☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
84-462-0206
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.0001 | BNTC | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company |
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ITEM 1. | Financial Statements (unaudited) | 4 | ||||
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ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||
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ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk | 40 | ||||
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ITEM 4. | Controls and Procedures | 40 | ||||
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ITEM 1. | Legal Proceedings | 41 | ||||
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ITEM 1A. | Risk Factors | 41 | ||||
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ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 41 | ||||
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ITEM 3. | Defaults Upon Senior Securities | 41 | ||||
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ITEM 4. | Mine Safety Disclosures | 41 | ||||
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ITEM 5. | Other Information | 41 | ||||
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ITEM 6. | Exhibits | 42 | ||||
43 |
including the potential duration of treatment effects and the potential for a “one shot” cure;
ITEM 1. | Financial Statements |
Assets Current assets: Cash and cash equivalents Trade and other receivables Other current assets Total current assets Property and equipment, net Deposits Other assets Right-of-use assets Total assets Liabilities and Stockholders’ Equity Current liabilities: Trade and other payables Accrued employee benefits Lease liabilities, current portion Total current liabilities Lease liabilities, less current portion Total liabilities Commitments and contingencies (Note 12) Stockholders’ equity: Common stock, $0.0001 par value—10,000,000 shares authorized; 4,818,050 and 1,108,374 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Total stockholders’ equity Total liabilities and stockholders’ equity March 31, June 30, 2021 2020 (Unaudited) $ 11,988 $ 9,801 10 59 409 949 12,407 10,809 563 374 9 9 197 — 252 395 $ 13,428 $ 11,587 $ 2,005 $ 741 231 203 208 192 2,444 1,136 54 213 2,498 1,349 5 1 138,632 128,826 (126,116 ) (116,636 ) (1,591 ) (1,953 ) 10,930 10,238 $ 13,428 $ 11,587 Cash and cash equivalents $ 15,727 $ 19,769 Trade and other receivables 3 25 Prepaid and other assets 642 814 Total current assets 16,372 20,608 Property and equipment, net 323 375 Deposits 25 9 Other assets 169 185 947 202 Total assets $ 17,836 $ 21,379 Current liabilities: Trade and other payables $ 1,106 $ 880 Accrued employee benefits 301 276 Lease liabilities, current portion 194 213 Total current liabilities 1,601 1,369 Lease liabilities, less current portion 760 0 Total liabilities 2,361 1,369 Commitments and contingencies (Note 12) 0 0 Stockholders’ equity: Common stock, $0.0001 par value—10,000,000 shares authorized; 8,171,690 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively 1 1 151,854 151,583 Accumulated deficit (135,164 ) (130,119 ) Accumulated other comprehensive loss (1,216 ) (1,455 ) Total stockholders’ equity 15,475 20,010 $ 17,836 $ 21,379
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue: | ||||||||||||||||
Revenues from customers | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
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Total revenues | 1 | 28 | 57 | 137 | ||||||||||||
Operating expenses | ||||||||||||||||
Royalties and license fees | 7 | 47 | 122 | (233 | ) | |||||||||||
Research and development | 2,758 | 805 | 4,700 | 2,095 | ||||||||||||
General and administrative | 1,029 | 1,287 | 4,976 | 3,669 | ||||||||||||
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Total operating expenses | 3,794 | 2,139 | 9,798 | 5,531 | ||||||||||||
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Loss from operations | (3,793 | ) | (2,111 | ) | (9,741 | ) | (5,394 | ) | ||||||||
Other income (loss): | ||||||||||||||||
Foreign currency transaction gain (loss) | (112 | ) | (7 | ) | (167 | ) | 4 | |||||||||
Interest income (expense), net | (2 | ) | 16 | (5 | ) | 52 | ||||||||||
Other income, net | — | — | 37 | — | ||||||||||||
Unrealized loss on investment | (2 | ) | — | (3 | ) | (1 | ) | |||||||||
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Total other income (loss), net | (116 | ) | 9 | (138 | ) | 55 | ||||||||||
