Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

As of November ~~10, 2021,~~8, 2022, the registrant had ~~45,380,354~~45,665,428 shares of common stock, $0.00001 par value per share, outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical facts contained in this Quarterly Report on Form10-Q, including statements regarding our future results of operations and financial position, business strategy, development plans, planned preclinical studies and clinical trials, future results of clinical trials, expected research and development costs, regulatory strategy, timing and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “would,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate and financial trends that we believe may affect our business, financial condition, results of operations and prospects, and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described in the section titled “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021, as well as in this Quarterly Report on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you are cautioned not to unduly rely upon these statements.

The accompanying notes are an integral part of these unaudited condensed financial statements.

Condensed Statements of ~~Convertible Preferred Stock and~~ Stockholders’ ~~(Deficit)~~ Equity

~~The accompanying notes are an integral part of these unaudited condensed financial statements~~

The accompanying notes are an integral part of these unaudited condensed financial statements.

1. Formation and Business of the Company

Organization and Liquidity

PMV Pharmaceuticals, Inc. (the “Company” or “We”) was incorporated in the state of Delaware in March 2013. Since inception, the Company has devoted substantially all of its time and efforts to performing research and development activities and raising capital. ~~The Company is~~We are a ~~clinical-stage~~precision oncology company pioneering the discovery and development of small molecule, ~~tumor agnostic~~tumor-agnostic therapies ~~designed to target p53 mutations.~~targeting p53. The Company’s headquarters are ~~currently~~ located inat 8 Clarke Drive, Suite 3, Cranbury, New Jersey.

The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry including, but not limited to, technical risks associated with the successful research, development and manufacturing of product candidates, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Current and future programs will require significant research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel, and infrastructure. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

On September 25, 2020, the Company completed an initial public offering (the “IPO”) of 13,529,750 shares of common stock, at a public offering price of $18.00 per share including the exercise in full by the underwriters of their option to purchase up to 1,764,750 additional shares of commons stock, for aggregate gross proceeds of $243,536 and its shares started trading on The Nasdaq Global Select Market under the ticker symbol “PMVP.” The Company received $223,161 in net proceeds after deducting underwriting discounts and commissions and other offering expenses payable by the Company. In connection with the closing of the IPO, all of the Company’s outstanding shares of convertible preferred stock outstanding at the time of the IPO automatically converted into 28,188,110 shares of common stock. On September 18, 2020, the Company amended its certificate of incorporation to effect a 5.2651-for-1 reverse stock split of its issued and outstanding common and convertible preferred stock. The accompanying unaudited condensed financial statements and related notes give retroactive effect to the reverse stock split for all periods presented.

The Company has incurred net losses and negative cash flows from operations since its inception. During the three and nine months ended September 30, ~~2021,~~2022, the Company incurred a net loss of ~~$15,011~~$18,229 and ~~$39,487,~~$53,972, respectively. For the nine months ended September 30, ~~2021,~~2022, the Company used ~~$34,543~~$48,436 of cash for operations. At September 30, ~~2021,~~2022, the Company had an accumulated deficit of ~~$149,367.~~$221,698. Cash, cash equivalents, and ~~restricted cash at~~marketable securities were $258,857 as of September 30, ~~2021 were $177,463. Short and long term marketable securities totaled $149,611 at September 30, 2021.~~2022. Management expects to incur substantial additional operating losses for the next several years and ~~will~~may need to obtain additional debt or equity financings in order to complete development of its products, obtain regulatory approvals, launch and commercialize its products and continue research and development programs. The Company believes it has adequate cash, ~~and~~ cash equivalents, and marketable securities to operate for at least the next twelve months from the date of issuance of these ~~unaudited condensed~~ financial statements.

2. Summary of Significant Accounting Policies

The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended December 31, ~~2020,~~2021, included in the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”) on March ~~3, 2021.~~1, 2022. Since the date of those financial statements, there have been no changes to its significant accounting ~~policies except as noted below.~~policies.

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the interim period reporting requirements of Form 10-Q and Article 10 of Regulation S-X. The condensed balance sheet as of September 30, ~~2021,~~2022, the condensed statements of operations and comprehensive loss, and condensed statements of ~~convertible preferred stock and~~ stockholders’ ~~(deficit)~~ equity for the three and nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, and the condensed statements of cash flows for the nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 are unaudited, but, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for any interim

period are not necessarily indicative of results for the year ending December 31, ~~2021~~2022, or for any other subsequent interim period. The condensed balance sheet atas of December 31, ~~2020~~2021, has been derived from our audited financial statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience when available and on various factors that it believes to be

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)

reasonable under the circumstances. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, ~~the fair values of common stock, convertible preferred stock~~research and development costs, accrued research and development costs and related prepaid expenses and stock-based compensation. Actual results could differ materially from those estimates.

~~Reverse Stock Split~~

In September 2020, the Company’s board of directors and stockholders approved an amendment to the Company’s amended and restated certificate of incorporation to affect a 5.2651-for-1 reverse stock split of the Company’s common stock and convertible preferred stock, which was effected on September 18, 2020. The par value of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all common stock, convertible preferred stock, stock options, and related per share amounts in these unaudited condensed financial statements have been retroactively adjusted for all periods presented to give effect to the reverse stock split.

Cash, Cash Equivalents and Marketable Securities

Management considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

The Company’s marketable debt securities have been classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term. ~~As of September 30, 2021, the company’s long-term marketable debt securities have maturity dates no more than 2 years.~~ The Company’s marketable debt securities are carried at fair value, with unrealized gains and losses, net of taxes, reported as a component of accumulated other comprehensive loss in stockholders’ ~~deficit.~~equity. Premiums and discounts on marketable debt securities are amortized into earnings over the life of the ~~security.~~security and recorded on the interest income, net line of the income statement. For the three months ended September 30, ~~2021~~2022 and ~~2020,~~2021, the Company recorded ~~$127~~$228 and $6$127 of amortization, respectively. For the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, the Company recorded ~~$459~~$102 of accretion and ~~$152~~$459 of amortization, respectively.

Restricted cash as of September 30, ~~2021~~2022, included a ~~$822~~$822 deposit at the Company’s commercial bank underlying a stand-by letter of credit issued in favor of a landlord (See Note 6) and is classified in current assets.

Comprehensive Loss

The Company presents comprehensive loss in a single statement within its financial statements. Other comprehensive loss consists of unrealized gains and losses on marketable securities, net of tax.

Leases

~~Leases~~

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the circumstances present. The Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines the initial classification and measurement of its operating right-of-use (“ROU”) assets and operating lease liabilities at the lease commencement date, and thereafter if modified. The lease term includes any renewal options that the Company is reasonably ~~assured~~certain to exercise. The Company’s policy is to not record leases with a lease term of 12 months or less on its balance sheets. The Company’s only existing leases are for office and laboratory space.

The ROU asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its estimated secured incremental borrowing rate for that lease term.

Lease expense for operating leases is recognized on a straight-line basis over the reasonably assured lease term based on the total lease payments and is included in operating expense in the statements of operations.

Payments due under each lease agreement include fixed and variable payments. Variable payments relate to the Company’s share of the lessor’s operating costs associated with the underlying asset and are recognized when the event on which those payments are assessed occurs. Variable payments have been excluded from the lease liability and associated right-of-use asset. Neither of the Company’s leases contain residual value guarantees.

The interest rate implicit in lease agreements is typically not readily determinable, and as such, the Company utilizes the incremental borrowing rate to calculate lease liabilities, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

~~Recently Issued and Adopted Accounting Pronouncements~~

~~In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02,~~ ~~Leases~~ (Topic 842), as amended by multiple standards updates, in order to increase transparency and comparability among organizations by requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The most significant change arising from the new standard is the recognition of right of use assets and lease liabilities for leases classified as operating leases. The right-of-use lease liability for operating leases is based on the net present value of future minimum lease payments. Additionally, the right-of-use asset for operating leases is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as the long term portion of straight line rent liability and deferred lease incentives. Under the standard, disclosures are required to enable financial statement users to assess the amount, timing, and uncertainty of cash flows arising from the leases. Companies are also required to recognize and measure leases existing at, or entered into after, the adoption date using a modified retrospective approach, with certain practical expedients available. Comparative periods prior to adoption have not been retrospectively adjusted.

The Company adopted the standard effective January 1, 2021 using the modified retrospective transition method. Upon adoption, the Company applied the package of practical expedients that allows an entity to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. The Company elected the practical expedient not to apply the recognition requirements to short-term leases, defined as a lease that at the commencement date has a lease term of 12 months or less that does not include a purchase option to purchase the underlying asset that the Company is reasonably certain to exercise. Furthermore, the Company has elected the practical expedient to not separate lease and non-lease components by class of underlying asset for its existing leases. As the Company enters into new leases, it will continue to evaluate this accounting policy for any new classes of underlying assets.

~~Upon adoption, the Company recorded ROU assets of $970 and lease liabilities of $1,129. The standard did not have a material impact on the statement of operations or statement of cash flows.~~

In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The new guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company adopted this standard as of January 1, 2021. The adoption did not have a material impact on the Company’s financial statements.

Concentration of Credit Risk and Other Risks and Uncertainties

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents and marketable securities. Cash and cash equivalents include a checking account and a money market account

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)

held at one financial institution. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company’s marketable debt securities are carried at fair value and include any unrealized gains and losses. Any investments with unrealized losses are considered to be temporarily impaired.

The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, rapid technological change, uncertainty of market acceptance of the product, competition from substitute products and larger companies, protection of proprietary technology, any future strategic relationships and dependence on key individuals.

Products developed by the Company require clearances from the U.S. Food and Drug Administration or other international regulatory agencies prior to commercial sales. There can be no assurance the Company’s product candidates will receive the necessary clearances. If the Company is denied clearance, clearance is delayed or it is unable to maintain clearance, it could have a materially adverse impact on the Company.

In January 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a “Public Health Emergency of International Concern,” which continues to spread throughout the world. The outbreak has adversely impacted global commercial activity and contributed to significant volatility in financial markets. The COVID-19 outbreak and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The Company continues to monitor the impact of the COVID-19 outbreak closely. The full extent to which the COVID-19 outbreak will impact its operations or financial results remains uncertain.

The Company’s financial assets consist of money market funds, U.S. government debt securities and corporate debt securities. The following tables show the Company’s cash equivalents and available-for-sale securities’ carrying amounts and fair values ~~at September 30, 2021 and December 31, 2020:~~

As of September 30, 2021

Carrying
Amount

Fair
Value

Quoted
priced in
active
markets
(Level 1)

Significant
other
observable
inputs
(Level 2)

Significant
unobservable
inputs
(Level 3)

Financial assets

Money market funds

$
37,191

$
37,191

$
37,191

$
—

$
—

Corporate securities

255,428

255,428

—

255,428

—

Government securities

31,683

31,683

—

31,683

—

Total financial assets

$
324,302

$
324,302

$
37,191

$
287,111

$
—

As of December 31, 2020

Carrying
Amount

Fair
Value

Quoted
Priced in
Active
Markets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Financial assets

Money market funds

$
240,033

$
240,033

$
240,033

$
—

$
—

Corporate securities

120,008

120,008

—

120,008

—

Total financial assets

$
360,041

$
360,041

$
240,033

$
120,008

$
—

~~Cash Equivalents~~ ~~— Cash equivalents of $174,691~~ as of September 30, ~~2021~~2022, and December 31, 2021:


	As of September 30, 2022
	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Quoted priced in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets
Money market funds	$	74,369	$	—	$	—		$	74,369	$	74,369	$	—	$	—
Corporate securities		122,320		—		(533	)		121,787		—		121,787		—
Government securities		61,691		—		(492	)		61,199		28,051		33,148		—
Total financial assets	$	258,380	$	—	$	(1,025	)	$	257,355	$	102,420	$	154,935	$	—


	As of December 31, 2021
	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Quoted Priced in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Money market funds	$	40,960	$	—	$	—		$	40,960	$	40,960	$	—	$	—
Corporate securities		227,378		3		(19	)		227,362		—		227,362		—
Government securities		42,307		—		(62	)		42,245		—		42,245		—
Total financial assets	$	310,645	$	3	$	(81	)	$	310,567	$	40,960	$	269,607	$	—

Cash Equivalents — As of September 30, 2022, the Company had cash of $1,502 and cash equivalents of $98,348. Cash equivalents consisted of money market funds of ~~$37,191 and~~$74,369 corporate debt securities of ~~$137,500. Cash equivalents~~$4,979 and government securities of ~~$360,041 as~~$19,000. As of December 31, ~~2020~~2021, the Company had cash of $3,508 and cash equivalents of $168,960. Cash equivalents consisted of money market funds of ~~$240,033~~$40,960 and corporate debt securities of ~~$120,008.~~$128,000. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets, whereas corporate debt securities are classified within level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are observable for the asset or liability either directly or indirectly.

