☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 39-2072586 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
28 Wells Avenue, 3rd Floor, Yonkers, NY | 10701 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.0001 par value per share | CFRX | Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Page No. | ||||||
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Item 4. | ||||||
Item 1. | ||||||
Item | ||||||
Item 2. | 58 | |||||
Item 3. | 58 | |||||
Item 4. | 58 | |||||
Item 5. | 58 | |||||
Item 6. | 59 | |||||
60 |
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
(unaudited) | (audited) | (unaudited) | (audited) | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 21,406 | $ | 15,485 | $ | 9,549 | $ | 16,654 | ||||||||
Marketable securities | 46,093 | 27,005 | 17,753 | 37,631 | ||||||||||||
Prepaid expenses and other current assets | 8,533 | 4,165 | ||||||||||||||
Prepaid expenses | 8,313 | 4,439 | ||||||||||||||
Other current assets | 2,097 | 4,140 | ||||||||||||||
Total current assets | 76,032 | 46,655 | 37,712 | 62,864 | ||||||||||||
Long-term marketable securities | 7,161 | — | ||||||||||||||
Property and equipment, net | 827 | 910 | 653 | 741 | ||||||||||||
Operating lease right-of-use | 2,682 | 2,811 | 2,326 | 2,544 | ||||||||||||
Other assets | 105 | 740 | 107 | 613 | ||||||||||||
Total assets | $ | 86,807 | $ | 51,116 | $ | 40,798 | $ | 66,762 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 3,055 | $ | 1,806 | $ | 11,269 | $ | 2,389 | ||||||||
Accrued liabilities | 4,254 | 3,610 | ||||||||||||||
Accrued and other current liabilities | 8,667 | 9,128 | ||||||||||||||
Current portion of lease liabilities | 651 | 644 | 664 | 657 | ||||||||||||
Total current liabilities | 7,960 | 6,060 | 20,600 | 12,174 | ||||||||||||
Warrant liabilities | 18,552 | 29,404 | 4,826 | 2,530 | ||||||||||||
Long-term portion of lease liabilities | 2,788 | 2,959 | 2,414 | 2,609 | ||||||||||||
Other liabilities | 73 | 73 | 73 | 73 | ||||||||||||
Total liabilities | 29,373 | 38,496 | 27,913 | 17,386 | ||||||||||||
Commitments and contingencies | 0— | 0— | 0— | 0— | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.0001 par value, 25,000,000 shares authorized and NaN outstanding at June 30, 2021 and December 31, 2020 | 0— | 0— | ||||||||||||||
Common stock, $0.0001 par value, 125,000,000 shares authorized, 39,332,721 shares and 27,810,161 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 4 | 3 | ||||||||||||||
Preferred stock, $0.0001 par value, 25,000,000 shares authorized and 0ne outstanding at June 30, 2022 and December 31, 2021 | 0— | — | ||||||||||||||
Common stock, $0.0001 par value, 125,000,000 shares authorized, 39,332,721 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 4 | 4 | ||||||||||||||
Additional paid-in capital | 308,333 | 252,908 | 311,892 | 310,008 | ||||||||||||
Accumulated other comprehensive loss | (42 | ) | (21 | ) | (213 | ) | (84 | ) | ||||||||
Accumulated deficit | (250,861 | ) | (240,270 | ) | (298,798 | ) | (260,552 | ) | ||||||||
Total stockholders’ equity | 57,434 | 12,620 | 12,885 | 49,376 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 86,807 | $ | 51,116 | $ | 40,798 | $ | 66,762 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Research and development | $ | 7,777 | $ | 5,544 | $ | 15,798 | $ | 10,648 | $ | 16,760 | $ | 7,777 | $ | 29,485 | $ | 15,798 | ||||||||||||||||
General and administrative | 2,935 | 2,619 | 5,700 | 5,579 | 3,266 | 2,935 | 6,520 | 5,700 | ||||||||||||||||||||||||
Total operating expenses | 10,712 | 8,163 | 21,498 | 16,227 | 20,026 | 10,712 | 36,005 | 21,498 | ||||||||||||||||||||||||
