☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
84-462-0206
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.0001 | BNTC | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company |
☐
, 2022.
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including the potential duration of treatment effects and the potential for a “one shot” cure;
We have based the forward-looking statements included in this Report on information available to us on the date of this Report or on the date thereof. Except as required by law we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we, in the future, may file with the SEC, including annual reports on Form
March 31, | June 30, | |||||||
2021 | 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,988 | $ | 9,801 | ||||
Trade and other receivables | 10 | 59 | ||||||
Other current assets | 409 | 949 | ||||||
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Total current assets | 12,407 | 10,809 | ||||||
Property and equipment, net | 563 | 374 | ||||||
Deposits | 9 | 9 | ||||||
Other assets | 197 | — | ||||||
Right-of-use assets | 252 | 395 | ||||||
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Total assets | $ | 13,428 | $ | 11,587 | ||||
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Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Trade and other payables | $ | 2,005 | $ | 741 | ||||
Accrued employee benefits | 231 | 203 | ||||||
Lease liabilities, current portion | 208 | 192 | ||||||
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Total current liabilities | 2,444 | 1,136 | ||||||
Lease liabilities, less current portion | 54 | 213 | ||||||
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Total liabilities | 2,498 | 1,349 | ||||||
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Commitments and contingencies (Note 12) | ||||||||
Stockholders’ equity: | ||||||||
Common stock, $0.0001 par value—10,000,000 shares authorized; 4,818,050 and 1,108,374 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively | 5 | 1 | ||||||
Additional paid-in capital | 138,632 | 128,826 | ||||||
Accumulated deficit | (126,116 | ) | (116,636 | ) | ||||
Accumulated other comprehensive loss | (1,591 | ) | (1,953 | ) | ||||
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Total stockholders’ equity | 10,930 | 10,238 | ||||||
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Total liabilities and stockholders’ equity | $ | 13,428 | $ | 11,587 | ||||
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March 31, | June 30, | |||||||
2022 | 2021 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 8,630 | $ | 19,769 | ||||
Trade and other receivables | 5 | 25 | ||||||
Prepaid and other assets | 206 | 814 | ||||||
Total current assets | 8,841 | 20,608 | ||||||
Property and equipment, net | 214 | 375 | ||||||
Deposits | 25 | 9 | ||||||
Other assets | 156 | 185 | ||||||
Right-of-use | 828 | 202 | ||||||
Total assets | $ | 10,064 | $ | 21,379 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Trade and other payables | $ | 1,320 | $ | 880 | ||||
Accrued employee benefits | 357 | 276 | ||||||
Lease liabilities, current portion | 232 | 213 | ||||||
Total current liabilities | 1,909 | 1,369 | ||||||
Lease liabilities, less current portion | 635 | 0 | ||||||
Total liabilities | 2,544 | 1,369 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.0001 par value-40,000,000 shares authorized; 8,171,690 shares issued and outstanding at March 31, 2022 and June 30, 2021 | 1 | 1 | ||||||
Additional paid-in capital | 152,285 | 151,583 | ||||||
Accumulated deficit | (143,260 | ) | (130,119 | ) | ||||
Accumulated other comprehensive loss | (1,506 | ) | (1,455 | ) | ||||
Total stockholders’ equity | 7,520 | 20,010 | ||||||
Total liabilities and stockholders’ equity | $ | 10,064 | $ | 21,379 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue: | ||||||||||||||||
Revenues from customers | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
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Total revenues | 1 | 28 | 57 | 137 | ||||||||||||
Operating expenses | ||||||||||||||||
Royalties and license fees | 7 | 47 | 122 | (233 | ) | |||||||||||
Research and development | 2,758 | 805 | 4,700 | 2,095 | ||||||||||||
General and administrative | 1,029 | 1,287 | 4,976 | 3,669 | ||||||||||||
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Total operating expenses | 3,794 | 2,139 | 9,798 | 5,531 | ||||||||||||
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Loss from operations | (3,793 | ) | (2,111 | ) | (9,741 | ) | (5,394 | ) | ||||||||
Other income (loss): | ||||||||||||||||
Foreign currency transaction gain (loss) | (112 | ) | (7 | ) | (167 | ) | 4 | |||||||||
Interest income (expense), net | (2 | ) | 16 | (5 | ) | 52 | ||||||||||
Other income, net | — | — | 37 | — | ||||||||||||
Unrealized loss on investment | (2 | ) | — | (3 | ) | (1 | ) | |||||||||
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Total other income (loss), net | (116 | ) | 9 | (138 | ) | 55 | ||||||||||
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Net loss | $ | (3,909 | ) | $ | (2,102 | ) | $ | (9,879 | ) | $ | (5,339 | ) | ||||
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Other comprehensive income (loss): | ||||||||||||||||
Unrealized foreign currency translation gain (loss) | (24 | ) | (901 | ) | 362 | (869 | ) | |||||||||
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Total other comprehensive income (loss) | (24 | ) | (901 | ) | 362 | (869 | ) | |||||||||
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Total comprehensive loss | $ | (3,933 | ) | $ | (3,003 | ) | $ | (9,517 | ) | $ | (6,208 | ) | ||||
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Net loss | $ | (3,909 | ) | $ | (2,102 | ) | $ | (9,879 | ) | $ | (5,339 | ) | ||||
