What changed in this filing

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Item 1. Financial Statements

2024-08-07 compared with 2024-05-08 · 72 added, 48 removed, 292 unchanged (29% of the section changed)

32 unchanged sentences

195,000,000 shares authorized;

82,234,951 and 81,767,263 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

82,429,514 and 81,767,263 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

Additional paid-in capital 1,593,350 1,580,241

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Collaboration and other research and development revenues $ 513 $ 2,887 $ 1,649 $ 12,738

5 unchanged sentences

Other income, net:

Other income (expense), net 6 ( 1,584 )

Other (expense) income, net ( 1 ) ( 7 ) 5 ( 1,590 )

Interest income, net 4,297 3,811 9,331 7,320

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Net loss $ ( 67,607 ) $ ( 40,290 ) $ ( 129,557 ) $ ( 89,326 )

20 unchanged sentences

Balance at March 31, 2024 82,234,951 $ 8 $ 1,588,018 $ ( 326 ) $ ( 1,293,300 ) $ 294,400

Stock-based compensation expense — — 5,010 — — 5,010

Vesting of restricted common stock awards 121,643 — — — — —

Issuance of common stock under employee stock purchase plan 72,920 — 322 — — 322

Unrealized loss on marketable debt securities — — — ( 116 ) — ( 116 )

Net loss — — — — ( 67,607 ) ( 67,607 )

Balance at June 30, 2024 82,429,514 $ 8 $ 1,593,350 $ ( 442 ) $ ( 1,360,907 ) $ 232,009

Editas Medicine, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

Common Stock Additional

6 unchanged sentences

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 loss on marketable debt securities — — — 1,322 — 1,322

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

Issuance of common stock from public offering, net commissions, underwriting discounts and offering costs 12,500,000 1 117,078 — — 117,079

Exercise of stock options 3,122 — 11 — — 11

Stock-based compensation expense — — 5,215 — — 5,215

Vesting of restricted common stock awards 64,492 — — — — —

Issuance of common stock under employee stock purchase plan 55,704 — 435 — — 435

Unrealized loss on marketable debt securities — — — ( 6 ) — ( 6 )

Net loss — — — — ( 40,290 ) ( 40,290 )

Balance at June 30, 2023 81,616,909 $ 8 $ 1,569,651 $ ( 2,285 ) $ ( 1,167,457 ) $ 399,917

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

5 unchanged sentences

Net amortization of premiums and discounts on marketable securities ( 3,596 ) ( 1,473 )

Other non-cash items ( 415 ) —

Changes in operating assets and liabilities:

6 unchanged sentences

Operating lease liabilities 2,162 ( 6,760 )

Other current and non-current liabilities, net 1,673 —

Other non-current liabilities 1,969 —

Net cash used in operating activities ( 106,934 ) ( 74,479 )

3 unchanged sentences

Proceeds from maturities of marketable securities 138,795 107,605

Net cash (used in) provided by investing activities ( 4,745 ) 23,267

Net cash provided by investing activities 47,209 36,249

Cash flow from financing activities

Proceeds from offering of common stock, net of issuance costs — 117,079

Proceeds from exercise of stock options 192 11

Proceeds from issuance of common stock under employee stock purchase plan 322 435

Net cash provided by financing activities 514 117,525

Net decrease in cash, cash equivalents, and restricted cash ( 54,425 ) ( 12,501 )

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 59,211 ) 79,295

Cash, cash equivalents, and restricted cash, beginning of period 127,529 145,399

3 unchanged sentences

Cash, cash equivalents, and restricted cash, end of period $ 68,318 $ 224,694

1 First quarter 2024 restricted cash of $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet

1 First quarter of 2023 restricted cash of $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet

1 As of June 30, 2024, restricted cash of $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet

1 As of June 30, 2023, restricted cash of $ 3,877 was included in Restricted cash and other non-current assets on the Consolidated Balance Sheet

Supplemental disclosure of cash and non-cash activities:

Fixed asset additions included in accounts payable and accrued expenses $ 54 $ 212

Offering expenses included in accounts payable and accrued expenses — 230

Cash paid in connection with operating lease liabilities 7,683 5,738

Remeasurement of operating lease liabilities and right-of-use assets due to lease modification 794 1,069

Commencement of right-of-use asset 7,844 —

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 (“BMS”), payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”) and payments received in conjunction with the Company’s license agreement with Vertex Pharmaceuticals, Inc.

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”), payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”) and payments received in connection with the Company’s license agreement with Vertex Pharmaceuticals, Inc.

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.

2 unchanged sentences

The Company amended the common stock sales agreement with Cowen in February 2024 in connection with filing a new registration statement.