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Net loss | $ | (3,909 | ) | $ | (2,102 | ) | $ | (9,879 | ) | $ | (5,339 | ) | ||||
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Other comprehensive income (loss): | ||||||||||||||||
Unrealized foreign currency translation gain (loss) | (24 | ) | (901 | ) | 362 | (869 | ) | |||||||||
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Total other comprehensive income (loss) | (24 | ) | (901 | ) | 362 | (869 | ) | |||||||||
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Total comprehensive loss | $ | (3,933 | ) | $ | (3,003 | ) | $ | (9,517 | ) | $ | (6,208 | ) | ||||
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Net loss | $ | (3,909 | ) | $ | (2,102 | ) | $ | (9,879 | ) | $ | (5,339 | ) | ||||
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Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.82 | ) | $ | (1.96 | ) | $ | (2.93 | ) | $ | (5.36 | ) | ||||
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Weighted average number of shares outstanding: basic and diluted | 4,747,059 | 1,070,957 | 3,375,228 | 995,246 | ||||||||||||
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Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Revenue: | ||||||||
Revenues from customers | $ | 0 | $ | 55 | ||||
Total revenues | 0 | 55 | ||||||
Operating expenses | ||||||||
Royalties and license fees | 0 | 134 | ||||||
Research and development | 2,780 | 774 | ||||||
General and administrative | 2,042 | 1,837 | ||||||
Total operating expenses | 4,822 | 2,745 | ||||||
Loss from operations | (4,822 | ) | (2,690 | ) | ||||
Other income (loss): | ||||||||
Foreign currency transaction loss | (240 | ) | (54 | ) | ||||
Interest expense, net | (1 | ) | (1 | ) | ||||
Other income, net | — | 27 | ||||||
Unrealized gain on investment | 18 | — | ||||||
Total other loss, net | (223 | ) | (28 | ) | ||||
Net loss | $ | (5,045 | ) | $ | (2,718 | ) | ||
Other comprehensive income: | ||||||||
Unrealized foreign currency translation gain | 239 | 178 | ||||||
Total other comprehensive income | 239 | 178 | ||||||
Total comprehensive loss | $ | (4,806 | ) | $ | (2,540 | ) | ||
Net loss | $ | (5,045 | ) | $ | (2,718 | ) | ||
Net loss per share: | ||||||||
Basic and diluted | $ | (0.62 | ) | $ | (2.45 | ) | ||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 8,171,690 | 1,108,374 | ||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2019 | 856,765 | $ | 1 | $ | 127,327 | $ | (108,870 | ) | $ | (1,864 | ) | $ | 16,594 | |||||||||||
Common stock sold for cash, net of issuance costs of $240 | 186,666 | — | 1,720 | — | — | 1,720 | ||||||||||||||||||
Issuance of pre-purchased warrants, net of issuance costs of $240 | — | — | 50 | — | — | 50 | ||||||||||||||||||
Share-based compensation | — | — | 55 | — | — | 55 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (61 | ) | 61 | — | — | |||||||||||||||||
Foreign currency translation loss | — | — | — | — | (304 | ) | (304 | ) | ||||||||||||||||
Net loss | — | — | — | (1,147 | ) | (1,147 | ) | |||||||||||||||||
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Balance at September 30, 2019 | 1,043,431 | $ | 1 | $ | 129,091 | $ | (109,956 | ) | $ | (2,168 | ) | $ | 16,968 | |||||||||||
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Exercise of pre-funded warrants | 27,526 | — | — | — | — | — | ||||||||||||||||||
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Share-based compensation | — | — | 37 | — | — | 37 | ||||||||||||||||||
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Forfeiture of share-based payments | — | — | (319 | ) | 319 | — | — | |||||||||||||||||
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Foreign currency translation gain | — | — | — | — | 336 | 336 | ||||||||||||||||||
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Net loss | — | — | — | (2,090 | ) | — | (2,090 | ) | ||||||||||||||||
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Balance at December 31, 2019 | 1,070,957 | $ | 1 | $ | 128,809 | $ | (111,727 | ) | $ | (1,832 | ) | $ | 15,251 | |||||||||||
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Share-based compensation | — | — | 88 | — | — | 88 | ||||||||||||||||||
Foreign currency translation gain | — | — | — | — | (901 | ) | (901 | ) | ||||||||||||||||
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Net loss | — | — | — | (2,102 | ) | — | (2,102 | ) | ||||||||||||||||
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Balance at March 31, 2020 | 1,070,957 | $ | 1 | $ | 128,897 | $ | (113,829 | ) | $ | (2,733 | ) | $ | 12,336 | |||||||||||
