IDEAYA Biosciences Earnings 2019-06-30

IDYA 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

10-Q 1 idya-10q_20190630.htm 10-Q idya-10q_20190630.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, 2019

☐	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 1, 2019, the registrant had 20,307,966 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;

•	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, 2019

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	22
Item 3. Quantitative and Qualitative Disclosures About Market Risk	30
Item 4. Controls and Procedures	30
PART II—OTHER INFORMATION	31
Item 1. Legal Proceedings	31
Item 1A. Risk Factors	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	87
Item 3. Defaults Upon Senior Securities	88
Item 4. Mine Safety Disclosures	88
Item 5. Other information	88
Item 6. Exhibits	89
SIGNATURES	91

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,
	2019			2018
Assets
Current assets
Cash and cash equivalents	$	88,115		$	20,505
Short-term marketable securities		32,048			69,456
Prepaid expenses and other current assets		2,469			706
Total current assets		122,632			90,667
Restricted cash		106			106
Property and equipment, net		5,050			5,152
Deferred offering costs		—			570
Right-of-use assets		5,545			—
Other non-current assets		25			46
Total assets	$	133,358		$	96,541
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	1,080		$	1,417
Accrued liabilities		4,077			3,583
Deferred rent		—			299
Lease liabilities		1,227			—
Other current liabilities		89			114
Total current liabilities		6,473			5,413
Deferred rent		—			1,572
Long-term lease liabilities		6,217			—
Other non-current liabilities		60			113
Total liabilities		12,750			7,098
Commitments and contingencies (Note 5)
Series A redeemable convertible preferred stock, $0.0001 par value, no shares authorized as of June 30, 2019 and 59,433,105 shares authorized as of December 31, 2018; no shares issued and outstanding as of June 30, 2019 and 5,794,727 shares issued and outstanding as of December 31, 2018; liquidation value of $0 as of June 30, 2019 and $47,178 as of December 31, 2018		—			40,735
Series B redeemable convertible preferred stock, $0.0001 par value, no shares authorized as of June 30, 2019 and 75,500,000 shares authorized as of December 31, 2018; no shares issued and outstanding as of June 30, 2019 and 7,345,067 shares issued and outstanding as of December 31, 2018; liquidation value of $0 as of June 30, 2019 and $97,520 as of December 31, 2018		—			97,656
Stockholder’s equity (deficit)
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of June 30, 2019 and no shares authorized as of December 31, 2018; no shares issued and outstanding as of June 30, 2019 and December 31, 2018		—			—
Common stock, $0.0001 par value, 300,000,000 shares authorized as of June 30, 2019 and 170,800,000 shares authorized as of December 31, 2018; 20,268,103 and 1,335,690 shares issued and outstanding as of June 30, 2019 and December 31, 2018		2			—
Additional paid-in capital		191,310			1,599
Accumulated other comprehensive income (loss)		37			(31	)
Accumulated deficit		(70,741	)		(50,516	)
Total stockholders’ equity (deficit)		120,608			(48,948	)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$	133,358		$	96,541

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,
	2019			2018			2019			2018
Operating expenses
Research and development	$	8,859		$	6,432		$	16,855		$	11,634
General and administrative		2,376			1,139			4,474			2,024
Total operating expenses		11,235			7,571			21,329			13,658
Loss from operations		(11,235	)		(7,571	)		(21,329	)		(13,658	)
Interest income		573			568			1,098			850
Other income (expense), net		6			8			6			76
Net loss	$	(10,656	)	$	(6,995	)	$	(20,225	)	$	(12,732	)
Change in unrealized gains (losses) on marketable securities		29			(6	)		68			(32	)
Comprehensive loss	$	(10,627	)	$	(7,001	)	$	(20,157	)	$	(12,764	)
Net loss per share attributable to common stockholders, basic and diluted	$	(1.30	)	$	(7.47	)	$	(4.32	)	$	(14.41	)
Weighted average number of shares outstanding, basic and diluted		8,218,010			936,406			4,679,206			883,674

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
	Redeemable Convertible											Additional		Other						Total
	Preferred Stock						Common Stock					Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares			Amount			Shares			Amount		Capital		Income (Loss)			Deficit			Deficit
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 cost		—			—			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, 3019		—		$	—			20,268,103		$	2	$	191,310	$	37		$	(70,741	)	$	120,608