Loss from operations | (10,712 | ) | (8,163 | ) | (21,498 | ) | (16,227 | ) | (20,026 | ) | (10,712 | ) | (36,005 | ) | (21,498 | ) | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest income | 30 | 26 | 55 | 95 | 21 | 30 | 55 | 55 | ||||||||||||||||||||||||
Other expense | 0 | (2,175 | ) | 0 | (2,175 | ) | ||||||||||||||||||||||||||
Change in fair value of warrant liabilities | 5,286 | (7,305 | ) | 10,852 | (6,889 | ) | 1,916 | 5,286 | (2,296 | ) | 10,852 | |||||||||||||||||||||
Total other income (expense) , net | 5,316 | (9,454 | ) | 10,907 | (8,969 | ) | ||||||||||||||||||||||||||
Total other income (expense), net | 1,937 | 5,316 | (2,241 | ) | 10,907 | |||||||||||||||||||||||||||
Net loss | $ | (5,396 | ) | $ | (17,617 | ) | $ | (10,591 | ) | $ | (25,196 | ) | $ | (18,089 | ) | $ | (5,396 | ) | $ | (38,246 | ) | $ | (10,591 | ) | ||||||||
Per share information: | ||||||||||||||||||||||||||||||||
Basic and diluted net loss per share | $ | (0.14 | ) | $ | (0.88 | ) | $ | (0.31 | ) | $ | (1.43 | ) | $ | (0.46 | ) | $ | (0.14 | ) | $ | (0.97 | ) | $ | (0.31 | ) | ||||||||
Shares used in computing net loss per share | 39,332,721 | 19,991,894 | 34,176,801 | 17,661,968 | 39,332,721 | 39,332,721 | 39,332,721 | 34,176,801 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Net loss | $ | (5,396 | ) | $ | (17,617 | ) | $ | (10,591 | ) | $ | (25,196 | ) | $ | (18,089 | ) | $ | (5,396 | ) | $ | (38,246 | ) | $ | (10,591 | ) | ||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale | (13 | ) | (16 | ) | (21 | ) | (7 | ) | ||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale | 11 | (13 | ) | (129 | ) | (21 | ) | |||||||||||||||||||||||||
Comprehensive loss | $ | (5,409 | ) | $ | (17,633 | ) | $ | (10,612 | ) | $ | (25,203 | ) | $ | (18,078 | ) | $ | (5,409 | ) | $ | (38,375 | ) | $ | (10,612 | ) | ||||||||
Common Stock | Additional | Accumulated Other Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||
Shares | Amount | Paid-In Capital | Loss | Deficit | Equity | |||||||||||||||||||
Balance, December 31, 2020 | 27,810,161 | $ | 3 | $ | 252,908 | $ | (21 | ) | $ | (240,270 | ) | $ | 12,620 | |||||||||||
Issuance of securities in registered offering | 11,500,000 | 1 | 57,499 | — | — | 57,500 | ||||||||||||||||||
Financing cost of sale of securities | — | — | (3,703 | ) | — | — | (3,703 | ) | ||||||||||||||||
Issuance of common stock for exercise of warrants | 22,560 | — | 110 | — | — | 110 | ||||||||||||||||||
Stock -based compensation | — | — | 581 | — | — | 581 | ||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Net loss | — | — | — | — | (5,195 | ) | (5,195 | ) | ||||||||||||||||
Balance, March 31, 2021 | 39,332,721 | $ | 4 | $ | 307,395 | $ | (29 | ) | $ | (245,465 | ) | $ | 61,905 | |||||||||||
S tock -based compensation | — | — | 938 | — | — | 938 | ||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||
Net loss | — | — | — | — | (5,396 | ) | (5,396 | ) | ||||||||||||||||
Balance, June 30, 2021 | 39,332,721 | $ | 4 | $ | 308,333 | $ | (42 | ) | $ | (250,861 | ) | $ | 57,434 | |||||||||||
Common Stock | Additional | Accumulated Other Comprehensive | Accumulated | Stockholders’ | Common Stock | Additional | Accumulated Other Comprehensive | Accumulated | Stockholders’ | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Income (Loss) | Deficit | Equity | Shares | Amount | Paid-In Capital | Loss | Deficit | Equity | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 15,332,042 | $ | 2 | $ | 227,658 | $ | — | $ | (212,115 | ) | $ | 15,545 | ||||||||||||||||||||||||||||||||||||