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Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2020 | 1,108,374 | $ | 1 | $ | 128,826 | $ | (116,636 | ) | $ | (1,953 | ) | $ | 10,238 | |||||||||||
Share-based compensation | — | — | 38 | — | — | 38 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (14 | ) | 14 | — | — | |||||||||||||||||
Foreign currency translation gain | — | — | — | — | 178 | 178 | ||||||||||||||||||
Net loss | — | — | — | (2,718 | ) | (2,718 | ) | |||||||||||||||||
Balance at September 30, 2020 | 1,108,374 | $ | 1 | $ | 128,850 | $ | (119,340 | ) | $ | (1,775 | ) | $ | 7,736 | |||||||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2020 | 1,108,374 | $ | 1 | $ | 128,826 | $ | (116,636 | ) | $ | (1,953 | ) | $ | 10,238 | |||||||||||
Share-based compensation | — | — | 38 | — | — | 38 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (14 | ) | 14 | — | — | |||||||||||||||||
Foreign currency translation gain | — | — | — | — | 178 | 178 | ||||||||||||||||||
Net loss | — | — | — | (2,718 | ) | (2,718 | ) | |||||||||||||||||
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Balance at September 30, 2020 | 1,108,374 | $ | 1 | $ | 128,850 | $ | (119,340 | ) | $ | (1,775 | ) | $ | 7,736 | |||||||||||
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Issuance of common stock and pre-funded warrants sold for cash, net of issuance costs of $1,643 | 3,150,514 | 3 | 9,848 | — | — | 9,851 | ||||||||||||||||||
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Exercise of pre-funded warrants | 281,581 | — | — | — | — | — | ||||||||||||||||||
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Share-based compensation | — | — | 82 | — | — | 82 | ||||||||||||||||||
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Forfeiture of share-based payments | — | — | (385 | ) | 385 | — | — | |||||||||||||||||
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Foreign currency translation gain | — | — | — | — | 208 | 208 | ||||||||||||||||||
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Net loss | — | — | — | (3,252 | ) | — | (3,252 | ) | ||||||||||||||||
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Balance at December 31, 2020 | 4,540,469 | $ | 4 | $ | 138,395 | $ | (122,207 | ) | $ | (1,567 | ) | $ | 14,625 | |||||||||||
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Exercise of pre-funded warrants | 277,581 | 1 | 2 | — | — | 3 | ||||||||||||||||||
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Share-based compensation | — | — | 235 | — | — | 235 | ||||||||||||||||||
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Foreign currency translation loss | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||||
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Net loss | — | — | — | (3,909 | ) | — | (3,909 | ) | ||||||||||||||||
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Balance at March 31, 2021 | 4,818,050 | $ | 5 | $ | 138,632 | $ | (126,116 | ) | $ | (1,591 | ) | $ | 10,930 | |||||||||||
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Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2021 | 8,171,690 | $ | 1 | $ | 151,583 | $ | (130,119 | ) | $ | (1,455 | ) | $ | 20,010 | |||||||||||
Share-based compensation | — | — | 271 | — | — | 271 | ||||||||||||||||||
Foreign currency translation gain | — | — | — | — | 239 | 239 | ||||||||||||||||||
Net loss | — | — | — | (5,045 | ) | — | (5,045 | ) | ||||||||||||||||
Balance at September 30, 2021 | 8,171,690 | $ | 1 | $ | 151,854 | $ | (135,164 | ) | $ | (1,216 | ) | $ | 15,475 | |||||||||||
Nine Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (9,879 | ) | $ | (5,339 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 179 | 150 | ||||||
Amortization of right-of-use assets | 143 | 138 | ||||||
Loss on disposal of fixed assets | — | 1 | ||||||
Unrealized loss on investment | 3 | 1 | ||||||
Share-based compensation expense | 355 | 180 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 21 | 2,494 | ||||||
Other assets | 377 | (69 | ) | |||||
Trade and other payables | 1,214 | (1,197 | ) | |||||
Accrued employee benefits | 55 | — | ||||||
Lease liabilities | (143 | ) | (749 | ) | ||||
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Net cash used in operating activities | (7,675 | ) | (4,390 | ) | ||||
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Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (362 | ) | (82 | ) | ||||
Proceeds from disposal of property and equipment | — | 1 | ||||||
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Net cash used in investing activities | (362 | ) | (81 | ) | ||||
