10-Q 1 phat-20220930.htm 10-Q 10-Q
0001783183--12-31Q30.000208falseP2Y0001783183us-gaap:SubsequentEventMember2022-11-012022-11-010001783183us-gaap:TreasuryStockMember2022-09-300001783183phat:TwoThousandNineteenIncentiveAwardPlanMember2022-01-010001783183us-gaap:AdditionalPaidInCapitalMember2021-03-3100017831832021-04-012021-06-3000017831832021-01-012021-09-300001783183us-gaap:RetainedEarningsMember2021-06-3000017831832021-08-012021-08-3100017831832022-04-012022-06-300001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfAChangeInControlEventEarlierOfAprilOneTwoThousandAndTwentyFourOrFdaApprovalMember2022-05-030001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2021-07-012021-09-300001783183us-gaap:CommonStockMember2022-07-012022-09-300001783183stpr:NJphat:OfficeSpaceMember2022-09-300001783183phat:InitialInvestorsNqSagardAndHerculesMemberphat:RevenueInterestFinancingAgreementMember2022-05-030001783183us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001783183phat:LoanAgreementMemberphat:TermLoanMemberus-gaap:BaseRateMember2021-09-172021-09-170001783183phat:LoanAgreementMemberphat:TermLoansAggregatePrincipalAmountTranchesThreeAndFourMember2022-09-300001783183phat:HerculesLoanAgreementMember2022-01-012022-09-300001783183us-gaap:RetainedEarningsMember2022-09-300001783183phat:LoanAgreementMember2021-09-172021-09-1700017831832022-11-070001783183us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001783183us-gaap:OverAllotmentOptionMember2020-12-160001783183phat:HerculesAndSvbTermLoanMember2021-01-012021-09-300001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2022-09-3000017831832021-01-012021-03-310001783183us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001783183phat:EmployeeStockPurchasePlanMember2022-07-012022-09-300001783183us-gaap:RetainedEarningsMember2020-12-310001783183phat:LoanAgreementMember2021-09-170001783183phat:ATMOfferingProgramMember2022-07-012022-09-300001783183us-gaap:FairValueMeasurementsNonrecurringMember2022-09-300001783183srt:MaximumMemberphat:ATMOfferingProgramMemberphat:OpenMarketSaleAgreementWithJefferiesLLCMember2020-11-012020-11-300001783183phat:TwoThousandNineteenEquityIncentivePlanMember2019-12-3100017831832021-07-012021-09-300001783183us-gaap:TreasuryStockMember2022-01-012022-03-3100017831832022-09-300001783183us-gaap:CommonStockMember2021-01-012021-03-310001783183phat:RevenueInterestFinancingAgreementFundingUponAchievementOfSalesMilestoneAtAnyTimePriorToJuneThirtyTwoThousandAndTwentyFourMembersrt:MaximumMemberphat:InitialInvestorsNqSagardAndHerculesMember2022-05-032022-05-030001783183us-gaap:AdditionalPaidInCapitalMember2022-09-300001783183us-gaap:PrincipalOwnerMember2021-12-310001783183stpr:NJ2022-01-012022-09-300001783183phat:TermLoansAggregatePrincipalAmountTranchesTwoMemberphat:LoanAgreementMember2022-09-300001783183us-gaap:DomesticCountryMember2022-01-012022-09-300001783183phat:TwoThousandNineteenIncentiveAwardPlanMember2019-10-012019-10-3100017831832022-01-012022-03-310001783183us-gaap:CommonStockMember2021-07-012021-09-300001783183phat:HerculesAndSvbTermLoanMember2021-07-012021-09-300001783183phat:EmployeeStockPurchasePlanMember2021-07-012021-09-300001783183us-gaap:RetainedEarningsMember2021-04-012021-06-300001783183us-gaap:FurnitureAndFixturesMember2022-01-012022-09-300001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2022-07-012022-09-300001783183us-gaap:CommonStockMember2019-01-012019-05-060001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfEventOfDefaultBetweenAprilOneTwoThousandAndTwentyFiveAndAprilOneTwoThousandAndTwentyEightMember2022-05-030001783183us-gaap:CommonStockMember2022-06-300001783183stpr:IL2022-09-300001783183us-gaap:RetainedEarningsMember2021-03-310001783183us-gaap:CommonStockMember2022-04-012022-06-3000017831832021-12-310001783183us-gaap:RestrictedStockUnitsRSUMember2022-09-300001783183us-gaap:PrincipalOwnerMember2021-01-012021-09-300001783183phat:TwoThousandNineteenEquityIncentivePlanMember2019-10-310001783183us-gaap:PrimeRateMemberphat:LoanAgreementMemberphat:TermLoanMember2021-09-172021-09-170001783183us-gaap:AdditionalPaidInCapitalMember2022-03-310001783183phat:CommercialSupplyAgreementAndTemporaryServicesAgreementMember2022-09-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:TakedaLicenseAgreementMember2019-05-070001783183us-gaap:OverAllotmentOptionMemberus-gaap:CommonStockMember2019-10-292019-10-2900017831832022-03-310001783183phat:HerculesLoanAgreementMember2022-07-012022-09-300001783183srt:MaximumMemberphat:LoanAgreementMemberphat:TermLoanAdvanceMember2021-09-172021-09-170001783183us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001783183us-gaap:ComputerEquipmentMember2021-12-310001783183us-gaap:FairValueMeasurementsRecurringMember2022-09-300001783183us-gaap:LeaseholdImprovementsMember2022-09-300001783183us-gaap:CommonStockMember2021-12-310001783183us-gaap:CommonStockMemberphat:EmployeeStockPurchasePlanMember2019-10-310001783183phat:UnvestedSharesMember2021-01-012021-09-300001783183phat:PassengerVehiclesMember2022-09-300001783183us-gaap:FurnitureAndFixturesMember2021-12-310001783183us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001783183us-gaap:PerformanceSharesMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2022-09-300001783183phat:StockOptionPerformanceBasedUnitAndRestrictedStockUnitMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2022-01-012022-09-300001783183srt:MinimumMember2022-09-300001783183phat:TwoThousandNineteenEquityIncentivePlanMember2019-01-012019-12-310001783183phat:LoanAgreementMemberphat:TermLoanMember2021-09-172021-09-170001783183us-gaap:TreasuryStockMember2021-12-310001783183us-gaap:PrincipalOwnerMember2021-07-012021-09-300001783183us-gaap:CommonStockMemberphat:TakedaPharmaceuticalCompanyLimitedMemberphat:TakedaLicenseAgreementMember2022-01-012022-09-300001783183phat:TwoThousandNineteenIncentiveAwardPlanMember2022-01-012022-09-300001783183us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001783183phat:SiliconValleyBankTermLoanMemberphat:TermLoanFirstAdvanceMember2021-01-012021-12-310001783183us-gaap:CommonStockMember2021-09-300001783183us-gaap:CommonStockMemberphat:TakedaPharmaceuticalCompanyLimitedMemberphat:TakedaLicenseAgreementMember2019-05-070001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:CommercialSupplyAgreementAndTemporaryServicesAgreementMember2021-01-012021-09-300001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2021-01-012021-09-300001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2022-01-012022-09-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:TakedaLicenseAgreementMember2019-05-072019-05-070001783183us-gaap:CommonStockMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2019-10-012019-10-310001783183phat:InitialInvestorsNqSagardAndHerculesMemberphat:RevenueInterestFinancingAgreementFundingCommitmentOnOrBeforeMarchThirtyOneTwoThousandAndTwentyFourMember2022-05-032022-05-030001783183us-gaap:CommonStockMember2022-01-012022-03-310001783183us-gaap:FurnitureAndFixturesMember2022-09-300001783183phat:EmployeeStockPurchasePlanMember2019-10-012019-10-310001783183us-gaap:CommonStockMember2020-12-310001783183us-gaap:CommonStockMember2021-03-310001783183us-gaap:RetainedEarningsMember2022-01-012022-03-310001783183us-gaap:RestrictedStockUnitsRSUMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2022-09-300001783183us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001783183us-gaap:CommonStockMemberphat:FrazierLifeSciencesIXLimitedPartnerMember2019-03-012019-03-310001783183phat:CommercialSupplyAgreementAndTemporaryServicesAgreementMemberphat:TakedaPharmaceuticalCompanyLimitedMember2022-09