Your vote is important. Whether or not you are able to attend the Special Meeting, it is important that your shares be represented. To ensure that your vote is recorded promptly, please vote as soon as possible, even if you plan to virtually attend the Special Meeting, by submitting your proxy via the Internet at the address listed on the proxy card or by signing, dating, and returning the proxy card. Thank you for your ongoing support and continued interest in Idera Pharmaceuticals, Inc. | |||||
Important Notice Regarding the Availability of Proxy Materials for the Special Stockholders Meeting to Be Held on January 12, 2023: This proxy statement is available at http://www.edocumentview.com/IDRA and is also available to any stockholder who wishes to receive a paper copy by calling Investor Relations at 484-348-1600 or by emailing ir@iderapharma.com. |
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| | | Member Annual Fee | | | Chairperson Annual Fee | | ||||||
Board of Directors | | | | $ | 40,000 | | | | | $ | 70,000 | | |
Audit Committee | | | | $ | 7,500 | | | | | $ | 15,000 | | |
Compensation Committee | | | | $ | 6,250 | | | | | $ | 12,500 | | |
Nominating and Corporate Governance Committee | | | | $ | 4,000 | | | | | $ | 8,000 | | |
Scientific Advisory Committee | | | | $ | 4,000 | | | | | $ | 8,000 | | |
| | | Fees Earned or Paid in Cash ($) | | | Option Awards ($)(1) | | | Total ($) | | |||||||||
Cristina Csimma | | | | | 50,250 | | | | | | 24,658 | | | | | | 74,908 | | |
Michael Dougherty | | | | | 78,027(2) | | | | | | 24,658 | | | | | | 102,685 | | |
James A. Geraghty | | | | | 57,726(3) | | | | | | 24,658 | | | | | | 82,384 | | |
Mark Goldberg | | | | | 55,500(4) | | | | | | 24,658 | | | | | | 80,158 | | |
Maxine Gowen | | | | | 56,500 | | | | | | 24,658 | | | | | | 81,158 | | |
Carol A. Schafer | | | | | 59,004(5) | | | | | | 24,658 | | | | | | 83,662 | | |
Name | | | Age | | | | | | Committees(1) | | | Class – Election Year | | ||||||
| | | | | | | | | Audit | | | Comp | | | N&CG | | | | |
Vincent J. Milano | | | 59 | | | Chair of the Board | | | | | | | | | | | | Class I – 2023 | |
Dr. Cristina Csimma | | | 63 | | | Director | | | | | | X | | | C | | | Class I – 2023 | |
Michael Dougherty | | | 64 | | | Director | | | C | | | | | | X | | | Class I – 2023 | |
James Geraghty | | | 68 | | | Director | | | | | | | | | | | | Class II – 2024 | |
Dr. Maxine Gowen | | | 64 | | | Director | | | X | | | C | | | | | | Class II – 2024 | |
Ronald Wooten | | | 63 | | | Director | | | X | | | | | | | | | Class III – 2025 | |
John C. Taylor | | | 52 | | | Director | | | | | | | | | | | | Class III – 2025 | |
Board Diversity Matrix (as of February 4, 2022) | | ||||||||||||||||||||||||
Total number of Directors | | | 7 | | |||||||||||||||||||||
| | | Female | | | Male | | | Non-Binary | | | Did not Disclose Gender | | ||||||||||||
Part I: Gender Identity | | | | | | | | | | | | | | | | | | | | | | | | | |
Directors | | | | | 3 | | | | | | 4 | | | | | | 0 | | | | | | 0 | | |
Part II: Demographic Background | | | | | | | | | | | | | | | | | | | | | | | | | |
African American or Blank | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Alaskan Native or Native American | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Asian | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Hispanic or Latinx | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Native Hawaiian or Pacific Islander | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
White | | | | | 3 | | | | | | 4 | | | | | | 0 | | | | | | 0 | | |
Two or More Races or Ethnicities | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
LGBTQ+ | | | 0 | | |||||||||||||||||||||
Did Not Disclose Demographic Background | | | 0 | |
Name | | | Age | | | | |
| | | | ||||
| |||||||
John J. Kirby | | | 50 | | | | |
Dr. Carl Kraus | | | 53 | | | Chief Medical Officer | |
Bryant D. Lim | | | 51 | | | | |
Daniel Salain | | | 55 | | | Chief Operating Officer | |
John C. Taylor* | | | 52 | | | Chief Executive Officer | |
81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NEO | | | 2020 Base Salary | | | 2021 Base Salary | | | % Increase | | |||||||||
Mr. Milano | | | | $ | 600,000 | | | | | $ | 600,000 | | | | | | — | | |
Mr. Kirby | | | | $ | 336,000 | | | | | $ | 365,000 | | | | | | 8.6 | | |
Mr. Lim | | | | $ | 336,000 | | | | | $ | 365,000 | | | | | | 8.6 | | |
Mr. Soland(1) | | | | | — | | | | | $ | 425,000 | | | | | | — | | |
Dr. Tarka(2) | | | | $ | 375,000 | | | | | $ | 413,000 | | | | | | 10.1 | | |
Primary Goals | | | Contribution toward Corporate Performance Score(1) | | | Weighted Achievement of Performance Goal(2) | | | Highlights of Performance on Key Objectives | |
Continue moving Tilsotolimod (IMO-2125) program toward registration | | | 80% | | | 25% | | | • Delivered ILLUMINATE-301 topline results, which failed to meet primary endpoint. • Completed cohort expansion in the first phase of MSS-CRC cohort for ILLUMINATE-206. | |
Continue business development initiatives through rare disease exploration | | | 10% | | | 10% | | | • Active due diligence on multiple strategic business development options. | |
Enhance ability to be successful through relevant foundational objectives | | | 10% | | | 10% | | | • On target with respect to financial budget. • Maintained strong corporate compliance. | |
Modifier(3) | | | n/a | | | 5% | | | • Entered collaboration with Scriptr Global for discovery of gene therapy techniques. • Improved cash position. | |
TOTAL | | | 100% | | | 50% | | | | |
NEO | | | Target Bonus | | | Overall Score | | | Bonus Earned | | | Bonus Payout(1) | | |||||||||
Mr. Milano | | | | $ | 300,000 | | | | 50% | | | | $ | 150,000 | | | | | $ | 0 | | |
Mr. Kirby | | | | $ | 146,000 | | | | 50% | | | | $ | 73,000 | | | | | $ | 73,000 | | |
Mr. Lim | | | | $ | 146,000 | | | | 50% | | | | $ | 73,000 | | | | | $ | 73,000 | | |
Mr. Soland | | | | $ | 170,000 | | | | 50% | | | | $ | 85,000 | | | | | $ | 0 | | |
Dr. Tarka(2) | | | | $ | 165,200 | | | | — | | | | | — | | | | | | — | | |
NEO | | | January 2021 Grants | | | July 2021 Grants | | | Total | | |||||||||
| Stock Options (# options) | | | Stock Options (# options) | | | Stock Options (# options) | | |||||||||||
Mr. Milano | | | | | 95,000 | | | | | | 124,000 | | | | | | 219,000 | | |
Mr. Kirby | | | | | 51,000 | | | | | | 66,500 | | | | | | 117,500 | | |
Mr. Lim | | | | | 51,000 | | | | | | 66,500 | | | | | | 117,500 | | |
