UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ______to _______
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip Code)
(
(Registrant’s telephone number)
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.
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).
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 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 |
| ☐ |
| ☒ | Smaller reporting company |
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| Emerging growth company |
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
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. ☐
Title of each class | Trading Symbol | Name of each exchange on which registered |
As of November 8, 2024, the total number of shares of common stock, par value $0.001 per share, outstanding was
NORTHWEST BIOTHERAPEUTICS, INC.
FORM 10-Q
TABLE OF CONTENTS
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Item 1. | Condensed Consolidated Interim Financial Statements (Unaudited) | |
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Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 | 3 | |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27 | |
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2
PART I - FINANCIAL INFORMATION
NORTHWEST BIOTHERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| September 30, |
| December 31, | |||
2024 | 2023 | |||||
(Unaudited) | ||||||
ASSETS |
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Current assets: |
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Cash and cash equivalents | $ | | $ | | ||
Prepaid expenses and other current assets |
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Total current assets |
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Non-current assets: |
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Property, plant and equipment, net |
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Right-of-use asset, net | | | ||||
Indefinite-lived intangible asset | | | ||||
Goodwill | | | ||||
Other assets |
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Total non-current assets |
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TOTAL ASSETS | $ | | $ | | ||
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LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable and accrued expenses | $ | | $ | | ||
Accounts payable and accrued expenses to related parties and affiliates |
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Convertible notes, net |
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Convertible notes at fair value | | | ||||
Notes payable, net |
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Contingent payable derivative liability | | | ||||
Warrant liability |
| — |
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Investor advances | | | ||||
Share payable | | | ||||
Lease liabilities | | | ||||
Total current liabilities |
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Non-current liabilities: |
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Convertible notes at fair value, net of current portion | | — | ||||
Notes payable, net of current portion, net |
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Lease liabilities, net of current portion | | | ||||
Contingent payment obligation | | | ||||
Total non-current liabilities |
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Total liabilities |
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COMMITMENTS AND CONTINGENCIES (Note 12) |
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Mezzanine equity: |
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Series C Convertible Preferred Stock, | | |||||
Stockholders’ deficit: |
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Preferred stock ($ | ||||||
Common stock ($ |
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Additional paid-in capital |
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Stock subscription receivable |
| ( |
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Accumulated deficit |
| ( |
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Accumulated other comprehensive (loss) income |
| ( |
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Total stockholders’ deficit |
| ( |
| ( | ||
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT | $ | | $ | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
NORTHWEST BIOTHERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share amounts)
(Unaudited)
For the three months ended | For the nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
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| 2024 |
| 2023 |
| 2024 |
| 2023 | ||||
Revenues: | ||||||||||||
$ | | $ | | $ | | $ | | |||||
Total revenues | | | | | ||||||||
Operating costs and expenses: | ||||||||||||
Research and development | | | | | ||||||||
General and administrative | | | | | ||||||||
Total operating costs and expenses | | | | | ||||||||
Loss from operations | ( | ( | ( | ( | ||||||||
Other income (expense): | ||||||||||||
Change in fair value of derivative liabilities | ( | ( | | | ||||||||
Change in fair value of share payable | | | | | ||||||||
Change in fair value of convertible notes | | ( | | ( | ||||||||
Loss from extinguishment of debt | ( | ( | ( | ( | ||||||||
Interest expense | ( | ( | ( | ( | ||||||||
Foreign currency transaction gain (loss) | | ( | | ( | ||||||||
Total other loss | ( | ( | ( | ( | ||||||||
Net loss | ( | ( | ( | ( | ||||||||
Deemed dividend related to warrant modification | ( | ( | ( | ( | ||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | ||||
Other comprehensive income (loss) | ||||||||||||
Foreign currency translation adjustment | ( | | ( | | ||||||||
Total comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||
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Net loss per share applicable to common stockholders |
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Basic | $ | ( | $ | ( | $ | ( | $ | ( | ||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( | ||||
Weighted average shares used in computing basic loss per share | | | | | ||||||||
Weighted average shares used in computing diluted loss per share | | | | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
NORTHWEST BIOTHERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(in thousands)
(Unaudited)
| For the Three Months Ended September 30, 2024 | |||||||||||||||||||||||||
Mezzanine equity | Accumulated | |||||||||||||||||||||||||
Series C Convertible | Additional | Other | Total | |||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Subscription | Accumulated | Comprehensive | Stockholders’ | ||||||||||||||||||||
