IDEAYA Biosciences Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow

10-Q 1 idya-10q_20200630.htm 10-Q idya-10q_20200630.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

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

For the quarterly period ended June 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38915

IDEAYA Biosciences, Inc.

(Exact name of registrant as specified in its charter)

Delaware		47-4268251
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7000 Shoreline Court, Suite 350 South San Francisco, California		94080
(Address of principal executive offices)		(Zip Code)

(650) 443-6209

(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, $0.0001 par value per share

IDYA

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 August 3, 2020, the registrant had 29,028,463 shares of common stock, $0.0001 par value per share, outstanding.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding our future results of operations and financial position, business strategy, prospective products, product approvals, research and development costs, timing and likelihood of success, plans and objectives of management for future operations and future results of anticipated products, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that 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,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described under the sections in this Quarterly Report on Form 10-Q entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on Form 10-Q. These forward-looking statements are subject to numerous risks, including, without limitation, the following:

•	our status as a development-stage company and our expectation to incur losses in the future;

•	our future capital needs and our need to raise additional funds;

•	our ability to build a pipeline of product candidates and develop and commercialize drugs;

•	our unproven approach to therapeutic intervention;

•	our ability to enroll patients and volunteers in clinical trials, timely and successfully complete those trials and receive necessary regulatory approvals;

•	our ability to establish our own manufacturing facilities and to receive or manufacture sufficient quantities of our product candidates;

•	the success of the collaboration agreement with GSK and our dependence on the development and marketing efforts of GSK for certain of our programs;

•	our expectations about the impact of natural disasters and public health epidemics, such as the COVID-19 pandemic, on our business, results of operations and financial condition;

•	our ability to protect and enforce our intellectual property rights;

•	federal, state, and foreign regulatory requirements, including FDA regulation of our product candidates;

•	the timing of clinical trials and the likelihood of regulatory filings and approvals;

•	our ability to obtain and retain key executives and attract and retain qualified personnel; and

•	our ability to successfully manage our growth.

Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, 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 occur or be achieved, and actual results could differ materially from those projected in the forward-looking statements. We qualify all of our forward-looking statements by these cautionary 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, changed circumstances or otherwise.

IDEAYA Biosciences, Inc.

Form 10-Q for Quarterly Period Ended June 30, 2020

Table of Contents


PART I—FINANCIAL INFORMATION	3
Item 1. Financial Statements (Unaudited)	3
Condensed Balance Sheets	3
Condensed Statements of Operations and Comprehensive Loss	4
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	5
Condensed Statements of Cash Flows	7
Notes to Condensed Financial Statements (Unaudited)	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures About Market Risk	40
Item 4. Controls and Procedures	40
PART II—OTHER INFORMATION	41
Item 1. Legal Proceedings	41
Item 1A. Risk Factors	41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	101
Item 3. Defaults Upon Senior Securities	101
Item 4. Mine Safety Disclosures	101
Item 5. Other information	101
Item 6. Exhibits	102
SIGNATURES	103

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (UNAUDITED).

IDEAYA Biosciences, Inc.

Condensed Balance Sheets

(in thousands, except share and per share amounts)

(Unaudited)

	June 30,			December 31,
	2020			2019
Assets
Current assets
Cash and cash equivalents	$	147,543		$	34,067
Short-term marketable securities		22,871			64,889
Prepaid expenses and other current assets		3,536			2,698
Total current assets		173,950			101,654
Restricted cash		106			106
Long-term marketable securities		1,545			1,526
Property and equipment, net		4,289			4,642
Right-of-use assets		4,594			5,057
Other non-current assets		26			16
Total assets	$	184,510		$	113,001
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	952		$	709
Accrued liabilities		5,223			5,023
Lease liabilities		1,206			1,145
Other current liabilities		45			63
Total current liabilities		7,426			6,940
Long-term lease liabilities		5,010			5,627
Other non-current liabilities		16			34
Total liabilities		12,452			12,601
Commitments and contingencies (Note 5)
Stockholders’ equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of June 30, 2020 and December 31, 2019; no shares issued and outstanding as of June 30, 2020 and December 31, 2019		—			—
Common stock, $0.0001 par value, 300,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 27,184,824 and 20,339,461 shares issued and outstanding as of June 30, 2020 and December 31, 2019		3			2
Additional paid-in capital		288,923			192,824
Accumulated other comprehensive income		57			65
Accumulated deficit		(116,925	)		(92,491	)
Total stockholders’ equity		172,058			100,400
Total liabilities and stockholders’ equity	$	184,510		$	113,001

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

IDEAYA Biosciences, Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Operating expenses
Research and development	$	8,596		$	8,859		$	17,622		$	16,855
General and administrative		3,994			2,376			7,446			4,474
Total operating expenses		12,590			11,235			25,068			21,329
Loss from operations		(12,590	)		(11,235	)		(25,068	)		(21,329	)
Interest income and other income (expense), net		199			579			634			1,104
Net loss	$	(12,391	)	$	(10,656	)	$	(24,434	)	$	(20,225	)
Change in unrealized (losses) gains on marketable securities		57			29			(8	)		68
Comprehensive loss	$	(12,334	)	$	(10,627	)	$	(24,442	)	$	(20,157	)
Net loss per common share, basic and diluted	$	(0.59	)	$	(1.30	)	$	(1.18	)	$	(4.32	)
Weighted average number of common shares outstanding used in computing net loss per share, basic and diluted		21,001,730			8,218,010			20,626,139			4,679,206

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

IDEAYA Biosciences, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(Unaudited)

														Accumulated					Total
	Redeemable Convertible											Additional		Other					Stockholders'
	Preferred Stock						Common Stock					Paid-In		Comprehensive		Accumulated			Equity
	Shares			Amount			Shares			Amount		Capital		Income (Loss)		Deficit			(Deficit)
Balances as of March 31, 2020		—		$	—			20,347,539		$	2	$	193,635	$	—	$	(104,534	)	$	89,103
Issuance of common stock upon follow-on public offering, net of issuance costs		—			—			6,666,667			1		93,623		—		—			93,624
Issuance of common stock upon exercise of stock options		—			—			154,482			—		694		—		—			694
Employee stock purchase plan (ESPP) purchase								18,494			—		132		—		—			132
Repurchase of early exercised shares		—			—			(2,358	)		—		—		—		—			—
Vesting of early exercised common stock options		—			—			—			—		15		—		—			15
Stock-based compensation		—			—			—			—		824		—		—			824
Other comprehensive income		—			—			—			—		—		57		—			57
Net loss		—			—			—			—		—		—		(12,391	)		(12,391	)
Balances as of June 30, 2020		—		$	—			27,184,824		$	3	$	288,923	$	57	$	(116,925	)	$	172,058

Balances as of March 31, 2019		13,139,794		$	138,391			1,338,860		$	—	$	2,015	$	8	$	(60,085	)	$	(58,062	)
Conversion of redeemable convertible preferred stock into common stock		(13,139,794	)		(138,391	)		13,139,794			1		138,390		—		—			138,391
Issuance of common stock upon initial public offering, net of issuance costs		—			—			5,750,000			1		50,246		—		—			50,247
Issuance of common stock upon exercise of stock options		—			—			49,219			—		70		—		—			70
Early exercised common stock options		—			—			2,112			—		—		—		—			—
Repurchase of early exercised shares		—			—			(11,882	)		—		—		—		—			—
Vesting of early exercised common stock options and restricted stock		—			—			—			—		41		—		—			41
Stock-based compensation		—			—			—			—		548		—		—			548
Other comprehensive income		—			—			—			—		—		29		—			29
Net loss		—			—			—			—		—		—		(10,656	)		(10,656	)
Balances as of June 30, 2019		—		$	-			20,268,103		$	2	$	191,310	$	37	$	(70,741	)	$	120,608

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

IDEAYA Biosciences, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)—(Continued)

(in thousands, except share amounts)

(Unaudited)

