Editas Medicine, Inc. 10-Q

Item 1. Financial Statements. Editas Medicine, Inc. Condensed Consolidated Balance Sheets (unaudited) (amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2023 ​ 2022 ASSETS ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 129,021 ​ $ 141,522 Marketable securities ​ ​ 189,418 ​ ​ 202,752 Accounts receivable ​ 242 ​ 5,145 Prepaid expenses and other current assets ​ 5,777 ​ 7,335 Total current assets ​ 324,458 ​ 356,754 Marketable securities ​ ​ 83,339 ​ ​ 93,097 Property and equipment, net ​ 13,211 ​ 15,569 Right-of-use assets ​ ​ 36,344 ​ ​ 43,648 Restricted cash and other non-current assets ​ 6,753 ​ 5,253 Total assets ​ $ 464,105 ​ $ 514,321 LIABILITIES AND STOCKHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 9,047 ​ $ 9,511 Accrued expenses ​ 31,560 ​ 31,296 Deferred revenue, current ​ ​ 8,221 ​ ​ 8,221 Operating lease liabilities ​ ​ 8,327 ​ ​ 11,082 Total current liabilities ​ 57,155 ​ 60,110 Operating lease liabilities, net of current portion ​ ​ 28,810 ​ ​ 32,864 Deferred revenue, net of current portion ​ ​ 60,667 ​ ​ 60,667 Total liabilities ​ ​ 146,632 ​ ​ 153,641 Stockholders’ equity ​ ​ ​ ​ ​ ​ Preferred stock, $ 0.0001 par value per share: 5,000,000 shares authorized; no shares issued or outstanding ​ — ​ — Common stock, $ 0.0001 par value per share: 195,000,000 shares authorized; 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 ​ 7 ​ 7 Additional paid-in capital ​ 1,446,912 ​ 1,442,405 Accumulated other comprehensive loss ​ ​ ( 2,279 ) ​ ​ ( 3,601 ) Accumulated deficit ​ ( 1,127,167 ) ​ ( 1,078,131 ) Total stockholders’ equity ​ ​ 317,473 ​ ​ 360,680 Total liabilities and stockholders’ equity ​ $ 464,105 ​ $ 514,321 ​ The accompanying notes are an integral part of the condensed consolidated financial statements. ​ 3 Table of Contents Editas Medicine, Inc. Condensed Consolidated Statements of Operations (unaudited) (amounts in thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2023 2022 Collaboration and other research and development revenues ​ $ 9,851 ​ $ 6,771 Operating expenses: ​ ​ ​ ​ ​ ​ Research and development ​ 37,804 ​ 37,976 General and administrative ​ 23,008 ​ 19,545 Total operating expenses ​ 60,812 ​ 57,521 Operating loss ​ ( 50,961 ) ​ ( 50,750 ) Other income, net: ​ ​ ​ ​ ​ ​ Other expense, net ​ ( 1,584 ) ​ ( 234 ) Interest income, net ​ ​ 3,509 ​ ​ 469 Total other income, net ​ 1,925 ​ 235 Net loss ​ $ ( 49,036 ) ​ $ ( 50,515 ) Net loss per share, basic and diluted ​ $ ( 0.71 ) ​ $ ( 0.74 ) Weighted-average common shares outstanding, basic and diluted ​ ​ 68,924,180 ​ ​ 68,484,978 ​ ​ The accompanying notes are an integral part of the condensed consolidated financial statements. ​ 4 Table of Contents Editas Medicine, Inc. Condensed Consolidated Statements of Comprehensive Loss (unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2023 ​ 2022 Net loss ​ $ ( 49,036 ) ​ $ ( 50,515 ) Other comprehensive loss: ​ ​ ​ ​ ​ ​ Unrealized gain (loss) on marketable debt securities ​ 1,322 ​ ( 2,016 ) Comprehensive loss ​ $ ( 47,714 ) ​ $ ( 52,531 ) ​ The accompanying notes are an integral part of the condensed consolidated financial statements. ​ ​ ​ ​ ​ 5 Table of Contents Editas Medicine, Inc. Condensed Consolidated Statements of Stockholders’ Equity (unaudited) (amounts in thousands, except share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ Other ​ Total ​ ​ Common Stock ​ Paid-In ​ Comprehensive ​ Accumulated ​ Stockholders’ ​ ​ Shares Amount ​ Capital ​ Loss ​ Deficit ​ Equity Balance at December 31, 2022 ​ 68,847,382 ​ $ 7 ​ $ 1,442,405 ​ $ ( 3,601 ) ​ $ ( 1,078,131 ) ​ $ 360,680 Exercise of stock options ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Vesting of restricted common stock awards ​ 146,209 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Stock-based compensation expense ​ — ​ ​ — ​ ​ 4,507 ​ ​ — ​ ​ — ​ ​ 4,507 Unrealized gain on marketable debt securities ​ — ​ ​ — ​ ​ — ​ ​ 1,322 ​ ​ — ​ ​ 1,322 Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 49,036 ) ​ ​ ( 49,036 ) Balance at March 31, 2023 ​ 68,993,591 ​ $ 7 ​ $ 1,446,912 ​ $ ( 2,279 ) ​ $ ( 1,127,167 ) ​ $ 317,473 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ Other ​ Total ​ ​ Common Stock ​ Paid-In ​ Comprehensive ​ Accumulated ​ Stockholders’ ​ ​ Shares Amount ​ Capital ​ Loss ​ Deficit ​ Equity Balance at December 31, 2021 ​ 68,435,257 ​ $ 7 ​ $ 1,411,827 ​ $ ( 493 ) ​ $ ( 857,699 ) ​ $ 553,642 Exercise of stock options ​ 12,573 ​ ​ — ​ ​ 218 ​ ​ — ​ ​ — ​ ​ 218 Vesting of restricted common stock awards ​ 154,834 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Stock-based compensation expense ​ — ​ ​ — ​ ​ 11,431 ​ ​ — ​ ​ — ​ ​ 11,431 Unrealized loss on marketable debt securities ​ — ​ ​ — ​ ​ — ​ ​ ( 2,016 ) ​ ​ — ​ ​ ( 2,016 ) Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 50,515 ) ​ ​ ( 50,515 ) Balance at March 31, 2022 ​ 68,602,664 ​ $ 7 ​ $ 1,423,476 ​ $ ( 2,509 ) ​ $ ( 908,214 ) ​ $ 512,760 ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of the condensed consolidated financial statements. 6 Table of Contents Editas Medicine, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2023 2022 Cash flow from operating activities ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 49,036 ) ​ $ ( 50,515 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ ​ ​ Stock-based compensation expense ​ 4,507 ​ 11,431 Depreciation ​ 1,544 ​ 1,558 Loss on disposal of fixed assets ​ ​ 1,583 ​ ​ — Other non-cash items, net ​ ( 693 ) ​ 234 Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ​ 4,903 ​ ​ ( 1,105 ) Prepaid expenses and other current assets ​ ​ 1,558 ​ ​ ( 99 ) Right-of-use assets ​ ​ 7,304 ​ ​ 2,716 Other non-current assets ​ ​ ( 1,500 ) ​ ​ ( 505 ) Accounts payable ​ ​ ( 557 ) ​ ​ ( 229 ) Accrued expenses ​ ​ 1,427 ​ ​ ( 3,982 ) Deferred revenue ​ — ​ ( 5,516 ) Operating lease liabilities ​ ( 6,808 ) ​ ( 3,215 ) Net cash used in operating activities ​ ( 35,768 ) ​ ( 49,227 ) Cash flow from investing activities ​ ​ ​ ​ ​ ​ Purchases of property and equipment ​ ( 1,840 ) ​ ​ ( 2,248 ) Purchases of marketable securities ​ ​ ( 40,798 ) ​ ​ ( 60,381 ) Proceeds from maturities of marketable securities ​ ​ 65,905 ​ ​ 119,000 Net cash provided by investing activities ​ 23,267 ​ 56,371 Cash flow from financing activities ​ ​ ​ ​ ​ ​ Proceeds from exercise of stock options ​ ​ — ​ ​ 218 Net cash provided by financing activities ​ — ​ 218 Net (decrease) increase in cash, cash equivalents, and restricted cash ​ ( 12,501 ) ​ ​ 7,362 Cash, cash equivalents, and restricted cash, beginning of period ​ 145,399 ​ ​ 207,396 Cash, cash equivalents, and restricted cash, end of period ​ $ 132,898 ​ $ 214,758 Supplemental disclosure of cash and non-cash activities: ​ ​ ​ ​ ​ ​ Fixed asset additions included in accounts payable and accrued expenses ​ $ 370 ​ $ 199 Cash paid in connection with operating lease liabilities ​ ​ 3,897 ​ ​ 3,746 Remeasurement of operating lease liabilities