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Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.82 | ) | $ | (1.96 | ) | $ | (2.93 | ) | $ | (5.36 | ) | ||||
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Weighted average number of shares outstanding: basic and diluted | 4,747,059 | 1,070,957 | 3,375,228 | 995,246 | ||||||||||||
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Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue: | ||||||||||||||||
Licensing revenues from customers | $ | 48 | $ | 1 | $ | 73 | $ | 57 | ||||||||
Total revenues | 48 | 1 | 73 | 57 | ||||||||||||
Operating expenses | ||||||||||||||||
Royalties and license fees | 0 | 7 | 0 | 122 | ||||||||||||
Research and development | 2,171 | 2,758 | 8,096 | 4,700 | ||||||||||||
General and administrative | 1,337 | 1,029 | 5,093 | 4,976 | ||||||||||||
Total operating expenses | 3,508 | 3,794 | 13,189 | 9,798 | ||||||||||||
Loss from operations | (3,460 | ) | (3,793 | ) | (13,116 | ) | (9,741 | ) | ||||||||
Other income (loss): | ||||||||||||||||
Foreign currency transaction gain (loss) | 229 | (112 | ) | 36 | (167 | ) | ||||||||||
Interest expense, net | (10 | ) | (2 | ) | (22 | ) | (5 | ) | ||||||||
Other income (expense), net | (29 | ) | 0 | (29 | ) | 37 | ||||||||||
Unrealized loss on investment | (5 | ) | (2 | ) | (10 | ) | (3 | ) | ||||||||
Total other income (loss), net | 185 | (116 | ) | (25 | ) | (138 | ) | |||||||||
Net loss | $ | (3,275 | ) | $ | (3,909 | ) | $ | (13,141 | ) | $ | (9,879 | ) | ||||
Other comprehensive income: | ||||||||||||||||
Unrealized foreign currency translation (loss) gain | (233 | ) | (24 | ) | (51 | ) | 362 | |||||||||
Total other comprehensive (loss) income | (233 | ) | (24 | ) | (51 | ) | 362 | |||||||||
Total comprehensive loss | $ | (3,508 | ) | $ | (3,933 | ) | $ | (13,192 | ) | $ | (9,517 | ) | ||||
Net loss | $ | (3,275 | ) | $ | (3,909 | ) | $ | (13,141 | ) | $ | (9,879 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.40 | ) | $ | (0.82 | ) | $ | (1.61 | ) | $ | (2.93 | ) | ||||
Weighted average number of shares outstanding: basic and diluted | 8,171,690 | 4,747,059 | 8,171,690 | 3,375,228 | ||||||||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2019 | 856,765 | $ | 1 | $ | 127,327 | $ | (108,870 | ) | $ | (1,864 | ) | $ | 16,594 | |||||||||||
Common stock sold for cash, net of issuance costs of $240 | 186,666 | — | 1,720 | — | — | 1,720 | ||||||||||||||||||
Issuance of pre-purchased warrants, net of issuance costs of $240 | — | — | 50 | — | — | 50 | ||||||||||||||||||
Share-based compensation | — | — | 55 | — | — | 55 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (61 | ) | 61 | — | — | |||||||||||||||||
Foreign currency translation loss | — | — | — | — | (304 | ) | (304 | ) | ||||||||||||||||
Net loss | — | — | — | (1,147 | ) | (1,147 | ) | |||||||||||||||||
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Balance at September 30, 2019 | 1,043,431 | $ | 1 | $ | 129,091 | $ | (109,956 | ) | $ | (2,168 | ) | $ | 16,968 | |||||||||||
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Exercise of pre-funded warrants | 27,526 | — | — | — | — | — | ||||||||||||||||||
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Share-based compensation | — | — | 37 | — | — | 37 | ||||||||||||||||||
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Forfeiture of share-based payments | — | — | (319 | ) | 319 | — | — | |||||||||||||||||
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Foreign currency translation gain | — | — | — | — | 336 | 336 | ||||||||||||||||||
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Net loss | — | — | — | (2,090 | ) | — | (2,090 | ) | ||||||||||||||||
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Balance at December 31, 2019 | 1,070,957 | $ | 1 | $ | 128,809 | $ | (111,727 | ) | $ | (1,832 | ) | $ | 15,251 | |||||||||||
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Share-based compensation | — | — | 88 | — | — | 88 | ||||||||||||||||||
Foreign currency translation gain | — | — | — | — | (901 | ) | (901 | ) | ||||||||||||||||
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Net loss | — | — | — | (2,102 | ) | — | (2,102 | ) | ||||||||||||||||
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Balance at March 31, 2020 | 1,070,957 | $ | 1 | $ | 128,897 | $ | (113,829 | ) | $ | (2,733 | ) | $ | 12,336 | |||||||||||
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Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance at June 30, 2020 | 1,108,374 | $ | 1 | $ | 128,826 | $ | (116,636 | ) | $ | (1,953 | ) | $ | 10,238 | |||||||||||
Share-based compensation | — | — | 38 | — | — | 38 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (14 | ) | 14 | — | — | |||||||||||||||||
Foreign currency translation gain | — | — | — | — | 178 | 178 | ||||||||||||||||||
Net loss | — | — | — | (2,718 | ) | (2,718 | ) | |||||||||||||||||
Balance at September 30, 2020 | 1,108,374 | 1 | 128,850 | (119,340 | ) | (1,775 | ) | 7,736 | ||||||||||||||||
Issuance of common stock and pre-funded warrants sold for cash, net of issuance costs of $1,643 | 3,150,514 | 3 | 9,848 | — | — | 9,851 | ||||||||||||||||||
Exercise of pre-funded warrants | 281,581 | — | — | — | — | — | ||||||||||||||||||
Share-based compensation | — | — | 82 | — | — | 82 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (385 | ) | 385 | — | — | |||||||||||||||||
Foreign currency translation gain | — | — | — | — | 208 | 208 | ||||||||||||||||||
Net loss | — | — | — | (3,252 | ) | — | (3,252 | ) | ||||||||||||||||
Balance at December 31, 2020 | 4,540,469 | 4 | 138,395 | (122,207 | ) | (1,567 | ) | 14,625 | ||||||||||||||||
Exercise of pre-funded warrants | 277,581 | 1 | 2 | — | — | 3 | ||||||||||||||||||
Share-based compensation | — | — | 235 | — | — | 235 | ||||||||||||||||||
Foreign currency translation loss | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||||
Net loss | — | — | — | (3,909 | ) | — | (3,909 | ) | ||||||||||||||||