As of March 31, 2024, the Company has not sold any shares of its common stock under the ATM Facility.

As of June 30, 2024, the Company has not 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.

As of May 8, 2024, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidated financial statements.

The Company had an accumulated deficit of $ 1.3 billion at March 31, 2024, and will require substantial additional capital to fund its operations.

As of August 7, 2024, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidated financial statements.

The Company had an accumulated deficit of $ 1.4 billion at June 30, 2024, and will require substantial additional capital to fund its operations.

The Company has never generated any product revenue.

11 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, 2024 and 2023 are referred to as the first quarter of 2024 and 2023, respectively.

The three months ended June 30, 2024 and 2023 are referred to as the second quarter of 2024 and 2023, 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, 2024 (in thousands):

Cash equivalents and marketable securities consisted of the following at June 30, 2024 (in thousands):

Cost Allowance

4 unchanged sentences

Corporate notes/bonds 9,011 — — ( 34 ) 8,977

Commercial paper — — — — —

Total $ 318,749 $ — $ 18 $ ( 460 ) $ 318,307

6 unchanged sentences

Treasuries 168,858 — 611 — 169,469

Commercial paper — — — — —

Total $ 426,937 $ — $ 611 $ ( 413 ) $ 427,135

As of March 31, 2024, the Company did not hold any marketable securities that had been in an unrealized loss position for more than twelve months.

As of June 30, 2024, the Company held 15 marketable securities that were in a continuous unrealized loss position that amounted to $ 0.04 million.

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

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

Furthermore, the Company has determined that there were no material changes in the credit risk of the securities.

As of March 31, 2024, the Company holds 13 securities with an aggregate fair value of $ 80.6 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, 2024 or 2023.

As of June 30, 2024, the Company holds 5 securities with an aggregate fair value of $ 39.2 million that had remaining maturities greater than one year .

There were no realized gains or losses on available-for-sale securities during the six months ended June 30, 2024 or 2023.

Fair Value Measurements

Assets measured at fair value on a recurring basis as of March 31, 2024 were as follows (in thousands):

Assets measured at fair value on a recurring basis as of June 30, 2024 were as follows (in thousands):

2024 Quoted Prices

48 unchanged sentences

Commitments and Contingencies

In the second quarter of 2023 , the Company entered into a license and service agreement pursuant to which it will lease manufacturing space for its continued research and development activities.

As of March 31, 2024, the lease has not commenced for accounting purposes and it is not expected to commence until the second quarter of 2024.

The license and service agreement provides for total remaining lease payments of up to $ 85.4 million over a 10-year lease term.

The Company may terminate the license and service agreement in its discretion upon twelve months' prior written notice.

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.

7 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 $ 2.0 million and $ 3.0 million in expense during the three months ended March 31, 2024 and 2023, respectively, for such reimbursement.

The Company incurred an aggregate of $ 2.5 million and $ 4.6 million in expense during the three and six months ended June 30, 2024, respectively, for such reimbursement.

The Company incurred an aggregate of $ 1.6 million and $ 4.6 million in expense during the three and six months ended June 30, 2023, respectively, for such reimbursement.

Collaboration Agreements

3 unchanged sentences

Collaboration Revenue

As of March 31, 2024, 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, 2024 (in thousands):

Balance at December 31, 2023 Additions Deductions Balance at March 31, 2024

As of June 30, 2024, 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, 2024 (in thousands):

Balance at December 31, 2023 Additions Deductions Balance at June 30, 2024

Accounts receivable $ 10,187 $ 271 $ ( 10,214 ) $ 244

2 unchanged sentences

Amendment to BMS Collaboration Agreement

In March 2024, the Company entered into an amendment (“2024 Amendment”) to extend the collaboration to November 2026, with options to extend the collaboration for up to an additional two years , and provided BMS the ability to select up to three new gene targets for research.

In March 2024, the Company entered into an amendment (“2024 Amendment”) to the Second Amended and Restated Collaboration and License Agreement, dated as of November 11 2019, by and between the Company and June (the “2019 Collaboration Agreement”) extend the collaboration to November 2026, with options to extend the collaboration for up to an additional two years , and provided BMS the ability to select up to three new gene targets for research.

The 2019 Collaboration Agreement, as amended by the 2024 Amendment, is herein referred to as the 2019 Amended Collaboration Agreement.

Accounting Assessment

3 unchanged sentences

eighteen material rights for additional development and commercialization licenses for other gene editing tools specific to a gene target and enzyme combination (or a “Program”).

