☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
British Columbia, Canada | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common | ZYME | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
☐ | ||||||
Emerging growth company | ☐ |
Auditor Name: KPMG LLP | Auditor Location: Vancouver, Canada | Auditor Firm PCAOB ID: 85 |
PART III | 4 | |||||
Item 10. | ||||||
Item 11. | ||||||
Item 12. | ||||||
Item 13. | ||||||
Item 14. | 36 | |||||
PART IV | 38 | |||||
Item 15. | Exhibits, Financial Statement Schedules | 38 | ||||
Item 10. | Directors, Executive Officers and Corporate Governance |
Name | Residence | Age | Position(s) | |||
Kenneth Galbraith | Cambridge, United Kingdom | 59 | President, Chief Executive Officer and Chair of Board of Directors | |||
Susan Mahony (1) (2) | Indiana, USA | 57 | Director | |||
Kelvin Neu (4) | Singapore | 48 | Director | |||
Troy M. Cox (1) (3) | Florida, USA | 57 | Director | |||
Kenneth Hillan (3)(4) | California, USA | 61 | Director | |||
Hollings C. Renton (2) | California, USA | 75 | Director | |||
Natalie Sacks (3) (4) | California, USA | 57 | Director | |||
Lota Zoth (1) (2) | Texas, USA | 62 | Director |
(1) | Member of the audit committee. |
(2) | Member of the compensation committee. |
(3) | Member of the nominating and corporate governance committee. |
(4) | Member of the research and development committee. |
Name | Residence | Age | Position(s) | |||
Kenneth Galbraith | Cambridge, United Kingdom | 59 | President, Chief Executive Officer and Chair of Board of Directors | |||
Neil Klompas, CPA, CA | British Columbia, Canada | 50 | Chief Operating Officer | |||
Neil Josephson, M.D. | Washington, USA | 61 | Chief Medical Officer | |||
Christopher Astle, Ph.D. | British Columbia, Canada | 42 | Senior Vice President, Chief Financial Officer |
Item 11. | Executive Compensation |
* | Please see the section entitled “Executive Team Changes and Restructuring” below for additional information regarding the changes to our management team. References to “Chief Executive Officer” in this CD&A mean Dr. Tehrani, unless specifically noted otherwise. |
NYSE | TSX | |||||||||||||||
High | Low | High | Low | |||||||||||||
US$ | C$ | |||||||||||||||
Quarter Ended | ||||||||||||||||
December 31, 2019 | 45.83 | 24.00 | n/a | n/a | ||||||||||||
September 30, 2019 | 29.75 | 21.52 | 39.10 | 29.64 | ||||||||||||
June 30, 2019 | 23.17 | 14.65 | 30.43 | 19.75 | ||||||||||||
March 31, 2019 | 17.30 | 13.96 | 23.02 | 18.73 | ||||||||||||
December 31, 2018 | 15.73 | 10.72 | 20.52 | 14.34 | ||||||||||||
September 30, 2018 | 16.88 | 12.15 | 21.69 | 15.84 | ||||||||||||
June 30, 2018 | 29.00 | 10.37 | 30.36 | 13.37 | ||||||||||||
March 31, 2018 | 14.00 | 7.69 | 17.31 | 9.62 | ||||||||||||
December 31, 2017 | 9.33 | 6.87 | 11.60 | 9.00 | ||||||||||||
September 30, 2017 | 9.12 | 6.25 | 11.48 | 8.05 | ||||||||||||
April 28, 2017 to June 30, 2017 | 14.25 | 7.24 | 19.55 | 10.50 |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(dollars in thousands except share and per share amounts) | ||||||||||||||||||||
Consolidated Statement of Operations Data | ||||||||||||||||||||
Revenue | $ | 29,544 | $ | 53,019 | $ | 51,762 | $ | 11,009 | $ | 9,660 | ||||||||||
Operating Expenses: | ||||||||||||||||||||
Research and development | 115,900 | 56,926 | 41,144 | 35,551 | 24,403 | |||||||||||||||
General and administrative | 64,177 | 29,457 | 18,550 | 12,554 | 5,217 | |||||||||||||||
Impairment on acquired IPR&D | 768 | — | 1,536 | 768 | — | |||||||||||||||
Total operating expenses | 180,845 | 86,383 | 61,230 | 48,873 | 29,620 | |||||||||||||||
Loss from Operations | (151,301 | ) | (33,364 | ) | (9,468 | ) | (37,864 | ) | (19,960 | ) | ||||||||||
Other income (expense), net | 5,282 | (1,021 | ) | (494 | ) | (1,020 | ) | 824 | ||||||||||||
Loss before income taxes | (146,019 | ) | (34,385 | ) | (9,962 | ) | (38,884 | ) | (19,136 | ) | ||||||||||
Net income tax recovery (expense), net | 582 | (2,171 | ) | (444 | ) | 5,075 | (34 | ) | ||||||||||||
Net loss | $ | (145,437 | ) | $ | (36,556 | ) | $ | (10,406 | ) | $ | (33,809 | ) | $ | (19,170 | ) | |||||
Net loss per common share (basic) (1) | (3.83 | ) | (1.26 | ) | (0.51 | ) | (2.65 | ) | (1.70 | ) | ||||||||||
Net loss per common share (diluted) (1) | (3.83 | ) | (1.26 | ) | (0.64 | ) | (2.65 | ) | (1.70 | ) | ||||||||||
Weighted-average number of common shares (basic) (1) | 38,022,014 | 29,089,896 | 21,249,414 | 12,736,567 | 11,266,451 | |||||||||||||||
Weighted-average number of commons shares (diluted) (1) | 38,022,014 | 29,089,896 | 21,321,209 | 12,736,567 | 11,266,451 |
Year Ended December 31, | ||||||||||||||||
2019 | 2018 | 2017 | 2016 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Consolidated Balance Sheet Data | ||||||||||||||||
Cash and cash equivalents | $ | 128,451 | $ | 42,205 | $ | 35,946 | $ | 16,437 | ||||||||
Short-term investments | 170,453 | 157,959 | 51,851 | 23,824 | ||||||||||||
Working capital | 229,278 | 174,383 | 77,674 | 29,928 | ||||||||||||
Long-term obligations | 39,972 | 34,001 | 866 | 9,577 | ||||||||||||
Total assets | 368,205 | 244,477 | 131,955 | 93,995 | ||||||||||||
Total liabilities | 122,524 | 63,987 | 15,527 | 26,133 | ||||||||||||
Total shareholders’ equity | 245,681 | 180,490 | 116,428 | 9,002 |
Company’s executives, including each of the named executive officers (other than Dr. Tehrani) and recommended the 2021 compensation for Dr. Tehrani, which recommendation was approved by the Board of Directors. |
Adverum Biotechnologies, Inc. | Epizyme, Inc. | MacroGenics, Inc. | ||
Alector, Inc. (1) | Fate Therapeutics, Inc. | NGM Biopharmaceuticals, Inc. (1) | ||
Allakos Inc. | G1 Therapeutics, Inc. | Principia Biopharma Inc. (1) | ||
AnaptysBio, Inc. | Gossamer Bio, Inc. (1) | REGENXBIO Inc. | ||
Deciphera Pharmaceuticals, Inc. | Iovance Biotherapeutics, Inc. (1) | Turning Point Therapeutics, Inc. (1) | ||
Denali Therapeutics Inc. | Karyopharm Therapeutics Inc. | Xencor, Inc. | ||
Dicerna Pharmaceuticals, Inc. | Kura Oncology, Inc. |
(1) | Added to the peer group in July 2020. The following companies were deleted from the peer group in July 2020: Acceleron Pharma Inc., Alder Biopharmaceuticals, Inc., Cellular Biomedicine Group, Inc., CytomX Therapeutics, Inc., Ra Pharmaceuticals, Inc., Stemline Therapeutics, Inc., and Voyager Therapeutics, Inc. |
Name and Principal Position | 2020 Base Salary ($) | 2021 Base Salary ($) | Increase between 2020 and 2021 | |||||||||
Ali Tehrani, Former President and CEO | 573,036 | 593,092 | 3.5 | % | ||||||||
Neil Klompas, Chief Operating Officer (former CFO) | 424,424 | 437,124 | 3.0 | % | ||||||||
Neil Josephson, Chief Medical Officer (1) | 406,850 | 453,200 | 11.4 | % | ||||||||
Anthony Polverino, Former Executive Vice President, Early Development and Chief Scientific Officer | 428,000 | 440,800 | 3.0 | % | ||||||||
James Priour, Former Chief Commercial Officer (2) | 375,000 | 400,000 | 6.7 | % | ||||||||
Diana Hausman, Former Chief Medical Officer (3) | 449,946 | 463,446 | 3.0 | % |
(1) | Dr. Josephson was promoted from Vice President, Clinical Research to Senior Vice President, Clinical Research in 2020. Dr. Josephson was further promoted to Chief Medical Officer in 2021. As a result of this promotion, his base salary increased to $480,000 in November 2021 and the table above does not reflect the November 2021 increase. Salary paid to Dr. Josephson in 2021 is set forth in the “Summary Compensation Table” below. |
(2) | Mr. Priour joined the Company in April 2020 and was promoted to Chief Commercial Officer in January 2021. |
(3) | On April 15, 2021, Dr. Hausman provided notice of her resignation as Chief Medical Officer. As such, she did not receive her full base salary for 2021 as listed in this table. Salary paid to Dr. Hausman in 2021 is set forth in the “Summary Compensation Table” below. |
Name | 2020 Target Bonus (% of Base Salary) | 2021 Target Bonus (% of Base Salary) | ||||||
Ali Tehrani, Former President and CEO | 55 | % | 55 | % | ||||
Neil Klompas, Chief Operating Officer (former CFO) | 40 | % | 40 | % | ||||
Neil Josephson, Chief Medical Officer (1) | 30 | % | 35 | % | ||||
Anthony Polverino, Former Executive Vice President, Early Development and Chief Scientific Officer | 40 | % | 40 | % | ||||
James Priour, Former Chief Commercial Officer (2) | 35 | % | 40 | % | ||||
Diana Hausman, Former Chief Medical Officer (3) | 40 | % | 40 | % |
(1) | Dr. Josephson was promoted from Vice President, Clinical Research to Senior Vice President, Clinical Research in 2020. Dr. Josephson was further promoted to Chief Medical Officer in 2021. As a result of this promotion, his target bonus increased to 40% in November 2021 and the table above does not reflect the November 2021 increase. |
(2) | Mr. Priour joined the Company in April 2020 and was promoted to Chief Commercial Officer in January 2021. |
(3) | Dr. Hausman forfeited her right to receive payments under the 2021 bonus plan upon her resignation in April 2021. |
2021 Corporate Goal Category | Key Elements of Goal | Target Weight of Goal | ||