Marketable Securities — Marketable securities of ~~$149,611~~$159,007 as of September 30, 2022, consisted of corporate debt securities of $116,808 and government debt securities of $42,199. There were $159,007 current marketable securities and no noncurrent marketable securities as of September 30, 2022. Marketable securities of $141,607 as of December 31, 2021, consisted of corporate debt securities of ~~$117,928~~$99,362 and government debt securities of ~~$31,683.~~$42,245. There were ~~$131,010~~$124,696 current marketable securities and ~~$18,601~~$16,911 noncurrent ~~marketable securities as of September 30, 2021. There were 0~~ marketable securities as of December 31, ~~2020.~~2021.

As of September 30, 2022, and December 31, 2021, aggregated gross unrealized losses of available-for-sale investments were not material, and accordingly, no allowance for credit losses was recorded.

Depreciation expense for the three months ended September 30, 2022 and 2021 was $74and ~~2020 was $80 and $75,~~$80, respectively. Depreciation expense for the nine months ended September 30, 2022 and 2021 was $240and ~~2020 was $230 and $257,~~$230, respectively.

5. Accrued Expenses

Accrued expenses consist of the following:


	September 30, 2021		December 31, 2020		September 30, 2022		December 31, 2021
Accrued compensation	$	2,882	$	3,109	$	2,960	$	3,797
Accrued legal and professional services		214		—		81		—
Accrued research and development costs		3,554		1,595		3,352		4,734
Other accrued liabilities		90		99		43		96
Total	$	6,740	$	4,803	$	6,436	$	8,627

6. Commitments and Contingencies

Operating Leases

In June 2015, the Company executed a noncancelable operating lease for approximately 13,000 square feet of laboratory, research and development, and office space in Cranbury, New Jersey for an initial base rent of ~~$20.00~~$20.00 per square foot. This location operates as the Company’s current headquarters.

In June 2017, the Company obtained an additional noncancelable operating lease for about 6,000 square feet of laboratory space in the same corporate center at an initial rental rate at ~~$22.00~~$22.00 per square foot. As a result of the additional space, both leases ~~will expire~~ expired June 2022. In January 2022, the Company signed a lease extension for both leases for up to one additional year with the option to terminate upon 120 days of written notice, with an ~~option to renew for an additional~~ increase in base rent as per the lease extension.~~five-year~~ ~~term.~~ Both leases include a common area maintenance expense for ~~$3.00~~$3.00 per square foot with an increase of 3% on the first month of each calendar year during the lease term and a management fee of 3%3% of the base rent. The Company is obligated to pay, on a pro-rata basis, real estate taxes and operating costs related to the premises.

In August 2018, the Company executed 2two noncancelable operating leases. One lease for approximately 6,000 square feet for vivarium, laboratory and general office space in South Brunswick, New Jersey. The initial annual base rent is ~~$15.50~~$15.50 per square foot and a management fee of 3%3% of the base rent. The Company is obligated to pay, on a pro-rata basis, insurance premiums, real estate taxes and operating costs related to the premises. The lease ~~expires~~expired in July 2022. In January 2022, the Company signed a lease extension for up to one additional year with the option to terminate upon 120 days of written notice, with an ~~option for additional~~ increase in base rent as per the lease extension.~~five-year~~ ~~term.~~ The second lease is for office space in Lexington, Massachusetts, that expires August 2023, with an option to renew for a one-time, three-year extension. The initial annual base rent is ~~$28.50~~$28.50 per square foot and will increase ~~$1.00~~$1.00 per square foot at the end of each rent year.

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)

In 2018, the ~~company~~Company received a lease incentive for the buildout of 420 Bedford Street in Lexington, MA. The Company was given an allowance for ~~$165~~$165 on behalf of the lessor for construction of office space. Management recognizes this allowance as a lease incentive in its Right-of-Use asset and straight-lines the allowance throughout the term of the lease. As of September 30, ~~2021,~~2022, the remaining rent incentive pertaining to the Lexington, MA lease totaled ~~$73.~~$35.

In January 2021, the Company signed a lease for 50,581 square feet of office and laboratory space at One Research Way in Princeton, New Jersey. ~~The Company intends to complete the relocation of their headquarters from Cranbury, NJ to One Research Way in Princeton NJ in early 2022.~~ That lease term extends through 2032, has a five-year extension option, and is intended to replace ~~our~~the Company’s two existing facilities and the space is expected to become the Company’s future ~~headquarters.~~headquarters. Payment under this lease will total ~~$19.6 million~~$19,889 through May ~~2032.~~2032. The Company received a lease incentive of ~~$4.1 million~~

$4,046from the lessor for a buildout of laboratory, vivarium, and office space, to be reimbursed to the Company in ~~2021 and~~ 2022. Management estimated the timing and amounts of reimbursements and included them as a reduction of lease payments when initially measuring the lease liability and right-of-use asset upon commencement. As of September 30, ~~2021, 0~~2022, $1,612 of reimbursements were received.

The components of lease cost for the three and nine months ended September 30, 2022, and 2021, are as ~~follows:~~follows, in thousands:

(in thousands)	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021

					Three Months Ended September 30,				Nine Months Ended September 30,
					2022		2021		2022		2021
Operating lease cost	$	511	$	1,180	$	578	$	511	$	1,619	$	1,180
Variable lease cost		158		470		247		158		643		470
Total lease cost	$	669	$	1,650	$	825	$	669	$	2,262	$	1,650

Amounts reported in the balance sheet for leases where the Company is the lessee as of September 30, 2022, and December 31, 2021, ~~were~~are as follows, in thousands:


Operating Leases:	Nine Months Ended September 30, 2021			September 30, 2022			December 31, 2021
Right-of-use assets, operating leases	$	10,410		$	9,535		$	10,060

Operating lease liabilities, current	$	545		$	394		$	403
Operating lease liabilities, non-current		10,667			12,135			10,790
Total operating lease liabilities	$	11,212		$	12,529		$	11,193

Weighted-average remaining lease term (years)		10.12			9.38			10.02
Weighted-average discount rate		5.75	%		5.75	%		5.75	%

Other information related to leases for the nine months ended September 30, 2022 and 2021, isrespectively, as follows, in thousands:

Cash paid for amounts included in the measurement of lease liabilities

$
535

Leased assets obtained in exchange for new operating lease liabilities

10,314


	Nine Months Ended September 30,
	2022			2021
Net cash paid (received) for amounts included in the measurement of lease liabilities	$	(242	)	$	535
Leased assets obtained in exchange for new or modified operating lease liabilities		581			10,314

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)

Future minimum lease payments, net of reimbursements, remaining as of September 30, ~~2021~~2022, under operating leases by fiscal year were as follows, in thousands:


Fiscal year
2021	$	(264	)
2022		(2,164	)	$	(1,925	)
2023		1,833			1,908
2024		1,814			1,814
2025		1,869			1,869
2026					1,925
Thereafter		13,402			11,477
Total minimum lease payments	$	16,490		$	17,068
Less: Amounts representing imputed interest		(5,278	)		(4,539	)
Present value of lease liabilities	$	11,212		$	12,529

Rent expense recorded during the three months ended September 30, 2022 and 2021 was $578and ~~2020 was $511 and $118,~~$511, respectively. Rent expense recorded during the nine months ended September 30, 2022 and 2021 was $1,619and ~~2020 was $1,180 and $444,~~$1,180, respectively.

The ~~company~~Company currently subleases the office space at 420 Bedford Street in Lexington, MA to another company. This sublease agreement expires in August, ~~2023.~~2023. In April 2021, the company entered into a sublease agreement with the previous tenants of the office space at ~~One~~1 Research Way in Princeton, NJ, to begin April 2021 and end ~~July 2021. As of~~June 2021. Sublease income recorded during the three months ended September 30, 2022 and 2021 ~~sublease~~was $29 and $29, respectively. Sublease income ~~for~~recorded during the ~~Company was $29 and $89 for the three and~~ nine months ended September 30, 2022 and 2021 was $83 and $89, respectively.

Contingencies

~~Contingencies~~

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when future expenditures are probable and such expenditures can be reasonably estimated.

~~Commitments~~

~~At September 30, 2021, there were 0 purchase commitments with third-party suppliers.~~

7. Stockholders’ Equity

The Company is authorized to issue up to 1,000,000,000 shares of common stock with a par value of ~~$0.00001~~$0.00001 per share and 5,000,000 shares of preferred stock with a par value of ~~$0.00001~~$0.00001 per share. At September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, there were ~~45,352,207~~45,624,860 and ~~44,777,818~~45,433,684 shares of common stock issued and outstanding, ~~respectively, and 0 shares of preferred stock issued and outstanding.~~respectively.

Common stockholders are entitled to receive dividends if and when declared by the board of directors subject to the rights of any preferred stockholders. As of September 30, ~~2021, 0~~2022, no dividends on common stock had been declared by the Company.

8. Stock Plan

2020 Equity Incentive Plan

The 2020 Equity Incentive Plan (the “2020 Plan”) was approved by the board of directors on September 24, 2020. The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, directors, and consultants. The number of shares of common stock initially reserved for issuance under the 2020 Plan is 4,406,374, which shall be increased, upon approval by the board of directors, on January 1, 2021 and each January 1 thereafter, in an amount equal to the least of (i) 4,406,374 shares of common stock, (ii) five percent (~~(5%~~5%) of the outstanding common stock on the immediately preceding December 31,, or (iii) such number of common stock determined by the board of directors no later than the immediately preceding December 31. For ~~2021,~~2022, the board of directors exercised its discretion under clause (iii) to increase the number of shares of common stock reserved for issuance under the 2020 Plan by a lesser amount of ~~1,343,334~~1,363,084 shares, effective as of January 1, ~~2021.~~2022. As of September 30, ~~2021,~~2022, there were ~~3,699,920~~4,727,364 shares available for issuance under the 2020 Plan.

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)

On September 9, 2022, the Company granted 374,899 Restricted Stock Units (RSUs) to employees pursuant to an employee retention program approved by the Board's compensation committee. The RSU's have graded vesting on an annual basis for two years of continuous service, as per the 2020 Plan.

2020 Employee Stock Purchase Plan

The 2020 Employee Stock Purchase Plan (the “2020 ESPP”) was approved by the board of directors on September 24, 2020. A total of 400,572 shares of common stock were initially reserved for issuance under this plan, which shall be increased, upon approval by the board of directors, on January 1, 2021 and each January 1 thereafter, to the lesser of (i) 801,504 shares of common stock, (ii) 1%1% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the board of directors or any of its committees no later than the last day of the immediately preceding fiscal year. For ~~2021,~~2022, the board waived the increase to the shares reserved under the 2020 ~~ESPP reserved shares were increased under clause (ii) by 447,778 shares, effective as of January 1, 2021.~~ESPP. On May 20, ~~2021,~~2022, employees exercised their right to purchase ~~36,586~~18,454 shares under the 2020 ESPP. As of September 30, ~~2021, 36,586~~2022, 65,520 shares are issued or outstanding, and there were ~~811,944~~801,464 shares available for issuance, under the 2020 ESPP.