As of the amendment date and March 31, 2024, the total transaction price was appropriately $ 56.7 million comprised of the remaining deferred revenue balance that was not recognized pursuant to the 2019 Amended Collaboration Agreement.

The Company utilized the most likely amount method to estimate any development and regulatory milestone payments to be received as well extension term fees.

As of March 31, 2024, there were no milestone or extension term fees included in the transaction price.

As of the amendment date and June 30, 2024, the total transaction price was appropriately $ 56.7 million, comprised of the remaining deferred revenue balance that was not recognized pursuant to the 2019 Amended Collaboration Agreement.

The Company utilized the most likely amount method to estimate any development and regulatory milestone payments to be received, as well as extension term fees.

As of June 30, 2024, there were no milestone or extension term fees included in the transaction price.

The Company considers the stage of development and the risks associated with the remaining development required to achieve the milestone, as well as whether the achievement of the milestone is outside the control of the Company or BMS.

The outstanding milestone payments and extension term fees were fully constrained as of March 31, 2024, as a result of the uncertainty of whether any of the milestones will be achieved or the term would be extended.

The outstanding milestone payments and extension term fees were fully constrained as of June 30, 2024, as a result of the uncertainty of whether any of the milestones will be achieved or the term would be extended.

The Company has determined that any commercial milestones and sales-based royalties will be recognized when the related sales occur.

6 unchanged sentences

The Company will recognize the transaction price allocated to each material right when the material right is exercised, lapsed or expired.

During the three months ended March 31, 2024, the Company did not recognize any of the $ 56.7 million transaction price.

As of March 31, 2024, $ 6.5 million was classified as short-term deferred revenue and $ 50.2 million as long-term deferred revenue in the accompanying consolidated balance sheets.

During the three months ended June 30, 2024 and six months ended June 30, 2024, the Company did not recognize any of the $ 56.7 million transaction price.

As of June 30, 2024, $ 6.5 million was classified as short-term deferred revenue and $ 50.2 million as long-term deferred revenue in the accompanying consolidated balance sheets.

Stock-based Compensation

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Research and development $ 2,125 $ 2,525 $ 5,033 $ 4,611

2 unchanged sentences

Restricted Stock Unit Awards

The following is a summary of restricted stock unit awards activity for the three months ended March 31, 2024:

The following is a summary of restricted stock unit awards activity for the six months ended June 30, 2024:

Shares Weighted Average Grant Date Fair Value Per Share

3 unchanged sentences

Forfeited ( 328,769 ) $ 15.12

Unvested restricted stock unit awards as of March 31, 2024 2,728,834 $ 10.55

The restricted stock units issued in the three months ended March 31, 2024 include 392,100 units granted to certain employees that contain performance-based vesting provisions.

The expense related to the performance-based vesting of restricted stock units was $ 3.4 million for the three months ended March 31, 2024.

There was no expense related to the performance-based vesting of restricted stock units for the three months ended March 31, 2023.

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, 2024, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 3.3 million, which the Company expects to recognize over a remaining weighted-average period of 2.94 years.

Unvested restricted stock unit awards as of June 30, 2024 2,618,361 $ 10.13

The restricted stock units issued in the six months ended June 30, 2024 include 422,000 units granted to certain employees that contain performance-based vesting provisions.

The expense related to the performance-based vesting of restricted stock units was $ 3.5 million for the six months ended June 30, 2024.

There was no expense related to the performance-based vesting of restricted stock units for the six months ended June 30, 2023.

As of June 30, 2024, total unrecognized compensation expense related to unvested restricted stock unit awards was $ 2.8 million, which the Company expects to recognize over a remaining weighted-average period of 2.78 years.

Stock Options

The following is a summary of stock option activity for the three months ended March 31, 2024:

The following is a summary of stock option activity for the six months ended June 30, 2024:

Shares Weighted Average

5 unchanged sentences

Cancelled ( 389,153 ) $ 26.41

Outstanding at March 31, 2024 7,791,363 $ 14.84 7.64 $ 296

Exercisable at March 31, 2024 2,912,017 $ 21.76 5.18 $ 241

As of March 31, 2024, total unrecognized compensation expense related to stock options was $ 1.2 million, which the Company expects to recognize over a remaining weighted-average period of 2.99 years.

Outstanding at June 30, 2024 8,268,790 $ 15.26 7.62 $ 68

Exercisable at June 30, 2024 3,607,857 $ 22.07 5.74 $ 68

As of June 30, 2024, total unrecognized compensation expense related to stock options was $ 1.6 million, which the Company expects to recognize over a remaining weighted-average period of 2.9 years.

Net Loss per Share

10 unchanged sentences

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