Clinical | ZW25-203: | 20% | ||
ZW25-301: | 25% | |||
ZW49-101: | 15% | |||
Commercial | Finalize comprehensive zanidatamab breast cancer strategy by June 30, 2021 | 10% | ||
Preclinical Research | Two preclinical development decisions by December 31, 2021 | 15% | ||
Corporate Finance and Business Development | Execute on (a) a material dilutive or non-dilutive financing event to support financial runway through launch in BTC; and (b) achieve significant new business development cash flow in 2021 | 15% | ||
Total | 100% |
Name | Grant Date | Restricted Stock Units Granted (#) (1) | Stock Options Granted (#) (2) | Exercise Price of Stock Options ($/Sh) (3) | Grant Date Fair Value of Stock and Option Awards ($) (4) | |||||||||||||||
Ali Tehrani | 3/10/2021 | — | 150,000 | 34.82 | 3,625,121 | |||||||||||||||
3/10/2021 | 25,000 | — | — | 870,500 | ||||||||||||||||
Neil Klompas | 3/10/2021 | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||
3/10/2021 | 8,125 | — | — | 282,913 | ||||||||||||||||
Neil Josephson | 3/10/2021 | — | 30,000 | 34.82 | 725,024 | |||||||||||||||
5/6/2021 | — | 15,000 | 29.49 | 299,271 | ||||||||||||||||
11/10/2021 | — | 105,943 | 21.18 | 1,501,228 | ||||||||||||||||
3/10/2021 | 5,000 | — | — | 174,100 | ||||||||||||||||
11/10/2021 | 17,657 | — | — | 373,975 | ||||||||||||||||
Anthony Polverino | 3/10/2021 | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||
3/10/2021 | 8,125 | — | — | 282,913 | ||||||||||||||||
James Priour | 3/10/2021 | — | 37,500 | 34.82 | 906,280 | |||||||||||||||
3/10/2021 | 6,250 | — | — | 217,625 | ||||||||||||||||
Diana Hausman | 3/10/2021 | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||
3/10/2021 | 8,125 | — | — | 282,913 |
(1) | Restricted stock units vest in three equal annual installments on each of the first, second, and third anniversaries of the date of grant. |
(2) | Options vest and become exercisable with respect to (i) 25% of the underlying shares one year after the grant date and (ii) the remainder of the underlying shares in 36 equal monthly installments following the first anniversary of the date of grant. |
(3) | The exercise price of the stock options is the closing price of the Company’ stock on the NYSE on the grant date. |
(4) | The amounts set forth in this column reflect the grant date fair value for restricted stock unit awards and stock option awards computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. See Note 2 to the “Notes to Consolidated Financial Statements – Summary of Significant Accounting Policies – Stock-Based Compensation” and Note 10(e) “Notes to Consolidated Financial Statements – Shareholders’ Equity – Stock-Based Compensation” included in our Annual Report on Form 10-K for our year ended December 31, 2021. |
Name and Principal Position | Year | Salary ($) (1) | Stock Awards ($) (2) | Option Awards ($) (2) | Non-Equity Incentive Plan Compensation ($) (1) (3) | All Other Compensation ($) (1) | Total ($) | |||||||||||||||||||||
Ali Tehrani, Former President & CEO | 2021 | 593,092 | 870,500 | 3,625,121 | — | 21,924 | (4) | 5,110,637 | ||||||||||||||||||||
2020 | 573,036 | 814,000 | 3,185,803 | 283,653 | 20,967 | (5) | 4,877,459 | |||||||||||||||||||||
2019 | 540,788 | — | 2,375,128 | 341,930 | 20,223 | (6) | 3,278,069 | |||||||||||||||||||||
Neil Klompas, Chief Operating Officer (former CFO) | 2021 | 437,124 | 282,913 | 1,178,164 | — | 2,277 | (7) | 1,900,478 | ||||||||||||||||||||
2020 | 424,424 | 264,000 | 1,033,233 | 163,403 | 2,037 | (8) | 1,887,097 | |||||||||||||||||||||
2019 | 379,082 | — | 1,060,041 | 172,422 | 12,629 | (9) | 1,624,174 | |||||||||||||||||||||
Neil Josephson, Chief Medical Officer (10) | 2021 | 456,653 | 548,075 | 2,525,523 | — | 17,438 | (11) | 3,547,689 | ||||||||||||||||||||
Anthony Polverino, Former Executive VP, Early Development & Chief Scientific Officer | 2021 | 440,800 | 282,913 | 1,178,164 | — | 16,031 | (12) | 1,917,908 | ||||||||||||||||||||
2020 | 428,000 | 264,000 | 1,033,233 | 158,360 | 20,348 | (13) | 1,903,941 | |||||||||||||||||||||
2019 | 400,000 | — | 758,019 | 178,000 | 384 | (14) | 1,336,403 | |||||||||||||||||||||
James Priour, Former Chief Commercial Officer (15) | 2021 | 400,000 | 217,625 | 906,280 | — | 17,438 | (16) | 1,541,343 | ||||||||||||||||||||
Diana Hausman, Former Chief Medical Officer (17) | 2021 | 173,792 | 282,913 | 1,178,164 | — | 11,220 | (18) | 1,646,089 | ||||||||||||||||||||
2020 | 449,946 | 264,000 | 1,033,233 | 166,480 | 20,188 | (19) | 1,933,847 | |||||||||||||||||||||
2019 | 432,640 | — | 758,019 | 192,525 | 21,341 | (20) | 1,404,525 |
(1) | Salary for all named executive officers is determined in U.S. dollars. However, 2021, 2020 and 2019 cash compensation amounts for Dr. Tehrani and Mr. Klompas were paid in Canadian dollars and have been converted to U.S. dollars for the purposes of the table. For 2021, 2020 and 2019, the U.S. dollar per Canadian dollar exchange rates used for such conversions were 0.7978, 0.7455 and 0.7537, which were the average annual Bank of Canada exchange rates for 2021, 2020 and 2019, respectively. |
(2) | The amounts set forth in these columns reflect the aggregate grant date fair value for restricted stock unit awards and option awards computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. See Note 2 to the “Notes to Consolidated Financial Statements – Summary of Significant Accounting Policies – Stock-Based Compensation” and Note 10(e) “Notes to Consolidated Financial Statements – Shareholders’ Equity – Stock-Based Compensation” included in our Annual Report on Form 10-K for our year ended December 31, 2021. |
(3) | The amounts reflect the dollar value of incentive bonuses paid in 2021 and 2020 for performance during 2020 and 2019, respectively, as discussed further above under “Executive Compensation – Components of Compensation Package – Cash Bonus.” |
(4) | Of the total amount for 2021, (i) $17,814 represents contributions to our registered retirement savings plan and (ii) $4,110 represents life insurance premiums through our group extended benefit plan. |
(5) | Of the total amount for 2020, (i) $17,191 represents contributions to our registered retirement savings plan and (ii) $3,776 represents life insurance premiums through our group extended benefit plan. |
(6) | Of the total amount for 2019, (i) $16,224 represents contributions to our registered retirement savings plan and (ii) $3,999 represents life insurance premiums through our group extended benefit plan. |
(7) | The total amount for 2021 represents life insurance premiums through our group extended benefit plan. |
(8) | The total amount for 2020 represents life insurance premiums through our group extended benefit plan. |
(9) | Of the total amount for 2019, (i) $10,474 represents contributions to our registered retirement savings plan and (ii) $2,155 represents life insurance premiums through our group extended benefit plan. |
(10) | Dr. Josephson was promoted to Chief Medical Officer in 2021. As a result of this promotion, his base salary increased to $480,000 in November 2021. |
(11) | Of the total amount for 2021, (i) $17,400 represents contributions to our 401(k) plan and (ii) $38 represents life insurance premiums through our group extended benefit plan. |
(12) | Of the total amount for 2021, (i) $15,993 represents contributions to our 401(k) plan and (ii) $38 represents life insurance premiums through our group extended benefit plan. |
(13) | Of the total amount for 2020, (i) $20,310 represents contributions to our 401(k) plan and (ii) $38 represents life insurance premiums through our group extended benefit plan. |
(14) | The total amount for 2019 represents life insurance premiums through our group extended benefit plan. |
(15) | Mr. Priour was promoted to Chief Commercial Officer in January 2021. |
(16) | Of the total amount for 2021, (i) $17,400 represents contributions to our 401(k) plan and (ii) $38 represents life insurance premiums through our group extended benefit plan. |
(17) | On April 15, 2021, Dr. Hausman provided notice of her resignation as Chief Medical Officer. She continued to serve in an executive advisory role until November 15, 2021. |
(18) | Of the total amount for 2021, (i) $11,204 represents contributions to our 401(k) plan and (ii) $16 represents life insurance premiums through our group extended benefit plan. |
(19) | Of the total amount for 2020, (i) $20,150 represents contributions to our 401(k) plan and (ii) $38 represents life insurance premiums through our group extended benefit plan. |
(20) | Of the total amount for 2019, (i) $20,957 represents contributions to our 401(k) plan and (ii) $384 represents life insurance premiums through our group extended benefit plan. |
Name | Grant Date | Date of Action | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | All Other Stock Awards: Number of Shares of Stock or Units (#) (2) | All Other Option Awards: Number of Securities Underlying Options (#) (3) | Closing Price on Date of Grant ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($) (4) | |||||||||||||||||||||||||||||
