10-Q
1
d125513d10q.htm
10-Q
10-Q
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2020
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission File Number 001-39267
BENITEC BIOPHARMA INC.
(Exact name of registrant as specified in its charter)
Delaware
84-462-0206
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification No.)
3940 Trust Way, Hayward, California 94545
(Address of principal executive offices & zip code)
(510) 780-0819
(Registrants telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common Stock, par value $0.0001
BNTC
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ☒ No ☐
Indicate by check mark whether the
registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting
company, and emerging growth company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes ☐ or No ☒
We had 4,540,469 shares of
our common stock outstanding as of the close of business on February 4, 2021.
Table of Contents
BENITEC BIOPHARMA INC.
INDEX TO FORM 10-Q
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
2
PART I-FINANCIAL INFORMATION
1
ITEM 1. Financial Statements (unaudited)
Consolidated Balance Sheets as of December 31, 2020 (Unaudited) and June 30, 2020
2
Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended December 31,
2020 and 2019 (Unaudited)
3
Consolidated Statements of Stockholders Equity for each of the Three and Six Months in the Period
Ended December 31, 2020 and 2019 (Unaudited)
4
Consolidated Statements of Cash Flows for the Six Months Ended December
31, 2020 and 2019 (Unaudited)
6
Notes to Consolidated Financial Statements (Unaudited)
7
ITEM
2. Managements Discussion and Analysis of Financial Condition and Results of Operations
22
ITEM
3. Quantitative and Qualitative Disclosures About Market Risk
31
ITEM 4. Controls and Procedures
31
PART II-OTHER INFORMATION
ITEM 1. Legal Proceedings
32
ITEM 1A. Risk Factors
32
ITEM
2. Unregistered Sales of Equity Securities and Use of Proceeds
32
ITEM 3. Defaults Upon Senior Securities
32
ITEM 4. Mine Safety Disclosures
32
ITEM 5. Other Information
32
ITEM 6. Exhibits
33
SIGNATURES
25
Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Report contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control.
All statements, other than statements of historical fact included in this Report, regarding our strategy, future operations, financial position, projected costs, prospects, plans and objectives of management are forward-looking statements. When used
in this Report, the words could, believe, anticipate, intend, estimate, expect, may, continue, predict, potential,
project, or the negative of these terms, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These statements involve known and unknown
risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These
risks, uncertainties and factors include:
the success of our plans to develop and potentially commercialize our product candidates;
the timing of the initiation and completion of preclinical studies and clinical trials;
the timing and sufficiency of patient enrollment and dosing in any future clinical trials;
the timing of the availability of data from clinical trials;
the timing and outcome of regulatory filings and approvals;
unanticipated delays;
sales, marketing, manufacturing and distribution requirements;
market competition and the acceptance of our products in the marketplace;
regulatory developments in the United States of America;
the development of novel AAV vectors;
the plans of licensees of our technology;
the clinical utility and potential attributes and benefits of ddRNAi and our product candidates,
including the potential duration of treatment effects and the potential for a one shot cure;
our dependence on our relationships with collaborators and other third parties;
expenses, ongoing losses, future revenue, capital needs and needs for additional financing;
the length of time over which we expect our cash and cash equivalents to be sufficient to execute on our business
plan;
our intellectual property position and the duration of our patent portfolio;
the impact of local, regional, and national and international economic conditions and events; and
the impact of the current COVID-19 pandemic, the disease caused
by the SARS-CoV-2 virus, which may adversely impact our business and preclinical and future clinical trials;
as well as other risks detailed under the caption Risk Factors in this Report and in other reports filed with the SEC. Although we believe that we
have a reasonable basis for each forward-looking statement contained in this Report, we caution you that these statements are based on a combination of facts and important factors currently known by us and our expectations of the future, about which
we cannot be certain.
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We have based the forward-looking statements included in this Report on information
available to us on the date of this Report or on the date thereof. Except as required by law we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are
advised to consult any additional disclosures that we may make directly to you or through reports that we, in the future, may file with the SEC, including annual reports on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K.
All forward-looking statements included herein or in documents incorporated herein by reference are expressly qualified in their entirety by
the cautionary statements contained or referred to elsewhere in this Report.
Table of Contents
PART I
FINANCIAL INFORMATION
BENITEC BIOPHARMA INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
Consolidated Balance Sheets as of December
31, 2020 (Unaudited) and June 30, 2020
2
Consolidated Statements of
Operations and Comprehensive Loss for the Three and Six Months Ended December 31, 2020 and 2019 (Unaudited)
3
Consolidated Statements of
Stockholders Equity for each of the Three and Six Months in the Period Ended December 31, 2020 and 2019 (Unaudited)
4
Consolidated Statements of Cash Flows for the Six Months Ended December
31, 2020 and 2019 (Unaudited)
6
Notes to Consolidated Financial Statements (Unaudited)
7
1
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BENITEC BIOPHARMA INC.
Consolidated Balance Sheets
(in thousands, except par value and share amounts)
December 31,
June 30,
2020
2020
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
14,010
$
9,801
Trade and other receivables
21
59
Other current assets
352
949
Total current assets
14,383
10,809
Property and equipment, net
610
374
Deposits
9
9
Other assets
210
Right-of-use
assets
300
395
Total assets
$
15,512
$
11,587
Liabilities and Stockholders Equity
Current liabilities:
Trade and other payables
$
355
$
741
Accrued employee benefits
221
203
Lease liabilities, current portion
203
192
Total current liabilities
779
1,136
Lease liabilities, less current portion
108
213
Total liabilities
887
1,349
Commitments and contingencies (Note 13)
Stockholders equity:
Common stock, $0.0001 par value10,000,000 shares authorized; 4,540,469 and 1,108,374 shares
issued and outstanding at December 31, 2020 and June 30, 2020, respectively
4
1
Additional paid-in capital
138,395
128,826
Accumulated deficit
(122,207
)
(116,636
)
Accumulated other comprehensive loss
(1,567
)
(1,953
)
Total stockholders equity
14,625
10,238
Total liabilities and stockholders equity
$
15,512
$
11,587
The accompanying notes are an integral part of these consolidated financial statements.
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BENITEC BIOPHARMA INC.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in
thousands, except share and per share amounts)
Three Months Ended
Six Months Ended
December 31,
December 31,
2020
2019
2020
2019
Revenue:
Revenues from customers
$
1
$
77
$
56
$
110
Total revenues
1
77
56
110
Operating expenses
Royalties and license fees
(19
)
(306
)
114
(280
)
Research and development
1,168
599
1,942
1,022
General and administrative
2,111
1,895
3,948
2,645
Total operating expenses
3,260
2,188
6,004
3,387
Loss from operations
(3,259
)
(2,111
)
(5,948
)
(3,277
)
Other income (loss):
Foreign currency transaction gain (loss)
5
(54
)
5
Interest income (expense), net
(2
)
17
(3
)
35
Other income, net
10
36
Unrealized loss on investment
(1
)
(1
)
(1
)
Total other income (loss), net
7
21
(22
)
40
Net loss
$
(3,252
)
$
(2,090
)
$
(5,970
)
$
(3,237
)
Other comprehensive income:
Unrealized foreign currency translation gain
208
336
386
32
Total other comprehensive income
208
336
386
32
Total comprehensive loss
$
(3,044
)
$
(1,754
)
$
(5,584
)
$
(3,205
)
Net loss
$
(3,252
)
$
(2,090
)
$
(5,970
)
$
(3,237
)
Net loss per share:
Basic and diluted
$
(0.76
)
$
(2.00
)
$
(2.21
)
$
(3.40
)
Weighted average number of shares outstanding: basic and diluted
4,300,073
1,043,431
2,704,223
951,112
The accompanying notes are an integral part of these consolidated financial statements.
3
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BENITEC BIOPHARMA INC.
