What changed in this filing

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Item 1. Financial Statements

2021-11-08 compared with 2021-08-09 · 91 added, 64 removed, 429 unchanged (27% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(In thousands, except shares and per share data) June 30,

(In thousands, except shares and per share data) September 30,

2021 December 31,

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20,000,000 shares authorized at

June 30, 2021 (unaudited) and December 31, 2020;

shares issued, and no shares outstanding at June 30, 2021

September 30, 2021 (unaudited) and December 31, 2020;

shares issued, and no shares outstanding at September 30, 2021

(unaudited) and December 31, 2020

2 unchanged sentences

80,000,000 shares authorized at

June 30, 2021 (unaudited) and December 31, 2020;

and 19,714,220 shares issued and outstanding at June 30, 2021

September 30, 2021 (unaudited) and December 31, 2020;

and 19,714,220 shares issued and outstanding at September 30, 2021

(unaudited) and December 31, 2020, respectively

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(In thousands, except share and per share data) 2021 2020 2021 2020

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Balances at June 30, 2021 22,205,032 $ — $ 521,950 $ ( 21 ) $ ( 103,389 ) $ 418,540

Issuance of common stock, net 32,952 — 1,534 — — 1,534

Stock-based compensation expense — — 3,745 — — 3,745

Unrealized gain on investments — — — 7 — 7

Net loss — — — — ( 15,589 ) ( 15,589 )

Balances at September 30, 2021 22,237,984 $ — $ 527,229 $ ( 14 ) $ ( 118,978 ) $ 408,237

Common Stock Additional Paid-in Accumulated Other Comprehensive Accumulated Total

12 unchanged sentences

Balances at June 30, 2020 19,664,059 $ — $ 360,877 $ 40 $ ( 51,221 ) $ 309,696

Issuance of common stock, net 42,811 — 298 — — 298

Stock-based compensation expense — — 1,356 — — 1,356

Unrealized loss on investments — — — ( 20 ) — ( 20 )

Net loss — — — — ( 9,610 ) ( 9,610 )

Balances at September 30, 2020 19,706,870 $ — $ 362,531 $ 20 $ ( 60,831 ) $ 301,720

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

Six Months Ended

Nine Months Ended

September 30,

(In thousands) 2021 2020

15 unchanged sentences

Purchases of property and equipment ( 27,453 ) ( 7,636 )

Purchases of short-term investments ( 38,103 ) ( 3,205 )

Proceeds from maturities of short-term investments 2,959 4,392

Purchases of long-term investments ( 21,458 ) —

Purchases of investments ( 83,810 ) ( 3,205 )

Proceeds from maturities of investments 11,033 5,877

Net cash used in investing activities ( 100,230 ) ( 4,964 )

16 unchanged sentences

On March 31, 2017, the Company converted from a California limited liability company to a Delaware C-corporation, and changed its name from Krystal Biotech LLC to Krystal Biotech, Inc.

On June 19, 2018, the Company incorporated Krystal Australia Pty Ltd., an Australian proprietary limited company, for the purpose of undertaking preclinical and clinical studies in Australia.

On April 24, 2019, the Company incorporated Jeune Aesthtics, Inc., formerly known as Jeune, Inc.

On June 19, 2018, the Company incorporated Krystal Australia Pty Ltd., an Australian proprietary limited company, a wholly-owned subsidiary, for the purpose of undertaking preclinical and clinical studies in Australia.

On April 24, 2019, the Company incorporated Jeune Aesthetics, Inc., formerly known as Jeune, Inc.

("Jeune"), in Delaware, a wholly-owned subsidiary, for the purpose of undertaking preclinical and clinical studies for aesthetic skin conditions.

We are a clinical stage biotechnology company leading the field of redosable gene therapy for the treatment of serious rare diseases.

We are a clinical stage biotechnology company leading the field of redosable gene delivery for the treatment of serious rare diseases.

Using our patented platform that is based on engineered herpes simplex virus type 1 ("HSV-1"), we create vectors that efficiently deliver therapeutic transgenes to cells of interest in multiple organ systems.

3 unchanged sentences

Our innovative technology platform is supported by in-house, commercial scale current good manufacturing practices ("cGMP") manufacturing capabilities.

