28 unchanged sentences
Because of these and other factors, our operating results have fluctuated in the past and are likely to do so in the future, and we do not believe that period-to-period comparisons of our operating results are a good indication of our future performance.
−Removed: Since our inception, we have incurred significant losses and, as of June 30, 2022, we had an accumulated deficit of $1.5 billion.
+Added: Since our inception, we have incurred significant losses and, as of September 30, 2022, we had an accumulated deficit of $1.6 billion.
Our losses have resulted principally from costs incurred in research and development, selling, general and administrative costs associated with our operations, and non-cash stock-based compensation expenses associated with stock options and restricted stock units granted to employees and consultants.
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Recent Accounting Pronouncements
−Removed: In December 2019, the FASB issued ASU No.
−Removed: 2019-12, Income Taxes (Topic 740) Simplifying Accounting for Income Taxes, as part of its initiative to reduce complexity in the accounting standards.
−Removed: The guidance amended certain disclosure requirements that had become redundant, outdated or superseded.
−Removed: Additionally, this guidance amends accounting for the interim period effects of changes in tax laws or rates, and simplifies aspects of the accounting for franchise taxes.
−Removed: The guidance is effective for annual periods beginning after December 15, 2020, including interim periods therein.
−Removed: The adoption of ASU 2019-12 in the first quarter of 2021 did not have a material impact on the condensed consolidated financial statements.
In August 2020, the FASB issued ASU No.
5 unchanged sentences
Research and development expenses and dollar and percentage changes as compared to the corresponding periods in the prior year are as follows (dollar amounts are presented in millions):
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Total research and development expense $ 10.6 $ 15.7 $ 38.8 $ 38.5
−Removed: Dollar increase $ 3.1 $ 5.4
−Removed: Percentage increase 30 % 24 %
+Added: Dollar (decrease) increase $ (5.1) $ 0.3
+Added: Percentage (decrease) increase (33) % 1 %
Research and development expenses consist primarily of third-party and other services principally related to nonclinical and clinical development activities, salaries and other personnel-related expenses, stock-based compensation expense, and facility and equipment costs.
−Removed: • Third-party and other services – Third-party and other services for the three months ended June 30, 2022 increased 37% to $7.6 million, and for the six months ended June 30, 2022 increased 34% to $17.0 million, as compared to the corresponding periods in 2021 primarily due to increases in both clinical trial and related development and professional and consulting fees relating to preparations for the submission of our application for regulatory approval to market sotagliflozin in the United States for heart failure.
+Added: • Third-party and other services – Third-party and other services for the three months ended September 30, 2022 decreased 54% to $4.9 million, and for the nine months ended September 30, 2022 decreased 6% to $21.9 million, as compared to the corresponding periods in 2021 primarily due to decreases in external research development costs and professional and consulting fees relating to preparations for the submission of our application for regulatory approval to market sotagliflozin in the United States for heart failure.
Third-party and other services relate principally to our clinical trial and related development activities, such as nonclinical and clinical studies and contract manufacturing.
−Removed: • Personnel – Personnel costs for the three months ended June 30, 2022 increased 61% to $3.5 million, and for the six months ended June 30, 2022 increased 32% to $6.7 million, as compared to the corresponding periods in 2021, primarily due to higher employee salaries and benefit costs as a result of increasing headcount during 2022 in preparation for commercialization of sotagliflozin.
+Added: • Personnel – Personnel costs for the three months ended September 30, 2022 increased 39% to $3.5 million, and for the nine months ended September 30, 2022 increased 34% to $10.2 million, as compared to the corresponding periods in 2021, primarily due to higher employee salaries and benefit costs as a result of increasing headcount during 2022 in preparation for commercialization of sotagliflozin.
Salaries, bonuses, employee benefits, payroll taxes, recruiting and relocation costs are included in personnel costs.
−Removed: • Stock-based compensation – Stock-based compensation expenses for the three months ended June 30, 2022 decreased 7% to $1.1 million, and for the six months ended June 30, 2022 decreased 14% to $2.1 million, as compared to the corresponding periods in 2021, primarily due to cancellation of unvested share-based awards during 2021.
−Removed: • Facilities and equipment – Facilities and equipment costs for the three months ended June 30, 2022 and 2021 were $0.3 million and $0.4 million, respectively.
−Removed: Facilities and equipment costs for the six months ended June 30, 2022 and 2021 were $0.6 million and $0.7 million, respectively.
−Removed: • Other – Other costs for the three months ended June 30, 2022 and 2021 were $0.9 million and $1.0 million, respectively.