Threshold ($) | Target ($) | Maximum ($) | ||||||||||||||||||||||||||||||||||
Ali Tehrani | 3/10/2021 | 3/10/2021 | — | — | — | — | 150,000 | 34.82 | 3,625,121 | |||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 25,000 | — | — | 870,500 | ||||||||||||||||||||||||||||
2/2/2021 | (5) | 2/2/2021 | (5) | — | 326,200 | 407,750 | — | — | — | — | ||||||||||||||||||||||||||
Neil Klompas | 3/10/2021 | 3/10/2021 | — | — | — | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 8,125 | — | — | 282,913 | ||||||||||||||||||||||||||||
1/29/2021 | (6) | 1/29/2021 | (6) | — | 174,849 | 218,562 | — | — | — | — | ||||||||||||||||||||||||||
Neil Josephson | 3/10/2021 | 3/10/2021 | — | — | — | — | 30,000 | 34.82 | 725,024 | |||||||||||||||||||||||||||
5/6/2021 | 5/6/2021 | — | — | — | — | 15,000 | 29.49 | 299,271 | ||||||||||||||||||||||||||||
11/10/2021 | 11/10/2021 | — | — | — | — | 105,943 | 21.18 | 1,501,228 | ||||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 5,000 | — | — | 174,100 | ||||||||||||||||||||||||||||
11/10/2021 | 11/10/2021 | — | — | — | 17,657 | — | — | 373,975 | ||||||||||||||||||||||||||||
1/29/2021 | (7) | 1/29/2021 | (7) | — | 158,620 | 198,275 | — | — | — | — | ||||||||||||||||||||||||||
Anthony Polverino | 3/10/2021 | 3/10/2021 | — | — | — | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 8,125 | — | — | 282,913 | ||||||||||||||||||||||||||||
1/29/2021 | (6) | 1/29/2021 | (6) | — | 176,320 | 220,400 | — | — | — | — | ||||||||||||||||||||||||||
James Priour | 3/10/2021 | 3/10/2021 | — | — | — | — | 37,500 | 34.82 | 906,280 | |||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 6,250 | — | — | 217,625 | ||||||||||||||||||||||||||||
1/29/2021 | (6) | 1/29/2021 | (6) | — | 160,000 | 200,000 | — | — | — | — | ||||||||||||||||||||||||||
Diana Hausman | 3/10/2021 | 3/10/2021 | — | — | — | — | 48,750 | 34.82 | 1,178,164 | |||||||||||||||||||||||||||
3/10/2021 | 3/10/2021 | — | — | — | 8,125 | — | — | 282,913 | ||||||||||||||||||||||||||||
1/29/2021 | (6) | 1/29/2021 | (6) | — | 185,378 | 231,723 | — | — | — | — |
(1) | Non-equity incentive plan awards consist of cash incentive bonuses as discussed above under “Executive Compensation – Components of Compensation Package – Cash Bonus.” The amounts reflect the U.S. dollar value of target cash bonuses for performance in 2021. As discussed above under “Executive Compensation – Components of Compensation Package – Cash Bonus,” no cash bonuses with respect to 2021 performance were paid. |
(2) | Restricted stock units vest in three equal annual installments on each of the first, second, and third anniversaries of the date of grant. |
(3) | Options vest and become exercisable with respect to (i) 25% of the underlying shares one year after the grant date and (ii) the remainder of the underlying shares in 36 equal monthly installments following the first anniversary of the date of grant. |
(4) | The amounts set forth in this column reflect the grant date fair value for restricted stock unit awards and stock option awards computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. See Note 2 to the “Notes to Consolidated Financial Statements – Summary of Significant Accounting Policies – Stock-Based Compensation” and Note 10(e) “Notes to Consolidated Financial Statements – Shareholders’ Equity – Stock-Based Compensation” included in our Annual Report on Form 10-K for our year ended December 31, 2021. |
(5) | On February 2, 2021, the Board of Directors approved a 2021 target cash incentive bonus for Dr. Tehrani of 55% of his 2021 base salary. |
(6) | On February 3, 2021, the compensation committee approved a 2021 target cash incentive bonus for each of Mr. Klompas, Dr. Polverino, Mr. Priour and Dr. Hausman of 40% of each of their respective 2021 base salaries. |
(7) | On February 3, 2021, the compensation committee approved a 2021 target cash incentive bonus for Dr. Josephson of 35% of his 2021 base salary. Dr. Josephson was promoted to Chief Medical Officer in November 2021. In connection with this promotion, his base salary was increased to $480,000 and his target cash incentive bonus was increased to 40% of his base salary. The figures in the table with respect to his target and maximum target cash incentive bonus are based on his original (pre-promotion) 2021 base salary and target cash incentive bonus percentage. |
Option Awards | Stock Awards | |||||||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable (1) | Number of Securities Underlying Unexercised Options (#) Unexercisable (1) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) (2) | Market Value of Shares or Units of Stock That Have Not Vested ($) (2) | |||||||||||||||||||||
Ali Tehrani | 1/1/2013 | 20,950 | — | 5.79 | (3) | 1/1/2023 | — | — | ||||||||||||||||||||
1/1/2014 | 20,950 | — | 9.26 | (3) | 1/1/2024 | — | — | |||||||||||||||||||||
1/1/2015 | 23,464 | — | 11.52 | (3) | 1/1/2025 | — | — | |||||||||||||||||||||
1/29/2016 | 293,300 | — | 9.66 | (3) | 1/29/2026 | — | — | |||||||||||||||||||||
2/3/2017 | 41,900 | — | 18.03 | (3) | 2/3/2027 | — | — | |||||||||||||||||||||
6/12/17 | 250,000 | — | 9.82 | 6/12/2027 | — | — | ||||||||||||||||||||||
3/19/2018 | 239,583 | 10,417 | 11.84 | 3/18/2028 | — | — | ||||||||||||||||||||||
1/8/2019 | 176,250 | 58,750 | 15.53 | 1/7/2029 | — | — | ||||||||||||||||||||||
3/10/2020 | 63,594 | 75,156 | 35.20 | 3/9/2030 | — | — | ||||||||||||||||||||||
3/10/2021 | — | 150,000 | 34.82 | 3/9/2031 | — | — | ||||||||||||||||||||||
3/10/2020 | — | — | — | — | 15,417 | 542,678 | ||||||||||||||||||||||
3/10/2021 | — | — | — | — | 25,000 | 870,500 | ||||||||||||||||||||||
Neil Klompas | 1/1/2013 | 4,330 | — | 5.79 | (3) | 1/1/2023 | — | — | ||||||||||||||||||||
1/1/2014 | 20,950 | — | 9.26 | (3) | 1/1/2024 | — | — | |||||||||||||||||||||
1/1/2015 | 23,464 | — | 11.52 | (3) | 1/1/2025 | — | — | |||||||||||||||||||||
1/29/2016 | 125,700 | — | 9.66 | (3) | 1/29/2026 | — | — | |||||||||||||||||||||
2/3/2017 | 35,615 | 18.03 | (3) | 2/3/2027 | — | — | ||||||||||||||||||||||
6/12/2017 | 85,000 | 9.82 | 6/12/2027 | — | — | |||||||||||||||||||||||
3/19/2018 | 71,875 | 3,125 | 11.84 | 3/18/2028 | — | — | ||||||||||||||||||||||
1/8/2019 | 67,500 | 22,500 | 15.53 | 1/7/2029 | — | — | ||||||||||||||||||||||
3/27/2019 | 10,625 | 4,375 | 15.23 | 3/26/2029 | — | — | ||||||||||||||||||||||
3/10/2020 | 20,625 | 24,375 | 35.20 | 3/9/2030 | — | — | ||||||||||||||||||||||
3/10/2021 | — | 48,750 | 34.82 | 3/9/2031 | — | — | ||||||||||||||||||||||
3/10/2020 | — | — | — | — | 5,000 | 176,000 | ||||||||||||||||||||||
3/10/2021 | — | — | — | — | 8,125 | 282,913 | ||||||||||||||||||||||
Neil Josephson | 5/6/2019 | 53,333 | 26,667 | 19.11 | 5/5/2029 | — | — | |||||||||||||||||||||
3/10/2020 | 6,016 | 7,109 | 35.20 | 3/9/2030 | — | — | ||||||||||||||||||||||
3/10/2021 | — | 30,000 | 34.82 | 3/9/2031 | — | — | ||||||||||||||||||||||
5/6/2021 | — | 15,000 | 29.49 | 5/5/2031 | — | — | ||||||||||||||||||||||
11/10/2021 | (4) | — | 105,943 | 21.18 | 11/9/2031 | — | — | |||||||||||||||||||||
3/10/2020 | — | — | — | — | 1,459 | 51,357 | ||||||||||||||||||||||
3/10/2021 | — | — | — | — | 5,000 | 174,100 | ||||||||||||||||||||||
11/10/2021 | (4) | — | — | — | — | 17,657 | 373,975 | |||||||||||||||||||||
Anthony Polverino | 12/12/2018 | 52,392 | 25,208 | 15.00 | 12/11/2028 | — | — | |||||||||||||||||||||
1/8/2019 | 56,250 | 18,750 | 15.53 | 1/7/2029 | — | — | ||||||||||||||||||||||
3/10/2020 | 20,625 | 24,375 | 35.20 | 3/9/2030 | — | — | ||||||||||||||||||||||
3/10/2021 | — | 48,750 | 34.82 | 3/9/2031 | — | — | ||||||||||||||||||||||
3/10/2020 | — | — | — | — | 5,000 | 176,000 | ||||||||||||||||||||||
3/10/2021 | — | — | — | — | 8,125 | 282,913 | ||||||||||||||||||||||
James Priour | 4/13/2020 | 17,850 | 22,950 | 37.65 | 4/12/2030 | — | — | |||||||||||||||||||||
3/10/2021 | — | 37,500 | 34.82 | 3/9/2031 | — | — | ||||||||||||||||||||||
4/13/2020 | — | — | — | — | 4,534 | 170,705 | ||||||||||||||||||||||
3/10/2021 | — | — | — | — | 6,250 | 217,625 | ||||||||||||||||||||||
Diana Hausman | 3/10/2020 | 18,750 | — | 35.20 | 3/9/2030 | — | — |
(1) | Options vest and become exercisable with respect to (i) 25% of the underlying shares one year after the grant date and (ii) the remainder of the underlying shares in 36 equal monthly installments following the first anniversary of the date of grant. |
(2) | Restricted stock units vest in three equal annual installments on each of the first, second, and third anniversaries of the date of grant. |
(3) | These options were granted with exercise prices denominated in Canadian dollars. The U.S. dollar per Canadian dollar exchange rate used to convert option exercise price to U.S. dollars was 0.7978, which was the average annual Bank of Canada exchange rate for 2021. |
