What changed in this filing

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Item 1. Financial Statements

2021-11-04 compared with 2021-08-10 · 112 added, 83 removed, 464 unchanged (30% of the section changed)

3 unchanged sentences

(In thousands, except share and per share amounts)

September 30,

Current assets:

25 unchanged sentences

200,000,000 shares authorized;

32,706,863 and 28,067,402 shares issued as of June 30, 2021 and December 31, 2020, respectively;

32,659,740 and 27,941,566 shares outstanding as of June 30, 2021 and December 31, 2020, respectively

40,545,949 and 28,067,402 shares issued as of September 30, 2021 and December 31, 2020, respectively;

40,525,985 and 27,941,566 shares outstanding as of September 30, 2021 and December 31, 2020, respectively

Treasury stock, at cost;

21 shares as of June 30, 2021 and no shares as of December 31, 2020

no shares as of September 30, 2021 and December 31, 2020

Additional paid-in capital

8 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Collaboration revenue

35 unchanged sentences

Balance at June 30, 2020

Issuance of common stock under employee benefit plans

Vesting of restricted stock awards

Repurchase of unvested restricted stock awards

Retirement of treasury shares

Stock-based compensation expense

Unrealized loss on marketable securities

Balance at September 30, 2020

Balance at December 31, 2020

Issuance of common stock in connection with follow-on offering, net of issuance costs

Issuance of common stock in connection with public offering, net of issuance costs

Issuance of common stock under employee benefit plans

12 unchanged sentences

Balance at June 30, 2021

Issuance of common stock in connection with public offering, net of issuance costs

Issuance of common stock under employee benefit plans

Vesting of restricted stock awards

Repurchase of unvested restricted stock awards

Retirement of treasury shares

Stock-based compensation expense

Unrealized loss on marketable securities

Balance at September 30, 2021

The accompanying notes are an integral part of these financial statements.

2 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

September 30,

Operating activities

20 unchanged sentences

Proceeds from issuance of common stock in connection with private placement, net of placement agent fees and offering costs

Proceeds from issuance of common stock in connection with follow-on offering, net of issuance costs

Proceeds from issuance of common stock in connection with public offerings, net of issuance costs

Principal payments on capital lease obligations

1 unchanged sentence

Net cash provided by financing activities

Net decrease in cash, cash equivalents and restricted cash

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

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

3 unchanged sentences

Non-cash investing and financing activities:

Offering costs unpaid at end of period

Property and equipment purchases unpaid at end of period

Public offering costs unpaid at end of period

The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of each of the periods shown above:

September 30,

Cash and cash equivalents

15 unchanged sentences

Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The accompanying consolidated financial statements and footnotes to the financial statements have been prepared on the same basis as the most recently audited annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2021 and the results of its operations and its cash flows for the three and six months ended June 30, 2021 and 2020.

The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period.

The accompanying consolidated financial statements and footnotes to the financial statements have been prepared on the same basis as the most recently audited annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of September 30, 2021 and the results of its operations and its cash flows for the three and nine months ended September 30, 2021 and 2020.

The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period.

These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2021 (the “Annual Report on Form 10-K”).

Sales of Common Stock

On July 22, 2019, the Company completed an initial public offering (“IPO”) of its common stock and issued and sold 4,500,000 shares of common stock at a public offering price of $ 16.00 per share, resulting in net proceeds of $ 63.9 million after deducting underwriting discounts and commissions and offering expenses.

Upon the closing of the IPO, all 112,500,000 shares of outstanding preferred stock automatically converted into 16,071,418 shares of common stock.

On June 9, 2020, the Company issued and sold 4,029,411 shares of common stock to investors in a private placement at a price of $ 17.00 per share, resulting in net proceeds of $ 64.3 million after deducting offering costs.

2 unchanged sentences

The Equity Distribution Agreement provides that Piper Sandler will be entitled to a sales commission equal to 3.0 % of the gross sales price per share of all shares sold under the ATM Offering.

From the initiation of the ATM Offering through June 30, 2021 , the Company has issued and sold 550,000 shares under the ATM Offering, resulting in aggregate net proceeds of $ 5.7 million after deducting issuance costs of $ 0.2 million.

From the initiation of the ATM Offering through September 30, 2021 , the Company has issued and sold 550,000 shares under the ATM Offering, resulting in aggregate net proceeds of $ 5.7 million after deducting issuance costs of $ 0.2 million.