−Removed: Other costs for the six months ended June 30, 2022 and 2021 were $1.8 million and $1.9 million, respectively.
+Added: • Stock-based compensation – Stock-based compensation expenses for the three months ended September 30, 2022 decreased 18% to $0.9 million, and for the nine months ended September 30, 2022 decreased 15% to $3.1 million, as compared to the corresponding periods in 2021, primarily due to cancellation of unvested share-based awards during 2021.
+Added: • Facilities and equipment – Facilities and equipment costs for each of the three months ended September 30, 2022 and 2021 was $0.4 million.
+Added: Facilities and equipment costs for the nine months ended September 30, 2022 and 2021 were $1.0 million and $1.2 million, respectively.
+Added: • Other – Other costs for each of the three months ended September 30, 2022 and 2021 were $0.9 million.
+Added: Other costs for the nine months ended September 30, 2022 and 2021 were $2.7 million and $2.8 million, respectively.
Selling, General and Administrative Expenses
Selling, general and administrative expenses and dollar and percentage changes as compared to the corresponding periods in the prior year are as follows (dollar amounts are presented in millions):
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
3 unchanged sentences
Selling, general and administrative expenses consist primarily of personnel costs to support our research and development activities, professional and consulting fees, stock-based compensation expense, and facility and equipment costs.
−Removed: • Personnel – Personnel costs for the three months ended June 30, 2022 increased 79% to $4.2 million, and for the six months ended June 30, 2022 increased 36% to $7.6 million, as compared to the corresponding periods in 2021, primarily due to higher employee salaries and benefit costs as a result of increasing headcount during 2022 in preparation for commercialization of sotagliflozin.
+Added: • Personnel – Personnel costs for the three months ended September 30, 2022 increased 96% to $4.7 million, and for the nine months ended September 30, 2022 increased 54% to $12.2 million, as compared to the corresponding periods in 2021, primarily due to higher employee salaries and benefit costs as a result of increasing headcount during 2022 in preparation for commercialization of sotagliflozin.
Salaries, bonuses, employee benefits, payroll taxes, recruiting and relocation costs are included in personnel costs.
−Removed: • Professional and consulting fees – Professional and consulting fees for the three months ended June 30, 2022 increased 24% to $3.5 million, and for the six months ended June 30, 2022 increased 11% to $5.7 million, as compared to the corresponding periods in 2021, primarily due to higher marketing and professional fees, partially offset by lower legal fees.
−Removed: • Stock-based compensation – Stock-based compensation expenses for the three months ended June 30, 2022 increased 8% to $1.7 million, and for the six months ended June 30, 2022 increased 10% to $3.5 million as compared to the corresponding periods in 2021.
−Removed: • Facilities and equipment – Facilities and equipment costs for the three months ended June 30, 2022 and 2021 were $0.3 million and $0.4 million, respectively.
−Removed: Facilities and equipment costs for the six months ended June 30, 2022 and 2021 were $0.6 million and $0.7 million, respectively.
−Removed: • Other – Other costs for the three months ended June 30, 2022 and 2021 were $1.0 million and $0.8 million, respectively.
−Removed: Other costs for the six months ended June 30, 2022 and 2021 were $1.8 million and $1.6 million, respectively.
+Added: • Professional and consulting fees – Professional and consulting fees for the three months ended September 30, 2022 increased 117% to $4.9 million, and for the nine months ended September 30, 2022 increased 43% to $10.6 million, as compared to the corresponding periods in 2021, primarily due to higher marketing and professional fees, partially offset by lower legal fees.
+Added: • Stock-based compensation – Stock-based compensation expenses for the three months ended September 30, 2022 increased 9% to $1.7 million, and for the nine months ended September 30, 2022 increased 9% to $5.2 million as compared to the corresponding periods in 2021 due to increasing headcount in the current year.
+Added: • Facilities and equipment – Facilities and equipment costs for the three months ended September 30, 2022 and 2021 was $0.4 million.
+Added: Facilities and equipment costs for the nine months ended September 30, 2022 and 2021 were $0.9 million and $1.1 million, respectively.
+Added: • Other – Other costs for the three months ended September 30, 2022 and 2021 were $1.0 million and $0.7 million, respectively.
+Added: Other costs for the nine months ended September 30, 2022 and 2021 were $2.8 million and $2.3 million, respectively.
Net Loss and Net Loss per Common Share
Net loss and Net loss per Common Share.