As of June 30, 2021, the Company had an accumulated deficit of $ 103.4 million.

With the net proceeds raised from its public and private securities offerings, including the public offering of its common stock completed on February 1, 2021, the Company believes that its cash, cash equivalents and short-term investments of approximately $ 367.7 million as of June 30, 2021 will be sufficient to allow the Company to fund its planned operations for at least the next 12 months from the date of this Quarterly Report on Form 10-Q.

As of September 30, 2021, the Company had an accumulated deficit of $ 119.0 million.

With the net proceeds raised from its public and private securities offerings, including the public offering of its common stock completed on February 1, 2021, the Company believes that its cash, cash equivalents and short-term investments of approximately $ 343.1 million as of September 30, 2021 will be sufficient to allow the Company to fund its planned operations for at least the next 12 months from the date of this Quarterly Report on Form 10-Q.

As the Company continues to incur losses, a transition to profitability is dependent upon the successful development, approval and commercialization of its product candidates and the achievement of a level of revenues adequate to support the Company’s cost structure.

6 unchanged sentences

The accompanying unaudited interim condensed financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), as found in the Accounting Standards Codification (“ASC”), the Accounting Standards Update (“ASU”), of the Financial Accounting Standards Board (“FASB”), and the rules and regulations of the US Securities and Exchange Commission (“SEC”).

In the opinion of management, all adjustments, which consist of all normal recurring adjustments necessary for a fair presentation of the Company's financial position and results of operations for the interim periods ended September 30, 2021 and 2020, are reflected in the interim condensed consolidated financial statements.

All intercompany balances and transactions have been eliminated in consolidation.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The reclassified amounts have no impact on the Company’s previously reported financial position or results of operation.

The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

These unaudited interim condensed financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on March 1, 2021.

30 unchanged sentences

As our entire investment portfolio is considered available for use in current operations, we classify all investments as available-for-sale securities.

Available-for-sale securities are carried at fair value, with unrealized gains and losses reported in accumulated other comprehensive loss, which is a separate component of stockholders’ equity in the consolidated balance sheets.it

Fair Value of Financial Instruments

28 unchanged sentences

An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than the carrying amount of the asset.

The Company has no t recognized any impairment losses for the three and six months ended June 30, 2021 and 2020.

The Company has no t recognized any impairment losses for the three and nine months ended September 30, 2021 and 2020.

The Company accounts for its lease agreements in accordance with FASB ASC Topic 842, Leases ("ASC 842").

31 unchanged sentences

The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available.

Due to the lack of Company-specific historical option activity, the Company has estimated the expected term of its employee stock options using the “simplified” method, whereby the expected term equals the arithmetic mean of the vesting term and the original contractual term of the option.

Due to the lack of Company-specific historical option activity, the Company has estimated the expected term of its employee and non-employee stock options using the “simplified” method, whereby the expected term equals the arithmetic mean of the vesting term and the original contractual term of the option.

The risk-free interest rates are based on the US Treasury securities with a maturity date commensurate with the expected term of the associated award.

18 unchanged sentences

Common share equivalents consist of common stock issuable upon exercise of stock options and vesting of restricted stock awards.

There were 1,688,965 and 831,110 common share equivalents outstanding as of June 30, 2021 and 2020, respectively, in the form of stock options and unvested restricted stock awards, that have been excluded from the calculation of diluted net loss per common share as their effect would be anti-dilutive for all periods presented.

There were 1,900,638 and 853,336 common share equivalents outstanding as of September 30, 2021 and 2020, respectively, in the form of stock options and unvested restricted stock awards, that have been excluded from the calculation of diluted net loss per common share as their effect would be anti-dilutive for all periods presented.

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

7 unchanged sentences

Fair Value Instruments

The following tables show the Company’s cash, cash equivalents and available-for-sale securities by significant investment category as of June 30, 2021 and December 31, 2020, respectively (in thousands):

June 30, 2021

The following tables show the Company’s cash, cash equivalents and available-for-sale securities by significant investment category as of September 30, 2021 and December 31, 2020, respectively (in thousands):

September 30, 2021

Amortized Cost Gross

29 unchanged sentences

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

September 30,

2021 December 31,

3 unchanged sentences

Computer equipment and software 85 82

Laboratory equipment 5,376 4,630

Laboratory and manufacturing equipment 5,485 4,630

Total property and equipment 82,395 33,244

1 unchanged sentence

Property and equipment, net $ 78,642 $ 30,876

Depreciation expense was $ 475 thousand and $ 914 thousand for the three and six months ended June 30, 2021 and $ 394 thousand and $ 729 thousand three and six months ended June 30, 2020, respectively.