(4) | Pursuant to the terms of Dr. Josephson’s promotion letter in connection with his promotion to Chief Medical Officer in November 2021, if prior to the first anniversary of the grant date the Company (A) removes Dr. Josephson from the role of Chief Medical Officer or (B) terminates Dr. Josephson’s employment without cause (the effectiveness of such removal or termination, the “Acceleration Date”), the date upon which 25% of such stock options become exercisable and 25% of such RSUs become vested shall be accelerated to such Acceleration Date. |
Options | Restricted Stock Units | |||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Vested (#) | Value Realized on Vesting ($) | ||||||||||||
Ali Tehrani | 57,660 | 1,830,223 | 7,708 | 269,421 | ||||||||||||
Neil Klompas | Nil | Nil | 2,500 | 87,384 | ||||||||||||
Neil Josephson | Nil | Nil | 729 | 25,481 | ||||||||||||
Anthony Polverino | 4,900 | 83,202 | 2,500 | 87,384 | ||||||||||||
James Priour | Nil | Nil | 2,266 | 63,288 | ||||||||||||
Diana Hausman | 193,812 | 3,883,985 | 2,500 | 87,384 |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | Change 2019 – 2018 | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Revenue from research and development collaborations | $ | 29.5 | $ | 53.0 | $ | 51.8 | $ | (23.5 | ) | (44 | %) |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | Change 2019 – 2018 | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Total research and development expense | $ | 115.9 | $ | 56.9 | $ | 41.1 | $ | 59.0 | 104 | % |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | Change 2019 – 2018 | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
General and administrative expense | $ | 64.2 | $ | 29.5 | $ | 18.6 | $ | 34.7 | 118 | % |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | Change 2019 – 2018 | |||||||||||||||||
(dollars in millions) | ||||||||||||||||||||
Other income (expense), net | $ | 5.3 | $ | (1.0 | ) | $ | (0.5 | ) | $ | 6.3 | 630 | % |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(dollars in millions) | ||||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | (81.8 | ) | $ | 24.2 | $ | 0.2 | |||||
Investing activities | (25.6 | ) | (109.0 | ) | (30.9 | ) | ||||||
Financing activities | 193.7 | 91.4 | 50.0 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (0.0 | ) | (0.3 | ) | 0.2 | |||||||
Net increase in cash and cash equivalents | $ | 86.3 | $ | 6.3 | $ | 19.5 | ||||||
Payments due by period | ||||||||||||||||||||||||
Less Than 1 Year | 1 to 2 Years | 2 to 3 Years | 3 to 4 Years | Thereafter | Total | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Capital lease obligations | $ | 31 | $ | 16 | $ | 6 | $ | 3 | $ | 1 | $ | 57 | ||||||||||||
Operating lease obligations | 1,438 | 2,076 | 1,007 | 991 | 1,019 | 6,531 | ||||||||||||||||||
Total contractual obligations | $ | 1,469 | $ | 2,092 | $ | 1,013 | $ | 994 | $ | 1,020 | $ | 6,588 | ||||||||||||
Name and Principal Position | Event | Severance ($) | Options ($) (1) (2) | Restricted Stock Units ($) (3) | Other Payments ($) (1) (4) | Total ($) | ||||||||||||||||
Ali Tehrani, Former President & CEO | Termination other than for cause | 889,638 | 5,418,454 | — | 5,377 | 6,313,469 | ||||||||||||||||
Termination following a change of control event (double trigger) | 1,186,184 | 5,516,376 | 662,435 | 7,169 | 7,372,164 | |||||||||||||||||
Neil Klompas, Chief Operating Officer (former CFO) | Termination other than for cause | 655,686 | 2,137,014 | — | 5,377 | 2,798,077 | ||||||||||||||||
Termination following a change of control event (double trigger) | 655,686 | 2,175,658 | 215,119 | 5,377 | 3,051,840 | |||||||||||||||||
Neil Josephson, Chief Medical Officer | Termination other than for cause | 480,000 | — | — | 33,240 | 513,240 | ||||||||||||||||
Termination following a change of control event (double trigger) | 720,000 | — | 395,261 | 49,860 | 1,165,121 | |||||||||||||||||
Anthony Polverino, Former Executive VP, Early Development & Chief Scientific Officer | Termination other than for cause | 440,800 | 121,200 | — | 27,951 | 589,951 | ||||||||||||||||
Termination following a change of control event (double trigger) | 661,200 | 172,364 | 215,119 | 41,927 | 1,090,610 | |||||||||||||||||
James Priour, Former Chief Commercial Officer | Termination other than for cause | 400,000 | — | — | 33,240 | 433,240 | ||||||||||||||||
Termination following a change of control event (double trigger) | 600,000 | — | 176,750 | 49,860 | 826,610 | |||||||||||||||||
Diana Hausman, Former Chief Medical Officer | Termination other than for cause | 540,687 | — | — | — | 540,687 | ||||||||||||||||
Termination following a change of control event (double trigger) | 695,169 | — | — | — | 695,169 |
(2) | The value of accelerated vesting of options is calculated based on the closing price on the NYSE of $16.39 per share as of December 31, 2021. |
(3) | The value of accelerated vesting of restricted stock units is calculated based on the closing price on the NYSE of $16.39 per share as of December 31, 2021. |
(4) | For Canadian named executive officers (Dr. Tehrani and Mr. Klompas) amounts shown in the “Other Payments” column relate to contributions to our extended medical benefits premiums. For U.S. named executive officers (Dr. Hausman, Dr. Polverino, Dr. Josephson and Mr. Priour), these amounts relate to health benefits plan premiums. For our Canadian named executive officers, these amounts are denominated in U.S. dollars but paid in Canadian dollars. |
Name | Fees Earned or Paid in Cash ($) | Option Awards ($) (1) (2) | Total ($) | |||||||||
Troy M. Cox | 52,316 | 172,408 | 224,724 | |||||||||
Kenneth Hillan | 56,286 | 172,408 | 228,694 | |||||||||
Susan Mahony | 53,580 | 172,408 | 225,988 | |||||||||
Kelvin Neu (3) | 47,166 | 172,408 | 219,574 | |||||||||
Hollings C. Renton | 51,727 | 172,408 | 224,135 | |||||||||
Natalie Sacks | 59,749 | 172,408 | 232,157 | |||||||||
Lota Zoth | 90,612 | 172,408 | 263,020 |
(1) | ||||
(2) | ||||
(3) | ||||
Amount ($) | ||||
Board of Directors: | ||||
Member | 40,000 | |||
Chair or Lead Independent Director | 70,000 | |||
Audit Committee: | ||||
Member | 7,500 | |||
Chair | 15,000 | |||
Compensation Committee: | ||||
Member | 5,000 | |||
Chair | 10,000 | |||
Nominating and Corporate Governance Committee: | ||||
Member | 3,750 | |||
Chair | 7,500 | |||
Research and Development Committee: | ||||
Member | 6,000 | |||
Chair | 15,000 |
December 31, | ||||||||
2019 | 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 128,451 | $ | 42,205 | ||||
Short-term investments (note 5 ) | 170,453 | 157,959 | ||||||
Accounts receivable | 2,185 | 358 | ||||||
Prepaid expenses and other current assets | 10,741 | 3,847 | ||||||
Total current assets | 311,830 | 204,369 | ||||||
Deferred financing fees | 650 | 265 | ||||||
Long-term prepaid assets | 2,306 | 1,135 | ||||||
Deferred tax asset (note 15) | 1,218 | 198 | ||||||
Property and equipment, net (note 7 ) | 11,100 | 6,484 | ||||||
Operating lease right-of-use assets (note 16 ) | 5,400 | — | ||||||
Intangible assets, net (note 8 ) | 6,057 | 1,614 | ||||||
Acquired in-process research and development (note 6 ) | 17,628 | 18,396 | ||||||
Goodwill (note 6) | 12,016 | 12,016 | ||||||
Total assets | $ | 368,205 | $ | 244,477 | ||||
Liabilities and shareholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities (note 9 ) | $ | 35,691 | $ | 13,403 | ||||
Fair value of liability classified options (note 17 ) | 45,569 | 12,603 | ||||||
Current portion of operating lease liability (note 1 6 ) | 1,282 | — | ||||||
Current portion of deferred revenue (note 1 3 ) | — | 3,530 | ||||||
Other current liabilities | 10 | 450 | ||||||
Total current liabilities | 82,552 | 29,986 | ||||||
Long-term portion of operating lease liability (note 1 6 ) | 5,599 | — | ||||||
Long-term portion of deferred revenue (note 1 3 ) | 32,941 | 32,941 | ||||||
Other long-term liabilities ( note 9 ) | 1,024 | 946 | ||||||
Deferred tax liability (note 15) | 408 | 114 | ||||||
Total liabilities | 122,524 | 63,987 | ||||||
Shareholders’ equity: | ||||||||
Common shares, 0 par value; unlimited authorized shares at December 31, 2019 and 2018;39,564,529 and31,977,668 shares issued and outstanding at December 31, 2019 and 2018, respectively (note 11b ) | 450,210 | 320,074 | ||||||
Additional paid-in capital | 92,839 | 12,347 | ||||||
Accumulated other comprehensive loss | (6,659 | ) | (6,659 | ) | ||||
Accumulated deficit | (290,709 | ) | (145,272 | ) | ||||
Total shareholders’ equity | 245,681 | 180,490 | ||||||
Total liabilities and shareholders’ equity | $ | 368,205 | �� | $ | 244,477 | |||
Research collaboration and licensing agreements (note 1 3 ) | ||||||||
Commitments and contingencies (note 1 8 | ||||||||
Subsequent event (note 1 9 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Revenue: | ||||||||||||
Research and development collaborations (note 1 3 ) | $ | 29,544 | $ | 53,019 | $ | 51,762 | ||||||
Operating expenses: | ||||||||||||
Research and development , net of government grants and c redits | 115,900 | 56,926 | 41,144 | |||||||||
General and administrative | 64,177 | 29,457 | 18,550 | |||||||||
Impairment on acquired IPR&D (note 6) | 768 | — | 1,536 | |||||||||
Total operating expenses | 180,845 | 86,383 | 61,230 | |||||||||