Stock -based compensation | — | — | 633 | — | — | 633 | ||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 39,332,721 | $ | 4 | $ | 310,008 | $ | (84 | ) | $ | (260,552 | ) | $ | 49,376 | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 919 | — | — | 919 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | (140 | ) | — | (140 | ) | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (20,157 | ) | (20,157 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 39,332,721 | $ | 4 | $ | 310,927 | $ | (224 | ) | $ | (280,709 | ) | $ | 29,998 | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 965 | — | — | 965 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | — | — | — | 9 | — | 9 | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (7,578 | ) | (7,578 | ) | — | — | — | — | (18,089 | ) | (18,089 | ) | ||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 15,332,042 | $ | 2 | $ | 228,291 | $ | 9 | $ | (219,693 | ) | $ | 8,609 | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 39,332,721 | $ | 4 | $ | 311,892 | $ | (213 | ) | $ | (298,798 | ) | $ | 12,885 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional | Accumulated Other Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Paid-In Capital | Loss | Deficit | Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 27,810,161 | $ | 3 | $ | 252,908 | $ | (21 | ) | $ | (240,270 | ) | $ | 12,620 | |||||||||||||||||||||||||||||||||||
Issuance of securities in registered offering | 11,797,752 | 1 | 21,107 | — | — | 21,108 | 11,500,000 | 1 | 57,499 | — | — | 57,500 | ||||||||||||||||||||||||||||||||||||
Issuance of securities in private placement | 674,156 | — | 3,000 | — | — | 3,000 | ||||||||||||||||||||||||||||||||||||||||||
Financing cost of sale of securities | — | — | (1,462 | ) | — | — | (1,462 | ) | — | — | (3,703 | ) | — | — | (3,703 | ) | ||||||||||||||||||||||||||||||||
Issuance of common stock for exercise of options | 282 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock -based compensation | — | — | 652 | — | — | 652 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | — | — | — | (16 | ) | — | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for exercise of warrants | 22,560 | — | 110 | — | — | 110 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 581 | — | — | 581 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (17,617 | ) | (17,617 | ) | — | — | — | — | (5,195 | ) | (5,195 | ) | ||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | 27,804,232 | $ | 3 | $ | 251,588 | $ | (7 | ) | $ | (237,310 | ) | $ | 14,274 | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 39,332,721 | $ | 4 | $ | 307,395 | $ | (29 | ) | $ | (245,465 | ) | $ | 61,905 | |||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 938 | — | — | 938 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | (13 | ) | — | (13 | ) | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (5,396 | ) | (5,396 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | 39,332,721 | $ | 4 | $ | 308,333 | $ | (42 | ) | $ | (250,861 | ) | $ | 57,434 | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (10,591 | ) | $ | (25,196 | ) | $ | (38,246 | ) | $ | (10,591 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Depreciation | 73 | 85 | 76 | 73 | ||||||||||||
Stock-based compensation expense | 1,519 | 1,285 | 1,884 | 1,519 | ||||||||||||
Change in fair value of warrant liabilities | (10,852 | ) | 6,889 | 2,296 | (10,852 | ) | ||||||||||
Issuance costs allocated to warrants | — | 2,175 | ||||||||||||||
Net amortization of premium on marketable securities | 212 | 8 | 502 | 212 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
(Increase) decrease in prepaid expenses and other current and non-current assets | (3,759 | ) | 1,230 | |||||||||||||
Increase (decrease) in accounts payable, accrued liabilities and other liabilities | 1,894 | (4,170 | ) | |||||||||||||
Increase in prepaid expenses and other current and non-current assets | (1,283 | ) | (3,759 | ) | ||||||||||||
Increase in accounts payable, accrued and other current liabilities | 8,419 | 1,894 | ||||||||||||||
