What changed in this filing

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Item 1. Financial Statements

2021-11-09 compared with 2021-08-05 · 95 added, 57 removed, 254 unchanged (37% of the section changed)

3 unchanged sentences

(amounts in thousands, except share and per share data)

September 30,

Current assets:

25 unchanged sentences

195,000,000 shares authorized;

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

68,392,659 and 62,689,457 shares issued, and 68,320,659 and 62,563,457 shares outstanding at September 30, 2021 and December 31, 2020, respectively

Additional paid-in capital

5 unchanged sentences

Editas Medicine, Inc.

Condensed Consolidated Statements of Operations

(amounts in thousands, except per share and share data)

Condensed Consolidated Statement of Operations

(amounts in thousands, except share and per share data)

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Collaboration and other research and development revenues

3 unchanged sentences

Total operating expenses

Operating loss

Other income, net:

Other (expense) income, net

Operating (loss) income

Other income (expense), net:

Other income (expense), net

Interest income, net

Total other income, net

Net loss per share, basic and diluted

Weighted-average common shares outstanding, basic and diluted

Total other income (expense), net

Net (loss) income

Net (loss) income per share, basic

Net (loss) income per share, diluted

Weighted-average common shares outstanding, basic

Weighted-average common shares outstanding, diluted

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

Editas Medicine, Inc.

Condensed Consolidated Statements of Comprehensive Loss

Condensed Consolidated Statements of Comprehensive (Loss) Income

(amounts in thousands)

Three Months Ended

Six Months Ended

Other comprehensive loss:

Nine Months Ended

September 30,

Net (loss) income

Other comprehensive (loss) income:

Unrealized gain (loss) on marketable debt securities

Comprehensive loss

Comprehensive (loss) income

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

18 unchanged sentences

Balance at June 30, 2021

Exercise of stock options

Stock-based compensation expense

Vesting of restricted common stock awards

Unrealized gain on marketable debt securities

Balance at September 30, 2021

Comprehensive

Stockholders’

Income (Loss)

Balance at December 31, 2019

11 unchanged sentences

Balance at June 30, 2020

Exercise of stock options

Stock-based compensation expense

Vesting of restricted common stock awards

Unrealized loss on marketable debt securities

Balance at September 30, 2020

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

2 unchanged sentences

(amounts in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flow from operating activities

19 unchanged sentences

Proceeds from maturities of marketable securities

Net cash provided by investing activities

Net cash used in investing activities

Cash flow from financing activities

23 unchanged sentences

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.

As of September 30, 2021, the Company has no t sold any shares of its 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 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 expects that its existing cash, cash equivalents and marketable securities at September 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 $ 816.3 million at September 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 June 30, 2021 and 2020 are referred to as the second quarter of 2021 and 2020, respectively.

The three months ended September 30, 2021 and 2020 are referred to as the third 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 June 30, 2021 (in thousands):

June 30, 2021

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

September 30, 2021

Cash equivalents and marketable securities:

10 unchanged sentences

Corporate notes/bonds

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.

As of September 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 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.

As of September 30, 2021, the Company holds 29 securities with an aggregate fair value of $ 99.2 million that had remaining maturities between one and two years .

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

Fair Value Measurements

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

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

Quoted Prices

September 30,

Identical Assets

18 unchanged sentences

Commercial paper

Corporate notes/bonds

Corporate bonds

Restricted cash and other non-current assets:

3 unchanged sentences

Accrued expenses consisted of the following (in thousands):

External research and development expenses

September 30,

Employee related expenses

External research and development expenses

Intellectual property and patent related fees

Other expenses

Professional service expenses

Other expenses

Sublicensing expenses

2 unchanged sentences

Property and equipment, net consisted of the following (in thousands):

September 30,

Laboratory equipment

16 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 $ 3.4 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.

The Company incurred an aggregate of $ 1.8 million and $ 9.0 million in expense during the three and nine months ended September 30, 2021, respectively, for such reimbursement.

The Company incurred an aggregate of $ 2.6 million and $ 9.3 million in expense during the three and nine months ended September 30, 2020, respectively, for such reimbursement.

Collaboration and Profit-Sharing Agreements

3 unchanged sentences

Collaboration Revenue

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

As of September 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 nine months ended September 30, 2021 (in thousands):

For the nine months ended September 30, 2021

Balance at December 31, 2020

Balance at June 30, 2021

Balance at September 30, 2021

Accounts receivable

1 unchanged sentence

Deferred revenue

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

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

Three Months Ended

Six Months Ended

Nine Months Ended

Revenue recognized in the period from:

June 30, 2021

September 30, 2021

Amounts included in deferred revenue at the beginning of the period

3 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

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 six months ended June 30, 2021:

The following is a summary of restricted stock and restricted stock unit awards activity for the nine months ended September 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 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.

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

The restricted stock and restricted stock units granted in the nine months ended September 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.

As of September 30, 2021, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 18.7 million, which the Company expects to recognize over a remaining weighted-average period of 2.1 years.

Stock Options

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

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

Weighted Average

5 unchanged sentences

( 1,218,120 )

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.

Outstanding at September 30, 2021

Exercisable at September 30, 2021

The stock options granted in the nine months ended September 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

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities.

Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury stock and if converted methods.

Contingently issuable shares are included in the calculation of basic loss per share as of the beginning of the period in which all the necessary conditions have been satisfied.

Contingently issuable shares are included in diluted loss per share based on the number of shares, if any, that would be issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, if the results are dilutive.

For purposes of the diluted net loss per share calculation, stock options are considered to be common stock equivalents, but they were excluded from the Company’s calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive.

Therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented.

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:

For the three and six months ended

As of September 30, 2021, total unrecognized compensation expense related to stock options was $ 33.3 million, which the Company expects to recognize over a remaining weighted-average period of 2.5 years.

Net (Loss) Income per Share

Basic net (loss) income per common share is calculated by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities.

Diluted net (loss) income per share is computed by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury stock and if converted methods.

Contingently issuable shares are included in the calculation of basic (loss) income per share as of the beginning of the period in which all the necessary conditions have been satisfied.

Contingently issuable shares are included in diluted (loss) income per share based on the number of shares, if any, that would be issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, if the results are dilutive.

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Weighted average common shares outstanding, basic

Dilutive effect of outstanding stock options

Dilutive effect of unvested restricted stock and restricted stock unit awards

Weighted average common shares outstanding, diluted

Net (loss) income per share, basic

Net (loss) income per share, diluted

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

Three months ended

Nine months Ended

September 30,

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