~~2013 Equity Incentive Plan~~

In 2013, the Company adopted the 2013 Stock Plan (the “2013 Plan”). On September 24, 2020, this plan was replaced by the 2020 Plan, and future issuances of incentive instruments will be governed by that plan. Subject to the provisions of the 2020 Plan, the Company had the option to either forfeit or repurchase remaining shares under the 2013 Equity Incentive Plan on or after the registration date. The Company chose to forfeit the remaining shares.

~~Stock-Based Compensation~~

Stock Options

The following table summarizes option activity for the nine-month period ended September 30, ~~2021:~~2022:

				Options Outstanding
									Weighted-							Options Outstanding
							Weighted		Average		Aggregate										Weighted-
	Shares						Average		Remaining		Intrinsic								Weighted		Average		Aggregate
	Available			Number of			Exercise		Contractual Life		Value		Shares						Average		Remaining		Intrinsic
	for Grant			Options			Price		(in years)		(in 000s)		Available			Number of			Exercise		Contractual Life		Value
Balances, December 31, 2020		4,609,725			4,090,970		$	3.14		7.13	$	238,792
Options retired under 2013 Equity Plan		(237,542	)		—
													for Grant			Options			Price		(in years)		(in 000s)
Balances at December 31, 2021														4,951,680			4,246,007		$	8.22		6.86	$	68,506
Shares reserved for issuance														1,363,084			—			—
Options granted		(715,380	)		715,380		$	30.03						(1,296,797	)		1,296,797		$	16.28
RSU's granted														(374,899	)		—			—
Options forfeited / cancelled		43,117			(43,117	)	$	6.77						84,296			(84,296	)	$	19.08
Options exercised		—			(537,803	)	$	2.17						—			(172,722	)	$	1.08
Balances September 30, 2021		3,699,920			4,225,430		$	7.78		7.00	$	94,079
At September 30, 2021
Balances at September 30, 2022 (unaudited)														4,727,364			5,285,786		$	10.23		6.89	$	28,402
At September 30, 2022
Vested and expected to vest					4,225,430		$	7.78		7.00	$	94,079					5,285,786		$	10.23		6.89	$	28,402
Exercisable					2,574,442		$	2.91		5.84	$	69,247					3,221,232		$	6.37		5.71	$	24,664

At September 30, ~~2021,~~2022, the total compensation cost related to nonvested awards not yet recognized is ~~$15,952.~~$22,378. The weighted-average period over which the nonvested awards is expected to be recognized is ~~3.2~~3.0 years.

The Company estimated the fair value of the options using the Black-Scholes options valuation model. The fair value of the options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value was estimated using the following assumptions:


	Nine Months Ended	Year Ended	Nine Months Ended		Nine Months Ended
	September 30,	December 31,	September 30,		September 30,
	2021	2020	2022		2021
Risk-free interest rate	0.35% - 1.22%	0.31% - 1.51%		1.48% - 3.42%		0.35% - 1.22%
Expected life (in years)	5.50 - 6.43	4.92 - 6.40		5.50 - 6.44		5.50 - 6.43
Dividend yield	0%	0%		0%		0%
Expected volatility	79.00-79.90%	70.70% - 77.60%		77.00%-81.00%		79.00-79.90%

The weighted average assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows:

	~~Nine Months Ended~~
	~~September 30,~~
	~~2021~~
~~Risk-free interest rate~~	~~0.02%~~
~~Expected life (in years)~~	~~0.5~~
~~Dividend yield~~	0%
~~Expected volatility~~	~~79.00%~~

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and per share amounts)


	Nine Months Ended		Nine Months Ended
	September 30,		September 30,
	2022		2021
Risk-free interest rate		1.57%		0.02%
Expected life (in years)		0.49		0.50
Dividend yield		0%		0%
Expected volatility		77.00%		79.00%

Expected Term: The Company uses the simplified method to calculate expected term described in the SEC’s Staff Accounting Bulletin No. 107, which takes into account vesting term and expiration date of the options.

Volatility: Volatility is based on an average of the historical volatilities of comparable publicly traded companies for the expected term.

Risk Free Interest Rate: The risk-free rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding with the expected term of the option.

Dividend Yield: The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and therefore, used an expected dividend yield of 0zero in the valuation model.

Stock-based compensation expense recorded under ASC 718 related to stock options granted ~~was~~and common stock issued under the 2020 ESPP were allocated to research and development and general and administrative expense as follows:


	For the Three Months Ended				For the Nine Months Ended				For the Three Months Ended				For the Nine Months Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2021		2020		2021		2020		2022		2021		2022		2021
Research and development	$	449	$	288	$	983	$	607	$	836	$	449	$	2,293	$	983
General and administrative		1,347		382		2,590		742		1,612		1,347		4,850		2,590
Total stock-based compensation	$	1,796	$	670	$	3,573	$	1,349	$	2,448	$	1,796	$	7,143	$	3,573

~~9. Income Taxes~~

Stock-based compensation expense by award type included within the condensed consolidated statements of operations is as follows:

~~During~~


	For the Three Months Ended				For the Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2022		2021		2022		2021
Stock options	$	2,290	$	1,687	$	6,862	$	3,260
Restricted stock units		103		—		103		—
Employee stock purchase plan		55		109		178		313
Total stock-based compensation	$	2,448	$	1,796	$	7,143	$	3,573

Restricted Stock Units

The following table presents RSU activity under the 2020 Plan as of September 30, 2022:


	Number of Stock Units		Weighted-Average Grant Date Fair Value
Unvested shares at December 31, 2021		—	$	—
Granted		374,899		13.6
Unvested shares at September 30, 2022		374,899	$	13.6

Compensation expense totaling $103 was recognized for the RSUs for the three ~~months ended September 30, 2021~~ and ~~2020 and the~~ nine months ended September 30, ~~2021~~2022.

As of September 30, 2022, there was $5,004 of unrecognized compensation cost related to RSUs that are expected to vest. These costs are expected to be recognized over a weighted average remaining vesting period of 2.0 years.

PMV Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

(in thousands, except share and ~~2020,~~per share amounts)

9. Income Taxes

During the three and nine months ended September 30, 2022 and 2021, the Company recorded a full valuation allowance on federal and state deferred tax assets since management does not forecast the Company to be in a taxable position in the near future.

10. Net Loss per Share

~~The Company’s convertible preferred stock does not participate in losses.~~ The Company excluded all outstanding stock options and restricted stock awards at each period end from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect.

The following common stock equivalents were excluded from the calculation of diluted net loss per share:

For the Three
Months Ended

For the Nine
Months Ended

September 30,
2021

September 30,
2020

September 30,
2021

September 30,
2020

Net loss

$
(15,011
)

$
(8,764
)

$
(39,487
)

$
(23,986
)
Weighted-average number of shares - basic and diluted

45,295,232

6,022,457

45,052,100

4,045,527

Net loss per share - basic and diluted

$
(0.33
)

$
(1.46
)

(0.88
)

(5.93
)


	As of September 30,
	2022		2021
Options to purchase common stock		5,285,786		4,225,430
Unvested restricted common stock units		374,899		—
Unvested employee stock purchase plan shares		801,464		811,944
Total		6,462,149		5,037,374

11. Related Parties

The Company has consulting agreements with 2two members of its board of ~~directors. The total~~directors; one of which waived his consulting fees as of September 2021. Total consulting fees paid in each of the three months ended September 30, 2022 and 2021, were $19.7and ~~2020 were $29 and $28,~~$29, respectively. ~~The total of~~Total consulting fees paid in each of the nine months ended September 30, 2022 and 2021, were $78and ~~2020~~$85, respectively. There were ~~$85 and $84, respectively.~~no amounts owed under the consulting agreements as of September 30, 2022.

Total consulting fees paid as of the year ended December 31, 2021, was $110. In May of 2021, the 2two members of the board of directors were awarded 5,781 options of ~~company~~Company stock each, as per their updated Scientific Advisory Board agreements. There were 0no amounts owed under the consulting agreements ~~at September 30, 2021 or December 31, 2020.~~

~~During the fiscal year ended December 31, 2020, an investor provided $65 of financial consulting services to the Company. The Company has paid the entirety of the fees~~ as of December 31, ~~2020. NaN amounts were paid or owed to the investors in the nine months ended September 30,~~ 2021.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited financial statements and the related notes and other financial information included in this Quarterly Report on Form 10-Q and our audited financial statements and notes thereto as of and for the years ended December 31, ~~2020~~2021 and ~~2019~~2020 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, including Contractual Obligations and Commitments, and Critical Accounting Policies and Significant Judgments and Estimates, included in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020~~2021 filed with the Securities and Exchange Commission (SEC) on March ~~3, 2021.~~1, 2022. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us,” and “our” refer to PMV Pharmaceuticals, Inc.

In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including but not limited to those set forth under the captions “Special Note Regarding Forward-Looking Statements,” “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020,~~2021, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended. Furthermore, past operating results are not necessarily indicative of results that may occur in future periods.

Overview

We are a ~~clinical-stage~~precision oncology company pioneering the discovery and development of small molecule, ~~tumor agnostic~~tumor-agnostic therapies ~~designed to target p53 mutations.~~targeting p53. p53 is a well-defined tumor suppressor protein known as the “guardian of the genome,” and normal, or wild-type, p53 has the ability to eliminate cancer cells. However, mutant p53 proteins can be misfolded and lose their wild-type tumor suppressing function. These p53 mutations are found in approximately half of all cancers. The field of p53 biology was established by our co-founder Dr. Arnold Levine when he discovered the p53 protein in 1979. We have leveraged more than four decades of research experience and developed unique insights into p53 to create a precision oncology platform designed to generate selective, small molecule, tumor-agnostic therapies that structurally correct specific mutant p53 proteins to restore their wild-type function. We are deploying our precision oncology platform to target the top ten most frequent, or hotspot, p53 mutations that are collectively associated with approximately 10-15% of all cancers. In addition, we are expanding the utilization of our platform to target certain cancers where wild-type p53 function is silenced.

Since our formation in March 2013, we have devoted substantially all of our time and efforts to performing research and development activities and raising capital. We are not profitable and have incurred losses in each year since our inception. Our net losses were ~~$34.4~~$57.8 million and ~~$25.3~~$34.4 million for the years ended December 31, ~~2020~~2021, and ~~2019,~~2020, respectively. During the three and nine months ended September 30, ~~2021,~~2022, the Company incurred a net loss of ~~$15.0~~$18.2 million and ~~$39.5~~$54.0 million, respectively. As of September 30, ~~2021,~~2022, we had an accumulated deficit of ~~$149.4~~$221.7 million. We do not currently have any product candidates approved for sale, and we continue to incur significant research and development and general administrative expenses related to our operations. We initiated a Phase 1/2 clinical trial in October 2020 for our lead product candidate, PC14586. In October 2020, we were granted FDA Fast Track Designation of PC14586 for the treatment of patients with locally advanced or metastatic solid tumors that have a p53 Y220C mutation. We dosed our first patient in this clinical trial in the fourth quarter of 2020. In June 2022, we presented our Initial Phase 1 clinical data for PC14586. We expect that our operating expenses will increase significantly as we advance our product candidates through preclinical and clinical development, seek regulatory approval, and prepare for and, if approved, proceed to commercialization; acquire, discover, validate, and develop additional product candidates; obtain, maintain, protect, and enforce our intellectual property portfolio; and hire additional personnel. ~~In addition,~~Furthermore, we have incurred and will continue to incur additional costs associated with operating as a public company ~~and~~that we did not experience as a private company. We expect to continue to incur significant losses for the foreseeable future.

