cogt-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-38443

 

Cogent Biosciences, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

46-5308248

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

200 Cambridge Park Drive, Suite 2500

Cambridge, Massachusetts

 

02140

(Address of principal executive offices)

 

(Zip code)

(617) 945-5576

(Registrant’s telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.001 Par Value

 

COGT

 

The Nasdaq Global Select Market

 

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.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

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  

 

As of November 6, 2020 (post-effectiveness of the registrant’s 1-for-4 reverse stock split), the registrant had 11,342,400 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


Summary of the Material Risks Associated with Our Business

Our business is subject to numerous risks and uncertainties that you should be aware of in evaluating our business. These risks include, but are not limited to, the following:

 

 

Our business is highly dependent on the success of our future PLX9486 programs for the treatment of systemic mastocytosis (“SM”) and advanced gastrointestinal stromal tumors (“GIST”) and any other potential product candidates that we develop.

 

 

Since the number of patients that we have dosed in our Phase 1 clinical trials is small, the results from such clinical trials may be less reliable than results achieved in larger clinical trials, which may hinder our efforts to obtain regulatory approval for our product candidates.

 

 

Clinical trials are expensive, time-consuming, and difficult to design and implement.

 

 

The current pandemic of the novel coronavirus, or COVID-19, and the future outbreak of other highly infectious or contagious diseases, could seriously harm our development efforts, increase our costs and expenses and have a material adverse effect on our business, financial condition and results of operations.

 

 

We face significant competition from other biotechnology and pharmaceutical companies, and our operating results will suffer if we fail to compete effectively.

 

 

We may choose not to develop a potential product candidate, or we may suspend, deprioritize or terminate one or more discovery programs or preclinical or clinical product candidates or programs.

 

 

The FDA may disagree with our regulatory plan and we may fail to obtain regulatory approval of our product candidates.

 

 

Coverage and reimbursement may be limited or unavailable in certain market segments for our product candidates, which could make it difficult for us to sell our product candidates, if approved, profitably.

 

 

We contract with third parties for the manufacture of our drug candidates for preclinical development and clinical trials. This reliance on third parties increases the risk that we will not have sufficient quantities of our drug candidates or such quantities at an acceptable cost, which could delay, prevent or impair our development or commercialization efforts.

 

 

The third parties upon whom we rely for the supply of the API, drug substance and drug product used in PLX9486 are our sole source of supply, and the loss of any of these suppliers could significantly harm our business.

 

 

Our internal computer systems, or those used by our third-party contract research organizations (“CROs”) or other contractors or consultants, may fail or suffer security breaches, which could result in a material disruption of the development programs of our product candidates.

 

 

We may form or seek collaborations or strategic alliances or enter into additional licensing arrangements in the future, and we may not realize the benefits of such collaborations, alliances or licensing arrangements.

 

 

If our efforts to protect the proprietary nature of the intellectual property related to our technologies are not adequate, we may not be able to compete effectively in our market.

 

 

We have incurred net losses in every year since our inception and anticipate that we will continue to incur net losses in the future.

 

 

The price of our stock may be volatile, and you could lose all or part of your investment.

 

The summary risk factors described above should be read together with the text of the full risk factors below, in the section entitled “Risk Factors” and the other information set forth in this Quarterly Report on Form 10-Q, including our consolidated financial statements and the related notes, as well as in other documents that we file with the SEC. The risks summarized above or described in full below are not the only risks that we face. Additional risks and uncertainties not precisely known to us, or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, results of operations and future growth prospects.


i


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views with respect to, among other things, our operations and financial performance. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plan, objectives of management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “should,” “expects,” “might,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “seek,” “would” or “continue,” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. 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. Some of the key factors that could cause actual results to differ from our expectations include, but are not limited to, the following:

 

the potential impacts of raising additional capital, including dilution to our existing stockholders, restrictions our operations or requirements that we relinquish rights to our technologies or product candidates;

 

business interruptions resulting from the coronavirus disease (“COVID-19”) outbreak or similar public health crises, which could cause a disruption of the development of our product candidates and adversely impact our business;

 

the success, cost, and timing of our product development activities and clinical trials;

 

the timing of our planned regulatory submissions to the FDA for our product candidate PLX9486;

