10-Q
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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, 2023

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: 001-36332

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 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 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 1, 2023, there were 58,595,850 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, 2023

INDEX

 

 

Page

PART I – FINANCIAL INFORMATION

ITEM 1.

Condensed Consolidated Financial Statements:

3

 

Consolidated Balance Sheets at June 30, 2023 (Unaudited) and December 31, 2022

3

 

Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022 (Unaudited)

4

 

Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022 (Unaudited)

5

 

Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022 (Unaudited)

6

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (Unaudited)

8

 

Notes to Condensed Consolidated Financial Statements

9

ITEM 2.

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

19

ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

26

ITEM 4.

Controls and Procedures

26

PART II – OTHER INFORMATION

 

ITEM 1.

Legal Proceedings

27

ITEM 1A.

Risk Factors

27

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

73

ITEM 3.

Defaults Upon Senior Securities

73

ITEM 4.

Mine Safety Disclosures

73

ITEM 5.

Other Information

73

ITEM 6.

Exhibits

74

Signatures

75

 

2


 

Part I – FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements.

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

June 30,

 

 

 

 

 

 

2023

 

 

December 31,

 

 

 

(unaudited)

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

151,675,561

 

 

$

144,419,364

 

Marketable securities

 

 

 

 

 

29,881,520

 

Prepaid expenses and other current assets

 

 

3,803,557

 

 

 

6,722,229

 

Total current assets

 

 

155,479,118

 

 

 

181,023,113

 

Right-of-use assets

 

 

127,448

 

 

 

249,265

 

Fixed assets, net

 

 

9,784

 

 

 

19,279

 

Total assets

 

$

155,616,350

 

 

$

181,291,657

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

270,816

 

 

$

133,625

 

Accrued expenses

 

 

9,310,196

 

 

 

14,065,885

 

Current portion of long-term debt

 

 

5,894,317

 

 

 

911,763

 

Operating lease liabilities

 

 

129,785

 

 

 

249,265

 

Total current liabilities

 

 

15,605,114

 

 

 

15,360,538

 

Long-term debt, net of current portion

 

 

10,128,037

 

 

 

14,923,090

 

Total liabilities

 

 

25,733,151

 

 

 

30,283,628

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

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 58,801,207
   and
58,560,078 shares issued and outstanding, respectively

 

 

58,801

 

 

 

58,560

 

Additional paid-in capital

 

 

511,143,713

 

 

 

507,770,045

 

Accumulated other comprehensive loss

 

 

 

 

 

(103,938

)

Accumulated deficit

 

 

(381,319,315

)

 

 

(356,716,638

)

Total stockholders’ equity

 

 

129,883,199

 

 

 

151,008,029

 

Total liabilities and stockholders’ equity

 

$

155,616,350

 

 

$

181,291,657

 

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

3


 

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

2023

 

 

2022

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

6,962,907

 

 

$

14,570,654

 

$

18,198,767

 

 

$

26,804,975

 

General and administrative

 

 

3,379,750

 

 

 

3,144,280

 

 

8,947,167

 

 

 

7,393,667

 

Loss from operations

 

 

(10,342,657

)

 

 

(17,714,934

)

 

(27,145,934

)

 

 

(34,198,642

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,882,800

 

 

 

344,378

 

 

3,561,685

 

 

 

445,760

 

Interest expense

 

 

(527,141

)

 

 

(410,395

)

 

(1,018,428

)

 

 

(816,361

)

Total other income (expense), net

 

 

1,355,659

 

 

 

(66,017

)

 

2,543,257

 

 

 

(370,601

)

Net loss

 

$

(8,986,998

)

 

$

(17,780,951

)

$

(24,602,677

)

 

$

(34,569,243

)

Net loss per share - basic and diluted

 

$

(0.15

)

 

$

(0.30

)

$

(0.42

)

 

$

(0.59

)

Weighted average common shares outstanding - basic and diluted

 

 

58,791,920

 