and right-of-use assets due to lease modification ​ ​ ( 3,781 ) ​ ​ — ​ ​ ​ The accompanying notes are an integral part of the condensed consolidated financial statements. ​ 7 Table of Contents Editas Medicine, Inc. Notes to Condensed Consolidated Financial Statements (unaudited) ​ 1. Nature of Business ​ Editas Medicine, Inc. (the “Company”) is a clinical stage genome editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases. The Company was incorporated in the state of Delaware in September 2013. Its principal offices are in Cambridge, Massachusetts. 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, 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. Liquidity ​ 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, 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 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. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition. ​ 2. Summary of Significant Accounting Policies ​ Unaudited Interim Financial Information ​ The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. 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”). ​ 8 Table of Contents 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 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. ​ Summary of Significant Accounting Policies ​ The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Annual Report. There have been no material changes to the significant accounting policies previously disclosed in the Annual Report. ​ ​ 3. Cash Equivalents and Marketable Securities ​ Cash equivalents and marketable securities consisted of the following at March 31, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized ​ for Credit ​ ​ Unrealized ​ Unrealized ​ Fair March 31, 2023 ​ Cost ​ Losses ​ ​ Gains ​ Losses ​ Value Cash equivalents and marketable securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Government agency securities ​ $ 176,982 ​ $ — ​ ​ $ 42 ​ $ ( 1,757 ) ​ $ 175,267 Money market funds ​ ​ 129,021 ​ ​ — ​ ​ ​ — ​ ​ — ​ ​ 129,021 Corporate notes/bonds ​ ​ 55,876 ​ ​ — ​ ​ ​ 24 ​ ​ ( 477 ) ​ ​ 55,423 Commercial paper ​ ​ 29,809 ​ ​ — ​ ​ ​ — ​ ​ ( 63 ) ​ ​ 29,746 U.S. Treasuries ​ ​ 12,369 ​ ​ — ​ ​ ​ — ​ ​ ( 48 ) ​ ​ 12,321 Total ​ $ 404,057 ​ $ — ​ ​ $ 66 ​ $ ( 2,345 ) ​ $ 401,778 ​ Cash equivalents and marketable securities consisted of the following at December 31, 2022 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance ​ ​ Gross ​ Gross ​ ​ ​ ​ Amortized ​ for Credit ​ ​ Unrealized ​ Unrealized ​ Fair December 31, 2022 ​ Cost ​ Losses ​ ​ Gains ​ Losses ​ Value Cash equivalents and marketable securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Government agency securities ​ $ 161,902 ​ $ — ​ ​ $ 11 ​ $ ( 2,556 ) ​ $ 159,357 Money market funds ​ ​ 141,522 ​ ​ — ​ ​ ​ — ​ ​ — ​ ​ 141,522 Corporate notes/bonds ​ ​ 57,575 ​ ​ — ​ ​ ​ 2 ​ ​ ( 694 ) ​ ​ 56,883 U.S. Treasuries ​ ​ 50,019 ​ ​ — ​ ​ ​ 3 ​ ​ ( 229 ) ​ ​ 49,793 Commercial paper ​ ​ 29,954 ​ ​ — ​ ​ ​ 3 ​ ​ ( 141 ) ​ ​ 29,816 Total ​ $ 440,972 ​ $ — ​ ​ $ 19 ​ $ ( 3,620 ) ​ $ 437,371 ​ 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 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. ​ 9 Table of Contents 4. Fair Value Measurements ​ Assets measured at fair value on a recurring basis as of March 31, 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices Significant ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ ​ Markets for ​ Observable ​ Unobservable ​ ​ March 31, ​ Identical Assets ​ Inputs ​ Inputs Financial Assets ​ 2023 ​ (Level 1) ​ (Level 2) ​ (Level 3) Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 129,021 ​ $ 129,021 ​ $ — ​ $ — Marketable securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Government agency securities ​ ​ 175,267 ​ ​ — ​ ​ 175,267 ​ ​ — Corporate notes/bonds ​ ​ 55,423 ​ ​ — ​ ​ 55,423 ​ ​ — Commercial paper ​ ​ 29,746 ​ ​ — ​ ​ 29,746 ​ ​ — U.S. Treasuries ​ ​ 12,321 ​ ​ 12,321 ​ ​ — ​ ​ — Restricted cash and other non-current assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ ​ 3,877 ​ ​ 3,877 ​ ​ — ​ ​ — Total financial assets ​ $ 405,655 ​ $ 145,219 ​ $ 260,436 ​ $ — ​ Assets measured at fair value on a recurring basis as of December 31, 2022 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices Significant ​ ​ ​ ​ ​ ​ ​ in Active ​ Other ​ Significant ​ ​ ​ ​ ​ Markets for ​ Observable ​ Unobservable ​ ​ December 31, ​ Identical Assets ​ Inputs ​ Inputs Financial Assets ​ 2022 ​ (Level 1) ​ (Level 2) ​ (Level 3) Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 141,522 ​ $ 141,522 ​ $ — ​ $ — Marketable securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Government agency securities ​ ​ 159,357 ​ ​ — ​ ​ 159,357 ​ ​ — Corporate bonds ​ ​ 56,883 ​ ​ — ​ ​ 56,883 ​ ​ — U.S. Treasuries ​ ​ 49,793 ​ ​ 49,793 ​ ​ — ​ ​ — Commercial paper ​ ​ 29,816 ​ ​ — ​ ​ 29,816 ​ ​ — Restricted cash and other non-current assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ ​ 3,877 ​ ​ 3,877 ​ ​ — ​ ​ — Total financial assets ​ $ 441,248 ​ $ 195,192 ​ $ 246,056 ​ $ — ​ ​ ​ 5. Accrued Expenses ​ Accrued expenses consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ March 31, ​ December 31, ​ 2023 2022 External research and development expenses ​ $ 21,761 ​ $ 16,452 Employee related expenses ​ ​ 5,956 ​ ​ 10,140 Intellectual property and patent related fees ​ ​ 2,168 ​ ​ 1,809 Professional service expenses ​ ​ 1,566 ​ ​ 1,260 Other expenses ​ ​ 109 ​ ​ 1,635 Total accrued expenses ​ $ 31,560 ​ $ 31,296 ​ ​ ​ ​ ​ ​ ​ ​ 10 Table of Contents 6. Property and Equipment, net ​ Property and equipment, net consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ March 31, ​ December 31, ​ 2023 2022 Laboratory equipment ​ $ 23,813 ​ $ 24,407 Leasehold improvements ​ ​ 9,634 ​ ​ 9,761 Computer equipment ​ ​ 875 ​ ​ 875 Construction-in-progress ​ 369 ​ 1,573 Furniture and office equipment ​ ​ 264 ​ ​ 264 Software ​ 215 ​ 215 Total property and equipment ​ 35,170 ​ 37,095 Less: accumulated depreciation ​ ( 21,959 ) ​ ( 21,526 ) Property and equipment, net ​ $ 13,211 ​ $ 15,569 ​ ​ 7. Commitments and Contingencies ​ The Company is a party to a number of license agreements under which the Company licenses patents, patent applications and other intellectual property from third parties. As such, the Company is obligated to pay licensors for various costs including upfront licenses fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future products. These contracts are generally cancellable, with notice, at the Company’s option and do not have significant cancellation penalties. The terms and conditions as well as the accounting analysis for the Company’s significant commitments and contingencies are described in Note 8, “Commitments and Contingencies” to the consolidated financial statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report. ​ Licensor Expense Reimbursement ​ The Company is obligated to reimburse The Broad Institute, Inc. (“Broad”) and the President and Fellows of Harvard College (“Harvard”) for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the license agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad. 