Mr. Soland | | | | | 200,000(1) | | | | | | 66,500 | | | | | | 266,500 | | |
Dr. Tarka | | | | | 51,000 | | | | | | —(2) | | | | | | 51,000 | | |
NAME AND PRINCIPAL POSITION | | | YEAR | | | SALARY ($) | | | STOCK AWARDS ($)(1) | | | OPTION AWARDS ($)(2) | | | NON-EQUITY INCENTIVE PLAN COMPENSATION ($) | | | ALL OTHER COMPENSATION ($)(3) | | | TOTAL ($) | | |||||||||||||||||||||
Vincent J. Milano President and Chief Executive Officer | | | | | 2021 | | | | | | 600,000 | | | | | | — | | | | | | 340,189 | | | | | | 150,000(4) | | | | | | 44,244 | | | | | | 1,134,433 | | |
| | | 2020 | | | | | | 24,786 | | | | | | 764,713(5) | | | | | | 234,642 | | | | | �� | 285,000 | | | | | | 37,929 | | | | | | 1,347,070 | | | ||
| | | 2019 | | | | | | 600,000 | | | | | | 105,975 | | | | | | 279,160 | | | | | | 315,000 | | | | | | 37,082 | | | | | | 1,337,217 | | | ||
John J. Kirby Senior Vice President, Chief Financial Officer | | | | | 2021 | | | | | | 365,000 | | | | | | — | | | | | | 182,575 | | | | | | 73,000 | | | | | | 39,408 | | | | | | 659,983 | | |
| | | 2020 | | | | | | 336,000 | | | | | | 123,755 | | | | | | 127,523 | | | | | | 140,448 | | | | | | 37,519 | | | | | | 765,245 | | | ||
| | | 2019 | | | | | | 308,000 | | | | | | 32,185 | | | | | | 113,955 | | | | | | 114,660 | | | | | | 36,849 | | | | | | 605,649 | | | ||
Bryant D. Lim Senior Vice President, General Counsel and Corporate Secretary | | | | | 2021 | | | | | | 365,000 | | | | | | — | | | | | | 182,575 | | | | | | 73,000 | | | | | | 42,965 | | | | | | 663,540 | | |
| | | 2020 | | | | | | 336,000 | | | | | | 39,679 | | | | | | 127,523 | | | | | | 140,448 | | | | | | 37,779 | | | | | | 681,429 | | | ||
| | | 2019 | | | | | | 336,000 | | | | | | 56,834 | | | | | | 150,317 | | | | | | 155,232 | | | | | | 33,412 | | | | | | 731,795 | | | ||
Daniel B. Soland Senior Vice President, Chief Commercial Officer | | | | | 2021 | | | | | | 423,390 | | | | | | — | | | | | | 534,621 | | | | | | 85,000(4) | | | | | | 44,437 | | | | | | 1,087,448 | | |
Elizabeth Tarka Senior Vice President, Chief Medical Officer | | | | | 2021 | | | | | | 172,594 | | | | | | — | | | | | | 131,407 | | | | | | — | | | | | | 489,502 | | | | | | 793,503 | | |
| | | 2020 | | | | | | 375,000 | | | | | | 35,800 | | | | | | 127,523 | | | | | | 142,500 | | | | | | 17,082 | | | | | | 697,905 | | |
| | | Premiums Paid by us for all Insurance Plans ($) | | | Company Match on 401(K) ($) | | | Severance ($) | | | Total ($) | | ||||||||||||
Mr. Milano | | | | | 29,744 | | | | | | 14,500 | | | | | | — | | | | | | 44,244 | | |
Mr. Kirby | | | | | 24,908 | | | | | | 14,500 | | | | | | — | | | | | | 39,408 | | |
Mr. Lim | | | | | 28,465 | | | | | | 14,500 | | | | | | — | | | | | | 42,965 | | |
Mr. Soland | | | | | 29,937 | | | | | | 14,500 | | | | | | — | | | | | | 44,437 | | |
Dr. Tarka | | | | | 1,180 | | | | | | 14,500 | | | | | | 473,822 | | | | | | 489,502 | | |
Name | | | Grant Date | | | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards | | | All Other Option Awards: Number of Securities Underlying Options (#)(1) | | | Exercise or Base Price of Option Awards ($/Sh) | | | Grant Date Fair Value of Stock and Option Awards ($)(2) | | |||||||||||||||||||||
| Target ($) | | | Maximum ($) | | ||||||||||||||||||||||||||||||||
Vincent J. Milano | | | | | N/A | | | | | | 300,000 | | | | | | 468,750 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 1/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 95,000 | | | | | | 4.28 | | | | | | 244,788 | | |
| | | | | 7/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 124,000 | | | | | | 1.11 | | | | | | 95,411 | | |
John J. Kirby | | | | | N/A | | | | | | 146,000 | | | | | | 228,125 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 1/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 51,000 | | | | | | 4.28 | | | | | | 131,407 | | |
| | | | | 7/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 66,500 | | | | | | 1.11 | | | | | | 51,168 | | |
Bryant D. Lim | | | | | N/A | | | | | | 146,000 | | | | | | 228,125 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 1/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 51,000 | | | | | | 4.28 | | | | | | 131,407 | | |
| | | | | 7/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 66,500 | | | | | | 1.11 | | | | | | 51,168 | | |
Daniel B. Soland | | | | | N/A | | | | | | 170,000 | | | | | | 265,625 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 1/4/2021(3)(5) | | | | | | | | | | | | | | | | | | 200,000 | | | | | | 4.02 | | | | | | 483,453 | | |
| | | | | 7/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 66,500 | | | | | | 1.11 | | | | | | 51,168 | | |
Elizabeth Tarka | | | | | N/A | | | | | | 165,200 | | | | | | 258,125 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 1/8/2021(3)(4) | | | | | | | | | | | | | | | | | | 51,000 | | | | | | 4.28 | | | | | | 131,407 | | |
| | | Option Awards | | | Stock Awards | | ||||||||||||||||||||||||||||||||||||||||||
Name | | | Number of Securities Underlying Unexercised Options Exercisable (#) | | | Number of Securities Underlying Unexercised Options Unexercisable (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(1) | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights that have Not Vested (#)(20) | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights Not Vested ($) | | ||||||||||||||||||||||||
Vincent J. Milano | | | | | 250,000 | | | | | | — | | | | | | 24.96 | | | | | | 12/1/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 37,499 | | | | | | — | | | | | | 23.04 | | | | | | 1/6/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 37,500 | | | | | | — | | | | | | 12.72 | | | | | | 1/4/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 70,311 | | | | | | 4,688(2) | | | | | | 17.92 | | | | | | 1/3/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 52,812 | | | | | | 12,188(3) | | | | | | 7.39 | | | | | | 8/13/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 58,093 | | | | | | 26,407(4) | | | | | | 3.14 | | | | | | 1/3/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 47,531 | | | | | | 36,969(5) | | | | | | 2.52 | | | | | | 7/9/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 40,250 | | | | | | 51,750(6) | | | | | | 1.79 | | | | | | 1/10/2030 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 28,750 | | | | | | 63,250(7) | | | | | | 2.48 | | | | | | 7/21/2030 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | — | | | | | | 95,000(8) | | | | | | | | | | | | 1/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | — | | | | | | 124,000(9) | | | | | | | | | | | | 7/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 44,625(19) | | | | | | 25,436 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 100,000 | | | | | | 57,000 | | |