Loss from operations | (151,301 | ) | (33,364 | ) | (9,468 | ) | ||||||
Other income (expense): | ||||||||||||
Interest and other income | 6,022 | 2,638 | 743 | |||||||||
Other expense, net (note 14) | (740 | ) | (3,659 | ) | (1,237 | ) | ||||||
Total other income (expense), net | 5,282 | (1,021 | ) | (494 | ) | |||||||
Loss before income taxes | (146,019 | ) | (34,385 | ) | (9,962 | ) | ||||||
Income tax recovery (expense), net (note 15) | 582 | (2,171 | ) | (444 | ) | |||||||
Net loss and comprehensive loss | $ | (145,437 | ) | $ | (36,556 | ) | $ | (10,406 | ) | |||
Net loss per common share (note 4): | ||||||||||||
Basic | $ | (3.83 | ) | $ | (1.26 | ) | $ | (0.51 | ) | |||
Diluted | $ | (3.83 | ) | $ | (1.26 | ) | $ | (0.64 | ) | |||
Weighted-average common shares outstanding (note 4 ): | ||||||||||||
Basic | 38,022,014 | 29,089,896 | 21,249,414 | |||||||||
Diluted | 38,022,014 | 29,089,896 | 21,321,209 |
Rede emable Convertible C lass A Preferred shares | Com mon s hares | Accumulated | Accumulated o thercomprehensive | A dditionalpaid-i n | T otal shareholders' | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | deficit | loss | capital | equity | |||||||||||||||||||||||||||||
Balance at December 31, 2016 | 5,260,404 | $ | 58,860 | 13,126,248 | $ | 106,595 | $ | (97,790 | ) | $ | (6,659 | ) | $ | 6,856 | $ | 9,002 | ||||||||||||||||||||
Issuance of common shares on exercise of options | — | — | 207,777 | 1,777 | — | — | (512 | ) | 1,265 | |||||||||||||||||||||||||||
Issuance of common shares on exercise of warrants | — | — | 117,320 | 1,563 | — | — | — | 1,563 | ||||||||||||||||||||||||||||
Fair value adjustments upon reclassification of options to liabilities | — | — | — | — | — | — | (2,879 | ) | (2,879 | ) | ||||||||||||||||||||||||||
Stock -based compensation | — | — | — | — | — | — | 4,827 | 4,827 | ||||||||||||||||||||||||||||
Beneficial conversion feature recognized on the conversion of redeemable convertible class A preferred shares (note 11 )c | — | — | — | — | (520 | ) | — | 520 | — | |||||||||||||||||||||||||||
Conversion of redeemable convertible class A preferred shares to common shares in connection with initial public offering (note 11c ) | (5,260,404 | ) | (58,860 | ) | 7,098,194 | 58,860 | — | — | — | 58,860 | ||||||||||||||||||||||||||
Issuance of common shares in connection with initial public offering, net of offering costs (note 11 a) | — | — | 4,894,467 | 54,196 | — | — | — | 54,196 | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,406 | ) | — | — | (10,406 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2017 | — | $ | — | 25,444,006 | $ | 222,991 | $ | (108,716 | ) | $ | (6,659 | ) | $ | 8,812 | $ | 116,428 | ||||||||||||||||||||
Issuance of common shares on exercise stock options(note 1 1 )e | — | — | 94,812 | 1,166 | — | — | (341 | ) | 825 | |||||||||||||||||||||||||||
Issuance of common shares through employee stock purchase plan (note 11 )f | — | — | 22,489 | 252 | — | — | — | 252 | ||||||||||||||||||||||||||||
Stock -based compensation | — | — | — | — | — | — | 3,876 | 3,876 | ||||||||||||||||||||||||||||
Issuance of common shares on exercise of warrants (note 10 ) | — | — | 206,361 | 4,913 | — | — | — | 4,913 | ||||||||||||||||||||||||||||
Issuance of common shares in connection with public offering, net of offering costs (note 11a ) | — | — | 6,210,000 | 90,752 | — | — | — | 90,752 | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | (36,556 | ) | — | — | (36,556 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2018 | — | $ | — | 31,977,668 | $ | 320,074 | $ | (145,272 | ) | $ | (6,659 | ) | $ | 12,347 | $ | 180,490 | ||||||||||||||||||||
Issuance of common shares on exercise of options (note 1 1 )e | — | — | 529,661 | 11,432 | — | — | (2,129 | ) | 9,303 | |||||||||||||||||||||||||||
Issuance of common shares through employee share purchase plan (note 1 1 )f | — | — | 43,308 | 763 | — | — | — | 763 | ||||||||||||||||||||||||||||
Fair value adjustments upon reclassification of options to liabilities | — | — | — | — | — | — | (119 | ) | (119 | ) | ||||||||||||||||||||||||||
Stock -based compensation | — | — | — | — | — | — | 12,676 | 12,676 | ||||||||||||||||||||||||||||
Issuance of common shares and pre-funded warrants in connection with public offering, net of offering costs (notes 11a and 11d) | — | — | 7,013,892 | 117,941 | — | — | 70,064 | 188,005 | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | (145,437 | ) | — | — | (145,437 | ) | ||||||||||||||||||||||||||
Balance at December 31, 2019 | — | $ | — | 39,564,529 | $ | 450,210 | $ | (290,709 | ) | $ | (6,659 | ) | $ | 92,839 | $ | 245,681 | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (145,437 | ) | $ | (36,556 | ) | $ | (10,406 | ) | |||
Items not involving cash: | ||||||||||||
Depreciation of property and equipment | 2,312 | 1,880 | 1,681 | |||||||||
Amortization of intangible assets | 3,113 | 1,750 | 1,058 | |||||||||
Impairment on acquired IPR&D | 768 | — | 1,536 | |||||||||
Stock-based compensation (note 11 e ) | 48,996 | 13,441 | 3,429 | |||||||||
Amortization of operating lease right-of-use assets | 1,906 | — | — | |||||||||
Deferred income tax (recovery) expense | (726 | ) | (17 | ) | 15 | |||||||
Change in fair value of contingent consideration (note 18 ) | 271 | 237 | 470 | |||||||||
Change in fair value of warrant liabilities (note 10) | — | 3,565 | (2,450 | ) | ||||||||
Accretion on long-term debt | — | — | 248 | |||||||||
Loss on debt extinguishment | — | — | 3,114 | |||||||||
Unrealized foreign exchange loss/(gain) | 504 | (48 | ) | (254 | ) | |||||||
Changes in non-cash operating working capital: | ||||||||||||
Accounts receivable | (1,828 | ) | (119 | ) | 2,409 | |||||||
Prepaid expenses and other current assets | (8,680 | ) | (251 | ) | (202 | ) | ||||||
Accounts payable and accrued liabilities | 21,572 | 3,684 | (358 | ) | ||||||||
Operating lease liabilities | (795 | ) | — | — | ||||||||
Deferred revenue | (3,530 | ) | 36,471 | — | ||||||||
Income taxes payable | (299 | ) | 140 | (71 | ) | |||||||
Net cash (used in) provided by operating activities | $ | (81,853 | ) | $ | 24,177 | $ | 219 | |||||
Cash flows from financing activities: | ||||||||||||
Proceeds from initial public offering, net of issuance costs (note 11a) | — | — | 55,791 | |||||||||
Proceeds from subsequent public offerings, net of issuance costs (note 11a ) | 188,231 | 90,752 | — | |||||||||
Issuance of common shares on exercise of options (note 1 1 )e | 5,498 | 682 | 965 | |||||||||
Issuance of common shares on exercise of warrants (note 10 ) | — | — | 1,018 | |||||||||
Issuance of common shares through employee stock purchase plan (note 11 )f | 598 | 233 | — | |||||||||
Repayment of debt (note 10 ) | — | — | (7,814 | ) | ||||||||
Deferred financing fees | (650 | ) | (225 | ) | — | |||||||
Finance lease payments | (16 | ) | (11 | ) | (9 | ) | ||||||
Net cash provided by financing activities | $ | 193,661 | $ | 91,431 | $ | 49,951 | ||||||
Cash flows from investing activities: | ||||||||||||
Purchase of s hort-term investments | (11,714 | ) | (105,626 | ) | (27,767 | ) | ||||||
Acquisition of property and equipment | (6,322 | ) | (803 | ) | (2,015 | ) | ||||||
Acquisition of intangible assets | (7,556 | ) | (2,617 | ) | (1,106 | ) | ||||||
Net cash used in investing activities | $ | (25,592 | ) | $ | (109,046 | ) | $ | (30,888 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 30 | (303 | ) | 227 | ||||||||
Net change in cash and cash equivalents | 86,246 | 6,259 | 19,509 | |||||||||
Cash and cash equivalents, beginning of year | 42,205 | 35,946 | 16,437 | |||||||||
Cash and cash equivalents, end of year | $ | 128,451 | $ | 42,205 | $ | 35,946 | ||||||
Supplemental disclosure of non-cash investing and finance items: | ||||||||||||
Leased assets obtained in exchange for operating lease liabilities | $ | 7,026 | $ | — | $ | — | ||||||
Acquisition of property and equipment in accounts payable and accrued liabilities | 607 | 382 | 123 | |||||||||
Cashless exercise of warrants (note 10 ) | — | 4,913 | — |
December 31, 2018 | Adjustments Due to the Adoption of Topic 842 | January 1, 2019 | ||||||||||
Operating lease right-of-use assets(1) | $ | — | $ | 3,222 | $ | 3,222 | ||||||
Total lease inducements (2) | 333 | (333 | ) | — | ||||||||
Total operating lease liabilities (3) | — | 3,561 | 3,561 |
As reported | Effect of Adoption of Topic 842 Higher / (Lower) | Balances Without the Adoption of Topic 842 | ||||||||||
Operating expenses for the year ended December 31, 2019 | $ | 180,845 | $ | 311 | $ | 180,534 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Numerator | ||||||||||||
Net loss attributable to common shareholders: | $ | (145,437 | ) | $ | (36,556 | ) | $ | (10,406 | ) | |||
Deemed dividend due to beneficial conversion feature | — | — | (520 | ) | ||||||||
Basic | $ | (145,437 | ) | $ | (36,556 | ) | $ | (10,926 | ) | |||
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant | — | — | (2,757 | ) | ||||||||
Diluted | $ | (145,437 | ) | $ | (36,556 | ) | $ | (13,683 | ) | |||
