☒ | 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 |
Delaware | 52-2386345 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Eddeva B920 Babraham Research Campus Cambridge, United Kingdom | ||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of each exchange on which registered | ||
Common Stock, $0.0001 par value per share | FSTX | The Nasdaq Stock Market (Nasdaq Capital Market) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||||
2 | ||||||||
Item 1. | ||||||||
3 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2 | ||||||||
47 | ||||||||
Item 3 | Defaults Upon Senior Securities | 47 | ||||||
Item 4 | Mine Safety Disclosures | 47 | ||||||
Item 5 | Other Information | 47 | ||||||
Item 6. | Exhibits | 47 | ||||||
Item 1. | Financial Statements. |
March 31, | December 31 | |||||||
2021 | 2020 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 3,680 | $ | 18,526 | ||||
Accounts receivable | 2,799 | 0 | ||||||
Prepaid expenses and other current assets | 3,308 | 3,976 | ||||||
Tax incentive receivable | 4,017 | 3,563 | ||||||
Total current assets | 13,804 | 26,065 | ||||||
Property and equipment, net | 1,063 | 789 | ||||||
Right of use asset | 3,978 | 2,782 | ||||||
Goodwill | 14,980 | 14,926 | ||||||
In-process research and development | 19,157 | 18,986 | ||||||
Other long-term assets | 454 | 61 | ||||||
Total assets | $ | 53,436 | $ | 63,609 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 4,084 | $ | 4,597 | ||||
Accrued expenses and other current liabilities | 7,062 | 9,461 | ||||||
Contingent value rights | 2,200 | 2,080 | ||||||
Lease obligations, current | 969 | 539 | ||||||
Deferred revenue | 0 | 300 | ||||||
Total current liabilities | 14,315 | 16,977 | ||||||
Lease obligations | 3,385 | 2,622 | ||||||
Contingent value rights | 320 | 440 | ||||||
Deferred tax liability | 576 | 576 | ||||||
Total liabilities | 18,596 | 20,615 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.0001 par value; authorized, 10,000,000 shares at March 31, 2021 and December 31, 2020; 0 shares issued or outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 | ||||||
Common Stock, $0.0001 par value; authorized 200,000,000 shares at March 31, 2021 and December 31, 2020; 9,100,320 and 9,100,117 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 1 | 1 | ||||||
Additional paid-in capital | 93,418 | 91,238 | ||||||
Accumulated other comprehensive loss | (1,542 | ) | (1,077 | ) | ||||
Accumulated deficit | (57,037 | ) | (47,168 | ) | ||||
Total stockholders’ equity | 34,840 | 42,994 | ||||||
Total liabilities and stockholders’ equity | $ | 53,436 | $ | 63,609 | ||||
June 30, | December 31 | |||||||
2021 | 2020 | |||||||
Unaudited | ||||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 81,648 | $ | 18,526 | ||||
Other receivables | 72 | 0 | ||||||
Prepaid expenses and other current assets | 3,439 | 3,976 | ||||||
Tax incentive receivable | 160 | 3,563 | ||||||
Total current assets | 85,319 | 26,065 | ||||||
Property and equipment, net | 1,157 | 789 | ||||||
Right of use asset | 3,758 | 2,782 | ||||||
Goodwill | 15,009 | 14,926 | ||||||
In-process research and development | 19,249 | 18,986 | ||||||
Other long-term assets | 482 | 61 | ||||||
Total assets | $ | 124,974 | $ | 63,609 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,427 | $ | 4,597 | ||||
Accrued expenses and other current liabilities | 6,300 | 9,461 | ||||||
Contingent value rights | 314 | 2,080 | ||||||
Lease obligations, current | 912 | 539 | ||||||
Deferred revenue | — | 300 | ||||||
Total current liabilities | 9,953 | 16,977 | ||||||
Long term Liabilities: | ||||||||
Term debt | 9,466 | 0 | ||||||
Lease obligations | 3,197 | 2,622 | ||||||
Contingent value rights | 2,789 | 440 | ||||||
Deferred tax liability | 576 | 576 | ||||||
Total liabilities | 25,981 | 20,615 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.0001 par value; authorized, 10,000,000 shares at June 30, 2021 and December 31, 2020; 0 shares issued or outstanding at June 30, 2021 and December 31, 2020 | 0 | 0 | ||||||
Common Stock, $0.0001 par value; authorized 200,000,000 shares at June 30, 2021 and December 31, 2020; 20,586,562 and 9,100,117 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 2 | 1 | ||||||
Additional paid-in capital | 172,895 | 91,238 | ||||||
Accumulated other comprehensive loss | (1,218 | ) | (1,077 | ) | ||||
Accumulated deficit | (72,686 | ) | (47,168 | ) | ||||
Total stockholders’ equity | 98,993 | 42,994 | ||||||
Total liabilities and stockholders’ equity | $ | 124,974 | $ | 63,609 | ||||
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
License revenue | $ | 2,917 | 1,355 | $ | 0 | $ | 543 | $ | 2,917 | $ | 1,898 | |||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 7,267 | 3,400 | 8,437 | 2,093 | 15,704 | 5,493 | ||||||||||||||||||
General and administrative | 6,429 | 3,189 | 6,501 | 3,236 | 12,930 | 6,425 | ||||||||||||||||||
Total operating expenses | 13,696 | 6,589 | 14,938 | 5,329 | 28,634 | 11,918 | ||||||||||||||||||
Loss from operations | (10,779 | ) | (5,234 | ) | (14,938 | ) | (4,786 | ) | (25,717 | ) | (10,020 | ) | ||||||||||||
Other non-operating (expense) income : | ||||||||||||||||||||||||
Other inc (expense)ome | 1,018 | (1,527 | ) | |||||||||||||||||||||
Change in fair-value of convertible debt | 0 | (386 | ) | |||||||||||||||||||||
Other non-operating (expense) income: | ||||||||||||||||||||||||
Other income (expense) | (46 | ) | (143 | ) | 972 | (1,670 | ) | |||||||||||||||||
Change in fair value of convertible debt | 0 | (1,498 | ) | 0 | (1,884 | ) | ||||||||||||||||||
Change in fair value of conti n gent value rights | (583 | ) | 0 | (583 | ) | 0 | ||||||||||||||||||
Loss before income taxes | (9,761 | ) | (7,147 | ) | (15,567 | ) | (6,427 | ) | (25,328 | ) | (13,574 | ) | ||||||||||||
Income tax expense | (108 | ) | (12 | ) | (82 | ) | (35 | ) | (190 | ) | (47 | ) | ||||||||||||
Net loss | $ | (9,869 | ) | $ | (7,159 | ) | $ | (15,649 | ) | $ | (6,462 | ) | $ | (25,518 | ) | $ | (13,621 | ) | ||||||
Net loss attributable to common stockholders | $ | (9,869 | ) | $ | (7,159 | ) | $ | (15,649 | ) | $ | (6,462 | ) | $ | (25,518 | ) | $ | (13,621 | ) | ||||||
Basic and diluted adjusted net loss per common shares | $ | (1.08 | ) | $ | (3.92 | ) | $ | (0.92 | ) | $ | (3.53 | ) | $ | (1.95 | ) | $ | (7.44 | ) | ||||||
Weighted-average number of shares outstanding, basic and diluted | 9,100,273 | 1,826,070 | 17,022,417 | 1,830,075 | 13,083,230 | 1,829,993 | ||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||
Net loss | $ | (9,869 | ) | (7,159 | ) | $ | (15,649 | ) | $ | (6,462 | ) | $ | (25,518 | ) | $ | (13,621 | ) | |||||||
Other comprehensive gain (loss): | ||||||||||||||||||||||||
Other comprehensive (loss) gain | ||||||||||||||||||||||||
Foreign currency translation | (465 | ) | 23 | 324 | 387 | (141 | ) | 410 | ||||||||||||||||
Total comprehensive loss | $ | (10,334 | ) | $ | (7,136 | ) | $ | (15,325 | ) | $ | (6,075 | ) | $ | (25,659 | ) | $ | (13,211 | ) | ||||||
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (9,869 | ) | (7,159 | ) | $ | (25,518 | ) | $ | (13,621 | ) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Share based compensation expense | 2,180 | 534 | 4,039 | 1,005 | ||||||||||||
Foreign currency loss (gain) | (670 | ) | 1,294 | |||||||||||||
Loss on disposal of fixed assets | (9 | ) | (1 | ) | ||||||||||||
Foreign currency (gain) loss | (570 | ) | 1,478 | |||||||||||||
Loss ( gain) on disposal of tangible fixed assets | (9 | ) | 6 | |||||||||||||
Depreciation | 144 | 180 | 297 | 334 | ||||||||||||
Interest expense | 77 | 256 | ||||||||||||||
Fair-value adjustment of convertible term loan | 386 | |||||||||||||||
Operating right of use asset expense | 278 | 136 | ||||||||||||||
Non-cash interest | 82 | 532 | ||||||||||||||