Net cash used in operating activities | (21,504 | ) | (17,694 | ) | (26,352 | ) | (21,504 | ) | ||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of marketable securities | (44,822 | ) | (37,515 | ) | — | (44,822 | ) | |||||||||
Proceeds from sales and maturities of marketable securities | 18,340 | 9,981 | ||||||||||||||
Proceeds from maturities of marketable securities | 19,247 | 18,340 | ||||||||||||||
Net cash used in investing activities | (26,482 | ) | (27,534 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 19,247 | (26,482 | ) | |||||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from issuance of securities | 57,500 | 55,500 | — | 57,500 | ||||||||||||
Payment of financing costs of securities sold | (3,703 | ) | (3,637 | ) | — | (3,703 | ) | |||||||||
Proceeds from the exercise of warrants | 110 | — | — | 110 | ||||||||||||
Net cash provided by financing activities | 53,907 | 51,863 | — | 53,907 | ||||||||||||
Net increase in cash and cash equivalents | 5,921 | 6,635 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (7,105 | ) | 5,921 | |||||||||||||
Cash and cash equivalents at beginning of period | 15,485 | 24,184 | 16,654 | 15,485 | ||||||||||||
Cash and cash equivalents at end of period | $ | 21,406 | $ | 30,819 | $ | 9,549 | $ | 21,406 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Issuance of warrants to purchase common stock | $ | — | $ | 31,391 |
Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Current: | ||||||||||||||||
Corporate debt | $ | 17,966 | $ | — | $ | (213 | ) | $ | 17,753 |
Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Current: | ||||||||||||||||
Corporate Debt | $ | 46,124 | $ | 3 | $ | (34 | ) | $ | 46,093 | |||||||
Long-term: | ||||||||||||||||
Corporate Debt | 7,172 | — | (11 | ) | 7,161 | |||||||||||
Total | $ | 53,296 | $ | 3 | $ | (45 | ) | $ | 53,254 | |||||||
Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||||
Corporate debt | $ | 27,026 | $ | 6 | $ | (27) | $ | 27,005 | $ | 37,715 | $ | — | $ | (84 | ) | $ | 37,631 |
Fair Value Measurement as of June 30, 2021 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Cash equivalents | $ | 18,048 | $ | — | $ | — | ||||||
Current marketable securities | 46,093 | — | — | |||||||||
Long-term marketable securities | 7,161 | — | — | |||||||||
Warrant liabilities | — | — | 18,552 | |||||||||
Total | $ | 71,302 | $ | — | $ | 18,552 | ||||||
Fair Value Measurement as of June 30, 2022 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Cash equivalents | $ | 6,792 | $ | — | $ | — | ||||||
Marketable securities | 17,753 | — | — | |||||||||
Warrant liabilities | — | — | 4,826 | |||||||||
Total | $ | 24,545 | $ | — | $ | 4,826 | ||||||
Fair Value Measurement as of December 31, 2020 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Cash equivalents | $ | 12,921 | $ | — | $ | — | ||||||
Marketable securities | 27,005 | |||||||||||
Warrant liabilities | — | — | 29,404 | |||||||||
Total | $ | 39,926 | $ | — | $ | 29,404 | ||||||
As of June 30, 2021 | As of December 31, 2020 | |||||||
Expected volatility | 52.0 | % | 59.7 | % | ||||
Remaining contractual term (in years) | 0.08 | 0.58 | ||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | ||||
Expected dividend yield | — | % | — | % |
Fair Value Measurement as of December 31, 2021 | ||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Cash equivalents | $ | 7,734 | $ | — | $ | — | ||||||
Marketable securities | 37,631 | — | — | |||||||||
Warrant liabilities | — | — | 2,530 | |||||||||
Total | $ | 45,365 | $ | — | $ | 2,530 | ||||||
As of June 30, 2021 | As of December 31, 2020 | |||||||
Expected volatility | 67.7 | % | 100.1 | % | ||||
Remaining contractual term (in years) | 1.08 | 1.58 | ||||||
Risk-free interest rate | 0.07 | % | 0.12 | % | ||||