 

 

58,301,491

 

 

58,791,762

 

 

 

58,299,686

 

 

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

4


 

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

 

$

(8,986,998

)

 

$

(17,780,951

)

 

$

(24,602,677

)

 

$

(34,569,243

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities, net of tax

 

 

 

 

 

(224,086

)

 

 

103,938

 

 

 

(285,763

)

Total other comprehensive (loss) income

 

$

 

 

$

(224,086

)

 

$

103,938

 

 

$

(285,763

)

Comprehensive loss

 

$

(8,986,998

)

 

$

(18,005,037

)

 

$

(24,498,739

)

 

$

(34,855,006

)

 

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

5


 

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, 2022

 

 

58,560,078

 

 

$

58,560

 

 

$

507,770,045

 

 

$

(103,938

)

 

$

(356,716,638

)

 

$

151,008,029

 

Stock-based compensation

 

 

 

 

 

 

 

 

3,316,058

 

 

 

 

 

 

 

 

 

3,316,058

 

Issuance of common stock, exercise
   of stock options

 

 

9,604

 

 

 

9

 

 

 

5,283

 

 

 

 

 

 

 

 

 

5,292

 

Issuance of common stock, employee
   stock purchase plan

 

 

16,272

 

 

 

17

 

 

 

52,542

 

 

 

 

 

 

 

 

 

52,559

 

Issuance of common stock, vested
   restricted stock awards

 

 

215,253

 

 

 

215

 

 

 

(215

)

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

103,938

 

 

 

 

 

 

103,938

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,602,677

)

 

 

(24,602,677

)

Balance, June 30, 2023

 

 

58,801,207

 

 

$

58,801

 

 

$

511,143,713

 

 

$

 

 

$

(381,319,315

)

 

$

129,883,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 awards

 

 

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

 

 

6


 

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)

 

 

Stockholders' Equity

 

 

 

Common Stock

 

 

 

 

 

Accumulated
Other

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional
Paid-in Capital

 

 

Comprehensive
Income/(Loss),
net of tax

 

 

Accumulated
Deficit

 

 

Total
Stockholders'
Equity

 

Balance, March 31, 2023

 

 

58,791,603

 

 

$

58,792

 

 

$

509,516,738

 

 

$

 

 

$

(372,332,317

)

 

$

137,243,213

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,621,692

 

 

 

 

 

 

 

 

 

1,621,692

 

Issuance of common stock, exercise
   of stock options

 

 

9,604

 

 

 

9

 

 

 

5,283

 

 

 

 

 

 

 

 

 

5,292

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,986,998

)

 

 

(8,986,998

)

Balance, June 30, 2023

 

 

58,801,207

 

 

$

58,801

 

 

$

511,143,713

 

 

$

 

 

$

(381,319,315

)

 

$

129,883,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

7


 

ALDEYRA THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 

 

 

Six Months Ended June 30,

 

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(24,602,677

)

 

$

(34,569,243

)

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

 

 

 

 

 

 

Stock-based compensation

 

 

5,763,896

 

 

 

3,230,913

 

Non-cash interest expense

 

 

187,501

 

 

 

165,597

 

Net amortization of premium on marketable securities

 

 

(14,542

)

 

 

(8,614

)

Depreciation and amortization expense

 

 

131,312

 

 

 

126,753

 

Change in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

2,918,672

 

 

 

(1,090,574

)

Accounts payable

 

 

137,191

 

 

 

(755,477

)

Accrued expenses and other liabilities

 

 

(7,323,007

)

 

 

68,853

 

Net cash used in operating activities

 

 

(22,801,654

)

 

 

(32,831,792

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Acquisitions of fixed assets

 

 

 

 

 

(16,317

)

Purchases of marketable securities

 

 

 

 

 

(87,954,189

)

Maturities of marketable securities

 

 

30,000,000

 

 

 

12,000,000

 

Net cash provided by (used in) investing activities

 