Consolidated Statements of Stockholders Equity
(Unaudited)
(in
thousands, except share amounts)
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
Stockholders
Equity
Shares
Amount
Balance at June 30, 2019
856,765
$
1
$
127,327
$
(108,870
)
$
(1,864
)
$
16,594
Common stock sold for cash, net of issuance costs of $240
186,666
1,720
1,720
Issuance of pre-purchased warrants, net of issuance costs
of $240
50
50
Share-based compensation
55
55
Forfeiture of share-based payments
(61
)
61
Foreign currency translation loss
(304
)
(304
)
Net loss
(1,147
)
(1,147
)
Balance at September 30, 2019
1,043,431
$
1
$
129,091
$
(109,956
)
$
(2,168
)
$
16,968
Share-based compensation
37
37
Forfeiture of share-based payments
(319
)
319
Foreign currency translation gain
336
336
Net loss
(2,090
)
(2,090
)
Balance at December 31, 2019
1,043,431
$
1
$
128,809
$
(111,727
)
$
(1,832
)
$
15,251
The accompanying notes are an integral part of these consolidated financial statements.
4
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BENITEC BIOPHARMA INC.
Consolidated Statements of Stockholders Equity
(Unaudited)
(in
thousands, except share amounts)
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Total
Stockholders
Equity
Shares
Amount
Balance at June 30, 2020
1,108,374
$
1
$
128,826
$
(116,636
)
$
(1,953
)
$
10,238
Share-based compensation
38
38
Forfeiture of share-based payments
(14
)
14
Foreign currency translation gain
178
178
Net loss
(2,718
)
(2,718
)
Balance at September 30, 2020
1,108,374
$
1
$
128,850
$
(119,340
)
$
(1,775
)
$
7,736
Issuance of common stock and pre-funded warrants sold for
cash, net of issuance costs of $1,643
3,150,514
3
9,848
9,851
Exercise of pre-funded warrants
281,581
Share-based compensation
82
82
Forfeiture of share-based payments
(385
)
385
Foreign currency translation gain
208
208
Net loss
(3,252
)
(3,252
)
Balance at December 31, 2020
4,540,469
$
4
$
138,395
$
(122,207
)
$
(1,567
)
$
14,625
The accompanying notes are an integral part of these consolidated financial statements.
5
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BENITEC BIOPHARMA INC.
Consolidated Statements of Cash Flows
(Unaudited)
(in
thousands)
Six Months Ended
December 31,
2020
2019
Cash flows from operating activities:
Net loss
$
(5,970
)
$
(3,237
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
112
102
Amortization of
right-of-use assets
95
91
Loss on disposal of fixed assets
1
Unrealized (gain) loss on investment
(1
)
1
Share-based compensation expense
120
92
Changes in operating assets and liabilities:
Trade and other receivables
28
1,566
Other assets
424
(150
)
Trade and other payables
(425
)
(2,028
)
Accrued employee benefits
25
11
Lease liabilities
(94
)
(70
)
Net cash used in operating activities
(5,686
)
(3,621
)
Cash flows from investing activities:
Purchases of property and equipment
(347
)
(82
)
Proceeds from disposal of property and equipment
1
Net cash used in investing activities
(347
)
(81
)
Cash flows from financing activities:
Proceeds from issues of shares and pre-funded
warrants
11,494
2,250
Shares and pre-funded warrant issuance costs
(1,643
)
(480
)
Net cash provided by financing activities
9,851
1,770
Effects of exchange rate changes on cash and cash equivalents
391
Net increase (decrease) in cash and cash equivalents
4,209
(1,932
)
Cash and cash equivalents, beginning of period
9,801
15,718
Cash and cash equivalents, end of period
$
14,010
$
13,786
Supplemental disclosure of cash flow information:
Initial measurement of operating lease right-of-use assets and liabilities
$
$
(579
)
The accompanying notes are an integral part of these consolidated financial statements.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
1. Business
Benitec Biopharma Inc. (the Company) is a corporation formed under the laws of Delaware, United States of America, on
November 22, 2019 and listed on the Nasdaq Capital Market (Nasdaq) under the symbol BNTC. Benitec Biopharma Inc. is the parent entity of a number of subsidiaries including the previous parent entity Benitec Biopharma
Limited (BBL). BBL was incorporated under the laws of Australia in 1995 and was listed on the Australian Securities Exchange, or ASX, from 1997 until April 15, 2020. On August 14, 2020, BBL reorganized as a Proprietary Limited
company and changed its name to Benitec Biopharma Proprietary Limited. The Companys business focuses on the development of novel genetic medicines. Our proprietary platform, called DNA-directed RNA
interference, or ddRNAi, combines RNA interference, or RNAi, with gene therapy to create medicines that facilitate sustained silencing of disease-causing genes.
On November 27, 2019, BBL announced its intention to re-domicile from Australia to the United
States of America. BBL implemented a Scheme of Arrangement pursuant to which Benitec Biopharma Inc, a newly incorporated company for the purpose of effecting the re-domiciliation, acquired all BBL shares and
BBL became a wholly-owned subsidiary of Benitec Biopharma Inc.. BBL shareholders received one Benitec Biopharma Inc. share for every 300 BBL shares. Holders of BBLs American Depository Shares, or ADSs (each of which represented 200 ordinary
shares), received two shares of the Companys common stock for every three ADSs held. The re-domiciliation was completed on April 15, 2020 following approval by BBL shareholders at a Scheme Meeting
held on March 26, 2020 and by the Supreme Court of Queensland on March 30, 2020.
In accordance with the U.S. Securities and
Exchange Commissions (SEC) Staff Accounting Bulletin Topic 4C, all issued and outstanding shares of the Companys common stock have been retroactively adjusted in these consolidated financial statements to reflect the 300:1
ratio and share consolidation as if it occurred on July 1, 2019.
The terms the Company, we, us,
our and similar terms used herein refer (i), prior to the re-domiciliation to BBL, an Australian corporation, and its subsidiaries, and (ii), following the
re-domiciliation, to Benitec Biopharma Inc., a Delaware corporation, and its subsidiaries (including BBL).
The Companys fiscal year end is June 30. References to a particular fiscal year are to our fiscal year end June 30 of
that calendar year.
The consolidated financial statements of Benitec Biopharma Inc. are presented in United States dollars and consist of
Benitec Biopharma Inc. and its wholly owned subsidiaries:
Principal place of
business/country
of
incorporation
Ownership
Fiscal Year
2020
Ownership
Fiscal Year
2019
Benitec Biopharma Proprietary Limited (BBL)
Australia
100
%
Benitec Australia Proprietary Limited
Australia
100
%
100
%
Benitec Limited
United Kingdom
100
%
100
%
Benitec, Inc.
USA
100
%
100
%
Benitec LLC
USA
100
%
100
%
RNAi Therapeutics, Inc.
USA
100
%
100
%
Tacere Therapeutics, Inc.
USA
100
%
100
%
The Company is continuing to monitor the impact of the pandemic of the novel strain of coronavirus COVID-19 (COVID-19) on all aspects of its business, including how it will impact our employees, suppliers, vendors and business partners. While the Company did
experience some disruption from COVID-19 including disruption of the timing and completion of certain pre-clinical trials we are unable to predict the overall impact
that COVID-19 will have on our financial position and operating results due to numerous uncertainties.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
2. Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The
Companys consolidated financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the U.S.
(GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information
and disclosures required by GAAP for annual financial statements have been omitted. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Interim
financial results are not necessarily indicative of results anticipated for the full year. These consolidated financial statements should be read in conjunction with the Companys audited financial statements and accompanying notes included in
the Companys Annual Report on Form 10-K for the year ended June 30, 2020.
Reference is
frequently made herein to the Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC). This is the source of authoritative US GAAP recognized by the FASB to be applied to non-governmental entities.
Principles of Consolidation
The consolidated financial statements include the Companys accounts and the accounts of its wholly-owned subsidiaries. All intercompany
transactions and balances have been eliminated.
