10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

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

For the quarterly period ended June 30, 2022

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: 001-36644

 

CALITHERA BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

27-2366329

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

343 Oyster Point Blvd., Suite 200

South San Francisco, CA 94080

(Address of principal executive offices including zip code)

Registrant’s telephone number, including area code: (650) 870-1000

 

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, 0.0001 par value

 

CALA

 

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, a 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 August 11, 2022 the registrant had 4,865,134 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Calithera Biosciences, Inc.

Quarterly Report on Form 10-Q

For the Quarter Ended June 30, 2022

INDEX

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

3

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets at June 30, 2022, and December 31, 2021

 

3

 

 

Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021

 

4

 

 

Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2022 and 2021

 

5

 

 

Condensed Consolidated Statements of Stockholders’(Deficit) Equity for the Three and Six Months Ended June 30, 2022 and 2021

 

6

 

 

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021

 

8

 

 

Notes to Condensed Consolidated Financial Statements

 

9

 

 

 

 

 

Item 2.

 

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

 

27

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

37

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

37

 

 

 

 

 

PART II. OTHER INFORMATION

 

39

 

 

 

Item 1.

 

Legal Proceedings

 

39

 

 

 

 

 

Item 1A.

 

Risk Factors

 

39

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

70

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

70

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

70

 

 

 

 

 

Item 5.

 

Other Information

 

70

 

 

 

 

 

Item 6.

 

Exhibits

 

71

 

 

 

 

 

SIGNATURES

 

73

 

 

 

 

2


 

PART I. - FINANCIAL INFORMATION
Item 1. Fina
ncial Statements

 

Calithera Biosciences, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share amounts)

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

41,789

 

 

$

59,537

 

Prepaid expenses and other current assets

 

1,035

 

 

 

1,915

 

Total current assets

 

42,824

 

 

 

61,452

 

Restricted cash

 

270

 

 

 

270

 

Property and equipment, net

 

538

 

 

 

556

 

Operating lease right-of-use asset

 

1,926

 

 

 

2,478

 

Total assets

$

45,558

 

 

$

64,756

 

Liabilities, Convertible Preferred Stock and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

990

 

 

$

3,650

 

Accrued and other liabilities

 

7,904

 

 

 

10,356

 

Total current liabilities

 

8,894

 

 

 

14,006

 

Noncurrent operating lease liability

 

917

 

 

 

1,666

 

Warrant liabilities

 

496

 

 

 

 

Total liabilities

 

10,307

 

 

 

15,672

 

Commitments and contingencies

 

 

 

 

 

Convertible preferred stock; $0.0001 par value; 10,000 shares authorized as of
   June 30, 2022 and December 31, 2021;
0 and 1,000 shares issued
   and outstanding as of June 30, 2022 and December 31, 2021, respectively;
   $
35,000 liquidation preference as of June 30, 2022 and December 31, 2021 (Note 7)

 

 

 

 

40,702

 

Stockholders’ equity:

 

 

 

 

 

Convertible preferred stock; $0.0001 par value; 10,000 shares authorized as of
   June 30, 2022 and December 31, 2021;
1,000 and 0 shares issued
   and outstanding as of June 30, 2022 and December 31, 2021, respectively;
   $
35,000 liquidation preference as of June 30, 2022 and December 31, 2021 (Note 7)

 

22,342

 

 

 

 

Common stock, $0.0001 par value, 200,000 shares authorized
   as of June 30, 2022 and December 31, 2021;
   
4,865 and 3,857 shares issued and outstanding as
   of June 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

Additional paid-in capital

 

508,787

 

 

 

499,708

 

Accumulated deficit

 

(495,878

)

 

 

(491,326

)

Total stockholders’ equity

 

35,251

 

 

 

8,382

 

Total liabilities, convertible preferred stock and stockholders’ equity

$

45,558

 

 

$

64,756

 

 

 

 

 

 

 

See accompanying notes.

3


 

Calithera Biosciences, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

License revenue

$

 

 

$

3,000

 

 

$

 

 

$

3,000

 

Total revenue

 

 

 

 

3,000

 

 

 

 

 

 

3,000

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

7,758

 

 

 

12,820

 

 

 

17,324

 

 

 

28,159

 

General and administrative

 

3,618

 

 

 

4,487

 

 

 

7,878

 

 

 

9,915

 

Total operating expenses

 

11,376

 

 

 

17,307

 

 

 

25,202

 

 

 

38,074

 

Loss from operations

 

(11,376

)

 

 

(14,307

)

 

 

(25,202

)

 

 

(35,074

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Transaction costs allocable to warrant liabilities

 

(475

)

 

 

 

 

 

(475

)

 

 

 

Change in fair value of warrant liabilities

 

2,706

 

 

 

 

 

 

2,706

 

 

 

 

Interest and other income (expense), net

 

68

 

 

 

(4

)

 

 

59

 

 

 

368

 

Other income (expense), net

 

2,299

 

 

 

(4

)

 

 

2,290

 

 

 

368

 

Net loss

 

(9,077

)

 

 

(14,311

)

 

 

(22,912

)

 

 

(34,706

)

Deemed contribution from Series A preferred
   stock extinguishment

 

18,360

 

 

 

 

 

 

18,360

 

 

 

 

Adjustment to allocate undistributed earnings to
   participating security

 

(1,362

)

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

$

7,921

 

 

$

(14,311

)

 

$

(4,552

)

 

$

(34,706

)

Net income (loss) per share attributable to
   common stockholders - basic

$

1.63

 

 

$

(3.86

)

 

$

(1.04

)

 

$

(9.49

)

Net loss per share attributable to
   common stockholders - diluted

$

(1.59

)

 

$

(3.86

)

 

$

(4.48

)

 

$

(9.49

)

Weighted average common shares used to
   compute net income (loss) per share attributable to
   common stockholders - basic

 

4,863

 

 

 

3,703

 

 

 

4,396

 

 

 

3,658

 

Weighted average common shares used to
   compute net loss per share attributable to
   common stockholders - diluted

 

5,699

 

 

 

3,703

 

 

 

5,120

 

 

 

3,658

 

See accompanying notes.

4


 

Calithera Biosciences, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(In thousands)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

$

(9,077

)

 

$

(14,311

)

 

$

(22,912

)

 

$

(34,706

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

Net unrealized loss on
   available-for-sale securities

 

 

 

 

 

 

 

 

 

 

(3

)

Total comprehensive loss

$

(9,077

)

 

$

(14,311

)

 

$

(22,912

)

 

$

(34,709

)

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

5


 

Calithera Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ (Deficit) Equity

(Unaudited)

(In thousands)

 

 

 

Three Months Ended June 30, 2022

 

 

 

Convertible Preferred Stock

 

 

 

Convertible Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Deficit

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
(Deficit) Equity

 

Balance at March 31, 2022

 

 

1,000

 

 

$

40,702

 

 

 

 

 

 

$

 

 

 

3,936

 

 

$

 

 

$

502,025

 

 

$

(505,161

)

 

$

 

 

$

(3,136

)

Reclassification of convertible
   preferred stock to shareholders'
   equity (Note 7)

 

 

(1,000

)

 

 

(40,702

)

 

 

 

1,000

 

 

 

40,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,702

 

Deemed contribution from Series
   A preferred stock extinguishment
   (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

(18,360

)

 

 

 

 

 

 

 

 

 

 

 

18,360

 

 

 

 

 

 

 

Issuance of common stock in
   connection with public
   offering, net of underwriting
   commissions and issuance
   costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

926

 

 

 

 

 

 

5,775

 

 

 

 

 

 

 

 

 

5,775

 

Issuance of common stock
   pursuant to equity incentive
   plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

12

 

 

 

 

 

 

 

 

 

12

 

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

975

 

 

 

 

 

 

 

 

 

975

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,077

)

 

 

 

 

 

(9,077

)

Balance at June 30, 2022

 

 

 

 

$

 

 

 

 

1,000

 

 

$

22,342

 

 

 

4,865

 

 

$

 

 

$

508,787

 

 

$

(495,878

)

 

$

 

 

$

35,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021

 

 

 

Convertible Preferred Stock

 

 

 

Convertible Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Deficit

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

Balance at March 31, 2021

 

 

 

 

$

 

 

 

 

 

 

$

 

 

 

3,694

 

 

$

 

 

$

490,791

 

 

$

(396,633

)

 

$

 

 

$

94,158

 

Issuance of common stock in
   connection with at-the-market
   offering, net of underwriting
   commissions and issuance
   costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

400

 

 

 

 

 

 

 

 

 

400

 

Issuance of common stock
   pursuant to equity incentive
   plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

122

 

 

 

 

 

 

 

 

 

122

 

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,644

 

 

 

 

 

 

 

 

 

2,644

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,311

)

 

 

 

 

 

(14,311

)

Balance at June 30, 2021

 

 

 

 

$

 

 

 

 

 

 

$

 

 

 

3,705

 

 

$

 

 

$

493,957

 

 

$

(410,944

)

 

$

 

 

$

83,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


See accompanying notes.

6


 

Calithera Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ (Deficit) Equity

(Unaudited)

(In thousands)

 

 

 

Six Months Ended June 30, 2022

 

 

 

Convertible Preferred Stock

 

 

 

Convertible Preferred Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Deficit

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Total
Stockholders'
Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2021

 

 

1,000

 

 

$

40,702

 

 

 

 

 

 

$

 

 

 

3,857

 

 

$

 

 

$

499,708

 

 

$

(491,326

)

 

$

 

 

$

8,382

 

Reclassification of convertible
   preferred stock to shareholders'
   equity (Note 7)

 

 

(1,000

)

 

 

(40,702

)

 

 

 

1,000

 

 

 

40,702

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,702

 

Deemed contribution from Series
   A preferred stock extinguishment
   (Note 7)

 

 

 

 

 

 

 

 

 

 

 

 

(18,360

)

 

 

 

 

 

 

 

 

 

 

 

18,360

 

 

 

 

 

 

 

Issuance of common stock in
   connection with public
   offering, net of underwriting
   commissions and issuance
   costs