revenue: In 2022, Vaxart received a $3.5 million grant from the Bill & Melinda Gates Foundation, which was fully recognized as revenue in 2023.

Research and Development Expenses

Vaxart’s research and development expenses primarily consist of costs related to employee salaries and benefits, agreements with contract research organizations (CROs) and contract manufacturing organizations (CMOs), materials and supplies for preclinical studies and clinical trials, and other overhead expenses. The company does not allocate internal R&D expenses to specific programs, but tracks external costs for each of its vaccine programs.

General and Administrative Expense

General and administrative expenses include personnel costs, insurance, rent, and expenses for outside professional services such as legal, accounting, and consulting.

Results of Operations

Vaxart’s total revenue increased significantly in 2024 to $28.7 million, up from $7.4 million in 2023, driven by revenue from the new government contracts. Operating expenses also increased 5% to $95.0 million in 2024, primarily due to higher R&D costs related to the company’s COVID-19 vaccine program.

The company’s net loss decreased 19% to $66.9 million in 2024 compared to $82.5 million in 2023, as the increase in revenue partially offset the rise in operating expenses.

Table: Key Financial Metrics

Metric	2024	2023	% Change
Total Revenue	$28,700	$7,379	289%
Operating Expenses	$94,993	$90,726	5%
Operating Loss	$(66,293)	$(83,347)	-20%
Net Loss	$(66,948)	$(82,465)	-19%

Liquidity and Capital Resources

Vaxart’s primary sources of financing have been public stock offerings, government contracts, and the sale of future royalties. As of December 31, 2024, the company had $51.7 million in cash, cash equivalents, and short-term investments.

The company expects to need to raise additional capital to fund its ongoing operations and vaccine development activities. Vaxart may seek funding through partnerships, collaborations, or the sale of additional equity. However, the company’s ability to continue as a going concern is uncertain, and it may need to further reduce expenses if it is unable to raise sufficient additional capital.

Outlook

Vaxart faces several key risks and uncertainties going forward, including:

• The ability to successfully advance its vaccine candidates through clinical trials and obtain regulatory approvals
• The availability of funding to support its research and development activities
• The outcome of the 2024 ATI-RRPV Contract, which was recently paused by the government
• Competition from other vaccine developers, including those with more advanced products

If the company is able to overcome these challenges, it believes its proprietary oral vaccine platform has the potential to provide an important new tool in the fight against infectious diseases and cancer. However, significant uncertainty remains around Vaxart’s long-term prospects and ability to achieve sustainable profitability.