Use of Estimates
The preparation of the Companys consolidated financial statements requires management to make estimates and assumptions that impact the
reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Companys consolidated financial statements and accompanying notes. The most significant estimates and assumptions in the
Companys consolidated financial statements include the estimates of useful lives of property and equipment, valuation of the operating lease liability and related
right-of-use asset, allowance for uncollectable receivables, valuation of equity based instruments issued for other than cash, the valuation allowance on deferred tax
assets and foreign currency translation due to certain average exchange rates applied in lieu of spot rates on transaction dates. These estimates and assumptions are based on current facts, historical experience and various other factors believed to
be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may
differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Companys future results of operations will be affected.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Segment Reporting
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for
evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment.
Foreign Currency Translation and Other Comprehensive Income (Loss)
The Companys functional currency and reporting currency is the United States dollar. BBLs functional currency is the Australian
dollar (AUD). Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Equity transactions are
translated at each historical transaction date spot rate. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders equity as Accumulated other
comprehensive income (loss). Gains and losses resulting from foreign currency translation are included in the statements of operations and comprehensive income (loss) as other comprehensive income (loss).
Other Comprehensive Income (Loss) for all periods presented includes only foreign currency translation gains (losses).
Fair Value Measurements
The
Company measures its financial assets and liabilities in accordance with US GAAP using ASC 820, Fair Value Measurements. For certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable,
the carrying amounts approximate fair value due to their short maturities.
The Company follows accounting guidance for financial assets
and liabilities. ASC 820 defines fair value, provides guidance for measuring fair value and requires certain disclosures. The guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value
into three broad levels. The following is a brief description of those three levels:
Level 1:
Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:
Inputs, other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in
markets that are not active.
Level 3:
Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use.
The carrying amounts of the Companys cash and cash equivalents, accounts receivables, and accounts
payables are considered to be representative of their respective fair values because of the short-term nature of those instruments. As of December 31, 2020, and June 30, 2020, the Company had no financial assets or liabilities measured at
fair value on a recurring basis.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original maturity of three months or less with
financial institutions, and bank overdrafts. Bank overdrafts are reflected as a current liability on the consolidated balance sheets.
Concentrations of Risk
Financial
instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash. The Company maintains deposits at federally insured financial institutions in excess of federally insured limits. The Company has
not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.
Trade and Other Receivables
As
amounts become uncollectible, they will be charged to an allowance and operations in the period when a determination of collectability is made. Any estimates of potentially uncollectible customer accounts receivable will be made based on an analysis
of individual customer and historical write-off experience. The Companys analysis includes the age of the receivable account, creditworthiness of the customer and general economic conditions.
Property and Equipment
Property
and equipment are stated at cost, net of accumulated depreciation and amortization. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals, and improvements are capitalized. When property and equipment are retired or
otherwise disposed of, the related cost and accumulated depreciation and amortization are removed from the respective accounts, and any gain or loss is included in operations. Depreciation and amortization of property and equipment is calculated
using the straight-line basis over the following estimated useful lives:
Software
3-4 years
Lab equipment
3-7 years
Furniture and fixtures
3-7 years
Computer hardware
3-5 years
Leasehold improvements
shorter of the lease term or estimated useful lives
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Impairment of Long-Lived Assets
Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying
amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the
assets expected future discounted cash flows or market value, if readily determinable.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the period and which are unpaid. Due to
their short-term nature, they are measured at amortized cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
Leases
At lease commencement, the
Company records a lease liability based on the present value of lease payments over the expected lease term. The Company calculates the present value of lease payments using the discount rate implicit in the lease, unless that rate cannot be readily
determined. In that case, the Company uses its incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments over the expected lease term. The
Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to
the lessor prior to the lease commencement date.
After lease commencement, the Company measures its leases as follows: (i) the lease
liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement; and (ii) the right-of-use lease asset
based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives
received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term.
Basic and Diluted Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding
during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding plus potential common shares. Stock options, warrants and convertible instruments are
considered potential common shares and are included in the calculation of diluted net income (loss) per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted net
income (loss) per share when their effect is anti-dilutive. As of December 31, 2020, and 2019, there were 384,676 and 252,516 potential common shares, respectively, that were excluded from the calculation of diluted net income (loss) per share
because their effect was anti-dilutive.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Revenue Recognition
The Company adopted ASC 606 Revenue from Contracts with Customers (ASC 606) on July 1, 2018. The adoption of ASC
606 did not have a material impact on the consolidated financial statements.
Upon adoption of ASC 606, the Company recognizes revenue in
accordance with that core principle by applying the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company applies judgement in determining whether contracts entered into fall within the scope of ASC 606. In doing so, management
considers the commercial substance of the transaction and how risks and benefits of the contract accrue to the various parties to the contract. In determining the accounting treatment of the contract with Axovant, management assessed that the
contract was within the scope of ASC 606.
Management has also made the judgement that the grant of the license and transfer of associated
know-how and materials are accounted for as one performance obligation as they are not considered to be distinct; they are highly interrelated and could not provide benefits to the customer independently from
each other. Judgements were made in relation to the transfer of the license and know-how and whether this should be recognized over time or a point in time. The point in time has been determined with regard to
the point at which the transfer of know-how has substantially been completed and the customer has control of the asset and the ability to direct the use of and receive substantially all of the remaining
benefits.
Licensing revenues
Revenue from licensees of the Companys intellectual property reflects the transfer of a right to use the intellectual property as it
exists at the point in time in which the license is transferred to the customer. Consideration can be variable and is estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable that a
significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognized as or when the performance obligations are satisfied.
The Company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these
amounts as other liabilities in the consolidated balance sheet. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognizes either a contract asset or a receivable in its consolidated
balance sheet, depending on whether something other than the passage of time is required before the consideration is due.
Royalties
Revenue from licensees of the Companys intellectual property reflect a right to use the intellectual property as it exists at
the point in time in which the license is granted. Where consideration is based on sales of product by the licensee, revenue is recognized when the customers subsequent sales of product occurs.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Services revenue
Revenue is earned (constrained by variable considerations) from the provision of research and development services to customers. Services
revenue is recognized when performance obligations are either satisfied over time or at a point in time. Generally, the provision of research and development services under a contract with a customer will represent satisfaction of a performance
obligation over time where the Company retains the right to payment for services performed but not yet completed.
Government Research and
Development Grants
Government grants are recognized at fair value where there is reasonable assurance that the grant will be
received, and all grant conditions will be met. Grants relating to expense items are recognized as income over the periods necessary to match the grant costs they are compensating.
Grant income is generated through the Australian federal governments Research and Development Tax Incentive program, under which the
government provides a cash refund for 43.5% (2019: 43.5%) of eligible research and development expenditures. This grant is available for our research and development activities in Australia, as well as activities in the United States to the extent
such U.S.-based expenses relate to our activities in Australia, do not exceed half the expenses for the relevant activities and are approved by the Australian government. Grants are recorded when a reliable estimate can be made.
The Company will not be claiming the Australian Government research and development grants going forward.
Research and Development Expense
Research and development costs are expensed when incurred. These costs have been recognized as an expense when incurred. Research and
development expenses relate primarily to the cost of conducting clinical and pre-clinical trials. Pre-clinical and clinical development costs are a significant component of research and development expenses.
Estimates have been used in determining the expense liability under certain clinical trial contracts where services have been performed but not yet invoiced. Generally, the costs, and therefore estimates, associated with clinical trial contracts are
based on the number of patients, drug administration cycles, the type of treatment and the outcome being the length of time before actual amounts can be determined will vary depending on length of the patient cycles and the timing of the invoices by
the clinical trial partners.
Equity-based Compensation Expense
The Company records share-based compensation in accordance with ASC 718, Stock Compensation . ASC 718 requires the fair value of all
share-based employee compensation awarded to employees to be recorded as an expense over the shorter of the service period or the vesting period. The Company values employee and non-employee share-based
compensation at fair value using the Black-Scholes Option Pricing Model.
The Company adopted FASB Accounting Standard Update
(ASU) 2018-07 and accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair
value of such awards over the service period.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Income Taxes
The Company is governed by Australia and United States income tax laws. The Company follows ASC 740 Accounting for Income Taxes , when
accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial
statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized.
For
uncertain tax positions that meet a more likely than not threshold, the Company recognizes the benefit of uncertain tax positions in the consolidated financial statements. The Companys practice is to recognize interest and
penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of operations.
Recent Accounting
Pronouncements
In June 2016, the FASB issued ASU No. 2016-13: Financial
Instruments Credit Losses (Topic 326). This ASU represents a significant change in the accounting for credit losses model by requiring immediate recognition of managements estimates of current expected credit losses (CECL). Under
the prior model, losses were recognized only as they were incurred. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The Company has determined that it has met the criteria of a smaller
reporting company (SRC) as of November 15, 2019. As such, ASU 2019-10: Financial Instruments-Credit Losses, Derivatives and Hedging, and Leases: Effective Dates amended the effective
date for the Company to be for reporting periods beginning after December 15, 2022. The Company will adopt this ASU effective July 1, 2023.
3. Going Concern
The accompanying
consolidated financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ended December 31, 2020, and 2019, the Company incurred a net loss of $6.0 million
and $3.2 million and used net cash of $5.7 million and $3.6 million in operations, respectively. The Company expects to continue to incur additional operating losses in the foreseeable future.
As of December 31, 2020, the Company had $14 million in cash and cash equivalents. The Company has performed a review of the cash
flow forecasts and believes that the current funding will be sufficient for a period of at least twelve months from the date of this report.
The Companys ability to continue as a going concern is dependent upon its ability to generate revenue and obtain adequate financing.
While the Company believes in its ability to generate revenue and raise additional funds, there can be no assurances to that effect. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern due to unsuccessful product development or commercialization, or the inability to obtain
adequate financing in the future.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
4. Revenue (US$000)
Three Months Ended
Six Months Ended
Revenues from customers
December 31,
2020
December 31,
2019
December 31,
2020
December 31,
2019
Licensing revenue
$
1
$
61
$
56
$
61
Royalty revenue
16
45
Service revenue*
4
Total
$
1
$
77
$
56
$
110
*
On July 9, 2018, the Company entered into a License and Collaboration Agreement with Axovant. The
agreement granted Axovant an exclusive worldwide license to develop, manufacture, and commercialize products containing the Companys product BB-301, which was designed for the potential treatment of
Oculopharyngeal Muscular Dystrophy. Licensing revenue consists of the Companys intellectual property related to BB-301 and the transfer of the right to use the intellectual property of the Companys
BB-301 license to Axovant. Service revenue consists of payments for services provided to Axovant during the term of the license agreement signed in July 2018. On June 6, 2019, we announced the termination
of the agreement with Axovant. The termination of the agreement was effective as of September 3, 2019. The termination discharges all future performance obligations at termination date under the contract.
Three Months Ended December 31, 2020
Disaggregated revenue (US$000)
Licensing
Royalties
Development activities
Total
Services transferred at a point in time
$
$
$
$
Services transferred over time
1
1
Total
$
1
$
$
$
1
Six Months Ended December 31, 2020
Disaggregated revenue (US$000)
Licensing
Royalties
Development activities
Total
Services transferred at a point in time
$
$
$
$
Services transferred over time
56
56
Total
$
56
$
$
$
56
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Three Months Ended December 31, 2019
Disaggregated revenue (US$000)
Licensing
Royalties
Development activities
Total
Services transferred at a point in time
$
$
$
$
Services transferred over time
61
16
77
Total
$
61
$
16
$
$
77
Six Months Ended December 31, 2019
Disaggregated revenue (US$000)
Licensing
Royalties
Development activities
Total
Services transferred at a point in time
$
$
$
4
$
4
Services transferred over time
61
45
106
Total
$
61
$
45
$
4
$
110
5. Cash and Cash equivalents
(US$000)
December 31,
2020
June 30,
2020
Cash at Bank
$
14,010
$
5,231
Term Deposit
4,570
Total
$
14,010
$
9,801
6. Trade and other receivables
(US$000)
December 31,
2020
June 30,
2020
Other receivables
$
21
$
59
Total
$
21
$
59
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
7. Other assets
(US$000)
December 31,
2020
June 30,
2020
Prepaid expenses
$
538
$
861
Security deposit
16
69
Other deposit
7
18
Market value of listed shares
1
1
Total other assets
562
949
Less: non-current portion
(210
)
Current portion
$
352
$
949
8. Property and equipment, net
(US$000)
December 31,
2020
June 30,
2020
Software
$
11
$
11
Lab equipment
1,457
1,109
Computer hardware
26
26
Leasehold improvements
24
24
Total property and equipment, gross
1,518
1,170
Accumulated depreciation and amortization
(908
)
(796
)
Total property and equipment, net
$
610
$
374
Depreciation expense was $67,000 and $112,000 for the three months and six months ended December 31,
2020, respectively, and $51,000 and $102,000, respectively, for the same periods in 2019.
9. Trade and other payables
(US$000)
December 31,
2020
June 30,
2020
Trade payable
$
87
$
282
Accrued license fees
142
54
Accrued professional fees
35
155
Other payables
91
250
Total
$
355
$
741
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
10. Leases
The Company has entered into an operating lease for office space under an agreement that expires in 2022. The lease requires the Company to pay
utilities, insurance, taxes and other operating expenses. The Companys lease does not contain any residual value guarantees or material restrictive covenants.
As of December 31, 2020, the Companys operating lease has a remaining lease term of 1.45 years and a discount rate of 4.67%. The
maturities of the operating lease liabilities are as follows:
(US$000)
December 31, 2020
2021
$
105
2022
218
Total operating lease payments
323
Less imputed interest
(12
)
Present value of operating lease liabilities
$
311
The Company recorded lease liabilities and
right-of-use lease assets for the lease based on the present value of lease payments over the expected lease term, discounted using the Companys incremental
borrowing rate. Rent expense was $52,000 and $104,000 for the three months and six months ended December 31, 2020, respectively, and $52,000 and $104,000, respectively, for the same periods in 2019.
11. Stockholders equity
Common
Stock
On October 6, 2020, the Company announced the closing of an underwritten public offering of 2,666,644 shares of its common
stock at a price to the public of $3.10 per share. The Company also announced that the underwriter fully exercised its over-allotment option to purchase 483,870 additional shares of its common stock at the offering price of $3.10 per share.
Warrants
On
October 6, 2020, the Company announced the closing of an underwritten public offering of 559,162 shares of common stock underlying pre-funded warrants initially purchased for $3.09 per share and
immediately exercisable at $0.01 per share (Pre-Funded Warrants). Of the 559,162 Pre-Funded Warrants issued, 281,581
Pre-Funded Warrants had been exercised as of December 31, 2020. The remaining Pre-Funded Warrants may be exercised at any time from issuance.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
The activity related to warrants during for the three and six months ended December 31,
2020, is summarized as follows:
Common Stock
from Warrants
Weighted-
average
Exercise Price
(per share)
Outstanding at July 1, 2020
145,421
$
29.48
Granted
Exercised
Forfeited
(38,326
)
82.50
Outstanding and exercisable at September 30, 2020
107,095
$
10.50
Granted
559,162
3.09
Exercised
(281,581
)
3.10
Forfeited
Outstanding and exercisable at December 31, 2020
384,676
$
5.15
Equity Incentive Plan
Employee Share Option Plan
Upon the re-domiciliation, the Company assumed BBLs obligations with respect to the settlement of
options that were issued by BBL prior to the re-domiciliation pursuant to the Benitec Officers and Employees Share Option Plan (the Share Option Plan). This includes the Companys
assumption of the Share Option Plan and all award agreements pursuant to which each of the options were granted. Each option when exercised entitles the option holder to one share in the Company. Options are exercisable on or before an expiry date,
do not carry any voting or dividend rights and are not transferable except on death of the option holder or in certain other limited circumstances. Employee options vest one third on each anniversary of the applicable grant date for three years. If
an employee dies, retires or otherwise leaves the Company and certain exercise conditions have been satisfied, generally, the employee has 12 months to exercise their options or the options are cancelled. After the
re-domiciliation, no new options have been or will be issued under the Share Option Plan.
Equity and Incentive Compensation Plan
On December 9, 2020, the Companys stockholders approved the Companys 2020 Equity and Incentive Compensation Plan (the
2020 Plan). The 2020 Plan provides for the grant of various equity awards. Currently, only stock options are outstanding under the 2020 Plan. Each option when exercised entitles the option holder to one share of the Companys common
stock. Options are exercisable on or before an expiry date, do not carry any voting or dividend rights, and are not transferable except on death of the option holder or in certain other limited circumstances. Employee stock options vest in
increments of one-third on each anniversary of the applicable grant date for three years. Non-employee director options vest in increments of one-third on the day prior to each of the Companys next three annual stockholder meetings following the grant date. If an option holder dies or terminates employment or service due to Disability (as defined in
the 2020 Plan) and certain exercise conditions have been satisfied, generally, the option holder has 12 months to exercise their options or the options are cancelled. If an option holder otherwise leaves the Company, other than for a termination by
the Company for Cause (as defined in the 2020 Plan) and certain exercise conditions have been satisfied, generally, the option holder has 90 days to exercise their options or the options are cancelled. Any future equity grants will be made under the
2020 Plan.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Equity Awards
The activity related to equity awards, which comprised of stock options during the three and six months ended December 31,
2020, is summarized as follows:
Stock
Options
Weighted-
average
Exercise
Price
Weighted-average
Remaining
Contractual Term
Aggregate
Intrinsic Value
Outstanding at June 30, 2020
70,161
$
60.42
2.89 years
$
Granted
Exercised
Forfeited
(444
)
69.32
Outstanding at September 30, 2020
69,717
$
60.00
2.65 years
Exercisable at September 30, 2020
43,273
$
68.53
2.26 years
$
Granted
525,546
2.98
9.95 years
Exercised
Forfeited
(7,967
)
153.78
Outstanding at December 31, 2020
587,296
7.64
9.2 years
Exercisable at December 31, 2020
35,473
$
48.18
2.4 years
$
Share-Based Compensation Expense
The classification of share-based compensation expense is summarized as follows:
Three Months Ended
December 31,
Six Months Ended
December 31,
(US$000)
2020
2019
2020
2019
Research and development
$
6
$
17
$
15
$
General and administrative
76
20
105
92
Total share-based compensation expense
$
82
$
37
$
120
$
92
As of December 31, 2020, there was $1,393,000 of unrecognized share-based compensation expense related to
stock options issued under the Share Option Plan and the 2020 Plan.
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BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
12. Income taxes
For the three and six months ended December 31, 2020, and 2019, the Company did not recognize a provision or benefit for income taxes as
it has incurred net losses. In addition, the net deferred tax assets generated from net operating losses are fully offset by a valuation allowance as the Company believes it is more likely than not that the benefit will not be realized.
13. Commitments and contingencies
Contract commitments
The
Company enters into contracts in the normal course of business with third-party contract research organizations, contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for
termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments.
Contingencies
From time
to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation.
21
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Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion and analysis of financial condition and operating results together with our consolidated financial statements and
the related notes and other financial information included elsewhere in this document.
Overview
We endeavor to become the leader in discovery, development, and commercialization of therapeutic agents capable of addressing significant unmet
medical needs via the application of the silence and replace approach to the treatment of genetic disorders.
Benitec Biopharma Inc.
(Benitec or the Company or in the third person, we or our) is a development-stage biotechnology company focused on the advancement of novel genetic medicines with headquarters in Hayward,
California. The proprietary platform, called DNA-directed RNA interference, or ddRNAi, combines RNA interference, or RNAi, with gene therapy to create medicines that facilitate sustained silencing of
disease-causing genes following a single administration. The Company is developing ddRNAi-based therapeutics for chronic and life-threatening human conditions including Oculopharyngeal Muscular Dystrophy (OPMD), and Chronic Hepatitis B.
BB-301 is the most advanced ddRNAi-based genetic medicine currently under development by Benitec. BB-301 is an internally optimized, AAV-based gene therapy agent that is designed to both silence the expression of mutated, disease-causing genes
(to slow, or halt, the underlying mechanism of disease progression) and replace the mutant genes with normal, wild type genes (to drive restoration of function in diseased cells). This fundamental approach to disease management is
called silence and replace and this biological mechanism offers the potential to restore the underlying physiology of the treated tissues and, in the process, improve treatment outcomes for patients suffering from the chronic and,
potentially, fatal effects of Oculopharyngeal Muscular Dystrophy (OPMD). BB-301 has been granted Orphan Drug Designation in the United States and the European Union.
Through the combination of the targeted gene silencing effects of RNAi and the durable transgene expression achievable via the use of modified
viral vectors, the silence and replace approach has the potential to produce long-term silencing of disease-causing genes along with simultaneous replacement of wild type gene function following a single administration of the proprietary genetic
medicine. We believe this novel attribute of the investigational agents under development by Benitec may facilitate the achievement of robust clinical activity while greatly reducing the dosing frequencies traditionally expected for medicines
employed for the management of chronic diseases. Additionally, the establishment of chronic gene silencing and gene replacement may significantly reduce the risk of patient non-compliance during
the course of medical management of potentially fatal clinical disorders.
Unless otherwise indicated, all dollar amounts in this section
are provided in thousands.
Re-domiciliation
On April 15, 2020, (the Implementation Date), the re-domiciliation of
Benitec Limited (the Re-domiciliation), a public company incorporated under the laws of the State of Western Australia, or Benitec Limited, was completed in accordance with the Scheme
Implementation Agreement, as amended and restated as of January 30, 2020, between Benitec Limited and us. As a result of the Re-domiciliation, the jurisdiction of incorporation was changed from
Australia to Delaware, and Benitec Limited became our wholly owned subsidiary.
The Re-domiciliation was effected pursuant to a statutory scheme of arrangement under
Australian law, or the Scheme, whereby on the Implementation Date, all of the issued and outstanding ordinary shares of Benitec Limited were exchanged for newly issued shares of our common stock, on the basis of one share of our common stock, par
value $0.0001 per share, for every 300 ordinary shares of Benitec Limited issued and outstanding. Holders of Benitec Limiteds American Depository Shares, or ADSs (each of which represented 200 ordinary shares), received two shares of our
common stock for every three ADSs held.
COVID-19
In December 2019, an outbreak of a novel strain of coronavirus was identified in Wuhan, China. This virus continues to spread globally, has
been declared a pandemic by the World Health Organization and has spread to nearly every country, including Australia and the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society,
which has resulted in and will likely continue to result in significant disruptions to businesses and capital markets around the world. The extent to which the coronavirus impacts us will depend on future developments, which are highly uncertain and
cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others.