Our ability to generate product revenue will depend on the successful development, regulatory approval, and eventual commercialization of one or more of our product candidates. Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through private or public equity or debt financings, collaborative, or other arrangements with corporate sources, or through other sources of financing. Adequate funding may not be available to us on acceptable terms, or at all. If we fail to raise capital or enter into such agreements as and when needed, we may have to significantly delay, scale back or discontinue the development and commercialization of our product candidates.

We plan to continue to use third-party service providers, including clinical research organizations, or CROs, and contract manufacturing organization, or CMOs, to carry out our preclinical and clinical development and to manufacture and supply the materials to be used during the development and commercialization of our product candidates. We do not currently have a sales force.

Components of Results of Operations

Revenue

To date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However, there can be no assurance as to when we will generate such revenue, if at all.

Operating Expenses

Research and Development Expenses

Our research and development expenses consist primarily of costs incurred to conduct research, such as the discovery and development of our product candidates as well as the development of future product candidates. Research and development expenses include personnel costs, including stock-based compensation expense, third-party contractor services, laboratory materials and supplies, ~~sourcing of raw materials~~ and ~~manufacturing of product candidates,~~ depreciation and maintenance of research ~~equipment and an allocation of related facilities costs.~~equipment. We expense research and development costs as they are incurred.

As we are at a very early stage of development, we do not allocate our costs by product candidate or development program, as a significant amount of research and development expenses include compensation costs, materials, supplies, depreciation on and maintenance of research equipment, and the cost of services provided by outside contractors, which are not tracked by product candidate or development program. In particular, with respect to internal costs, several of our departments support multiple product candidate research and development programs, and therefore the costs cannot be allocated to a particular product candidate or development program. Substantially all of our research and development costs are associated with our lead product candidate, PC14586. ~~In October 2020, we~~We initiated a Phase 1/2 clinical trial in October 2020 for ~~PC14586 and also~~our lead product candidate, PC14586. In October 2020, we were granted FDA Fast Track Designation of PC14586 for the treatment of patients with locally advanced or metastatic solid tumors that have a p53 Y220C mutation. We dosed our first patient in this clinical trial in the fourth quarter of 2020. In June 2022, we presented our initial Phase 1 clinical data for PC14586 at the 2022 ASCO Annual Meeting.

We expect our research and development expenses to increase substantially in absolute dollars in the future as we advance our product candidates into and through clinical trials and pursue regulatory approval of our product candidates. The process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming. The actual probability of success for our product candidates may be affected by a variety of factors including: the safety and efficacy of our product candidates, early clinical data, investment in our clinical program, the ability of any future collaborators to successfully develop our licensed product candidates, competition, manufacturing capability, and commercial viability. We may never succeed in achieving regulatory approval for any of our product candidates. As a result of the uncertainties discussed above, we are unable to determine the duration and completion costs of our research and development projects.

General and Administrative Expenses

General and administrative expenses include personnel costs, expenses for outside professional services and other allocated expenses. Personnel costs consist of salaries, bonuses, benefits, and stock-based compensation. Outside professional services consist of legal, accounting and audit services and other consulting fees. Allocated expenses consist of rent expense related to our office and research and development ~~facility.~~facilities. We ~~expect to incur~~have incurred additional expenses as a public company, including expenses related to compliance with the rules and regulations of the SEC, and those of any national securities exchange on which our securities are traded, additional insurance expenses, investor relations activities and other administrative and professional services. We ~~expect to increase~~have increased our headcount significantly to ~~operate~~support our operations as a public company. We also expect to increase our general and administrative expenses as we advance our product candidates through preclinical research and development, manufacturing, clinical development, and commercialization.

Interest Income, Net

Interest income, net primarily consists of interest income from our interest-bearing cash, cash equivalents and short-term marketable securities and interest costs related to amortization of premiums and discounts on short-term marketable securities.

Results of Operations

Comparison of the Three Months ended September 30, ~~2021~~2022 and ~~2020~~2021.

The following table summarizes our results of operations (in thousands):


	Three Months Ended September 30,									Three Months Ended September 30,
Statement of operations data:	2021			2020			Change			2022 (Unaudited)			2021 (Unaudited)			Change
Operating expenses:
Research and development	$	9,162		$	5,992		$	3,170		$	13,666		$	9,162		$	4,504
General and administrative		5,935			2,709			3,226			5,709			5,935			(226	)

Total operating expenses		15,097			8,701			6,396			19,375			15,097			4,278

Loss from operations		(15,097	)		(8,701	)		(6,396	)		(19,375	)		(15,097	)		(4,278	)
Other income (expense):
Interest income, net		102			40			62			1,124			102			1,022
Other income (expense)		3			(100	)		103
Other income (expense), net											13			3			10

Total other income (expense)		105			(60	)		165			1,137			105			1,032

Loss before provision for income taxes		(14,992	)		(8,761	)		(6,231	)
Provision for income taxes		19			3			16
Loss before (benefit) provision for income taxes											(18,238	)		(14,992	)		(3,246	)
(Benefit) provision for income taxes											(9	)		19			(28	)

Net loss	$	(15,011	)	$	(8,764	)	$	(6,247	)	$	(18,229	)	$	(15,011	)	$	(3,218	)

Research and Development Expenses

The following table summarizes our research and development expenses incurred during the periods indicated (in thousands):


	Three Months Ended September 30,							Three Months Ended September 30,
Statement of operations data:	2021		2020		Change			2022 (Unaudited)		2021 (Unaudited)		Change
Research	$	1,843	$	2,066	$	(223	)	$	1,366	$	1,843	$	(477	)
Development		5,141		1,597		3,544			9,148		5,141		4,007
Personnel related		1,729		2,041		(312	)		2,316		1,729		587
Stock-based compensation		449		288		161			836		449		387
Total	$	9,162	$	5,992	$	3,170		$	13,666	$	9,162	$	4,504

Research and development expenses were $13.7 million for the three months ended September 30, 2022, compared to $9.2 million for the three months ended September 30, ~~2021,~~2021. The increase of $4.5 million, compared to ~~$6.0~~the three months ended September 30, 2021, was primarily due to the following:

•

$0.5 million decrease in research expenses, largely driven by decreased contractual research organization costs;

•

$4.0 million increase in development expenses associated with advancing our lead product candidate, PC14586, through the Phase 1/2 clinical trial; and

•

$1.0 million increase in expenses for personnel related costs and stock-based compensation, primarily driven by increased headcount.

General and Administrative Expenses

General and administrative expenses were $5.7 million for the three months ended September 30, ~~2020. The increase of $3.2 million was primarily due~~2022, compared to ~~the following:~~

•

~~$0.2 million decrease in research expenses, largely driven by decreased contractual research organization costs;~~

•

~~$3.5 million increase in development expenses associated with advancing our lead product candidate, PC14586, through the Phase 1/2 clinical trial; and~~

•

$0.1 million decrease in expenses for personnel related costs and stock-based compensation, is primarily driven by the use of a payroll tax credit offset by an increased headcount for developing PC14586.

~~General and Administrative Expenses~~

~~General and administrative expenses were~~ $5.9 million for the three months ended September 30, ~~2021,~~2021. The decrease of $0.2 million, compared to ~~$2.7 million for~~ the three months ended September 30, ~~2020. The increase of $3.2 million~~2021, was primarily due to ~~the~~ following:

•

$0.1 million decrease in personnel and office related expense and $0.4 million decrease in finance and legal support; and

•

$0.3 million increase due to facility related costs for our new office and laboratory building in Princeton, NJ.

•

$1.7 million increase in personnel and office related expense due to increased headcount to build out general and administrative infrastructure offset by $0.1 million decrease in office related costs; and

•

$0.4 million increase in finance and legal support, along with a $0.6 million increase for directors and officers insurance, and a $0.6 million increase due to facility related costs for the new office building in Princeton, NJ.

Interest Income, Net

Interest income, net primarily consists of interest income from our interest-bearing cash, cash equivalents and marketable securities and interest costs related to amortization of premiums and discounts on marketable securities. Interest income, net was ~~$0.1~~$1.1 million for the three months ended September 30, ~~2021.~~2022. The increase of ~~$0.1~~$1.0 million compared to the three months ended September 30, ~~2020~~2021, is driven by increased interest rates from cash investments in marketable securities and U.S treasuries during the three months ended September 30, ~~2021.~~2022.

Comparison of the Nine Months ended September 30, ~~2021~~2022 and ~~2020~~2021

The following table summarizes our results of operations (in thousands):


	Nine Months Ended September,									Nine Months Ended September 30,
Statement of operations data:	2021			2020			Change			2022 (Unaudited)			2021 (Unaudited)			Change
Operating expenses:
Research and development	$	24,326		$	17,752		$	6,574		$	36,963		$	24,326		$	12,637
General and administrative		15,495			6,689			8,806			18,915			15,495			3,420

Total operating expenses		39,821			24,441			15,380			55,878			39,821			16,057

Loss from operations		(39,821	)		(24,441	)		(15,380	)		(55,878	)		(39,821	)		(16,057	)
Other income (expense):
Interest income, net		343			603			(260	)		1,830			343			1,487
Other income (expense)		14			(143	)		157
Other income (expense), net											67			14			53

Total other income		357			460			(103	)		1,897			357			1,540

Loss before provision for income taxes		(39,464	)		(23,981	)		(15,483	)
Provision for income taxes		23			5			18
Loss before (benefit) provision for income taxes											(53,981	)		(39,464	)		(14,517	)
(Benefit) provision for income taxes											(9	)		23			(32	)

Net loss	$	(39,487	)	$	(23,986	)	$	(15,501	)	$	(53,972	)	$	(39,487	)	$	(14,485	)

Research and Development Expenses

The following table summarizes our research and development expenses incurred during the periods indicated (in thousands):


	Nine Months Ended September 30,							Nine Months Ended September 30,
Statement of operations data:	2021		2020		Change			2022 (Unaudited)		2021 (Unaudited)		Change
Research	$	6,378	$	5,273	$	1,105		$	5,771	$	6,378	$	(607	)
Development		11,611		6,190		5,421			21,868		11,611		10,257
Personnel related		5,354		5,681		(327	)		7,031		5,354		1,677
Stock-based compensation		983		608		375			2,293		983		1,310
Total	$	24,326	$	17,752	$	6,574		$	36,963	$	24,326	$	12,637

Research and development expenses were ~~$24.3~~$37.0 million for the nine months ended September 30, ~~2021,~~2022, compared to ~~$17.8~~$24.4 million for the nine months ended September 30, ~~2020.~~2021. The increase of ~~$6.5~~$12.6 million, compared to the nine months ended September 30, 2021, was primarily due to the following:

•

$0.6 million decrease in research expenses, largely driven by decreased contractual research organization costs focused on discovery research;

•

$10.3 million increase in development expenses associate with advancing our lead product candidate, PC14586, through the Phase 1/2 clinical trial; and

•

$2.9 million increase in expenses for personnel-related costs and stock-based compensation, primarily driven by increased headcount.

•

~~$1.1 million increase in research expenses, largely driven by increased contractual research organization costs focused on discovery research;~~

•

~~$5.4 million increase in development expenses associate with advancing our lead product candidate, PC14586, through the Phase 1/2 clinical trial; and~~

•

~~$0.1 million increase in expenses for personnel-related costs and stock-based compensation, primarily driven by the rise in the Company’s stock value subsequent to the IPO in September 2020.~~

General and Administrative Expenses

General and administrative expenses were $18.9 million for the nine months ended September 30, 2022, compared to $15.5 million for the nine months ended September 30, ~~2021,~~2021. The increase of $3.4 million, compared to ~~$6.7 million for~~ the nine months ended September 30, ~~2020. The increase of $8.8 million~~2021, was primarily due to the following:

•

$2.4 million increase in personnel related expense due to increased headcount to build out general and administrative infrastructure; and

•

$0.1 million increase in finance and legal support, along with a $0.1 million decrease for directors and officers insurance, and a $1.0 million increase due to facility related costs for our new office and laboratory building in Princeton, NJ.

