What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-05-04 · 56 added, 38 removed, 245 unchanged (28% of the section changed)

29 unchanged sentences

195,000,000 shares authorized;

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

68,736,434 and 68,489,257 shares issued, and 68,718,434 and 68,435,257 shares outstanding at June 30, 2022 and December 31, 2021, 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 (expense) income, net

Other income (expense), net

Interest income, net

7 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive loss:

Unrealized loss on marketable debt securities

Unrealized (loss) gain on marketable debt securities

Comprehensive loss

11 unchanged sentences

Balance at March 31, 2022

Exercise of stock options

Vesting of restricted common stock awards

Stock-based compensation expense

Purchase of common stock under benefit plans

Unrealized loss on marketable debt securities

Balance at June 30, 2022

Comprehensive

8 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

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

14 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 in cash, cash equivalents, and restricted cash

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

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

3 unchanged sentences

Cash paid in connection with operating lease liabilities

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, 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 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 March 31, 2022, the Company has no t sold any shares of its common stock under the ATM Facility.

As of June 30, 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 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 expects that its existing cash, cash equivalents and marketable securities at June 30, 2022 and anticipated interest income will enable it to fund its operating expenses and capital expenditure requirements into 2024.

The Company had an accumulated deficit of $ 961.7 million at June 30, 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 March 31, 2022 and 2021 are referred to as the first quarter of 2022 and 2021, respectively.

The three months ended June 30, 2022 and 2021 are referred to as the second 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 March 31, 2022 (in thousands):

March 31, 2022

Cash equivalents and marketable securities consisted of the following at June 30, 2022 (in thousands):

June 30, 2022

Cash equivalents and marketable securities:

10 unchanged sentences

Corporate notes/bonds

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.

As of June 30, 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 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.

As of June 30, 2022, the Company holds 34 securities with an aggregate fair value of $ 75.1 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, 2022 or 2021.

Fair Value Measurements

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

Assets measured at fair value on a recurring basis as of June 30, 2022 were as follows (in thousands):

Quoted Prices

19 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):

Employee related expenses

External research and development expenses

Employee related expenses

Other expenses

Intellectual property and patent related fees

Professional service expenses

Other expenses

Total accrued expenses

3 unchanged sentences

Leasehold improvements

Construction-in-progress

Computer equipment

Construction-in-progress

Furniture and office equipment

12 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 $ 2.1 million and $ 3.8 million in expense during the three months ended March 31, 2022 and 2021, respectively, for such reimbursement.

The Company incurred an aggregate of $ 1.8 million and $ 3.9 million in expense during the three and six months ended June 30, 2022, respectively, 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.

Collaboration and Profit-Sharing Agreements

3 unchanged sentences

Collaboration Revenue

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

As of June 30, 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 six months ended June 30, 2022 (in thousands):

For the six months ended June 30, 2022

Balance at December 31, 2021

Balance at March 31, 2022

Balance at June 30, 2022

Accounts receivable

1 unchanged sentence

Deferred revenue

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

During the three and six months ended June 30, 2022, the Company recognized the following collaboration revenue (in thousands):

Three Months Ended

Six Months Ended

Revenue recognized in the period from:

March 31, 2022

June 30, 2022

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, 2022:

The following is a summary of restricted stock and restricted stock unit awards activity for the six months ended June 30, 2022:

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

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.

Unvested restricted stock and restricted stock unit awards as of June 30, 2022

The restricted stock and restricted stock units issued in the six months ended June 30, 2022 include 504,922 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 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.

As of June 30, 2022, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 17.1 million, which the Company expects to recognize over a remaining weighted-average period of 2.8 years.

Stock Options

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

The following is a summary of stock option activity for the six months ended June 30, 2022:

Weighted Average

4 unchanged sentences

Outstanding at December 31, 2021

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.

Outstanding at June 30, 2022

Exercisable at June 30, 2022

As of June 30, 2022, total unrecognized compensation expense related to stock options was $ 38.5 million, which the Company expects to recognize over a remaining weighted-average period of 3.2 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