John J. Kirby | | | | | 18,750 | | | | | | — | | | | | | 24.88 | | | | | | 11/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 11,249 | | | | | | — | | | | | | 23.04 | | | | | | 1/6/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 12,499 | | | | | | — | | | | | | 12.72 | | | | | | 1/4/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 15,819 | | | | | | 1,055(2) | | | | | | 17.92 | | | | | | 1/3/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 8,125 | | | | | | 1,875(3) | | | | | | 7.39 | | | | | | 8/13/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 25,600(10) | | | | | | —(11) | | | | | | 3.14 | | | | | | 1/3/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 45,500(10) | | | | | | —(12) | | | | | | 2.52 | | | | | | 7/9/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,000(10) | | | | | | —(13) | | | | | | 1.79 | | | | | | 1/10/2030 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,000(10) | | | | | | —(14) | | | | | | 2.48 | | | | | | 7/21/2030 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 51,000(10) | | | | | | —(15) | | | | | | 4.28 | | | | | | 1/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | — | | | | | | 66,500(9) | | | | | | 1.11 | | | | | | 7/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 57,203 | | | | | | 32,606 | | |
Bryant D. Lim | | | | | 105,625 | | | | | | 24,375(16) | | | | | | 9.29 | | | | | | 9/10/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 45,500(10) | | | | | | —(17) | | | | | | 3.14 | | | | | | 1/3/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 45,500(10) | | | | | | —(12) | | | | | | 2.52 | | | | | | 7/9/2029 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,000(10) | | | | | | —(13) | | | | | | 1.79 | | | | | | 1/10/2030 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | 50,000(10) | | | | | | —(14) | | | | | | 2.48 | | | | | | 7/21/2030 | | | | | | | | | | | | | | | | | | �� | | | | | | | | | ||
| | | 51,000(10) | | | | | | —(15) | | | | | | 4.28 | | | | | | 01/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | — | | | | | | 66,500(9) | | | | | | 1.11 | | | | | | 07/8/2031 | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,523 | | | | | | 1,438 | | |
Name | | | Stock Awards | | |||||||||
| Number of Shares Acquired on Vesting(1) (#) | | | Value Realized on Vesting(2) ($) | | ||||||||
Vincent Milano | | | | | 17,688 | | | | | | 70,557 | | |
John Kirby | | | | | 27,688(3) | | | | | | 61,597 | | |
Bryant Lim | | | | | 33,575(4) | | | | | | 74,803 | | |
Elizabeth Tarka | | | | | 20,000 | | | | | | 44,350 | | |
Name | | | Cash Severance(1) ($) | | | Benefits(2) ($) | | | Total ($) | | |||||||||
Vincent J. Milano | | | | | 800,000 | | | | | | 38,458 | | | | | | 838,458 | | |
John J. Kirby | | | | | 474,369 | | | | | | 27,657 | | | | | | 502,026 | | |
Bryant D. Lim | | | | | 487,893 | | | | | | 35,748 | | | | | | 523,641 | | |
Daniel B. Soland | | | | | 510,000 | | | | | | 38,745 | | | | | | 548,745 | | |
Elizabeth Tarka(3) | | | | | 473,822 | | | | | | — | | | | | | 473,822 | | |
Name | | | Medical Insurance Premiums ($) | | | Dental Insurance Premiums ($) | | | Total ($) | | |||||||||
Vincent J. Milano | | | | | 36,526 | | | | | | 1,932 | | | | | | 38,458 | | |
John J. Kirby | | | | | 25,725 | | | | | | 1,932 | | | | | | 27,657 | | |
Bryant D. Lim | | | | | 33,816 | | | | | | 1,932 | | | | | | 35,748 | | |
Daniel B. Soland | | | | | 36,813 | | | | | | 1,932 | | | | | | 38,745 | | |
Elizabeth Tarka(a) | | | | | — | | | | | | — | | | | | | — | | |
Name | | | Cash Severance(1) ($) | | | Equity(2)(3) ($) | | | Benefits(4) ($) | | | Total ($) | | ||||||||||||
Vincent J. Milano | | | | | 1,650,000 | | | | | | 82,436 | | | | | | 57,691 | | | | | | 1,790,127 | | |
John J. Kirby | | | | | 912,500 | | | | | | 32,606 | | | | | | 41,491 | | | | | | 986,597 | | |
Bryant D. Lim | | | | | 912,500 | | | | | | 1,438 | | | | | | 53,623 | | | | | | 967,561 | | |
Daniel B. Soland | | | | | 1,062,500 | | | | | | — | | | | | | 58,123 | | | | | | 1,120,623 | | |
Elizabeth Tarka(5) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name | | | Medical Insurance Premiums ($) | | | Dental Insurance Premiums ($) | | | Total ($) | | |||||||||
Vincent J. Milano | | | | | 54,792 | | | | | | 2,899 | | | | | | 57,691 | | |
John J. Kirby | | | | | 38,592 | | | | | | 2,899 | | | | | | 41,491 | | |
Bryant D. Lim | | | | | 50,724 | | | | | | 2,899 | | | | | | 53,623 | | |
Daniel B. Soland | | | | | 55,224 | | | | | | 2,899 | | | | | | 58,123 | | |
Elizabeth Tarka(a) | | | | | — | | | | | | — | | | | | | — | | |
Fiscal Year | | | Equity Awards Granted | | | Basic Weighted Average Number of Shares of Common Stock Outstanding | | | Gross Burn Rate(1) | | |||||||||
2021 | | | | | 1,356,700 | | | | | | 49,203,000 | | | | | | 2.8% | | |
2020 | | | | | 1,581,227 | | | | | | 33,821,000 | | | | | | 4.7% | | |
2019 | | | | | 1,473,566 | | | | | | 28,545,000 | | | | | | 5.2% | | |
Three-Year Average | | | | | 1,470,498 | | | | | | 37,189,667 | | | | | | 4.0% | | |
| | | April 1, 2022* | | |||
Total shares of common stock underlying all outstanding options and RSUs | | | | | 5,677,159 | | |
Weighted-average exercise price of outstanding options | | | | $ | 7.92 | | |
Weighted-average remaining contractual life of outstanding options (in years) | | | | | 6.71 | | |
Total shares available for future awards | | | | | 194,994 | | |
Plan Category | | | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | | | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) | | | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c) | | |||||||||
Equity compensation plans approved by stockholders(1) | | | | | 5,158,269 | | | | | $ | 8.38 | | | | | | 1,084,142 | | |
Equity compensation plans not approved by stockholders(2) | | | | | 359,375 | | | | | $ | 26.35 | | | | | | — | | |
Total | | | | | 5,517,644 | | | | | $ | 9.78 | | | | | | 1,084,142 | | |
Fee Category | | | 2021 | | | 2020 | | ||||||
Audit Fees | | | | $ | 475,000 | | | | | $ | 475,000 | | |
Audit-Related Fees | | | | $ | 15,000 | | | | | $ | 89,000 | | |
Tax Fees | | | | | — | | | | | $ | 25,235 | | |