Expected dividend yield | — | % | — | % |
As of June 30, 2022 | As of December 31, 2021 | |||||||
Expected volatility | 146.3 | % | 56.5 | % | ||||
Remaining contractual term (in years) | 0.08 | 0.58 | ||||||
Risk-free interest rate | 1.28 | % | 0.19 | % | ||||
Expected dividend yield | — | % | — | % |
As of June 30, 2021 | As of December 31, 2020 | As of June 30, 2022 | As of December 31, 2021 | |||||||||||||
Expected volatility | 97.5 | % | 111.9 | % | 84.6 | % | 61.9 | % | ||||||||
Remaining contractual term (in years) | 1.92 | 2.42 | 0.92 | 1.42 | ||||||||||||
Risk-free interest rate | 0.25 | % | 0.15 | % | 2.80 | % | 0.56 | % | ||||||||
Expected dividend yield | — | % | — | % | — | % | — | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 23,838 | $ | 5,654 | $ | 29,404 | $ | 6,070 | $ | 6,742 | $ | 23,838 | $ | 2,530 | $ | 29,404 | ||||||||||||||||
Issuance of 2020 Warrants | — | 31,391 | — | 31,391 | ||||||||||||||||||||||||||||
(Decrease) increase in fair value (1) | (5,286 | ) | 7,305 | (10,852 | ) | 6,889 | (1,916 | ) | (5,286 | ) | 2,296 | (10,852 | ) | |||||||||||||||||||
Balance at end of period | $ | 18,552 | $ | 44,350 | $ | 18,552 | $ | 44,350 | $ | 4,826 | $ | 18,552 | $ | 4,826 | $ | 18,552 | ||||||||||||||||
(1) | The change in fair values of the warrant liabilities is recorded in other income |
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Accrued research and development service fees | $ | 2,348 | $ | 801 | $ | 6,011 | $ | 5,641 | ||||||||
Accrued compensation costs | 1,064 | 2,069 | 1,327 | 2,215 | ||||||||||||
Accrued professional fees | 620 | 456 | 1,000 | 819 | ||||||||||||
Accrued facilities operation expenses | 183 | 173 | 144 | 307 | ||||||||||||
Other accrued liabilities | 39 | 111 | ||||||||||||||
Other accrued expenses | 185 | 146 | ||||||||||||||
Total accrued liabilities | $ | 4,254 | $ | 3,610 | ||||||||||||
Total accrued liabilitie s | $ | 8,667 | $ | 9,128 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (5,396 | ) | $ | (17,617 | ) | $ | (10,591 | ) | $ | (25,196 | ) | ||||
Weighted average shares of common stock outstanding | 39,332,721 | 19,991,894 | 34,176,801 | 17,661,968 | ||||||||||||
Net loss per share of common stock – basic and diluted | $ | (0.14 | ) | $ | (0.88 | ) | $ | (0.31 | ) | $ | (1.43 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net loss | $ | (18,089 | ) | $ | (5,396 | ) | $ | (38,246 | ) | $ | (10,591 | ) | ||||
Weighted average shares of common stock outstanding | 39,332,721 | 39,332,721 | 39,332,721 | 34,176,801 | ||||||||||||
Net loss per share of common stock—basic and diluted | $ | (0.46 | ) | $ | (0.14 | ) | $ | (0.97 | ) | $ | (0.31 | ) | ||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Options to purchase common stock | 2,848,693 | 1,917,649 | 4,448,969 | 2,848,693 | ||||||||||||
Warrants to purchase common stock | 12,327,304 | 12,360,430 | 10,925,166 | 12,327,304 | ||||||||||||
Total | 15,175,997 | 14,278,079 | 15,374,135 | 15,175,997 | ||||||||||||
Description | June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | ||||||||||||
Operating lease liabilities: | ||||||||||||||||
Current portion of lease liabilities | $ | 651 | $ | 644 | $ | 664 | $ | 657 | ||||||||
Long-term portion of lease liabilities | $ | 2,788 | $ | 2,959 | $ | 2,414 | $ | 2,609 |
Amount | Amount | |||||||
July 1, 2021 - December 31, 2021 | $ | 340 | ||||||
July 1, 2022 - December 31, 2022 | $ | 347 | ||||||
Year ending December 31: | ||||||||
2022 | 693 | |||||||
2023 | 707 | 707 | ||||||
2024 | 721 | 721 | ||||||
2025 | 736 | 736 | ||||||
2026 | 750 | |||||||
Thereafter | 1,452 | 702 | ||||||
Total lease payments | 4,649 | 3,963 | ||||||
Less: Present value adjustment | (1,210 | ) | (885 | ) | ||||