Denominator: | ||||||||||||
Weighted-average common shares outstanding: | ||||||||||||
Basic (*) | 38,022,014 | 29,089,896 | 21,249,414 | |||||||||
Adjustment for dilutive effect of liability classified stock options and warrants | — | — | 71,795 | |||||||||
Diluted | 38,022,014 | 29,089,896 | 21,321,209 | |||||||||
Net loss per common share – basic | $ | (3.83 | ) | $ | (1.26 | ) | $ | (0.51 | ) | |||
Net loss per common share – diluted | $ | (3.83 | ) | $ | (1.26 | ) | $ | (0.64 | ) |
Acquired IPR&D | Accumulated Impairment | Net | ||||||||||
Balance at December 31, 2016 | $ | 20,700 | $ | (768 | ) | $ | 19,932 | |||||
Change during the period | — | (1,536 | ) | (1,536 | ) | |||||||
Balance at December 31, 2017 | $ | 20,700 | $ | (2,304 | ) | $ | 18,396 | |||||
Change during the period | — | — | — | |||||||||
Balance at December 31, 2018 | $ | 20,700 | $ | (2,304 | ) | $ | 18,396 | |||||
Change during the period | — | (768 | ) | (768 | ) | |||||||
Balance at December 31, 2019 | $ | 20,700 | $ | (3,072 | ) | $ | 17,628 | |||||
December 31, | ||||||||
2019 | 2018 | |||||||
Computer hardware | $ | 2,438 | $ | 1,439 | ||||
Furniture and fixtures | 1,248 | 747 | ||||||
Office equipment | 729 | 535 | ||||||
Laboratory equipment | 6,628 | 5,270 | ||||||
Leasehold improvements | 6,374 | 3,377 | ||||||
Construction in progress | 915 | 221 | ||||||
Property and equipment | $ | 18,332 | $ | 11,589 | ||||
Less accumulated depreciation | (7,232 | ) | (5,105 | ) | ||||
Property and equipment, net | $ | 11,100 | $ | 6,484 | ||||
December 31, | ||||||||
2019 | 2018 | |||||||
Computer software and research license | $ | 12,985 | $ | 5,429 | ||||
Less accumulated amortization | (6,928 | ) | (3,815 | ) | ||||
Intangible assets, net | $ | 6,057 | $ | 1,614 | ||||
December 31, | ||||||||
2019 | 2018 | |||||||
Trade payables | $ | 5,349 | $ | 2,599 | ||||
Accrued research expenses | 24,262 | 6,633 | ||||||
Employee compensation and vacation accruals | 5,009 | 2,926 | ||||||
Accrued legal and professional fees | 231 | 556 | ||||||
Other | 840 | 689 | ||||||
Total | $ | 35,691 | $ | 13,403 | ||||
December 31, | ||||||||
2019 | 2018 | |||||||
Liability for contingent consideration (note 18 ) | $ | 978 | $ | 707 | ||||
Lease inducements | — | 197 | ||||||
Finance lease liability (note 1 6 ) | 46 | 42 | ||||||
Total | $ | 1,024 | $ | 946 | ||||
Year ended December 31, 2017 | ||||
Long term debt at January 1, 2017 | $ | 4,810 | ||
Less: unamortized debt issue costs at January 1, 2017 | (393 | ) | ||
Long term debt at January 1, 2017, net of deferred charges | $ | 4,417 | ||
Accretion during the period up to the Repayment Date | 248 | |||
Amortization of debt issue costs during the period up to the Repayment Date | 35 | |||
Carrying value of long term debt on the Repayment Date, net of deferred charges | $ | 4,700 | ||
Repayment, including repayment premium and expenses | (7,814 | ) | ||
Loss on debt extinguishment | $ | (3,114 | ) | |
Number of Options | Weighted- Average Exercise Price (C$) | Weighted- Average Exercise Price ($) | Weighted- Average Contractual Term (years) | Aggregate intrinsic value (C$) | Aggregate intrinsic value ($) | |||||||||||||||||||
Outstanding, December 31, 2017 | 2,263,712 | 14.24 | 11.35 | 7.53 | 1,455 | 1,160 | ||||||||||||||||||
Granted | 326,975 | 16.51 | 12.74 | |||||||||||||||||||||
Expired | (7,908 | ) | 16.22 | 12.52 | ||||||||||||||||||||
Exercised | (94,812 | ) | 8.81 | 6.80 | ||||||||||||||||||||
Forfeited | (41,977 | ) | 18.09 | 13.96 | ||||||||||||||||||||
Outstanding, December 31, 2018 | 2,445,990 | 14.66 | 10.74 | 6.99 | 14,421 | 10,571 | ||||||||||||||||||
Granted | 358,800 | 22.92 | 17.14 | |||||||||||||||||||||
Expired | (1,047 | ) | 4.75 | 3.65 | ||||||||||||||||||||
Exercised | (403,553 | ) | 12.53 | 9.46 | ||||||||||||||||||||
Forfeited | (43,777 | ) | 18.42 | 13.91 | ||||||||||||||||||||
Outstanding, December 31, 2019 | 2,356,413 | 16.21 | 12.46 | 6.70 | 101,404 | 77,807 | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Exercisable | 1,623,284 | 14.49 | 11.12 | 5.89 | 72,648 | 55,743 | ||||||||||||||||||
Vested and expected to vest | 2,317,044 | 16.15 | 12.39 | 6.67 | 99,860 | 76,622 |
Number of Options | Weighted- Average Exercise Price ($) | Weighted- Average Contractual Term (years) | Aggregate intrinsic value ($) | |||||||||||||
Outstanding, December 31, 2017 | 636,595 | 9.70 | 9.46 | 15 | ||||||||||||
Granted | 910,783 | 13.03 | ||||||||||||||
Expired | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (7,600 | ) | 9.82 | |||||||||||||
Outstanding, December 31, 2018 | 1,539,778 | 11.67 | 9.02 | 4,876 | ||||||||||||
Granted | 1,501,750 | 19.89 | ||||||||||||||
Expired | — | — | ||||||||||||||
Exercised | (126,108 | ) | 13.32 | |||||||||||||
Forfeited | (62,074 | ) | 14.91 | |||||||||||||
Outstanding, December 31, 2019 | 2,853,346 | 15.85 | 8.66 | 84,481 | ||||||||||||
December 31, 2019 | ||||||||||||||||
Exercisable | 712,423 | 11.21 | 7.66 | 24,403 | ||||||||||||
Vested and expected to vest | 2,738,378 | 15.79 | 8.60 | 81,255 |
Number of options | Weighted-average date (C$) | Weighted- average date (US$) | ||||||||||
Non-vested, December 31, 2018 | 899,079 | 10.25 | 7.51 | |||||||||
Options granted | 358,800 | 14.89 | 11.42 | |||||||||
Options vested | (482,042 | ) | 28.06 | 21.53 | ||||||||
Options forfeited and cancelled | (42,708 | ) | 16.43 | 12.60 | ||||||||
Non-vested, December 31, 2019 | 733,129 | 16.03 | 12.30 | |||||||||
Number of options | Weighted- average grant date fair value (US$) | |||||||
Non-vested, December 31, 2018 | 1,254,428 | 7.31 | ||||||
Options granted | 1,501,750 | 13.01 | ||||||
Options vested | (553,181 | ) | 7.43 | |||||
Options forfeited and cancelled | (62,074 | ) | 9.63 | |||||
Non-vested, December 31, 2019 | 2,140,923 | 11.21 | ||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Research and development expenses: | ||||||||||||
Stock-based compensation for equity classified instruments | $ | 5,939 | $ | 2,203 | $ | 913 | ||||||
Change in fair value of liability classified equity instruments | 8,358 | 2,032 | 492 | |||||||||
$ | 14,297 | $ | 4,235 | $ | 1,405 | |||||||
General and administrative expenses: | ||||||||||||
Stock-based compensation for equity classified instruments | $ | 6,737 | $ | 3,693 | $ | 1,852 | ||||||
Change in fair value of liability classified equity instruments | 27,470 | 5,362 | 486 | |||||||||
$ | 34,207 | $ | 9,055 | $ | 2,338 | |||||||
Finance expense (income): | ||||||||||||
Stock-based compensation for equity classified instruments | $ | — | $ | 1 | $ | — | ||||||
Change in fair value of liability classified equity instruments | 166 | 150 | (314 | ) | ||||||||
$ | 166 | $ | 151 | $ | (314 | ) |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||
Expected volatility | 73.59 | % | 66.25 | % | 66.25 | % | ||||||
Risk-free interest rate | 1.47 | % | 2.18 | % | 1.44 | % | ||||||
Forfeiture rate | 5.37 | % | 5.37 | % | 4.75 | % | ||||||
Expected average life of options | 6.05 years | 5.91 years | 5.90 years |
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||
Expected volatility | 73.15 | % | 66.78 | % | 65.89 | % | ||||||
Risk-free interest rate | 2.23 | % | 2.69 | % | 1.84 | % | ||||||
Forfeiture rate | 5.37 | % | 5.37 | % | 4.75 | % | ||||||
Expected average life of options | 6.03 years | 5.88 years | 5.89 years |
December 31, 2019 | December 31, 2018 | ||||||||
Dividend yield | 0 | % | 0 | % | |||||
Expected volatility | 76.09 | % | 72.27 | % | |||||
Risk-free interest rate | 1.68 | % | 1.94 | % | |||||
Forfeiture rate | 5.37 | % | 5.37 | % | |||||
Expected average option term | 3.38 years | 3.59 years | |||||||
Number of liability classified share options outstanding | 1,249,365 | 1,437,163 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
SR&ED credits (expense), net | $ | 110 | $ | (5 | ) | $ | 857 | |||||
IRAP credits | — | — | 218 | |||||||||
Total | $ | 110 | $ | (5 | ) | $ | 1,075 | |||||
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Janssen: | ||||||||||||
Recognition of upfront fee | $ | — | $ | — | $ | 50,000 | ||||||
Merck: | ||||||||||||
Milestone revenue | 2,000 | — | — | |||||||||
Lilly: | ||||||||||||
Milestone revenue | 8,000 | 2,000 | — | |||||||||
BMS: | ||||||||||||
Option exercise fee | 7,500 | 4,000 | — | |||||||||
Daiichi Sankyo: | ||||||||||||
Technology access fee | — | 18,000 | — | |||||||||
Milestone revenue | — | — | 1,000 | |||||||||
Commercial license option fee | 3,500 | |||||||||||
LEO: | ||||||||||||
Recognition of upfront fee | — | 5,000 | $ | — | ||||||||
BeiGene: | ||||||||||||
Recognition of upfront fee | 3,530 | 23,530 | $ | — | ||||||||
Iconic: | ||||||||||||
Milestone revenue | 1,000 | — | $ | — | ||||||||
Research support payments and other payments | 4,014 | 489 | 762 | |||||||||
$ | 29,544 | $ | 53,019 | $ | 51,762 | |||||||
Year ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Foreign exchange (loss) gain | $ | (567 | ) | $ | 72 | $ | 97 | |||||
Change in fair value of warrant liabilities (note 10) | — | (3,565 | ) | 2,450 | ||||||||
Loss on debt extinguishment (note 10) | — | — | (3,114 | ) | ||||||||
Accretion expense | — | — | (248 | ) | ||||||||
Other | (173 | ) | (166 | ) | (422 | ) | ||||||
$(740) | $(3,659) | $(1,237) | ||||||||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Current income tax expense | $ | (1,373 | ) | $ | (2,188 | ) | $ | (429 | ) | |||
Deferred income tax recovery (expense) | 1,955 | 17 | (15 | ) | ||||||||
Income tax recovery (expense) | $ | 582 | $ | (2,171 | ) | $ | (444 | ) | ||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Computed taxes at Canadian tax rate | $ | 39,453 | $ | 9,284 | $ | 2,587 | ||||||
Non-deductible expenses | (13,020 | ) | (4,311 | ) | (259 | ) | ||||||
Difference between domestic and foreign tax rate | 104 | 14 | 11 | |||||||||
Effect of change in tax rates | (10 | ) | (2 | ) | 860 | |||||||
Adjustments to prior year | (39 | ) | (543 | ) | 313 | |||||||
Change in valuation allowance | (29,057 | ) | (9,340 | ) | (8,510 | ) | ||||||
Share issuance costs in equity | 3,578 | 1,906 | 2,547 | |||||||||
Change in recognition and measurement of tax positions | (2,391 | ) | (672 | ) | — | |||||||
Changes due to SR&ED | 2,200 | 1,668 | 1,973 | |||||||||
Other | (236 | ) | (175 | ) | 34 | |||||||
Income tax recovery (expen se) | $ | 582 | $ | (2,171 | ) | $ | (444 | ) | ||||
December 31, 2019 | December 31, 2018 | |||||||
Deferred tax assets: | ||||||||
Non-capital losses carried forward | $ | 33,016 | $ | 6,680 | ||||
Deferred revenue | 8,894 | 9,848 | ||||||
Share issue costs | 5,473 | 3,428 | ||||||
Property and equipment | 1,731 | 1,167 | ||||||
Research and development deductions and credits | 21,813 | 20,749 | ||||||
Contingent consideration | 264 | 191 | ||||||
Stock options | 1,242 | 220 | ||||||
Operating lease liability | 1,540 | — | ||||||
Other | 348 | 314 | ||||||
$ | 74,321 | $ | 42,597 | |||||
Deferred tax liabilities: | ||||||||
Property and equipment | (583 | ) | (54 | ) | ||||
IPR&D | (4,760 | ) | (4,967 | ) | ||||
Operating lease right-of-use assets | (1,016 | ) | — | |||||
Other | (408 | ) | (132 | ) | ||||
$ | (6,767 | ) | $ | (5,153 | ) | |||
67,554 | 37,444 | |||||||
Less: valuation allowance | (66,744 | ) | (37,360 | ) | ||||
Net deferred tax assets (liabilities) | $ | 810 | $ | 84 | ||||
Deferred tax asset | $ | 1,218 | $ | 198 | ||||
Deferred tax liability | (408 | ) | (114 | ) | ||||
Net deferred tax assets (liability) | $ | 810 | $ | 84 | ||||
Expiry date | Investment tax credits | Non-capital losses | ||||||
2029 | 1,078 | — | ||||||
2030 | — | — | ||||||
2031 | — | — | ||||||
2032 | — | — | ||||||
2033 | — | — | ||||||
2034 | 230 | — | ||||||
2035 | 1,068 | 3,961 | ||||||
2036 | 878 | 24,578 | ||||||
2037 | 1,587 | 10,625 |
Expiry date | Investment tax credits | Non-capital losses | ||||||
2038 | 1,485 | — | ||||||
2039 | 1,749 | 83,117 | ||||||
$ | 8,075 | $ | 122,281 | |||||
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Balance, beginning of year | $ | 672 | $ | — | $ | — | ||||||
Increases related to prior year tax positions | — | 142 | — | |||||||||
Increases related to current year tax positions | 2,391 | 530 | — | |||||||||
Balance, end of year | $ | 3,063 | $ | 672 | $ | — | ||||||
December 31, 2019 | December 31, 2018 | |||||||
Operating lease liabilities: | ||||||||
Current portion | $ | 1,282 | $ | — | ||||
Long-term portion | 5,599 | — | ||||||
Total operating lease liabilities | 6,881 | $ | — | |||||
Finance lease liabilities: | ||||||||
Current portion included in other current liabilities | 10 | 15 | ||||||
Long-term portion included in other long-term liabilities | 46 | 42 | ||||||
Total finance lease liabilities | 56 | 57 | ||||||
Total lease liabilities | $ | 6,937 | $ | 57 | ||||
Operating leases | ||||
Within 1 year | $ | 1,438 | ||
1 to 2 years | 2,076 | |||
2 to 3 years | 1,007 | |||
3 to 4 years | 991 | |||
4 to 5 years | 1,019 | |||
Thereafter | 781 | |||
Total operating lease payments | 7,312 | |||
Less: | ||||
Imputed interest | (431 | ) | ||
Operating lease liabilities | $ | 6,881 | ||
December 31, 2019 | Level 1 | Level 2 | Level 3 | |||||||||||||
Liabilities | ||||||||||||||||
Liability classified stock options | $ | 45,569 | $ | — | $ | — | $ | 45,569 | ||||||||
Liability for contingent consideration | 978 | — | — | 978 | ||||||||||||
Total | $ | 46,547 | $ | — | $ | — | $ | 46,547 | ||||||||
December 31, 2018 | Level 1 | Level 2 | Level 3 | |||||||||||||
Liabilities | ||||||||||||||||
Liability classified stock options | $ | 12,603 | $ | — | $ | — | $ | 12,603 | ||||||||
Liability for contingent consideration | 707 | — | — | 707 | ||||||||||||
Total | $ | 13,310 | $ | — | $ | — | $ | 13,310 | ||||||||
Liability at the beginning of the period | Increase (decrease) in fair value of liability for contingent consideration | Liability at end of the period | ||||||||||
Year ended December 31, 2019 | $ | 707 | $ | 271 | $ | 978 | ||||||
Year ended December 31, 2018 | $ | 470 | $ | 237 | $ | 707 |
Liability at the beginning of the period | Reclassification to liability from equity | Increase (decrease) in fair value of warrant liabilities | Exercise of warrants | Liability at end of the period | ||||||||||||||||
Year ended December 31, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Year ended December 31, 2018 | $ | 1,348 | $ | — | $ | 3,565 | $ | (4,913 | ) | $ | — |
Liability at beginning of the period | Reclassification to liabilities from equity | Increase (decrease) in fair value of liability classified stock options | Exercise of options | Unrealized foreign currency loss (gain) | Liability at end of the period | |||||||||||||||||||
Year ended December 31, 2019 | $ | 12,603 | $ | 119 | $ | 35,994 | $ | (3,804 | ) | $ | 657 | $ | 45,569 | |||||||||||
Year ended December 31, 2018 | $ | 3,945 | $ | — | $ | 9,451 | $ | (142 | ) | $ | (651 | ) | $ | 12,603 |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted average exercise price of outstanding options, warrants, and rights (2) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holder | ||||||||||||
Equity Compensation Plan | 6,618,717 | (3) | $ | 26.67 | (4) | 952,632 | ||||||
ESPP | — | $ | — | 1,482,477 | ||||||||
Original Plan | 1,078,121 | $ | 12.66 | (5) | — |
(1) | Includes restricted stock units. |
(2) | Does not include restricted stock units, which do not have an exercise price. |
(3) | The original maximum number of common shares reserved for issuance under the Equity Compensation Plan as of June 7, 2018, was 5,686,097. Beginning in 2019 and ending in 2028, this maximum number may be increased on the first day of each calendar year by up to 4.0% of the number of outstanding shares on the last day of the immediately preceding calendar year. |
(4) | Stock options granted under the Equity Compensation Plan are granted with exercise prices in both Canadian dollars and U.S. dollars. As of December 31, 2021, there were 6,327,448 outstanding stock options under the Equity Compensation Plan, consisting of 1,410,534 stock options with a weighted average exercise price of C$34.01 ($27.13 based on the U.S. dollar per Canadian dollar exchange rate of 0.7978, which was the average annual Bank of Canada exchange rate for 2021) and 4,916,914 stock options with a weighted average exercise price of $26.59. |
(5) | Stock options granted under the Original Plan were granted with exercise prices in Canadian dollars. As of December 31, 2021, there were 1,078,121 outstanding stock options under the Original Plan, with a weighted average exercise price of C$15.87 ($12.66 based on the U.S. dollar per Canadian dollar exchange rate of 0.7978, which was the average annual Bank of Canada exchange rate for 2021). |
Original Plan | Equity Compensation Plan | ESPP | ||||||||||
Number of outstanding securities awarded under plan | 1,078,121 | 6,681,717 | 178,734 | (1) | ||||||||
Issued and outstanding securities under plan as a percentage of issued and outstanding shares | 2.3 | % | 14.3 | % | 0.4 | % | ||||||
Number of securities available for grant under plan | — | 952,632 | 1,482,477 | |||||||||
Number of securities available for grant under plan as a percentage of issued and outstanding shares | — | 2.0 | % | 3.2 | % |
(1) | Amount reflects the total number of outstanding securities awarded under the ESPP since the Company’s inception. |
Original Plan | Equity Compensation Plan | |||||||
Year ended December 31, 2021 | 0 | % | 4.9 | % | ||||
Year ended December 31, 2020 | 0 | % | 3.5 | % | ||||
Year ended December 31, 2019 | 0 | % | 4.9 | % |
Name and Address of Beneficial Owner | Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||||
5% and Greater Shareholders: | ||||||||
Baker Bros. Advisors LP | 6,218,706 | (1) | 9.99 | % | ||||
Armistice Capital, LLC | 3,965,197 | (2) | 6.56 | % | ||||
Perceptive Advisors LLC | 3,679,845 | (3) | 6.37 | % | ||||
All Blue Falcons FZE | 3,419,498 | (4) | 5.92 | % | ||||
Directors and Named Executive Officers: | ||||||||
Christopher Astle (5) | 5,342 | (6) | * | |||||
Troy M. Cox | 55,500 | (7) | * | |||||