•

~~$4.4 million increase in personnel related expense due to increased headcount to build out general and administrative infrastructure offset by $0.1 million decrease in office related costs; and~~

•

$1.4 million increase in finance and legal support, along with a $1.9 million increase for directors and officers insurance, and a $1.1 million increase due to facility related costs for the new office building in Princeton, NJ.

Interest Income, Net

Interest income, net primarily consists of interest income from our interest-bearing cash, cash equivalents and marketable securities and interest costs related to amortization of premiums and discounts on marketable securities. Interest income, net was $1.8 million for the nine months ended September 30, 2022 compared to $0.3 million for the nine months ended September 30, ~~2021 compared to $0.6 million for the nine months ended September 30, 2020.~~2021. The ~~decrease~~increase of ~~$0.3~~$1.5 million is driven by ~~decreased~~increased interest rates from cash investments in marketable securities and U.S treasuries during the nine months ended September 30, ~~2021.~~2022.

Liquidity and Capital Resources

Our financial condition is summarized as follows:


	September 30,		December 31,
	2022		2021		Change
Financial assets:
Cash and cash equivalents	$	99,850	$	172,467	$	(72,617	)
Marketable securities - current		159,007		124,696		34,311
Marketable securities - noncurrent		—		16,911		(16,911	)
Total financial assets	$	258,857	$	314,074	$	(55,217	)

Working capital:
Current assets	$	265,176	$	301,286	$	(36,110	)
Current liabilities		11,656		12,219		(563	)
Total working capital	$	253,520	$	289,067	$	(35,547	)

Sources of Liquidity

Since our inception, we have not generated any revenue from any product sales or any other sources and have incurred significant operating losses and negative cash flows from our operations. We have not yet commercialized any of our product candidates and we do not expect to generate revenue from sales of any product candidates for several years, if at all. As of September 30, ~~2021,~~2022, we had cash, cash equivalents, and ~~restricted cash of $177.5 million, current~~ marketable securities of ~~$131.0 million, noncurrent marketable securities of $18.6~~$258.9 million and an accumulated deficit of ~~$149.4 million. We have financed our operations primarily through issuances of our convertible preferred and common stock. In 2019, we sold an aggregate of~~ ~~5,469,606~~ ~~shares of our Series C convertible preferred stock to accredited investors, generating gross proceeds of $61.9 million. In July 2020, we sold an aggregate of~~ ~~5,321,864~~ ~~shares of our Series D convertible preferred stock to accredited investors, generating gross proceeds of $70.0~~$221.7 million. In September 2020, we completed an IPO of 13,529,750 shares of our common stock, which includes the exercise in full by the underwriters of their option to purchase 1,764,750 additional shares of common stock, at a public

offering price of $18.00 per share for aggregate gross proceeds of $243.5 million. We received $223.2 million in net proceeds after deducting underwriting discounts and commissions and other offering expenses payable by us. In October 2021, we filed an automatic shelf registration statement on Form S-3. We did not sell any shares pursuant to the shelf registration statement and did not receive any gross proceeds in fiscal year 2021 or the nine months ended September 30, 2022.

Contractual Obligations and Commitments

We enter into contracts in the normal course of business with CROs and other vendors to assist in the performance of our research and development activities and other services and products for operating purposes. These contracts generally provide for termination on notice, and therefore are cancelable contracts and not included in the table of contractual obligations and commitments.

In January 2021, we signed a lease for 50,581 square feet of office and laboratory space at One Research Way in Princeton, New Jersey. That lease term extends through 2032, has a five-year extension option, and is intended to replace our two existing facilities. Payments under this lease will total $19.9 million through May 2032. Amounts related to future lease payments as of September 30, 2022, totaled $19.5 million, with $2.0 million to be paid within the next 12 months.

Plan of Operation and Future Funding Requirements

We use our capital resources primarily to fund operating expenses, mainly research and development expenditures. We plan to increase our research and development expenses for the foreseeable future as we continue the preclinical and clinical development of our product candidates. At this time, due to the inherently unpredictable nature of preclinical and clinical development and given the early stage of our product candidates, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current product candidates or any future product candidates, if at all. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or whether, or when, if ever, we may achieve profitability. Clinical and preclinical development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

Due to our significant research and development expenditures, we have generated substantial operating losses in each period since inception. We have incurred an accumulated deficit of ~~$149.4~~$221.7 million through September 30, ~~2021.~~2022. We expect to incur substantial additional losses in the future as we expand our research and development activities. For the nine months ended September 30, 2022 and 2021, our cash operating expenditures were $48.4 million and $34.5 million, respectively. We expect to increase our investment in operations in the remainder of 2022 and 2023. Based on our research and development plans, we expect that our cash, cash equivalents and marketable securities as of September 30, ~~2021~~2022 will be sufficient to fund our operations at least through 2023.

We have based this estimate on assumptions that may prove to be wrong, however, and we could use our capital resources sooner than we expect.

The timing and amount of our operating expenditures will depend largely on:

•

the timing and progress of preclinical and clinical development activities;

•

the number and scope of preclinical and clinical programs we decide to pursue;

•

the timing and amount of milestone payments we may receive under any future collaboration agreements;

•

our ability to maintain future licenses and research and development programs and to establish new collaboration and/or in-licensing arrangements;

•

the costs involved in prosecuting and enforcing patent and other intellectual property claims;

•

the cost and timing of regulatory approvals; and

•

our efforts to build out our new office and laboratory headquarters, enhance operational systems and hire additional personnel, including personnel to support development of our product candidates and satisfy our obligations as a public company.

•

~~the timing and progress of preclinical and clinical development activities;~~

•

~~the number and scope of preclinical and clinical programs we decide to pursue;~~

•

~~the timing and amount of milestone payments we may receive under any future collaboration agreements;~~

•

~~our ability to maintain future licenses and research and development programs and to establish new collaboration arrangements;~~

•

~~the costs involved in prosecuting and enforcing patent and other intellectual property claims;~~

•

~~the cost and timing of regulatory approvals; and~~

•

~~our efforts to enhance operational systems and hire additional personnel, including personnel to support development of our product candidates and satisfy our obligations as a public company.~~

Until such time, if ever, as we can generate substantial revenue from product sales, we expect to fund our operations and capital funding needs through equity and/or debt financing. We may also consider entering into collaboration arrangements or selectively partnering for clinical development and commercialization. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations and the instruments

governing such debt could provide for operating and financing covenants that would restrict our operations or our ability to incur additional indebtedness or pay dividends, among other items. If we raise additional funds through governmental funding, collaborations, strategic partnerships and alliances or marketing, distribution, or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are not able to secure adequate additional funding, we may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially and adversely affect our business, financial condition, results of operations and prospects.

Cash Flows

The following table summarizes our cash flows for the period indicated (in thousands):

	Nine Months Ended September 30,
	2021			2020			Nine Months Ended September 30,
	(unaudited)			(unaudited)			2022 (Unaudited)			2021 (Unaudited)
Cash used in operating activities	$	(34,543	)	$	(22,427	)	$	(48,436	)	$	(34,543	)
Cash (used in) provided by investing activities		(151,143	)		27,968
Cash used in investing activities								(24,591	)		(151,143	)
Cash provided by financing activities		1,727			294,331			410			1,727

Net increase in cash and cash equivalents	$	(183,959	)	$	299,872
Net (decrease) in cash and cash equivalents							$	(72,617	)	$	(183,959	)

Operating Activities

Net cash used in operating activities for the nine months ended September 30, 2022, was $48.4 million, which consisted primarily of net loss of $54.0 million partially offset by non-cash charges of $7.4 million. Changes in our net operating assets decreased operating cash by $1.9 million. The non-cash charges primarily consisted of stock-based compensation of $7.1 million, and non-cash lease expense of $0.3 million. The change in our net operating assets and liabilities was primarily due to an increase in prepaid expenses and other assets, a decrease in accrued expenses, an increase in outstanding payables, and an increase in operating lease right of use assets and liabilities driven by a cash reimbursement of $1.6 million for the buildout of the new office building in Princeton, NJ.

Net cash used in operating activities for the nine months ended September 30, 2021, was $34.5 million, which consisted primarily of net loss of $39.5 million partially offset by non-cash charges of $4.9 million. Changes in our net operating assets increased operating cash by $0.1 million. The non-cash charges primarily consisted of stock-based compensation of $3.6 million, depreciation and amortization of $0.7 million, and non-cash lease expense of $0.6 million. The change in our net operating assets and liabilities was primarily due to an increase in prepaid expenses and other assets, an increase in accrued expenses, and a decrease in outstanding payables.

~~Net~~Investing Activities

Our investing activities used $24.6 million of cash ~~used in operating activities for~~during the nine months ended September 30, ~~2020, was $22.4 million,~~2022, which consisted primarily of ~~net loss~~purchases of ~~$24.0~~marketable securities of $194.5 million, along with purchase of property and equipment of $6.4 million partially offset by ~~non-cash charges~~maturities of ~~$1.9 million and by a net change~~marketable securities of ~~$0.3~~

~~million in our net operating assets. The non-cash charges primarily consisted of stock-based compensation of $1.3 million and depreciation and amortization of $0.4~~$176.3 million. ~~The change in our net operating assets and liabilities was primarily due to an increase in accrued expenses partially offset by a decrease in outstanding payables in 2020.~~

~~Investing Activities~~

Our investing activities used $151.1 million of cash during the nine months ended September 30, 2021, which consisted primarily of purchases of marketable securities of $235.2 million, along with purchase of property and equipment of $1.1 million partially offset by maturities of marketable securities of $85.1 million.

Financing Activities

Our ~~investing~~financing activities provided ~~$28.0~~$0.4 million of cash during the nine months ended September 30, ~~2020,~~2022, which consisted primarily of ~~maturities~~proceeds from the exercise of ~~marketable securities~~stock options and issuance of ~~$42.6 million, partially offset by purchases of marketable securities of $14.5 million and purchases of property and equipment of $0.1 million.~~common stock under the 2020 ESPP.

~~Financing Activities~~

Our financing activities provided $1.7 million of cash during the nine months ended September 30, 2021, which consisted primarily of proceeds from the exercise of stock options.

Our financing activities provided $294.3 million of cash during the nine months ended September 30, 2020, which consisted primarily of gross IPO proceeds of $243.5 million and Series D Preferred Stock issuance of $70.0 million, offset by equity issuance costs of $20.6 million. $1.4million of these issuance costs remained unpaid at September 30, 2020.

~~Off-Balance Sheet Arrangements~~

~~We do not currently have, nor in the past had, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC, during the periods presented.~~

Critical Accounting Policies and Significant Judgments and Estimates

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the amounts reported in those financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due to the inherent uncertainty involved in making those estimates, actual results reported in future periods could differ from those estimates.

We believe that the accounting policies described below involve a high degree of judgment and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of our operations. During the ~~nine month~~nine-month period ended September 30, ~~2021,~~2022, there were no material changes to our critical accounting policies from those described in our audited financial statements for the year ended December 31, ~~2020~~2021, included in our Annual Report on Form 10-K filed with the SEC on March ~~3, 2021,~~1, 2022, except as noted ~~below~~.below.

Research and Development Costs, Accrued Research and Development Costs and Related Prepaid Expenses

Research and development costs are expensed as incurred. Research and development expenses consist principally of personnel costs, including salaries, stock-based compensation and benefits for employees, third-party license fees and other operational costs related to our research and development activities, including sourcing of raw materials and manufacturing of our product candidates, allocated facility-related expenses and external costs of outside vendors, and other direct and indirect costs. Non-refundable research and development advance payments are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or services are performed.