Total Fees | | | | $ | 490,000 | | | | | $ | 598,235 | | |
| | | Page(s) | | |||
| | | | C-4 | | | |
Consolidated Financial Statements | | | | | | | |
| | | | C-6 | | | |
| | | | C-7 | | | |
| | | | C-8 | | | |
| | | | C-9 | | | |
| | | | C-10 – C-23 | | |
| | | 2021 | | |||
Assets | | | | | | | |
Current assets | | | | | | | |
Cash and cash equivalents | | | | $ | 5,010,224 | | |
Restricted cash | | | | | 125,000 | | |
Accounts receivable | | | | | 268,166 | | |
Unbilled accounts receivable | | | | | 328,012 | | |
Funding receivable | | | | | 6,315,637 | | |
Prepaid expenses and other current assets | | | | | 798,376 | | |
Total current assets | | | | | 12,845,415 | | |
Operating lease – right-of-use asset | | | | | 96,212 | | |
Intangible asset | | | | | 165,600 | | |
Total assets | | | | $ | 13,107,227 | | |
Liabilities, Preferred Equity and Stockholders’ Deficit | | | | | | | |
Current liabilities | | | | | | | |
Accounts payable | | | | $ | 313,355 | | |
Accrued expenses | | | | | 75,115 | | |
Accrued placement fee | | | | | 442,095 | | |
Accrued bonuses | | | | | 883,747 | | |
Operating lease liability, net | | | | | 40,323 | | |
Acquisition obligation, less unamortized discount based on imputed interest rate of 9.2%, $567,765 | | | | | 5,798,919 | | |
Total current liabilities | | | | | 7,553,554 | | |
Operating lease liability, net of current portion | | | | | 55,889 | | |
Acquisition obligation, less current portion, less unamortized discount based on imputed interest rate of 9.2%, $10,824 | | | | | 1,489,176 | | |
Total liabilities | | | | | 9,098,619 | | |
Commitments and contingencies (Note 13) | | | | | | | |
Preferred equity | | | | | | | |
Preferred stock, 5 shares authorized, $.001 par value; 5 shares issued and outstanding with a liquidation preference of $33,583,912 as of December 31, 2021 | | | | | 33,583,912 | | |
Stockholders’ deficit | | | | | | | |
Common stock, 10,000,000 shares authorized, $.001 par value; 3,536,000 shares issued and outstanding as of December 31, 2021 | | | | | 3,536 | | |
Additional paid-in capital | | | | | — | | |
Accumulated deficit | | | | | (29,576,083) | | |
Accumulated other comprehensive income | | | | | (2,757) | | |
Total stockholders’ deficit | | | | | (29,575,304) | | |
Total liabilities preferred stock and stockholders’ deficit | | | | $ | 13,107,227 | | |
| | | 2021 | | |||
Revenues | | | | | | | |
Government sponsored product development | | | | $ | 897,002 | | |
Consulting services | | | | | 107,944 | | |
Total revenues | | | | | 1,004,946 | | |
Research and development expenses: | | | | | | | |
Government sponsored product development | | | | | 624,215 | | |
Consulting services | | | | | 31,234 | | |
Non-sponsored research and development | | | | | 8,542,309 | | |
In-process research and development | | | | | 11,809,631 | | |
Total research and development expenses | | | | | 21,007,389 | | |
General and administrative expenses | | | | | 3,794,028 | | |
Total operating expenses | | | | | 24,801,417 | | |
Operating loss | | | | | (23,796,471) | | |
Other expense | | | | | | | |
Interest expense | | | | | (108,631) | | |
Foreign currency transaction loss | | | | | (1,785) | | |
Total other expense | | | | | (110,416) | | |
Loss before income taxes | | | | | (23,906,887) | | |
Income tax benefit | | | | | — | | |
Net loss | | | | $ | (23,906,887) | | |
Other comprehensive loss | | | | | | | |
Currency translation adjustment | | | | | (2,757) | | |
Comprehensive loss | | | | $ | (23,909,644) | | |
| | | Preferred Equity | | | | Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock – Series X | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Total | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Series X preferred stock, net of issuance costs | | | | | 5 | | | | | $ | 12,527,164 | | | | | | | — | | | | | $ | — | | | | | $ | 1,422,836 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,422,836 | | |
Preferred shareholder contributions, net of issuance costs | | | | | — | | | | | | 13,905,708 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Preferred shares modification | | | | | — | | | | | | 7,151,040 | | | | | | | — | | | | | | — | | | | | | (1,481,844) | | | | | | (5,669,196) | | | | | | — | | | | | | (7,151,040) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 59,008 | | | | | | — | | | | | | — | | | | | | 59,008 | | |
Issuance of common stock | | | | | — | | | | | | — | | | | | | | 3,536,000 | | | | | | 3,536 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,536 | | |
Currency translation adjustment | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,757) | | | | | | (2,757) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,906,887) | | | | | | — | | | | | | (23,906,887) | | |
Balances at December 31, 2021 | | | | | 5 | | | | | $ | 33,583,912 | | | | | | | 3,536,000 | | | | | $ | 3,536 | | | | | $ | — | | | | | $ | (29,576,083) | | | | | $ | (2,757) | | | | | $ | (29,575,304) | | |
| | | 2021 | | |||
Cash flows from operating activities | | | | | | | |
Net loss | | | | $ | (23,906,887) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
Amortization of acquisition obligation discount | | | | | 109,223 | | |
Amortization of right-of-use asset | | | | | 12,609 | | |
Non-cash expense in connection with asset acquisition | | | | | 6,918,772 | | |
Foreign currency transaction loss | | | | | (2,721) | | |
Stock-based compensation | | | | | 59,008 | | |
Changes in operating assets and liabilities: | | | | | | | |
Accounts receivable | | | | | (237,177) | | |
Unbilled accounts receivable | | | | | 361,713 | | |
Funding receivable | | | | | (6,315,637) | | |
Prepaid expenses and other current assets | | | | | (715,638) | | |
Accounts payable | | | | | (83,951) | | |
Accrued expenses and other liabilities | | | | | 1,254,875 | | |
Operating lease liability, net | | | | | (12,609) | | |
Net cash used in operating activities | | | | | (22,558,420) | | |
Cash flows from investing activities | | | | | | | |
Purchase of intangible asset | | | | | (165,600) | | |
Net cash used in investing activities | | | | | (165,600) | | |
Cash flows from financing activities | | | | | | | |
Proceeds from issuance of preferred stock, net | | | | | 27,855,708 | | |
Proceeds from issuance of common stock | | | | | 3,536 | | |
Net cash provided by financing activities | | | | | 27,859,244 | | |
Net change in cash, cash equivalents, and restricted cash | | | | | 5,135,224 | | |
