Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
Our common stock trades on the Nasdaq Global Select Market under the symbol “EDIT.” Trading of our common stock commenced on February 3, 2016 in connection with our initial public offering. Prior to that time, there was no established public trading market for our common stock.
Holders
As of February 14, 2021, we had approximately 18 holders of record of our common stock. This number does not include beneficial owners whose shares were held in street name.
Dividend Policy
We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings to fund the development and growth of our business. We do not expect to pay any cash dividends in the foreseeable future. In addition, the terms of any future debt agreements that we may enter into may preclude us from paying dividends without the lenders’ consent or at all.
Performance Graph
The following performance graph and related information shall not be deemed to be “soliciting material” or to be “filed” with the SEC for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall such information be incorporated by reference into any future filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent that we specifically incorporate it by reference into such filing.
The following graph compares the performance of our common stock to The Nasdaq Composite Index and to The Nasdaq Biotechnology Index from February 3, 2016 (the first date on which shares of our common stock were publicly traded) through December 31, 2020. The comparison assumes $100 was invested after the market closed on February 3, 2016 in our common stock and in each of the foregoing indices, and it assumes reinvestment of dividends, if any. The stock price performance included in this graph is not necessarily indicative of future stock price performance.
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Recent Sales of Unregistered Securities
On November 9, 2020, we granted our Chief Medical Officer an option to purchase 120,000 shares of our common stock and a restricted stock unit award of 20,000 shares as an inducement to employment in accordance with Nasdaq Listing Rule 5635(c)(4). No underwriters were involved in the foregoing issuance of securities. The securities were issued pursuant to Section 4(a)(2) under the Securities Act of 1933, as amended, relating to transactions by an issuer not involving any public offering. The recipient either received adequate information about us or had access, through other relationships, to such information.
The stock option is scheduled to become exercisable as to 25% of the shares underlying the option on the first anniversary of the date of grant, and as to an additional 2.0833% of the shares underlying the option at the end of each successive month following such date, subject to the recipient’s continued service. The option has an exercise price of $30.41 per share. The restricted stock unit award is scheduled to vest as to one-fourth of the shares on each anniversary of the date of grant until the fourth anniversary of the date of grant, subject to the recipient’s continued service.
On January 22, 2021, we issued an aggregate of 303,599 shares of common stock to The Broad Institute, Inc. (“Broad”) in satisfaction of payment obligations in an aggregate amount of $27.5 million to Broad under the Cpf1 License Agreement and the Sponsored Research Agreement. No underwriters were involved in the foregoing issuance of securities. The securities were issued pursuant to Section 4(a)(2) under the Securities Act, relating to transactions by an issuer not involving any public offering. Prior to receiving the shares, Broad represented to us that it was acquiring the shares for its own account for investment purposes, that it had received from us and our management all of the information that it considered appropriate to evaluate whether to accept the shares, that it was capable of evaluating and understanding the risks of the investment, and that it was an accredited investor as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act.
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Purchases of Equity Securities by the Issuer and Affiliates Purchasers
Neither we nor any affiliated purchaser or anyone acting on behalf of us or an affiliated purchaser made any purchases of shares of our common stock during the fourth quarter of 2020.
Item 6. Selected Consolidated Financial Data.
You should read the following selected consolidated financial data together with our consolidated financial statements and accompanying notes appearing elsewhere in this Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of this Annual Report on Form 10-K. The following selected consolidated financial data are derived from our audited consolidated financial statements. Our historical results for any prior period are not necessarily indicative of the results that may be expected in any future period. Our consolidated statements of operations are summarized as follows (in thousands, except share and per share amounts):
Year Ended
December 31,
2020
2019
2018
2017
2016
Consolidated Statements of Operations Data:
Collaboration revenue
$
90,732
$
20,531
$
31,937
$
13,728
$
6,053
Operating expenses:
Research and development
157,996
96,898
90,654
83,159
56,979
General and administrative
67,576
64,555
55,010
50,502
46,262
Total operating expenses
225,572
161,453
145,664
133,661
103,241
Operating loss
(134,840)
(140,922)
(113,727)
(119,933)
(97,188)
Other income (expense), net
16,259
(137)
328
587
(57)
Interest income, net
2,605
7,313
3,445
-978
62
Total other income, net
18,864
7,176
3,773
(391)
5
Net loss and comprehensive loss
$
(115,976)
$
(133,746)
$
(109,954)
$
(120,324)
$
(97,183)
Reconciliation of net loss to net loss attributable to common stockholders:
Net loss
$
(115,976)
$
(133,746)
$
(109,954)
$
(120,324)
$
(97,183)
Accretion of redeemable convertible preferred stock to redemption value (1)
—
—
—
—
(47)
Net loss attributable to common stockholders (1)
$
(115,976)
$
(133,746)
$
(109,954)
$
(120,324)
$
(97,230)
Net loss per share attributable to common stockholders, basic and diluted
$
(1.98)
$
(2.68)
$
(2.33)
$
(2.98)
$
(3.02)
Weighted-average common shares outstanding, basic and diluted (1)
58,609,389
49,983,329
47,097,735
40,323,631
32,219,717
(1) See Note 15 to our consolidated financial statements for further details on the calculation of net loss per share, basic and diluted, attributable to common stockholders and the weighted-average number of shares used in the computation of the per share amounts.
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Our consolidated balance sheets are summarized as follows (in thousands, except share and per share amounts):
December 31,
2020
2019
2018
2017
2016
Consolidated Balance Sheet Data:
Cash, cash equivalents, and marketable securities
$
511,774
$
457,140
$
368,955
$
329,139
$
185,323
Working capital
360,879
403,881
338,876
295,492
154,100
Total assets
572,602
508,885
420,386
373,260
229,182
Deferred revenue, net of current portion
73,984
163,207
115,614
94,725
26,000
Construction financing lease obligation, net of current portion
—
—
32,417
33,431
35,096
Total stockholders’ equity
393,586
262,437
236,162
208,080
134,607
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