CATALYST BIOSCIENCES, INC. [CBIO] Filings

10-Q 1 cbio-10q_20220930.htm 10-Q cbio-10q_20220930.htm

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

☐	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: 000-51173

Catalyst Biosciences, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

56-2020050

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

611 Gateway Blvd., Suite 710

South San Francisco, California

94080

(Address of Principal Executive Offices)

(Zip Code)

(650) 871-0761

(Registrant’s Telephone Number, Including Area Code)

Securities registered or to be 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		CBIO		NASDAQ

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 November 7, 2022, the number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 31,490,053.

CATALYST BIOSCIENCES, INC.

TABLE OF CONTENTS

		Page No.

PART I. FINANCIAL INFORMATION			3

Item 1.	Financial Statements:		3

	Condensed Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021		3

	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (unaudited)		4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and 2021 (unaudited)		5

	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)		6

	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited)		7

	Notes to the Unaudited Interim Condensed Consolidated Financial Statements		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		23

Item 4.	Controls and Procedures		24

PART II. OTHER INFORMATION			25

Item 1.	Legal Proceedings		25

Item 1A.	Risk Factors		25

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		26

Item 3.	Defaults Upon Senior Securities		26

Item 4.	Mine Safety Disclosures		26

Item 5.	Other Information		26

Item 6.	Exhibits		26

Exhibit Index			27

Signatures		28

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Catalyst Biosciences, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	September 30, 2022			December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	23,090		$	44,347
Short-term investments		—			2,504
Accounts and other receivables		5,000			1,818
Prepaid and other current assets		2,156			2,807
Total current assets		30,246			51,476
Other assets, noncurrent		168			472
Right-of-use assets		481			2,744
Property and equipment, net		124			970
Total assets	$	31,019		$	55,662
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	41		$	6,419
Accrued compensation		1,040			1,467
Deferred revenue		—			230
Other accrued liabilities		182			4,072
Operating lease liability		381			1,977
Total current liabilities		1,644			14,165
Operating lease liability, noncurrent		—			408
Total liabilities		1,644			14,573
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; zero shares issued and outstanding		—		—
Common stock, $0.001 par value, 100,000,000 shares authorized; 31,490,053 and 31,409,707 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		31			31
Additional paid-in capital		399,826			443,752
Accumulated deficit		(370,482	)		(402,694	)
Total stockholders’ equity		29,375			41,089
Total liabilities and stockholders’ equity	$	31,019		$	55,662

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenue:
Collaboration	$	—		$	2,299		$	794		$	4,898

Operating expenses (income):
Cost of collaboration		—			2,307			798			4,926
Research and development		803			20,352			12,377			52,754
General and administrative		4,363			4,869			13,201			14,799
Gain on disposal of assets, net		—		—				(57,245	)	—
Total operating expenses (income)		5,166			27,528			(30,869	)		72,479
Income (loss) from operations		(5,166	)		(25,229	)		31,663			(67,581	)
Interest and other income (expense), net		282			(9	)		549			(23	)
Net income (loss)	$	(4,884	)	$	(25,238	)	$	32,212		$	(67,604	)
Net income (loss) per share attributable to common stockholders, basic	$	(0.16	)	$	(0.80	)	$	1.02		$	(2.23	)
Net income (loss) per share attributable to common stockholders, diluted	$	(0.16	)	$	(0.80	)	$	1.02		$	(2.23	)
Shares used to compute net income (loss) per share attributable to common stockholders, basic		31,484,542			31,379,755			31,472,666			30,382,231
Shares used to compute net income (loss) per share attributable to common stockholders, diluted		31,484,542			31,379,755			31,605,834			30,382,231

Cash dividends paid per common share	$	1.43		$	—		$	1.43		$	—

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022		2021
Net income (loss)	$	(4,884	)	$	(25,238	)	$	32,212	$	(67,604	)
Other comprehensive loss:
Unrealized loss on available-for-sale debt securities		—			(1	)		—		(4	)
Total comprehensive income (loss)	$	(4,884	)	$	(25,239	)	$	32,212	$	(67,608	)

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share amounts)

(Unaudited)