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Cash flows from financing activities: | ||||||||
Proceeds from issues of shares and pre-funded warrants | 11,497 | 2,250 | ||||||
Shares and pre-funded warrant issuance costs | (1,643 | ) | (480 | ) | ||||
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Net cash provided by financing activities | 9,854 | 1,770 | ||||||
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Effects of exchange rate changes on cash and cash equivalents | 370 | (1,617 | ) | |||||
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Net increase (decrease) in cash and cash equivalents | 2,187 | (4,318 | ) | |||||
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Cash and cash equivalents, beginning of period | 9,801 | 15,718 | ||||||
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Cash and cash equivalents, end of period | $ | 11,988 | $ | 11,400 | ||||
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Supplemental disclosure of cash flow information: | ||||||||
Initial measurement of operating lease right-of-use assets and liabilities | $ | — | $ | (579 | ) | |||
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Three Months Ended | ||||||||
September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (5,045 | ) | $ | (2,718 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 52 | 45 | ||||||
Amortization of right-of-use | 50 | 47 | ||||||
Unrealized loss on investment | (18 | ) | 0 | |||||
Share-based compensation expense | 271 | 38 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 0 | 27 | ||||||
Other assets | 179 | 374 | ||||||
Trade and other payables | 293 | (119 | ) | |||||
Accrued employee benefits | (8 | ) | (8 | ) | ||||
Lease liabilities | (52 | ) | (46 | ) | ||||
Net cash used in operating activities | (4,278 | ) | (2,360 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | 0 | (173 | ) | |||||
Net cash used in investing activities | 0 | (173 | ) | |||||
Effects of exchange rate changes on cash and cash equivalents | 236 | 182 | ||||||
Net decrease in cash and cash equivalents | (4,042 | ) | (2,351 | ) | ||||
Cash and cash equivalents, beginning of period | 19,769 | 9,801 | ||||||
Cash and cash equivalents, end of period | $ | 15,727 | $ | 7,450 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Re-measurement of operatinglease right-of-use assets | $ | 794 | $ | 0 | ||||
On November 27, 2019, BBL announced
In accordance with the U.S. Securities and Exchange Commission’s (“SEC”) Staff Accounting Bulletin Topic 4C, all issued and outstanding shares of the Company’s common stock have been retroactively adjusted in these consolidated financial statements to reflect the 300:1 ratio and share consolidation as if it occurred on July 1, 2019.
The terms the “Company,” “we,” “us,” “our” and similar terms used herein refer (i), prior to the re-domiciliation to BBL, an Australian corporation, and its subsidiaries, and (ii), following the re-domiciliation, to Benitec Biopharma Inc., a Delaware corporation, and its subsidiaries (including BBL).
US.
Principal place of business/country of incorporation | Ownership Fiscal Year 2020 | Ownership Fiscal Year 2019 | ||||||||
Benitec Biopharma Proprietary Limited (“BBL”) | Australia | 100 | % | — | ||||||
Benitec Australia Proprietary Limited | Australia | 100 | % | 100 | % | |||||
Benitec Limited | United Kingdom | 100 | % | 100 | % | |||||
Benitec, Inc. | USA | 100 | % | 100 | % | |||||
Benitec LLC | USA | 100 | % | 100 | % | |||||
RNAi Therapeutics, Inc. | USA | 100 | % | 100 | % | |||||
Tacere Therapeutics, Inc. | USA | 100 | % | 100 | % |
Principal place of business/country of incorporation | ||
Benitec Biopharma Proprietary Limited (“BBL”) | Australia | |
Benitec Australia Proprietary Limited | Australia | |
Benitec Limited | United Kingdom | |
Benitec, Inc. | USA | |
Benitec LLC | USA | |
RNAi Therapeutics, Inc. | USA | |
Tacere Therapeutics, Inc. | USA | |
Benitec IP Holdings, Inc. | USA |
The Company is continuing to monitor the impact of the pandemic of the novel strain of coronavirus COVID-19 (“COVID-19”) on all aspects of its business, including how it will impact our employees, suppliers, vendors and business partners. While the Company did experience some disruption from COVID-19 including disruption of the timing and completion of certain pre-clinical trials we are unable to predict the overall impact that COVID-19 will have on our financial position and operating results due to numerous uncertainties.
2021.
gains.
Level 1: | Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. |
Level 2: | Inputs, other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. |
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Software | 3-4 years | |
Lab equipment | 3-7 years | |
Computer hardware | 3-5 years | |
Leasehold improvements | shorter of the lease term or estimated useful lives |
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Government Research and Development Grants
Government grants are recognized at fair value where there is reasonable assurance that the grant will be received, and all grant conditions will be met. Grants relating to expense items are recognized as income over the periods necessary to match the grant costs they are compensating.
Grant income is generated through the Australian federal government’s Research and Development Tax Incentive program, under which the government provides a cash refund for 43.5% of eligible research and development expenditures. This grant is available for our research and development activities in Australia, as well as activities in the United States to the extent such U.S.-based expenses relate to our activities in Australia, do not exceed half the expenses for the relevant activities and are approved by the Australian government. Grants are recorded when a reliable estimate can be made.
The Company will not be claiming the Australian Government research and development grants going forward.
The Company adopted FASB Accounting Standard Update (“ASU”) 2018-07 and accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair value of such awards over the service period.
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Revenues from customers (US$’000) | Three Months ended September 30, 2021 | Three Months ended September 30, 2020 | ||||||
Licensing revenue from services transferred overtime | $ | — | $ | 55 | ||||
(US$’000) | September 30, 2021 | June 30, 2021 | ||||||
Cash at Bank | $ | 15,727 | $ | 19,769 | ||||
Total | $ | 15,727 | $ | 19,769 | ||||
(US$’000) | September 30, 2021 | June 30, 2021 | ||||||
Prepaid expenses | $ | 763 | $ | 967 | ||||
Security deposit | 14 | 15 | ||||||
Market value of listed shares | 34 | 17 | ||||||
Total other assets | 811 | 999 | ||||||
Less: non-current portion | (169 | ) | (185 | ) | ||||
Current portion | $ | 642 | $ | 814 | ||||
4. Revenue
Three Months Ended | Nine Months Ended | |||||||||||||||
Revenues from customers (US$’000) | March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | ||||||||||||
Licensing revenue | $ | 1 | $ | — | $ | 57 | $ | 60 | ||||||||
Royalty revenue | — | 28 | — | 73 | ||||||||||||
Service revenue | — | — | — | 4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | 1 | — | — | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Nine Months Ended March 31, 2021 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | 57 | — | — | 57 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 57 | $ | — | $ | — | $ | 57 | ||||||||
|
|
|
|
|
|
|
|
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Three Months Ended March 31, 2020 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | — | 28 | — | 28 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 28 | $ | — | $ | 28 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Nine Months Ended March 31, 2020 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | 73 | $ | — | $ | 73 | ||||||||
Services transferred over time | 60 | — | 4 | 64 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 60 | $ | 73 | $ | 4 | $ | 137 | ||||||||
|
|
|
|
|
|
|
|
5. Cash and Cash equivalents
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Cash at Bank | $ | 11,988 | $ | 5,231 | ||||
Term Deposit | — | 4,570 | ||||||
|
|
|
| |||||
Total | $ | 11,988 | $ | 9,801 | ||||
|
|
|
|
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
6. Other current assets
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Prepaid expenses | $ | 587 | $ | 861 | ||||
Security deposit | 15 | 69 | ||||||
Other deposit | — | 18 | ||||||
Market value of listed shares | 4 | 1 | ||||||
|
|
|
| |||||
Total other assets | 606 | 949 | ||||||
Less: non-current portion | (197 | ) | — | |||||
|
|
|
| |||||
Current portion | $ | 409 | $ | 949 | ||||
|
|
|
|
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Software | $ | 14 | $ | 11 | ||||
Lab equipment | 1,471 | 1,109 | ||||||
Computer hardware | 26 | 26 | ||||||
Leasehold improvements | 24 | 24 | ||||||
|
|
|
| |||||
Total property and equipment, gross | 1,535 | 1,170 | ||||||
Accumulated depreciation and amortization | (972 | ) | (796 | ) | ||||
|
|
|
| |||||
Total property and equipment, net | $ | 563 | $ | 374 | ||||
|
|
|
|
(US$’000) | September 30, 2021 | June 30, 2021 | ||||||
Software | $ | 14 | $ | 14 | ||||
Lab equipment | 1,328 | 1,329 | ||||||
Computer hardware | 26 | 26 | ||||||
Leasehold improvements | 24 | 24 | ||||||
Total property and equipment, gross | 1,392 | 1,393 | ||||||
Accumulated depreciation and amortization | (1,069 | ) | (1,018 | ) | ||||