 

our ability to obtain and maintain regulatory approval for our PLX9486 product candidate and any other product candidates we may develop, and any related restrictions, limitations, and/or warnings in the label of an approved product candidate;

 

the potential for our identified research priorities to advance our PLX9486 product candidate;

 

the ability to license additional intellectual property relating to our product candidates from third-parties and to comply with our existing license agreements and collaboration agreements;

 

the ability and willingness of our third-party research institution collaborators to continue research and development activities relating to our product candidates;

 

our ability to commercialize our products in light of the intellectual property rights of others;

 

our ability to obtain funding for our operations, including funding necessary to complete further development and commercialization of our product candidates;

 

the scalability and commercial viability of our manufacturing methods and processes;

 

the commercialization of our product candidates, if approved;

 

our plans to research, develop, and commercialize our product candidates;

 

our ability to attract collaborators with development, regulatory, and commercialization expertise;

 

future agreements with third parties in connection with the commercialization of our product candidates and any other approved product;

 

the size and growth potential of the markets for our product candidates, and our ability to serve those markets;

 

the rate and degree of market acceptance of our product candidates;

 

the pricing and reimbursement of our product candidates, if approved;

 

regulatory developments in the United States and foreign countries;

ii


 

our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately;

 

the success of competing therapies that are or may become available;

 

our ability to attract and retain key scientific or management personnel;

 

the accuracy of our estimates regarding expenses, future revenue, capital requirements, and needs for additional financing;

 

our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act;

 

our use of the proceeds from the initial public offering, the Concurrent Private Placement and the Series A Preferred Stock financing as defined herein; and

 

our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates.

These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

iii


Cogent Biosciences, Inc.

Table of Contents

 

 

 

Page

 

PART I—FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Non-Voting Convertible Preferred Stock and Stockholders’ Equity (Deficit)

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

33

Item 4.

Controls and Procedures

33

 

PART II—OTHER INFORMATION

 

Item 1.

Legal Proceedings

34

Item 1A.

Risk Factors

34

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

71

Item 6.

Exhibits

72

Signatures

74

 

 

 

iv


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

COGENT BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

129,420

 

 

$

37,424

 

Accounts receivable

 

 

 

 

 

2,000

 

Prepaid expenses and other current assets

 

 

3,996

 

 

 

1,167

 

Total current assets

 

 

133,416

 

 

 

40,591

 

Operating lease, right-of-use asset

 

 

5,046

 

 

 

5,285

 

Property and equipment, net

 

 

153

 

 

 

1,865

 

Restricted cash

 

 

1,255

 

 

 

1,255

 

Other assets

 

 

 

 

 

427

 

Total assets

 

$

139,870

 

 

$

49,423

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

639

 

 

$

3,183

 

Accrued expenses and other current liabilities

 

 

5,535

 

 

 

7,131

 

CVR liability (Note 3)

 

 

11,959

 

 

 

 

Operating lease liability

 

 

1,988

 

 

 

1,619

 

Deferred revenue

 

 

 

 

 

1,315

 

Total current liabilities

 

 

20,121

 

 

 

13,248

 

Operating lease liability, net of current portion

 

 

3,691

 

 

 

4,413

 

Total liabilities

 

 

23,812

 

 

 

17,661

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

Series A non-voting convertible preferred stock, $0.001 par value; 1,000,000 shares

   authorized; 163,325 and no shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

138,232

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 9,000,000 shares authorized; no shares issued

   or outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 150,000,000 shares authorized; 10,677,285

   shares and 7,665,763 shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

11

 

 

 

8

 

Additional paid-in capital

 

 

165,177

 

 

 

155,646

 

Accumulated deficit

 

 

(187,362

)

 

 

(123,892

)

Total stockholders’ equity (deficit)

 

 

(22,174

)

 

 

31,762

 

Total liabilities, convertible preferred stock and stockholders' equity (deficit)

 

$

139,870

 

 

$

49,423

 

 

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

1


 

COGENT BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Collaboration revenue

 

$

312

 

 

$

1,020

 

 

$

7,871

 

 

$

7,211

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

5,003

 

 

 

10,335

 

 

 

19,630

 

 

 

33,355

 

General and administrative

 

 

5,598

 

 

 

2,721

 

 

 

12,074

 

 

 

8,274

 

Acquired in-process research and development

 

 

46,910

 

 

 

 

 

 

46,910

 

 

 

 

Total operating expenses

 

 

57,511

 

 

 

13,056

 

 

 

78,614

 

 

 

41,629

 

Loss from operations

 

 

(57,199

)

 

 

(12,036

)

 

 

(70,743

)

 

 

(34,418

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

23

 

 

 

31

 

 

 

73

 

 

 

206

 

Gain on disposal of long-lived assets

 

 

7,463

 

 

 

82

 

 

 

7,470

 

 

 

82

 

Other income

 

 

239

 

 

 

 

 

 

239

 

 

 

 

Change in fair value of CVR liability

 

 

(509

)

 

 

 

 

 

(509

)

 

 

 

Total other income (expense), net

 

 

7,216

 

 

 

113

 

 

 

7,273

 

 

 

288

 

Net loss

 

$

(49,983

)

 

$

(11,923

)

 

$

(63,470

)

 

$

(34,130

)

Net loss per common share, basic and diluted

 

$

(5.07

)

 

$

(1.56

)

 

$

(7.56

)

 

$

(4.49

)

Weighted average common shares outstanding, basic and diluted

 

 

9,850,530

 

 

 

7,665,281

 

 

 

8,392,741

 

 

 

7,604,688

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(49,983

)

 

$

(11,923

)

 

$

(63,470

)

 

$

(34,130

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on marketable securities, net of tax

 

 

 

 

 

 

 

 

 

 

 

12

 

Total other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

12

 

Comprehensive loss

 

$

(49,983

)

 

$

(11,923

)

 

$

(63,470

)

 

$

(34,118

)

 

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

2


 

COGENT BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NON-VOTING CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(in thousands, except share amounts)

(unaudited)

 

 

 

Series A Non-Voting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balances at December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

7,665,763

 

 

$

8

 

 

$

155,646

 

 

$

(123,892

)

 

$

31,762

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

 

 

 

 

 

51,823

 

 

 

 

 

 

38

 

 

 

 

 

 

38

 

Issuance of common stock under

   Employee Stock Purchase Plan

 

 

 

 

 

 

 

 

 

14,252

 

 

 

 

 

 

35

 

 

 

 

 

 

35

 

Issuance of common stock, net of

   issuance costs

 

 

 

 

 

 

 

 

 

181,595

 

 

 

 

 

 

262

 

 

 

 

 

 

262

 

Acquisition and retirement of treasury stock

 

 

 

 

 

 

 

 

 

(207,961

)

 

 

 

 

 

(808

)

 

 

 

 

 

(808

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

507

 

 

 

 

 

 

507

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,094

)

 

 

(6,094

)

Balances at March 31, 2020

 

 

 

 

$

 

 

 

 

7,705,472

 

 

$

8

 

 

$

155,680

 

 

$

(129,986

)

 

$

25,702

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

 

 

 

 

 

85,012

 

 

 

 

 

 

62

 

 

 

 

 

 

62

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

870

 

 

 

 

 

 

870

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,393

)

 

 

(7,393

)

Balances at June 30, 2020

 

 

 

 

$

 

 

 

 

7,790,484

 

 

$

8

 

 

$

156,612

 

 

$

(137,379

)

 

$

19,241

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

$

 

 

 

 

201,017

 

 

$

 

 

$

335

 

 

$

 

 

$

335

 

Issuance of common stock under

   Employee Stock Purchase Plan

 

 

 

 

$

 

 

 

 

8,293

 

 

$

 

 

$

13

 

 

$

 

 

$

13

 

Issuance of common stock upon RSU vesting

 

 

 

 

$

 

 

 

 

56,933

 

 

$

 

 

$

 

 

$

 

 

$

 

Issuance of common stock to LPC

 

 

 

 

$

 

 

 

 

1,061,583

 

 

$

1

 

 

$

10,669

 

 

$

 

 

$

10,670

 

Issuance of Series A non-voting preferred stock

   and common stock in connection with the Kiq

   acquisition

 

 

44,687

 

 

$

39,325

 