Depreciation expense was $ 474 thousand and $ 1.4 million for the three and nine months ended September 30, 2021 and $ 399 thousand and $ 1.1 million three and nine months ended September 30, 2020, respectively.

Accrued Expenses and Other Current Liabilities

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

September 30,

2021 December 31,

27 unchanged sentences

On March 5, 2021, the purchase closed and the Company determined that reclassification of the construction in progress to buildings and leasehold improvements was not appropriate as the interior of the building was not yet ready for its intended use.

The building continues to be held under construction in progress as of June 30, 2021.

The building continues to be held under construction in progress as of September 30, 2021.

The interior of the building is currently under construction and is expected to be completed and validated in 2022.

From construction completion to the closing of the purchase, the Company recognized interest expense to accrete the financial obligation to a balance that equaled the cash consideration that was paid upon the close of purchase.

For more information about the expected construction costs associated with ASTRA, see "ASTRA Contractual Obligation" below.

For more information about the expected construction costs associated with ASTRA, see "ASTRA Contractual Obligations" below.

As part of the transaction, the Company also became the accounting owner of the Ground Lease, due to obtaining control over ASTRA, and recorded the applicable operating right-of-use asset and corresponding lease liability as of October 5, 2020.

When the PSA was finalized, the Company took assignment of the Lessor's Ground Lease, in accordance with the Purchase Option, of which lease payments are based on annual payments of $ 82 thousand, and are subject to a cumulative 10 % escalation clause every 5 years through 2071.

As of June 30, 2021, future minimum commitments under the Company’s operating leases were as follows (in thousands):

2021 (remaining six months) $ 457

As of September 30, 2021, future minimum commitments under the Company’s operating leases were as follows (in thousands):

2021 (remaining three months) $ 255

Thereafter 12,786

3 unchanged sentences

Supplemental condensed consolidated balance sheet information related to leases is as follows:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Operating leases:

5 unchanged sentences

Weighted average discount rate 9.2 % 9.4 %

The Company recorded operating lease costs of $ 278 thousand and $ 497 thousand for the three and six months ended June 30, 2021 and $ 145 thousand and $ 310 thousand for the three and six months ended June 30, 2020, respectively, and variable lease costs of $ 81 thousand and $ 118 thousand for the three and six months ended June 30, 2021 and $ 15 thousand and $ 28 thousand for the three and six months ended June 30, 2020, respectively.

The Company recorded operating lease costs of $ 339 thousand and $ 836 thousand for the three and nine months ended September 30, 2021 and $ 148 thousand and $ 458 thousand for the three and nine months ended September 30, 2020, respectively, and variable lease costs of $ 65 thousand and $ 183 thousand for the three and nine months ended September 30, 2021 and $ 60 thousand and $ 88 thousand for the three and nine months ended September 30, 2020, respectively.

Agreements with Contract Manufacturing Organizations and Contract Research Organizations

3 unchanged sentences

The Company is obligated to make milestone payments under certain of these agreements.

The estimated remaining commitment as of June 30, 2021 under these agreements is approximately $ 3.8 million.

The estimated remaining commitment as of September 30, 2021 under these agreements is approximately $ 2.6 million.

The Company may also be responsible for the payment of a monthly service fee for project management services for the duration of any agreements.

The Company has incurred expenses under these agreements of $ 718 thousand and $ 2.5 million for the three and six months ended June 30, 2021 and $ 330 thousand and $ 964 thousand for the three and six months ended June 30, 2020, respectively.

Other Contractual Obligations

The Company has contracted with various third parties to facilitate, coordinate and perform agreed upon market research activities relating to our lead product candidate, B-VEC.

The Company has incurred expenses under these agreements of $ 744 thousand and $ 3.3 million for the three and nine months ended September 30, 2021 and $ 1.3 million and $ 2.3 million for the three and nine months ended September 30, 2020, respectively.