Balance at March 31, 2021 | 4,818,050 | $ | 5 | $ | 138,632 | $ | (126,116 | ) | $ | (1,591 | ) | $ | 10,930 | |||||||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Loss | Equity | |||||||||||||||||||
Balance at June 30, 2020 | 1,108,374 | $ | 1 | $ | 128,826 | $ | (116,636 | ) | $ | (1,953 | ) | $ | 10,238 | |||||||||||
Share-based compensation | — | — | 38 | — | — | 38 | ||||||||||||||||||
Forfeiture of share-based payments | — | — | (14 | ) | 14 | — | — | |||||||||||||||||
Foreign currency translation gain | — | — | — | — | 178 | 178 | ||||||||||||||||||
Net loss | — | — | — | (2,718 | ) | (2,718 | ) | |||||||||||||||||
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Balance at September 30, 2020 | 1,108,374 | $ | 1 | $ | 128,850 | $ | (119,340 | ) | $ | (1,775 | ) | $ | 7,736 | |||||||||||
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Issuance of common stock and pre-funded warrants sold for cash, net of issuance costs of $1,643 | 3,150,514 | 3 | 9,848 | — | — | 9,851 | ||||||||||||||||||
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Exercise of pre-funded warrants | 281,581 | — | — | — | — | — | ||||||||||||||||||
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Share-based compensation | — | — | 82 | — | — | 82 | ||||||||||||||||||
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Forfeiture of share-based payments | — | — | (385 | ) | 385 | — | — | |||||||||||||||||
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Foreign currency translation gain | — | — | — | — | 208 | 208 | ||||||||||||||||||
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Net loss | — | — | — | (3,252 | ) | — | (3,252 | ) | ||||||||||||||||
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Balance at December 31, 2020 | 4,540,469 | $ | 4 | $ | 138,395 | $ | (122,207 | ) | $ | (1,567 | ) | $ | 14,625 | |||||||||||
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Exercise of pre-funded warrants | 277,581 | 1 | 2 | — | — | 3 | ||||||||||||||||||
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Share-based compensation | — | — | 235 | — | — | 235 | ||||||||||||||||||
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Foreign currency translation loss | — | — | — | — | (24 | ) | (24 | ) | ||||||||||||||||
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Net loss | — | — | — | (3,909 | ) | — | (3,909 | ) | ||||||||||||||||
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Balance at March 31, 2021 | 4,818,050 | $ | 5 | $ | 138,632 | $ | (126,116 | ) | $ | (1,591 | ) | $ | 10,930 | |||||||||||
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Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balance at June 30, 2021 | 8,171,690 | $ | 1 | $ | 151,583 | $ | (130,119 | ) | $ | (1,455 | ) | $ | 20,010 | |||||||||||
Share-based compensation | — | — | 271 | — | — | 271 | ||||||||||||||||||
Foreign currency translation gain | — | — | — | — | 239 | 239 | ||||||||||||||||||
Net loss | — | — | — | (5,045 | ) | — | (5,045 | ) | ||||||||||||||||
Balance at September 30, 2021 | 8,171,690 | 1 | 151,854 | (135,164 | ) | (1,216 | ) | 15,475 | ||||||||||||||||
Share-based compensation | — | — | 239 | — | — | 239 | ||||||||||||||||||
Foreign currency translation loss | — | — | — | — | (57 | ) | (57 | ) | ||||||||||||||||
Net loss | — | — | — | (4,821 | ) | — | (4,821 | ) | ||||||||||||||||
Balance at December 31, 2021 | 8,171,690 | 1 | 152,093 | (139,985 | ) | (1,273 | ) | 10,836 | ||||||||||||||||
Share-based compensation | — | — | 192 | — | 192 | |||||||||||||||||||
Foreign currency translation loss | — | — | — | — | (233 | ) | (233 | ) | ||||||||||||||||
Net loss | — | — | — | (3,275 | ) | (3,275 | ) | |||||||||||||||||
Balance at March 31, 2022 | 8,171,690 | $ | 1 | $ | 152,285 | $ | (143,260 | ) | $ | (1,506 | ) | $ | 7,520 | |||||||||||
Nine Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (9,879 | ) | $ | (5,339 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 179 | 150 | ||||||
Amortization of right-of-use assets | 143 | 138 | ||||||
Loss on disposal of fixed assets | — | 1 | ||||||
Unrealized loss on investment | 3 | 1 | ||||||
Share-based compensation expense | 355 | 180 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 21 | 2,494 | ||||||
Other assets | 377 | (69 | ) | |||||
Trade and other payables | 1,214 | (1,197 | ) | |||||
Accrued employee benefits | 55 | — | ||||||
Lease liabilities | (143 | ) | (749 | ) | ||||
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Net cash used in operating activities | (7,675 | ) | (4,390 | ) | ||||
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Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (362 | ) | (82 | ) | ||||
Proceeds from disposal of property and equipment | — | 1 | ||||||
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Net cash used in investing activities | (362 | ) | (81 | ) | ||||
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Cash flows from financing activities: | ||||||||
Proceeds from issues of shares and pre-funded warrants | 11,497 | 2,250 | ||||||
Shares and pre-funded warrant issuance costs | (1,643 | ) | (480 | ) | ||||
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Net cash provided by financing activities | 9,854 | 1,770 | ||||||
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Effects of exchange rate changes on cash and cash equivalents | 370 | (1,617 | ) | |||||
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Net increase (decrease) in cash and cash equivalents | 2,187 | (4,318 | ) | |||||
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Cash and cash equivalents, beginning of period | 9,801 | 15,718 | ||||||
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Cash and cash equivalents, end of period | $ | 11,988 | $ | 11,400 | ||||
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Supplemental disclosure of cash flow information: | ||||||||