 

 

 

1,558,975

 

 

$

2

 

 

$

5,486

 

 

$

 

 

$

5,488

 

Issuance of Series A non-voting preferred stock, net of

   issuance costs of $5,493

 

 

118,638

 

 

$

98,907

 

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

Dividend payable to common stockholders

 

 

 

 

$

 

 

 

 

 

 

 

$

 

 

$

(11,450

)

 

$

 

 

$

(11,450

)

Stock-based compensation expense

 

 

 

 

$

 

 

 

 

 

 

$

 

 

$

3,512

 

 

$

 

 

$

3,512

 

Net loss

 

 

 

 

$

 

 

 

 

 

 

$

 

 

$

 

 

$

(49,983

)

 

$

(49,983

)

Balances at September 30, 2020

 

 

163,325

 

 

$

138,232

 

 

 

 

10,677,285

 

 

$

11

 

 

$

165,177

 

 

$

(187,362

)

 

$

(22,174

)

 

 

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

3


 

COGENT BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NON-VOTING CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(in thousands, except share amounts)

(unaudited)

 

 

 

 

Series A Non-Voting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balances at December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

7,514,492

 

 

$

8

 

 

$

152,297

 

 

$

(12

)

 

$

(92,059

)

 

$

60,234

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

 

 

 

 

 

15,213

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

11

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

726

 

 

 

 

 

 

 

 

 

726

 

Unrealized gains on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,691

)

 

 

(11,691

)

Balances at March 31, 2019

 

 

 

 

$

 

 

 

 

7,529,705

 

 

$

8

 

 

$

153,034

 

 

$

(2

)

 

$

(103,750

)

 

$

49,290

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

 

 

 

 

 

135,433

 

 

 

 

 

 

97

 

 

 

 

 

 

 

 

 

97

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

885

 

 

 

 

 

 

 

 

 

885

 

Unrealized gains on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,516

)

 

 

(10,516

)

Balances at June 30, 2019

 

 

 

 

$

 

 

 

 

7,665,138

 

 

$

8

 

 

$

154,016

 

 

$

 

 

$

(114,266

)

 

$

39,758

 

Issuance of common stock upon exercise of

   stock options

 

 

 

 

 

 

 

 

 

625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

788

 

 

 

 

 

 

 

 

 

788

 

Unrealized gains on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,923

)

 

 

(11,923

)

Balances at September 30, 2019

 

 

 

 

$

 

 

 

 

7,665,763

 

 

$

8

 

 

$

154,804

 

 

$

 

 

$

(126,189

)

 

$

28,623

 

 

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

4


 

COGENT BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(63,470

)

 

$

(34,130

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

703

 

 

 

979

 

Stock-based compensation expense

 

 

5,151

 

 

 

2,399

 

Realized loss on sales of marketable securities

 

 

 

 

 

2

 

Noncash consideration received from a customer

 

 

(808

)

 

 

 

Noncash portion of acquired in-process research and development

 

 

44,812

 

 

 

 

Net amortization (accretion) of premiums (discounts) on marketable securities

 

 

 

 

 

(55

)

Gain on disposal of long-lived assets

 

 

(7,470

)

 

 

(82

)

Change in fair value of CVR liability

 

 

509

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,000

 

 

 

788

 

Prepaid expenses and other current assets

 

 

(2,769

)

 

 

(476

)

Operating lease, right-of-use asset

 

 

239

 

 

 

1,016

 

Other assets

 

 

427

 

 

 

(428

)

Accounts payable

 

 

(2,544

)

 

 

75

 

Accrued expenses and other current liabilities

 

 

(1,596

)

 

 

1,167

 

Operating lease liability

 

 

(353

)

 

 

(1,092

)

Deferred revenue

 

 

(1,315

)

 

 

(3,232

)

Net cash used in operating activities

 

 

(26,484

)

 

 

(33,069

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

 

 

 

(20

)

Proceeds from sale of property and equipment

 

 

320

 

 

 

204

 

Proceeds from sale of BOXR Platform assets

 

 

8,100

 

 

 

 

Proceeds from maturities and sales of marketable securities

 

 

 

 

 

22,988

 

Net cash provided by investing activities

 

 

8,420