Commercial Preparedness Activities

The Company has contracted with various third parties to facilitate, coordinate and perform agreed upon commercial preparedness and market research activities relating to our lead product candidate, B-VEC.

These contracts typically call for the payment of fees for services upon the achievement of certain milestones.

Business activities being performed under these contracts primarily include market research and other related activities.

The estimated remaining commitment as of June 30, 2021 is $ 4.0 million.

The Company has incurred expenses under these activities of $ 974 thousand and $ 2.3 million for the three and six months ended June 30, 2021 and $ 489 thousand for the three and six months ended June 30, 2020, respectively.

The estimated remaining commitment as of September 30, 2021 is $ 3.9 million.

The Company has incurred expenses under these activities of $ 1.8 million and $ 4.1 million for the three and nine months ended September 30, 2021 and $ 582 thousand and $ 1.1 million for the three and nine months ended September 30, 2020, respectively.

ASTRA Contractual Obligations

2 unchanged sentences

These contracts typically call for the payment of fees for services or materials upon the achievement of certain milestones.

The estimated remaining commitment as of June 30, 2021 is $ 38.0 million.

The Company has included costs incurred to-date associated with ASTRA within construction in progress as of June 30, 2021.

The estimated remaining commitment as of September 30, 2021 is $ 39.4 million.

The Company has included costs incurred to-date associated with ASTRA within construction in progress as of September 30, 2021.

On June 30, 2021, the Company entered into a Standard Form of Contract for Construction and the corresponding General Conditions of the Contract for Construction (collectively, the “Agreement”) with The Whiting-Turner Contracting Company (“Whiting-Turner”), pursuant to which Whiting-Turner is constructing and managing the construction of ASTRA.

Subject to certain conditions in the Agreement, the Company will pay Whiting-Turner a contract price consisting of the cost of work plus a fee equal to 1.75 % of the cost of work, subject to a guaranteed maximum price to be agreed upon in an amendment to the Agreement at a later date.

Effective September 13, 2021, the Company entered into a guaranteed maximum price amendment (the "Amendment") to the Agreement to set forth the guaranteed maximum price, as well as the date by which Whiting-Turner is to achieve

Substantial Completion (as defined in the Agreement).

Under the Amendment, the guaranteed maximum price to be paid by the Company is $ 78.9 million, subject to certain additions and deductions by change orders as provided by the Agreement, and the date of Substantial Completion of Whiting-Turner's work under the Agreement is March 30, 2022.

Whiting-Turner’s work under the Agreement represents a portion of the work necessary to complete construction of the ASTRA facility and, therefore the date of Substantial Completion of Whiting-Turner’s work under the Agreement does not equate to the date of completion of ASTRA.

The guaranteed maximum price under the Agreement constitutes only a portion of the total estimated cost of building and equipping ASTRA.

Legal Proceedings

On May 1, 2020, a complaint was filed against us in the United States District Court for the Western District of Pennsylvania by PeriphaGen, Inc., which also named our Chief Executive Officer and Chief Operating Officer, Krish Krishnan and Suma Krishnan, respectively.

On May 1, 2020, a complaint was filed against us in the United States District Court for the Western District of Pennsylvania by PeriphaGen, Inc.

("PeriphaGen"), which also named our Chief Executive Officer and Chief Operating Officer, Krish Krishnan and Suma Krishnan, respectively.

The complaint alleges breach of contract and misappropriation of trade secrets, which secrets the plaintiff asserts were used to develop our product candidates, including the vector backbones, and our STAR-D platform.

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Fact discovery is ongoing.

PeriphaGen is seeking monetary damages, injunctive relief, attorneys' fees and costs.

While we are unable to provide any assurances as to the ultimate outcome of the case, we believe the allegations in the complaint are without merit, and we intend to vigorously defend against them.

We are currently unable to estimate the costs and timing of any litigation, including any potential damages if PeriphaGen were to prevail on its claims.

The Company has received insurance proceeds during fiscal year 2021 relating to legal defense costs and expenses associated with the PeriphaGen litigation.