 

30,000,000

 

 

 

(75,970,506

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

5,292

 

 

 

 

Proceeds from employee stock purchase plan

 

 

52,559

 

 

 

23,324

 

Net cash provided by financing activities

 

 

57,851

 

 

 

23,324

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

7,256,197

 

 

 

(108,778,974

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

144,419,364

 

 

 

229,790,989

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

151,675,561

 

 

$

121,012,015

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

823,521

 

 

$

652,167

 

 

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

8


 

ALDEYRA THERAPEUTICS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.
NATURE OF BUSINESS

Aldeyra Therapeutics, Inc., together with its wholly-owned subsidiaries (the “Company” or “Aldeyra”), a Delaware corporation, is a clinical-stage biotechnology company devoted to discovering innovative therapies designed to treat immune-mediated diseases.

The Company’s principal activities to date include research and development activities along with related general business planning, including raising capital.

2.
BASIS OF PRESENTATION

The accompanying interim condensed consolidated financial statements and related disclosures are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the Securities and Exchange Commission on March 9, 2023 (2022 Form 10-K).

The financial information as of June 30, 2023, and the three and six months ended June 30, 2023 and 2022, respectively, is unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for the fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented, have been included. The balance sheet data as of December 31, 2022 was derived from audited consolidated financial statements. The results of the Company’s operations for any interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full fiscal year.

 

Based on its current operating plan, the Company believes that its cash and cash equivalents as of June 30, 2023, will be sufficient to fund the Company's currently projected operating expenses into the fourth quarter of 2024. The Company’s assessment of its liquidity and capital resources includes an estimate of the financial impacts of these changes. The Company has based its projections of operating capital requirements on its current operating plan, which includes several assumptions that may prove to be incorrect, and the Company may use all of its available capital resources sooner than the Company expects. The Company will need to secure additional funding in the future, from one or more equity or debt financings, collaborations, or other sources, in order to carry out all of the Company’s planned research and development activities and regulatory activities; commence or continue ongoing commercialization activities, including manufacturing, sales, marketing and distribution, for any of our product candidates for which the Company may receive marketing approval; or conduct any substantial, additional development requirements requested by the Food and Drug Administration (FDA). Additional funding may not be available to the Company on acceptable terms, or at all. If the Company is unable to secure additional funding, it will be required to significantly decrease the amount of planned expenditures and may be required to cease operations.

Curtailment of operations would cause significant delays in the Company’s efforts to develop and introduce its products to market, which is critical to the realization of its business plan and the future operations of the Company.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions, including fair value estimates for investments that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. The Company’s management evaluates its estimates and assumptions on an ongoing basis. Management’s most significant estimates in the Company’s condensed consolidated financial statements include, but are not limited to, clinical trial accruals, deferred and accrued research and development costs, stock-based compensation, and accounting for income taxes and related valuation allowance. Although these estimates and assumptions are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.

9


 

Summary of Significant Accounting Policies

There were no changes to significant accounting policies during the six months ended June 30, 2023, as compared to those identified in the 2022 Form 10-K.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires that credit losses be reported as an allowance using an expected losses model, representing the entity’s current estimate of credit losses expected to be incurred. The accounting guidance currently in effect is based on an incurred loss model. For available-for-sale debt securities with unrealized losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. The amendments under ASU 2016-13 were effective for interim and annual fiscal periods beginning after December 15, 2022. The Company adopted this standard as of January 1, 2023, and there was no material impact to the Company's financial statements.

3.
Helio Vision Acquisition

On January 28, 2019 (Closing Date), the Company acquired Helio Vision, Inc. (Helio). As a result of the acquisition, the Company initially issued an aggregate of 1,160,444 shares of common stock to the former securityholders and an advisor of Helio. The founders of Helio were issued 568,627 shares and non-founders were issued 591,817 shares. The Helio founders’ shares were subject to vesting based on continued service to the Company through January 28, 2022. The Company recognized the expense associated with the founders’ restricted shares as research and development compensation expense on a straight-line basis as the shares vested over the three-year period. For the six months ended June 30, 2022 the Company recorded $0.1 million, of research and development compensation expense, for the founders’ restricted shares. There are no further obligations related to founders’ restricted shares.

