Executive Summary

Completed enrollment in the bempikibart alopecia areata Phase 2 trial; AD Phase 2 enrollment remains on track, with topline data from both studies expected in Q4 2024 .
Reported Q1 2024 net income of $1.03 million driven by a $15.9 million gain on conversion of convertible notes; no collaboration revenue in the quarter; cash, cash equivalents and short-term investments were $135.3 million, with runway guided into mid-2026 .
Advanced ADX-097 with the renal basket Phase 2 trial initiation on track for 1H 2024 and the AAV Phase 2 initiation in 1H 2025; topline results from both expected in 2H 2025 and initial renal basket data by year-end 2024 .
Strategic catalysts ahead: Q4 2024 Phase 2 readouts in AD and AA; strengthened leadership and board post-merger and $42 million private placement to support execution .

What Went Well and What Went Wrong

What Went Well

Completed AA Phase 2 enrollment; AD Phase 2 enrollment is on track, positioning two near-term clinical catalysts: “Bempikibart is progressing in the ongoing Phase 2 clinical trials in AD and AA, with topline data from each expected to be released in the fourth quarter of 2024” — Jodie Morrison, CEO .
Strengthened balance sheet and liquidity post-merger: $135.3 million in cash, cash equivalents and short‑term investments, supporting runway “into mid‑2026” .
ADX‑097 program advancing: renal basket Phase 2 initiation in 1H 2024; AAV Phase 2 initiation in 1H 2025; topline results for both in 2H 2025; initial renal basket data by end‑2024 .

What Went Wrong

Revenue headwind: collaboration arrangement revenue decreased to $0 from $2.947 million year over year in Q1 2023 .
Operating expenses increased as programs advanced and public-company transition costs hit: R&D rose to $9.8 million (+$1.9 million YoY) and G&A rose to $5.0 million (+$2.6 million YoY), including merger-related costs .
Underlying operations were loss-making: loss from operations was $(14.843) million; positive net income reflected a non-operating fair value gain on convertible notes, rather than core profitability .

Financial Results

Income Statement and EPS

Metric	Q1 2023	Q1 2024
Collaboration arrangement revenue ($USD Millions)	$2.947	$0.000
Research & development expense ($USD Millions)	$7.910	$9.841
General & administrative expense ($USD Millions)	$2.410	$5.002
Total operating expenses ($USD Millions)	$10.320	$14.843
Loss from operations ($USD Millions)	$(7.373)	$(14.843)
Change in fair value of convertible notes ($USD Millions)	$(0.043)	$15.890
Other income (expense), net ($USD Millions)	$0.578	$0.158
Total other income (expense), net ($USD Millions)	$0.535	$16.048
Income (loss) before taxes ($USD Millions)	$(6.838)	$1.205
Loss from equity method investment ($USD Millions)	—	$(0.176)
Net income (loss) ($USD Millions)	$(6.838)	$1.029
EPS – Basic ($USD)	$(19.84)	$1.03
EPS – Diluted ($USD)	$(19.84)	$(6.33)
Weighted-average shares – Basic (Millions)	0.345	0.995
Weighted-average shares – Diluted (Millions)	0.345	2.334

Notes: Q1 2024 positive net income was primarily due to a $15.9 million non-operating gain on conversion of convertible notes; operating loss persisted .

Margins vs Prior Periods and Estimates

Metric	Q1 2023	Q1 2024	vs Estimates
Net Income Margin %	(232.1%)	N/A (no revenue)	Unavailable (S&P Global consensus not retrievable for FIXX)

Balance Sheet Snapshot

Metric	Dec 31 2023	Mar 31 2024
Cash, cash equivalents & short-term investments ($USD Millions)	$25.617	$135.312
Total assets ($USD Millions)	$47.057	$152.334
Accounts payable, accrued & other current liabilities ($USD Millions)	$13.231	$24.785
CVR liability ($USD Millions)	—	$5.080
Venture debt ($USD Millions)	$5.459	$12.488
Convertible notes ($USD Millions)	$38.595	$—
Other noncurrent liabilities ($USD Millions)	$55.000	$55.113
Convertible preferred stock ($USD Millions)	$111.445	$—
Stockholders’ equity (deficit) ($USD Millions)	$(182.921)	$48.769

KPIs (Operating and Liquidity)