| Shares |
| Amount |
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| Shares |
| Par value |
| Capital |
| Receivable |
| Deficit |
| Income (Loss) |
| Deficit | ||||||||
Balances at July 1, 2024 |
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| $ | |
| | $ | | $ | | $ | ( | $ | ( | $ | | $ | ( | |||||||
Issuance of Series C convertible preferred stock for cash |
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| — |
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Series C convertible preferred stock conversion |
| ( |
| ( |
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Issuance of common stock for cash, net |
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Warrants exercised for cash |
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Cashless warrants exercise |
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Issuance of common stock for conversion of debt and accrued interest |
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Issuance of Series C preferred stock for conversion of debt and accrued interest |
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Stock-based compensation |
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Net loss |
| — |
| — |
| — |
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| ( |
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Warrants modification |
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Deemed dividend related to warrants modification |
| — |
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| ( |
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| ( | ||||||||
Cumulative translation adjustment |
| — |
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| — |
| — |
| ( |
| ( | ||||||||
Balances at September 30, 2024 |
| | $ | |
| | $ | | $ | | $ | ( | $ | ( | $ | ( | $ | ( |
For the Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||
Mezzanine equity | Accumulated | |||||||||||||||||||||||||
Series C Convertible | Additional | Other | Total | |||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Subscription | Accumulated | Comprehensive | Stockholders’ | ||||||||||||||||||||
| Shares |
| Amount |
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| Shares |
| Par value |
| Capital |
| Receivable |
| Deficit |
| Income |
| Deficit | ||||||||
Balances at July 1, 2023 | |
| $ | | | $ | | $ | | $ | ( | $ | ( | $ | | $ | ( | |||||||||
Issuance of Series C convertible preferred stock for cash | |
| | — |
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| — | — |
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Issuance of Series C convertible preferred stock in lieu of debt redemption | — |
| — | — |
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| — | — | — | — | — | ||||||||||||||
Series C convertible preferred stock conversion | ( |
| ( | |
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| | — | — | — | | ||||||||||||||
Warrants exercised for cash | — |
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Cashless warrants and stock options exercise | — |
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| ( | — |
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Issuance of common stock for conversion of debt and accrued interest | — | — | | | | — | — | — | | |||||||||||||||||
Stock-based compensation | |
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| | — |
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Net loss | — |
| — | — |
| — |
| — | — |
| ( |
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| ( | |||||||||||
Warrants modification | — |
| — | — |
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| | — |
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Deemed dividend related to warrants modification | — |
| — | — |
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| ( | — |
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| — |
| ( | |||||||||||
Cumulative translation adjustment | — | — | — | — | — | — |
| — |
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Balances at September 30, 2023 | | $ | | | $ | | $ | | $ | ( | $ | ( | $ | | $ | ( |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
NORTHWEST BIOTHERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(in thousands)
(Unaudited)
For the Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||
Mezzanine equity | Accumulated | |||||||||||||||||||||||||
Series C Convertible | Additional | Other | Total | |||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Subscription | Accumulated | Comprehensive | Stockholders’ | ||||||||||||||||||||
| Shares |
| Amount |
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| Shares |
| Par value |
| Capital |
| Receivable |
| Deficit |
| Income (Loss) |
| Deficit | ||||||||
Balances at January 1, 2024 |
| | $ | | | $ | |
| $ | |
| $ | ( | $ | ( |
| $ | | $ | ( | ||||||
Issuance of Series C convertible preferred stock for cash | | | — | — | — | — | — | — | — | |||||||||||||||||
Series C convertible preferred stock conversion |
| ( | ( | | | | — | — | — | | ||||||||||||||||
Issuance of common stock for cash, net | — | — | | | | — | — | — | | |||||||||||||||||
Warrants exercised for cash | — | — | | | | — | — | — | | |||||||||||||||||
Cashless warrants and stock options exercise | — | — | | | ( | — | — | — | — | |||||||||||||||||
Issuance of common stock for conversion of debt and accrued interest | — | — | | | | — | — | — | | |||||||||||||||||
Issuance of Series C preferred stock for conversion of debt and accrued interest | | | — | — | — | — | — | — | — | |||||||||||||||||
Stock-based compensation | — | — | | — | | — | — | — | | |||||||||||||||||
Net loss |
| — | — | — | — |
| — |
| — | ( |
| — | ( | |||||||||||||
Warrants modification |
| — | — | — | — | | — | — | — | | ||||||||||||||||
Deemed dividend related to warrants modification |
| — | — | — | — | ( | — | — | — | ( | ||||||||||||||||
Cumulative translation adjustment |
| — | — | — | — |
| — |
| — | — |
| ( | ( | |||||||||||||
Balances at September 30, 2024 |
| | $ | | | $ | | $ | | $ | ( | $ | ( | $ | ( | $ | ( |
For the Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||
Mezzanine equity | Accumulated | |||||||||||||||||||||||||
Series C Convertible | Additional | Other | Total | |||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Subscription | Accumulated | Comprehensive | Stockholders’ | ||||||||||||||||||||
| Shares |
| Amount |
|
| Shares |
| Par value |
| Capital |
| Receivable |
| Deficit |
| Income |
| Deficit | ||||||||
Balances at January 1, 2023 | | $ | | | $ | | $ | | $ | ( | $ | ( | $ | |