EyePoint Pharmaceuticals, Inc. [EYPT] Filings

10-Q 1 eypt-20230930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐ 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 000-51122

EyePoint Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation or organization)		26-2774444 (I.R.S. Employer Identification No.)

480 Pleasant Street Watertown, MA (Address of principal executive offices)		02472 (Zip Code)

(617) 926-5000

(Registrant’s telephone number, including area code)

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

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

EYPT

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 “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 ☒

There were 35,309,432 shares of the registrant’s common stock, $0.001 par value, outstanding as of October 27, 2023.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements

	Condensed Consolidated Balance Sheets – September 30, 2023 and December 31, 2022	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss – Three and Nine months ended September 30, 2023 and 2022	4

	Condensed Consolidated Statements of Stockholders’ Equity – Three and Nine months ended September 30, 2023 and 2022	5

	Condensed Consolidated Statements of Cash Flows – Nine months ended September 30, 2023 and 2022	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	32

Item 4.	Controls and Procedures	32

PART II: OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 3.	Defaults Upon Senior Securities	34

Item 4.	Mine Safety Disclosures	34

Item 5.	Other Information	34

Item 6.	Exhibits	35

Signatures		37

Certifications

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands except share data)


	September 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	133,035		$	95,633
Marketable securities		2,977			48,928
Accounts and other receivables, net		483			15,503
Prepaid expenses and other current assets		9,091			9,858
Inventory		4,577			2,886
Total current assets		150,163			172,808
Property and equipment, net		4,480			1,360
Operating lease right-of-use assets		5,250			6,038
Restricted cash		150			150
Total assets	$	160,043		$	180,356
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	9,580		$	5,919
Accrued expenses		13,417			16,359
Deferred revenue		39,841			1,205
Short-term borrowings		—			10,475
Other current liabilities		1,058			579
Total current liabilities		63,896			34,537
Long-term debt		—			29,310
Deferred revenue – noncurrent		32,341			13,557
Operating lease liabilities – noncurrent		5,185			5,984
Other long-term liabilities		—			600
Total liabilities		101,422			83,988
Contingencies (Note 14)
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $.001 par value, 300,000,000 shares authorized at September 30, 2023 and December 31, 2022; 35,309,432 and 34,082,934 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		35			34
Additional paid-in capital		785,792			766,899
Accumulated deficit		(728,047	)		(671,351	)
Accumulated other comprehensive income		841			786
Total stockholders' equity		58,621			96,368
Total liabilities and stockholders' equity	$	160,043		$	180,356

See notes to condensed consolidated financial statements.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Revenues:
Product sales, net	$	816		$	9,720		$	13,483		$	30,048
License and collaboration agreements		14,137			52			17,768			160
Royalty income		249			240			739			663
Total revenues		15,202			10,012			31,990			30,871
Operating expenses:
Cost of sales, excluding amortization of acquired intangible assets		1,202			1,405			3,634			4,916
Research and development		17,363			11,162			46,711			34,099
Sales and marketing		479			6,016			11,504			19,592
General and administrative		10,556			9,212			28,854			26,321
Amortization of acquired intangible assets		—			615			—			1,845
Total operating expenses		29,600			28,410			90,703			86,773
Loss from operations		(14,398	)		(18,398	)		(58,713	)		(55,902	)
Other income (expense):
Interest and other income, net		1,786			640			4,611			1,067
Interest expense		—			(662	)		(1,247	)		(2,408	)
Loss on extinguishment of debt		—			—			(1,347	)		(1,559	)
Total other income (expense), net		1,786			(22	)		2,017			(2,900	)
Net loss	$	(12,612	)	$	(18,420	)	$	(56,696	)	$	(58,802	)
Net loss per share – basic and diluted	$	(0.33	)	$	(0.49	)	$	(1.50	)	$	(1.58	)
Weighted average shares outstanding – basic and diluted		38,341			37,338			37,804			37,305

Net loss	$	(12,612	)	$	(18,420	)	$	(56,696	)	$	(58,802	)
Other comprehensive (loss) gain:
Unrealized (loss) gain on available-for-sale securities, net of tax of $0 for periods presented		(1	)		51			55			(188	)
Comprehensive loss	$	(12,613	)	$	(18,369	)	$	(56,641	)	$	(58,990	)

See notes to condensed consolidated financial statements.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(In thousands except share data)


	Common Stock				Additional					Accumulated Other			Total
	Number of Shares		Par Value Amount		Paid-In Capital		Accumulated Deficit			Comprehensive Income			Stockholders’ Equity
Balance at July 1, 2022		34,052,616	$	34	$	760,209	$	(609,479	)	$	602		$	151,366
Net loss		—		—		—		(18,420	)		—			(18,420	)
Other comprehensive gain		—		—		—		—			51			51
Employee stock purchase plan		19,283		—		153		—			—			153
Exercise of stock options		256		—		1		—			—			1
Stock-based compensation		—		—		3,199		—			—			3,199
Balance at September 30, 2022		34,072,155	$	34	$	763,562	$	(627,899	)	$	653		$	136,350

