SEC Filing | Aldeyra Therapeutics, Inc.

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 June 30, 2022

☐ 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: 001-36332

ALDEYRA THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)


Delaware		20-1968197
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

131 Hartwell Avenue, Suite 320
Lexington, MA		02421
(Address of principal executive offices)		(Zip Code)

(781) 761-4904

(Registrant’s telephone number, including area code)

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


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $0.001 par value per share	ALDX	The Nasdaq Stock Market LLC

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 the “large accelerated filer,” “accelerated filer,” “non-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 2, 2022 , there were 58,323,116 shares of the registrant’s common stock issued and outstanding.

Aldeyra Therapeutics, Inc.

Quarterly Report on Form 10-Q

For the Quarter Ended June 30, 2022

INDEX


		Page
PART I – FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Financial Statements:	3
	Consolidated Balance Sheets at June 30, 2022 (Unaudited) and December 31, 2021	3
	Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (Unaudited)	4
	Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2022 and 2021 (Unaudited)	5
	Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021 (Unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements	9
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	24
ITEM 4.	Controls and Procedures	24
PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	25
ITEM 1A.	Risk Factors	25
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
ITEM 3.	Defaults Upon Senior Securities	67
ITEM 4.	Mine Safety Disclosures	67
ITEM 5.	Other Information	67
ITEM 6.	Exhibits	67
Signatures		68

Part I – FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED BALANCE SHEETS


	June 30,
	2022			December 31,
	(unaudited)			2021
ASSETS
Current assets:
Cash and cash equivalents	$	42,012,015		$	104,790,989
Cash equivalent - reverse repurchase agreements		79,000,000			125,000,000
Marketable securities		75,677,040			—
Prepaid expenses and other current assets		4,052,355			2,961,781
Total current assets		200,741,410			232,752,770
Right-of-use assets		239,873			351,863
Fixed assets, net		34,041			32,487
Total assets	$	201,015,324		$	233,137,120

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	264,225		$	1,019,702
Accrued expenses		10,810,155			10,523,353
Current portion of long-term debt		4,925,765			—
Current portion of operating lease liabilities		242,636			229,607
Total current liabilities		16,242,781			11,772,662
Operating lease liabilities, long-term		—			125,232
Long-term debt, net of current portion		10,743,535			15,503,703
Total liabilities		26,986,316			27,401,597
Commitments and contingencies (Notes 13, 14, and 15)
Stockholders' equity:
Preferred stock, $0.001 par value, 15,000,000 shares authorized, none issued and outstanding		—			—
Common stock, $0.001 par value; 150,000,000 authorized and 58,301,491 and 58,081,215 shares issued and outstanding, respectively		58,301			58,081
Additional paid-in capital		503,517,715			500,369,444
Accumulated other comprehensive loss		(285,763	)		—
Accumulated deficit		(329,261,245	)		(294,692,002	)
Total stockholders’ equity		174,029,008			205,735,523
Total liabilities and stockholders’ equity	$	201,015,324		$	233,137,120

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

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Operating expenses:
Research and development	$	14,570,654		$	11,474,446		$	26,804,975		$	19,200,788
General and administrative		3,144,280			3,068,652			7,393,667			6,173,355
Loss from operations		(17,714,934	)		(14,543,098	)		(34,198,642	)		(25,374,143	)

Other income (expense):
Interest income		344,378			39,665			445,760			63,427
Interest expense		(410,395	)		(433,477	)		(816,361	)		(916,056	)
Total other income (expense), net		(66,017	)		(393,812	)		(370,601	)		(852,629	)
Net loss	$	(17,780,951	)	$	(14,936,910	)	$	(34,569,243	)	$	(26,226,772	)
Net loss per share - basic and diluted	$	(0.30	)	$	(0.28	)	$	(0.59	)	$	(0.52	)
Weighted average common shares outstanding - basic and diluted		58,301,491			54,280,393			58,299,686			49,979,545

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

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Net loss	$	(17,780,951	)	$	(14,936,910	)	$	(34,569,243	)	$	(26,226,772	)
Other comprehensive loss:
Unrealized loss on marketable securities, net of tax		(224,086	)		—			(285,763	)		—
Total other comprehensive loss	$	(224,086	)	$	—		$	(285,763	)	$	—
Comprehensive loss	$	(18,005,037	)	$	(14,936,910	)	$	(34,855,006	)	$	(26,226,772	)

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

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)