Amortization of debt issuance costs | 15 | 0 | ||||||||||||||
Fair value adjustments | 583 | 1,884 | ||||||||||||||
Operating right of use asset | 494 | 337 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Trade receivables | (2,805 | ) | 0 | |||||||||||||
Other receivables | (72 | ) | 0 | |||||||||||||
Prepaid expenses and other current assets | 701 | 1,389 | 593 | 905 | ||||||||||||
Tax incentive receivable | (413 | ) | 1,184 | 3,493 | 5,909 | |||||||||||
Accounts payable | (548 | ) | 1,497 | (2,231 | ) | 1,210 | ||||||||||
Accrued expenses and other current liabilities | (2,473 | ) | (1,427 | ) | (3,278 | ) | (2,126 | ) | ||||||||
Deferred revenue | (304 | ) | 368 | (308 | ) | (5 | ) | |||||||||
Operating lease liability | (272 | ) | (161 | ) | (520 | ) | (330 | ) | ||||||||
Other long-term asset | (395 | ) | 0 | |||||||||||||
Other long term asset | (423 | ) | 0 | |||||||||||||
Net cash used in by operating activities | (14,378 | ) | (1,524 | ) | ||||||||||||
Net cash used in operating activities | (23,333 | ) | (2,482 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property, plant and equipment | (267 | ) | 0 | (658 | ) | (62 | ) | |||||||||
Proceeds from sale of property, plant and equipment | 15 | 0 | 15 | 0 | ||||||||||||
Purchase of intangible assets | 0 | (62 | ) | |||||||||||||
Net cash used in investing activities | (252 | ) | (62 | ) | (643 | ) | (62 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of convertible notes | 0 | 500 | 0 | 500 | ||||||||||||
Net proceeds from issuance of common stock | 77,293 | 0 | ||||||||||||||
Net proceeds from term debt | 9,845 | 0 | ||||||||||||||
Payment of debt issuance costs | (92 | ) | 0 | |||||||||||||
Net cash provided by financing activities | 0 | 500 | 87,046 | 500 | ||||||||||||
Net decrease in cash and cash equivalents | (14,630 | ) | (1,086 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 63,070 | (2,044 | ) | |||||||||||||
Effect of exchange rate changes on cash | (216 | ) | (267 | ) | 52 | (201 | ) | |||||||||
Cash and cash equivalents at beginning of period | 18,526 | 4,901 | 18,526 | 4,901 | ||||||||||||
Cash and cash equivalents at end of period | $ | 3,680 | $ | 3,548 | $ | 81,648 | $ | 2,656 | ||||||||
Supplemental disclosure of cash flow information | ||||||||||||||||
Cash paid for income taxes | $ | 0 | $ | 17 | $ | 36 | $ | 14 | ||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 97 | $ | 0 | $ | 182 | $ | 0 | ||||||||
Cash paid for interest | $ | 115 | $ | 0 | ||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Additions to ROU assets obtained from new operating lease liabilities | $ | 1,468 | $ | 0 | $ | 1,468 | $ | 0 | ||||||||
Issuance of warrants | $ | 326 | $ | 0 |
Shareholders’ Equity | ||||||||||||||||||||||||
For the Three Months E n ded | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Accumulated deficit | Total Stockholders’ Equity | |||||||||||||||||||
March 31, 2021 | Number | Value | ||||||||||||||||||||||
Balance at December 31, 2020 | 9,100,117 | $ | 1 | $ | 91,238 | $ | (1,077 | ) | $ | (47,168 | ) | $ | 42,994 | |||||||||||
Equity adjustment from foreign currency | (465 | ) | (465 | ) | ||||||||||||||||||||
Stock option exercises | 203 | — | — | — | ||||||||||||||||||||
Share-based compensation | 2,180 | 2,180 | ||||||||||||||||||||||
Net loss | (9,869 | ) | (9,869 | ) | ||||||||||||||||||||
Balance at March 31, 2021 | 9,100,320 | $ | 1 | $ | 93,418 | $ | (1,542 | ) | $ | (57,037 | ) | $ | 34,840 | |||||||||||
Shareholders’ Equity | ||||||||||||||||||||||||||||||||
For the Three Months Ended | Seed preferred shares | Series A preferred shares | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Accumulated deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||
March 31, 2020 | Number | Number | Number | Value | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | 103,611 | 1,441,418 | 4,128,441 | $ | 1 | $ | 31,718 | $ | (1,634 | ) | $ | (21,549 | ) | $ | 8,536 | |||||||||||||||||