KPI	Q1 2023	Q1 2024
R&D spend ($USD Millions)	$7.910	$9.841
G&A spend ($USD Millions)	$2.410	$5.002
Cash runway (management view)	—	Into mid‑2026

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Bempikibart AA Phase 2 topline	Q4 2024	Enrollment ongoing	Enrollment completed; topline in Q4 2024	Maintained timeline (execution milestone achieved)
Bempikibart AD Phase 2 topline	Q4 2024	Part A complete (blinded); Part B enrollment ongoing	Topline in Q4 2024	Maintained timeline
ADX‑097 renal basket Phase 2 initiation	1H 2024	Planned	Commence in 1H 2024	Maintained
ADX‑097 AAV Phase 2 initiation	1H 2025	Planned	Commence in 1H 2025	Maintained
ADX‑097 topline results (renal basket & AAV)	2H 2025	Planned	Topline in 2H 2025	Maintained
ADX‑097 initial renal basket data	2024 YE	Not previously detailed	Initial open‑label renal basket data by year‑end 2024	New timing detail
Cash runway	Through mid‑2026	Not previously as public company	Runway into mid‑2026	New public guidance

No revenue, margin, OpEx, OI&E, or tax-rate financial guidance ranges were provided in filings for Q1 2024 .

Earnings Call Themes & Trends

Note: No public earnings call transcript was furnished for Q1 2024 in SEC filings; themes reflect management’s press release and 8‑K commentary .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period	Trend
AD & AA program execution	Private company pre‑merger; no public call narrative	AA enrollment completed; AD enrollment on track; Q4 2024 topline for both	Strengthening execution; timelines maintained
Complement platform (ADX‑097)	Private company pre‑merger; no public call narrative	1H 2024 renal basket start; 1H 2025 AAV start; 2H 2025 toplines; initial renal data YE 2024	Program advancement; added specificity
Capital & runway	Private company pre‑merger; no public call narrative	$135.3m cash/investments; runway into mid‑2026	Enhanced liquidity post‑merger
Leadership/Board	Private company pre‑merger; no public call narrative	New CFO/President; expanded Board (industry veterans)	Strengthened governance and leadership
Corporate structure	Private company pre‑merger	Reverse merger closed; $42m private placement; Nasdaq listing	Transition to public company complete

Management Commentary

“The first quarter of 2024 was transformational… Bempikibart is progressing in the ongoing Phase 2 clinical trials in AD and AA, with topline data from each expected to be released in the fourth quarter of 2024.” — Jodie Morrison, Chief Executive Officer .
“ADX‑097… we remain on track to initiate our renal basket clinical trial in the first half of this year… and… a Phase 2 clinical trial in AAV next year, with topline results from both trials in the second half of 2025… initial renal basket data expected by end of 2024.” — Jodie Morrison .
“With our pipeline momentum… and strong financial foundation following our merger close and concurrent financing, we are well positioned as a newly public company.” — Jodie Morrison .

Q&A Highlights

No earnings call transcript was furnished in the company’s SEC filings for Q1 2024; therefore, no Q&A disclosures are available in the document set .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable for FIXX due to missing SPGI/CIQ mapping; attempted retrieval returned no data. As a result, estimate comparisons cannot be made for this quarter.

Key Takeaways for Investors

Near‑term clinical catalysts: Q4 2024 topline data for both bempikibart AD and AA Phase 2 trials; initial renal basket data for ADX‑097 by year‑end 2024 .
Liquidity and runway: $135.3 million in cash/investments and runway guided into mid‑2026 reduce near‑term financing risk .
Operating spend is rising as programs advance and public company costs accrue; monitor R&D and G&A trajectory relative to milestones .
Reported profitability in Q1 reflects a non‑recurring fair value gain on convertible notes; core operations remain loss‑making, so sustainability depends on clinical progress and potential partnerships .
Corporate transition complete: reverse merger and $42 million private placement strengthen platform and public market access .
ADX‑097 timelines provide a multi‑year catalyst path (1H 2024 start; 1H 2025 AAV start; 2H 2025 toplines), diversifying beyond bempikibart .
Trading implications: Expect stock sensitivity to AD/AA Phase 2 topline outcomes and any interim renal basket data disclosures; maintain awareness of dilution risk if timelines slip despite current runway .

Citations:

Q32 Bio Inc. (FIXX)·Q1 2024 Earnings Summary