														Accumulated						Total
	Redeemable Convertible											Additional		Other						Stockholders'
	Preferred Stock						Common Stock					Paid-In		Comprehensive			Accumulated			Equity
	Shares			Amount			Shares			Amount		Capital		Income (Loss)			Deficit			(Deficit)
Balances as of December 31, 2019		—		$	—			20,339,461		$	2	$	192,824	$	65		$	(92,491	)	$	100,400
Issuance of common stock upon follow-on public offering, net of issuance costs		—			—			6,666,667			1		93,623		—			—			93,624
Issuance of common stock upon exercise of stock options		—			—			165,371			—		731		—			—			731
Employee stock purchase plan (ESPP) purchase								18,494			—		132		—			—			132
Repurchase of early exercised shares		—			—			(5,169	)		—		—		—			—			—
Vesting of early exercised common stock options		—			—			—			—		31		—			—			31
Stock-based compensation		—			—			—			—		1,582		—			—			1,582
Other comprehensive loss		—			—			—			—		—		(8	)		—			(8	)
Net loss		—			—			—			—		—		—			(24,434	)		(24,434	)
Balances as of June 30, 2020		—		$	—			27,184,824		$	3	$	288,923	$	57		$	(116,925	)	$	172,058

Balances as of December 31, 2018		13,139,794		$	138,391			1,335,690		$	—	$	1,599	$	(31	)	$	(50,516	)	$	(48,948	)
Conversion of redeemable convertible preferred stock into common stock		(13,139,794	)		(138,391	)		13,139,794			1		138,390		—			—			138,391
Issuance of common stock upon initial public offering, net of issuance costs		—			—			5,750,000			1		50,246		—			—			50,247
Issuance of common stock upon exercise of stock options		—			—			52,389			—		71		—			—			71
Early exercised common stock options		—			—			2,112			—		—		—			—			—
Repurchase of early exercised shares		—			—			(11,882	)		—		—		—			—			—
Vesting of early exercised common stock options and restricted stock		—			—			—			—		73		—			—			73
Stock-based compensation		—			—			—			—		931		—			—			931
Other comprehensive income		—			—			—			—		—		68			—			68
Net loss		—			—			—			—		—		—			(20,225	)		(20,225	)
Balances as of June 30, 2019		—		$	—			20,268,103		$	2	$	191,310	$	37		$	(70,741	)	$	120,608

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

IDEAYA Biosciences, Inc.

Condensed Statements of Cash Flows

(in thousands)

(Unaudited)

	Six Months Ended June 30,
	2020			2019
Cash flows from operating activities
Net loss	$	(24,434	)	$	(20,225	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		673			591
Net amortization of premiums and discounts on marketable securities		31			(390	)
Stock-based compensation		1,582			931
Loss on sale of property and equipment		2			3
Realized gain on marketable securities		(3	)		(7	)
Changes in assets and liabilities
Prepaid expenses and other assets		(848	)		(1,743	)
Right-of-use assets		462			604
Accounts payable		191			(189	)
Accrued and other liabilities		(251	)		945
Lease liabilities		(556	)

Price	9.17	EPS	-1
Shares	20	P/E	-9
MCap	186	P/FCF	-18
Net Debt	-109	EBIT	-22
TEV	77	TEV/EBIT	-4
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-12
10-Q	2020-03-31	Filed 2020-05-12
10-K	2019-12-31	Filed 2020-03-24
10-Q	2019-09-30	Filed 2019-11-13
10-Q	2019-06-30	Filed 2019-08-12
S-1	2019-04-26	Public Filing

8-K	2020-09-23	Enter Agreement, Exhibits
8-K	2020-08-12	Earnings, Exhibits
8-K	2020-08-03	Sale of Shares, Exhibits
8-K	2020-06-26	Officers, Exhibits
8-K	2020-06-17
8-K	2020-06-16
8-K	2020-06-15
8-K	2020-05-12
8-K	2020-04-06
8-K	2020-03-24
8-K	2020-03-11
8-K	2020-03-05
8-K	2020-01-13
8-K	2019-12-17
8-K	2019-11-20
8-K	2019-11-13
8-K	2019-09-30
8-K	2019-08-12
8-K	2019-05-28

EX-10.3	idya-ex103_470.htm
EX-31.1	idya-ex311_7.htm
EX-31.2	idya-ex312_10.htm
EX-32.1	idya-ex321_6.htm

IDYA 10Q Quarterly Report

IDEAYA Biosciences Earnings 2020-06-30