Cash and cash equivalents | | | | | | | |
Consolidated cash and restricted cash at beginning of year | | | | | — | | |
Consolidated cash and restricted cash at end of year | | | | $ | 5,135,224 | | |
Supplemental disclosure of cash flow information | | | | | | | |
Cash paid for interest | | | | $ | — | | |
Supplemental disclosure of noncash investing and financing activities | | | | | | | |
Preferred stock modification dividend | | | | $ | 7,151,040 | | |
| | | 2021 | | |||
Cash and cash equivalents | | | | $ | 5,010,224 | | |
Restricted cash | | | | | 125,000 | | |
Total cash, cash equivalents, and restricted cash | | | | $ | 5,135,224 | | |
| | | 2021 | | |||
Prepaid materials | | | | $ | 614,319 | | |
Prepaid licenses | | | | | 61,581 | | |
Prepaid research fees | | | | | 37,013 | | |
Prepaid insurance | | | | | 23,984 | | |
Prepaid rent | | | | | 11,352 | | |
Other | | | | | 50,127 | | |
Total prepaid expenses and other current assets | | | | $ | 798,376 | | |
| | | 2021 | | |||
2022 | | | | $ | 47,502 | | |
2023 | | | | | 47,502 | | |
2024 | | | | | 11,876 | | |
Total lease payments | | | | $ | 106,880 | | |
Less: imputed interest | | | | | (10,668) | | |
Total operating lease liabilities | | | | $ | 96,212 | | |
| | | 2021 | |
Expected stock price volatility | | | 85.75% – 86.62% | |
Risk-free interest rate | | | 0.84% – 1.22% | |
Expected term | | | 5 years – 6 years | |
Estimated value of stock per share | | | $3.07 | |
Estimated forfeiture rate | | | 10% | |
| | | Incentive Stock Options | | | Nonqualified Stock Options | | ||||||||||||||||||
| | | Number of Shares | | | Weighted Average Exercise Prices | | | Number of Shares | | | Weighted Average Exercise Prices | | ||||||||||||
Outstanding at December 31, 2020 | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Granted | | | | | 244,240 | | | | | $ | 3.07 | | | | | | 70,760 | | | | | $ | 3.07 | | |
Exercised | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding at December 31, 2021 | | | | | 244,240 | | | | | $ | — | | | | | | 70,760 | | | | | $ | — | | |
Exercisable at December 31, 2021 | | | | | — | | | | | | | | | | | | 6,250 | | | | | | | | |
| | | Amounts | | |||
Years Ending December 31 | | | | | | | |
2022 | | | | $ | 6,366,684 | | |
2023 | | | | | 1,500,000 | | |
Total | | | | | 7,866,684 | | |
Less: Unamortized acquisition discount | | | | | (578,589) | | |
Total acquisition obligation | | | | $ | 7,288,095 | | |
| | | 2021 | | |||
Deferred tax assets | | | | | | | |
Tax loss carryforwards | | | | $ | 3,041,100 | | |
Tax credits | | | | | 391,500 | | |
Stock Compensation | | | | | 10,400 | | |
Intangible asset | | | | | 388,300 | | |
Total deferred tax assets | | | | | 3,831,300 | | |
Valuation allowance | | | | | (3,698,400) | | |
Net deferred tax assets | | | | | 132,900 | | |
Deferred tax liabilities | | | | | | | |
Debt discount | | | | | (132,900) | | |
Total deferred tax liabilities | | | | | (132,900) | | |
Net deferred tax assets | | | | $ | — | | |
| | | 2021 | | |||||||||
| | | Amount | | | Pretax Earnings | | ||||||
U.S. federal tax at statutory rate | | | | $ | (5,020,400) | | | | | | 21.0% | | |
State taxes, net of federal benefit | | | | | (455,300) | | | | | | 1.9% | | |
Non-deductible expenses | | | | | 4,500 | | | | | | 0.0% | | |
Non-deductible IPR&D expense | | | | | 2,351,200 | | | | | | (9.9)% | | |
Foreign rate differential | | | | | 33,700 | | | | | | (0.1)% | | |
Credits | | | | | (391,500) | | | | | | 1.6% | | |
Other | | | | | 100 | | | | | | 0.0% | | |
Change in valuation allowance | | | | | 3,477,700 | | | | | | (14.5)% | | |
Provision (benefit) for income taxes | | | | $ | — | | | | | | 0.0% | | |
| | | Page(s) | | |||
Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | D-4 | | | |
| | | | D-5 | | | |
| | | | D-6 | | | |
| | | | D-7 | | | |
| | | | D-8 – D-16 | | |
| | | As of | | |||||||||
| | | June 30, 2022 | | | December 31, 2021 | | ||||||
| | | | | | | | | (audited) | | |||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 7,934,183 | | | | | $ | 5,010,224 | | |
Restricted cash | | | | | 125,000 | | | | | | 125,000 | | |
Accounts receivable | | | | | 1,312,248 | | | | | | 268,166 | | |
Unbilled accounts receivable | | | | | 1,451,330 | | | | | | 328,012 | | |
Funding receivable | | | | | 701,249 | | | | | | 6,315,637 | | |
Prepaid expenses and other current assets | | | | | 564,128 | | | | | | 798,376 | | |
Total current assets | | | | | 12,088,138 | | | | | | 12,845,415 | | |
Operating lease right-of-use asset | | | | | 32,740 | | | | | | 96,212 | | |
Intangible asset | | | | | 165,600 | | | | | | 165,600 | | |
Total assets | | | | $ | 12,286,478 | | | | | $ | 13,107,227 | | |
Liabilities and Stockholders’ Deficit | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,488,899 | | | | | $ | 313,355 | | |
Accrued expenses | | | | | 307,782 | | | | | | 75,115 | | |
Accrued placement fee | | | | | 49,087 | | | | | | 442,095 | | |
Accrued bonuses | | | | | 688,579 | | | | | | 883,747 | | |
Operating lease liability | | | | | 32,740 | | | | | | 40,323 | | |
Acquisition obligation, less unamortized discount of $250,919 and $567,765 as of June 30, 2022 and December 31, 2021 | | | | | 7,615,765 | | | | | | 5,798,919 | | |
Total current liabilities | | | | | 11,182,852 | | | | | | 7,553,554 | | |
Operating lease liability, less current portion | | | | | — | | | | | | 55,889 | | |
Acquisition obligation, less current portion, less unamortized discount of $0 and $10,824 as of June 30, 2022 and December 31, 2021 | | | | | — | | | | | | 1,489,176 | | |
Total liabilities | | | | | 11,182,852 | | | | | | 9,098,619 | | |
Commitments and Contingencies (Note 6) | | | | | — | | | | | | — | | |
Preferred equity | | | | | | | | | | | | | |
Preferred stock, 5 shares authorized, $0.001 par value; 5 shares issued and outstanding with a liquidation preference of $38,134,262 as of June 30, 2022 | | | | | 38,134,262 | | | | | | 33,583,912 | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Common stock, 10,000,000 shares authorized, $.001 par value; 3,536,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | | | | | 3,536 | | | | | | 3,536 | | |
Additional paid-in capital | | | | | 494,759 | | | | | | — | | |
Accumulated deficit | | | | | (37,525,332) | | | | | | (29,576,083) | | |
Accumulated other comprehensive loss | | | | | (3,599) | | | | | | (2,757) | | |
Total stockholders’ equity | | | | | (37,030,636) | | | | | | (29,575,304) | | |
