What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-05 compared with 2021-05-06 · 63 added, 36 removed, 248 unchanged (29% of the section changed)

30 unchanged sentences

195,000,000 shares authorized;

67,580,615 and 62,689,457 shares issued, and 67,472,615 and 62,563,457 shares outstanding at March 31, 2021 and December 31, 2020, respectively

68,249,786 and 62,689,457 shares issued, and 68,159,786 and 62,563,457 shares outstanding at June 30, 2021 and December 31, 2020, respectively

Additional paid-in capital

8 unchanged sentences

Three Months Ended

Six Months Ended

Collaboration and other research and development revenues

5 unchanged sentences

Other income, net:

Other income, net

Other (expense) income, net

Interest income, net

7 unchanged sentences

Three Months Ended

Other comprehensive (loss) income:

Unrealized (loss) gain on marketable debt securities

Six Months Ended

Other comprehensive loss:

Unrealized gain (loss) on marketable debt securities

Comprehensive loss

13 unchanged sentences

Balance at March 31, 2021

Exercise of stock options

Stock-based compensation expense

Vesting of restricted common stock awards

Purchase of common stock under benefit plans

Unrealized gain on marketable debt securities

Balance at June 30, 2021

Comprehensive

6 unchanged sentences

Balance at March 31, 2020

Exercise of stock options

Issuance of common stock for public offering

Stock-based compensation expense

Vesting of restricted common stock awards

Purchase of common stock under benefit plans

Unrealized loss on marketable debt securities

Balance at June 30, 2020

The accompanying notes are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

(amounts in thousands)

Three Months Ended

Six Months Ended

Cash flow from operating activities

16 unchanged sentences

Purchases of property and equipment

Proceeds from the sale of equipment

Purchases of marketable securities

4 unchanged sentences

Proceeds from exercise of stock options

Issuance of common stock under benefit plans

Net cash provided by financing activities

Net increase (decrease) in cash, cash equivalents, and restricted cash

Net increase in cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash, beginning of period

4 unchanged sentences

Offering costs included in accounts payable and accrued expenses

Issuance of common stock for settlement of success payments

Right-of-use assets obtained in exchange of operating lease obligations

The accompanying notes are an integral part of the condensed consolidated financial statements.

7 unchanged sentences

Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital.

The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“Juno Therapeutics”), payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”) , which was terminated in August 2020, and its license agreement with Beam Therapeutics.

The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“Juno Therapeutics”), and payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”), which was terminated in August 2020.

The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

In May 2021, the Company entered into a common stock sales agreement with Cowen and Company, LLC (“Cowen”), under which the Company from time to time can issue and sell shares of its common stock through Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $ 300.0 million (the “ATM Facility”).

As of June 30, 2021, the Company has no t sold any shares of our common stock under the ATM Facility.

In January 2021, the Company completed a public offering whereby it sold 3,500,000 shares of its common stock and received net proceeds of approximately $ 216.9 million.

1 unchanged sentence

The Company has incurred annual net operating losses in every year since its inception.

The Company expects that its existing cash, cash equivalents and marketable securities at March 31, 2021 and anticipated interest income will enable it to fund its operating expenses and capital expenditure requirements well into 2023 .

The Company had an accumulated deficit of $ 721.9 million at March 31, 2021, and will require substantial additional capital to fund its operations.

The Company expects that its existing cash, cash equivalents and marketable securities at June 30, 2021 and anticipated interest income will enable it to fund its operating expenses and capital expenditure requirements well into 2023 .

The Company had an accumulated deficit of $ 777.2 million at June 30, 2021, and will require substantial additional capital to fund its operations.

The Company has never generated any product revenue.

10 unchanged sentences

The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

The three months ended March 31, 2021 and 2020 are referred to as the first quarter of 2021 and 2020, respectively.

The three months ended June 30, 2021 and 2020 are referred to as the second quarter of 2021 and 2020, respectively.

The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

3 unchanged sentences

Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following at March 31, 2021 (in thousands):

March 31, 2021

Cash equivalents and marketable securities consisted of the following at June 30, 2021 (in thousands):

June 30, 2021

Cash equivalents and marketable securities:

1 unchanged sentence

Government agency securities

Corporate notes/bonds

Commercial Paper

Corporate notes/bonds

Cash equivalents and marketable securities consisted of the following at December 31, 2020 (in thousands):

5 unchanged sentences

Corporate notes/bonds

As of March 31, 2021, the Company did no t hold any marketable securities that had been in an unrealized loss position for more than twelve months.

As of June 30, 2021, the Company did no t hold any marketable securities that had been in an unrealized loss position for more than twelve months.

Furthermore, the Company has determined that there were no material changes in the credit risk of the debt securities.

As of March 31, 2021, the Company holds 44 securities with an aggregate fair value of $ 97.9 million that had remaining maturities between one and two years.