Issuance of common stock for services rendered | 6,720 | — | ||||||||||||||||||||||||||||||
Issuance of common stock in connection with at-the-market issuance costs | 10,450 | — | ||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | 23 | 23 | ||||||||||||||||||||||||||||||
Share-based compensation | 534 | 534 | ||||||||||||||||||||||||||||||
Net loss | (7,159 | ) | (7,159 | ) | ||||||||||||||||||||||||||||
Balance at March 31, 2020 | 103,611 | 1,441,418 | 4,145,611 | $ | 1 | $ | 32,252 | $ | (1,611 | ) | $ | (28,708 | ) | $ | 1,934 | |||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2021 | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Number of Shares | Value | Accumulated deficit | ||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 9,100,320 | $ | 1 | $ | 93,418 | $ | (1,542 | ) | $ | (57,037 | ) | $ | 34,840 | |||||||||||||||||||
Issuance of warrants in connection with term loan | — | — | 326 | — | — | 326 | ||||||||||||||||||||||||||
Issuance of common stock in connection with at-the-market | 979,843 | — | 9,115 | — | — | 9,115 | ||||||||||||||||||||||||||
Issuance of common stock in connection with public offering, net of issuance costs | 10,439,347 | 1 | 68,177 | — | — | 68,178 | ||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | 324 | — | 324 | ||||||||||||||||||||||||||
Stock option exercises | 67,052 | — | — | — | — | — | ||||||||||||||||||||||||||
Share-based compensation | — | — | 1,859 | — | — | 1,859 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | (15,649 | ) | (15,649 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | 20,586,562 | $ | 2 | $ | 172,895 | $ | (1,218 | ) | $ | (72,686 | ) | $ | 98,993 | |||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2020 | Seed preferred | Series A preferred | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||
Number of shares | Number of shares | Number of Shares | Value | Accumulated deficit | ||||||||||||||||||||||||||||
Balance at March 31, 2020 | 103,611 | 1,441,418 | 4,145,611 | $ | 1 | $ | 32,252 | $ | (1,611 | ) | $ | (28,708 | ) | $ | 1,934 | |||||||||||||||||
Issuance of common stock for services rendered | — | — | 4,252 | — | — | — | — | |||||||||||||||||||||||||
Issuance of common stock in connection with at-the-market | — | — | 162,274 | — | — | — | — | — | ||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | — | 387 | — | 387 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 471 | — | — | 471 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (6,462 | ) | (6,462 | ) | ||||||||||||||||||||||
Balance at June 30, 2020 | 103,611 | 1,441,418 | 4,312,137 | $ | 1 | $ | 32,723 | $ | (1,224 | ) | $ | (35,170 | ) | $ | (3,670 | ) | ||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Number of Shares | Value | Accumulated deficit | ||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 9,100,117 | $ | 1 | $ | 91,238 | $ | (1,077 | ) | $ | (47,168 | ) | $ | 42,994 | |||||||||||||||||||
Issuance of warrants in connection with term loan | — | — | 326 | — | — | 326 | ||||||||||||||||||||||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 979,843 | — | 9,115 | — | — | 9,115 | ||||||||||||||||||||||||||
Issuance of common stock in connection with public offering, net of issuance costs | 10,439,347 | 1 | 68,177 | — | — | 68,178 | ||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | (141 | ) | — | (141 | ) | ||||||||||||||||||||||||
Stock option exercises | 67,255 | — | — | — | — | — | ||||||||||||||||||||||||||
Share-based compensation | — | — | 4,039 | — | — | 4,039 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | (25,518 | ) | (25,518 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | 20,586,562 | $ | 2 | $ | 172,895 | $ | (1,218 | ) | $ | (72,686 | ) | $ | 98,993 | |||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2020 | Seed preferred | Series A preferred | Common Shares | Capital in Excess of par Value | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||