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Certain of our research and development efforts are conducted globally, including the
ongoing development of our silence and replace therapeutic for the treatment of Oculopharyngeal Muscular Dystrophy (OPMD), and will be dependent upon our ability to initiate preclinical and clinical studies despite the
ongoing COVID-19 pandemic. As we continue to actively advance our preclinical programs, including our ongoing tissue transduction studies
for BB-301, we are in close contact with our principal investigators and preclinical trial sites, which are primarily located in the France, and are assessing the impact of COVID-19 on our studies and the expected development timelines and costs of all of our product candidates, on an ongoing basis. In light of recent developments relating to
the COVID-19 global pandemic, the focus of healthcare providers and hospitals on fighting the virus, and consistent with the FDAs updated industry guidance for conducting clinical trials issued
on March 18, 2020, we have experienced delays to the original timeline regarding the initiation and anticipated completion of the
ongoing BB-301 IND-enabling development work. The initiation of the BB-301 tissue transduction study,
which represents a key component of the IND-enabling work, was delayed by several months, however, the study has been recently initiated and the dosing of the initial preclinical cohorts has
proceeded without incident. We will continue to evaluate the impact of the COVID-19 pandemic on our business and expect to reevaluate the timing of our anticipated preclinical and clinical milestones
as we learn more and the impact of COVID-19 on our industry becomes more clear.
We had
also implemented work-from-home measures for some of our employees between March 2020 and December 2020, resulting in a reduction of laboratory work and a halt of non-essential business travel. As we
transition our employees back to our premises, there is a risk that COVID-19 infections occur at our offices or laboratory facilities and significantly affect our operations. Additionally, if any of
our critical vendors are impacted, our business could be affected if we become unable to timely procure essential equipment, supplies or services in adequate quantities and at acceptable prices.
Axovant Termination
Benitecs
License and Collaboration Agreement, dated July 9, 2018, with Axovant Sciences GmbH, or Axovant, was terminated as of September 3, 2019. As a result, all rights and licenses which Benitec had granted to Axovant to develop and commercialize BB-301 and related gene therapy product candidates terminated.
Prior to such
termination, the Benitec team endeavored to conduct several additional exploratory nonclinical analyses in order to potentially improve the biological efficacy of BB-301 via
further optimization of the route of administration employed to dose the target muscle tissues.
Nonclinical data derived
from in vivo evaluations of BB-301 in two distinct large animal species suggested the existence of an opportunity to further improve the biological efficacy of the compound via
additional optimization of the proprietary delivery method employed to dose key target tissues that underlie the morbidity and mortality associated with the natural history of OPMD. The initial biological efficacy profile observed for BB-301 following in vivo testing in the A17 mouse model of OPMD, including full correction of the disease phenotype, remained unchanged. However, the Benitec management team
desired to complete a series of exploratory analyses prior to the formal IND filing and the subsequent initiation of clinical testing.
Completion of the experimental work noted above would have delayed the initiation of
the BB-301 clinical study beyond the timelines that were initially outlined by Axovant following the execution of the License and Collaboration Agreement between Benitec and Axovant. As such,
Axovant elected to terminate the License and Collaboration Agreement between Benitec and Axovant, and all rights and licenses granted to Axovant terminated, including the rights to BB-301, which
was in preclinical development for the treatment of OPMD, and all other early stage research collaboration programs that were governed by the agreement.
Nonclinical Programs
Nonclinical
research efforts supporting the development of ddRNAi-based therapeutic agents and silence and replace-based therapeutic agents targeting the treatment of Chronic Hepatitis B Virus Infection (HBV) and
Age-Related Macular Degeneration (AMD) have concluded and are no longer being continued by the Company.
Workforce Reduction
On July 31,
2019, Benitec announced the completion of a workforce reduction of approximately 50%. Through this streamlining of operations, the Company retained staff members who are key to the achievement of the core research and development goals. The
rationalization of resources was deemed to be supportive of an extended financial runway for the Company while allowing Benitec to continue to advance the BB-301 program.
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Royalties, milestone payments and other license fees
We are required to pay royalties, milestone payments and other license fees in connection with our licensing of intellectual property from
third parties, including as discussed below.
In December 2016, we entered into an exclusive sublicense agreement with NantWorks, LLC,
pursuant to which we agreed to make certain milestone and royalty payments, as well as periodic payments for so long as the agreement remained in effect. In December of 2018, the Company accrued a milestone payment of USD 300k (AUD 425,411), which
was anticipated to be paid to NantWorks, LLC under the sublicense agreement. It was later determined that the milestone was not required to be paid and, therefore, the accrual was reversed in December of 2019. We terminated the exclusive sublicense
agreement for convenience, with the termination effective as of June 2020.
We have collaborated with Biomics Biotechnologies Co., Ltd.,
or Biomics, pursuant to several collaboration agreements in relation to single-stranded RNA and shRNA sequences for treatment of hepatitis B. In July 2015, we entered into an earn-out agreement with
Biomics which confirmed Benitecs ownership of certain patents resulting from the collaboration in exchange for an upfront payment and equity issuance to Biomics and a share of certain future licensing revenue received by Benitec.
Foreign Currency Translation and Other Comprehensive Income (Loss)
The Companys functional currency and reporting currency is the United States dollar. BBLs functional currency is the Australian
dollar (AUD). Assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Equity transactions are
translated at each historical transaction date spot rate. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders equity as Accumulated other
comprehensive income (loss). Gains and losses resulting from foreign currency translation are included in the statements of operations and comprehensive income (loss) as other comprehensive income (loss).
Other comprehensive income (loss) for all periods presented includes only foreign currency translation gains (losses).
October 2020 Capital Raise
On
October 6, 2020, the Company announced the closing of an underwritten public offering of common stock and common stock equivalents (the October 2020 Capital Raise). The Company received gross proceeds of approximately
$11.5 million and net proceeds of approximately $9.9 million from the offering.
Results of Operations
Revenues
In the past Benitec
Limited has generated revenue from its operations through two activities: revenue from customers and revenue from government research and development grants. In the fiscal year ended June 30, 2020 and the six months ended December 31,
2020, the Company generated funds primarily from capital raising activities. For the three-month period ended December 31, 2020, the Company received $1 in revenue relating to licensing fees. The Company has not generated any revenues from the
sales of products. Revenues from licensing fees are included in the revenue from customers line item on our statements of operations and comprehensive income (loss). There were no Research and Development Tax Incentive payments received during this
period.
Our licensing fees have been generated through the licensing of our ddRNAi technology to biopharmaceutical companies, and in the
fiscal year-ended June 30, 2019, revenue was generated through a License and Collaboration Agreement with Axovant Sciences (the Axovant Agreement).
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The following table sets forth a summary of our revenues for each of the periods set forth
below:
Three Months Ended
December 31,
Six Months Ended
December 31,
2020
2019
2020
2019
(US$000)
Revenues:
Revenues from customers
$
1
$
77
$
56
$
110
Total revenues
$
1
$
77
$
56
$
110
Revenues from customers
On July 9, 2018, the Company entered into the Axovant Agreement. The Axovant Agreement granted Axovant Sciences an exclusive worldwide
license to develop, manufacture, and commercialize products containing the Companys product known as BB-301, which was designed for the potential treatment of Oculopharyngeal Muscular
Dystrophy. Service revenue consists of payments for services provided to Axovant Sciences pursuant to the Axovant Agreement. On June 6, 2019, the termination of the Axovant Agreement was announced. The termination of the Axovant Agreement was
effective as of September 3, 2019. The termination discharges all future performance obligations under the contract at the termination date.
During the three and six months ended December 31, 2020, respectively, the Company recognized $1 and $56 in customer revenues, as
compared to $77 and $110 for the comparable periods ended December 31, 2019. The decrease in revenues from customers is due to the decrease in licensing and royalty revenues in the current period.
Research and Development Expenses
Research and development expenses relate primarily to the cost of conducting clinical and pre-clinical
trials. Pre-clinical and clinical development costs are a significant component of research and development expenses. Estimates have been used in determining the expense liability under certain clinical trial
contracts where services have been performed but not yet invoiced. Generally, the costs, and therefore estimates, associated with clinical trial contracts are based on the number of patients, drug administration cycles, the type of treatment and the
outcome being the length of time before actual amounts can be determined will vary depending on length of the patient cycles and the timing of the invoices by the clinical trial partners.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries, related benefits, travel, and equity-based compensation expense. General and
administrative expenses also include facility expenses, professional fees for legal, consulting, accounting and audit services and other related costs.
