What changed in this filing

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Item 1. Financial Statements

2023-05-05 compared with 2022-11-02 · 51 added, 97 removed, 231 unchanged (39% of the section changed)

3 unchanged sentences

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

September 30,

Current assets:

24 unchanged sentences

195,000,000 shares authorized;

68,761,729 and 68,489,257 shares issued, and 68,761,729 and 68,435,257 shares outstanding at September 30, 2022 and December 31, 2021, respectively

68,993,591 and 68,847,382 shares issued, and 68,993,591 and 68,847,382 shares outstanding at March 31, 2023 and December 31, 2022, respectively

Additional paid-in capital

2 unchanged sentences

( 1,127,167 )

( 1,078,131 )

Total stockholders’ equity

5 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Collaboration and other research and development revenues

5 unchanged sentences

Other income, net:

Other income, net

Other expense, net

Interest income, net

4 unchanged sentences

Editas Medicine, Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

Condensed Consolidated Statements of Comprehensive Loss

(amounts in thousands)

Three Months Ended

Nine Months Ended

September 30,

Other comprehensive (loss) income:

Unrealized (loss) gain on marketable debt securities

Other comprehensive loss:

Unrealized gain (loss) on marketable debt securities

Comprehensive loss

6 unchanged sentences

Balance at December 31, 2022

( 1,078,131 )

Exercise of stock options

1 unchanged sentence

Stock-based compensation expense

Unrealized loss on marketable debt securities

Unrealized gain on marketable debt securities

Balance at March 31, 2023

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

Exercise of stock options

Vesting of restricted common stock awards

Stock-based compensation expense

Unrealized loss on marketable debt securities

Balance at September 30, 2022

( 1,127,167 )

2 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

Vesting of restricted common stock awards

Stock-based compensation expense

Purchase of common stock under benefit plans

Unrealized gain on marketable debt securities

Balance at September 30, 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

Loss on disposal of fixed assets

Other non-cash items, net

11 unchanged sentences

Purchases of property and equipment

Proceeds from the sale of equipment

Purchases of marketable securities

Proceeds from maturities of marketable securities

Net cash provided by (used in) investing activities

Net cash provided by investing activities

Cash flow from financing activities

Proceeds from offering of common stock, net of issuance costs

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

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

Remeasurement of operating lease liabilities and right-of-use assets due to lease modification

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

10 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 September 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.

In February 2021, the underwriters in the public offering exercised their option to purchase an additional 525,000 shares, resulting in additional net proceeds to the Company of approximately $ 32.6 million.

As of March 31, 2023, the Company has no t sold any shares of its common stock under the ATM Facility.

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, 2022 will enable it to fund its operating expenses and capital expenditure requirements into 2024.

The Company had an accumulated deficit of $ 1.0 billion at September 30, 2022, 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, 2023 will enable it to fund its operating expenses and capital expenditure requirements into 2025.

The Company had an accumulated deficit of $ 1.1 billion at March 31, 2023, and will require substantial additional capital to fund its operations.

The Company has never generated any product revenue.

6 unchanged sentences

Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Annual Report”).

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Editas Securities Corporation.

All intercompany transactions and balances of the subsidiary have been eliminated in consolidation.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Editas Securities Corporation and Editas Medicine, LLC.

All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation.

In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods.

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, 2022 and 2021 are referred to as the third quarter of 2022 and 2021, respectively.

The three months ended March 31, 2023 and 2022 are referred to as the first quarter of 2023 and 2022, 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, 2022 (in thousands):

September 30, 2022

Cash equivalents and marketable securities consisted of the following at March 31, 2023 (in thousands):

March 31, 2023

Cash equivalents and marketable securities:

Money market funds

Government agency securities

Commercial paper

Money market funds

Corporate notes/bonds

Commercial paper

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

1 unchanged sentence

Cash equivalents and marketable securities:

Money market funds

Government agency securities

Commercial paper

Money market funds

Corporate notes/bonds

As of September 30, 2022, the Company held three marketable securities that were in a continuous unrealized loss position.

The Company neither intends to sell these marketable securities, nor does it believe that it is more-likely-than-not to conclude it will have to sell them before recovery of their carrying values.

The Company also believes that it will be able to collect both principal and interest amounts due to it at maturity.

Commercial paper

As of March 31, 2023, 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, 2022, the Company holds 25 securities with an aggregate fair value of $ 58.8 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, 2022 or 2021.

As of March 31, 2023, the Company holds 56 securities with an aggregate fair value of $ 83.3 million that had remaining maturities greater than one year.

There were no realized gains or losses on available-for-sale securities during the three months ended March 31, 2023 and 2022.

Fair Value Measurements

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

Assets measured at fair value on a recurring basis as of March 31, 2023 were as follows (in thousands):

Quoted Prices

September 30,

Identical Assets

4 unchanged sentences

Government agency securities

Commercial paper

Corporate notes/bonds

Commercial paper

Restricted cash and other non-current assets:

9 unchanged sentences

Government agency securities

Commercial paper

Corporate bonds

Commercial paper

Restricted cash and other non-current assets:

3 unchanged sentences

Accrued expenses consisted of the following (in thousands):

September 30,

Employee related expenses

External research and development expenses

Employee related expenses

Intellectual property and patent related fees

4 unchanged sentences

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

September 30,

Laboratory equipment

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 $ 2.2 million and $ 6.1 million in expense during the three and nine months ended September 30, 2022, 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 $ 3.0 million and $ 2.1 million in expense during the three months ended March 31, 2023 and 2022, respectively, for such reimbursement.

Collaboration and Profit-Sharing Agreements

3 unchanged sentences

Collaboration Revenue

As of September 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 nine months ended September 30, 2022 (in thousands):

For the nine months ended September 30, 2022

As of March 31, 2023, 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, 2023 (in thousands):

For the three months ended March 31, 2023

Balance at December 31, 2022

Balance at September 30, 2022

Balance at March 31, 2023

Accounts receivable

1 unchanged sentence

Deferred revenue

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

During the three months ended March 31, 2023, the Company recognized the following collaboration revenue (in thousands):

Three Months Ended

Nine Months Ended

Revenue recognized in the period from:

September 30, 2022

March 31, 2023

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

1 unchanged sentence

Total stock-based compensation expense

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, 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, 2022

The restricted stock and restricted stock units issued in the nine months ended September 30, 2022 include 563,294 units granted to certain employees that contain performance-based vesting provisions.

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the three months ended March 31, 2023:

Unvested restricted stock unit awards as of December 31, 2022

Unvested restricted stock unit awards as of March 31, 2023

The restricted stock units issued in the three months ended March 31, 2023 include 253,100 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, 2022, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $ 16.0 million, which the Company expects to recognize over a remaining weighted-average period of 2.79 years.

As of March 31, 2023, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 15.4 million, which the Company expects to recognize over a remaining weighted-average period of 2.85 years.

Stock Options

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

The following is a summary of stock option activity for the three months ended March 31, 2023:

Weighted Average

4 unchanged sentences

Outstanding at December 31, 2022

Outstanding at September 30, 2022

Exercisable at September 30, 2022

As of September 30, 2022, total unrecognized compensation expense related to stock options was $ 37.0 million, which the Company expects to recognize over a remaining weighted-average period of 3.1 years.

Outstanding at March 31, 2023

Exercisable at March 31, 2023

As of March 31, 2023, total unrecognized compensation expense related to stock options was $ 32.6 million, which the Company expects to recognize over a remaining weighted-average period of 3.1 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:

For the Three and Nine Months Ended

September 30,

Three 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