In January 2021, pursuant to the terms of the acquisition agreement, the Company issued 246,562 shares of its common stock to the former securityholders of Helio (January Shares). In addition, the Company, subject to the conditions of the acquisition agreement, is contingently obligated to make additional payments to the former securityholders of Helio as follows: (a) $10.0 million of common stock following approval by the FDA of an NDA for the prevention and/or treatment of proliferative vitreoretinopathy or a substantially similar label prior to the 10th anniversary of the Closing Date; and (b) $2.5 million of common stock following FDA approval of an NDA for an indication (other than proliferative vitreoretinopathy or a substantially similar label) prior to the 12th anniversary of the Closing Date (the shares of common stock issuable pursuant to the preceding clauses (a) and (b) are referred to herein as the Milestone Shares), provided that in no event shall the Company be obligated to issue more than an aggregate of 5,248,885 shares of common stock in connection with the Helio acquisition. Additionally, in the event of certain change of control or divestitures by the Company, certain former convertible noteholders of Helio will be entitled to a tax gross-up payment in an amount not to exceed $1.0 million in the aggregate.

The Company determined that liability accounting is not required for the Milestone Shares under FASB ASC Topic 480, Distinguishing Liabilities from Equity (ASC 480). The Company also determined that the Milestone Shares meet the scope exception as a derivative under FASB ASC Topic 815, Derivatives and Hedging (ASC 815), from inception of the Milestone Shares through June 30, 2023. Accordingly, the Milestone Shares are evaluated under FASB ASC Topic 450, Contingencies (ASC 450) and the Company will record a liability related to the Milestone Shares if the milestones are achieved, and the obligation to issue the Milestone Shares becomes probable. At such time, the Company will record the cost of the Milestone Shares issued to the Helio founders as a compensation expense and to the Helio non-founders as an in-process research and development (IPR&D) expense if there is no alternative future use. At December 31, 2020, the issuance of the January Shares was considered probable and $2.5 million was accrued as contingent consideration payable in stock and the Company recorded $1.8 million to IPR&D (Milestone IPR&D), which included a $0.5 million income tax benefit, and $1.2 million of compensation expense related to the January Shares, which amounted to 246,562 shares and were issued during the quarter ended March 31, 2021. No other milestones related to the remaining Milestone Shares are considered probable of being achieved as of June 30, 2023.

10


 

4.
NET LOSS PER SHARE

For the three and six months ended June 30, 2023 and 2022, diluted weighted average common shares outstanding is equal to basic weighted average common shares due to the Company’s net loss position.

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding, because such securities had an antidilutive impact:

 

 

 

For the Three and Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

Options to purchase common stock

 

 

6,567,153

 

 

 

5,864,338

 

Nonvested restricted stock units

 

 

1,208,100

 

 

 

536,860

 

Total of common stock equivalents

 

 

7,775,253

 

 

 

6,401,198

 

 

5.
CASH, CASH EQUIVALENTS, AND MARKETABLE SECURITIES

At June 30, 2023, cash and cash equivalents were comprised of:

 

 

 

Carrying
Amount

 

 

Unrecognized
Gain

 

 

Unrecognized
Loss

 

 

Estimated
Fair Value

 

 

Cash and Cash
Equivalents

 

 

Current
Marketable
Securities

 

Cash

 

$

111,504,186

 

 

$

 

 

$

 

 

$

111,504,186

 

 

$

111,504,186

 

 

$

 

Money market funds

 

 

40,171,375

 

 

 

 

 

 

 

 

$

40,171,375

 

 

 

40,171,375

 

 

 

 

Total cash and cash equivalents

 

$