10-Q 1 alec-20220930.htm 10-Q 10-Q
http://alector.com/20220930#CollaborationRevenueMemberfalsehttp://alector.com/20220930#CollaborationRevenueMember0001653087http://alector.com/20220930#CollaborationRevenueMemberhttp://alector.com/20220930#CollaborationRevenueMember--12-31Q30001653087us-gaap:RestrictedStockMember2022-01-012022-09-300001653087alec:InnoventBiologicsMember2022-01-012022-09-300001653087us-gaap:RetainedEarningsMember2022-07-012022-09-300001653087alec:GskMember2021-07-012021-07-010001653087us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001653087us-gaap:CommonStockMember2022-03-310001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001653087alec:RestrictedStockAwardsAndRestrictedStockUnitsMember2022-01-012022-09-300001653087us-gaap:RetainedEarningsMember2021-01-012021-03-310001653087us-gaap:RetainedEarningsMember2021-09-300001653087us-gaap:RetainedEarningsMember2022-01-012022-03-310001653087alec:TwoThousandNineteenEquityIncentivePlanMember2022-01-010001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-3000016530872022-06-3000016530872021-04-012021-06-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001653087alec:TwoThousandTwentyTwoInducementPlanMember2022-09-222022-09-220001653087us-gaap:InternalRevenueServiceIRSMember2021-07-012021-09-300001653087us-gaap:CommonStockMember2021-03-310001653087us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-3000016530872021-03-310001653087alec:RestrictedStockAwardsAndRestrictedStockUnitsMember2021-07-012021-09-300001653087us-gaap:AdditionalPaidInCapitalMember2020-12-310001653087us-gaap:AdditionalPaidInCapitalMember2022-06-300001653087alec:AdimabMember2021-12-310001653087us-gaap:EmployeeStockOptionMember2021-07-012021-09-3000016530872021-09-300001653087us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001653087us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-3000016530872022-07-012022-09-300001653087us-gaap:RetainedEarningsMember2022-06-3000016530872022-01-012022-09-3000016530872020-12-310001653087srt:MaximumMemberalec:AbbVieBiotechnologyLimitedMember2017-10-310001653087us-gaap:AdditionalPaidInCapitalMember2022-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001653087alec:TwoThousandFourteenAdimabAgreementMembersrt:MaximumMember2022-07-012022-09-300001653087us-gaap:EmployeeStockMember2021-07-012021-09-300001653087us-gaap:CommonStockMember2021-07-012021-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001653087alec:AbbVieBiotechnologyLimitedMember2022-09-300001653087us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001653087us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001653087us-gaap:RetainedEarningsMember2021-06-300001653087us-gaap:RetainedEarningsMember2021-12-3100016530872022-04-012022-06-300001653087us-gaap:RetainedEarningsMember2022-09-300001653087us-gaap:AdditionalPaidInCapitalMember2021-03-310001653087alec:AbbVieBiotechnologyLimitedMember2018-01-012018-01-310001653087us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001653087alec:AbbVieBiotechnologyLimitedMember2021-07-012021-09-300001653087us-gaap:RetainedEarningsMember2021-03-310001653087alec:GskMember2022-07-012022-09-300001653087alec:TwoThousandNineteenEquityIncentivePlanMember2021-12-310001653087us-gaap:RestrictedStockMember2022-09-300001653087alec:GskMembersrt:MaximumMember2022-09-300001653087alec:AbbVieBiotechnologyLimitedMember2021-01-012021-09-300001653087us-gaap:RetainedEarningsMember2021-07-012021-09-300001653087us-gaap:CommonStockMember2021-09-300001653087us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016530872021-01-012021-09-300001653087us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001653087us-gaap:CommonStockMember2021-06-300001653087us-gaap:CommonStockMember2020-12-310001653087us-gaap:RetainedEarningsMember2021-04-012021-06-300001653087alec:AlectorMember2022-01-012022-09-3000016530872021-01-012021-03-310001653087us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100016530872021-06-300001653087alec:TwoThousandNineteenEmployeeStockPurchasePlanMember2022-01-012022-09-3000016530872021-07-012021-09-300001653087us-gaap:CommonStockMember2022-01-012022-03-310001653087us-gaap:RetainedEarningsMember2022-04-012022-06-300001653087us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001653087us-gaap:CommonStockMember2021-01-012021-03-310001653087alec:CashEquivalentsAndMarketableSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001653087us-gaap:AdditionalPaidInCapitalMember2021-12-310001653087us-gaap:EmployeeStockMember2021-01-012021-09-3000016530872022-11-030001653087us-gaap:CommonStockMember2021-12-310001653087alec:GskMember2021-07-012021-09-300001653087alec:AbbVieBiotechnologyLimitedMember2017-10-012017-10-310001653087alec:TwoThousandTwentyTwoInducementPlanMember2022-01-010001653087alec:TwoThousandFourteenAdimabAgreementMember2021-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001653087alec:GskMember2022-01-012022-01-310001653087alec:AbbVieBiotechnologyLimitedMember2021-12-3100016530872022-01-012022-03-310001653087us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001653087us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001653087us-gaap:EmployeeStockMember2022-07-012022-09-300001653087us-gaap:RestrictedStockUnitsRSUMember2022-09-300001653087us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001653087alec:AbbVieBiotechnologyLimitedMember2022-07-012022-09-300001653087us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001653087alec:GskMember2022-01-012022-09-300001653087us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001653087us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001653087alec:RestrictedStockAwardsAndRestrictedStockUnitsMember2022-07-012022-09-300001653087alec:TwoThousandNineteenEquityIncentivePlanMember2022-01-012022-09-300001653087alec:TwoThousandNineteenEmployeeStockPurchasePlanMember2022-01-010001653087us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001653087us-gaap:CommonStockMember2022-09-300001653087us-gaap:CommonStockMember2022-06-300001653087us-gaap:RestrictedStockMember2021-12-310001653087us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000016530872022-03-310001653087us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001653087alec:AdimabMember2022-09-300001653087alec:TwoThousandTwentyTwoInducementPlanMember2022-09-300001653087us-gaap:EmployeeStockMember2022-01-012022-09-300001653087us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001653087us-gaap:CommonStockMember2022-07-012022-09-300001653087alec:TwoThousandNineteenEmployeeStockPurchasePlanMember2022-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001653087alec:GskMember2021-08-172021-08-170001653087alec:TwoThousandNineteenEquityIncentivePlanMember2022-09-300001653087us-gaap:CommonStockMember2022-04-012022-06-300001653087us-gaap:AdditionalPaidInCapitalMember2021-09-300001653087alec:CashEquivalentsAndMarketableSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001653087alec:GskMember2021-01-012021-09-3000016530872022-09-300001653087us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001653087alec:TwoThousandFourteenAdimabAgreementMember2021-01-012021-09-300001653087alec:TwoThousandFourteenAdimabAgreementMember2022-01-012022-09-300001653087alec:RestrictedStockAwardsAndRestrictedStockUnitsMember2021-01-012021-09-300001653087us-gaap:InternalRevenueServiceIRSMember2021-01-012021-09-300001653087us-gaap:CommonStockMember2021-04-012021-06-300001653087us-gaap:RetainedEarningsMember2022-03-310001653087us-gaap:AdditionalPaidInCapitalMember2021-06-300001653087alec:AbbVieBiotechnologyLimitedMember2022-01-012022-09-300001653087us-gaap:AdditionalPaidInCapitalMember2022-03-310001653087us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000016530872021-12-310001653087us-gaap:RetainedEarningsMember2020-12-31xbrli:purexbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

