Company Quick10K Filing
Cortexyme
Price24.65 EPS-1
Shares27 P/E-27
MCap662 P/FCF-30
Net Debt-121 EBIT-25
TEV541 TEV/EBIT-22
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-14
S-1 2020-04-07 Public Filing
10-Q 2020-03-31 Filed 2020-05-12
10-K 2019-12-31 Filed 2020-03-16
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
S-1 2019-04-12 Public Filing
10-Q 2019-03-31 Filed 2019-06-12
8-K 2020-06-08
8-K 2020-05-18
8-K 2020-05-12
8-K 2020-04-27
8-K 2020-03-17
8-K 2020-02-05
8-K 2019-05-13

CRTX 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements.
Note 1. Organization
Note 2. Summary of Significant Accounting Policies
Note 3. Fair Value Measurements
Note 4: Cash, Cash Equivalents and Investments
Note 5. Balance Sheet Components
Note 6. Leases
Note 7. Stock - Based Compensation
Note 8. Related Party Transactions
Note 9. Income Taxes
Note 10. Net Loss per Share
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-10.1 crtx-ex101_245.htm
EX-10.3 crtx-ex103_166.htm
EX-31.1 crtx-ex311_9.htm
EX-31.2 crtx-ex312_6.htm
EX-32.1 crtx-ex321_7.htm
EX-32.2 crtx-ex322_8.htm

Cortexyme Earnings 2020-06-30

Balance SheetIncome StatementCash Flow

10-Q 1 crtx-10q_20200630.htm 10-Q crtx-10q_20200630.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 June 30, 2020

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: 001-38890

 

Cortexyme, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

90-1024039

( State or other jurisdiction of

incorporation or organization)

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

269 East Grand Ave.

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (415) 910-5717

 

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, par value $0.001 per share

 

CRTX

 

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 12, 2020, the registrant had 29,487,674 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations and Comprehensive Loss

2

 

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity

3

 

Condensed Statements of Cash Flows

5

 

Notes to Unaudited Condensed Financial Statements

6

Item 2.

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

16

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

Item 4.

Controls and Procedures

23

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

24

Item 1A.

Risk Factors

24

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

Item 3.

Defaults Upon Senior Securities

29

Item 4.

Mine Safety Disclosures

29

Item 5.

Other Information

29

Item 6.

Exhibits

30

Signatures

31

 

 

 

i


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Cortexyme, Inc.

Condensed Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

June 30, 2020

 

 

December 31, 2019 (1)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

66,156

 

 

$

51,214

 

Short term investments

 

 

78,348

 

 

 

48,650

 

Prepaid expenses and other current assets

 

 

7,104

 

 

 

6,192

 

Total current assets

 

 

151,608

 

 

 

106,056

 

Property and equipment, net

 

 

565

 

 

 

709

 

Operating lease right-of-use assets, net

 

 

686

 

 

 

625

 

Long term investments

 

 

66,107

 

 

 

16,763

 

Other assets

 

 

244

 

 

 

217

 

Total assets

 

$

219,210

 

 

$

124,370

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,091

 

 

$

3,075

 

Accrued expenses and other current liabilities

 

 

8,602

 

 

 

5,817

 

Total current liabilities

 

 

13,693

 

 

 

8,892

 

Long-term operating lease liability

 

 

50

 

 

 

 

Total liabilities

 

 

13,743

 

 

 

8,892

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 authorized, no shares issued and

   outstanding as of June 30, 2020 and December 31, 2019

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized,

   29,486,269 and 26,869,413 issued and outstanding as of June 30, 2020 and

   December 31, 2019, respectively

 

 

29

 

 

 

27

 

Additional paid in capital

 

 

309,320

 

 

 

185,196

 

Accumulated other comprehensive income

 

 

711

 

 

 

60

 

Accumulated deficit

 

 

(104,593

)

 

 

(69,805

)

Total stockholders’ equity

 

 

205,467

 

 

 

115,478

 

Total liabilities and stockholders’ equity

 

$

219,210

 

 

$

124,370

 

 

(1)

The balance sheet as of December 31, 2019 is derived from the audited financial statements as of that date

 

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

1


Cortexyme, Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

14,086

 

 

$

7,109

 

 

$

28,467

 

 

$

11,934

 

General and administrative

 

 

4,185

 

 

 

2,466

 

 

 

7,662

 

 

 

3,716

 

Total operating expenses

 

 

18,271

 

 

 

9,575

 

 

 

36,129

 

 

 

15,650

 

Loss from operations

 

 

(18,271

)

 

 

(9,575

)

 

 

(36,129

)

 

 

(15,650

)

Interest income

 

 

659

 

 

 

513

 

 

 

1,341

 

 

 

907

 

Net loss

 

 

(17,612

)

 

 

(9,062

)

 

 

(34,788

)

 

 

(14,743

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available for sales securities

 

 

748

 

 

 

103

 

 

 

651

 

 

 

129

 

Total comprehensive loss

 

$

(16,864

)

 

$

(8,959

)

 

$

(34,137

)

 

$

(14,614

)

Net loss per share - basic and diluted

 

$

(0.60

)

 

$

(0.57

)

 

$

(1.21

)

 

$

(1.52

)

Weighted average shares of common stock outstanding -

   basic and diluted

 

 

29,442,915

 

 

 

15,849,189

 

 

 

28,852,317

 

 

 

9,719,173

 

 

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

 

 

2


Cortexyme, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity

(Unaudited)

(In thousands, except share and per share amounts)

 

For the three months ended June 30, 2020 and 2019

 

 

 

Series A Redeemable

Convertible Preferred

Stock

 