On January 22, 2021, the Company completed a public offering of its common stock and issued and sold 4,600,000 shares of common stock at a public offering price of $ 11.00 per share, resulting in net proceeds of $ 47.4 million after deducting underwriting discounts and commissions and offering expenses.

On August 16, 2021, the Company completed a public offering of its common stock and issued and sold 7,590,000 shares of common stock at a public offering price of $ 19.00 per share, resulting in net proceeds of $ 135.5 million after deducting underwriting discounts and commissions and offering expenses.

The Company has incurred recurring losses and negative cash flows from operations since inception and has primarily funded its operations with proceeds from the sale of shares of common stock in public offerings, a private placement, and the ATM Offering, through issuances of convertible preferred stock, and from upfront payments received from the collaboration and license agreements with Acceleron Pharma Inc.

1 unchanged sentence

(“MyoKardia”), a wholly owned subsidiary of Bristol Myers Squibb Company.

As of June 30, 2021, the Company had an accumulated deficit of $ 258.3 million.

As of September 30, 2021, the Company had an accumulated deficit of $ 279.0 million.

The Company expects its operating losses and negative operating cash flows to continue into the foreseeable future as it continues to expand its research and development efforts.

10 unchanged sentences

The significant accounting policies and estimates used in the preparation of the accompanying consolidated financial statements are described in the Company’s audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K .

There have been no material changes in the Company’s significant accounting policies during the six months ended June 30, 2021.

There have been no material changes in the Company’s significant accounting policies during the nine months ended September 30, 2021.

Use of Estimates

44 unchanged sentences

Fair Value Measurements

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the fair value hierarchy classification of such fair values as of June 30, 2021 and December 31, 2020 (in thousands):

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the fair value hierarchy classification of such fair values as of September 30, 2021 and December 31, 2020 (in thousands):

Fair Value Measurements at

June 30, 2021

September 30, 2021

Cash equivalents:

12 unchanged sentences

Commercial paper

There were no transfers between fair value levels during the three and six months ended June 30, 2021.

There were no transfers between fair value levels during the three and nine months ended September 30, 2021.

Cash Equivalents and Marketable Securities

Cash equivalents and marketable securities consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):

Cash equivalents and marketable securities consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):

Fair Value Measurements at

June 30, 2021

September 30, 2021

Cash equivalents:

18 unchanged sentences

Total cash equivalents and marketable securities

There were no sales of marketable securities during the three and six months ended June 30, 2021.

As of June 30, 2021, the aggregate fair value of securities that were in an unrealized loss position for less than twelve months was $ 48.0 million.

The Company determined that it did no t hold any securities with any other-than-temporary impairment as of June 30, 2021.

As of June 30, 2021, the remaining contractual maturity of all of the Company’s marketable securities is less than one year.

As of June 30, 2021, the Company did not intend to sell, and would not be more likely than not required to sell, the securities in an unrealized loss position before recovery of their amortized cost bases.

There were no sales of marketable securities during the three and nine months ended September 30, 2021.

As of September 30, 2021, the aggregate fair value of securities that were in an unrealized loss position for less than twelve months was $ 164.2 million.

The Company determined that it did no t hold any securities with any other-than-temporary impairment as of September 30, 2021.

As of September 30, 2021, the remaining contractual maturity of all of the Company’s marketable securities is less than one year.

As of September 30, 2021, the Company did not intend to sell, and would not be more likely than not required to sell, the securities in an unrealized loss position before recovery of their amortized cost bases.

Property and Equipment, Net

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

September 30,

Lab equipment

6 unchanged sentences

Property and equipment, net

Depreciation expense for the three months ended June 30, 2021 and 2020 was $ 0.7 million and $ 0.6 million, respectively.

Depreciation expense for the six months ended June 30, 2021 and 2020 was $ 1.3 million and $ 1.1 million, respectively.

Depreciation expense for the three months ended September 30, 2021 and 2020 was $ 0.6 million and $ 0.5 million, respectively.

Depreciation expense for the nine months ended September 30, 2021 and 2020 was $ 1.9 million and $ 1.6 million, respectively.

Additional Balance Sheet Detail

Prepaid expenses and other current assets consisted of the following (in thousands):

September 30,

Prepaid expenses

3 unchanged sentences

Accrued expenses and other current liabilities consisted of the following (in thousands):

September 30,

External research and development

5 unchanged sentences

Preferred Stock

As of June 30, 2021 and December 31, 2020, 5,000,000 shares of undesignated preferred stock were authorized.