 

 

 

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 September 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 001-38792

 

Alector, Inc.

(Exact name of Registrant as specified in its Charter)

 

 

Delaware

 

82-2933343

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer
Identification No.)

131 Oyster Point Blvd, Suite 600

South San Francisco, California

 

94080

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: 415-231-5660

 

 

Not applicable

(Former name, former address, and former fiscal year, if changed since last report)

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

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock

ALEC

The Nasdaq Stock Market LLC

(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 3, 2022, the registrant had 82,701,539 shares of common stock, $0.0001 par value per share, outstanding.

 


 

Alector, Inc.

 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Condensed Consolidated Financial Statements

6

Item 2.

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

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

Item 4.

Controls and Procedures

23

 

 

 

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

73

Item 6.

Exhibits

74

 

Signatures

75

 

 

 

 

 

 

i


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial position, business strategy, product candidates, planned preclinical studies and clinical trials, results of clinical trials, research and development costs, regulatory approvals, timing, and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that are in some cases beyond our control and 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,” “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 report include, but are not limited to, statements about:

our plans relating to the development and manufacturing of our product candidates and research programs, including additional indications that we may pursue;
the ability of our clinical trials to demonstrate safety and efficacy of our product candidates, and other positive results;
the beneficial characteristics, safety, efficacy, and therapeutic effects of our product candidates;
the expected potential benefits of strategic collaborations with third parties and our ability to attract collaborators with development, regulatory and commercialization expertise;
our estimates of the number of patients in the United States who suffer from the diseases we are targeting and the number of patients that will enroll in our clinical trials;
the timing and focus of our future clinical trials, and the reporting of data from those trials;
our plans relating to commercializing our product candidates, if approved, including the geographic areas of focus and sales strategy;
the size of the market opportunity for our product candidates in each of the diseases we are targeting;
our ability to expand our product candidates into additional indications and patient populations;
the success of competing therapies that are or may become available;
the timing or likelihood of regulatory filings and approvals, including our expectation to seek special designations, such as orphan drug designation, for our product candidates for various diseases;
our ability to obtain and maintain regulatory approval of our product candidates;
existing regulations and regulatory developments in the United States and other jurisdictions;
our continued reliance on third parties to conduct additional clinical trials of our product candidates, and for the manufacture of our product candidates for preclinical studies and clinical trials;
our plans and ability to obtain or protect intellectual property rights, including extensions of existing patent terms where available;
the need to hire additional personnel and our ability to attract and retain such personnel; especially in light of a competitive compensation environment;
the accuracy of our estimates regarding expenses, future revenue, capital requirements, and additional financing needs;
our financial performance, including potential volatility in our stock price;
the impact of the ongoing coronavirus (COVID-19) pandemic, including recent and new variants, on our business;
the effects of a rising rate of inflation; and