Operating lease liabilities | 3,439 | $ | 3,078 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Operating lease cost (1) | $ | 154 | $ | 154 | $ | 307 | $ | 307 | $ | 154 | $ | 154 | $ | 307 | $ | 307 | ||||||||||||||||
Variable lease costs (2) | 35 | 24 | 65 | 46 | 42 | 35 | 81 | 65 | ||||||||||||||||||||||||
Total lease cost | $ | 189 | $ | 178 | $ | 372 | $ | 353 | $ | 196 | $ | 189 | $ | 388 | $ | 372 | ||||||||||||||||
(1) | Operating lease payments included in the measurement of the Company’s lease liabilities are comprised of fixed payments according to the terms of the Company’s leases. |
(2) | Variable lease payments consist of the Company’s utility costs billed by and paid to its landlord. Variable lease payments are presented as operating expenses in the Company’s Consolidated Statement of Operations in the same line item as expense arising from fixed lease payments and in net cash used in operating activities in the Company’s Statement of Cash Flows. |
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
Outstanding options to purchase common stock | 2,848,693 | 1,853,841 | 4,448,969 | 2,899,694 | ||||||||||||
Outstanding warrants to purchase common stock | 12,327,304 | 12,350,293 | 10,925,166 | 10,926,594 | ||||||||||||
For future issuance under the 2014 Plan | 128,632 | 41,079 | ||||||||||||||
For future issuance under the 2014 Omnibus Incentive Plan | 116,665 | 77,631 | ||||||||||||||
For future issuance under the 2021 Employment Inducement Plan | 985,000 | 1,000,000 | ||||||||||||||
15,304,629 | 14,245,213 | 16,475,800 | 14,903,919 | |||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | |||||||||||||
2020 Warrants | 8,819,904 | 8,842,464 | 8,819,904 | 8,819,904 | ||||||||||||
2017 Warrants | 1,599,645 | 1,599,645 | 1,599,645 | 1,599,645 | ||||||||||||
2016 Warrants | 1,400,000 | 1,400,000 | ||||||||||||||
Pfizer Warrant | 505,617 | 505,617 | 505,617 | 505,617 | ||||||||||||
Other warrants (1) | 2,138 | 2,567 | — | 1,428 | ||||||||||||
Warrants to purchase common stock | 12,327,304 | 12,350,293 | 10,925,166 | 10,926,594 | ||||||||||||
Weighted-average exercise price per share | $ | 9.14 | $ | 9.14 | $ | 6.45 | $ | 6.47 | ||||||||
(1) | Other warrants are comprised of warrants issued prior to the Company’s initial public offering (“IPO”), generally in exchange for services rendered to the Company. |
Underlying Outstanding Warrants | ||||||
Exercise Prices | Shares Underlying Outstanding Warrants | Expiration Date | ||||
$4.90 | 9,325,521 | May 27, 2023 | ||||
$15.50 | 1,599,645 | July 25, 2022 | ||||
10,925,166 | ||||||
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||||||||||||||||||
Options outstanding at December 31, 2020 | 1,853,841 | $ | 14.33 | |||||||||||||||||||||||||||||
Options outstanding at December 31, 2021 | 2,899,694 | $ | 9.12 | |||||||||||||||||||||||||||||
Granted | 1,100,000 | 4.35 | 1,674,000 | 3.33 | ||||||||||||||||||||||||||||
Exercised | 0 | 0 | — | — | ||||||||||||||||||||||||||||
Expired | (95,336 | ) | 45.96 | (36,788 | ) | 12.10 | ||||||||||||||||||||||||||
Forfeited | (9,812 | ) | 6.50 | (87,937 | ) | 4.54 | ||||||||||||||||||||||||||
Options outstanding at June 30, 2021 | 2,848,693 | 9.44 | 8.28 | $ | 305,101 | |||||||||||||||||||||||||||
Options outstanding at June 30, 2022 | 4,448,969 | 7.01 | 8.46 | $ | — | |||||||||||||||||||||||||||
Vested and exercisable at June 30, 2021 | 1,155,624 | 14.88 | 6.86 | $ | 72,436 | |||||||||||||||||||||||||||
Vested and exercisable at June 30, 2022 | 1,972,774 | 10.54 | 6.97 | $ | — | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Risk free interest rate | 0.85 | % | 0.33 | % | 0.84 | % | 1.17 | % | 2.94 | % | 0.85 | % | 2.15 | % | 0.84 | % | ||||||||||||||||