	Convertible Preferred Stock				Common Stock				Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Capital			Income (Loss)			Deficit			Equity
Balance at December 31, 2021		—	$	—		31,409,707	$	31	$	443,752		$	—		$	(402,694	)	$	41,089
Stock-based compensation expense		—		—		32,684		—		515			—			—			515
Issuance of common stock from stock grants and option exercises		—		—		34,662		—		16			—			—			16
Net loss		—		—		—		—		—			—			(14,536	)		(14,536	)
Balance at March 31, 2022		—		—		31,477,053		31		444,283			—			(417,230	)		27,084
Stock-based compensation expense		—		—		—		—		346			—			—			346
Net income		—		—		—		—		—			—			51,632			51,632
Balance at June 30, 2022		—		—		31,477,053		31		444,629			—			(365,598	)		79,062
Stock-based compensation expense		—		—		—		—		224			—			—			224
Issuance of common stock from stock grants and option exercises		—		—		13,000		—		4			—			—			4
Cash dividends paid ($1.43 per share)		—		—		—		—		(45,031	)		—			—			(45,031	)
Net loss		—		—		—		—		—			—			(4,884	)		(4,884	)
Balance at September 30, 2022		—	$	—		31,490,053	$	31	$	399,826		$	—		$	(370,482	)	$	29,375

	Convertible Preferred Stock				Common Stock				Additional Paid-In			Accumulated Other Comprehensive			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital			Income (Loss)			Deficit			Equity
Balance at December 31, 2020		—	$	—		22,097,820	$	22	$	390,803		$	5		$	(314,761	)	$	76,069
Stock-based compensation expense		—		—		10,149		—		1,026			—			—			1,026
Issuance of common stock from stock grants and option exercises		—		—		38,058		—		182			—			—			182
Issuance of common stock for public offering, net of issuance costs of $3,563		—		—		9,185,000		9		49,241			—			—			49,250
Net loss		—		—		—		—		—			—			(22,438	)		(22,438	)
Balance at March 31, 2021		—		—		31,331,027		31		441,252			5			(337,199	)		104,089
Stock-based compensation expense		—		—		13,713		—		983			—			—			983
Issuance of common stock from stock grants and option exercises		—		—		5,000		—		23			—			—			23
Unrealized loss on available-for-sale debt securities		—		—		—		—		—			(3	)		—			(3	)
Net loss		—		—		—		—		—			—			(19,928	)		(19,928	)
Balance at June 30, 2021		—		—		31,349,740		31		442,258			2			(357,127	)		85,164
Stock-based compensation expense		—		—		15,961		—		713			—			—			713
Issuance of common stock from stock grants and option exercises		—		—		26,917		—		98			—			—			98
Unrealized loss on available-for-sale debt securities		—		—		—		—		—			(1	)		—			(1	)
Net loss		—		—		—		—		—			—			(25,238	)		(25,238	)
Balance at September 30, 2021		—	$	—		31,392,618	$	31	$	443,069		$	1		$	(382,365	)	$	60,736

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2022			2021
Operating Activities
Net income (loss)	$	32,212		$	(67,604	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation expense		1,085			2,722
Depreciation and amortization		220			175
Bad debt expense		200		—
Loss on lease termination		110		—
Net gain on disposal of assets		(57,245	)	—
Changes in operating assets and liabilities:
Accounts and other receivables		1,618			2,199
Prepaid and other current assets		993			(2,028	)
Accounts payable		(6,378	)		(2,063	)
Accrued compensation and other accrued liabilities		(4,317	)		1,473
Operating lease liability and right-of-use asset		111			177
Deferred revenue		(230	)		(1,130	)
Net cash flows used in operating activities		(31,621	)		(66,079	)

Investing Activities
Proceeds from maturities of short-term investments

CATALYST BIOSCIENCES, INC. [CBIO] Filings
10-Q	[2022-11-14]
10-Q	[2022-08-15]
10-Q	[2022-05-09]
10-K	[2022-03-31]
10-Q	[2021-11-12]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-03-04]
10-Q	[2020-11-05]
10-Q	[2020-08-06]
10-Q	[2020-05-11]
10-K	[2020-02-20]
10-Q	[2019-11-07]
10-Q	[2019-08-01]
10-Q	[2019-05-02]
10-K	[2019-03-08]
10-Q	[2018-11-01]
10-Q	[2018-08-02]
10-Q	[2018-05-03]
10-K	[2018-03-19]
10-Q	[2017-11-02]
10-Q	[2017-08-03]
10-Q	[2017-05-11]
S-1	[2017-03-13]
10-K	[2017-03-08]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-05]
10-K	[2016-03-09]
10-Q	[2015-11-05]
10-Q	[2015-07-31]
10-Q	[2015-05-07]
10-K	[2015-03-16]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-03-14]
10-Q	[2013-11-06]
10-Q	[2013-08-07]
10-Q	[2013-05-08]
10-K	[2013-03-15]
10-Q	[2012-11-08]
10-Q	[2012-08-09]
10-Q	[2012-05-09]
10-K	[2012-03-06]