Initial measurement of operating lease right-of-use assets and liabilities | $ | — | $ | (579 | ) | |||
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Nine Months Ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (13,141 | ) | $ | (9,879 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 161 | 179 | ||||||
Amortization of right-of-use | 168 | 143 | ||||||
Unrealized loss on investment | 10 | 3 | ||||||
Share-based compensation expense | 702 | 355 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 47 | 21 | ||||||
Other assets | 609 | 377 | ||||||
Trade and other payables | 512 | 1,214 | ||||||
Accrued employee benefits | 28 | 55 | ||||||
Lease liabilities | (140 | ) | (143 | ) | ||||
Net cash used in operating activities | (11,044 | ) | (7,675 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | 0 | (362 | ) | |||||
Net cash used in investing activities | 0 | (362 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issues of shares and pre-funded warrants | 0 | 11,497 | ||||||
Shares and pre-funded warrant issuance costs | 0 | (1,643 | ) | |||||
Net cash provided by financing activities | 0 | 9,854 | ||||||
Effects of exchange rate changes on cash and cash equivalents | (95 | ) | 370 | |||||
Net increase (decrease) in cash and cash equivalents | (11,139 | ) | 2,187 | |||||
Cash and cash equivalents, beginning of period | 19,769 | 9,801 | ||||||
Cash and cash equivalents, end of period | $ | 8,630 | $ | 11,988 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Re-measurement of operating leaseright-of-use | $ | 794 | $ | 0 | ||||
On November 27, 2019, BBL announced its intention
In accordance with the U.S. Securities and Exchange Commission’s (“SEC”) Staff Accounting Bulletin Topic 4C, all issued and outstanding shares of the Company’s common stock have been retroactively adjusted in these consolidated financial statements to reflect the 300:1 ratio and share consolidation as if it occurred on July 1, 2019.
The terms the “Company,” “we,” “us,” “our” and similar terms used herein refer (i), priorCompany transitioned its operations to there-domiciliation to BBL, an Australian corporation, and its subsidiaries, and (ii), following the re-domiciliation, to Benitec Biopharma Inc., a Delaware corporation, and its subsidiaries (including BBL).
Principal place of business/country of incorporation | Ownership Fiscal Year 2020 | Ownership Fiscal Year 2019 | ||||||||
Benitec Biopharma Proprietary Limited (“BBL”) | Australia | 100 | % | — | ||||||
Benitec Australia Proprietary Limited | Australia | 100 | % | 100 | % | |||||
Benitec Limited | United Kingdom | 100 | % | 100 | % | |||||
Benitec, Inc. | USA | 100 | % | 100 | % | |||||
Benitec LLC | USA | 100 | % | 100 | % | |||||
RNAi Therapeutics, Inc. | USA | 100 | % | 100 | % | |||||
Tacere Therapeutics, Inc. | USA | 100 | % | 100 | % |
Principal place of business/country of incorporation | ||
Benitec Biopharma Proprietary Limited (“BBL”) | Australia | |
Benitec Australia Proprietary Limited | Australia | |
Benitec Limited | United Kingdom | |
Benitec, Inc. | USA | |
Benitec LLC | USA | |
RNAi Therapeutics, Inc. | USA | |
Tacere Therapeutics, Inc. | USA | |
Benitec IP Holdings, Inc. | USA |
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
The Company is continuing to monitor the impact of the pandemic of the novel strain of coronavirus COVID-19 (“COVID-19”) on all aspects of its business, including how it will impact our employees, suppliers, vendors and business partners. While the Company did experience some disruption from COVID-19 including disruption of the timing and completion of certain pre-clinical trials we are unable to predict the overall impact that COVID-19 will have on our financial position and operating results due to numerous uncertainties.
2021.
BENITEC BIOPHARMA INC.
Notes
(Unaudited)
risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, reliance on single-source vendors and collaborators, availability of raw materials, patentability of the Company’s products and processes and clinical efficacy and safety of the Company’s products under development, compliance with government regulations and the need to obtain additional financing to fund operations.
and losses.
Level 1: | Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. |
Level 2: | Inputs, other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by us, which reflect those that a market participant would use. |
As of March 31, 2021, and June 30, 2020, the Company had no financial assets or liabilities measured at fair value on a recurring basis.
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
There were no cash equivalents as of March 31, 2022 and June 30, 2021.
Software | 3- 4 years | |
Lab equipment | 3- 7 years | |
Computer hardware | 3- 5 years | |
Leasehold improvements | shorter of the lease term or estimated useful lives |
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Government Research and Development Grants
Government grants are recognized at fair value where there is reasonable assurance that the grant will be received, and all grant conditions will be met. Grants relating to expense items are recognized as income over the periods necessary to match the grant costs they are compensating.
Grant income is generated through the Australian federal government’s Research and Development Tax Incentive program, under which the government provides a cash refund for 43.5% of eligible research and development expenditures. This grant is available for our research and development activities in Australia, as well as activities in the United States to the extent such U.S.-based expenses relate to our activities in Australia, do not exceed half the expenses for the relevant activities and are approved by the Australian government. Grants are recorded when a reliable estimate can be made.
