Item 5. Market for Registrant’s Common Equity
Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information for Common Stock
Our common stock has been publicly traded on the Nasdaq Global Select Market under the symbol “ARQT” since the commencement of our IPO on January 31, 2020. Prior to that time there was no public market for our common stock.
Holders
As of February 16, 2022, there were approximately 21 holders of record of our common stock. The actual number of stockholders is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include stockholders whose shares may be held in trust by other entities.
Recent Sales of Unregistered Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
None.
Dividend Policy
We have never declared or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any cash dividends on our common stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our board of directors may deem relevant.
Securities Authorized for Issuance under Equity Compensation Plans
The information required by this item with respect to our equity compensation plans is incorporated by reference to our definitive proxy statement relating to our 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates, or the Proxy Statement.
87
Table of Contents
Index to Financial Statements
Stock Performance Graph
The graph below shows a comparison, from January 31, 2020 (the date our common stock commenced trading on Nasdaq) through December 31, 2021, of the cumulative total return to stockholders of our common stock relative to the Nasdaq Composite Index (“^IXIC”) and the Nasdaq Biotechnology Index (“^NBI”). The graph assumes that $100 was invested in each of our common stock, the Nasdaq Composite and the Nasdaq Biotechnology at their respective closing prices on January 31, 2020 and assumes reinvestment of gross dividends. The stock price performance shown in the graph represents past performance and should not be considered an indication of future stock price performance. This graph shall not be deemed “soliciting material” or be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any of our filings under the Securities Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.
Cumulative Total Return Comparison
1/31/2020
(Inception) 6/30/2020 12/31/2020 6/30/2021 12/31/2021
Arcutis Biotherapeutics, Inc. $100.00 $138.72 $129.04 $125.18 $95.14
Nasdaq Composite Index $100.00 $109.92 $140.84 $158.50 $172.02
Nasdaq Biotechnology Index $100.00 $120.23 $133.14 $144.02 $133.45
88
Table of Contents
Index to Financial Statements
Item 6. SELECTED FINANCIAL DATA
The following tables set forth our selected statements of operations and balance sheet data. The selected statements of operations data for the years ended December 31, 2021, 2020 and 2019, and the selected balance sheet data as of December 31, 2021, 2020, and 2019, are derived from our audited financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K, which financial statements have been audited by our independent registered public accounting firm. The following selected financial data below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes included elsewhere in this Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected in any future period. The selected financial data in this section are not intended to replace the financial statements and are qualified in their entirety by the financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
Year Ended December 31,
2021 2020 2019
(in thousands, except share and per share data)
Statements of operations data:
Operating expenses:
Research and development
$ 145,558 $ 115,308 $ 36,522
General and administrative
60,971 21,337 6,610
Total operating expenses
$ 206,529 $ 136,645 $ 43,132
Loss from operations
(206,529) (136,645) (43,132)
Other income, net 173 967 1,136
Net loss
$ (206,356) $ (135,678) $ (41,996)
Net loss per share, basic and diluted (1)
$ (4.18) $ (3.80) $ (22.78)
Weighted-average shares used in computing net loss per share, basic and diluted (1)
49,405,575 35,668,152 1,843,213
______________
(1) See Notes 2 and 12 to our audited financial statements included elsewhere in this Annual Report on Form 10-K for a description of how we compute basic and diluted net loss per share and the weighted-average number of shares used in the computation of these per share amounts.
December 31,
2021 2020 2019
(in thousands)
Balance sheet data:
Cash, cash equivalents, restricted cash and marketable securities $ 388,601 $ 285,983 $ 101,265
Working capital (1)
369,447 270,224 101,237
Total assets 408,152 298,269 107,012
Convertible preferred stock — — 166,491
Long-term debt, net 72,350 — —
Accumulated deficit (408,306) (201,950) (66,272)
Total stockholders’ equity (deficit) 297,677 270,621 (65,029)
______________
(1) We define working capital as current assets less current liabilities. See our financial statements and related notes for further details regarding our current assets and current liabilities.
89
Table of Contents
Index to Financial Statements