During the three and nine months ended September 30, 2021, the Company has received $ 954 thousand of insurance proceeds and an additional $ 619 thousand has been approved for reimbursement, which is expected to be received in November 2021 and has been recorded as a receivable within Prepaid Expenses and Other Current Assets on the Condensed Consolidated Balance Sheet as management determined that the amount was probable of collection.

The reimbursements have been recorded as an offset to our legal fees included in General and Administrative expenses on the Condensed Consolidated Statements of Operations and within Operating Activities on the Condensed Consolidated Statements of Cash Flows.

Capitalization

5 unchanged sentences

The issuance and sale of the Placement Shares by the Company under the Sales Agreement will be made pursuant to the Company's effective "shelf" registration statement on Form S-3.

During the six months ended June 30, 2021, 262,500 shares of common stock were issued pursuant to the ATM Program at a weighted average price of $ 66.50 per share for net proceeds of $ 17.5 million, resulting in a remaining $ 132.5 million available for issuance under the ATM Program.

During the nine months ended September 30, 2021, 262,500 shares of common stock were issued pursuant to the ATM Program at a weighted average price of $ 66.50 per share for net proceeds of $ 16.9 million after deducting underwriting discounts and commissions of approximately $ 524 thousand, resulting in a remaining $ 132.5 million available for issuance under the ATM Program.

On May 21, 2020, the Company completed a public offering of 2,275,000 shares of its common stock to the public at $ 55.00 per share.

2 unchanged sentences

Stock Options

Stock options granted to employees vest ratably over four-year periods and options granted to directors of the company vest ratably over one year to four-year periods.

Stock options granted to employees a nd non-employees ve st ratably over four-year periods and stock options granted to directors of the company vest ratably over one year to four-year periods.

Stock options have a life of ten years .

The Company granted 297,500 and 799,950 stock options to employees and directors of the Company during the three and six months ended June 30, 2021, respectively, and 315,400 and 544,400 stock options to employees and directors of the Company during the three and six months ended June 30, 2020, respectively.

The Company granted 322,500 and 1,122,450 stock options to employees and directors of the Company during the three and nine months ended September 30, 2021, respectively, and 195,850 and 740,250 stock options to employees and directors of the Company during the three and nine months ended September 30, 2020, respectively.

The Company granted 50,000 and zero stock options to non-employees during the three and nine months ended September 30, 2021 and 2020, respectively.

The following table summarizes the Company’s stock option activity:

7 unchanged sentences

Cancelled or forfeited ( 172,000 ) $ 61.28

Outstanding at June 30, 2021 1,590,165 $ 56.77 9.0 $ 22,838

Exercisable at June 30, 2021 253,189 $ 29.73 6.9 $ 9,690

(1) Aggregate intrinsic value represents the difference between the closing stock price of our common stock on June 30, 2021 and the exercise price of outstanding in-the-money options.

The total intrinsic value (the amount by which the fair market value exceed the exercise price) of stock options exercised during the three and six months ended June 30, 2021 was $ 808 thousand and $ 872 thousand, respectively, and during the three and six months ended June 30, 2020 was $ 656 thousand and $ 1.2 million, respectively.

The weighted-average grant-date fair value per share of options granted to employees during the three and six months ended June 30, 2021 was $ 42.53 and $ 47.25 , respectively, and during the three and six months ended June 30, 2020 was $ 29.78 and $ 31.71 , respectively.

There was $ 49.0 million of unrecognized stock-based compensation expense related to employees’ option awards that is expected to be recognized over a weighted-average period of 3.4 years as of June 30, 2021.

The Company has recorded aggregate stock-based compensation expense related to the issuance of stock option awards in the condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Expired ( 2,500 ) $ 78.89

Outstanding at September 30, 2021 1,801,838 $ 55.78 9.1 $ 9,456

Exercisable at September 30, 2021 265,843 $ 30.02 7.4 $ 6,087

(1) Aggregate intrinsic value represents the difference between the closing stock price of our common stock on September 30, 2021 and the exercise price of outstanding in-the-money options.

The total intrinsic value (the amount by which the fair market value exceeds the exercise price) of stock options exercised during the three and nine months ended September 30, 2021 was $ 348 thousand and $ 1.2 million, respectively, and during the three and nine months ended September 30, 2020 was $ 1.7 million and $ 2.9 million, respectively.