 

Series B Redeemable

Convertible Preferred

Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income / (Loss)

 

 

Deficit

 

 

Equity

 

Balance March 31, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

29,404,540

 

 

$

29

 

 

$

305,030

 

 

$

(37

)

 

$

(86,981

)

 

$

218,041

 

Issuance cost related to private placement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(62

)

 

 

 

 

 

 

 

 

(62

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81,729

 

 

 

 

 

 

954

 

 

 

 

 

 

 

 

 

954

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,398

 

 

 

 

 

 

 

 

 

3,398

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

748

 

 

 

 

 

 

748

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,612

)

 

 

(17,612

)

Balance June 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

29,486,269

 

 

$

29

 

 

$

309,320

 

 

$

711

 

 

$

(104,593

)

 

$

205,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2019

 

 

9,008,919

 

 

$

17,178

 

 

 

9,152,108

 

 

$

86,960

 

 

 

3,566,923

 

 

$

4

 

 

$

498

 

 

$

(23

)

 

$

(38,506

)

 

$

(38,027

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,458

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

5

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

377

 

 

 

 

 

 

 

 

 

377

 

Vesting of Series B

   redeemable convertible

   preferred stock in lieu

   of rent

 

 

 

 

 

 

 

 

 

 

 

856

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of redeemable

   convertible preferred stock

   to common stock

 

 

(9,008,919

)

 

 

(17,178

)

 

 

(9,152,108

)

 

 

(87,816

)

 

 

18,161,027

 

 

 

18

 

 

 

104,976

 

 

 

 

 

 

 

 

 

104,994

 

Initial public offering of

   common stock, net of

   issuance costs of $8,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,073,800

 

 

 

5

 

 

 

77,822

 

 

 

 

 

 

 

 

 

77,827

 

Exercise of stock warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

103

 

 

 

 

 

 

103

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,062

)

 

 

(9,062

)

Balance June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,841,149

 

 

$

27

 

 

$

183,678

 

 

$

80

 

 

$

(47,568

)

 

$

136,217

 

 

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

 

3


Cortexyme, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity

(Unaudited)

(In thousands, except share and per share amounts)

 

For the six months ended June 30, 2020 and 2019

 

 

 

Series A Redeemable

Convertible Preferred

Stock

 

 

Series B Redeemable

Convertible Preferred

Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income / (Loss)

 

 

Deficit

 

 

Equity

 

Balance January 1, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,869,413

 

 

$

27

 

 

$

185,196

 

 

$

60

 

 

$

(69,805

)

 

$

115,478

 

Issuance of common stock in

   connection with private

   placement, net of issuance

   costs of $7,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,500,000

 

 

 

2

 

 

 

117,626

 

 

 

 

 

 

 

 

 

117,628

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116,856

 

 

 

 

 

 

1,145

 

 

 

 

 

 

 

 

 

1,145

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,353

 

 

 

 

 

 

 

 

 

5,353

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

651

 

 

 

 

 

 

651

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,788

)

 

 

(34,788

)

Balance June 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

29,486,269

 

 

$

29

 

 

$

309,320

 

 

$

711

 

 

$

(104,593

)

 

$

205,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2019

 

 

9,008,919

 

 

$

17,178

 

 

 

9,152,108

 

 

$

86,868

 

 

 

3,412,366

 

 

$

3

 

 

$

245

 

 

$

(49

)

 

$

(32,825

)

 

$

(32,626

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

166,015

 

 

 

1

 

 

 

68

 

 

 

 

 

 

 

 

 

69

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

567

 

 

 

 

 

 

 

 

 

567

 

Vesting of Series B

   redeemable convertible

   preferred stock in lieu

   of rent

 

 

 

 

 

 

 

 

 

 

 

948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of redeemable

   convertible preferred stock

   to common stock

 

 

(9,008,919

)

 

 

(17,178

)

 

 

(9,152,108

)

 

 

(87,816

)

 

 

18,161,027

 

 

 

18

 

 

 

104,976

 

 

 

 

 

 

 

 

 

104,994

 

Initial public offering of

   common stock, net of

   issuance costs of $8,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,073,800

 

 

 

5

 

 

 

77,822

 

 

 

 

 

 

 

 

 

77,827

 

Exercise of stock warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

129

 

 

 

 

 

 

129

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,743

)

 

 

(14,743

)

Balance June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,841,149

 

 

$

27

 

 

$

183,678

 

 

$

80

 

 

$

(47,568

)

 

$

136,217

 

 

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

 

4


 

Cortexyme, Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(34,788

)

 

$

(14,743

)

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

 

 

 

 

 

 

 

 

Non-cash rent expense

 

 

184

 

 

 

184

 

Stock based compensation

 

 

5,353

 

 

 

567

 

Depreciation and amortization

 

 

163

 

 

 

53

 

Amortization of (discount) premium on available for sale investments

 

 

228

 

 

 

(395

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

(880

)

 

 

(4,515

)

Other assets

 

 

(27

)

 

 

(250

)

Accounts payable

 

 

2,016

 

 

 

4,621

 

Accrued expenses and other current liabilities

 

 

2,580

 

 

 

947

 

Net cash used in operating activities

 

 

(25,171

)

 

 

(13,531

)

Cash flow from investing activities:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(139,407

)

 

 

(88,593

)

Proceeds from maturities of investments

 

 

60,801

 

 

 

43,940

 

Purchase of property and equipment

 

 

(22

)

 

 

(20

)

Net cash used in investing activities

 

 

(78,628

)

 

 

(44,673

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payments of finance leases

 

 

(32

)

 

 

 

Proceeds from issuance of common stock upon exercise of stock options