Kenneth Galbraith | — | — | ||||||
Diana Hausman | 7,377 | (8) | * | |||||
Kenneth Hillan | 59,425 | (9) | * | |||||
Neil Josephson | 92,001 | (10) | * | |||||
Neil Klompas | 513,644 | (11) | * | |||||
Susan Mahony | 48,000 | (12) | * | |||||
Kelvin Neu | 9,000 | (13) | * | |||||
Anthony Polverino | 165,674 | (14) | * | |||||
James Priour | 20,363 | (15) | * | |||||
Hollings C. Renton | 59,425 | (16) | * | |||||
Natalie Sacks | 53,140 | (17) | * | |||||
Ali Tehrani | 1,542,051 | (18) | 2.61 | % | ||||
Lota Zoth | 61,117 | (19) | * | |||||
All Directors and Executive Officers: | ||||||||
All current executive officers and directors as a group (11) persons) (20) | 956,594 | 1.63 | % |
* | Less than one percent |
(1) | Based on a Schedule 13G/A filed February 14, 2022 and company records, consists of 22,000 common shares issuable upon exercise of options exercisable within 60 days after April 15, 2022, 1,708,472 common shares and 4,488,234 shares issuable upon exercise of prefunded warrants held by Baker Bros. Advisors LP, Baker Bros. Advisors (GP) LLC, Felix J. Baker and Julian C. Baker. The address for these entities and individuals is 860 Washington Street, 3 rd Floor, New York, NY 10014. |
(2) | Based on a Schedule 13F filed February 14, 2022 and company records, consists of 1,250,197 common shares as of December 31, 2022 and 2,715,000 shares issuable upon exercise of prefunded warrants held by Armistice Capital, LLC. The address for this entity is 510 Madison Avenue, 7th Floor, New York, New York 10022. |
(3) | Based solely on a Schedule 13G/A filed February 14, 2022, consists of 3,679,845 common shares held by Perceptive Advisors LLC, Joseph Edelman and Perceptive Life Sciences Master Fund, Ltd. as of December 31, 2021. The address for these entities and individual is 51 Astor Place, 10 th Floor, New York, NY 10003. |
(4) | Based solely on a Schedule 13D/A filed April 28, 2022, consists of 3,139,498 common shares directly beneficially owned by All Blue Falcons FZE and 280,000 common shares underlying call options (and including 200,000 shares purchased after April 15, 2022 as set forth in such Schedule 13D). Daniel Edward Llewellen Cookson may be deemed to beneficially own all of these common shares by virtue of his position as a control person of All Blue Falcons FZE. The address for this entity and individual is Office 2301, 23 rd Floor API Trio Tower, Al Bashra 1, Dubai, United Arab Emirates. |
(5) | Dr. Astle is not a named executive officer in this Form 10-K/A, but he is a current executive officer as a result of his appointment as Chief Financial Officer on February 24, 2022. |
(6) | Consists of 670 common shares and 4,672 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(7) | Consists of 7,500 common shares and 48,000 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(8) | Shareholdings are based on information available to the Company as of the date of Dr. Hausman’s resignation in May 2021. Consists of 5,377 shares held personally and 2,000 shares held by Dr. Hausman’s spouse as of May 15, 2021, Dr. Hausman’s last day as an employee of the Company. |
(9) | Consists of 59,425 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(10) | Consists of 9,514 common shares and 82,487 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(11) | Consists of 13,276 shares held personally and 700 shares held by S. Jennifer Heine, and 499,668 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(12) | Consists of 48,000 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(13) | Consists of 9,000 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. Dr. Neu was an employee of Baker Bros. Advisors LP until January 2021. Pursuant to the terms of Dr. Neu’s employment by Baker Brothers Advisors LP, options granted to him in 2020 were, and will continue to be, beneficially owned by Baker Bros. Advisors LP. |
(14) | Shareholdings are based on information available to the Company as of the date of Dr. Polverino’s termination in January 2022. Consists of 36,407 common shares and 129,267 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(15) | Shareholdings are based on information available to the Company as of the date of Mr. Priour’s termination in January 2022. Consists of 2,513 common shares and 17,850 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(16) | Consists of 59,425 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(17) | Consists of 53,140 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(18) | Consists of 260,325 common shares held personally and 55,511 common shares held by Charissa Tehrani, and 1,226,215 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(19) | Consists of 61,117 common shares issuable upon the exercise of options exercisable within 60 days after April 15, 2022. |
(20) | Although Dr. Hausman, Dr. Polverino, Mr. Priour and Dr. Tehrani are considered named executive officers for the purposes of this Form 10-K/A, they are no longer with the Company and are thus not included in the total of shares beneficially owned by the directors and executive officers as a group. |
Item 13. | Certain Relationships and Related Transactions and Director Independence |
Director | Reporting Issuer | |
Troy M. Cox | SomaLogic, Inc. SOPHIA GENETICS SA | |
Kenneth Galbraith | Profound Medical Corp. | |
Kenneth Hillan | Sangamo Therapeutics, Inc. | |
Susan Mahony | Assembly Biosciences, Inc. Horizon Therapeutics Public Limited Company Vifor Pharma Ltd. | |
Hollings C. Renton | AnaptysBio, Inc. | |
Natalie Sacks | Caribou Biosciences, Inc. | |
Lota Zoth | 89 Bio, Inc. Inovio Pharmaceuticals, Inc. Lumos Pharma, Inc. |
Item 14. | Principal Accounting Fees and Services |
2021 ($) (5) | 2020 ($) (6) | |||||||
Audit Fees (1) | 639,300 | 523,800 | ||||||
Audit Related Fees (2) | — | — | ||||||
Tax Fees (3) | 293,800 | 242,600 | ||||||
All Other Fees (4) | — | — | ||||||
Total Fees Paid | 933,100 | 766,400 |
(1) | Fees for audit service on an accrued basis. |
(2) | Fees not included in audit fees that are billed by the auditor for assurance and related services that are reasonably related to the performance of the audit of the financial statements. |
(3) | Fees for professional services rendered for tax compliance, tax advice and tax planning. |
(4) | All other fees billed by the auditor for products and services not included in the foregoing categories. |
(5) | Canadian dollar amounts have been converted to U.S. dollars based on the historical Canadian to U.S. average daily rate of exchange as at December 31, 2021. |
(6) | Canadian dollar amounts have been converted to U.S. dollars based on the historical Canadian to U.S. average daily rate of exchange as at December 31, 2020. |
Item 15. | Exhibits, Financial Statement Schedules |
Exhibit No. | Description | ||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
4.5 | |||||
4.6 | |||||
10.1# | |||||
10.2# | |||||
10.3# | |||||
10.4# | ||||
10.5# | ||||
10.6# | ||||
10.7# | ||||
10.8† | ||||
10.9† | ||||
10.10† | ||||
10.11† | ||||
10.12† | ||||
10.13† | ||||
10.14† | ||||
10.15† | |||||
10.16* | |||||
10.17* | |||||
10.18* | |||||
10.19* | |||||
10.20† | |||||
10.21† |
10.22* | |||||
10.23* | |||||
10.24* | |||||
10.25* | |||||
10.26† | |||||
10.27* | |||||
10.28* | |||||
10.29† | |||||
10.30† | |||||
10.31* | |||||
10.32 | |||||
10.33# | |||||
10.34† | |||||
10.35† | |||||
10.36† |
10.37† | |||||
10.38† | |||||
10.39* | |||||
10.40* | |||||
10.41* | |||||
10.42† | |||||
10.43* | |||||
10.44* | |||||
10.45* | |||||
10.46† | |||||
10.47* | |||||
10.48 |
10.49 | |||||
10.50 | |||||
10.51 | |||||
10.52 | |||||
10.53# |
10.54* | |||||
10.55* | |||||
10.56 | |||||
10.57# | |||||
10.58 | |||||
10.59 | |||||
10.60# | |||||
10.61# | |||||
10.62# | |||||
10.63# | |||||
10.64# | |||||
10.65# | |||||
10.66# | |||||
10.67# | |||||
10.68# | |||||
10.69# | |||||
10.70# | |||||
10.71# | |||||
10.72# |
21.1 | |||||
23.1 | |||||
31.1 | |||||
31.2 | |||||
31.3 | |||||
31.4 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from the 10-K for the year ended December 31, | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
† | The Company has omitted portions of the referenced exhibit pursuant to a request for confidential treatment under Rule |
* | Certain portions of this exhibit (indicated by “[…***…]”) have been omitted S-K because the omitted information is not material and |
# | Indicates management contract or compensatory plan. |
ZYMEWORKS INC. | |||||
By: | /s/ | ||||
Name: | |||||
Title: |
Signature | Title | Date | ||||
/s/ | ||||||
Kenneth Galbraith | ||||||
/s/ | ||||||
Christopher Astle | ||||||
Director | May 2, 2022 | |||||
Troy M. Cox | ||||||
Director | May 2, 2022 | |||||
Kenneth Hillan | ||||||
* | Director | May 2, 2022 | ||||
Susan Mahony | ||||||
* | Director | May 2, 2022 | ||||
Kelvin Neu | ||||||
* | Director | May 2, 2022 | ||||
Hollings C. Renton | ||||||
* | Director | May 2, 2022 | ||||
Natalie Sacks | ||||||
* | Director | May 2, 2022 | ||||
Lota Zoth |
By: | /s/ Kenneth | |||
Kenneth Galbraith Attorney-in-fact | ||||