The weighted-average grant-date fair value per share of options granted to employees and directors during the three and nine months ended September 30, 2021 was $ 35.00 and $ 43.73 , respectively, and during the three and nine months ended September 30, 2020 was $ 27.44 and $ 30.58 , respectively.

The weighted-average grant-date fair value per share of options granted to non-employees during the three and nine months ended September 30, 2021 was $ 33.93 and $ 33.93 , respectively, and during the three and nine months ended September 30, 2020 was zero , respectively.

There was $ 51.9 million of unrecognized stock-based compensation expense related to employees and directors’ option awards that is expected to be recognized over a weighted-average period of 3.3 years as of September 30, 2021.

There was $ 1.7 million of unrecognized stock-based compensation expense related to non-employees’ option awards that is expected to be recognized over a weighted-average period of 3.9 years as of September 30, 2021.

The Company has recorded aggregate stock-based compensation expense related to the issuance of stock option awards in the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

4 unchanged sentences

We capitalize the portion of stock-based compensation that relates to work performed on the construction of new buildings.

There was $ 66 thousand and $ 103 thousand of stock-based compensation that was capitalized in the three and six months ended June 30, 2021, respectively, and zero of stock-based compensation that was capitalized in the three and six months ended June 30, 2020, respectively.

The Company recorded stock-based compensation expense of $ 3.7 million and $ 5.8 million for the three and six months ended June 30, 2021, respectively, and $ 807 thousand and $ 1.3 million for the three and six months ended June 30, 2020, respectively.

The fair value of options was estimated at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions for the three and six months ended June 30, 2021 and 2020:

Three Months Ended June 30, Six Months Ended June 30,

There was $ 79 thousand and $ 182 thousand of stock-based compensation that was capitalized in the three and nine months ended September 30, 2021, respectively, and zero of stock-based compensation that was capitalized in the three and nine months ended September 30, 2020, respectively.

The Company recorded stock-based compensation expense of $ 3.2 million and $ 9.0 million for the three and nine months ended September 30, 2021, respectively, and $ 1.4 million and $ 2.7 million for the three and nine months ended September 30, 2020, respectively.

The fair value of options was estimated at the date of grant using the Black-Scholes valuation model with the following weighted-average assumptions for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

7 unchanged sentences

Restricted stock awards have a life of ten years.

The Company granted zero and 98,800 RSAs to employees of the Company during the three and six months ended June 30, 2021, respectively, and zero RSAs to employees of the Company during the three and six months ended June 30, 2020, respectively.

The Company granted zero and 98,800 RSAs to employees of the Company during the three and nine months ended September 30, 2021, respectively, and zero RSAs to employees of the Company during the three and nine months ended September 30, 2020.

The following table summarizes the Company’s RSA activity:

3 unchanged sentences

Forfeited — $ —

Non-vested RSAs as of June 30, 2021 98,800 $ 78.89

As of June 30, 2021, 98,800 RSAs were outstanding.

The fair value of each restricted stock was $ 78.89 reflecting the closing price of our common stock on the grant date.

The Company recorded stock-based compensation expense related to RSAs of $ 486 thousand and $ 668 thousand for the three and six months ended June 30, 2021 and zero for the three and six months ended June 30, 2020, respectively, within general and administrative expenses in the accompanying condensed consolidated statements of operations (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Non-vested RSAs as of September 30, 2021 98,800 $ 78.89

As of September 30, 2021, 98,800 RSAs were outstanding.

The fair value of each restricted stock award was $ 78.89 reflecting the closing price of our common stock on the grant date.

The Company recorded stock-based compensation expense related to RSAs of $ 491 thousand and $ 1.2 million for the three and nine months ended September 30, 2021, respectively, and zero for the three and nine months ended September 30, 2020, within general and administrative expenses in the accompanying condensed consolidated statements of operations (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2021 2020 2021 2020

2 unchanged sentences

Total stock-based compensation $ 491 $ — $ 1,159 $ —

Shares remaining available for grant under the Company’s stock incentive plan were 1,626,006 , with a sublimit for incentive stock options of 379,566 , at June 30, 2021.

Shares remaining available for grant under the Company’s stock incentive plan were 1,381,481 , with a sublimit for incentive stock options of 379,921 , at September 30, 2021.

Related Party Transactions

5 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