−Removed: Net loss was $24.6 million, or $0.16 per share, in the three months ended June 30, 2022 as compared to a net loss of $18.1 million, or $0.13 per share, in the corresponding period in 2021.
−Removed: Net loss was $48.1 million, or $0.32 per share, in the six months ended June 30, 2022 as compared to a net loss of $39.0 million, or $0.27 per share, in the corresponding period in 2021.
+Added: Net loss was $23.4 million, or $0.13 per share, in the three months ended September 30, 2022 as compared to a net loss of $23.1 million, or $0.16 per share, in the corresponding period in 2021.
+Added: Net loss was $71.5 million, or $0.45 per share, in the nine months ended September 30, 2022 as compared to a net loss of $62.1 million, or $0.43 per share, in the corresponding period in 2021.
Our quarterly operating results have fluctuated in the past and are likely to do so in the future, and we believe that quarter-to-quarter comparisons of our operating results are not a good indication of our future performance.
3 unchanged sentences
In March 2022, we entered into a loan and security agreement with Oxford Finance LLC that provides up to $150 million in borrowing capacity, available in four tranches, under which $25 million has been funded.
−Removed: As of June 30, 2022, we had $62.0 million in cash, cash equivalents and short-term investments.
+Added: As of September 30, 2022, we had $136.2 million in cash, cash equivalents and short-term investments.
As of December 31, 2021, we had $86.7 million in cash, cash equivalents and short-term investments.
−Removed: We used cash of $47.8 million from operations in the six months ended June 30, 2022.
+Added: We used cash of $67.3 million from operations in the nine months ended September 30, 2022.
This consisted primarily of the net loss for the period of $71.5 million and a net decrease in operating liabilities net of assets of $4.8 million, partially offset by non-cash charges of $8.3 million related to stock-based compensation expense.
−Removed: Investing activities used cash of $18.1 million in the six months ended June 30, 2022, primarily due to net purchases of investments.
−Removed: Financing activities provided cash of $23.3 million primarily from $24.2 million of net proceeds from the Oxford debt financing during March 2022, which was partially offset by $0.9 million used to repurchase common stock by retaining shares in substitution of the tax withholding obligations of recipients of restricted stock units granted under our 2017 Equity Incentive Plan with respect to the vesting of such restricted stock units.
+Added: Investing activities used cash of $95.3 million in the nine months ended September 30, 2022, primarily due to net purchases of investments.
+Added: Financing activities provided cash of $117.3 million primarily from $94.3 million of net proceeds from the issuance of common stock and $23.9 million of net proceeds from the Oxford debt financing, which were partially offset by $0.9 million used to repurchase common stock by retaining shares in substitution of the tax withholding obligations of recipients of restricted stock units granted under our 2017 Equity Incentive Plan with respect to the vesting of such restricted stock units.
Other commitments.
9 unchanged sentences
entered into an agreement to lease a 22,000 square-foot office space in Bridgewater, New Jersey to which we plan to relocate our New Jersey offices.
−Removed: The term of the lease is expected to commence in December 2022, will extend for ten years and 11 months from such commencement date and provides for escalating yearly base rent payments starting at $820,000 and increasing to $986,000 in the final year of the lease.
+Added: The lease agreement will extend for ten years and 11 months from the date that Lexicon occupies the building and provides for escalating yearly base rent payments starting at $820,000 and increasing to $986,000 in the final year of the lease.
Our future capital requirements will be substantial and will depend on many factors, including the success of our ongoing nonclinical and clinical development efforts and the ability to obtain necessary regulatory approvals of the drug candidates which are the subject of such efforts;
18 unchanged sentences
We currently do not hedge interest rate exposure or hold any derivative financial instruments in our investment portfolio.
−Removed: We had approximately $62.0 million in cash and cash equivalents and short-term investments as of June 30, 2022.
−Removed: We believe that the working capital available to us will be sufficient to meet our cash requirements for at least the next 12 months.
−Removed: We are subject to interest rate sensitivity on our outstanding Oxford Term Loans as they contain a floating rate tied to the 30-
−Removed: day LIBOR rate.
+Added: We had approximately $136.2 million in cash and cash equivalents and short-term investments as of September 30, 2022.
+Added: We believe that the working capital available to us will be sufficient to meet our cash requirements for at least the next
+Added: We are subject to interest rate sensitivity on our outstanding Oxford Term Loans as they contain a floating rate tied to the 30-day LIBOR rate.
The Oxford Term Loans interest is payable in cash monthly and matures in March 2027, unless earlier repaid in accordance with their terms.
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.