We anticipate that our general and administrative expenses may increase as the Company focuses on the continued development of the pre-clinical OPMD program. The Company also anticipates an increase in expenses relating to accounting, legal and regulatory-related services associated with maintaining compliance with exchange listing and SEC
requirements, director and officer insurance premiums and other costs associated with being a domestic public company after the Re-domiciliation and no longer a foreign private issuer under SEC
rules.
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Operating Expenses
The following tables set forth a summary of our expenses for each of the periods set forth below:
Three Months Ended
December 31,
Six Months Ended
December 31,
2020
2019
2020
2019
(US$000)
Operating Expenses:
Royalties and license fees
$
(19
)
$
(306
)
$
114
$
(280
)
Research and development
1,168
599
1,942
1,022
General and administrative
2,111
1,895
3,948
2,645
Total operating expenses
$
3,260
$
2,188
$
6,004
$
3,387
During the three and six months ended December 31, 2020, respectively, we incurred ($19) and $114 in
royalties and license fees, as compared to ($306) and ($280) for the comparable periods ended December 31, 2019. The change is due to a reversal of an accrual which created the negative balance in the three and six months ended 2019. In the
three months ended December 2020 we also reversed an accrual, resulting in the balance of ($19) as opposed to the six month balance which included a payable license fee.
During the three and six months ended December 31, 2020, we incurred $1,168 and $1,942 in research and development expenses, as compared
to $599 and $1,022 for the comparable periods ended December 31, 2019. The increase in research and development expenses are related to the pre-clinical trials associated with BB-301.
General and administrative expense was $2,111 and $3,948 for the three and six months ended
December 31, 2020 and 2019, respectively, as compared to $1,895 and $2,645 for the comparable periods ended December 31, 2019. This increase was due to the increase in insurance, consultants, legal and accounting fees.
Other Income (Expense)
The
following tables set forth a summary of our other income (loss) for each of the periods set forth below:
Three Months Ended
December 31,
Six Months Ended
December 31,
2020
2019
2020
2019
(US$000)
Other Income (Loss):
Foreign currency transaction gain (loss)
$
$
5
$
(54
)
$
5
Interest income (expense), net
(2
)
17
(3
)
35
Other income, net
10
36
Unrealized loss on investment
(1
)
(1
)
(1
)
Total other income (loss), net
$
7
$
21
$
(22
)
$
40
The other income (loss), net during the three and six months ended December 31, 2020, respectively,
totaled $7 and ($22), which consists of foreign currency transaction loss, interest expense, other income, and unrealized loss on investment. During the three and six months ended December 31, 2019, respectively, other income, net totaled $21
and $40. Foreign currency transaction gain has decreased due to a change in foreign exchange rates. Interest income (expense), net has decreased due to fewer transactions with interest. Other income, net increased due
to COVID-19 stimulus incentives from the Australian government. Unrealized loss on investment remained unchanged for the three months ended December 31, 2020, compared to the three months ended
December 31, 2019.
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Net Loss
The following tables set forth a summary of our loss for each of the periods set forth below:
Three Months Ended
December 31,
Six Months Ended
December 31,
2020
2019
2020
2019
(US$000)
Net Loss
$
(3,252
)
$
(2,090
)
$
(5,970
)
$
(3,237
)
As a result of the changes in revenues and expenses noted above, our net loss increased from approximately
$2,090 and $3,237 in the three and six months ended December 31, 2019, respectively, to $3,252 and $5,970 in the three and six months ended December 31, 2020.
Liquidity and Capital Resources
The
Company has incurred cumulative losses and negative cash flows from operations since our predecessors inception in 1995. The Company had accumulated losses of $122.2 million as of December 31, 2020. We expect that our research and
development expenses may increase due to the continued development of the OPMD program. It is also likely that there will be an increase in the general and administrative expenses due to the obligations of being a domestic public company in the
United States as a result of the Re-domiciliation and no longer a foreign private issuer under SEC Rules.
We had no borrowings for the three months ended December 31, 2020 and 2019 and do not currently have a credit facility.
As of December 31, 2020, we had cash and cash equivalents of approximately $14 million. Cash in excess of immediate requirements is
invested in accordance with our investment policy, primarily with a view to liquidity and capital preservation. Currently, our cash and cash equivalents are held in bank accounts.
The following table sets forth a summary of the net cash flow activity for each of the periods set forth below:
Six Months Ended
December 31,
2020
2019
(US$000)
Net cash provided by (used in):
Operating activities
$
(5,686
)
$
(3,621
)
Investing activities
(347
)
(81
)
Financing activities
9,851
1,770
Effects of exchange rate changes on cash and cash equivalents
391
Net increase (decrease) in cash
$
4,209
$
(1,932
)
Operating activities
Net cash used in operating activities for the six months ended December 31, 2020 and 2019 was $5,686 and $3,621, respectively. Net cash
used in operating activities was primarily the result of our net loss and change in working capital and a decrease in payables.
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Investing activities
Net cash used in investing activities for the six months ended December 31, 2020 was $347. Net cash used in investing activities for the
six months ended December 31, 2019 was $81. The change was primarily related to an increase in purchases of equipment in 2020 compared to the same period in 2019.
Financing activities
Net cash provided
by financing activities was $9,851 and $1,770 for the six months ended December 31, 2020 and 2019, respectively. Cash from financing activities related to the issuance of common stock, including $11,494 in gross proceeds from the October 2020
Capital Raise, partially offset by $1,643 in share issuance costs for the period ended December 31, 2020. For the same period in 2019, cash from financing activities related to the issuance of common stock of BBL, including gross proceeds of
$2,250 from a public offering, partially offset by $480 in share issuance costs.
The future of the Company as an operating business will
depend on its ability to generate revenues mostly from licensing, strategic alliances and collaboration arrangements with pharmaceutical companies. While we continue to progress discussions and advance opportunities to engage with pharmaceutical
companies and continue to seek licensing partners for ddRNAi in disease areas that are not our focus, there can be no assurance as to whether we will enter into such arrangements or what the terms of any such arrangement could be.
While we have established some licensing arrangements, we do not have any products approved for sale and have not generated any revenue from
product sales. We do not know when, or if, we will generate any revenue from product sales. We do not expect to generate significant revenue from product sales unless and until we obtain regulatory approval of and commercialize one of our current or
future product candidates.
Unless and until we establish significant revenues from licensing programs, strategic alliances or
collaboration arrangements with pharmaceutical companies, or from product sales, we anticipate that we will continue to generate losses for the foreseeable future, and we expect the losses to increase as we continue the development of product
candidates and begin to prepare to commercialize any product that receives regulatory approval. We are subject to the risks inherent in the development of new gene therapy products, and we may encounter unforeseen expenses, difficulties,
complications, delays and other unknown factors that may adversely affect our business. We estimate that our cash and cash equivalents will be sufficient to fund the Companys operations at least for the next twelve months.
We have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our
available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating
capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:
the timing and costs of our planned clinical trials for our ddRNAi and silence and replace product candidates;
the timing and costs of our planned preclinical studies for our ddRNAi and silence and replace product
candidates;
the number and characteristics of product candidates that we pursue;
the outcome, timing and costs of seeking regulatory approvals;
revenue received from commercial sales of any of our product candidates that may receive regulatory approval;
the terms and timing of any future collaborations, licensing, consulting or other arrangements that we may
establish;
the amount and timing of any payments we may be required to make, or that we may receive, in connection with the
licensing, filing, prosecution, defense and enforcement of any patents or other intellectual property rights;
the costs of preparing, filing and prosecuting patent applications, maintaining and protecting our intellectual
property rights and defending against intellectual property related claims; and
the extent to which we need to in-license or acquire other
products and technologies.