Number of shares | Number of shares | Number of Shares | Value | Accumulated deficit | ||||||||||||||||||||||||||||
Balance at December 31, 2019 | 103,611 | 1,441,418 | 4,128,441 | $ | 1 | $ | 31,718 | $ | (1,634 | ) | $ | (21,549 | ) | $ | 8,536 | |||||||||||||||||
Issuance of common stock for services rendered | — | — | 10,972 | — | — | — | — | — | ||||||||||||||||||||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | — | — | 172,724 | — | — | — | — | — | ||||||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | — | — | 410 | — | 410 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 1,005 | — | — | 1,005 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (13,621 | ) | (13,621 | ) | ||||||||||||||||||||||
Balance at June 30, 2020 | 103,611 | 1,441,418 | 4,312,137 | $ | 1 | $ | 32,723 | $ | (1,224 | ) | $ | (35,170 | ) | $ | (3,670 | ) | ||||||||||||||||
Estimated Useful Economic Life | ||
Leasehold property improvements, right of use assets | Lesser of lease term or useful life | |
Laboratory equipment | 5 years | |
Furniture and office equipment | 3 years |
(i) | the scope of the contract increases because of the addition of promised goods or services that are distinct; and |
(ii) | the price of the contract increases by an amount of consideration that reflects standalone selling prices of the additional promised goods or services and any appropriate adjustments to that price to reflect the circumstances of the particular contract. |
Number of shares of common stock | 4,449,559 | |||
Multiplied by fair value per share of common stock | $ | 4.84 | ||
Purchase price | $ | 21,536 | ||
Cash and cash equivalents | $ | 9,779 | ||
Marketable securities | 5,000 | |||
Prepaid expenses and other assets | 935 | |||
Operating lease right of use asset | 2,784 | |||
Intangible assets | 4,720 | |||
Goodwill | 10,451 | |||
Accounts payable, accrued expenses and other liabilities | (5,453 | ) | ||
CVRs | (2,520 | ) | ||
Liability and equity based warrants | (422 | ) | ||
Deferred tax liability | (576 | ) | ||
Operating lease liability | (3,162 | ) | ||
Fair value of net assets acquired | $ | 21,536 |
Purchase Price Allocation | ||||
Number of full common shares | 4,449,559 | |||
Multiplied by fair value per share of common stock | $ | 4.84 | ||
Purchase price | $ | 21,536 | ||
Cash and cash equivalents | $ | 9,779 | ||
Marketable securities | 5,000 | |||
Prepaid expenses and other assets | 935 | |||
Operating lease right of use asset | 2,784 | |||
Intangible assets | 4,720 | |||
Goodwill | 10,451 | |||
Accounts payable, accrued expenses and other liabilities | (5,453 | ) | ||
Contingent value rights | (2,520 | ) | ||
Liability and equity based warrants | (422 | ) | ||
Deferred tax liability | (576 | ) | ||
Operating lease liability | (3,162 | ) | ||
Fair value of net assets acquired | $ | 21,536 | ||
Net Loss Per Share | Net Loss Per Share | |||||||||||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net loss | $ | (9,869 | ) | $ | (7,159 | ) | $ | (15,649 | ) | $ | (6,462 | ) | $ | (25,518 | ) | $ | (13,621 | ) | ||||||
Weighted average number shares outstanding, basic and diluted | 9,100,273 | 1,826,070 | 17,022,417 | 1,830,075 | 13,083,230 | 1,829,993 | ||||||||||||||||||
Net loss income per common, basic and diluted | $ | (1.08 | ) | $ | (3.92 | ) | $ | (0.92 | ) | $ | (3.53 | ) | $ | (1.95 | ) | $ | (7.44 | ) | ||||||
For the Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Convertible debt | — | 179,404 | ||||||
Common stock warrants | 93,330 | — | ||||||
Stock options, and RSUs | 1,241,435 | 257,599 |
Potential Dilutive Shares | ||||||||
For the Three and Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Convertible debt shares | — | 182,758 | ||||||