The Company will not be claiming the Australian Government research and development grants going forward.
The Company adopted FASB Accounting Standard Update (“ASU”) 2018-07 and accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair value of such awards over the service period.
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
The Company’sCompany. These factors raise substantial doubt about its ability to continue as a going concern is dependent upon its ability to generate revenue and obtain adequate financing. While the Company believes in its ability to generate revenue and raise additional funds, there can be no assurances to that effect. concern.
BENITEC BIOPHARMA INC.
Notesnecessary capital, it may have a material adverse effect on the operations of the Company and the development of its technology (including delaying certain development milestones), or the Company may have to Consolidated Financial Statements
(Unaudited)
cease operations altogether
Three Months Ended | Nine Months Ended | |||||||||||||||
Revenues from customers (US$’000) | March 31, 2021 | March 31, 2020 | March 31, 2021 | March 31, 2020 | ||||||||||||
Licensing revenue | $ | 1 | $ | — | $ | 57 | $ | 60 | ||||||||
Royalty revenue | — | 28 | — | 73 | ||||||||||||
Service revenue | — | — | — | 4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | 1 | — | — | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Nine Months Ended March 31, 2021 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | 57 | — | — | 57 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 57 | $ | — | $ | — | $ | 57 | ||||||||
|
|
|
|
|
|
|
|
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Three Months Ended March 31, 2020 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | — | $ | — | $ | — | ||||||||
Services transferred over time | — | 28 | — | 28 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 28 | $ | — | $ | 28 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Nine Months Ended March 31, 2020 | ||||||||||||||||
Disaggregated revenue (US$’000) | Licensing | Royalties | Development activities | Total | ||||||||||||
Services transferred at a point in time | $ | — | $ | 73 | $ | — | $ | 73 | ||||||||
Services transferred over time | 60 | — | 4 | 64 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 60 | $ | 73 | $ | 4 | $ | 137 | ||||||||
|
|
|
|
|
|
|
|
5. CashPrepaid and Cash equivalents
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Cash at Bank | $ | 11,988 | $ | 5,231 | ||||
Term Deposit | — | 4,570 | ||||||
|
|
|
| |||||
Total | $ | 11,988 | $ | 9,801 | ||||
|
|
|
|
(US$’000) | March 31, 2022 | June 30, 2021 | ||||||
Prepaid expenses | $ | 340 | $ | 967 | ||||
Security deposit | 15 | 15 | ||||||
Market value of listed shares | 7 | 17 | ||||||
Total other assets | 362 | 999 | ||||||
Less: non-current portion | (156 | ) | (185 | ) | ||||
Current portion | $ | 206 | $ | 814 | ||||
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
6. Other current assets
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Prepaid expenses | $ | 587 | $ | 861 | ||||
Security deposit | 15 | 69 | ||||||
Other deposit | — | 18 | ||||||
Market value of listed shares | 4 | 1 | ||||||
|
|
|
| |||||
Total other assets | 606 | 949 | ||||||
Less: non-current portion | (197 | ) | — | |||||
|
|
|
| |||||
Current portion | $ | 409 | $ | 949 | ||||
|
|
|
|
7.
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Software | $ | 14 | $ | 11 | ||||
Lab equipment | 1,471 | 1,109 | ||||||
Computer hardware | 26 | 26 | ||||||
Leasehold improvements | 24 | 24 | ||||||
|
|
|
| |||||
Total property and equipment, gross | 1,535 | 1,170 | ||||||
Accumulated depreciation and amortization | (972 | ) | (796 | ) | ||||
|
|
|
| |||||
Total property and equipment, net | $ | 563 | $ | 374 | ||||
|
|
|
|
(US$’000) | March 31, 2022 | June 30, 2021 | ||||||
Software | $ | 14 | $ | 14 | ||||
Lab equipment | 1,330 | 1,329 | ||||||
Computer hardware | 25 | 26 | ||||||
Leasehold improvements | 24 | 24 | ||||||
Total property and equipment, gross | 1,393 | 1,393 | ||||||
Accumulated depreciation and amortization | (1,179 | ) | (1,018 | ) | ||||
Total property and equipment, net | $ | 214 | $ | 375 | ||||
8.2021.
(US$’000) | March 31, 2021 | June 30, 2020 | ||||||
Trade payable | $ | 1,640 | $ | 282 | ||||
Accrued license fees | 142 | 54 | ||||||
Accrued professional fees | 42 | 155 | ||||||
Other payables | 181 | 250 | ||||||
|
|
|
| |||||
Total | $ | 2,005 | $ | 741 | ||||
|
|
|
|
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
9.
(US$’000) | March 31, 2022 | June 30, 2021 | ||||||
Trade payable | $ | 100 | $ | 274 | ||||
Accrued license fees | 140 | 140 | ||||||
Accrued professional fees | 86 | 13 | ||||||
Accrued research and development | 938 | 279 | ||||||
Other payables | 56 | 174 | ||||||
Total | $ | 1,320 | $ | 880 | ||||
During August 2021, the Company extended the lease through June 2025.