Balance at July 1, 2023		34,306,118	$	34	$	771,821	$	(715,435	)	$	842		$	57,262
Net loss		—		—		—		(12,612	)		—			(12,612	)
Other comprehensive loss		—		—		—		—			(1	)		(1	)
Issuance of stock, net of issue costs		902,769		1		9,539		—			—			9,540
Employee stock purchase plan		43,335		—		174		—			—			174
Exercise of stock options		55,210		—		629		—			—			629
Vesting of stock units		2,000		—		—		—			—			—
Stock-based compensation		—		—		3,629		—			—			3,629
Balance at September 30, 2023		35,309,432	$	35	$	785,792	$	(728,047	)	$	841		$	58,621


	Common Stock				Additional						Accumulated Other			Total
	Number of Shares		Par Value Amount		Paid-In Capital			Accumulated Deficit			Comprehensive Income			Stockholders’ Equity
Balance at January 1, 2022		33,905,826	$	34	$	752,602		$	(569,097	)	$	841		$	184,380
Net loss		—		—		—			(58,802	)		—			(58,802	)
Other comprehensive loss		—		—		—			—			(188	)		(188	)
Issuance of stock, net of issue costs		—		—		20			—			—			20
Employee stock purchase plan		47,787		—		354			—			—			354
Exercise of stock options		4,479		—		41			—			—			41
Vesting of stock units		114,063		—		(271	)		—			—			(271	)
Stock-based compensation		—		—		10,816			—			—			10,816
Balance at September 30, 2022		34,072,155	$	34	$	763,562		$	(627,899	)	$	653		$	136,350

Balance at January 1, 2023		34,082,934	$	34	$	766,899		$	(671,351	)	$	786		$	96,368
Net loss		—		—		—			(56,696	)		—			(56,696	)
Other comprehensive gain		—		—		—			—			55			55
Issuance of stock, net of issue costs		902,769		1		9,539			—			—			9,540
Employee stock purchase plan		107,056		—		422			—			—			422
Exercise of stock options		56,090		—		634			—			—			634
Vesting of stock units		160,583		—		(169	)		—			—			(169	)
Stock-based compensation		—		—		8,467			—			—			8,467
Balance at September 30, 2023		35,309,432	$	35	$	785,792		$	(728,047	)	$	841		$	58,621

See notes to condensed consolidated financial statements.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	Nine Months Ended
	September 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(56,696	)	$	(58,802	)
Adjustments to reconcile net loss to cash flows used in operating activities:
Amortization of intangible assets		—			1,845
Depreciation of property and equipment		352			266
Amortization of debt discount and premium and discount on available-for-sale marketable securities		(334	)		(218	)
Provision for excess and obsolete inventory		693			—
Loss on extinguishment of debt		1,347			1,559
Stock-based compensation		8,467			10,816
Changes in operating assets and liabilities:
Accounts receivable and other current assets		14,701			(8,942	)
Inventory		(2,224	)		85
Accounts payable and accrued expenses		791			1,681
Right-of-use assets and operating lease liabilities		467			(44	)
Deferred revenue		57,420			(663	)
Net cash provided by (used in) operating activities		24,984			(52,417	)
Cash flows from investing activities:
Purchases of marketable securities		(5,851	)		(125,617	)
Sales and maturities of marketable securities		52,284			77,000
Purchases of property and equipment		(2,600

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10-Q	[2023-08-04]
10-Q	[2023-05-04]
10-K	[2023-03-10]
10-Q	[2022-11-04]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-03-14]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-05]
10-K	[2021-03-12]
10-Q	[2020-11-06]
10-Q	[2020-08-05]
10-Q	[2020-05-08]
10-K	[2020-03-16]
10-Q	[2019-11-07]
10-Q	[2019-08-07]
10-Q	[2019-05-10]
10-Q	[2018-11-09]
10-K	[2018-09-18]
10-Q	[2018-05-10]
10-Q	[2018-02-08]
10-Q	[2017-11-08]
10-K	[2017-09-13]
10-Q	[2017-05-08]
10-Q	[2017-02-09]
10-Q	[2016-11-08]
10-K	[2016-09-13]
10-Q	[2016-05-06]
10-Q	[2016-02-09]
10-Q	[2015-11-06]
10-K	[2015-09-10]
10-Q	[2015-05-08]
10-Q	[2015-02-06]
10-Q	[2014-11-07]
10-K	[2014-09-11]
10-Q	[2014-05-14]
10-Q	[2014-02-12]
10-Q	[2013-11-13]
10-K	[2013-09-27]
10-Q	[2013-05-14]
10-Q	[2013-02-08]
10-Q	[2012-11-09]
10-K	[2012-09-27]
10-Q	[2012-05-10]
10-Q	[2012-02-09]