Total liabilities, preferred equity and stockholders’ deficit | | | | $ | 12,286,478 | | | | | $ | 13,107,227 | | |
| | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 to June 30, 2021 | | ||||||
Revenues | | | | | | | | | | | | | |
Government sponsored product development | | | | $ | 8,393,491 | | | | | $ | — | | |
Non-government sponsored product development | | | | | 1,000,000 | | | | | | — | | |
Total revenues | | | | | 9,393,491 | | | | | | — | | |
Research and development expenses: | | | | | | | | | | | | | |
Government and non-government sponsored product development | | | | | 6,363,077 | | | | | | — | | |
Non-sponsored research and development | | | | | 7,377,712 | | | | | | 1,702,145 | | |
In-process research and development expenses | | | | | — | | | | | | 1,575,763 | | |
Total research and development expenses | | | | | 13,740,789 | | | | | | 3,277,908 | | |
General and administrative expenses | | | | | 3,233,282 | | | | | | 1,189,506 | | |
Total operating expenses | | | | | 16,974,071 | | | | | | 4,467,414 | | |
Operating loss | | | | | (7,580,580) | | | | | | (4,467,414) | | |
Other expense | | | | | | | | | | | | | |
Interest expense, net | | | | | (330,513) | | | | | | 157 | | |
Foreign currency transaction loss | | | | | (1,292) | | | | | | (523) | | |
Total other expense | | | | | (331,805) | | | | | | (366) | | |
Loss before income taxes | | | | | (7,912,385) | | | | | | (4,467,780) | | |
Provision for income taxes | | | | | (36,864) | | | | | | — | | |
Net loss | | | | | (7,949,249) | | | | | | (4,467,780) | | |
Other comprehensive loss | | | | | | | | | | | | | |
Currency translation adjustment | | | | | (842) | | | | | | 4,184 | | |
Comprehensive loss | | | | $ | (7,950,091) | | | | | $ | (4,463,596) | | |
| | | Preferred Equity | | | | Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock — Series X | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income | | | Total Stockholders’ Equity | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balances at March 2, 2021 (Inception) | | | | | — | | | | | $ | — | | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Series X preferred stock, net of issuance costs | | | | | 5 | | | | | | 12,527,167 | | | | | | | — | | | | | | — | | | | | | 1,422,836 | | | | | | — | | | | | | — | | | | | | 1,422,836 | | |
Preferred shareholder contributions, net of issuance costs | | | | | — | | | | | | 5,080,705 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
Issuance of common stock | | | | | — | | | | | | — | | | | | | | 3,536,000 | | | | | | 3,536 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,536 | | |
Currency translation adjustment | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,184 | | | | | | 4,184 | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,467,780) | | | | | | — | | | | | | (4,467,780) | | |
Balances at June 30, 2021 | | | | | 5 | | | | | $ | 17,607,872 | | | | | | | 3,536,000 | | | | | $ | 3,536 | | | | | $ | 1,423,836 | | | | | $ | (4,467,780) | | | | | $ | 4,184 | | | | | $ | (3,036,224) | | |
| | | Preferred Equity | | | | Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock — Series X | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income | | | Total Stockholders’ Equity | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 (audited) | | | | | 5 | | | | | $ | 33,583,912 | | | | | | | 3,536,000 | | | | | $ | 3,536 | | | | | $ | — | | | | | $ | (29,576,083) | | | | | $ | (2,757) | | | | | $ | (29,575,304) | | |
Preferred shareholder contributions, net of issuance costs | | | | | — | | | | | | 4,550,350 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 494,759 | | | | | | — | | | | | | — | | | | | $ | 494,759 | | |
Currency translation adjustment | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (842) | | | | | $ | (842) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,949,249) | | | | | | — | | | | | $ | (7,949,249) | | |
Balances at June 30, 2022 | | | | | 5 | | | | | $ | 38,134,262 | | | | | | | 3,536,000 | | | | | $ | 3,536 | | | | | $ | 494,759 | | | | | $ | (37,525,332) | | | | | $ | (3,599) | | | | | $ | (37,030,636) | | |
| | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 to June 30, 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (7,949,249) | | | | | $ | (4,467,780) | | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | | | | | | | | | | |
Amortization of acquisition discount | | | | | 327,670 | | | | | | — | | |
Amortization of right-of-use asset | | | | | 19,511 | | | | | | — | | |
Foreign currency translation | | | | | 320 | | | | | | (4,757) | | |
Stock-based compensation | | | | | 494,759 | | | | | | 1,000 | | |
Changes in assets and liabilities, net of effects of acquisitions | | | | | | | | | | | | | |
Accounts receivable | | | | | (1,044,082) | | | | | | — | | |
Unbilled accounts receivable | | | | | (1,123,318) | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 286,291 | | | | | | (50,010) | | |
Accounts payable | | | | | 2,103,318 | | | | | | 1,345,292 | | |
Accrued expenses and other liabilities | | | | | 68,969 | | | | | | (1,225,892) | | |
Operating lease liability, net | | | | | (19,511) | | | | | | — | | |
Net cash used in operating activities | | | | | (6,835,322) | | | | | | (4,402,147) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from Series X preferred stock transaction, net | | | | | 9,771,732 | | | | | | 16,342,061 | | |
Proceeds from issuance of common stock | | | | | — | | | | | | 3,536 | | |
Effects of exchange rate changes on cash | | | | | (12,451) | | | | | | 49 | | |
Net cash provided by financing activities | | | | | 9,759,281 | | | | | | 16,345,646 | | |
Net change in cash, cash equivalents, and restricted cash | | | | | 2,923,959 | | | | | | 11,943,499 | | |
Consolidated cash and restricted cash at beginning of period | | | | | 5,135,224 | | | | | | — | | |
Consolidated cash and restricted cash at end of period | | | | $ | 8,059,183 | | | | | $ | 11,943,499 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | |
Remeasurement of operating lease right-of-use asset for lease modification | | | | $ | 40,295 | | | | | $ | — | | |
Cash paid for interest | | | | | 3,914 | | | | | | — | | |
Accrued capital contributions, net of issuance costs | | | | | 652,162 | | | | | | 2,688,647 | | |
| | | 2022 | |
Expected stock price volatility | | | 82.98% | |
Risk-free interest rate | | | 2.00% – 2.84% | |
Expected term | | | 6 years – 7 years | |
Estimated value of stock per share | | | $12.28 | |