No shares of preferred stock were issued or outstanding as of June 30, 2021 and December 31, 2020.

As of September 30, 2021 and December 31, 2020, 5,000,000 shares of undesignated preferred stock were authorized.

No shares of preferred stock were issued or outstanding as of September 30, 2021 and December 31, 2020.

No dividends have been declared since inception.

As of June 30, 2021 and December 31, 2020, 200,000,000 shares of common stock, $ 0.001 par value per share, were authorized.

As of September 30, 2021 and December 31, 2020, 200,000,000 shares of common stock, $ 0.001 par value per share, were authorized.

Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders .

1 unchanged sentence

No dividends have been declared or paid by the Company since its inception.

As of June 30, 2021 and December 31, 2020, the Company has reserved for future issuance the following number of shares of common stock:

As of September 30, 2021 and December 31, 2020, the Company has reserved for future issuance the following number of shares of common stock:

September 30,

Shares reserved for exercises of outstanding stock options

4 unchanged sentences

In July 2016, the Company adopted the 2016 Stock Incentive Plan (the “2016 Plan”), which provided for the grant of restricted stock awards, restricted stock units, incentive stock options, non-statutory stock options, and other stock-based awards to the Company’s eligible employees, officers, directors, consultants, and advisors.

As of the effective date of the 2019 Stock Incentive Plan (the “2019 Plan”), and as of June 30, 2021, no shares remained available for future issuance under the 2016 Plan.

As of the effective date of the 2019 Stock Incentive Plan (the “2019 Plan”), and as of September 30, 2021, no shares remained available for future issuance under the 2016 Plan.

Any options or awards outstanding under the 2016 Plan remain outstanding and effective.

3 unchanged sentences

The number of shares initially reserved for issuance under the 2019 Plan was 2,017,142 shares, plus the shares of common stock remaining available for issuance under the 2016 Plan as of July 17, 2019.

The number of shares reserved will be annually increased on January 1, 2020 and each January 1 thereafter through January 1, 2029 by the least of (i) 2,000,000 shares, (ii) 4 % of the number of shares of the Company’s common stock outstanding on the first day of each such year or (iii) an amount determined by the Company’s board of directors.

The number of shares reserved was annually increased on January 1, 2020 and will be increased on each January 1 thereafter through January 1, 2029 by the least of (i) 2,000,000 shares, (ii) 4 % of the number of shares of the Company’s common stock outstanding on the first day of each such year or (iii) an amount determined by the Company’s board of directors.

On January 1, 2021, the number of shares reserved for issuance under the 2019 Plan was increased by 1,122,696 shares.

As of June 30, 2021, there were 1,116,934 shares available for future issuance under the 2019 Plan.

As of September 30, 2021, there were 579,016 shares available for future issuance under the 2019 Plan.

The shares of common stock underlying any awards that expire, terminate, or are otherwise surrendered, cancelled, forfeited or repurchased by the Company under the 2016 Plan or the 2019 Plan will be added back to the shares of common stock available for issuance under the 2019 Plan.

6 unchanged sentences

The shares of common stock are recorded in stockholders’ equity as they vest.

The following table summarizes the Company’s restricted stock activity under the 2019 Plan and 2016 Plan during the six months ended June 30, 2021:

The following table summarizes the Company’s restricted stock activity under the 2019 Plan and 2016 Plan during the nine months ended September 30, 2021:

Average Grant

Unvested at December 31, 2020

Unvested at June 30, 2021

Unvested at September 30, 2021

Stock Options

1 unchanged sentence

Shares issued upon the exercise of stock options are issued from the Company’s pool of authorized but unissued common stock.

The following table summarizes the Company’s stock option activity under the 2019 Plan and 2016 Plan during the six months ended June 30, 2021:

In addition to stock options granted under the 2019 Plan and 2016 Plan, the Company has granted stock options as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4), which were granted outside of the 2019 Plan and 2016 Plan.

The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2021:

Exercise Price

Outstanding at December 31, 2020

Outstanding at June 30, 2021

Exercisable at June 30, 2021

Outstanding at September 30, 2021

Exercisable at September 30, 2021

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock as of the balance sheet date for those options that had exercise prices lower than the fair value of the Company’s common stock.

The weighted average grant date fair value of stock options granted in the three and six months ended June 30, 2021 was $ 7.71 per share and $ 8.60 per share, respectively.