ii


 

the sufficiency of our existing cash and cash equivalents to fund our future operating expenses and capital expenditure requirements.

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 report and are subject to a number of risks, uncertainties, and assumptions described in the section titled “Risk Factors” and elsewhere in this report. 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 report, 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.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (https://investors.alector.com), Securities and Exchange Commission (SEC) filings, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with our stockholders and public about our company, our products, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.

 

iii


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Alector, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

184,231

 

 

$

329,152

 

Marketable securities

 

 

574,075

 

 

 

406,099

 

Receivable from collaboration partner

 

 

6,491

 

 

 

7,391

 

Prepaid expenses and other current assets

 

 

10,166

 

 

 

7,071

 

Total current assets

 

 

774,963

 

 

 

749,713

 

Property and equipment, net

 

 

26,289

 

 

 

27,330

 

Operating lease right-of-use assets

 

 

28,530

 

 

 

30,569

 

Restricted cash

 

 

1,472

 

 

 

1,472

 

Other assets

 

 

5,784

 

 

 

5,574

 

Total assets

 

$

837,038

 

 

$

814,658

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,546

 

 

$

4,749

 

Accrued clinical supply costs

 

 

5,444

 

 

 

8,748

 

Accrued liabilities

 

 

23,225

 

 

 

27,460

 

Deferred revenue, current portion

 

 

119,684

 

 

 

90,803

 

Operating lease liabilities, current portion

 

 

7,990

 

 

 

7,795

 

Total current liabilities

 

 

160,889

 

 

 

139,555

 

Deferred revenue, long-term portion

 

 

386,357

 

 

 

334,415

 

Operating lease liabilities, long-term portion

 

 

36,455

 

 

 

39,806

 

Other long-term liabilities

 

 

233

 

 

 

158

 

Total liabilities

 

 

583,934

 

 

 

513,934

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $0.0001 par value; 200,000,000 shares authorized; 82,700,939 and
   
81,986,192 shares issued and outstanding as of September 30, 2022 and
   December 31, 2021, respectively

 

 

8

 

 

 

8

 

Additional paid-in capital

 

 

787,097

 

 

 

748,036

 

Accumulated other comprehensive loss

 

 

(6,742

)

 

 

(943

)

Accumulated deficit

 

 

(527,259

)

 

 

(446,377

)

Total stockholders' equity

 

 

253,104

 

 

 

300,724

 

Total liabilities and stockholders' equity

 

$

837,038

 

 

$

814,658

 

 

 

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

1


 

Alector, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

(In thousands, except share and per share data)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Collaboration revenue

 

$

14,852

 

 

$

182,413

 

 

$

119,177

 

 

$

193,091

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

48,348

 

 

 

43,066

 

 

 

155,925

 

 

 

136,617

 

General and administrative

 

 

14,252

 

 

 

13,018

 

 

 

45,648

 

 

 

38,105

 

Total operating expenses

 

 

62,600

 

 

 

56,084

 

 

 

201,573

 

 

 

174,722

 

Income (loss) from operations

 

 

(47,748

)

 

 

126,329

 

 

 

(82,396

)

 

 

18,369

 

Other income, net

 

 

2,333

 

 

 

268

 

 

 

4,047

 

 

 

910

 

Income (loss) before income taxes

 

 

(45,415

)

 

 

126,597

 

 

 

(78,349

)

 

 

19,279

 

Income tax expense

 

 

733

 

 

 

 

 

 

2,533

 

 

 

 

Net income (loss)

 

 

(46,148

)

 

 

126,597

 

 

 

(80,882

)

 

 

19,279

 

Unrealized loss on marketable securities

 

 

(518

)

 

 

(244

)

 

 

(5,799

)

 

 

(655

)

Comprehensive income (loss)

 

$

(46,666

)

 

$

126,353

 

 

$

(86,681

)

 

$

18,624

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.56

)

 

$

1.56

 

 

$

(0.98

)

 

$

0.24

 

Diluted net income (loss) per share

 