(US$’000) | Operating lease right-of- use assets | |||
Balance at July 1, 2021 | $ | 202 | ||
Re-measurement during the period | 794 | |||
Amortization of right of use asset | (168 | ) | ||
Operating lease right-of-use | $ | 828 | ||
(US$’000) | Operating lease liabilities | |||
Balance at July 1, 2021 | $ | 213 | ||
Re-measurement during the period | 794 | |||
Principal payments on operating lease liabilities | (140 | ) | ||
Operating lease liabilities at March 31, 2022 | 867 | |||
Less: non-current portion | (635 | ) | ||
Current portion at March 31, 2022 | $ | 232 | ||
(US$’000) | March 31, 2021 | |||
2021 | $ | 52 | ||
2022 | 218 | |||
|
| |||
Total operating lease payments | 270 | |||
Less imputed interest | (8 | ) | ||
|
| |||
Present value of operating lease liabilities | $ | 262 | ||
|
|
(US$’000) | March 31, 202 2 | |||
2022 | $ | 268 | ||
2023 | 292 | |||
2024 | 302 | |||
2025 | 76 | |||
Total operating lease payments | 938 | |||
Less imputed interest | (71 | ) | ||
Present value of operating lease liabilities | $ | 867 | ||
10.2021.
The gross and net proceeds were $11.5 million and $9.9 million, respectively.
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
The activity related to warrants during for the three and
Common Stock from Warrants | Weighted- average Exercise Price (per share) | |||||||
Outstanding at July 1, 2020 | 145,424 | $ | 29.48 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Forfeited | (38,326 | ) | 82.50 | |||||
|
|
|
| |||||
Outstanding and exercisable at September 30, 2020 | 107,098 | $ | 10.50 | |||||
Granted | 559,162 | 3.09 | ||||||
Exercised | (281,581 | ) | 3.10 | |||||
Forfeited | — | — | ||||||
|
|
|
| |||||
Outstanding and exercisable at December 31, 2020 | 384,679 | $ | 5.15 | |||||
Granted | — | — | ||||||
Exercised | (277,581 | ) | 3.10 | |||||
Forfeited | — | — | ||||||
|
|
|
| |||||
Outstanding and exercisable at March 31, 2021 | 107,098 | $ | 10.50 | |||||
|
|
|
|
Common Stock from Warrants | Weighted- average Exercise Price (per share) | |||||||
Outstanding at July 1, 2021 | 107,095 | $ | 10.50 | |||||
Outstanding and exercisable at March 31, 2022 | 107,095 | $ | 10.50 |
Upon
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
Stock Options | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding at June 30, 2020 | 70,154 | $ | 60.42 | 2.89 years | $ | — | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (444 | ) | 69.32 | |||||||||||||
|
|
|
| |||||||||||||
Outstanding at September 30, 2020 | 69,710 | $ | 60.00 | 2.65 years | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Granted | 525,547 | 2.98 | 9.95 years | |||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | (7,967 | ) | 153.78 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding at December 31, 2020 | 587,290 | 7.64 | 9.2 years | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Outstanding at March 31, 2021 | 587,290 | 7.64 | 8.9 years | — | ||||||||||||
Exercisable at March 31, 2021 | 41,686 | $ | 47.34 | 2.3 years | $ | — | ||||||||||
|
|
|
|
|
|
|
|
Stock Options | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||
Outstanding at July 1, 2021 | 702,064 | $ | 7.16 | 8.07 years | $ | — | ||||||||||
Outstanding at September 30, 2021 | 702,064 | 7.16 | 7.82 years | $ | — | |||||||||||
Granted | 36,000 | 2.99 | 9.93 years | $ | — | |||||||||||
Outstanding at March 31, 2022 | 738,064 | 6.95 | 7.39 years | $ | — | |||||||||||
Exercisable at March 31, 2022 | 247,560 | $ | 13.81 | 6.91 years | $ | — | ||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(US$’000) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Research and development | $ | 18 | $ | 18 | $ | 33 | $ | 53 | ||||||||
General and administrative | 217 | 70 | 322 | 127 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total share-based compensation expense | $ | 235 | $ | 88 | $ | 355 | $ | 180 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(US$’000) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Research and development | $ | 63 | $ | 18 | $ | 224 | $ | 33 | ||||||||
General and administrative | 129 | 217 | 478 | 322 | ||||||||||||
Total share-based compensation expense | $ | 192 | $ | 235 | $ | 702 | $ | 355 | ||||||||
BENITEC BIOPHARMA INC.
Notes to Consolidated Financial Statements
(Unaudited)
11.
12.
13.
On April 30, 2021, the Company closed an underwritten, firm commitment public offering of 3,036,366 shares of the Company’s common stock at a public offering price of $4.25 per share resulting in gross proceeds to the Company of approximately $12.9 million. In addition, the Company granted the underwriter an option for a period of 30 days to purchase up to an additional 455,454 shares of the Company’s common stock at the public offering price. On May 11, 2021, the underwriter partially exercised the overallotment option by purchasing 317,274 shares resulting in approximately $1.35 million of additional gross proceeds to the Company.
|
a chronic, life-threatening genetic disorder.
Through the combination of the
Unless otherwise indicated, all dollar amounts in this section are provided in thousands.
Re-domiciliation
On April 15, 2020, (the “Implementation Date”), the re-domiciliation of Benitec Biopharma Limited (the “Re-domiciliation”), a public company incorporated under the laws of the State of Western Australia, or BBL, was completed in accordance with the Scheme Implementation Agreement, as amended and restated as of January 30, 2020, between BBL and us. As a result of the Re-domiciliation, the jurisdiction of incorporation was changed from Australia to Delaware, and BBL became our wholly owned subsidiary.
The Re-domiciliation was effected pursuant to a statutory scheme of arrangement under Australian law, or the Scheme, whereby on the Implementation Date, all of the issued and outstanding ordinary shares of BBL were exchanged for newly issued shares of our common stock, on the basis of one share of our common stock, par value $0.0001 per share, for every 300 ordinary shares of BBL issued and outstanding. Holders of BBL’s American Depository Shares, or ADSs (each of which represented 200 ordinary shares), received two shares of our common stock for every three ADSs held.