The weighted average grant date fair value of stock options granted in the three and six months ended June 30, 2020 was $ 9.76 per share and $ 10.94 per share, respectively.

The total intrinsic value of stock options exercised during the three and six months ended June 30, 2021 was less than $ 0.1 million and $ 0.1 million, respectively.

The total intrinsic value of stock options exercised during the three and six months ended June 30, 2020 was $ 0.8 million and $ 1.1 million, respectively .

The fair value of stock options granted during the three and six months ended June 30, 2021 and 2020 under the 2019 Plan has been calculated on the date of grant using the following weighted average assumptions:

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

The weighted average grant date fair value of stock options granted in the three and nine months ended September 30, 2021 was $ 15.25 per share and $ 10.33 per share, respectively.

The weighted average grant date fair value of stock options granted in the three and nine months ended September 30, 2020 was $ 4.84 per share and $ 10.41 per share, respectively.

The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2021 was $ 2.9 million and $ 3.0 million, respectively.

The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2020 was $ 0.1 million and $ 1.2 million, respectively .

The fair value of stock options granted during the three and nine months ended September 30, 2021 and 2020 has been calculated on the date of grant using the following weighted average assumptions:

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Risk-free interest rate

2 unchanged sentences

Expected stock price volatility

Grants Outside of the 2016 Plan and the 2019 Plan

The following table summarizes the Company’s restricted stock activity outside of the 2019 Plan and 2016 Plan during the six months ended June 30, 2021:

Restricted Stock Grants Outside of the 2016 Plan and the 2019 Plan

The following table summarizes the Company’s restricted stock activity outside of the 2019 Plan and 2016 Plan during the nine months ended September 30, 2021:

Average Grant

Unvested at December 31, 2020

Unvested at June 30, 2021

The aggregate intrinsic value of all restricted stock awards that vested during the three months ended June 30, 2021 and 2020 was $ 0.4 million and $ 6.0 million, respectively.

The aggregate intrinsic value of all restricted stock awards that vested during the six months ended June 30, 2021 and 2020 was $ 0.9 million and $ 7.6 million, respectively.

Unvested at September 30, 2021

The aggregate intrinsic value of all restricted stock awards that vested during the three months ended September 30, 2021 and 2020 was $ 0.3 million and $ 0.7 million, respectively.

The aggregate intrinsic value of all restricted stock awards that vested during the nine months ended September 30, 2021 and 2020 was $ 1.2 million and $ 8.3 million, respectively.

Stock-based Compensation Expense

1 unchanged sentence

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

General and administrative

1 unchanged sentence

Total stock-based compensation expense

As of June 30, 2021, the Company had an aggregate of $ 26.1 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted average period of 2.86 years.

As of September 30, 2021, the Company had an aggregate of $ 33.2 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted average period of 2.85 years.

2019 Employee Stock Purchase Plan

1 unchanged sentence

A total of 252,142 shares of common stock were initially reserved for issuance under the ESPP.

In addition, the number of shares of common stock reserved under the ESPP is annually increased on January 1, 2020, and each January 1 thereafter through January 1, 2029, by the least of (i) 428,571 shares of common stock, (ii) 1 % of the number of shares of the Company’s common stock outstanding on the first day of each such year or (iii) an amount determined by the Company’s board of directors.

In addition, the number of shares of common stock reserved under the ESPP was annually increased on January 1, 2020, and will be increased on each January 1 thereafter through January 1, 2029, by the least of (i) 428,571 shares of common stock, (ii) 1 % of the number of shares of the Company’s common stock outstanding on the first day of each such year or (iii) an amount determined by the Company’s board of directors.

On January 1, 2021, the number of shares reserved for issuance under the 2019 ESPP was increased by 280,674 shares.

As of June 30, 2021, there were 729,900 shares available for future issuance under the ESPP.

As of September 30, 2021, there were 729,900 shares available for future issuance under the ESPP.

Collaboration and License Agreements

39 unchanged sentences

The Company reassesses the transaction price at the end of each reporting period and as uncertain events are resolved or other changes in circumstances occur, and, if necessary, adjusts its estimate of the transaction price.

There was no change in the amount of variable consideration constrained during the three and six months ended June 30, 2021.

There was no change in the amount of variable consideration constrained during the three and nine months ended September 30, 2021.