| | | Incentive Stock Options | | | Nonqualified Stock Options | | ||||||||||||||||||
| | | Number of Shares | | | Weighted Average Exercise Prices | | | Number of Shares | | | Weighted Average Exercise Prices | | ||||||||||||
Outstanding at December 31, 2021 (audited) | | | | | 244,240 | | | | | $ | 3.07 | | | | | | 70,760 | | | | | $ | 3.07 | | |
Granted | | | | | 225,741 | | | | | $ | 12.28 | | | | | | 308,759 | | | | | $ | 12.28 | | |
Exercised | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Forfeited | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Outstanding at June 30, 2022 | | | | | 469,981 | | | | | $ | 7.49 | | | | | | 379,519 | | | | | $ | 10.56 | | |
Exercisable at June 30, 2022 | | | | | 20,936 | | | | | $ | 3.07 | | | | | | 16,458 | | | | | $ | 3.07 | | |
| | | Amounts | | |||
Years Ending December 31 | | | | | | | |
2022 | | | | $ | 6,366,684 | | |
2023 | | | | | 1,500,000 | | |
Total | | | | | 7,866,684 | | |
Less: Unamortized acquisition discount | | | | | (250,919) | | |
Total acquisition obligation | | | | $ | 7,615,765 | | |
| | | Idera Pharmaceuticals, Inc. (Historical) | | | Aceragen, Inc. Historical for the Period from January 1, 2022 through September 28, 2022 | | | Transaction Accounting Adjustments | | | Notes | | | Pro Forma Combined | | |||||||||||||||
Government contracts revenue | | | | $ | 49 | | | | | $ | 13,209 | | | | | | — | | | | | | | | | | | $ | 13,258 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | | | | 5,960 | | | | | | 21,556 | | | | | | — | | | | | | | | | | | | 27,516 | | |
General and administrative | | | | | 7,325 | | | | | | 7,978 | | | | | | (2,966) | | | | | | A | | | | | | 12,337 | | |
Acquisition-related costs | | | | | 2,836 | | | | | | — | | | | | | (2,836) | | | | | | A | | | | | | — | | |
Restructuring and other costs | | | | | 2,802 | | | | | | — | | | | | | (2,802) | | | | | | A | | | | | | — | | |
Total operating expenses | | | | | 18,923 | | | | | | 29,534 | | | | | | (8,604) | | | | | | | | | | | | 39,853 | | |
Loss from operations | | | | | (18,874) | | | | | | (16,325) | | | | | | 8,604 | | | | | | | | | | | | (26,595) | | |
Non-operating income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net | | | | | 156 | | | | | | (482) | | | | | | (67) | | | | | | B | | | | | | (393) | | |
Warrant revaluation gain | | | | | 116 | | | | | | — | | | | | | (116) | | | | | | C | | | | | | — | | |
Foreign currency exchange and other gains (losses) | | | | | (21) | | | | | | (2) | | | | | | — | | | | | | | | | | | | (23) | | |
Change in fair value of Series X preferred stock liability | | | | | — | | | | | | — | | | | | | (1,536) | | | | | | D | | | | | | (1,536) | | |
Loss before income tax benefit | | | | | (18,623) | | | | | | (16,809) | | | | | | 6,885 | | | | | | | | | | | | (28,547) | | |
Income tax benefit | | | | | 6,039 | | | | | | (37) | | | | | | (6,039) | | | | | | E | | | | | | (37) | | |
Net loss | | | | $ | (12,584) | | | | | $ | (16,846) | | | | | $ | 846 | | | | | | | | | | | $ | (28,584) | | |
Net loss per share, basic and diluted | | | | $ | (0.24) | | | | | $ | (4.99) | | | | | | | | | | | | | | | | | $ | (0.26) | | |
Weighted average common shares outstanding, basic and diluted | | | | | 53,052 | | | | | | 3,373 | | | | | | 55,257 | | | | | | F | | | | | | 111,682 | | |
| | | Idera Pharmaceuticals, Inc. (Historical) | | | Aceragen, Inc. (Historical) | | | Arrevus, Inc. Historical for the Period from January 1, 2021 through October 24, 2021 | | | Other Transaction Accounting Adjustments | | | Notes | | | Pro Forma Aceragen, Inc. | | | Transaction Accounting Adjustments | | | Notes | | | Pro Forma Combined | | |||||||||||||||||||||||||||
Government contracts revenue | | | | $ | — | | | | | $ | 1,005 | | | | | $ | 2,867 | | | | | $ | — | | | | | | | | | | | $ | 3,872 | | | | | $ | — | | | | | | | | | | | $ | 3,872 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | | | | 16,375 | | | | | | 21,007 | | | | | | 2,010 | | | | | | — | | | | | | | | | | | | 23,017 | | | | | | — | | | | | | | | | | | | 39,392 | | |
General and administrative | | | | | 9,976 | | | | | | 3,794 | | | | | | 589 | | | | | | (104) | | | | | | A | | | | | | 4,279 | | | | | | — | | | | | | | | | | | | 14,255 | | |
Restructuring charge | | | | | 1,322 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | 1,322 | | |
Total operating expenses | | | | | 27,673 | | | | | | 24,801 | | | | | | 2,599 | | | | | | (104) | | | | | | | | | | | | 27,296 | | | | | | — | | | | | | | | | | | | 54,969 | | |
Loss from operations | | | | | (27,673) | | | | | | (23,796) | | | | | | 268 | | | | | | 104 | | | | | | | | | | | | (23,424) | | | | | | — | | | | | | | | | | | | (51,097) | | |
Non-operating income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | 2 | | | | | | (109) | | | | | | (36) | | | | | | 36 | | | | | | G | | | | | | (109) | | | | | | (89) | | | | | | B | | | | | | (196) | | |
Warrant revaluation gain | | | | | 6,983 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | 6,983 | | |
Future tranche right revaluation gain | | | | | 118,803 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | 118,803 | | |
Foreign currency exchange loss | | | | | (24) | | | | | | (2) | | | | | | — | | | | | | — | | | | | | | | | | | | (2) | | | | | | — | | | | | | | | | | | | (26) | | |
Change in fair value of Series X preferred stock liability | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | (2,734) | | | | | | D | | | | | | (2,734) | | |
Other income | | | | | — | | | | | | — | | | | | | 54 | | | | | | — | | | | | | | | | | | | 54 | | | | | | — | | | | | | | | | | | | 54 | | |
Net income (loss) before income tax benefit | | | | | 98,091 | | | | | | (23,907) | | | | | | 286 | | | | | | 140 | | | | | | | | | | | | (23,481) | | | | | | (2,823) | | | | | | | | | | | | 71,787 | | |
Income tax benefit | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 6,039 | | | | | | E | | | | | | 6,039 | | |
Net income (loss) | | | | $ | 98,091 | | | | | $ | (23,907) | | | | | $ | 286 | | | | | $ | 140 | | | | | | | | | | | $ | (23,481) | | | | | $ | 3,216 | | | | | | | | | | | $ | 77,826 | | |
Undistributed earnings to preferred stockholders | | | | | (1,150) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | (1,150) | | |
Net income (loss) attributable to common stockholders | | | | $ | 96,941 | | | | | $ | (23,907) | | | | | $ | 286 | | | | | $ | 140 | | | | | | | | | | | $ | (23,481) | | | | | $ | 3,216 | | | | | | | | | | | $ | 76,676 | | |