As part of the process of preparing our financial statements, we are required to estimate our accrued research and development expenses. This process involves reviewing open contracts and purchase orders, communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs. The majority of our service providers invoice us in arrears for services performed, on a pre-determined schedule or when contractual milestones are met; however, some require advance payments. We make estimates of our accrued expenses as of each balance sheet date in the financial statements based on facts and circumstances known to us at that time. We periodically confirm the accuracy of the estimates with the service providers and make adjustments if necessary. Examples of estimated accrued research and development expenses include fees paid to:

•

vendors, including research laboratories, in connection with preclinical development activities;

•

CROs and investigative sites in connection with preclinical studies and clinical trials; and

•

CMOs in connection with drug substance and drug product formulation of preclinical studies and clinical trial materials.

We base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple research institutions and CROs that supply, conduct and manage preclinical studies and clinical trials on our behalf. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows. There may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense. Payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones. In accruing service fees, we estimate the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, we adjust the accrual or the prepaid expense accordingly. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. To date, there have not been any material adjustments to our prior estimates of accrued research and development expenses.

Stock-Based Compensation

We measure all stock options and other stock-based awards granted to our employees, directors, consultants, and other non-employee service providers based on the fair value on the date of the grant. Compensation expense related to awards to employees and directors with service-based vesting conditions is recognized on a straight-line basis based on the grant date fair value over the associated service period of the award, which is typically the vesting term. Compensation expense related to awards to employees with performance-based vesting conditions is recognized based on grant date fair value over the requisite service period using the accelerated attribution method to the extent achievement of the performance condition is probable. Non-employee option awards are measured at the earlier of the commitment date for performance by the counterparty or the

date when the performance is complete, and compensation expense is recognized in the same manner as if we had paid cash for goods or services.

We classify stock-based compensation expense in our statement of operations in the same way the award recipient’s payroll costs are classified or in which the award recipients’ service payments are classified.

We use the Black-Scholes option pricing model to estimate the fair value of stock options on the date of grant. Using the Black-Scholes option pricing model requires management to make significant assumptions and judgments. We determined these assumptions for the Black-Scholes option-pricing model.

Since we do not have a trading history of common stock, the expected volatility was derived from theaverage historical stock volatilities of the common stock of several public companies within the industry that we consider to be comparable to our business over a period equivalent to the expected term of the stock-based awards.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, see Note 2 of the notes to our unaudited condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.

~~JOBS Act Accounting Election~~

We are an emerging growth company (or “EGC”), as defined in the Jumpstart Our Business Startups Act of 2012, as amended, or JOBS Act, enacted in April 2012. For as long as we continue to be an EGC, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not EGCs, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, or Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding nonbinding advisory votes on executive compensation and stockholder approval of any golden parachute payments not previously approved. We will remain an EGC until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the closing of our IPO, (b) in which we have total annual gross revenue of at least $1.07 billion or (c) in which we are deemed to be a large accelerated filer, which requires the market value of our common stock that is held by non-affiliates to exceed $700 million as of the prior June 30th, or (2) the date on which we have issued more than $1 billion in non-convertible debt during the prior three-year period. Based on our common share market value at June 30, 2021, we expect to lose our EGC status on December 31, 2021 and qualify as a large accelerated filer and, as a result, may be subject to increased disclosure and governance requirements.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies. For as long as we continue to be an EGC, we have elected to use the extended transition period to enable us to comply with new or revised accounting standards and, therefore, we will adopt new or revised accounting standards at the time private companies adopt the new or revised accounting standard and will do so until such time that we either (i) irrevocably elect to “opt out” of such extended transition period or (ii) no longer qualify as an emerging growth company.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risks in the ordinary course of our business. These risks primarily relate to interest rate risks.

We had cash, ~~and~~ cash equivalents, and marketable securities of ~~$176.6~~$258.9 million and restricted cash of $0.8 million as of September 30, ~~2021, which consists~~2022. The Company’s cash equivalents consist of interest-bearing U.S. treasury securities, money market funds, and corporate debt securities. Our exposure due to changes in interest rates is not material due to the nature and amount of our money-market funds and short-term marketable securities.

We are not currently exposed to significant market risk related to changes in foreign currency exchange rates; however, we may contract with foreign vendors that are located outside the United States in the future. This may subject us to fluctuations in foreign currency exchange rates in the future.

Item 4. Controls and Procedures.

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our Securities Exchange Act of 1934, as amended (the “Exchange Act”) reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

We carry out a variety of ongoing procedures, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of September 30, ~~2021.~~2022.

There have not been any changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently involved in any litigation or legal proceedings that, in management’s opinion, are likely to have any material adverse effect on the Company.

Item 1A. Risk Factors.

~~Other than as disclosed below, there~~There have been no material changes to the Company’s risk factors as set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020,~~2021, as filed with the SEC on March 1, 2022, as supplemented by our Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2021, each~~2022, as filed with the ~~SEC.~~SEC on May 10, 2022. You should carefully review and consider the information regarding certain factors which could materially affect our business, financial condition or future results set forth under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020,~~2021, as filed with the SEC on March ~~3, 2021,~~1, 2022, our Quarterly Report on Form 10-Q for the ~~quarterly period~~quarter ended March 31, ~~2021,~~2022, as filed with the SEC on May ~~14, 2021,~~10, 2022, and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, ~~2021,~~2022, as filed with the SEC on August ~~13, 2021.~~

~~Risks Related to Regulatory Process and Other Legal Compliance Matters~~9, 2022.

~~Healthcare legislative measures aimed at reducing healthcare costs may have a material adverse effect on our business and results of operations.~~

The United States and many foreign jurisdictions have enacted or proposed legislative and regulatory changes affecting the healthcare system that could prevent or delay marketing approval of our product candidates or any future product candidates, restrict or regulate post-approval activities and affect our ability to profitably sell a product for which we obtain marketing approval. Changes in regulations, statutes or the interpretation of existing regulations could impact our business in the future by requiring, for example: (i) changes to our manufacturing arrangements; (ii) additions or modifications to product labeling; (iii) the recall or discontinuation of our products; or (iv) additional record-keeping requirements. If any such changes were to be imposed, they could adversely affect the operation of our business.

In the United States, there have been and continue to be a number of legislative initiatives to contain healthcare costs. For example, in March 2010, the Affordable Care Act, or ACA, was passed, which substantially changed the way healthcare is financed by both governmental and private insurers, and significantly impacted the U.S. pharmaceutical industry. The ACA, among other things, subjected biological products to potential competition by lower-cost biosimilars, addressed a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated for drugs that are inhaled, infused, instilled, implanted or injected, increased the minimum Medicaid rebates owed by manufacturers under the Medicaid Drug Rebate Program and extended the rebate program to individuals enrolled in Medicaid managed care organizations, established annual fees and taxes on manufacturers of certain branded prescription drugs, and created a new Medicare Part D coverage gap discount program, in which manufacturers must agree to offer 70% (increased pursuant to the Bipartisan Budget Act of 2018, effective as of 2019) point-of-sale discounts off negotiated prices of applicable brand drugs to eligible beneficiaries during their coverage gap period, as a condition for the manufacturer’s outpatient drugs to be covered under Medicare Part D.

There have been legislative and judicial efforts to repeal, replace, or change some or all of the ACA, including measures taken during the Trump administration. While Congress has not passed repeal legislation to date, the Tax Cuts and Jobs Act, or Tax Act, repealed, effective January 1, 2019, the tax-based shared responsibility payment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the “individual mandate.” On December 14, 2018, a federal district court in Texas ruled the individual mandate is a critical and inseverable feature of the ACA, and therefore, because it was repealed as part of the Tax Act, the remaining provisions of the ACA are invalid as well. On December 18, 2019, the Fifth Circuit U.S. Court of Appeals held that the individual mandate is unconstitutional, and remanded the case to the lower court to reconsider its earlier invalidation of the full ACA. In November 2020, the United States Supreme Court held oral arguments on this case. It is unclear how the United States Supreme Court will rule on this case, or how other future judicial and legislative efforts, including healthcare measures of the Biden administration, will impact the ACA or our business. We will continue to evaluate the effect that the ACA has on our business. Complying with any new legislation or reversing changes implemented under the ACA could be time-intensive and expensive, resulting in a material adverse effect on our business.

In addition, other legislative changes have been proposed and adopted in the United States since the ACA was enacted. For example, on January 22, 2018, President Trump signed a continuing resolution on appropriations for fiscal year 2018 that delayed the implementation of certain ACA-mandated fees, including the so called “Cadillac” tax on certain high cost

employer-sponsored insurance plans, the annual fee imposed on certain health insurance providers based on market share, and the medical device excise tax on non-exempt medical devices; however on December 20, 2019, President Trump signed into law the Further Consolidated Appropriations Act (H.R. 1865), which repeals the Cadillac tax and the health insurance provider tax. It is impossible to determine whether similar taxes could be instated in the future. CMS published a final rule permitting further collections and payments to and from certain ACA qualified health plans and health insurance issuers under the ACA risk adjustment program in response to the outcome of federal district court litigation regarding the method CMS uses to determine this risk adjustment. In addition, CMS has recently published a final rule that would give states greater flexibility, starting in 2020, in setting benchmarks for insurers in the individual and small group marketplaces, which may have the effect of relaxing the essential health benefits required under the ACA for plans sold through such marketplaces. The American Taxpayer Relief Act of 2012, among other things, reduced Medicare payments to several providers, including hospitals, imaging centers and cancer treatment centers, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years. Other legislative changes include aggregate reductions to Medicare payments to providers of 2% per fiscal year pursuant to the Budget Control Act of 2011, which began in 2013 and will remain in effect through 2030, with the exception of a temporary suspension implemented under various COVID-19 relief legislation from May 1, 2020 through March 31, 2021, unless additional Congressional action is taken.

There has been increasing legislative and enforcement interest in the United States with respect to specialty drug pricing practices. Specifically, there have been several recent U.S. Congressional inquiries and proposed federal and state legislation designed to, among other things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drugs. At the federal level, for example, in May 2019, CMS issued a final rule to allow Medicare Advantage Plans the option of using step therapy, a type of prior authorization, for Part B drugs beginning January 1, 2020. This final rule codified CMS’s policy change that was effective January 1, 2019. In 2020, under the Trump administration, HHS and CMS issued various rules that are expected to impact, among others, price reductions from pharmaceutical manufacturers to plan sponsors under Part D, fee arrangements between pharmacy benefit managers and manufacturers, manufacturer price reporting requirements under the Medicaid Drug Rebate Program, including regulations that affect manufacturer-sponsored patient assistance programs subject to pharmacy benefit manager accumulator programs and Best Price reporting related to certain value-based purchasing arrangements. Multiple lawsuits have been brought against the HHS challenging various aspects of the rules. In January 2021, the Biden administration issued a “regulatory freeze” memorandum that directs department and agency heads to review new or pending rules of the prior administration. It is unclear whether these new regulations will be withdrawn or when they will become fully effective under the Biden administration. The impact of these lawsuits as well as legislative, executive, and administrative actions of the Biden administration on us, our ability to generate revenue and achieve profitability, and the pharmaceutical industry as a whole is unclear.

Further, under the American Rescue Plan Act of 2021, effective January 1, 2024, the statutory cap on Medicaid Drug Rebate Program rebates that manufacturers pay to state Medicaid programs will be eliminated. Elimination of this cap may require pharmaceutical manufacturers to pay more in rebates than it receives on the sale of products, which could have a material impact on our business. In July 2021, the Biden administration released an executive order, “Promoting Competition in the American Economy,” with multiple provisions aimed at increasing competition for prescription drugs. In response to this executive order, the HHS has released a Comprehensive Plan for Addressing High Drug Prices that outlines principles for drug pricing reform and potential legislative policies that Congress could pursue to advance these principles. In addition, Congress is considering legislation that, if passed, could have significant impact on prices of prescription drugs covered by Medicare, including limitations on drug price increases, which may adversely affect our profitability.