Common stock warrants | 128,479 | — | ||||||
Stock options and RSUs | 1,313,522 | 257,259 |
Property, Plant and Equipment, net | Property, Plant and Equipment, net | |||||||||||||||
March 31, | December 31 | June 30, | December 31 | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Leasehold improvements | $ | 160 | $ | 15 | $ | 209 | $ | 15 | ||||||||
Laboratory equipment | 1,865 | 1,788 | 2,252 | 1,788 | ||||||||||||
Furniture and office equipment | 165 | 169 | 166 | 169 | ||||||||||||
2,190 | 1,972 | 2,627 | 1,972 | |||||||||||||
Less: Accumulated depreciation | 1,127 | 1,183 | 1,470 | 1,183 | ||||||||||||
$ | 1,063 | $ | 789 | $ | 1,157 | $ | 789 | |||||||||
Fair Value Measurements as of March 31, 2021 Using: | Fair Value Measurements as of June 30 2021 Using: | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent value rights | $ | — | $ | — | $ | 2,520 | $ | 2,520 | $ | — | $ | — | $ | 3,103 | $ | 3,103 | ||||||||||||||||
Warrants | — | — | 11 | 11 | — | — | 11 | 11 | ||||||||||||||||||||||||
$ | — | $ | — | $ | 2,531 | $ | 2,531 | $ | — | $ | — | $ | 3,114 | $ | 3,114 | |||||||||||||||||
Fair Value Measurements as of December 31, 2020 Using: | Fair Value Measurements as of December 31, 2020 Using: | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Contingent value rights | $ | — | $ | — | $ | 2,520 | $ | 2,520 | $ | — | $ | — | $ | 2,520 | $ | 2,520 | ||||||||||||||||
Warrants | — | — | 37 | 37 | — | — | 37 | 37 | ||||||||||||||||||||||||
$ | — | $ | — | $ | 2,557 | $ | 2,557 | $ | — | $ | — | $ | 2,557 | $ | 2,557 | |||||||||||||||||
November 2016 Private | ||||||||||||
Change in Level 3 Liabilities | Change in Level 3 Liabilities | |||||||||||
Placement Warrants | November 2016 Private Placement Warrants | Contingent Value Rights | ||||||||||
Balance at December 31, 2020 | $ | 37 | $ | 37 | $ | 2,520 | ||||||
Warrants exercised | 26 | (26 | ) | — | ||||||||
Change in fair value of CVR | — | 583 | ||||||||||
Balance at March 31, 2021 | $ | 11 | ||||||||||
Balance at June 30, 2021 | $ | 11 | $ | 3,103 | ||||||||
March 31, | December 31 | June 30, | December 31 | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Clinical Trial Costs | $ | 2,482 | $ | 3,394 | $ | 2,304 | $ | 3,394 | ||||||||
Severance | 1,692 | 1,953 | 887 | 1,953 | ||||||||||||
Compensation and Benefits | 1,147 | 1,361 | ||||||||||||||
Professional Fees | 1,418 | 1,593 | ||||||||||||||
Compensation and B enefits | 1,277 | 1,361 | ||||||||||||||
Professional F ees | 1,518 | 1,593 | ||||||||||||||
Other | 323 | 1,160 | 314 | 1,160 | ||||||||||||
$ | 7,062 | $ | 9,461 | $ | 6,300 | $ | 9,461 | |||||||||
Term Debt | ||||||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Term Loan A and B due April 2025 | $ | 5,000 | $ | 0 | ||||
Term Loan C and D due June 2025 | 5,000 | 0 | ||||||
Term debt | 10,000 | 0 | ||||||
Less: Unamortized deferred issuance costs | (231 | ) | 0 | |||||
Less: Warrant discount and interest | (303 | ) | 0 | |||||
Total debt obligations- long term | $ | 9,466 | $ | 0 | ||||
�� |
Warrants Outstanding | ||||
Outstanding at December 31, 2020 | 144,384 | |||
Exercises | (51,054 | ) | ||
Issued | 42,236 | |||
Expired | (7,087 | ) | ||
Outstanding at | ||||
9 . Stock Option Plans |
March 31, | December 31 | Black-Scholes Option-Pricing | ||||||||
2021 | 2020 | June 30, 2021 | December 31 2020 | |||||||
Risk-free interest rate | 0.36 | % | 0.17%-0.42% | 0.78% | 0.17% – 0.42% | |||||
Expected volatility | 87.8 | % | 82.8%-98.3% | 90.4% | 82.8%-98.3% | |||||
Expected dividend yield | 0 | % | 0% | 0% | 0% | |||||
Expected life (in years) | 5.1 | 5.1 | 5.1 | 5.1 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Contractual Term | Aggregate Intrinsic Value | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Outstanding as of December 31, 2020 | 533,559 | $ | 3.33 | 9.30 | $ | 8,494 | ||||||||||
Granted | 444,186 | 7.93 | — | — | ||||||||||||