Any consideration related to sales milestone payments (including royalties) will be recognized when the related sales occur as these amounts have been determined to relate predominantly to the license granted to Acceleron and therefore are recognized at the later of when the related sales occur or the performance obligation is satisfied.

8 unchanged sentences

Changes in estimates of total internal and external costs expected to be incurred are recognized in the period of change as a cumulative catch-up adjustment.

During the three and six months ended June 30, 2021, the Company recognized $ 2.3 million and $ 4.9 million, respectively, of collaboration revenue associated with the Acceleron Collaboration Agreement, which includes $ 1.7 million and $ 3.8 million, respectively, of revenue recognized that was included in deferred revenue as of December 31, 2020.

During the three and six months ended June 30, 2020, the Company recognized $ 2.0 million and $ 2.8 million, respectively, of collaboration revenue under the Acceleron Collaboration Agreement.

As of June 30, 2021 and December 31, 2020, the Company recorded deferred revenue of $ 4.0 million and $ 7.9 million, respectively, associated with the Acceleron Collaboration Agreement, which is classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized.

The aggregate deferred revenue balance represents the aggregate amount of the transaction price allocated to the

performance obligations that are unsatisfied as of June 30, 2021 and December 31, 2020 , respectively .

As of June 30, 2021 , the Company had received $ 2.7 million of cost reimbursement payments under the Acceleron Collaboration Agreement and $ 2.0 million associated with the achievement of specified research milestones.

During the three and nine months ended September 30, 2021, the Company recognized $ 2.9 million and $ 7.8 million, respectively, of collaboration revenue associated with the Acceleron Collaboration Agreement, which includes $ 2.3 million and $ 6.1 million, respectively, of revenue recognized that was included in deferred revenue as of December 31, 2020.

During the three and nine months ended September 30, 2020, the Company recognized $ 1.5 million and $ 4.3 million, respectively, of collaboration revenue under the Acceleron Collaboration Agreement.

As of September 30, 2021 and December 31, 2020, the Company recorded deferred revenue of $ 6.1 million and $ 7.9 million, respectively, associated with the Acceleron Collaboration Agreement, which is classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized.

The aggregate deferred revenue balance represents the aggregate amount of the transaction price allocated

to the performance obligations that are unsatisfied as of September 30, 2021 and December 31, 2020 , respectively .

As of September 30, 2021 , the Company had received $ 3.3 million of cost reimbursement payments under the Acceleron Collaboration Agreement and $ 2.0 million associated with the achievement of specified research milestones.

As of December 31, 2020 , the Company had received $ 1.7 million of cost reimbursement payments, and no milestone or royalty payments under the Acceleron Collaboration Agreement.

As of June 30, 2021 , the Company had recorded no accounts receivable under the Acceleron Collaboration Agreement.

As of September 30, 2021 , the Company had recorded no accounts receivable under the Acceleron Collaboration Agreement.

As of December 31, 2020 , the Company recorded accounts receivable of $ 2.0 million associated with the achievement of specified research milestones in December 2020.

As of June 30, 2021 , the Company recorded unbilled accounts receivable of $ 0.6 million related to reimbursable r esearch and development costs under the Acceleron Collaboration Agreement for activities performed during the three months ended June 30, 2021 .

As of September 30, 2021 , the Company recorded unbilled accounts receivable of $ 1.2 million related to reimbursable r esearch and development costs under the Acceleron Collaboration Agreement for activities performed during the three months ended September 30, 2021 .

As of December 31, 2020 , the Company recorded unbilled accounts receivable of $ 0.5 million related to reimbursable research and development costs under the Acceleron Collaboration Agreement for activities performed during the three months ended December 31, 2020 .

32 unchanged sentences

There was no change in the amount of variable consideration constrained during the three and six months ended June 30, 2021.

There was no change in the amount of variable consideration constrained during the three and nine months ended September 30, 2021.

Any consideration related to sales milestone payments (including royalties) will be recognized when the related sales occur as these amounts have been determined to relate predominantly to the license granted to MyoKardia and therefore are recognized at the later of when the related sales occur or the performance obligation is satisfied.

8 unchanged sentences

Changes in estimates of total internal and external costs expected to be incurred are recognized in the period of change as a cumulative catch-up adjustment.

During the three and six months ended June 30, 2021, the Company recognized $ 2.0 million and $ 4.2 million, respectively, of collaboration revenue associated with the MyoKardia Collaboration Agreement, all of which was included in deferred revenue as of December 31, 2020.