Total property and equipment, net | $ | 323 | $ | 375 | ||||
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Trade payable | $ | 1,640 | $ | 282 | ||||
Accrued license fees | 142 | 54 | ||||||
Accrued professional fees | 42 | 155 | ||||||
Other payables | 181 | 250 | ||||||
|
|
|
| |||||
Total | $ | 2,005 | $ | 741 | ||||
|
|
|
|
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
(US$’000) | September 30, 2021 | June 30, 2021 | ||||||
Trade payable | $ | 323 | $ | 274 | ||||
Accrued license fees | 135 | 140 | ||||||
Accrued professional fees | 99 | 13 | ||||||
Accrued OPMD project costs | 351 | 279 | ||||||
Accrued bonuses | 112 | — | ||||||
Other payables | 86 | 174 | ||||||
Total | $ | 1,106 | $ | 880 | ||||
During August 2021, the Company extended the lease thr
(US$’000) | Operating lease right-of- use assets | |||
Balance at July 1, 2021 | $ | 202 | ||
Re-measurement during the period | 794 | |||
Amortization of right of use asset | (49 | ) | ||
Operating lease right-of-use | $ | 947 | ||
(US$’000) | Operating lease liabilities | |||
Balance at July 1, 2021 | $ | 213 | ||
Re-measurement during the period | 794 | |||
Principal payments on operating lease liabilities | (51 | ) | ||
Operating lease liabilities at September 30, 2021 | 954 | |||
Less: non-current portion | (760 | ) | ||
Current portion at September 30, 2021 | $ | 194 | ||
(US$’000) | March 31, 2021 | |||
2021 | $ | 52 | ||
2022 | 218 | |||
|
| |||
Total operating lease payments | 270 | |||
Less imputed interest | (8 | ) | ||
|
| |||
Present value of operating lease liabilities | $ | 262 | ||
|
|
(US$’000) | September 30, 2021 | |||
2022 | 235 | |||
2023 | 287 | |||
2024 | 297 | |||
2025 | 228 | |||
Total operating lease payment s | 1,047 | |||
Less imputed interest | (93 | ) | ||
Present value of operating lease liabilities | $ | 954 | ||
research and development expenses.
The gross and net proceeds were $11.5 million and $9.9 million, respectively.
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
The activity related to warrants during for the three and nine months ended March 31,September 30, 2021, is summarized as follows:
Common Stock from Warrants | Weighted- average Exercise Price (per share) | |||||||
Outstanding at July 1, 2020 | 145,424 | $ | 29.48 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited | (38,326 | ) | 82.50 | |||||
|
|
|
| |||||
Outstanding and exercisable at September 30, 2020 | 107,098 | $ | 10.50 | |||||
Granted | 559,162 | 3.09 | ||||||
Exercised | (281,581 | ) | 3.10 | |||||
Forfeited | — | — | ||||||
|
|
|
| |||||
Outstanding and exercisable at December 31, 2020 | 384,679 | $ | 5.15 | |||||
Granted | — | — | ||||||
Exercised | (277,581 | ) | 3.10 | |||||
Forfeited | — | — | ||||||
|
|
|
| |||||
Outstanding and exercisable at March 31, 2021 | 107,098 | $ | 10.50 | |||||
|
|
|
|
Common Stock from Warrants | Weighted- average Exercise Price (per share) | |||||||
Outstanding at July 1, 2021 | 107,095 | $ | 10.50 | |||||
Outstanding and exercisable at September 30, 2021 | 107,095 | $ | 10.50 |
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Stock Options | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding at June 30, 2020 | 70,154 | $ | 60.42 | 2.89 years | $ | — | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (444 | ) | 69.32 | |||||||||||||
|
|
|
| |||||||||||||
Outstanding at September 30, 2020 | 69,710 | $ | 60.00 | 2.65 years | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Granted | 525,547 | 2.98 | 9.95 years | |||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (7,967 | ) | 153.78 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding at December 31, 2020 | 587,290 | 7.64 | 9.2 years | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding at March 31, 2021 | 587,290 | 7.64 | 8.9 years | — | ||||||||||||
Exercisable at March 31, 2021 | 41,686 | $ | 47.34 | 2.3 years | $ | — | ||||||||||
|
|
|
|
|
|
|
|
Stock Options | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding at June 30, 2021 | 702,064 | $ | 7.16 | 8.07 years | $ | — | ||||||||||
Outstanding at September 30, 2021 | 702,064 | 7.16 | 7.82 years | $ | — | |||||||||||
Exercisable at September 30, 2021 | 54,158 | $ | 47.90 | 1.84 years | $ | — | ||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(US$’000) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Research and development | $ | 18 | $ | 18 | $ | 33 | $ | 53 | ||||||||
General and administrative | 217 | 70 | 322 | 127 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total share-based compensation expense | $ | 235 | $ | 88 | $ | 355 | $ | 180 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30, | ||||||||
(US$’000) | 2021 | 2020 | ||||||
Research and development | $ | 81 | $ | 9 | ||||
General and administrative | 190 | 29 | ||||||
Total share-based compensation expense | $ | 271 | $ | 38 | ||||
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
On AprilRelated party transactions
|
Unless otherwise indicated, all dollar amounts in this section are provided in thousands.
COVID-19
In December 2019, an outbreak
clearer.
Axovant Termination
Benitec’s License and Collaboration Agreement, dated July 9, 2018, with Axovant Sciences GmbH, or Axovant, was terminated as
a late-stage nonclinical investigational agent currently inunder development for the treatment of Oculopharyngeal Muscular Dystrophy. Dystrophy and is currently undergoing evaluation inIND-enabling studies the key attributes ofcurrently being conducted. A summary of the BB-301 program is providedoutlined in in Figure 3.
function phenotype associated with OPMD.
Durable, broad-based,
The key preliminary results are summarized here:
Following these methodological improvements, Benitec
In December 2016, we entered into an exclusive sublicense agreement with NantWorks, LLC, pursuant to which we agreed to make certain milestone and royalty payments, as well as periodic payments for so long as the agreement remained in effect. In December of 2018, the Company accrued a milestone payment of USD 300k (AUD 425,411), which was anticipated to be paid to NantWorks, LLC under the sublicense agreement. It was later determined that the milestone was not required to be paid and, therefore, the accrual was reversed in December of 2019. We terminated the exclusive sublicense agreement for convenience, with the termination effective as of June 2020.
gains.
Results of Operations
Revenues
In the past BBL has generated revenue from its operations through two activities: revenue from customers and revenue from government research and development grants. For the three-month period ended March 31,
loss. Our licensing fees have been generated through the licensing of our ddRNAi technology to biopharmaceutical companies. The following table sets forth a summary of our revenues for each of the periods set forth below:
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(US$’000) | ||||||||||||||||
Revenues: | ||||||||||||||||
Revenues from customers | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total revenues | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(US$’000) | ||||||||
Revenues: | ||||||||
Revenues from customers | $ | — | $ | 55 | ||||
Total revenues | $ | — | $ | 55 | ||||
costs incurred.
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(US$’000) | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Royalties and license fees | $ | 7 | $ | 47 | $ | 122 | $ | (233 | ) | |||||||
Research and development | 2,758 | 805 | 4,700 | 2,095 | ||||||||||||
General and administrative | 1,029 | 1,287 | 4,976 | 3,669 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating expenses | $ | 3,794 | $ | 2,139 | $ | 9,798 | $ | 5,531 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(US$’000) | ||||||||
Operating Expenses: | ||||||||
Royalties and license fees | $ | — | $ | 134 | ||||
Research and development | 2,780 | 774 | ||||||
General and administrative | 2,042 | 1,837 | ||||||
Total operating expenses | $ | 4,822 | $ | 2,745 | ||||
During the three and nine months ended March 31, 2021,respectively, we incurred $2,758$2.8 million and $4,700$0.8 million in research and development expenses, as compared to $805 and $2,095 for the comparable periods ended March 31, 2020.expenses. The increase in research and development expenses areis primarily related to the pre-clinical trials associatedcommencement of the
the commercial-scale
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(US$’000) | ||||||||||||||||
Other Income (Loss): | ||||||||||||||||
Foreign currency transaction gain (loss) | $ | (112 | ) | $ | (7 | ) | $ | (167 | ) | $ | 4 | |||||
Interest income (expense), net | (2 | ) | 16 | (5 | ) | 52 | ||||||||||
Other income, net | — | — | 37 | — | ||||||||||||
Unrealized loss on investment | (2 | ) | — | (3 | ) | (1 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total other income (loss), net | $ | (116 | ) | $ | 9 | $ | (138 | ) | $ | 55 | ||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Other Income (Loss): | ||||||||
(US$’000) | ||||||||
Foreign currency transaction loss | $ | (240 | ) | $ | (54 | ) | ||
Interest expense, net | (1 | ) | (1 | ) | ||||
Other income, net | — | 27 | ||||||
Unrealized gain on investment | 18 | — | ||||||
Total other loss, net | $ | (223 | ) | $ | (28 | ) | ||
Nine Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(US$’000) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | (7,675 | ) | $ | (4,390 | ) | ||
Investing activities | (362 | ) | (81 | ) | ||||
Financing activities | 9,854 | 1,770 | ||||||
Effects of exchange rate changes on cash and cash equivalents | 370 | (1,617 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in cash | $ | 2,187 | $ | (4,318 | ) | |||
|
|
|
|
Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(US$’000) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | (4,278 | ) | $ | (2,360 | ) | ||
Investing activities | — | (173 | ) | |||||
Effects of exchange rate changes on cash and cash equivalents | 236 | 182 | ||||||
Net decrease in cash | $ | (4,042 | ) | $ | (2,351 | ) | ||
Financing activities
Net cash provided by financing activities was $9,854 and $1,770 for the nine months ended March 31, 2021 and 2020, respectively. Cash from financing activities related to the issuance of common stock, including $11,497 in gross proceeds which includes the October 2020 Capital Raise and exercise of pre-funded warrants. This was partially offset by $1,643 in share issuance costs for the nine months ended March 31, 2021. For the same period in 2020, cash from financing activities related to the issuance of common stock of BBL, including gross proceeds of $2,250 from a public offering, partially offset by $480 in share issuance costs.
2025.
Revenue Recognition
The Company recognizes revenue in accordance with that core principle by applying the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company applies judgement in determining whether contracts entered into fall within the scopecost of ASC 606 – Revenue from Contracts with Customers (“ASC 606”). In doing so, management considers the commercial substance of the transactionconducting clinical and how risks
Management has also made the judgement that the grant of the license and transfer of associated know-how and materialsclinical development costs are accounted for as one performance obligation as they are not considered to be distinct; they are highly interrelated and could not provide benefits to the customer independently from each other. Judgements were made in relation to the transfer of the license and know-how and whether this should be recognized over time or a point in time. The point in time has been determined with regard to the point at which the transfer of know-how has substantially been completed and the customer has control of the asset and the ability to direct the use of and receive substantially all of the remaining benefits.
Licensing revenues
Revenue from licensees of the Company’s intellectual property reflects the transfer of a right to use the intellectual property as it exists at the point in time in which the license is transferred to the customer. Consideration can be variable and is estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable that a significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognized as or when the performance obligations are satisfied.
The Company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the consolidated balance sheet. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognizes either a contract asset or a receivable in its consolidated balance sheet, depending on whether something other than the passage of time is required before the consideration is due.
Royalties
Revenue from licensees of the Company’s intellectual property reflect a right to use the intellectual property as it exists at the point in time in which the license is granted. Where consideration is based on sales of product by the licensee, revenue is recognized when the customer’s subsequent sales of product occurs.
Services revenue
Revenue is earned (constrained by variable considerations) from the provisioncomponent of research and development services to customers. Services revenue is recognized when performance obligations are either satisfied over time or at a point in time. Generally, the provisionexpenses. The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of
Share-Basedinvoiced and includes these costs in trade and other payables on the consolidated balance sheets and within research and development expenses on the consolidated statements of operations and comprehensive loss.
Expense
The Company adopted ASU 2018-07 and accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair value of such awards over the service period.
Number | Description of Document | |
31.1 | Statement of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
31.2 | Statement of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
32.1 | Statement of CEO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
32.2 | Statement of CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
101.INS | Inline XBRL Instance Document* | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |
101.CAL | Inline XBRL Calculation Linkbase Document* | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |
101.LAB | Inline XBRL Label Linkbase Document* | |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document* | |
104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
* | Filed herewith. |
** | Furnished, not filed. |
Benitec Biopharma Inc. | ||||||
Dated: | /s/ Megan Boston | |||||
Megan Boston | ||||||
Executive Director (principal financial and accounting officer) | ||||||
/s/ Jerel Banks | ||||||
Jerel Banks | ||||||
Executive Chairman and Chief Executive Officer (principal executive officer) |