	Stockholders' Equity
	Common Stock							Accumulated
	Shares		Amount		Additional Paid-in Capital			Other Comprehensive Income/(Loss), net of tax			Accumulated Deficit			Total Stockholders' Equity
Balance, December 31, 2021		58,081,215	$	58,081	$	500,369,444		$	—		$	(294,692,002	)	$	205,735,523
Stock-based compensation		—		—		3,125,167			—			—			3,125,167
Release of restrictions on Helio founders’ shares		10,890		11		(11	)		—			—			—
Issuance of common stock, employee stock purchase plan		6,860		7		23,317			—			—			23,324
Issuance of common stock, vested restricted stock units		202,526		202		(202	)		—			—			—
Other comprehensive loss		—		—		—			(285,763	)		—			(285,763	)
Net loss		—		—		—			—			(34,569,243	)		(34,569,243	)
Balance, June 30, 2022		58,301,491	$	58,301	$	503,517,715		$	(285,763	)	$	(329,261,245	)	$	174,029,008

Balance, December 31, 2020		38,667,491	$	38,667	$	296,385,619		$	—		$	(236,915,728	)	$	59,508,558
Stock-based compensation		—		—		3,465,555			—			—			3,465,555
Release of restrictions on Helio founders’ shares		70,398		70		(70	)		—			—			—
Issuance of common stock in connection with Helio Vision, Inc. acquisition milestone		246,562		247		2,499,744			—			—			2,499,991
Issuance of common stock, net of issuance costs		18,091,947		18,092		189,793,519			—			—			189,811,611
Issuance of common stock, exercise of stock options		631,217		631		4,610,496			—			—			4,611,127
Issuance of common stock, employee stock purchase plan		2,786		3		9,872			—			—			9,875
Issuance of common stock, vested restricted stock units		286,944		287		(287	)		—			—			—
Other comprehensive loss		—		—		—			—			—			—
Net loss		—		—		—			—			(26,226,772	)		(26,226,772	)
Balance, June 30, 2021		57,997,345	$	57,997	$	496,764,448		$	—		$	(263,142,500	)	$	233,679,945

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)


	Stockholders' Equity
	Common Voting Stock							Accumulated Other
	Shares		Amount		Additional Paid-in Capital			Comprehensive Income/(Loss), net of tax			Accumulated Deficit			Total Stockholders' Equity
Balance, March 31, 2022		58,301,491	$	58,301	$	502,172,392		$	(61,677	)	$	(311,480,294	)	$	190,688,722
Stock-based compensation		—		—		1,345,323			—			—			1,345,323
Other comprehensive loss		—		—		—			(224,086	)		—			(224,086	)
Net loss		—		—		—			—			(17,780,951	)		(17,780,951	)
Balance, June 30, 2022		58,301,491	$	58,301	$	503,517,715		$	(285,763	)	$	(329,261,245	)	$	174,029,008

Balance, March 31, 2021		47,651,035	$	47,651	$	374,232,411		$	—		$	(248,205,590	)	$	126,074,472
Stock-based compensation		—		—		2,173,385			—			—			2,173,385
Release of restrictions on Helio founders’ shares		35,393		35		(35	)		—			—			—
Issuance of common stock, net of issuance costs		10,223,526		10,224		119,751,937			—			—			119,762,161
Issuance of common stock, exercise of stock options		87,391		87		606,750			—			—			606,837
Other comprehensive loss		—		—		—			—			—			—
Net loss		—		—		—			—			(14,936,910	)		(14,936,910	)
Balance, June 30, 2021		57,997,345	$	57,997	$	496,764,448		$	—		$	(263,142,500	)	$	233,679,945

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Six Months Ended June 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(34,569,243	)	$	(26,226,772	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		3,230,913			4,705,218
Non-cash interest expense		165,597			243,873
Net amortization of premium on debt securities available for sale		(8,614	)		—
Depreciation and amortization expense		126,753			134,557
Change in operating assets and liabilities:
Prepaid expenses and other current assets		(1,090,574	)		(1,254,761	)
Accounts payable		(755,477	)		712,823
Accrued expenses and other liabilities		68,853			(859,046	)
Net cash used in operating activities		(32,831,792	)		(22,544,108	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of fixed assets		(16,317	)		(7,806	)
Purchases of marketable securities		(87,954,189	)		—
Sales and maturities of marketable securities		12,000,000			—
Net cash used in investing activities		(75,970,506	)		(7,806	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs		—			189,811,611
Proceeds from exercise of stock options		—			4,611,127
Proceeds from employee stock purchase plan		23,324			9,875
Net cash provided by financing activities		23,324			194,432,613
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(108,778,974	)		171,880,699
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		229,790,989			77,858,311
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	121,012,015		$	249,739,010

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: