What changed in this filing

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Item 1. Financial Statements

2022-05-04 compared with 2021-11-09 · 52 added, 118 removed, 231 unchanged (42% of the section changed)

3 unchanged sentences

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

September 30,

Current assets:

17 unchanged sentences

Deferred revenue, net of current portion

Other non-current liabilities

Total liabilities

5 unchanged sentences

195,000,000 shares authorized;

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

68,638,664 and 68,489,257 shares issued, and 68,602,664 and 68,435,257 shares outstanding at March 31, 2022 and December 31, 2021, respectively

Additional paid-in capital

5 unchanged sentences

Editas Medicine, Inc.

Condensed Consolidated Statement of Operations

Condensed Consolidated Statements of Operations

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

Three Months Ended

Nine Months Ended

September 30,

Collaboration and other research and development revenues

3 unchanged sentences

Total operating expenses

Operating (loss) income

Other income (expense), net:

Other income (expense), net

Operating loss

Other income, net:

Other (expense) income, net

Interest income, net

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

Total other income, net

Net loss per share, basic and diluted

Weighted-average common shares outstanding, basic and diluted

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

3 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Net (loss) income

Other comprehensive (loss) income:

Unrealized gain (loss) on marketable debt securities

Comprehensive (loss) income

Other comprehensive loss:

Unrealized loss on marketable debt securities

Comprehensive loss

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

5 unchanged sentences

Balance at December 31, 2021

Issuance of common stock for public offering

Issuance of common stock for success payment

Exercise of stock options

3 unchanged sentences

Balance at March 31, 2022

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

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, 2020

Exercise of stock options

Vesting of restricted common stock awards

Stock-based compensation expense

Unrealized gain on marketable debt securities

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

Issuance of common stock for success payment

Exercise of stock options

Stock-based compensation expense

Vesting of restricted common stock awards

Stock-based compensation expense

Unrealized loss on marketable debt securities

Balance at September 30, 2020

Balance at March 31, 2021

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

2 unchanged sentences

(amounts in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flow from operating activities

1 unchanged sentence

Stock-based compensation expense

Unrealized gain on corporate equity securities

Other non-cash items, net

8 unchanged sentences

Operating lease liabilities

Other current and non-current liabilities

Net cash used in operating activities

1 unchanged sentence

Purchases of property and equipment

Proceeds from the sale of equipment

Purchases of marketable securities

Proceeds from maturities of marketable securities

Net cash used in investing activities

Net cash provided by investing activities

Cash flow from financing activities

1 unchanged sentence

Proceeds from exercise of stock options

Issuance of common stock under benefit plans

Net cash provided by financing activities

6 unchanged sentences

Offering costs included in accounts payable and accrued expenses

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”), 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 has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, Inc.

a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“BMS”), 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 September 30, 2021, the Company has no t sold any shares of its common stock under the ATM Facility.

As of March 31, 2022, 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 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 expects that its existing cash, cash equivalents and marketable securities at March 31, 2022 and anticipated interest income will enable it to fund its operating expenses and capital expenditure requirements into early 2024.

The Company had an accumulated deficit of $ 908.2 million at March 31, 2022, 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 September 30, 2021 and 2020 are referred to as the third quarter of 2021 and 2020, respectively.

The three months ended March 31, 2022 and 2021 are referred to as the first quarter of 2022 and 2021, 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 September 30, 2021 (in thousands):

September 30, 2021

Cash equivalents and marketable securities consisted of the following at March 31, 2022 (in thousands):

March 31, 2022

Cash equivalents and marketable securities:

10 unchanged sentences

Corporate notes/bonds

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.

As of March 31, 2022, 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 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.

As of March 31, 2022, the Company holds 38 securities with an aggregate fair value of $ 78.0 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, 2022 or 2021.

Fair Value Measurements

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

Assets measured at fair value on a recurring basis as of March 31, 2022 were as follows (in thousands):

Quoted Prices

September 30,

Identical Assets

18 unchanged sentences

Commercial paper

Corporate bonds

Corporate notes/bonds

Restricted cash and other non-current assets:

3 unchanged sentences

Accrued expenses consisted of the following (in thousands):

September 30,

Employee related expenses

3 unchanged sentences

Other expenses

Sublicensing expenses

Total accrued expenses

1 unchanged sentence

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 $ 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.

The Company incurred an aggregate of $ 2.1 million and $ 3.8 million in expense during the three months ended March 31, 2022 and 2021, respectively, for such reimbursement.

Collaboration and Profit-Sharing Agreements

3 unchanged sentences

Collaboration Revenue

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

As of March 31, 2022, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS.

The following table presents changes in the Company’s accounts receivable and contract liabilities for the three months ended March 31, 2022 (in thousands):

For the three months ended March 31, 2022

Balance at December 31, 2021

Balance at September 30, 2021

Balance at March 31, 2022

Accounts receivable

1 unchanged sentence

Deferred revenue

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

During the three months ended March 31, 2022, the Company recognized the following collaboration revenue (in thousands):

Three Months Ended

Nine Months Ended

Revenue recognized in the period from:

September 30, 2021

March 31, 2022

Amounts included in deferred revenue at the beginning of the period

3 unchanged sentences

Three 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 nine months ended September 30, 2021:

The following is a summary of restricted stock and restricted stock unit awards activity for the three months ended March 31, 2022:

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

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.

Unvested restricted stock and restricted stock unit awards as of March 31, 2022

The restricted stock and restricted stock units granted in the three months ended March 31, 2022 include 259,367 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 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.

As of March 31, 2022, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 19.1 million, which the Company expects to recognize over a remaining weighted-average period of 2.9 years.

Stock Options

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

The following is a summary of stock option activity for the three months ended March 31, 2022:

Weighted Average

4 unchanged sentences

Outstanding at December 31, 2021

( 1,218,120 )

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 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:

Outstanding at March 31, 2022

Exercisable at March 31, 2022

As of March 31, 2022, total unrecognized compensation expense related to stock options was $ 34.4 million, which the Company expects to recognize over a remaining weighted-average period of 3.1 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:

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