At the state level, individual states are increasingly aggressive in passing legislation and implementing regulations designed to control pharmaceutical and biological product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access and marketing cost disclosure and transparency measures, and, in some cases, designed to encourage importation from other countries and bulk purchasing. For example, a number of states are considering or have recently enacted state drug price transparency and reporting laws that could substantially increase our compliance burdens and expose us to greater liability under such state laws once we begin commercialization after obtaining regulatory approval for any of our products. In addition, regional health care authorities and individual hospitals are increasingly using bidding procedures to determine what pharmaceutical products and which suppliers will be included in their prescription drug and other health care programs. These measures could reduce the ultimate demand for our products, once approved, or put pressure on our product pricing. We expect that additional state and federal healthcare reform measures will be adopted in the future, any of which could limit the amounts that federal and state governments will pay for healthcare products and services, which could result in reduced demand for our product candidates or additional pricing pressures.

Our revenue prospects could be affected by changes in healthcare spending and policy in the United States and abroad. We operate in a highly regulated industry and new laws, regulations or judicial decisions, or new interpretations of existing laws, regulations or decisions, related to healthcare availability, the method of delivery or payment for healthcare products and services could negatively impact our business, operations and financial condition.

There have been, and likely will continue to be, legislative and regulatory proposals at the foreign, federal and state levels directed at broadening the availability of healthcare and containing or lowering the cost of healthcare. We cannot predict the initiatives that may be adopted in the future, including repeal, replacement or significant revisions to the ACA. The continuing efforts of the government, insurance companies, managed care organizations and other payors of healthcare services to contain or reduce costs of healthcare and/or impose price controls may adversely affect:

•

~~the demand for our product candidates, if we obtain regulatory approval;~~

•

~~our ability to set a price that we believe is fair for our products;~~

•

~~our ability to obtain coverage and reimbursement approval for a product;~~

•

~~our ability to generate revenue and achieve or maintain profitability;~~

•

~~the level of taxes that we are required to pay; and~~

•

~~the availability of capital.~~

~~Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors, which may adversely affect our future profitability.~~

~~Risks Related to Ownership of Our Common Stock~~

~~If we sell shares of our common stock in future financings, stockholders may experience immediate dilution and, as a result, the market price of our common stock may decline.~~

We may from time-to-time issue additional shares of common stock at a discount from the current trading price of our common stock. As a result, our stockholders would experience immediate dilution upon the purchase of any shares of our common stock sold at such discount. In addition, as opportunities present themselves, we may enter into financing or similar arrangements in the future, including the issuance of debt securities, preferred stock or common stock. In October 2021, our shelf registration statement and prospectus supplement on Form S-3 (File No. 333-260012) became effective upon filing with the SEC, pursuant to which we may offer debt securities, preferred stock, common stock and certain other securities from time to time. If in the future we issue additional shares of common stock or securities convertible into common stock, our common stockholders would experience additional dilution and, as a result, the market price of our common stock may decline.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a) Unregistered Sales of Equity Securities

None.

(b) Use of Proceeds

Our registration statement on Form S-1 (File No. 333-248627) relating to the ~~initial public offering of our common stock~~IPO was declared effective by the ~~SEC on September 24, 2020, or IPO. Our common stock started trading on the Nasdaq Global Select Market~~SEC. The IPO closed on September 25, ~~2020. In connection with our IPO,~~2020 at which time we sold ~~an aggregate of~~ 13,529,750 shares of common stock (including the exercise in full by the underwriters of their option to purchase an additional 1,764,750 shares of common stock) at a public offering price of $18.00 per share, including 1,764,750 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. Goldman Sachs & Co. LLC, BofA Securities, Inc., Cowen and Company, LLC and Evercore Group L.L.C. acted as the joint book-running managers of the IPO. The aggregate grossshare. We received net proceeds ~~received by us~~ from the ~~offering, excluding~~IPO of approximately $223.2 million, after deducting the underwriting discounts and commissions of approximately $17.0 million and estimated offering related expenses ~~were $243.5~~of approximately $3.3 million. No offering expenses were paid or ~~are~~ payable, directly, or indirectly, to our directors, or officers, toor persons owning 10% or more of any class of ~~our~~ equity securities or to ~~any of~~ our affiliates. Goldman Sachs & Co. LLC, BofA Securities, Cowen, and Evercore ISI acted as joint book-running managers for the offering.

There has been no material change in the planned use of proceeds from ~~our~~the IPO asfrom that described in the ~~final~~ prospectus ~~relating to that offering~~ filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act on September ~~25,~~24, 2020.

On October 4, 2021, our shelf registration statement on Form S-3 (File No. 333-260012) was automatically declared effective by the SEC for our future follow-on offering. Pursuant to our shelf registration statement, we may offer and sell an indeterminate amount and combination of shares of our common stock, shares of our preferred stock, various series of debt securities and warrants to purchase any of such securities in one or more registered offerings. The Company has not issued any shares of common stock pursuant to the offering. There has been no material change in the planned use of proceeds from the follow-on offering as described in the Form S-3 Registration Statement. None of the offering expenses were paid or payable, directly, or indirectly, to our directors, officers, or persons owning 10% or more of any class of equity securities or to our affiliates.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

Item 6. Exhibits.

Exhibit
Number

Description
Form
File No.
Number
Filing Date

3.1

Amended and Restated Certificate of Incorporation of the Registrant
8-K
001-39539
3.1
September 29, 2020

3.2

Restated Bylaws of the Registrant
8-K
001-39539
3.2
September 29, 2020

4.1

Amended and Restated Investors’ Rights Agreement, dated July 17, 2020, by and among the Registrant and certain of its stockholders.
S-1
33-248627
4.1
September 4, 2020

4.2

Specimen common stock certificate
S-1/A
333-248627
4.2
September 21, 2020

10.1*

Form of Indemnification Agreement between the Registrant and each of its directors and executive officers.
S-1
333-248627
10.1
September 4, 2020

10.2*

2013 Equity Incentive Plan, as amended, and forms of agreement thereunder.
S-1/A
333-248627
10.2
September 21, 2020

10.3*

2020 Equity Incentive Plan and forms of agreements thereunder.
S-1/A
333-248627
10.3
September 21, 2020

10.4*

2020 Employee Stock Purchase Plan and forms of agreements thereunder.
S-1/A
333-248627
10.4
September 21, 2020

10.5*

Employment Offer Letter, dated August 17, 2020, by and between the Registrant and David H. Mack, Ph.D.
S-1
333-248627
10.5
September 4, 2020

10.6*

Employment Offer Letter, dated August 17, 2020, by and between the Registrant and Winston Kung.
S-1
333-248627
10.6
September 4, 2020

10.7*

Employment Offer Letter, dated August 18, 2020, by and between the Registrant and Leila Alland, M.D.
S-1
333-248627
10.7
September 4, 2020

10.8*

Employment Offer Letter, dated August 18, 2020, by and between the Registrant and Deepika Jalota, Pharm.D.
S-1
333-248627
10.8
September 4, 2020

10.9*

Employee Incentive Compensation Plan.
S-1
333-248627
10.9
September 4, 2020

10.10*

Change in Control and Severance Policy.
S-1
333-248627
10.10
September 4, 2020

10.11*

Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 17, 2020, by and between the Registrant and David H. Mack, Ph.D.
S-1
333-248627
10.11
September 4, 2020

10.12*

Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 17, 2020, by and between the Registrant and Winston Kung.
S-1
333-248627
10.12
September 4, 2020

10.13*

Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 18, 2020, by and between the Registrant and Leila Alland, M.D.
S-1
333-248627
10.13
September 4, 2020

10.14*

Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 18, 2020, by and between the Registrant and Deepika Jalota, Pharm.D.
S-1
333-248627
10.14
September 4, 2020

10.15*

Outside Director Compensation Policy.
S-1/A
333-248627
10.15
September 21, 2020

10.16*

Consulting Agreement, dated January 1, 2016, by and between the Registrant and Arnold Levine, Ph.D.
S-1
333-248627
10.16
September 4, 2020

10.17*

Consulting Agreement, dated July 14, 2017, by and between the Registrant and Richard Heyman, Ph.D.
S-1
333-248627
10.17
September 4, 2020

10.18

Lease Agreement, dated March 3, 2015, by and between the Registrant and Cedar Brook 2005, LP, as amended by the First Amendment to Lease dated April 24, 2017.
S-1
333-248627
10.18
September 4, 2020

10.19

Lease Agreement, dated January 8, 2021, by and between the Registrant and BMR-ONE RESEARCH WAY LLC.
10-K
001-39539
10.19
March 3, 2021

31.1

Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1†

Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2†

Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Exhibit

Number

~~Indicates management contract or compensatory plan.~~

†Description	~~The certifications attached as Exhibit 32.1~~Form	File No.	Number	Filing Date

31.1+		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 32.2 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of the Registrant15d-14(a) under ~~the Securities Act of 1933, as amended, or~~ the Securities Exchange Act of 1934, as ~~amended, whether made before or after~~Adopted Pursuant to Section 302 of the ~~date~~Sarbanes-Oxley Act of ~~this Quarterly Report on Form 10-Q, irrespective~~2002.

31.2+		Certification of ~~any general incorporation language contained in such filing.~~Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+†		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2+†		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

~~SIGNATURES~~† The certifications attached as Exhibit 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

+ Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	PMV Pharmaceuticals, Inc.

Date: November ~~12, 2021~~8, 2022	By:	/s/ David H. Mack
		David H. Mack, Ph.D.
		President, Chief Executive Officer, and Director
		(Principal Executive Officer)

	PMV Pharmaceuticals, Inc.

Date: November ~~12, 2021~~8, 2022	By:	/s/ Winston Kung
		Winston Kung
		Chief Operating Officer and Chief Financial Officer
		(Principal Financial Officer)

2725


Delaware	46-3218129
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
8 Clarke Drive, Suite 3 Cranbury, NJ	08512
(Address of principal executive offices)	(Zip Code)


	September 30, 2021 (unaudited)			December 31, 2020			September 30, 2022 (unaudited)			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	176,641		$	361,422		$	99,850		$	172,467
Restricted cash		822			—			822			822
Marketable securities, current		131,010			—			159,007			124,696
Prepaid expenses and other current assets		5,082			3,339			5,497			3,301
Total current assets		313,555			364,761			265,176			301,286
Property and equipment, net		1,394			569			9,966			3,090
Marketable securities, noncurrent		18,601			—			—			16,911
Right-of-use assets, operating leases		10,410			—
Right-of-use assets								9,535			10,060
Other assets		218			201			307			221
Total assets	$	344,178		$	365,531		$	284,984		$	331,568
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,278		$	1,607		$	4,826		$	3,189
Accrued expenses		6,740			4,803			6,436			8,627
Operating lease liability, current		545			—
Operating lease liabilities, current								394			403
Total current liabilities		8,563			6,410			11,656			12,219
Operating lease liability, noncurrent		10,667			—
Operating lease liabilities, noncurrent								12,135			10,790
Total liabilities		19,230			6,410			23,791			23,009
Stockholders’ equity:
Preferred stock, $0.00001 par value, 5,000,000 shares authorized at September 30, 2021 (unaudited) and December 31, 2020. NaN shares issued or outstanding at September 30, 2021 (unaudited) and December 31, 2020.		—			—
Common stock, $0.00001 par value, 1,000,000,000 shares authorized; 45,352,207 and 44,777,818 shares issued and outstanding at September 30, 2021 (unaudited) and December 31, 2020, respectively.		—			—
Preferred stock, $0.00001 par value, 5,000,000 shares authorized at September 30, 2022 and December 31, 2021. No shares issued or outstanding at September, 2022 and December 31, 2021.								—			—
Common stock, $0.00001 par value, 1,000,000,000 shares authorized; 45,624,860 and 45,433,684 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively.								—			—
Additional paid-in capital		474,301			469,001			483,916			476,363
Accumulated deficit		(149,367	)		(109,880	)		(221,698	)		(167,726	)
Accumulated other comprehensive income		14			—
Accumulated other comprehensive loss								(1,025	)		(78	)
Total stockholders’ equity		324,948			359,121			261,193			308,559
Total liabilities and stockholders’ equity	$	344,178		$	365,531		$	284,984		$	331,568

