☒ | 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 | 36-4813934 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||
Common Stock, $0.0001 par value per share | CMPI | The Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
CHECKMATE PHARMACEUTICS, INC. AND SUBSIDIARY | |||||||||
QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2022 TABLE OF CONTENTS | |||||||||
Item 1. | |||||||||
5 | |||||||||
5 | |||||||||
6 | |||||||||
7 | |||||||||
8 | |||||||||
9 | |||||||||
Item 2. | |||||||||
15 | |||||||||
Item 3. | |||||||||
24 | |||||||||
Item 4. | Controls and Procedures | 25 | |||||||
Item 1. | Legal Proceedings | 25 | |||||||
Item | |||||||||
Risk Factors | |||||||||
26 | |||||||||
Item 2. | |||||||||
79 | |||||||||
Item 3. | |||||||||
79 | |||||||||
Item 4. | |||||||||
79 | |||||||||
Item 5. | |||||||||
Other Information | 79 | ||||||||
Item 6. | Exhibits | ||||||||
June 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 63,110 | $ | 43,055 | $ | 39,478 | $ | 50,675 | ||||||||
Restricted cash | 20 | 20 | 20 | 20 | ||||||||||||
Short-term investments | 22,240 | 51,831 | 20,555 | 20,192 | ||||||||||||
Prepaid expenses and other current assets | 5,704 | 7,195 | 2,057 | 3,075 | ||||||||||||
Total current assets | 91,074 | 102,101 | 62,110 | 73,962 | ||||||||||||
Investments, non-current | 10,240 | 30,973 | ||||||||||||||
Machinery and equipment, net | 367 | — | ||||||||||||||
Equipment, net | 735 | 777 | ||||||||||||||
Other assets | 4,099 | 4,099 | ||||||||||||||
Total assets | $ | 101,681 | $ | 133,074 | $ | 66,944 | $ | 78,838 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable | $ | 2,198 | $ | 2,297 | $ | 3,608 | $ | 3,385 | ||||||||
Accrued expenses | 4,504 | 5,578 | 8,334 | 5,994 | ||||||||||||
Total current liabilities | 6,702 | 7,875 | 11,942 | 9,379 | ||||||||||||
Total liabilities | 6,702 | 7,875 | 11,942 | 9,379 | ||||||||||||
Commitments and Contingencies (Note 9) | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 0 shares outstanding as of June 30, 2021 and December 31, 2020 | 0— | 0— | ||||||||||||||
Common stock, $0.0001 par value; 300,000,000 authorized as of June 30, 2021 and December 31, 2020; 21,625,891 and 21,560,398 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 2 | 2 | ||||||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 0 | 0 | 0 | ||||||||||||||
Common stock, $0.0001 par value; 300,000,000 authorized as of March 31, 2022 and December 31, 202 1 ; 21,630,627 and 21,630,572 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 2 | 2 | ||||||||||||||
Additional paid-in capital | 268,179 | 265,342 | 272,400 | 270,947 | ||||||||||||
Accumulated other comprehensive gain (loss) | (33 | ) | (74 | ) | (57 | ) | (14 | ) | ||||||||
Accumulated deficit | (173,169 | ) | (140,071 | ) | (217,343 | ) | (201,476 | ) | ||||||||
Total stockholders’ equity | 94,979 | 125,199 | 55,002 | 69,459 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 101,681 | $ | 133,074 | $ | 66,944 | $ | 78,838 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | $ | 14,865 | $ | 6,476 | $ | 25,243 | $ | 12,789 | ||||||||
General and administrative | 4,090 | 1,795 | 7,893 | 3,305 | ||||||||||||
Total operating expenses | 18,955 | 8,271 | 33,136 | 16,094 | ||||||||||||
Loss from operations | (18,955 | ) | (8,271 | ) | (33,136 | ) | (16,094 | ) | ||||||||
Other income (expense), net: | ||||||||||||||||
Interest income | 20 | 6 | 73 | 28 | ||||||||||||
Loss on sale of available-for-sale | (35 | ) | — | (35 | ) | — | ||||||||||
Change in fair value of convertible loan notes | — | (83 | ) | — | (83 | ) | ||||||||||
Total other income (expense), net | (15 | ) | (77 | ) | 38 | (55 | ) | |||||||||
Net loss | $ | (18,970 | ) | $ | (8,348 | ) | $ | (33,098 | ) | $ | (16,149 | ) | ||||
Reconciliation of net loss attributable to common stockholders: | ||||||||||||||||
Net loss | $ | (18,970 | ) | $ | (8,348 | ) | $ | (33,098 | ) | $ | (16,149 | ) | ||||
Accretion of issuance costs on redeemable convertible preferred stock | — | (429 | ) | — | (456 | ) | ||||||||||
Accrued dividends on redeemable convertible preferred stock | — | (2,187 | ) | — | (3,957 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (18,970 | ) | $ | (10,964 | ) | $ | (33,098 | ) | $ | (20,562 | ) | ||||
Weighted-average common shares outstanding—basic and diluted | 21,624,568 | 1,488,489 | 21,603,563 | 1,488,489 | ||||||||||||
Net loss per share attributable to common stockholders—basic and diluted | $ | ( 0.88 | ) | $ | (7.37 | ) | $ | (1.53 | ) | $ | (13.81 | ) | ||||
Comprehensive loss: | ||||||||||||||||
Net los s | $ | (18,970 | ) | $ | (8,348 | ) | $ | (33,098 | ) | $ | (16,149 | ) | ||||
Unrealized gain on available-for-sale investments | 50 | — | 41 | — | ||||||||||||
Comprehensive loss | $ | (18,920 | ) | $ | (8,348 | ) | $ | (33,057 | ) | $ | (16,149 | ) | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Operating expenses: | ||||||||
Research and development | $ | 11,648 | $ | 10,378 | ||||
General and administrative | 4,238 | 3,803 | ||||||
Total operating expenses | 15,886 | 14,181 | ||||||
Loss from operations | (15,886 | ) | (14,181 | ) | ||||
Other income: | ||||||||
Interest income | 19 | 53 | ||||||
Total other income | 19 | 53 | ||||||
Net loss | $ | (15,867 | ) | $ | (14,128 | ) | ||
Weighted-average common shares outstanding—basic and diluted | 21,630,600 | 21,582,143 | ||||||
Net loss per share—basic and diluted | $ | (0.73 | ) | $ | (0.65 | ) | ||
Comprehensive loss: | ||||||||
Net loss | $ | (15,867 | ) | $ | (14,128 | ) | ||
Unrealized loss on available-for-sale | (43 | ) | (9 | ) | ||||
Comprehensive loss | $ | (15,910 | ) | $ | (14,137 | ) | ||
Series A Redeemable Convertible Preferred Stock | Series B Redeemable Convertible Preferred Stock | Series C Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain/(Loss) | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | — | $ | — | — | $ | — | — | $ | — | 21,560,398 | $ | 2 | $ | 265,342 | $ | (140,071 | ) | $ | (74 | ) | $ | 125,199 | ||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | 59,225 | — | 118 | — | — | 118 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | 1,216 | — | 1,216 | |||||||||||||||||||||||||||||||||||||
Unrealized losses on available-for-sale investments | — | — | — | — | — | — | — | — | — | — | (9 | ) | (9 | ) | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (14,128 | ) | — | (14,128 | ) | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | — | — | — | — | — | — | 21,619,623 | 2 | 266,676 | (154,199 | ) | (83 | ) | 112,396 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | 6,268 | — | 16 | — | — | 16 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | 1,487 | — | — | 1,487 | ||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for- sale investments | — | — | — | — | — | — | — | — | — | — | 50 | 50 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (18,970 | ) | — | (18,970 | ) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | — | $ | — | — | $ | — | — | $ | — | 21,625,891 | $ | 2 | $ | 268,179 | $ | (173,169 | ) | $ | (33 | ) | $ | 94,979 | ||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain/(Loss) | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balances at December 31, 2021 | 21,630,572 | $ | 2 | $ | 270,947 | $ | (201,476 | ) | $ | (14 | ) | $ | 69,459 | |||||||||||
Exercise of stock options | 55 | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation expense | — | — | 1,453 | — | — | 1,453 | ||||||||||||||||||
Unrealized loss on available-for-sale | — | — | — | — | (43 | ) | (43 | ) | ||||||||||||||||
Net loss | — | — | — | (15,867 | ) | — | (15,867 | ) | ||||||||||||||||
Balance at March 31, 2022 | 21,630,627 | $ | 2 | $ | 272,400 | $ | (217,343 | ) | $ | (57 | ) | $ | 55,002 | |||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain/(Loss) | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balances at December 31, 2020 | 21,560,398 | $ | 2 | $ | 265,342 | $ | (140,071 | ) | $ | (74 | ) | $ | (125,199 | ) | ||||||||||
Exercise of stock options | 59,225 | — | 118 | — | — | 118 | ||||||||||||||||||
Stock-based compensation expense | — | — | 1,216 | — | — | 1,216 | ||||||||||||||||||
Unrealized loss on available-for-sale | — | — | — | — | (9 | ) | (9 | ) | ||||||||||||||||
Net loss | — | — | — | (14,128 | ) | — | (14,128 | ) | ||||||||||||||||
Balance at March 31, 2021 | 21,619,623 | $ | 2 | $ | 266,676 | $ | (154,129 | ) | $ | (83 | ) | $ | 112,396 | |||||||||||
Series A Redeemable Convertible Preferred Stock | Series B Redeemable Convertible Preferred Stock | Series C Redeemable Convertible Preferred Stock | Common Stock | Additional Paid - In | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Gain/(Loss) | Equity (Deficit) | |||||||||||||||||||||||||||||||||||||
Balances 31, 2019 | 25,000,000 | $ | 32,482 | 26,283,386 | $ | 64,446 | — | $ | — | 1,488,489 | $ | 1 | $ | — | $ | (97,437 | ) | $ | — | $ | (97,436 | ) | ||||||||||||||||||||||||||
Issuance of series B redeemable convertible preferred $2.1687 per $27net of issuance costs of | — | — | 3,688,898 | 7,973 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of series B preferred stock tranche right | — | — | — | 300 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of issuance costs related to redeemable convertible preferred stock | — | — | — | 27 | — | — | — | — | — | ( 27 | ) | — | ( 27 | ) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | 101 | — | — | 101 | ||||||||||||||||||||||||||||||||||||
Accrued dividends on redeemable convertible preferred stock | — | 498 | — | 1,272 | — | — | — | — | (101 | ) | (1,669 | ) | — | (1,770 | ) | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (7,801 | ) | — | (7,801 | ) | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | 25,000,000 | 32,980 | 29,972,284 | 74,018 | — | — | 1,488,489 | 1 | — | (106,934 | ) | — | (106,933 | ) | ||||||||||||||||||||||||||||||||||
I ssuance of series C redeemable convertible preferred stock at$1.6016 per $429net of issuance costs of | — | — | — | — | 46,828,167 | 74,571 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Conversion of convertible notes into series C convertible redeemable preferred stock | — | — | — | — | 6,295,756 | 10,083 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of issuance costs related to redeemable convertible preferred stock | — | — | — | — | — | 429 | — | — | — | (429 | ) | — | (429 | ) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | 100 | — | — | 100 | ||||||||||||||||||||||||||||||||||||
Accrued dividends on redeemable convertible preferred stock | — | 499 | — | 1,296 | — | 392 | — | — | (100 | ) | (2,087 | ) | — | (2,187 | ) | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (8,348 | ) | — | (8,348 | ) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | 25,000,000 | $ | 33,479 | 29,972,284 | $ | 75,314 | 53,123,923 | $ | 85,475 | 1,488,489 | $ | 1 | $ | — | $ | (117,798 | ) | $ | — | $ | (117,797 | ) | ||||||||||||||||||||||||||
Three Months ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (15,867 | ) | $ | (14,128 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock based compensation | 1,453 | 1,216 | ||||||
Depreciation | 42 | — | ||||||
Amortization/accretion of investments | 121 | 202 | ||||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | 1,018 | (1,033 | ) | |||||
Accounts payable | 223 | (210 | ) | |||||
Accrued expenses | 2,340 | (354 | ) | |||||
Net cash used in operating activities | (10,670 | ) | (14,307 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of investments | (4,527 | ) | (10,239 | ) | ||||
Maturities of investments | 4,000 | 20,500 | ||||||
Net cash provided by (used in) investing activities | (527 | ) | 10,261 | |||||
Cash flows from financing activities | ||||||||
Proceeds from stock option exercises | 0 | 118 | ||||||
Net cash provided by financing activities | 0 | 118 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (11,197 | ) | (3,928 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 50,695 | 43,075 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 39,498 | $ | 39,147 | ||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (33,098 | ) | $ | (16,149 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock based compensation | 2,703 | 201 | ||||||
Depreciation | 11 | — | ||||||
Change in fair value of notes payable | — | 83 | ||||||
Amortization/accretion of investments | 370 | — | ||||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | 1,491 | (610 | ) | |||||
Accounts payable | (98 | ) | (31 | ) | ||||
Accrued expenses | (1,075 | ) | 464 | |||||
Net cash used in operating activities | (29,696 | ) | (16,042 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of investments | (10,197 | ) | — | |||||
Maturities of investments | 29,500 | — | ||||||
Sale of investments | 30,692 | — | ||||||
Purchase of machinery and equipment | (378 | ) | — | |||||
Net cash provided by investing activities | 49,617 | — | ||||||
Cash flows from financing activities | ||||||||
Proceeds from stock option exercises | 134 | — | ||||||
Cash paid for initial public offering costs | — | (398 | ) | |||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | — | 82,544 | ||||||
Proceeds from issuance of convertible loan notes | — | 10,000 | ||||||
Net cash provided by financing activities | 134 | 92,146 | ||||||
Net increase in cash, cash equivalents and restricted cash | 20,055 | 76,104 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 43,075 | 4,205 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 63,130 | $ | 80,309 | ||||
Supplemental disclosure of non-cash financing activities: | ||||||||
Accretion of issuance costs to redeemable convertible preferred stock | $ | — | $ | 456 | ||||
Exercise of Series B preferred stock tranche right | $ | — | $ | 300 | ||||
Accrued dividends on redeemable convertible preferred stock | $ | — | $ | 3,957 | ||||
Conversion of loan notes into series C preferred stock | $ | — | $ | 10,083 | ||||
Deferred offering costs included in prepaid expenses and other current assets and accounts payable or accrued | $ | — | $ | 1,217 |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Short-term Investments | Investments, non-current | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial paper | $ | 2,991 | $ | 0 | $ | — | $ | 2,991 | $ | 2,991 | $ | — | ||||||||||||
Corporate debt securities | 29,522 | 0 | (33 | ) | 29,489 | 19,249 | 10,240 | |||||||||||||||||
Total | $ | 32,513 | $ | 0 | $ | (33 | ) | $ | 32,480 | $ | 22,240 | $ | 10,240 | |||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Short-term Investments | Investments, non-current | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Commercial paper | $ | 42,709 | $ | 8 | $ | (16 | ) | $ | 42,701 | $ | 42,701 | $ | — | |||||||||||
Corporate debt securities | 41,169 | — | (66 | ) | 41,103 | 10,130 | 30,973 | |||||||||||||||||
Total | $ | 83,878 | $ | 8 | $ | (82 | ) | $ | 83,804 | $ | 52,831 | $ | 30,973 | |||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Short-term Investments | Investments, non-current | |||||||||||||||||||
(in thousands ) | ||||||||||||||||||||||||
Corporate debt securities | $ | 20,612 | $ | 0 | $ | (57 | ) | $ | 20,555 | $ | 20,555 | $ | 0 | |||||||||||
Estimated | ||||||||
Amortized | Fair | |||||||
Cost | Value | |||||||
(in thousands) | ||||||||
Due in one year or less | $ | 22,258 | $ | 22,240 | ||||
Due after one year through two years | 10,255 | 10,240 | ||||||
$ | 32,513 | $ | 32,480 | |||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Short-term Investments | Investments, non-current | |||||||||||||||||||
(in thousands ) | ||||||||||||||||||||||||
Corporate debt securities | $ | 20,206 | $ | 0 | $ | (14 | ) | $ | 20,192 | $ | 20,192 | $ | 0 | |||||||||||
June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Money markets funds (included in cash equivalents) | $ | 61,907 | $ | — | $ | — | $ | 61,907 | ||||||||
Commercial paper | — | 2,991 | — | 2,991 | ||||||||||||
Corporate debt securities | — | 29,489 | — | 29,489 | ||||||||||||
Total assets | $ | 61,907 | $ | 32,480 | $ | — | $ | 94,387 | ||||||||
December 31, 2020 | March 31, 2022 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money markets funds (included in cash equivalents) | $ | 7,839 | $ | — | $ | — | $ | 7,839 | $ | 38,237 | $ | — | $ | — | $ | 38,237 | ||||||||||||||||
Commercial paper | — | 42,701 | — | 42,701 | ||||||||||||||||||||||||||||
Corporate debt securities | — | 41,103 | — | 41,103 | — | 20,555 | — | 20,555 | ||||||||||||||||||||||||
Total assets | $ | 7,839 | $ | 83,804 | $ | — | $ | 91,643 | $ | 38,237 | $ | 20,555 | $ | — | $ | 58,792 | ||||||||||||||||
December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Money markets funds (included in cash equivalents) | $ | 49,482 | $ | — | $ | — | $ | 49,482 | ||||||||
Corporate debt securities | — | 20,192 | — | 20,192 | ||||||||||||
Total assets | $ | 49,482 | $ | 20,192 | $ | — | $ | 69,674 | ||||||||
March 31, | December 31, | |||||||||||||||
June 30, | December 31, | 2022 | 2021 | |||||||||||||
2021 | 2020 | (in thousands) | ||||||||||||||
(in thousands) | ||||||||||||||||
Payroll and employee related expenses | $ | 1,677 | $ | 1,555 | $ | 1,849 | $ | 2,499 | ||||||||
External research and development | 2,077 | 3,633 | 5,938 | 3,291 | ||||||||||||
Other accrued expenses | 750 | 390 | 547 | 204 | ||||||||||||
Total accrued expenses | $ | 4,504 | $ | 5,578 | $ | 8,334 | $ | 5,994 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Research and development | $ | 608 | $ | 39 | $ | 1,094 | $ | 78 | ||||||||
General and administrative | 879 | 61 | 1,609 | 123 | ||||||||||||
Total stock-based compensation expense | $ | 1,487 | $ | 100 | $ | 2,703 | $ | 201 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Research and development | $ | 731 | $ | 486 | ||||
General and administrative | 722 | 730 | ||||||
Total stock-based compensation expense | $ | 1,453 | $ | 1,216 | ||||
June 30, | ||||||||
2021 | 2020 | |||||||
Options to purchase common stock | 3,284,323 | 1,073,044 | ||||||
Redeemable convertible preferred stock | — | 14,948,249 |
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||
June 30, | Increase | June 30, | Increase | Quarters ended March 31, | Increase (Decrease) | |||||||||||||||||||||||||||||||
2021 | 2020 | (Decrease) | 2021 | 2020 | (Decrease) | 2022 | 2021 | |||||||||||||||||||||||||||||
(unaudited, in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Research and development | $ | 14,865 | $ | 6,476 | $ | 8,389 | $ | 25,243 | $ | 12,789 | $ | 12,454 | $ | 11,648 | $ | 10,378 | $ | 1,270 | ||||||||||||||||||
General and administrative | 4,090 | 1,795 | 2,295 | 7,893 | 3,305 | 4,588 | 4,238 | 3,803 | 435 | |||||||||||||||||||||||||||
Total operating expenses | 18,955 | 8,271 | 10,684 | 33,136 | 16,094 | 17,042 | 15,886 | 14,181 | 1,705 | |||||||||||||||||||||||||||
Loss from operations | (15,886 | ) | (14,181 | ) | 1,705 | |||||||||||||||||||||||||||||||
Interest income | 19 | 53 | (34 | ) | ||||||||||||||||||||||||||||||||
Loss from operations | (18,955 | ) | (8,271 | ) | 10,684 | (33,136 | ) | (16,094 | ) | 17,042 | ||||||||||||||||||||||||||
Total other income (expense), net | (15 | ) | (77 | ) | (62 | ) | 38 | (55 | ) | 93 | ||||||||||||||||||||||||||
Total other income | 19 | 53 | (34 | ) | ||||||||||||||||||||||||||||||||
Net loss | $ | (18,970 | ) | $ | (8,348 | ) | $ | 10,622 | $ | (33,098 | ) | $ | (16,149 | ) | $ | 16,949 | $ | (15,867) | $ | (14,128) | $ | 1,739 | ||||||||||||||
Six months ended June 30, | Increase | Quarter Ended March 31 | Increase (Decrease) | |||||||||||||||||||||
2021 | 2020 | (Decrease) | 2022 | 2021 | ||||||||||||||||||||
( in thousands) | ( in thousands) | |||||||||||||||||||||||
Net cash used in operating activities | $ | (29,696 | ) | $ | (16,042 | ) | $ | 13,654 | $ | (10,670) | $ | (14,307) | $ | (3,637) | ||||||||||
Net cash provided by investing activities | 49,617 | — | 49,617 | |||||||||||||||||||||
Net cash provided by (used in) investing activities | (527) | 10,261 | (10,788) | |||||||||||||||||||||
Net cash provided by financing activities | 134 | 92,146 | (92,012 | ) | — | 118 | (118) | |||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 20,055 | $ | 76,104 | $ | (56,049 | ) | |||||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | (11,197) | $ | (3,928) | $ | 7,269 | ||||||||||||||||||
* | Filed herewith |
(1) | The certifications on Exhibit 32 hereto are deemed to be furnished with this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act. |
CHECKMATE PHARMACEUTICALS, INC. | ||
By: | /s/ | |
President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
By: | /s/ Robert Dolski | ||
Robert Dolski | |||
Chief Financial Officer | |||
(Principal Financial Officer) |