In December 2019, an outbreak of a novel strain of coronavirus was identified in Wuhan, China. This virus continues to spread globally,
clearer.
Axovant Termination
Benitec’s License and Collaboration Agreement, dated July 9, 2018, with Axovant Sciences GmbH, or Axovant, was terminated as of September 3, 2019. As a result, all rights and licenses which Benitec had granted to Axovant to develop and commercialize BB-301 and related gene therapy product candidates terminated.
Prior to such termination, the Benitec team endeavored to conduct several additional exploratory nonclinical analyses in order to potentially improve the biological efficacy of BB-301 via further optimization of the route of administration employed to dose the target muscle tissues.
Nonclinical data derived from in vivo evaluations of BB-301 in two distinct large animal species suggested the existence of an opportunity to further improve the biological efficacy of the compound via additional optimization of the proprietary delivery method employed to dose key target tissues that underlie the morbidity and mortality associated with the natural history of OPMD. The initial biological efficacy profile observed for BB-301 following in vivo testing in the A17 mouse model of OPMD, including full correction of the disease phenotype, remained unchanged. However, the Benitec management team desired to complete a series of exploratory analyses prior to the formal IND filing and the subsequent initiation of clinical testing.
Completion of the experimental work noted above would have delayed the initiation of the BB-301 clinical study beyond the timelines that were initially outlined by Axovant following the execution of the License and Collaboration Agreement between Benitec and Axovant. As such, Axovant elected to terminate the License and Collaboration Agreement between Benitec and Axovant, and all rights and licenses granted to Axovant terminated, including the rights to BB-301, which was in preclinical development for the treatment of OPMD, and all other early stage research collaboration programs that were governed by the agreement.
Nonclinical
Currently, nofunction” phenotype associated with OPMD.
Durable, broad-based,
Durable and biologically
Further data
The key preliminary resultsinterim data-sets are summarized here:
below:
Finally, it is critical to highlight the
Following these methodological improvements,dosing of the large animal subjects.
by Benitec has scheduled a vs. the Former
BB-103
BB-103 has demonstrated robust nonclinical activity duringwith the evaluation of this agentinvestigational genetic medicine,
evaluate the safety and clinical activity of intramuscular doses of
In December 2016, we entered into an exclusive sublicense agreement with NantWorks, LLC, pursuant to which we agreed to make certain milestone and royalty payments, as well as periodic payments for so long as the agreement remained in effect. In December of 2018, the Company accrued a milestone payment of USD 300k (AUD 425,411), which was anticipated to be paid to NantWorks, LLC under the sublicense agreement. It was later determined that the milestone was not required to be paid and, therefore, the accrual was reversed in December of 2019. We terminated the exclusive sublicense agreement for convenience, with the termination effective as of June 2020.
gains.
Results of Operations
Revenues
In the past BBL has generated revenue from its operations through two activities: revenue from customers and revenue from government research and development grants. For the three-month period ended March 31,
loss. Our licensing fees have been
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(US$’000) | ||||||||||||||||
Revenues: | ||||||||||||||||
Revenues from customers | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total revenues | $ | 1 | $ | 28 | $ | 57 | $ | 137 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(US$’000) | ||||||||||||||||
Revenues: | ||||||||||||||||
Licensing revenues from customers | $ | 48 | $ | 1 | $ | 73 | $ | 57 | ||||||||
Total revenues | $ | 48 | $ | 1 | $ | 73 | $ | 57 | ||||||||
costs incurred.
similar costs.
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(US$’000) | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Royalties and license fees | $ | 7 | $ | 47 | $ | 122 | $ | (233 | ) | |||||||
Research and development | 2,758 | 805 | 4,700 | 2,095 | ||||||||||||
General and administrative | 1,029 | 1,287 | 4,976 | 3,669 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating expenses | $ | 3,794 | $ | 2,139 | $ | 9,798 | $ | 5,531 | ||||||||
|
|
|
|
|
|
|
|
periods:
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
(US$’000) | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Royalties and license fees | $ | — | $ | 7 | $ | — | $ | 122 | ||||||||
Research and development | 2,171 | 2,758 | 8,096 | 4,700 | ||||||||||||
General and administrative | 1,337 | 1,029 | 5,093 | 4,976 | ||||||||||||
Total operating expenses | $ | 3,508 | $ | 3,794 | $ | 13,189 | $ | 9,798 | ||||||||
2021.
the commercial-scale
Other Income (Loss): Foreign currency transaction gain (loss) Interest income (expense), net Other income, net Unrealized loss on investment Total other income (loss), net periods: 2021. States. The following table sets forth a summary of the net cash flow activity for each of the periods set forth below: Net cash provided by (used in): Operating activities Investing activities Financing activities Effects of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash of 2021.setsets forth a summary of our other income (loss) for each of the periods set forth below: Three Months Ended
March 31, Nine
Months Ended
March 31, 2021 2020 2021 2020 (US$’000) $ (112 ) $ (7 ) $ (167 ) $ 4 (2 ) 16 (5 ) 52 — — 37 — (2 ) — (3 ) (1 ) $ (116 ) $ 9 $ (138 ) $ 55 Three Months Ended
March 31, Nine Months Ended
March 31, Foreign currency transaction gain (loss) $ 229 $ (113 ) $ 36 $ (167 ) Interest expense, net (10 ) (2 ) (22 ) (5 ) Other income (expense), net (29 ) 1 (29 ) 37 Unrealized loss on investment (5 ) (2 ) (10 ) (3 ) Total other income (loss), net $ 185 $ (116 ) $ (25 ) $ (138 ) loss,income (loss), net during the three and nine months ended March 31, 2021,2022, respectively, totaled $(116)$185 thousand and ($138),$(25) thousand, which consists of foreign currency transaction loss,gains, interest expense, other income, and unrealized lossgain on investment. During the three and nine months ended March 31, 2020,2021, respectively, other income (expense), net totaled $9$(116) thousand and $55.$(138) thousand. Foreign currency transaction gain has decreasedlosses have swung to gains due to a change in foreign exchange rates. InterestOther income, (expense), net has decreased due to fewer transactions with interest. Other income, net increased due to no longer receivinggovernment.government in 2022. Unrealized loss on investment had a minor increaseincreased for the three and nine months ended March 31, 2021,2022, compared to the three and nine months ended March 31, 2020.$126.1$143 million as of March 31, 2021.2022. We expect that our research and development expenses may increase due to the continued development of the OPMD program. It is also likely that there will be an increase in the general and administrative expenses due to the obligations of being a domestic public company in the United States as a result of the Re-domiciliation.atof March 31, 20212022 and do not currently have a credit facility.2021,2022, we had cash and cash equivalents of approximately $12$8.6 million. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to liquidity and capital preservation. Currently, our cash and cash equivalents are held in bank accounts. Nine Months Ended
March 31, 2021 2020 (US$’000) $ (7,675 ) $ (4,390 ) (362 ) (81 ) 9,854 1,770 370 (1,617 ) $ 2,187 $ (4,318 ) Nine Months Ended
March 31, Net cash provided by (used in): Operating activities $ (11,044 ) $ (7,675 ) Investing activities — (362 ) Financing activities — 9,854 Effects of exchange rate changes on cash and cash equivalents (95 ) 370 Net (decrease) increase in cash $ (11,139 ) $ 2,187 2020 was $7,675 and $4,390,$7.7 million, respectively. Net cash used in operating activities was primarily the result of our net loss, partially offset bychangechanges in working capital, and a decreaseincluding an increase in payables.2020 was $362 and $81,$0.4 million, respectively. The change was primarily related to an increasea decrease in purchases of equipment in 20212022 as there were none compared to purchases of $0.4 million in the same period in 2020.
We have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:
2025.
Off-Balance Sheet Arrangements
The Company had no material off-balance sheet arrangements as of March 31, 2021.
Estimates and assumptions about future events and their effects cannot be determined with certainty. The Company bases its estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as the Company’s operating environment changes. These changes have historically been minor and have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. These uncertainties are discussed in the section above entitled “Risk Factors.” Based on a critical assessment of its accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes that the Company’s consolidated financial statements are fairly stated in accordance with accounting principles generally accepted in the United States of Americaand provide a meaningful presentation of the Company’s financial condition and results of operations.
Revenue Recognition
The Company recognizes revenue in accordance with that core principle by applying the following steps:
Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
The Company applies judgement in determining whether contracts entered into fall within the scopecost of ASC 606 – Revenue from Contracts with Customers (“ASC 606”). In doing so, management considers the commercial substance of the transactionconducting clinical and how risks
Management has also made the judgement that the grant of the license and transfer of associated know-how and materialsclinical development costs are accounted for as one performance obligation as they are not considered to be distinct; they are highly interrelated and could not provide benefits to the customer independently from each other. Judgements were made in relation to the transfer of the license and know-how and whether this should be recognized over time or a point in time. The point in time has been determined with regard to the point at which the transfer of know-how has substantially been completed and the customer has control of the asset and the ability to direct the use of and receive substantially all of the remaining benefits.
Licensing revenues
Revenue from licensees of the Company’s intellectual property reflects the transfer of a right to use the intellectual property as it exists at the point in time in which the license is transferred to the customer. Consideration can be variable and is estimated using the most likely amount method. Subsequently, the estimate is constrained until it is highly probable that a significant revenue reversal will not occur when the uncertainty is resolved. Revenue is recognized as or when the performance obligations are satisfied.
The Company recognizes contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the consolidated balance sheet. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognizes either a contract asset or a receivable in its consolidated balance sheet, depending on whether something other than the passage of time is required before the consideration is due.
Royalties
Revenue from licensees of the Company’s intellectual property reflect a right to use the intellectual property as it exists at the point in time in which the license is granted. Where consideration is based on sales of product by the licensee, revenue is recognized when the customer’s subsequent sales of product occurs.
Services revenue
Revenue is earned (constrained by variable considerations) from the provisioncomponent of research and development services to customers. Services revenue is recognized when performance obligations are either satisfied over time or at a point in time. Generally, the provisionexpenses. The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of
Share-Basedinvoiced and includes these costs in trade and other payables on the consolidated balance sheets and within research and development expenses on the consolidated statements of operations and comprehensive loss.
Expense
The Company adopted ASU 2018-07 and accounts for non-employee share-based awards in accordance with the measurement and recognition criteria of ASC 718 and recognizes the fair value of such awards over the service period.
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Number | Description of Document | |
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | Inline XBRL Instance Document* | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |
101.CAL | Inline XBRL Calculation Linkbase Document* | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |
101.LAB | Inline XBRL Label Linkbase Document* | |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document* | |
104 | Cover Page Interactive Data File—the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
* | Filed herewith. |
** | Furnished, not filed. |
Benitec Biopharma Inc. | ||||||
Dated: May | ||||||
/s/ Jerel Banks | ||||||
Jerel Banks | ||||||
Executive Chairman and Chief Executive Officer (principal executive officer) | ||||||
/s/ Megan Boston | ||||||
Megan Boston | ||||||
Executive Director (principal financial and accounting officer) | ||||||
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