Net income (loss) per share applicable to common stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | $ | 1.97 | | | | | $ | (8.15) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.71 | | |
Diluted | | | | $ | (0.58) | | | | | $ | (8.15) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.67) | | |
Weighted-average number of common shares used in computing net income (loss) per share applicable to common stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | | | 49,203 | | | | | | 2,933 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 55,424 | | | | | | F | | | | | | 107,560 | | |
Diluted | | | | | 50,127 | | | | | | 2,933 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 55,424 | | | | | | F | | | | | | 108,484 | | |
Net loss – diluted | | | | | (28,845) | | | | | | (23,907) | | | | | | 286 | | | | | | 140 | | | | | | | | | | | | (23,481) | | | | | | 3,216 | | | | | | | | | | | | (72,591) | | |
| Fair value of Idera common stock issued to Aceragen stockholders | | | | $ | 1,672 | | |
| Fair value of Idera Series Z convertible preferred stock issued to Aceragen stockholders | | | | | 26,971 | | |
| Fair value of Idera Series X preferred stock issued to Aceragen stockholders | | | | | 20,400 | | |
| Fair value of Aceragen stock options and warrants assumed and allocated to consideration paid | | | | | 6,670 | | |
| Total consideration paid | | | | $ | 55,713 | | |
| Assets acquired: | | | | | | | |
| Cash, cash equivalents and restricted cash | | | | $ | 5,482 | | |
| Receivables | | | | | 1,914 | | |
| Prepaid expenses and other assets | | | | | 575 | | |
| In-process research and development assets | | | | | 63,067 | | |
| Goodwill | | | | | 9,934 | | |
| | | | | | 80,972 | | |
| Liabilities assumed: | | | | | | | |
| Accounts payable and accrued expenses | | | | | 7,827 | | |
| Assumed debt obligations | | | | | 7,476 | | |
| Operating lease liabilities | | | | | 22 | | |
| Deferred tax liability | | | | | 9,934 | | |
| | | | | | 25,259 | | |
| Net assets acquired | | | | $ | 55,713 | | |
| | | Nine Months Ended September 30, 2022 | | | Year Ended December 31, 2021 | | ||||||
Issuance of Idera common stock to Aceragen stockholders | | | | | 57,716 | | | | | | 58,357 | | |
Vesting of equity awards issued to Aceragen stockholders | | | | | 914 | | | | | | — | | |
Elimination of historical Aceragen basic weighted average shares outstanding | | | | | (3,373) | | | | | | (2,933) | | |
Pro forma adjustment | | | | | 55,257 | | | | | | 55,424 | | |
(in thousands) | | | For the period from March 2, 2021 (inception) through December 31, 2021 | | |||
Revenues: | | | | | | | |
Government sponsored product development | | | | $ | 897 | | |
Consulting services | | | | | 108 | | |
Total revenues | | | | | 1,005 | | |
(in thousands) | | | For the period from March 2, 2021 (inception) through December 31, 2021 | | |||
Direct costs by program: | | | | | | | |
Government sponsored product development: | | | | $ | 624 | | |
Non-sponsored research and development: | | | | | 8,542 | | |
Consulting Services | | | | | 31 | | |
In-process research and development | | | | | 11,810 | | |
Total Research and Development Costs | | | | $ | 21,007 | | |
(in thousands) | | | For the period from March 2, 2021 (inception) through December 31, 2021 | | |||
General and administrative expenses | | | | $ | 3,794 | | |
(in thousands) | | | Three Months Ended June 30, 2022 | | | Three Months Ended June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Government sponsored product development | | | | $ | 3,705 | | | | | $ | — | | | | | $ | 3,705 | | | | | | — | | |
Non-government sponsored product development | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total Revenues | | | | $ | 3,705 | | | | | $ | — | | | | | $ | 3,705 | | | | | | — | | |
(in thousands) | | | Three Months Ended June 30, 2022 | | | Three Months Ended June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Government and non-government sponsored product development | | | | $ | 2,745 | | | | | $ | — | | | | | $ | 2,745 | | | | | | — | | |
Non-sponsored research and development | | | | $ | 3,768 | | | | | $ | 662 | | | | | $ | 3,102 | | | | | | 469% | | |
Total research and development expenses | | | | $ | 6,513 | | | | | $ | 662 | | | | | $ | 5,851 | | | | | | 884% | | |
(in thousands) | | | Three Months Ended June 30, 2022 | | | Three Months Ended June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
General and administrative expenses | | | | $ | 1,735 | | | | | $ | 851 | | | | | $ | 884 | | | | | | 104% | | |
(in thousands) | | | Three Months Ended June 30, 2022 | | | Three Months Ended June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Interest expense (income), net | | | | $ | 167 | | | | | $ | — | | | | | $ | 167 | | | | | | — | | |
(in thousands) | | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 (inception) to June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Government sponsored product development | | | | $ | 8,393 | | | | | $ | — | | | | | $ | 8,393 | | | | | | — | | |
Non-government sponsored product development | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | | | | | — | | |
Total Revenues | | | | $ | 9,393 | | | | | $ | — | | | | | $ | 9,393 | | | | | | — | | |
(in thousands) | | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 (inception) to June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Government and non-government sponsored product development | | | | $ | 6,363 | | | | | $ | — | | | | | $ | 6,363 | | | | | | — | | |
Non-sponsored research and development | | | | | 7,378 | | | | | | 1,702 | | | | | | 5,676 | | | | | | 333% | | |
In-Process Research and Development | | | | | — | | | | | | 1,576 | | | | | | (1,576) | | | | | | — | | |
Total research and development expenses | | | | $ | 13,741 | | | | | $ | 3,278 | | | | | $ | 10,463 | | | | | | 319% | | |
(in thousands) | | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 (inception) to June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
General and administrative expenses | | | | $ | 3,233 | | | | | $ | 1,190 | | | | | $ | 2,044 | | | | | | 172% | | |
(in thousands) | | | Six Months Ended June 30, 2022 | | | Period from March 2, 2021 (inception) to June 30, 2021 | | | $ Variance | | | % Variance | | ||||||||||||
Interest expense, net | | | | $ | 331 | | | | | $ | — | | | | | $ | 331 | | | | | | — | | |