$

(0.56

)

 

$

1.49

 

 

$

(0.98

)

 

$

0.23

 

Weighted-average shares used in calculating:

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share, basic

 

 

82,602,842

 

 

 

80,964,701

 

 

 

82,367,936

 

 

 

80,048,758

 

Shares used in computing net income (loss) per share, diluted

 

 

82,602,842

 

 

 

85,232,690

 

 

 

82,367,936

 

 

 

82,871,254

 

 

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

 

2


 

Alector, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)

 

 

Common Stock

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — December 31, 2021

 

 

81,986,192

 

 

$

8

 

 

$

748,036

 

 

$

(943

)

 

$

(446,377

)

 

$

300,724

 

Exercise of stock options

 

 

234,117

 

 

 

 

 

 

2,483

 

 

 

 

 

 

 

 

 

2,483

 

Vesting of restricted stock units

 

 

104,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

11,939

 

 

 

 

 

 

 

 

 

11,939

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(2,992

)

 

 

 

 

 

(2,992

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,617

)

 

 

(44,617

)

Balance — March 31, 2022

 

 

82,324,677

 

 

 

8

 

 

 

762,458

 

 

 

(3,935

)

 

 

(490,994

)

 

 

267,537

 

Exercise of stock options

 

 

4,244

 

 

 

 

 

 

41

 

 

 

 

 

 

 

 

 

41

 

Vesting of restricted stock units

 

 

101,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of common stock under
   employee stock purchase plan

 

 

114,904

 

 

 

 

 

 

866

 

 

 

 

 

 

 

 

 

866

 

Stock-based compensation

 

 

 

 

 

 

 

 

12,478

 

 

 

 

 

 

 

 

 

12,478

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(2,289

)

 

 

 

 

 

(2,289

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,883

 

 

 

9,883

 

Balance — June 30, 2022

 

 

82,544,901

 

 

$

8

 

 

$

775,843

 

 

$

(6,224

)

 

$

(481,111

)

 

$

288,516

 

Exercise of stock options

 

 

54,278

 

 

 

 

 

 

489

 

 

 

 

 

 

 

 

 

489

 

Vesting of restricted stock units

 

 

101,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

10,765

 

 

 

 

 

 

 

 

 

10,765

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(518

)

 

 

 

 

 

(518

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46,148

)

 

 

(46,148

)

Balance — September 30, 2022

 

 

82,700,939

 

 

$

8

 

 

$

787,097

 

 

$

(6,742

)

 

$

(527,259

)

 

$

253,104

 

 

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

 

3


 

Alector, Inc.

Condensed Consolidated Statement of Stockholders’ Equity

(Unaudited)

(In thousands, except share data)

 

 

Common Stock

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — December 31, 2020

 

 

79,316,261

 

 

$

8

 

 

$

676,956

 

 

$

614

 

 

$

(410,048

)

 

$

267,530

 

Exercise of stock options

 

 

415,386

 

 

 

 

 

 

3,874

 

 

 

 

 

 

 

 

 

3,874

 

Stock-based compensation

 

 

 

 

 

 

 

 

8,800

 

 

 

 

 

 

 

 

 

8,800

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(204

)

 

 

 

 

 

(204

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(52,171

)

 

 

(52,171

)

Balance — March 31, 2021

 

 

79,731,647

 

 

 

8

 

 

 

689,630

 

 

 

410

 

 

 

(462,219

)

 

 

227,829

 

Exercise of stock options

 

 

207,453

 

 

 

 

 

 

1,993

 

 

 

 

 

 

 

 

 

1,993

 

Purchase of common stock under
   employee stock purchase plan

 

 

84,105

 

 

 

 

 

 

969

 

 

 

 

 

 

 

 

 

969

 

Forfeiture of restricted common stock

 

 

(18,043

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

9,078

 

 

 

 

 

 

 

 

 

9,078

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(207

)

 

 

 

 

 

(207

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(55,147

)

 

 

(55,147

)

Balance — June 30, 2021

 

 

80,005,162

 

 

$

8

 

 

$

701,670

 

 

$

203

 

 

$

(517,366

)

 

$

184,515

 

Exercise of stock options

 

 

1,178,085

 

 

 

 

 

 

14,821

 

 

 

 

 

 

 

 

 

14,821

 

Vesting of restricted stock units

 

 

65,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

10,201

 

 

 

 

 

 

 

 

 

10,201

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(244

)

 

 

 

 

 

(244

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126,597

 

 

 

126,597

 

Balance — September 30, 2021

 

 

81,248,646

 

 

$

8

 

 

$

726,692

 

 

$

(41

)

 

$

(390,769

)

 

$

335,890

 

 

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

4


 

Alector, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

(80,882

)

 

$

19,279

 

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

 

 

 

 

 

 

Depreciation and amortization