Expected dividend yield | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Expected term (in years) | 5.97 | 5.86 | 5.98 | 6.03 | 5.52 | 5.97 | 5.95 | 5.98 | ||||||||||||||||||||||||
Expected volatility | 94.3 | % | 97.1 | % | 94.5 | % | 94.5 | % | 91.0 | % | 94.3 | % | 91.2 | % | 94.5 | % |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Product development | $ | 6,418 | $ | 3,726 | $ | 12,128 | $ | 7,980 | $ | 14,458 | $ | 6,418 | $ | 25,017 | $ | 12,128 | ||||||||||||||||
Personnel related | 2,085 | 1,011 | 3,913 | 2,026 | 2,418 | 2,085 | 4,809 | 3,913 | ||||||||||||||||||||||||
Professional fees | 918 | 1,116 | 1,822 | 1,807 | 1,110 | 918 | 2,135 | 1,822 | ||||||||||||||||||||||||
External research and licensing costs | 727 | 202 | 758 | 321 | ||||||||||||||||||||||||||||
Laboratory costs | 377 | 311 | 699 | 628 | 530 | 377 | 1,089 | 699 | ||||||||||||||||||||||||
Stock-based compensation | 295 | 163 | 446 | 327 | 267 | 295 | 530 | 446 | ||||||||||||||||||||||||
External research and licensing costs | 205 | 727 | 247 | 758 | ||||||||||||||||||||||||||||
Expenses reimbursed by grants | (3,043 | ) | (985 | ) | (3,968 | ) | (2,441 | ) | (2,228 | ) | (3,043 | ) | (4,342 | ) | (3,968 | ) | ||||||||||||||||
Total research and development expense | $ | 7,777 | $ | 5,544 | $ | 15,798 | $ | 10,648 | $ | 16,760 | $ | 7,777 | $ | 29,485 | $ | 15,798 | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Exebacase | $ | 4,208 | $ | 3,813 | $ | 9,541 | $ | 7,510 | $ | 12,096 | $ | 4,208 | $ | 22,484 | $ | 9,541 | ||||||||||||||||
CF-370 | 1,597 | 375 | 2,143 | 608 | 3,314 | 1,597 | 4,265 | 2,143 | ||||||||||||||||||||||||
Other research and development | 2,635 | 1,167 | 3,723 | 2,618 | 892 | 2,635 | 1,738 | 3,723 | ||||||||||||||||||||||||
Personnel related and stock-based compensation | 2,380 | 1,174 | 4,359 | 2,353 | 2,686 | 2,380 | 5,340 | 4,359 | ||||||||||||||||||||||||
Expenses reimbursed by grants | (3,043 | ) | (985 | ) | (3,968 | ) | (2,441 | ) | (2,228 | ) | (3,043 | ) | (4,342 | ) | (3,968 | ) | ||||||||||||||||
Total research and development expense | $ | 7,777 | $ | 5,544 | $ | 15,798 | $ | 10,648 | $ | 16,760 | $ | 7,777 | $ | 29,485 | $ | 15,798 | ||||||||||||||||
Three Months Ended June 30, | Dollar Change | Six Months Ended June 30, | Dollar Change | Three Months Ended June 30, | Dollar Change | Six Months Ended June 30, | Dollar Change | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 7,777 | $ | 5,544 | $ | 2,233 | $ | 15,798 | $ | 10,648 | $ | 5,150 | $ | 16,760 | $ | 7,777 | $ | 8,983 | $ | 29,485 | $ | 15,798 | $ | 13,687 | ||||||||||||||||||||||||
General and administrative | $ | 2,935 | $ | 2,619 | $ | 316 | $ | 5,700 | $ | 5,579 | $ | 121 | $ | 3,266 | $ | 2,935 | $ | 331 | $ | 6,520 | $ | 5,700 | $ | 820 | ||||||||||||||||||||||||
Other income (expense), net | $ | 5,316 | $ | (9,454 | ) | $ | 14,770 | $ | 10,907 | $ | (8,969 | ) | $ | 19,876 | ||||||||||||||||||||||||||||||||||
Other income (expense) | $ | 1,937 | $ | 5,316 | $ | (3,379 | ) | $ | (2,241 | ) | $ | 10,907 | $ | (13,148 | ) |
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Net cash (used in) provided by: | ||||||||||||||||
Operating activities | $ | (21,504 | ) | $ | (17,694 | ) | $ | (26,352 | ) | $ | (21,504 | ) | ||||
Investing activities | $ | (26,482 | ) | $ | (27,534 | ) | $ | 19,247 | $ | (26,482 | ) | |||||
Financing activities | $ | 53,907 | $ | 51,863 | $ | — | $ | 53,907 |
* | Filed herewith |
** | Furnished herewith |
ContraFect Corporation | ||||
Date: August | By: | /s/ Roger J. Pomerantz, M.D., F.A.C.P. | ||
Roger J. Pomerantz, M.D., F.A.C.P. | ||||
President and Chief Executive Officer | ||||
Date: August | By: | /s/ Michael Messinger | ||
Michael Messinger | ||||
Chief Financial Officer (Principal Financial Officer) |