During the three and six months ended June 30, 2020, the Company did no t recognize any revenue under the MyoKardia Collaboration Agreement as it had not yet entered into the MyoKardia Collaboration Agreement.

As of June 30, 2021 and December 31, 2020, the Company recorded $ 5.9 million and $ 10.0 million, respectively, of deferred revenue associated with the MyoKardia Collaboration Agreement, which is classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized.

The aggregate deferred revenue balance represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of June 30, 2021.

As of June 30, 2021, t he Company had not received any milestone, royalty, or cost reimbursement payments under the MyoKardia Collaboration Agreement, other than the $2.5 million payment as prepaid research funding in July 2020 .

As of June 30, 2021, the Company has recorded unbilled accounts receivable of $ 0.1 million related to reimbursable MyoKardia Research Services costs under the MyoKardia Collaboration Agreement for activities performed during the three months ended June 30, 2021.

During the three and nine months ended September 30, 2021, the Company recognized $ 2.1 million and $ 6.3 million, respectively, of collaboration revenue associated with the MyoKardia Collaboration Agreement, which includes $ 1.5 million and $ 5.6 million, respectively, of revenue recognized that was included in deferred revenue as of December 31, 2020.

During the three and nine months ended September 30, 2020, the Company recognized $ 0.3 million of collaboration revenue associated with the MyoKardia Collaboration Agreement.

As of September 30, 2021 and December 31, 2020, the Company recorded $ 4.4 million and $ 10.0 million, respectively, of deferred revenue associated with the MyoKardia Collaboration Agreement, which is classified as either current or net of current portion in the accompanying consolidated balance sheets based on the period over which the revenue is expected to be recognized.

The aggregate deferred revenue balance represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of September 30, 2021.

As of September 30, 2021, t he Company had received $ 2.6 million of cost reimbursement payments under the MyoKardia Collaboration Agreement, including the $ 2.5 million payment as prepaid research funding in July 2020, and no milestone or royalty payments .

As of September 30, 2021, the Company recorded unbilled accounts receivable of $ 0.6 million related to reimbursable MyoKardia Research Services costs under the MyoKardia Collaboration Agreement for activities performed during the three months ended September 30, 2021.

As of December 31, 2020, the Company recorded no unbilled accounts receivable under the MyoKardia Collaboration Agreement.

19 unchanged sentences

The lease agreement requires the Company to either pay a security deposit or maintain a letter of credit of $ 1.1 million.

The Company maintains a letter of credit for this lease and has recorded the cash held to secure the letter of credit as restricted cash on the consolidated balance sheet as of June 30, 2021 and December 31, 2020.

expense associated with this lease for each of the three months ended June 30, 2021 and 2020 was approximately $ 0.5 million.

Rent expense associated with this lease for each of the six months ended June 30, 2021 and 2020 was approximately $ 1.0 million.

The future minimum lease payments associated with the lease for the Company’s current headquarters as of June 30, 2021, are as follows (in thousands):

The Company maintains a letter of credit for this lease and has recorded the cash held to secure the letter of credit as restricted cash on the consolidated balance sheet as of September 30, 2021 and December 31, 2020.

Rent expense associated with this lease for each of the three months ended September 30, 2021 and 2020 was approximately $ 0.5 million.

Rent expense associated with this lease for each of the nine months ended September 30, 2021 and 2020 was approximately $ 1.4 million.

The future minimum lease payments associated with the lease for the Company’s current headquarters as of September 30, 2021, are as follows (in thousands):

Total minimum lease payments

Amounts are for the six months ending December 31, 2021.

Amounts are for the three months ending December 31, 2021.

Other Agreements

1 unchanged sentence

If the Company exercises its rights to license the technologies, it may be subject to additional fees and milestone payments.

As of June 30, 2021, the Company has not exercised its rights to license such technologies.

As of September 30, 2021, the Company has not exercised its rights to license such technologies.

Indemnification Agreements

3 unchanged sentences

To date, the Company has not incurred any material costs as a result of such indemnifications.

The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations as of June 30, 2021 or December 31, 2020.

The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations as of September 30, 2021 or December 31, 2020.

Legal Proceedings

2 unchanged sentences

The Company expenses the costs related to its legal proceedings as they are incurred.

No such costs have been incurred during the three and six months ended June 30, 2021 and 2020.

No such costs have been incurred during the three and nine months ended September 30, 2021 and 2020.

Defined Contribution Plan

5 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Outstanding stock options

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