Exercised | (203 | ) | 0.12 | — | — | |||||||||||
Forfeited | (14,188 | ) | 0.12 | — | — | |||||||||||
Outstanding as of March 31, 2021 | 963,354 | $ | 5.50 | 9.19 | $ | 6,863 | ||||||||||
Options exercisable at March 31, 2021 | 139,916 | $ | 8.29 | 7.35 | $ | 1,648 | ||||||||||
Stock Option Activity | ||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Contractual Term | Aggregate Intrinsic Value | |||||||||||||
(in years) | (in thousands) | |||||||||||||||
Outstanding as of December 31, 2020 | 533,559 | $ | 3.33 | 9.30 | $ | 8,494 | ||||||||||
Granted | 617,886 | 7.77 | 9.66 | 994 | ||||||||||||
Exercised | (3,670 | ) | 0.12 | 8.16 | 101 | |||||||||||
Forfeited and expired | (19,212 | ) | 2.27 | 9.15 | 257 | |||||||||||
Outstanding as of June 30, 2021 | 1,128,563 | 5.79 | 9.11 | 6,323 | ||||||||||||
Options exercisable at June 30, 2021 | 150,671 | 8.35 | 7.37 | 1,739 | ||||||||||||
Weighted- Average | ||||||||||||||||
RSU Activity | RSU Activity | |||||||||||||||
Restricted | Grant Date | Restricted Stock Units | Weighted- Average Grant Date Fair Value | |||||||||||||
Stock Units | Fair Value | |||||||||||||||
Total nonvested units at December 31, 2020 | 69,749 | $ | 11.73 | 69,749 | $ | 11.73 | ||||||||||
Granted | 310,385 | 8.57 | 310,385 | 8.57 | ||||||||||||
Vested | (63,545 | ) | 8.57 | |||||||||||||
Total nonvested units at March 31, 2021 | 380,134 | $ | 9.27 | |||||||||||||
Total nonvested units at June 30, 2021 | 316,589 | $ | 9.31 | |||||||||||||
March 31, | March 31, | |||||||
2021 | 2020 | |||||||
Research and development expenses | $ | 414 | $ | 124 | ||||
General and administrative expenses | 1,766 | 410 | ||||||
$ | 2,180 | $ | 534 | |||||
Share-Based Compensation | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Research and development expenses | $ | 531 | $ | 169 | $ | 944 | $ | 380 | ||||||||
General and administrative expenses | 1,328 | 302 | 3,095 | 625 | ||||||||||||
$ | 1,859 | $ | 471 | $ | 4,039 | $ | 1,005 | |||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Revenue by collaboration partner | ||||||||
Ares | $ | 2,800 | $ | 895 | ||||
Denali | 117 | 460 | ||||||
Total | $ | 2,917 | $ | 1,355 | ||||
Revenue by Collaboration Partner | ||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Ares | $ | 0 | 359 | 2,800 | 1,254 | |||||||||||
Denali | 0 | 184 | 117 | 644 | ||||||||||||
Total | $ | 0 | $ | 543 | $ | 2,917 | $ | 1,898 | ||||||||
Three Months Ended March 31, 2021 | Balance at December | Recognized | Impact of exchange rates | Balance at March | ||||||||||||
Contract liabilities: | ||||||||||||||||
Ares collaboration | $ | 37 | $ | (37 | ) | $ | 0 | $ | 0 | |||||||
Denali collaboration | 263 | (117 | ) | (146 | ) | 0 | ||||||||||
Total deferred revenue | $ | 300 | $ | (154 | ) | $ | (146 | ) | $ | 0 | ||||||
Deferred revenue balance at January 1, 2021 | Additions | Revenue recognized | Impact of exchange rates | Deferred revenue balance at June 30, 2021 | ||||||||||||||||
Deferred revenue | ||||||||||||||||||||
Ares collaboration | $ | 37 | $ | 0 | $ | (37 | ) | $ | 0 | $ | 0 | |||||||||
Denali collaboration | 263 | 0 | (117 | ) | (146 | ) | 0 | |||||||||||||
Total deferred revenue | $ | 300 | $ | 0 | $ | (154 | ) | $ | (146 | ) | $ | 0 | ||||||||
Periods | ||||
For the period April 1, 2021 to December 31, 2021 | $ | 801 | ||
2022 | 843 | |||
2023 | 854 | |||
2024 | 474 | |||
2025 | 486 | |||
Thereafter | 1,444 | |||
Total lease payments | $ | 4,902 | ||
Maturities of Operating Lease Liabilities | ||||
Periods | ||||
For the period July 1, 2021 to December 31, 2021 | $ | 417 | ||
2022 | 843 | |||
2023 | 854 | |||
2024 | 474 | |||
2025 | 486 | |||
Thereafter | 1,444 | |||
Total lease payments | $ | 4,518 | ||
Period | ||||
For the period April 1, 2021 to December 31, 2021 | $ | 56 | ||
2022 | 462 | |||
2023 | 474 | |||
2024 | 486 | |||
2025 | 498 | |||
Thereafter | 1,481 | |||
Total sublease receipts | $ | 3,457 | ||
Future Expected Cash Receipts From Sublease | ||||
Period | ||||
For the period July 1, 2021 to December 31, 2021 | $ | 56 | ||
2022 | 462 | |||
2023 | 474 | |||
2024 | 486 | |||
2025 | 498 | |||
Thereafter | 1,481 | |||
Total sublease receipts | $ | 3,457 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Statements of Comprehensive Loss | ||||||||||||||||||||||||
Statements of Comprehensive Income | ||||||||||||||||||||||||
License revenue | $ | 2,917 | $ | 1,355 | $ | 1,562 | $ | — | $ | 543 | $ | (543 | ) | |||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 7,267 | 3,400 | 3,867 | 8,437 | 2,093 | 6,344 | ||||||||||||||||||
General and administrative | 6,429 | 3,189 | 3,240 | 6,501 | 3,236 | 3,265 | ||||||||||||||||||
Total operating expenses | 13,696 | 6,589 | 7,107 | $ | 14,938 | $ | 5,329 | $ | 9,609 | |||||||||||||||
Loss from operations | (10,779 | ) | (5,234 | ) | (5,545 | ) | (14,938 | ) | (4,786 | ) | (10,152 | ) | ||||||||||||
Other non-operating income (expense): | ||||||||||||||||||||||||
Other income (expense) | 1,018 | (1,527 | ) | 2,545 | (46 | ) | (143 | ) | 97 | |||||||||||||||
Change in fair value of convertible notes | — | (386 | ) | 386 | — | (1,498 | ) | 1,498 | ||||||||||||||||
Change in fair value of liability | (583 | ) | — | (583 | ) | |||||||||||||||||||
Loss before income taxes | (9,761 | ) | (7,147 | ) | (2,614 | ) | (15,567 | ) | (6,427 | ) | (9,140 | ) | ||||||||||||
Provision for income taxes | (108 | ) | (12 | ) | (96 | ) | ||||||||||||||||||
(Loss) benefit for income taxes | (82 | ) | (35 | ) | (47 | ) | ||||||||||||||||||
Net loss | $ | (9,869 | ) | $ | (7,159 | ) | $ | (2,710 | ) | $ | (15,649 | ) | $ | (6,462 | ) | $ | (9,187 | ) | ||||||
Six Months Ended June 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
(in thousands) | ||||||||||||
Statements of Comprehensive Income | ||||||||||||
License revenue | $ | 2,917 | $ | 1,898 | $ | 1,019 | ||||||
Operating expenses: | ||||||||||||
Research and development | 15,704 | 5,493 | 10,211 | |||||||||
General and administrative | 12,930 | 6,425 | 6,505 | |||||||||
Total operating expenses | $ | 28,634 | $ | 11,918 | $ | 16,716 | ||||||
Loss from operations | (25,717 | ) | (10,020 | ) | (15,697 | ) | ||||||
Other non-operating income (expense): | ||||||||||||
Other income (expense) | 972 | (1,670 | ) | 2,642 | ||||||||
Change in fair value of convertible notes | — | (1,884 | ) | 1,884 | ||||||||
Change in fair value of liability | (583 | ) | — | (583 | ) | |||||||
Loss before income taxes | (25,328 | ) | (13,574 | ) | (11,754 | ) | ||||||
(Loss) benefit for income taxes | (190 | ) | (47 | ) | (143 | ) | ||||||
Net loss | $ | (25,518 | ) | $ | (13,621 | ) | $ | (11,897 | ) | |||
Summarized cash flow information | Summarized cash flow information | |||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Net cash used in operating activities | $ | (14,378 | ) | $ | (1,524 | ) | $ | (12,854 | ) | $ | (23,333 | ) | (2,482 | ) | $ | (20,851 | ) | |||||||
Net cash used in investing activities | (252 | ) | (62 | ) | 190 | (643 | ) | (62 | ) | (581 | ) | |||||||||||||
Net cash provided by financing activities | — | 500 | (500 | ) | 87,046 | 500 | 86,546 | |||||||||||||||||
Effect of exchange rate changes on cash | (216 | ) | (267 | ) | 51 | 52 | (201 | ) | 253 | |||||||||||||||
Net increase in cash | $ | (14,846 | ) | $ | (1,353 | ) | $ | (13,493 | ) | $ | 63,122 | $ | (2,245 | ) | $ | 65,367 | ||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
* | Filed herewith. |
± | Certain confidential portions of this Exhibit were omitted by means of marking such portions with brackets (“[***]”) because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed. |
F-star Therapeutics, Inc. | ||||||
Date: | By: | /s/ Eliot R. Forster | ||||
Eliot R. Forster, Ph.D. | ||||||
President and Chief Executive Officer |