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 $ 3.0 million and $ 2.1 million in expense during the three months ended March 31, 2023 and 2022, respectively, for such reimbursement. ​ 8 . Collaboration and Profit-Sharing Agreements ​ The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company. The terms and conditions as well as the accounting analysis for the Company’s significant collaborations, out-licenses and strategic alliances are described in Note 9, “Collaboration and Profit-Sharing Agreements” to the consolidated financial statements included in the Annual Report. There have been no material changes to the terms and conditions, or the accounting conclusions, previously disclosed in the Annual Report. ​ 11 Table of Contents Collaboration Revenue ​ 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 ​ Additions ​ Deductions ​ Balance at March 31, 2023 Accounts receivable $ 5,145 ​ $ 97 ​ $ ( 5,000 ) ​ $ 242 Contract liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred revenue $ 68,888 ​ $ — ​ $ — ​ $ 68,888 ​ During the three months ended March 31, 2023, the Company recognized the following collaboration revenue (in thousands): ​ ​ ​ ​ ​ Three Months Ended Revenue recognized in the period from: March 31, 2023 Amounts included in deferred revenue at the beginning of the period $ — Performance obligations satisfied in previous periods $ — ​ ​ ​ 9 . Stock-based Compensation ​ Total compensation cost recognized for all stock-based compensation awards in the condensed consolidated statements of operations was as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ ​ 2023 ​ 2022 Research and development ​ $ 2,086 ​ $ 3,695 General and administrative ​ 2,421 ​ 7,736 Total stock-based compensation expense ​ $ 4,507 ​ $ 11,431 ​ Restricted Stock Unit Awards ​ The following is a summary of restricted stock unit awards activity for the three months ended March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Average ​ ​ ​ ​ Grant Date ​ ​ ​ ​ Fair Value ​ ​ Shares ​ Per Share Unvested restricted stock unit awards as of December 31, 2022 1,499,070 ​ $ 18.70 Issued 884,867 ​ $ 8.64 Vested ( 146,209 ) ​ $ 19.52 Forfeited ​ ( 248,527 ) ​ $ 21.97 Unvested restricted stock unit awards as of March 31, 2023 1,989,201 ​ $ 13.76 ​ 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 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. ​ 12 Table of Contents Stock Options ​ The following is a summary of stock option activity for the three months ended March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average Remaining Aggregate Intrinsic ​ ​ Shares ​ Exercise Price ​ Contractual Life (years) ​ Value (in thousands) Outstanding at December 31, 2022 5,276,148 ​ $ 23.99 ​ 8.0 ​ $ 401,529 Granted ​ 1,209,494 ​ $ 8.64 ​ ​ ​ ​ ​ Exercised ​ — ​ $ — ​ ​ ​ ​ ​ Cancelled ​ ( 326,434 ) ​ $ 24.56 ​ ​ ​ ​ ​ Outstanding at March 31, 2023 6,159,208 ​ $ 20.95 ​ 7.9 ​ $ 236,504 Exercisable at March 31, 2023 2,168,910 ​ $ 30.18 ​ 6.0 ​ $ 236,504 ​ 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. ​ 10. 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 ​ ​ March 31, ​ 2023 ​ 2022 Unvested restricted stock and restricted stock unit awards 1,989,201 ​ 1,233,218 Outstanding stock options 6,159,208 ​ 3,920,083 Total 8,148,409 ​ 5,153,301 ​ ​ ​ ​ ​ 13 Table of Contents