There were no realized gains or losses on available-for-sale securities during the three months ended March 31, 2021 or 2020.

As of June 30, 2021, the Company holds 30 securities with an aggregate fair value of $ 87.6 million that had remaining maturities between one and two years.

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2021 or 2020.

Fair Value Measurements

Assets measured at fair value on a recurring basis as of March 31, 2021 were as follows (in thousands):

Assets measured at fair value on a recurring basis as of June 30, 2021 were as follows (in thousands):

Quoted Prices

19 unchanged sentences

Commercial paper

Corporate bonds

Corporate notes/bonds

Restricted cash and other non-current assets:

6 unchanged sentences

Intellectual property and patent related fees

Professional service expenses

Other expenses

Professional service expenses

Sublicensing expenses

20 unchanged sentences

As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable.

The Company incurred an aggregate of $ 3.8 million in expense during both the three months ended March 31, 2021 and 2020 for such reimbursement.

The Company incurred an aggregate of $ 3.4 million and $ 7.2 million in expense during the three and six months ended June 30, 2021, respectively, for such reimbursement.

The Company incurred an aggregate of $ 2.8 million and $ 6.6 million in expense during the three and six months ended June 30, 2020, respectively, for such reimbursement.

Collaboration and Profit-Sharing Agreements

3 unchanged sentences

Collaboration Revenue

As of March 31, 2021, the Company’s contract liabilities were primarily related to the Company’s collaboration

with Juno Therapeutics.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the three months ended March 31, 2021 (in thousands):

For the three months ended March 31, 2021

As of June 30, 2021, the Company’s contract liabilities were primarily related to the Company’s collaboration with Juno Therapeutics.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the six months ended June 30, 2021 (in thousands):

For the six months ended June 30, 2021

Balance at December 31, 2020

Balance at March 31, 2021

Balance at June 30, 2021

Accounts receivable

1 unchanged sentence

Deferred revenue

During the three months ended March 31, 2021, the Company recognized the following collaboration revenue (in thousands):

During the three and six months ended June 30, 2021, the Company recognized the following collaboration revenue (in thousands):

Three Months Ended

Six Months Ended

Revenue recognized in the period from:

March 31, 2021

June 30, 2021

Amounts included in deferred revenue at the beginning of the period

3 unchanged sentences

Three Months Ended

Six Months Ended

Research and development

2 unchanged sentences

Restricted Stock and Restricted Stock Unit Awards

The following is a summary of restricted stock and restricted stock unit awards activity for the three months ended March 31, 2021:

The following is a summary of restricted stock and restricted stock unit awards activity for the six months ended June 30, 2021:

Unvested restricted stock and restricted stock unit awards as of December 31, 2020

Unvested restricted stock and restricted stock unit awards as of March 31, 2021

As of March 31, 2021, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 24.8 million, which the Company expects to recognize over a remaining weighted-average period of 2.5 years.

Unvested restricted stock and restricted stock unit awards as of June 30, 2021

The restricted stock and restricted stock units granted in the six months ended June 30, 2021 include 226,747 units granted to certain employees that contain performance-based vesting provisions.

The Company recognizes the fair value of the performance-based units through the expected achievement date if the performance-based vesting provisions are deemed probable.

As of June 30, 2021, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 23.3 million, which the Company expects to recognize over a remaining weighted-average period of 2.3 years.

Stock Options

The following is a summary of stock option activity for the three months ended March 31, 2021:

The following is a summary of stock option activity for the six months ended June 30, 2021:

Weighted Average

4 unchanged sentences

Outstanding at December 31, 2020

Outstanding at March 31, 2021

Exercisable at March 31, 2021

As of March 31, 2021, total unrecognized compensation expense related to stock options was $ 41.6 million, which the Company expects to recognize over a remaining weighted-average period of 2.6 years.

( 1,131,135 )

Outstanding at June 30, 2021

Exercisable at June 30, 2021

The stock options granted in the six months ended June 30, 2021 include option grants to the Company’s Chief Executive Officer to purchase 196,637 and 341,978 shares of the Company’s common stock that contained market-based vesting provisions and performance-based vesting provisions, respectively.

The Company recognizes the fair value of the market-based options over the earlier of the derived service period, valued using the Monte-Carlo simulation model, or when the market-based vesting conditions are met.

The Company recognizes the fair value of the performance-based options through the expected achievement date if the performance-based vesting provisions are deemed probable.

As of June 30, 2021, total unrecognized compensation expense related to stock options was $ 38.8 million, which the Company expects to recognize over a remaining weighted-average period of 2.6 years.

Net Loss per Share

6 unchanged sentences

The following common stock equivalents were excluded from the calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive:

Three Months Ended

For the three and six months ended

Unvested restricted stock and restricted stock unit awards

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements