☒ | 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 | 36-4108129 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
427 Park St., Charlottesville, Virginia | 22902 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common stock, par value $0.0001 per share | ABOS | The Nasdaq Global Select Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||
Emerging growth company | ☒ |
Page | ||||||
PART I. | 1 | |||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
PART II. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 135,802 | $ | 43,777 | ||||
Marketable securities, short-term | 64,162 | — | ||||||
Grant receivable | 109 | 109 | ||||||
Prepaid expenses and other current assets | 4,840 | 543 | ||||||
Total current assets | 204,913 | 44,429 | ||||||
Marketable securities, long-term | 29,910 | — | ||||||
Property and equipment, net | 13 | — | ||||||
Other assets | 13 | — | ||||||
Total assets | $ | 234,849 | $ | 44,429 | ||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 382 | $ | 531 | ||||
Accrued expenses and other current liabilities | 1,107 | 423 | ||||||
Preferred stock tranche rights liability | — | 5,033 | ||||||
Preferred stock warrant liability | — | 380 | ||||||
Total liabilities | 1,489 | 6,367 | ||||||
Series A convertible preferred stock, $0.0001 par value; 0shares authorized, issued and outstanding as of September 30, 2021; 711,203 shares authorized and 477,297 shares issued and outstanding as of December 31, 2020; liquidation preference of $1,067 as of December 31, 2020 | — | 1,067 | ||||||
Series A-1 convertible preferred stock, $0.0001 par value;0 shares authorized, issued and outstanding as of September 30, 2021; 11,898,177 shares authorized and 7,537,879 shares issued and outstanding as of December 31, 2020; liquidation preference of $16,847 as of December 31, 2020 | — | 16,333 | ||||||
Series B convertible preferred stock, $0.0001 par value; 0shares authorized, issued and outstanding at September 30, 2021; 29,457,450 shares authorized and 11,862,043 shares issued and outstanding as of December 31, 2020; liquidation preference of $45,070 as of December 31, 2020 | — | 39,253 | ||||||
Stockholders’ deficit | ||||||||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and 0 shares issued and outstanding as of September 30, 2021; 0 shares authorized, issued and outstanding as of December 31, 2020 | 0— | — | ||||||
Common stock, $0.0001 par value; 300,000,000 shares authorized and 40,470,323 shares issued and outstanding as of September 30, 2021; 50,500,000 shares authorized and 419,124 shares issued and outstanding as of December 31, 2020 | 4 | — | ||||||
Additional paid-in capital | 352,606 | 8,374 | ||||||
Accumulated deficit | (119,222 | ) | (26,965 | ) | ||||
Accumulated other comprehensive loss | (28 | ) | — | |||||
Total stockholders’ equity (deficit) | 233,360 | (18,591 | ) | |||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 234,849 | $ | 44,429 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 108,764 | $ | 122,162 | ||||
Marketable securities, short-term | 80,326 | 72,075 | ||||||
Prepaid expenses and other current assets | 3,008 | 4,424 | ||||||
Total current assets | 192,098 | 198,661 | ||||||
Marketable securities, long-term | 27,658 | 31,619 | ||||||
Property and equipment, net | 51 | 36 | ||||||
Right-of-use | 201 | — | ||||||
Other assets | 79 | 14 | ||||||
Total assets | $ | 220,087 | $ | 230,330 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,219 | $ | 1,088 | ||||
Accrued expenses and other current liabilities | 2,578 | 4,059 | ||||||
Operating lease liability, current portion | 139 | — | ||||||
Total current liabilities | 3,936 | 5,147 | ||||||
Operating lease liability, net of current portion | 62 | — | ||||||
Total liabilities | 3,998 | 5,147 | ||||||
Commitments and contingencies (Note 9 ) | 0 | 0 | ||||||
Stockholders’ equity | ||||||||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and 0shares issued and outstanding as of March 31, 2022 and December 31, 202 1 | 0— | 0— | ||||||
Common stock, $0.0001 par value; 300,000,000 shares authorized and 40,473,270 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 4 | 4 | ||||||
Additional paid-in capital | 353,599 | 352,981 | ||||||
Accumulated deficit | (136,700 | ) | (127,571 | ) | ||||
Accumulated other comprehensive loss | (814 | ) | (231 | ) | ||||
Total stockholders’ equity | 216,089 | 225,183 | ||||||
Total liabilities and stockholders’ equity | $ | 220,087 | $ | 230,330 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Grant and other revenue | $ | — | $ | 730 | $ | — | $ | 1,107 | ||||||||
Operating expenses | ||||||||||||||||
Research and development | 1,800 | 2,994 | 6,632 | 6,971 | ||||||||||||
General and administrative | 2,135 | 226 | 4,537 | 707 | ||||||||||||
Total operating expenses | 3,935 | 3,220 | 11,169 | 7,678 | ||||||||||||
Loss from operations | (3,935 | ) | (2,490 | ) | (11,169 | ) | (6,571 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | — | — | (81,157 | ) | — | |||||||||||
Interest income | 37 | — | 45 | 1 | ||||||||||||
Interest expense | (23 | ) | — | (23 | ) | — | ||||||||||
Other income | 19 | — | 47 | — | ||||||||||||
Total other income (expense) | 33 | — | (81,088 | ) | 1 | |||||||||||
Net loss | (3,902 | ) | (2,490 | ) | (92,257 | ) | (6,570 | ) | ||||||||
Other comprehensive loss | ||||||||||||||||
Unrealized loss on marketable securities | (28 | ) | — | (28 | ) | — | ||||||||||
Comprehensive loss | $ | (3,930 | ) | $ | (2,490 | ) | $ | (92,285 | ) | $ | (6,570 | ) | ||||
Net loss per common share, basic and diluted | $ | (0.10 | ) | $ | (5.94 | ) | $ | (7.00 | ) | $ | (15.68 | ) | ||||
Weighted-average shares outstanding, basic and diluted | 38,266,593 | 419,124 | 13,177,983 | 419,124 | ||||||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Operating expenses | ||||||||
Research and development | $ | 5,985 | $ | 2,578 | ||||
General and administrative | 3,221 | 1,215 | ||||||
Total operating expenses | 9,206 | 3,793 | ||||||
Loss from operations | (9,206 | ) | (3,793 | ) | ||||
Other income (expense) | ||||||||
Interest income, net | 76 | 4 | ||||||
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | — | (23,217 | ) | |||||
Other income, net | 1 | 9 | ||||||
Total other income (expense) | 77 | (23,204 | ) | |||||
Net loss | (9,129 | ) | (26,997 | ) | ||||
Other comprehensive loss | ||||||||
Unrealized loss on marketable securities | (583 | ) | — | |||||
Comprehensive loss | $ | (9,712 | ) | $ | (26,997 | ) | ||
Net loss per common share, basic and diluted | $ | (0.23 | ) | $ | (64.41 | ) | ||
Weighted-average shares outstanding, basic and diluted | 40,473,270 | 419,124 | ||||||
Series A | Series A-1 | Series B | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 477,297 | $ | 1,067 | 7,985,305 | $ | 22,963 | 19,770,070 | $ | 150,474 | 556,570 | $ | 0 | $ | 9,241 | $ | (115,320 | ) | $ | — | $ | (106,079 | ) | ||||||||||||||||||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering | (477,297 | ) | (1,067 | ) | (7,985,305 | ) | (22,963 | ) | (19,770,070 | ) | (150,474 | ) | 28,232,672 | 3 | 174,501 | — | — | 174,504 | ||||||||||||||||||||||||||||||
Issuance of common stock for cash, net of issuance costs of $15,441 | — | — | — | — | — | — | 11,499,998 | 1 | 168,558 | — | — | 168,559 | ||||||||||||||||||||||||||||||||||||
Cashless exercise of common stock warrants | — | — | — | — | — | — | 178,847 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | 2,236 | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | — | — | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | 304 | — | — | 304 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (3,902 | ) | — | (3,902 | ) | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | 40,470,323 | $ | 4 | $ | 352,606 | $ | (119,222 | ) | $ | (28 | ) | $ | 233,360 | ||||||||||||||||||||||||||
Series A | Series A-1 | Series B | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | — | $ | — | 419,124 | $ | — | $ | 8,297 | $ | (23,720 | ) | $ | (15,423 | ) | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | 39 | — | 39 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (2,490 | ) | (2,490 | ) | |||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | — | $ | — | 419,124 | $ | — | $ | 8,336 | $ | (26,210 | ) | $ | (17,874 | ) | ||||||||||||||||||||||||
Series A | Series A-1 | Series B | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | 11,862,043 | $ | 39,253 | 419,124 | $ | — | $ | 8,374 | $ | (26,965 | ) | $ | — | $ | (18,591 | ) | ||||||||||||||||||||||||||
Issuance of milestone shares for cash, net of issuance costs of $16 | — | — | — | — | 7,908,027 | 30,031 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of preferred stock warrant | — | — | 447,426 | 1,250 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Reclassification of preferred stock tranche rights liability upon issuance of milestone shares | — | — | — | — | — | 81,190 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Reclassification of warrant liability upon exercise of preferred stock warrant | — | — | — | 5,380 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of common stock warrants | — | — | — | — | — | — | 137,446 | — | 614 | — | — | 614 | ||||||||||||||||||||||||||||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering | (477,297 | ) | (1,067 | ) | (7,985,305 | ) | (22,963 | ) | (19,770,070 | ) | (150,474 | ) | 28,232,672 | 3 | 174,501 | — | — | 174,504 | ||||||||||||||||||||||||||||||
Issuance of common stock for cash, net of issuance costs of $15,441 | — | — | — | — | — | — | 11,499,998 | 1 | 168,558 | — | — | 168,559 | ||||||||||||||||||||||||||||||||||||
Cashless exercise of common stock warrants | — | — | — | — | — | — | 178,847 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | 2,236 | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | — | — | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | 557 | — | — | 557 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (92,257 | ) | — | (92,257 | ) | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | 40,470,323 | $ | 4 | $ | 352,606 | $ | (119,222 | ) | $ | (28 | ) | $ | 233,360 | ||||||||||||||||||||||||||
Series A | Series A-1 | Series B | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | — | $ | — | 419,124 | $ | — | $ | 8,220 | $ | (19,640 | ) | $ | (11,420 | ) | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | 116 | — | 116 | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (6,570 | ) | (6,570 | ) | |||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | — | $ | — | 419,124 | $ | — | $ | 8,336 | $ | (26,210 | ) | $ | (17,874 | ) | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance as of December 31, 2021 | 40,473,270 | $ | 4 | $ | 352,981 | $ | (127,571 | ) | $ | (231 | ) | $ | 225,183 | |||||||||||
Unrealized loss on marketable securities | — | — | — | — | (583 | ) | (583 | ) | ||||||||||||||||
Share-based compensation | — | — | 618 | — | — | 618 | ||||||||||||||||||
Net loss | — | — | — | (9,129 | ) | — | (9,129 | ) | ||||||||||||||||
Balance as of March 31, 2022 | 40,473,270 | $ | 4 | $ | 353,599 | $ | (136,700 | ) | $ | (814 | ) | $ | 216,089 | |||||||||||
Series A | Series A-1 | Series B | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | 11,862,043 | $ | 39,253 | 419,124 | $ | — | $ | 8,374 | $ | (26,965 | ) | $ | (18,591 | ) | ||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | 126 | — | 126 | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | (26,997 | ) | (26,997 | ) | |||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 477,297 | $ | 1,067 | 7,537,879 | $ | 16,333 | 11,862,043 | $ | 39,253 | 419,124 | $ | — | $ | 8,500 | $ | (53,962 | ) | $ | (45,462 | ) | ||||||||||||||||||||||||||||
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (92,257 | ) | $ | (6,570 | ) | $ | (9,129 | ) | $ | (26,997 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation | 1 | — | 4 | — | ||||||||||||
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | 81,157 | — | — | 23,217 | ||||||||||||
Share-based compensation expense | 557 | 116 | ||||||||||||||
Amortization of premiums on marketable securities, net | 21 | — | ||||||||||||||
Non-cash interest income from marketable securities | (27 | ) | — | |||||||||||||
Stock-based compensation expense | 618 | 126 | ||||||||||||||
Amortization of premiums and accretion of discounts on marketable securities, net | 216 | — | ||||||||||||||
Amortization of right-of-use | 33 | — | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Grant receivable | — | (187 | ) | |||||||||||||
Prepaid expenses and other current assets | (4,297 | ) | 461 | 1,416 | (44 | ) | ||||||||||
Other assets | (13 | ) | (378 | ) | (65 | ) | (13 | ) | ||||||||
Accounts payable | (149 | ) | 1,231 | 121 | 387 | |||||||||||
Operating lease liability | (32 | ) | — | |||||||||||||
Accrued expenses and other current liabilities | 685 | 734 | (1,481 | ) | 954 | |||||||||||
Net cash used in operating activities | (14,322 | ) | (4,593 | ) | (8,299 | ) | (2,370 | ) | ||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of available-for-sale | (94,095 | ) | — | |||||||||||||
Purchases of marketable securities | (9,090 | ) | — | |||||||||||||
Proceeds from maturities and sales of marketable securities | 4,000 | — | ||||||||||||||
Purchases of property and equipment | (14 | ) | — | (9 | ) | — | ||||||||||
Net cash used in investing activities | (94,109 | ) | — | (5,099 | ) | — | ||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from issuance of Series B milestone shares, net of issuance costs | 30,031 | — | ||||||||||||||
Proceeds from exercise of Series A-1 warrant | 1,250 | — | ||||||||||||||
Proceeds from exercise of common stock warrants | 614 | — | ||||||||||||||
Proceeds from issuance of common stock upon initial public offering, net of issuance costs | 168,559 | — | ||||||||||||||
Proceeds from stock option exercises | 2 | — | ||||||||||||||
Net cash provided by financing activities | 200,456 | — | ||||||||||||||
Net change in cash and cash equivalents | 92,025 | (4,593 | ) | (13,398 | ) | (2,370 | ) | |||||||||
Cash and cash equivalents at the beginning of the period | 43,777 | 6,552 | 122,162 | 43,777 | ||||||||||||
Cash and cash equivalents at the end of the period | $ | 135,802 | $ | 1,959 | $ | 108,764 | $ | 41,407 | ||||||||
Supplemental disclosure of cash flow information | ||||||||||||||||
Cash paid for income taxes | $ | 0— | $ | — | $ | — | $ | — | ||||||||
Cash paid for interest | $ | 0— | $ | — | $ | — | $ | — | ||||||||
Supplemental disclosure of noncash financing activities | ||||||||||||||||
Reclassification of preferred stock tranche rights liability upon share issuance | $ | 81,190 | $ | — | ||||||||||||
Reclassification of warrant liability upon exercise of preferred stock warrant | $ | 5,380 | $ | — | ||||||||||||
Supplemental disclosure of noncash investing and financing activities | Supplemental disclosure of noncash investing and financing activities | |||||||||||||||
Purchases of property and equipment in accounts payable | $ | 10 | $ | — | ||||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering | $ | 174,504 | $ | — | ||||||||||||
Deferred offering costs in accrued expenses and other current liabilities | $ | — | $ | 257 | ||||||||||||
Fair value measurements at reporting date using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at September 30, 2021 | |||||||||||||
Assets included in: | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
Money market securities | $ | 134,800 | $ | — | $ | — | $ | 134,800 | ||||||||
Marketable securities | ||||||||||||||||
Commercial paper | — | 43,923 | — | 43,923 | ||||||||||||
Corporate debt securities | — | 24,888 | — | 24,888 | ||||||||||||
Asset-backed securities | — | 19,273 | — | 19,273 | ||||||||||||
U.S. treasury securities | — | 5,988 | — | 5,988 | ||||||||||||
Total fair value | $ | 134,800 | $ | 94,072 | $ | — | $ | 228,872 | ||||||||
Fair value measurements at reporting date using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at December 31, 2020 | |||||||||||||
Assets included in: | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
Money market securities | $ | 36,758 | $ | — | $ | — | $ | 36,758 | ||||||||
Total fair value | $ | 36,758 | $ | — | $ | — | $ | 36,758 | ||||||||
Liabilities included in: | ||||||||||||||||
Preferred stock tranche rights liability | $ | — | $ | — | $ | 5,033 | $ | 5,033 | ||||||||
Preferred stock warrant liability | — | — | 380 | 380 | ||||||||||||
Total fair value | $ | — | $ | — | $ | 5,413 | $ | 5,413 | ||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale | ||||||||||||||||
Commercial paper | $ | 43,923 | $ | — | $ | — | $ | 43,923 | ||||||||
Corporate debt securities | 8,043 | — | (2 | ) | 8,041 | |||||||||||
Asset-backed securities | 12,200 | — | (2 | ) | 12,198 | |||||||||||
Total available-for-sale | 64,166 | — | (4 | ) | 64,162 | |||||||||||
Available-for-sale | ||||||||||||||||
Corporate debt securities | 16,866 | — | (20 | ) | 16,846 | |||||||||||
Asset-backed securities | 7,080 | — | (4 | ) | 7,076 | |||||||||||
U.S. treasury securities | 5,988 | — | — | 5,988 | ||||||||||||
Total available-for-sale | 29,934 | — | (24 | ) | 29,910 | |||||||||||
Total available-for-sale | $ | 94,100 | $ | — | $ | (28 | ) | $ | 94,072 | |||||||
September 30, 2021 | December 31, 2020 | |||||||
Prepaid insurance | $ | 2,299 | $ | 5 | ||||
Research and development service agreements | 2,077 | 432 | ||||||
Prepaid raw materials | 248 | 91 | ||||||
Other | 216 | 15 | ||||||
Total prepaid expenses and other current assets | $ | 4,840 | $ | 543 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Bonuses and other employee liabilities | $ | 797 | $ | — | ||||
Research and development | 191 | 133 | ||||||
Other | 119 | 90 | ||||||
Professional fees | 0 | 200 | ||||||
Total accrued expenses and other current liabilities | $ | 1,107 | $ | 423 | ||||
Shares Authorized | Shares Issued and Outstanding | Weighted Average Issuance Price per Share | Carrying Value | Liquidation Preference | ||||||||||||||||
Series A | 711,203 | 477,297 | $ | 2.24 | $ | 1,067 | $ | 1,067 | ||||||||||||
Series A-1 | 11,898,177 | 7,537,879 | 2.24 | 16,333 | 16,847 | |||||||||||||||
Series B | 29,457,450 | 11,862,043 | 3.80 | 39,253 | 45,070 | |||||||||||||||
Total | 42,066,830 | 19,877,219 | $ | 56,653 | $ | 62,984 | ||||||||||||||
June 17, | December 31, | |||||||
2021 | 2020 | |||||||
Risk-free interest rate | 0.07 | % | 0.12 | % | ||||
Expected time to Milestone Closing (in years) | 0.8 | 1.3 | ||||||
Probability of achievement of Milestone Closing | 100 | % | 65 | % |
June 22, 2021 | December 31, 2020 | |||||||
Risk-free interest rate | 0.25 | % | 0.13 | % | ||||
Expected term (in years) | 2.0 | 2.0 | ||||||
Expected volatility | 90 | % | 90 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Series A-1 Preferred Stock Warrant | Series B Tranche Rights | Total | ||||||||||
Balance, December 31, 2020 | $ | 380 | $ | 5,033 | $ | 5,413 | ||||||
Change in fair value | 5,000 | 76,157 | 81,157 | |||||||||
Settlement of tranche liability due to issuance of Milestone Shares | — | (81,190 | ) | (81,190 | ) | |||||||
Settlement of warrant liability upon exercise of warrant | (5,380 | ) | — | (5,380 | ) | |||||||
Balance, September 30, 2021 | $ | 0 | $ | 0 | $ | 0 | ||||||
Equity Upon Exercise | Exercise Price | Expiration Dates | Number of Warrants | |||||||||||||
Warrants issued in 2014 | Common Stock | $ | 4.47 | 3/21/2024 - 6/30/2025 | 83,726 | |||||||||||
Warrants issued in 2015 | Common Stock | $ | 4.47 | 6/30/2025 | 209,690 | |||||||||||
Warrants issued in 2016 | Common Stock | $ | 4.47 | 6/30/2025 | 34,396 | |||||||||||
Warrants issued in 2017 | Common Stock | $ | 4.47 | 6/30/2025 | 57,881 | |||||||||||
Total Warrants | 385,693 | |||||||||||||||
Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding at December 31, 2020 | 1,001,517 | $ | 1.13 | |||||||||||||
Granted | 2,663,084 | 2.21 | ||||||||||||||
Exercised | (2,236 | ) | 0.72 | |||||||||||||
Outstanding at September 30, 2021 | 3,662,365 | $ | 1.92 | 8.7 | $ | 51,591 | ||||||||||
Vested and exercisable at September 30, 2021 | 958,709 | $ | 1.38 | 7.1 | $ | 14,034 | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
General and administrative | $ | 254 | $ | 26 | $ | 412 | $ | 78 | ||||||||
Research and development | 50 | 13 | 145 | 38 | ||||||||||||
Total share-based compensation | $ | 304 | $ | 39 | $ | 557 | $ | 116 | ||||||||
Year ended December 31, 2021 (remaining 3 months) | $ | 38 | ||
Year ended December 31, 2022 | 153 | |||
Year ended December 31, 2023 | 102 | |||
Total | $ | 293 | ||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Shares issuable upon conversion of Series A Preferred Stock | 0 | 477,297 | ||||||
Shares issuable upon conversion of Series A-1 Preferred Stock | 0 | 7,537,879 | ||||||
Shares issuable upon exercise of stock options | 3,662,365 | 1,004,898 | ||||||
Shares issuable upon exercise of common stock warrants | 0 | 385,693 | ||||||
Shares issuable upon exercise of preferred stock warrant | 0 | 447,426 | ||||||
Total | 3,662,365 | 9,853,193 | ||||||
Three Months Ended September 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
Grant and other revenue | $ | — | $ | 730 | $ | (730) | ||||||
Costs and operating expenses | ||||||||||||
Research and development | 1,800 | 2,994 | (1,194) | |||||||||
General and administrative | 2,135 | 226 | 1,909 | |||||||||
Total operating expenses | 3,935 | 3,220 | 715 | |||||||||
Loss from operations | (3,935 | ) | (2,490 | ) | (1,445) | |||||||
Other income (expense) | ||||||||||||
Interest income | 37 | — | 37 | |||||||||
Interest expense | (23 | ) | — | (23) | ||||||||
Other income | 19 | — | 19 | |||||||||
Total other income | 33 | — | 33 | |||||||||
Net loss | (3,902 | ) | (2,490 | ) | (1,412) | |||||||
Other comprehensive loss | ||||||||||||
Unrealized loss on marketable securities | (28 | ) | — | (28) | ||||||||
Comprehensive loss | $ | (3,930) | $ | (2,490) | $ | (1,440) | ||||||
Nine Months Ended September 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
Grant and other revenue | $ | — | $ | 1,107 | $ | (1,107) | ||||||
Costs and operating expenses | ||||||||||||
Research and development | 6,632 | 6,971 | (339 | ) | ||||||||
General and administrative | 4,537 | 707 | 3,830 | |||||||||
Total operating expenses | 11,169 | 7,678 | 3,491 | |||||||||
Loss from operations | (11,169 | ) | (6,571 | ) | (4,598 | ) | ||||||
Other income (expense) | ||||||||||||
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | (81,157 | ) | — | (81,157 | ) | |||||||
Interest income | 45 | 1 | 44 | |||||||||
Interest expense | (23 | ) | — | (23 | ) | |||||||
Other income | 47 | — | 47 | |||||||||
Total other income (expense) | (81,088 | ) | 1 | (81,089 | ) | |||||||
Net loss | (92,257 | ) | (6,570 | ) | (85,687 | ) | ||||||
Other comprehensive loss | ||||||||||||
Unrealized loss on marketable securities | (28 | ) | — | (28 | ) | |||||||
Comprehensive loss | $ | (92,285 | ) | $ | (6,570 | ) | $ | (85,715 | ) | |||
March 31, 2022 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale | ||||||||||||||||
Commercial paper | $ | 47,961 | $ | — | $ | — | $ | 47,961 | ||||||||
Corporate debt securities | 15,373 | — | (117 | ) | 15,256 | |||||||||||
Asset-backed securities | 8,077 | — | (45 | ) | 8,032 | |||||||||||
U.S. treasury securities | 9,093 | — | (16 | ) | 9,077 | |||||||||||
�� | ||||||||||||||||
Total available-for-sale | 80,505 | — | (178 | ) | 80,326 | |||||||||||
Available-for-sale | ||||||||||||||||
Corporate debt securities | 9,275 | — | (227 | ) | 9,048 | |||||||||||
Asset-backed securities | 7,033 | — | (107 | ) | 6,926 | |||||||||||
U.S. treasury securities | 11,985 | — | (302 | ) | 11,684 | |||||||||||
Total available-for-sale | 28,294 | — | (636 | ) | 27,658 | |||||||||||
Total available-for-sale | $ | 108,798 | $ | — | $ | (814 | ) | $ | 107,984 | |||||||
December 31, 2021 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale | ||||||||||||||||
Commercial paper | $ | 47,939 | $ | — | $ | — | $ | 47,939 | ||||||||
Corporate debt securities | 7,992 | — | (11 | ) | 7,981 | |||||||||||
Asset-backed securities | 16,177 | — | (22 | ) | 16,155 | |||||||||||
Total available-for-sale | 72,108 | — | (33 | ) | 72,075 | |||||||||||
Available-for-sale | ||||||||||||||||
Corporate debt securities | 16,816 | — | (103 | ) | 16,713 | |||||||||||
Asset-backed securities | 3,013 | — | (25 | ) | 2,988 | |||||||||||
U.S. treasury securities | 11,988 | — | (70 | ) | 11,918 | |||||||||||
Total available-for-sale | 31,817 | — | (198 | ) | 31,619 | |||||||||||
Total available-for-sale | $ | 103,925 | $ | — | $ | (231 | ) | $ | 103,694 | |||||||
Fair value measurements at reporting date using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at March 31, 2022 | |||||||||||||
Assets included in: | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
Money market securities | $ | 108,086 | $ | 0 | $ | 0 | $ | 108,086 | ||||||||
Marketable securities | ||||||||||||||||
Commercial paper | 0 | 47,961 | 0 | 47,961 | ||||||||||||
Corporate debt securities | 0 | 24,304 | 0 | 24,304 | ||||||||||||
Asset-backed securities | 0 | 14,958 | 0 | 14,958 | ||||||||||||
U.S. treasury securities | 0 | 20,761 | 0 | 20,761 | ||||||||||||
Total fair value | $ | 108,086 | $ | 107,984 | $ | 0 | $ | 216,070 | ||||||||
Fair value measurements at reporting date using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at December 31, 2021 | |||||||||||||
Assets included in: | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
Money market securities | $ | 121,162 | $ | 0 | $ | 0 | $ | 121,162 | ||||||||
Marketable securities | ||||||||||||||||
Commercial paper | — | 47,939 | — | 47,939 | ||||||||||||
Corporate debt securities | — | 24,694 | — | 24,694 | ||||||||||||
Asset-backed securities | — | 19,143 | — | 19,143 | ||||||||||||
U.S. treasury securities | — | 11,918 | — | 11,918 | ||||||||||||
Total fair value | $ | 121,162 | $ | 103,694 | $ | 0 | $ | 224,856 | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
Research and development service agreements | $ | 1,653 | $ | 2,591 | ||||
Prepaid insurance | 749 | 1,514 | ||||||
Dues and subscriptions | 158 | 96 | ||||||
Prepaid raw materials | 333 | 83 | ||||||
Other | 115 | 140 | ||||||
Total prepaid expenses and other current assets | $ | 3,008 | $ | 4,424 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Research and development | $ | 1,638 | $ | 2,623 | ||||
Bonuses and other employee liabilities | 541 | 1,102 | ||||||
Legal | 294 | 130 | ||||||
Professional fees | 6 | — | ||||||
Other | 99 | 204 | ||||||
Total accrued expenses and other current li a bilities | $ | 2,578 | $ | 4,059 | ||||
Three Months Ended March 31, | ||||
2022 | 2021 | |||
Risk-free interest rate | 1.71% | 0.4% - 0.5% | ||
Expected term (in years) | 6.1 | 5.3 - 6.1 | ||
Expected volatility | 90% | 90% | ||
Expected dividend yield | 0% | 0% |
Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding at December 31, 2021 | 3,835,618 | $ | 2.51 | |||||||||||||
Granted | 1,104,550 | 5.19 | ||||||||||||||
Forfeited | (18,149 | ) | 1.19 | |||||||||||||
Outstanding at March 31, 2022 | 4,922,019 | $ | 3.11 | 8.6 | $ | 9,562 | ||||||||||
Vested and exercisable at March 31, 2022 | 1,755,794 | $ | 1.54 | 7.5 | $ | 4,805 | ||||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
General and administrative | $ | 453 | $ | 79 | ||||
Research and development | 166 | 47 | ||||||
Total stock-based compensation | $ | 618 | $ | 126 | ||||
Three Months Ended March 31, 2022 | ||||
Operating leases | ||||
Operating lease cost | $ | 38 | ||
Less: sublease income | (16 | ) | ||
Operating lease expense | 22 | |||
Short-term lease rent expense | 5 | |||
Total rent expense | $ | 27 | ||
Three Months Ended March 31, 2022 | ||||
Operating cash flows from operating leases | $ | 38 | ||
Right-of-use | $ | 233 | ||
Weighted-average remaining lease term – operating leases | 1.4 | |||
Weighted-average discount rate – operating leases | 10.0 | % |
Remaining Period Ended December 31, 2022 | $ | 115 | ||
Year Ended December 31, 2023 | 102 | |||
Total | 217 | |||
Less: present value discount | (16 | ) | ||
Operating lease liabilities | $ | 201 | ||
Year ended December 31, 2022 | $ | 153 | ||
Year ended December 31, 2023 | 102 | |||
Total | $ | 255 | ||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Shares issuable upon exercise of stock options | 4,922,019 | 3,481,178 | ||||||
Shares issuable upon conversion of Series A Preferred Stock | 0 | 477,297 | ||||||
Shares issuable upon conversion of Series A-1 Preferred Stock | 0 | 7,537,879 | ||||||
Shares issuable upon conversion of Series B Preferred Stock | 0 | 11,862,043 | ||||||
Shares issuable upon exercise of common stock warrants | 0 | 385,693 | ||||||
Shares issuable upon exercise of preferred stock warrant | 0 | 447,426 | ||||||
Total | 4,922,019 | 24,191,516 | ||||||
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | Change | ||||||||||
Costs and operating expenses | ||||||||||||
Research and development | $ | 5,985 | $ | 2,578 | $ | 3,407 | ||||||
General and administrative | 3,221 | 1,215 | 2,006 | |||||||||
Total operating expenses | 9,206 | 3,793 | 5,413 | |||||||||
Loss from operations | (9,206 | ) | (3,793 | ) | (5,413 | ) | ||||||
Other income (expense) | ||||||||||||
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | — | (23,217 | ) | 23,217 | ||||||||
Interest income, net | 76 | 4 | 72 | |||||||||
Other income, net | 1 | 9 | (8 | ) | ||||||||
Total other income (expense) | 77 | (23,204 | ) | 23,281 | ||||||||
Net loss | (9,129 | ) | (26,997 | ) | 17,868 | |||||||
Other comprehensive loss | ||||||||||||
Unrealized loss on marketable securities | (583 | ) | — | (583 | ) | |||||||
Comprehensive loss | $ | (9,712 | ) | $ | (26,997 | ) | $ | 17,285 | ||||
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net cash used in operating activities | $ | (14,322 | ) | $ | (4,593 | ) | $ | (8,299 | ) | $ | (2,370 | ) | ||||
Net cash used in investing activities | (94,109 | ) | — | (5,099 | ) | — | ||||||||||
Net cash provided by financing activities | 200,456 | — | ||||||||||||||
Net change in cash and cash equivalents | $ | 92,025 | $ | (4,593 | ) | $ | (13,398 | ) | $ | (2,370 | ) | |||||
Year ended December 31, 2021 (remaining 3 months) | $ | 38 | ||
Year ended December 31, 2022 | 153 | |||
Year ended December 31, 2023 | 102 | |||
Total | $ | 293 | ||
(a) |
(b) |
(c) |
Exhibit Number | Description of Exhibit | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Filed |
# | These certifications are being furnished solely to accompany this |
ACUMEN PHARMACEUTICALS, INC. | |||||||||
Date: | May 16, 2022 | By: | /s/ Daniel O’Connell | ||||||
Daniel O’Connell | |||||||||
President and Chief Executive Officer (Principal Executive Officer) | |||||||||
Date: | May 16, 2022 | By: | /s/ Matthew Zuga | ||||||
Matthew Zuga | |||||||||
Chief Financial Officer and Chief Business Officer (Principal Financial and Accounting Officer) |