Contractual Obligations and Commercial Commitments
On July 9, 2018, the Company entered into an Agreement with Axovant Sciences. The Agreement granted Axovant Sciences an exclusive
worldwide license to develop, manufacture, and commercialize products containing the Companys product known as BB-301, which was designed for the potential treatment of Oculopharyngeal Muscular
Dystrophy. On June 6, 2019, the termination of the Agreement with Axovant Sciences was announced. The termination of the Agreement was effective as of September 3, 2019. The termination discharges all future performance obligations at
termination date under the contract.
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On October 1, 2016, the Company entered into an operating lease for office space in
Hayward , California that originally expired in April 2018. The Company has entered into lease amendments that extend the lease commitment through June 2022.
The Company enters into contracts in the normal course of business with third-party contract research organizations, contract development and
manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments.
Off-Balance Sheet Arrangements
The Company had no material off-balance sheet arrangements as of December 31, 2020.
Critical Accounting Policies and Significant Accounting Estimates
The preparation of consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the
United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported. Note 2 of the Notes to Consolidated Financial Statements included in this Quarterly Report on Form 10-Q describes the significant accounting policies used in the preparation of the consolidated financial statements. Certain of these significant accounting policies are considered to be critical accounting
policies.
A critical accounting policy is defined as one that is both material to the presentation of the Companys consolidated
financial statements and requires management to make difficult, subjective or complex judgments that could have a material effect on the Companys financial condition or results of operations. Specifically, these policies have the following
attributes: (1) the Company is required to make assumptions about matters that are highly uncertain at the time of the estimate; and (2) different estimates the Company could reasonably have used, or changes in the estimate that are
reasonably likely to occur, would have a material effect on the Companys financial condition or results of operations.
Estimates
and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances.
These estimates may change as new events occur, as additional information is obtained and as the Companys operating environment changes. These changes have historically been minor and have been included in the consolidated financial statements
as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. These uncertainties are discussed in the section
above entitled Risk Factors. Based on a critical assessment of its accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes that the Companys consolidated
financial statements are fairly stated in accordance with accounting principles generally accepted in the United States of America,and provide a meaningful presentation of the Companys financial condition and results of operations.
Management believes that the following are critical accounting policies:
Revenue Recognition
The Company
adopted and implemented on July 1, 2018, ASC 606 Revenue from Contracts with Customers (ASC 606). ASC 606 did not have a material impact on the consolidated financial statements.
Upon implementation of ASC 606, the Company recognizes revenue in accordance with that core principle by applying the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company applies judgement in determining whether contracts entered into fall within the scope of ASC 606. In doing so, management
considers the commercial substance of the transaction and how risks and benefits of the contract accrue to the various parties to the contract. In determining the accounting treatment of the contract with Axovant, management assessed that the
contract was within the scope of ASC 606.
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Management has also made the judgement that the grant of the license and transfer of associated know-how and materials are accounted for as one performance obligation as they are not considered to be distinct; they are highly interrelated and could not provide benefits to the customer
independently from each other. Judgements were made in relation to the transfer of the license and know-how and whether this should be recognized over time or a point in time. The point in time has
been determined with regard to the point at which the transfer of know-how has substantially been completed and the customer has control of the asset and the ability to direct the use of and receive
substantially all of the remaining benefits.
Licensing revenues
Revenue from licensees of the Companys intellectual property reflects the transfer of a right to use the intellectual property as it
exists at the point in time in which the license is transferred to the customer. Consideration can be variable and is estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable that a
significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognized as or when the performance obligations are satisfied.
The Company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these
amounts as other liabilities in the consolidated balance sheet. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognizes either a contract asset or a receivable in its consolidated
balance sheet, depending on whether something other than the passage of time is required before the consideration is due.
Royalties
Revenue from licensees of the Companys intellectual property reflect a right to use the intellectual property as it exists at the point
in time in which the license is granted. Where consideration is based on sales of product by the licensee, revenue is recognized when the customers subsequent sales of product occurs.
Services revenue
Revenue is earned
(constrained by variable considerations) from the provision of research and development services to customers. Services revenue is recognized when performance obligations are either satisfied over time or at a point in time. Generally, the provision
of research and development services under a contract with a customer will represent satisfaction of a performance obligation over time where the Company retains the right to payment for services performed but not yet completed.
Share-Based Compensation
The
Company records share-based compensation in accordance with ASC 718, Stock Compensation . ASC 718 requires the fair value of all share-based employee compensation awarded to employees to be recorded as an expense over the
shorter of the service period or the vesting period. The Company values employee and non-employee share-based compensation at fair value using the Black-Scholes Option Pricing Model.
The Company adopted ASU 2018-07 and accounts
for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair value of such awards over the service period.
Recent Accounting Pronouncements
Accounting
Standards recently adopted
None.
New
Accounting Standards and Interpretations not yet mandatory or early adopted
ASU 2016-13 In June 2016, the FASB issued
ASU No. 2016-13: Financial InstrumentsCredit Losses (Topic 326). This ASU represents a significant change in the accounting for credit losses model by requiring
immediate recognition of managements estimates of current expected credit losses (CECL). Under the prior model, losses were recognized only as they were incurred. This guidance is effective for interim and annual reporting periods beginning
after December 15, 2019. The Company has determined that it has met the criteria of a smaller reporting company (SRC) as of November 15, 2019. As such,
ASU 2019-10: Financial Instruments-Credit Losses, Derivatives and Hedging, and Leases: Effective Dates amended the effective date for the Company to be for reporting
periods beginning after December 15, 2022. The Company will adopt this ASU effective July 1, 2023.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
As a smaller reporting company, we are not required to provide the information pursuant to this Item.
Item 4. Controls and Procedures
We have established disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). As of the end of the period covered by this report we carried out an evaluation under the supervision and with the participation of our management,
including our principal executive officer and principal financial and accounting officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15
of the Securities and Exchange Act of 1934, as amended. Based upon that evaluation, our principal executive officer and principal financial and accounting officer concluded that our disclosure controls and procedures are effective.
There were no changes in our internal controls over financial reporting during the quarter ended December 31, 2020 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.
We do not expect that our
disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control
system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems,
no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.
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PART II
OTHER INFORMATION
Item 1. Legal Proceedings
We are currently not a party to any legal proceedings.
Item 1A. Risk Factors
There have been no material changes to the risk factors disclosed in Item 1A of the Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2020.
Item 2. Unregistered Sales of
Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4.
Mine Safety Disclosures
None.
Item 5. Other Information
None.
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Item 6. Exhibits.
Number
Description of Document
4.1
Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.2 to the Companys amended Form
S-1 filed on October 1, 2020 (File No. 333-246314))
10.1
Benitec Biopharma Inc. 2020 Equity and Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Companys Form 8-K filed on December 14, 2020 )
10.2
Form of Evidence of Award of Option Right Pursuant to the Benitec Biopharma Inc. 2020 Equity and Incentive Compensation Plan (Executives) (incorporated
by reference to Exhibit 10.1 to the Companys Form 8-K filed on December 15, 2020)
10.3
Form of Evidence of Award of Option Right Pursuant to the Benitec Biopharma Inc. 2020 Equity and Incentive Compensation Plan (Non-Employee Directors) (incorporated by reference to Exhibit 10.2 to the Companys Form 8-K filed on December 15, 2020)
31.1
Statement of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2
Statement of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1
Statement of CEO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2
Statement of CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101.INS
XBRL Instance Document*
101.SCH
XBRL Taxonomy Extension Schema Document*
101.CAL
XBRL Calculation Linkbase Document*
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB
XBRL Label Linkbase Document*
101.PRE
XBRL Taxonomy Presentation Linkbase Document*
*
Filed herewith.
**
Furnished, not filed.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on our behalf by
the undersigned thereunto duly authorized.
Benitec Biopharma Inc.
Dated: February 9, 2021
/s/ Megan Boston
Megan Boston
Executive Director (principal financial and accounting officer)
/s/ Jerel Banks
Jerel Banks
President and Chief Executive Officer
(principal executive officer)
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.