Balances as of March 31, 2018		12,876,179		$	134,585			1,331,316		$	—	$	620	$	(27	)	$	(21,907	)	$	(21,314	)
Issuance costs for Series B redeemable convertible preferred stock		—			(6	)		—			—		—		—			—			—
Vesting of early exercised common stock options and restricted stock		—			—			—			—		40		—			—			40
Stock-based compensation		—			—			—			—		226		—			—			226
Other comprehensive loss		—			—			—			—		—		(6	)		—			(6	)
Net loss		—			—			—			—		—		—			(6,995	)		(6,995	)
Balances as of June 30, 2018		12,876,179		$	134,579			1,331,316		$	—	$	886	$	(33	)	$	(28,902	)	$	(28,049	)

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
	Redeemable Convertible											Additional		Other						Total
	Preferred Stock						Common Stock					Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares			Amount			Shares			Amount		Capital		Income (Loss)			Deficit			Deficit
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 cost		—			—			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, 3019		—		$	—			20,268,103		$	2	$	191,310	$	37		$	(70,741	)	$	120,608

Balances as of December 31, 2017		4,379,916		$	26,084			1,263,416		$	—	$	432	$	(1	)	$	(16,170	)	$	(15,739	)
Issuance of Series A redeemable convertible preferred stock, net of issuance costs of $5, adjusted for the redeemable convertible preferred stock liability of $3,137		1,414,811			14,651			—			—		—		—			—			—
Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $176		7,081,452			93,844			—			—		—		—			—			—
Issuance of common stock upon exercise of stock options		—			—			2,655			—		2		—			—			2
Early exercised common stock options		—			—			65,245			—		—		—			—			—
Vesting of early exercised common stock options and restricted stock		—			—			—			—		114		—			—			114
Stock-based compensation		—			—			—			—		338		—			—			338
Other comprehensive loss		—			—			—			—		—		(32	)		—			(32	)
Net loss		—			—			—			—		—		—			(12,732	)		(12,732	)
Balances as of June 30, 2018		12,876,179		$	134,579			1,331,316		$	—	$	886	$	(33	)	$	(28,902	)	$	(28,049	)

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,
	2019			2018
Cash flows from operating activities
Net loss	$	(20,225	)	$	(12,732	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		591			400
Net amortization of premiums and discounts on marketable securities		(390	)		(291	)
Stock-based compensation		931			338
Change in fair value of redeemable convertible preferred stock liability		—			(70	)
Loss (gain) on sale of property and equipment		3			(41	)
Gain on sales of marketable securities		(7	)		(10	)
Changes in assets and liabilities
Prepaid expenses and other assets		(1,743	)		(347	)
Right-of-use assets		604			—
Accounts payable		(189	)		500
Accrued and other liabilities		945			842
Deferred rent		—			(41	)
Lease liabilities		(577	)		—
Net cash used in operating activities		(20,057	)		(11,452	)
Cash flows from investing activities
Purchases of property and equipment, net		(1,055	)		(399	)
Purchases of marketable securities		(38,458	)		(94,817	)
Maturities of marketable securities		18,094			20,200
Sales of marketable securities		58,238			—
Net cash provided by (used in) investing activities		36,819			(75,016	)
Cash flows from financing activities

10-Q	2019-06-30	Quarter: 2019-06-30
S-1	2019-04-26	Public Filing

8-K	2019-09-30	Enter Agreement, Other Events
8-K	2019-08-12	Earnings, Regulation FD, Exhibits
8-K	2019-05-28	Amend Bylaw, Other Events, Exhibits

EOCC	Enel Generacion Chile	168,300
ECOM	Channeladvisor	248
SCOO	School Specialty	138
CCUR	CCUR	32
UMED	Greenway Technologies	32
SDEV	Security Devices International	15
NAP	Navios Maritime Midstream Partners	0
TLCC	Twinlab Consolidated Holdings	0
AXPW	Axion Power	0
MTII	Monitronics International	0

EX-31.1	idya-ex311_8.htm
EX-31.2	idya-ex312_9.htm
EX-32.1	idya-ex321_7.htm