	Nine Months Ended September 30,
	2021			2020
Cash flows from operating activities:
Net loss	$	(39,487	)	$	(23,986	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		3,573			1,349
Depreciation		230			257
Amortization of premiums on marketable securities		459			152
Non-cash lease expense		644			—
Other		(17	)		144
Change in operating assets and liabilities:
Prepaid expenses and other assets		(1,743	)		85
Accounts payable		(385	)		(2,825	)
Accrued expenses		2,183			2,397
Net cash used in operating activities		(34,543	)		(22,427	)
Cash flows from investing activities:
Purchase of property and equipment		(1,087	)		(91	)
Purchase of marketable securities		(235,167	)		(14,512	)
Maturities of marketable securities		85,111			42,571
Net cash (used in) provided by investing activities		(151,143	)		27,968
Cash flows from financing activities:
Proceeds from issuance of convertible preferred stock, net		—			69,790
Proceeds from the issuance of common stock, net		—			224,541
Proceeds from exercise of stock options		1,727			—
Net cash provided by financing activities		1,727			294,331
Net (decrease) increase in cash, cash equivalents, and restricted cash		(183,959	)		299,872
Cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash - beginning of period		361,422			73,278
Cash, cash equivalents, and restricted cash - end of period	$	177,463		$	373,150
Supplemental disclosures of noncash investing activities
Lease incentives used for leasehold improvements	$	88		$	—
Supplemental disclosures of noncash financing activities
Conversion of convertible preferred stock to common stock	$	—		$	238,723
Conversion of warrant liability to common stock	$	—		$	194
Unpaid offering costs	$	—		$	1,380
Supplemental disclosures of cash flow information
Cash paid for income tax	$	23		$	5


	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities:
Net loss	$	(53,972	)	$	(39,487	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		7,143			3,573
Depreciation		240			230
Amortization (accretion) of premiums on marketable securities		(102	)		459
Non-cash lease expense		250			644
Other, net		(86	)		(17	)
Change in operating assets and liabilities:
Prepaid expenses and other assets		(2,196	)		(1,743	)
Operating lease right-of-use assets and liabilities		1,611			—
Accounts payable		867			(385	)
Accrued expenses		(2,191	)		2,183
Net cash used in operating activities		(48,436	)		(34,543	)
Cash flows from investing activities:
Purchases of property and equipment		(6,346	)		(1,087	)
Purchases of marketable securities		(194,512	)		(235,167	)
Maturities of marketable securities		176,267			85,111
Net cash used in investing activities		(24,591	)		(151,143	)
Cash flows from financing activities:
Proceeds from the exercise of stock options and common stock issued under the 2020 ESPP		410			1,727
Net cash provided by financing activities		410			1,727
Net decrease in cash and cash equivalents		(72,617	)		(183,959	)
Cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash - beginning of period		173,289			361,422
Cash, cash equivalents, and restricted cash - end of period	$	100,672		$	177,463
Supplemental disclosures of noncash investing activities
Accrued purchases of property and equipment	$	770		$	—
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	—		$	23


☒	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


		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Condensed Financial Statements (Unaudited)	1
	Condensed Balance Sheets (Unaudited)	1
	Condensed Statements of Operations and Comprehensive Loss (Unaudited)	2
	Condensed Statements of ~~Convertible Preferred Stock and~~ Stockholders’ ~~(Deficit)~~ Equity (Unaudited)	3
	Condensed Statements of Cash Flows (Unaudited)	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2122
Item 4.	Controls and Procedures	2122
PART II.	OTHER INFORMATION	2223
Item 1.	Legal Proceedings	2223
Item 1A.	Risk Factors	2223
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2423
Item 3.	Defaults Upon Senior Securities	2423
Item 4.	Mine Safety Disclosures	2423
Item 5.	Other Information	2523
Item 6.	Exhibits	2524
Signatures		2725

	Convertible Preferred Stock						Common Stock				Additional Paid-in		Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares			Amount			Shares		Amount		Capital		(Loss) Income			Deficit			Equity			Common Stock				Additional Paid-in		Accumulated Other Comprehensive			Accumulated			Total Stockholders'
Balance at December 31, 2019		22,866,246		$	168,933			3,046,200	$	—	$	4,969	$	(3	)	$	(75,440	)	$	(70,474	)
																						Shares		Amount		Capital		Loss			Deficit			Equity
Balance at December 31, 2020																							44,777,818	$	—	$	469,001	$	—		$	(109,880	)	$	359,121
Exercise of stock options																							103,351		—		162		—			—			162
Stock-based compensation expense		—			—			—		—		296		—			—			296			—		—		627		—			—			627
Net loss		—			—			—		—		—		—			(7,255	)		(7,255	)		—		—		—		—			(11,602	)		(11,602	)
Unrealized loss on available for sale investments		—			—			—		—		—		(80	)		—			(80	)		—		—		—		(13	)		—			(13	)
Balance at March 31, 2020		22,866,246		$	168,933			3,046,200	$	—	$	5,265	$	(83	)	$	(82,695	)	$	(77,513	)
Balance at March 31, 2021																							44,881,169	$	—	$	469,790	$	(13	)	$	(121,482	)	$	348,295
Exercise of stock options and common stock issued under the 2020 ESPP																							332,398		—		1,256		—			—			1,256
Stock-based compensation expense		—			—			—		—		383		—			—			383			—		—		1,150		—			—			1,150
Net loss		—			—			—		—		—		—			(7,967	)		(7,967	)		—		—		—		—			(12,874	)		(12,874	)
Unrealized gain on available for sale investments		—			—			—		—		—		88			—			88			—		—		—		20			—			20
Balance at June 30, 2020		22,866,246		$	168,933			3,046,200	$	—	$	5,648	$	5		$	(90,662	)	$	(85,009	)
Issuance of Series D convertible preferred stock, net of issuance costs of $210		5,321,864			69,790			—		—		—		—			—			—
Conversion of convertible preferred stock to common stock		(28,188,110	)		(238,723	)		28,188,110		—		238,723		—			—			238,723
Exercise of warrants		—			—			9,688		—		194		—			—			194
Issuance of common stock, net of issuance costs of $20,374		—			—			13,529,750		—		223,161		—			—			223,161
Balance at June 30, 2021																							45,213,567	$	—	$	472,196	$	7		$	(134,356	)	$	337,847
Exercise of stock options																							138,640		—		309		—			—			309
Stock-based compensation expense		—			—			—		—		670		—			—			670			—		—		1,796		—			—			1,796
Net loss		—			—			—		—		—		—			(8,764	)		(8,764	)		—		—		—		—			(15,011	)		(15,011	)
Unrealized loss on available for sale investments		—			—			—		—		—		(5	)		—			(5	)
Balance at September 30, 2020		—		$	—			44,773,748	$	—	$	468,396	$	—		$	(99,426	)	$	368,970
Unrealized gain on available for sale investments																							—		—		—		7			—			7
Balance at September 30, 2021																							45,352,207	$	—	$	474,301	$	14		$	(149,367	)	$	324,948

	As of September 30, 2021
	Carrying Amount		Fair Value		Quoted priced in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Financial assets
Money market funds	$	37,191	$	37,191	$	37,191	$	—	$	—
Corporate securities		255,428		255,428		—		255,428		—
Government securities		31,683		31,683		—		31,683		—
Total financial assets	$	324,302	$	324,302	$	37,191	$	287,111	$	—

	As of December 31, 2020
	Carrying Amount		Fair Value		Quoted Priced in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Money market funds	$	240,033	$	240,033	$	240,033	$	—	$	—
Corporate securities		120,008		120,008		—		120,008		—
Total financial assets	$	360,041	$	360,041	$	240,033	$	120,008	$	—

Exhibit Number	Description	Form	File No.	Number	Filing Date

3.1	Amended and Restated Certificate of Incorporation of the Registrant	8-K	001-39539	3.1	September 29, 2020

3.2	Restated Bylaws of the Registrant	8-K	001-39539	3.2	September 29, 2020

4.1	Amended and Restated Investors’ Rights Agreement, dated July 17, 2020, by and among the Registrant and certain of its stockholders.	S-1	33-248627	4.1	September 4, 2020

4.2	Specimen common stock certificate	S-1/A	333-248627	4.2	September 21, 2020

10.1*	Form of Indemnification Agreement between the Registrant and each of its directors and executive officers.	S-1	333-248627	10.1	September 4, 2020

10.2*	2013 Equity Incentive Plan, as amended, and forms of agreement thereunder.	S-1/A	333-248627	10.2	September 21, 2020

10.3*	2020 Equity Incentive Plan and forms of agreements thereunder.	S-1/A	333-248627	10.3	September 21, 2020

10.4*	2020 Employee Stock Purchase Plan and forms of agreements thereunder.	S-1/A	333-248627	10.4	September 21, 2020

10.5*	Employment Offer Letter, dated August 17, 2020, by and between the Registrant and David H. Mack, Ph.D.	S-1	333-248627	10.5	September 4, 2020

10.6*	Employment Offer Letter, dated August 17, 2020, by and between the Registrant and Winston Kung.	S-1	333-248627	10.6	September 4, 2020

10.7*	Employment Offer Letter, dated August 18, 2020, by and between the Registrant and Leila Alland, M.D.	S-1	333-248627	10.7	September 4, 2020

10.8*	Employment Offer Letter, dated August 18, 2020, by and between the Registrant and Deepika Jalota, Pharm.D.	S-1	333-248627	10.8	September 4, 2020

10.9*	Employee Incentive Compensation Plan.	S-1	333-248627	10.9	September 4, 2020

10.10*	Change in Control and Severance Policy.	S-1	333-248627	10.10	September 4, 2020

10.11*	Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 17, 2020, by and between the Registrant and David H. Mack, Ph.D.	S-1	333-248627	10.11	September 4, 2020

10.12*	Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 17, 2020, by and between the Registrant and Winston Kung.	S-1	333-248627	10.12	September 4, 2020

10.13*	Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 18, 2020, by and between the Registrant and Leila Alland, M.D.	S-1	333-248627	10.13	September 4, 2020

10.14*	Amended and Restated Change in Control and Severance Policy Participation Agreement, dated August 18, 2020, by and between the Registrant and Deepika Jalota, Pharm.D.	S-1	333-248627	10.14	September 4, 2020

10.15*	Outside Director Compensation Policy.	S-1/A	333-248627	10.15	September 21, 2020


10.16*	Consulting Agreement, dated January 1, 2016, by and between the Registrant and Arnold Levine, Ph.D.	S-1	333-248627	10.16	September 4, 2020

10.17*	Consulting Agreement, dated July 14, 2017, by and between the Registrant and Richard Heyman, Ph.D.	S-1	333-248627	10.17	September 4, 2020

10.18	Lease Agreement, dated March 3, 2015, by and between the Registrant and Cedar Brook 2005, LP, as amended by the First Amendment to Lease dated April 24, 2017.	S-1	333-248627	10.18	September 4, 2020

10.19	Lease Agreement, dated January 8, 2021, by and between the Registrant and BMR-ONE RESEARCH WAY LLC.	10-K	001-39539	10.19	March 3, 2021

31.1	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1†	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2†	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	Inline XBRL Instance Document

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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