-300001783183phat:TwoThousandNineteenIncentiveAwardPlanMember2022-09-300001783183us-gaap:CommonStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2019-05-060001783183us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001783183us-gaap:AdditionalPaidInCapitalMember2021-06-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:CommercialSupplyAgreementAndTemporaryServicesAgreementMember2021-07-012021-09-300001783183us-gaap:LeaseholdImprovementsMember2021-12-310001783183us-gaap:RestrictedStockMemberphat:TwoThousandNineteenEquityIncentivePlanMember2019-01-012019-12-310001783183phat:CommercialSupplyAgreementAndTemporaryServicesAgreementMemberphat:TakedaPharmaceuticalCompanyLimitedMember2021-12-3100017831832021-03-310001783183us-gaap:RetainedEarningsMember2022-07-012022-09-3000017831832021-01-012021-12-310001783183us-gaap:CommonStockMemberphat:EmployeesMember2022-09-300001783183srt:MaximumMemberphat:ComputerEquipmentAndSoftwareMember2022-01-012022-09-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:TakedaLicenseAgreementMember2022-01-012022-09-300001783183us-gaap:ForeignCountryMember2022-01-012022-09-300001783183us-gaap:CommonStockMember2019-11-012019-11-300001783183us-gaap:CommonStockMember2019-11-300001783183phat:UnvestedSharesMember2022-07-012022-09-300001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfAChangeInControlEventEarlierOfAprilOneTwoThousandAndTwentyFourOrFdaApprovalIfOccurrenceIsThereafterToMayThreeTwoThousandAndTwentyThreeMember2022-05-030001783183phat:RevenueInterestFinancingAgreementMember2022-05-032022-05-030001783183us-gaap:OverAllotmentOptionMember2020-12-162020-12-160001783183us-gaap:AdditionalPaidInCapitalMember2022-06-3000017831832022-01-012022-01-310001783183srt:MinimumMemberphat:RevenueInterestFinancingAgreementPercentageOnInvestmentAmountOnDecemberThirtyOneTwoThousandAndThirtySevenMember2022-05-030001783183us-gaap:CommonStockMember2019-05-060001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfAChangeInControlEventEarlierOfAprilOneTwoThousandAndTwentyFourOrFdaApprovalIfOccurrencePriorToMayThreeTwoThousandAndTwentyThreeMember2022-05-030001783183srt:MinimumMemberphat:ComputerEquipmentAndSoftwareMember2022-01-012022-09-300001783183phat:UnvestedSharesMember2021-07-012021-09-300001783183us-gaap:AdditionalPaidInCapitalMember2021-12-3100017831832022-01-012022-09-300001783183us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001783183us-gaap:RetainedEarningsMember2022-04-012022-06-300001783183us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001783183us-gaap:RetainedEarningsMember2021-07-012021-09-300001783183us-gaap:CommonStockMemberphat:FoundersMember2022-09-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:CommercialSupplyAgreementAndTemporaryServicesAgreementMember2022-01-012022-09-300001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfEventOfDefaultPriorToAprilOneTwoThousandAndTwentyFiveMember2022-05-030001783183us-gaap:PerformanceSharesMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2021-12-310001783183phat:StockOptionPerformanceBasedUnitAndRestrictedStockUnitMember2022-09-300001783183us-gaap:SubsequentEventMember2022-11-010001783183srt:MaximumMemberphat:InitialInvestorsNqSagardAndHerculesMemberphat:RevenueInterestFinancingAgreementMember2022-05-032022-05-030001783183phat:ShareBasedPaymentArrangementEmployeeAndNonemployeeMember2022-01-012022-09-300001783183us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001783183us-gaap:PerformanceSharesMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2022-01-012022-09-300001783183us-gaap:CommonStockMemberus-gaap:IPOMember2019-10-292019-10-290001783183phat:EmployeeStockPurchasePlanMember2021-01-012021-09-300001783183us-gaap:PrincipalOwnerMember2022-07-012022-09-300001783183us-gaap:CommonStockMember2022-03-310001783183stpr:NJ2022-09-300001783183us-gaap:TreasuryStockMember2022-06-300001783183phat:RevenueInterestFinancingAgreementMember2022-05-030001783183phat:PCIPharmaServicesMemberphat:ClinicalManufacturingServicesMember2021-12-310001783183phat:CommercialSupplyAgreementsMember2020-05-052020-05-050001783183phat:HerculesAndSvbTermLoanMember2022-09-300001783183us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001783183us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001783183stpr:NJphat:OfficeSpaceMember2022-06-140001783183us-gaap:RetainedEarningsMember2021-01-012021-03-310001783183us-gaap:AdditionalPaidInCapitalMember2020-12-310001783183phat:LoanAgreementMemberphat:TermLoanAdvanceMember2021-09-172021-09-170001783183phat:ATMOfferingProgramMember2022-09-012022-09-300001783183phat:LoanAgreementMemberphat:TermLoanAdvanceMember2022-09-300001783183phat:ATMOfferingProgramMemberphat:OpenMarketSaleAgreementWithJefferiesLLCMember2020-11-012020-11-300001783183us-gaap:ComputerEquipmentMember2022-09-3000017831832020-12-310001783183us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001783183phat:TakedaPharmaceuticalCompanyLimitedMemberphat:CommercialSupplyAgreementAndTemporaryServicesAgreementMember2022-07-012022-09-300001783183us-gaap:RetainedEarningsMember2021-09-300001783183srt:MaximumMemberphat:InitialInvestorsNqSagardAndHerculesMemberphat:RevenueInterestFinancingAgreementFundingUponFdaApprovalAtAnyTimePriorToDecemberThirtyOneTwoThousandAndTwentyTwoMember2022-05-0300017831832022-07-012022-09-300001783183stpr:IL2022-01-012022-09-300001783183us-gaap:CommonStockMember2019-03-310001783183us-gaap:RetainedEarningsMember2022-06-300001783183phat:AmendmentToLoanAgreementMember2022-09-270001783183phat:RevenueInterestFinancingAgreementUponOccurrenceOfEventOfDefaultAfterAprilOneTwoThousandAndTwentyEightMember2022-05-030001783183us-gaap:AdditionalPaidInCapitalMember2021-09-300001783183us-gaap:PrincipalOwnerMember2022-01-012022-09-3000017831832022-07-012022-07-310001783183us-gaap:CommonStockMemberphat:FollowOnPublicOfferingMember2020-12-012020-12-310001783183phat:TermLoansAggregatePrincipalAmountTranchesOneMemberphat:LoanAgreementMember2021-09-170001783183us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001783183phat:EmployeeStockPurchasePlanMember2022-01-012022-09-300001783183us-gaap:RestrictedStockUnitsRSUMemberphat:TwoThousandNineteenIncentiveAwardPlanMember2022-01-012022-09-3000017831832021-06-300001783183phat:UnvestedSharesMember2022-01-012022-09-300001783183us-gaap:CommonStockMemberphat:TakedaLicenseAgreementMember2019-05-012019-05-310001783183us-gaap:CommonStockMember2019-03-012019-03-310001783183srt:MinimumMemberphat:RevenueInterestFinancingAgreementPercentageOnInvestmentAmountOnDecemberThirtyOneTwoThousandAndTwentyEightMember2022-05-030001783183us-gaap:RetainedEarningsMember2021-12-310001783183us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001783183phat:EmployeeStockPurchasePlanMember2019-10-310001783183us-gaap:RetainedEarningsMember2022-03-310001783183us-gaap:CommonStockMember2022-09-300001783183phat:LoanAgreementMemberphat:TermLoanMember2021-09-170001783183us-gaap:TreasuryStockMember2022-03-3100017831832022-06-300001783183us-gaap:CommonStockMember2021-06-300001783183us-gaap:CommonStockMemberus-gaap:IPOMember2019-10-2900017831832021-09-300001783183phat:LoanAgreementMemberphat:TermLoanMemberphat:PaymentInKindPikInterestRateMember2021-09-170001783183us-gaap:PrincipalOwnerMember2022-09-300001783183phat:LoanAgreementMemberus-gaap:CommonStockMember2021-09-170001783183phat:CommonStockWarrantMember2022-09-300001783183phat:EmployeeStockPurchasePlanMember2022-09-300001783183phat:ATMOfferingProgramMember2022-01-012022-09-300001783183us-gaap:CommonStockMember2021-04-012021-06-30xbrli:purephat:Optionutr:sqftxbrli:sharesiso4217:USDxbrli:sharesphat:Segmentiso4217:USD

 

 

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, 2022

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: 001-39094

 

PHATHOM PHARMACEUTICALS, INC.

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

82-4151574

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

100 Campus Drive, Suite 102

Florham Park, New Jersey

 

07932

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (877) 742-8466

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

 

PHAT

 

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 November 7, 2022, the registrant had 41,620,855 shares of common stock ($0.0001 par value) outstanding.

 

 

 


 

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

Item 1

 

Financial Statements (unaudited)

F-1

 

 

Balance Sheets

F-1

 

 

Statements of Operations and Comprehensive Loss

F-2

 

 

Statements of Stockholders’ Equity (Deficit)

F-3

 

 

Statements of Cash Flows

F-5

 

 

Notes to Unaudited Financial Statements

F-6

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

33

 

PART II. OTHER INFORMATION

 

Item 1

 

Legal Proceedings

34

Item 1A

 

Risk Factors

34

Item 2

 

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 3

 

Defaults Upon Senior Securities

35

Item 4

 

Mine Safety Disclosures

35

Item 5

 

Other Information

35

Item 6

 

Exhibits

36

 

 

Signatures

37

 

 

 


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

PHATHOM PHARMACEUTICALS, INC.

Balance Sheets

(Unaudited)

(in thousands, except share and par value amounts)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

196,838

 

 

$

183,259

 

Prepaid expenses and other current assets

 

 

975

 

 

 

3,267

 

Total current assets

 

 

197,813

 

 

 

186,526

 

Property, plant and equipment, net

 

 

831

 

 

 

650

 

Operating lease right-of-use assets

 

 

2,482

 

 

 

1,914

 

Other long-term assets

 

 

805

 

 

 

341

 

Total assets

 

$

201,931

 

 

$

189,431

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable (including related party amounts of $80 and $1,343, respectively)

 

 

7,135

 

 

 

5,150

 

Accrued clinical trial expenses

 

 

139

 

 

 

1,402

 

Accrued expenses (including related party amounts of $2,383 and $2,330, respectively)

 

 

13,289

 

 

 

11,405

 

Accrued interest

 

 

686

 

 

 

477

 

Current portion of revenue interest financing liability

 

 

945

 

 

 

 

Operating lease liabilities, current

 

 

685

 

 

 

487

 

Total current liabilities

 

 

22,879

 

 

 

18,921

 

 

 

 

 

 

 

 

Long-term debt, net of discount

 

 

93,878

 

 

 

89,671

 

Revenue interest financing liability

 

 

102,850

 

 

 

 

Operating lease liabilities

 

 

1,247

 

 

 

1,183

 

Other long-term liabilities

 

 

7,500

 

 

 

7,500

 

Total liabilities

 

 

228,354

 

 

 

117,275

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; authorized shares — 40,000,000; no shares issued and outstanding at September 30, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value; authorized shares — 400,000,000; issued shares — 41,620,874 and 31,656,035 at September 30, 2022 and December 31, 2021, respectively; outstanding shares — 41,143,826 and 30,511,226 at September 30, 2022 and December 31, 2021, respectively

 

 

3

 

 

 

3

 

Treasury stock — 19 and 1 at September 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Additional paid-in capital

 

 

645,620

 

 

 

601,523

 

Accumulated deficit

 

 

(672,046

)

 

 

(529,370

)

Total stockholders’ (deficit) equity

 

 

(26,423

)

 

 

72,156

 

Total liabilities and stockholders’ equity

 

$

201,931

 

 

$

189,431

 

 

See accompanying notes.

F-1


 

PHATHOM PHARMACEUTICALS, INC.

Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

2021

 

2022

 

2021

Operating expenses:

 

 

 

 

 

 

 

 

Research and development (includes related party amounts of $77, $849, $1,800, and $2,695, respectively)

 

$19,020

 

$16,608

 

$55,495

 

$58,786

General and administrative (includes related party amounts of $0, $0, $0, and $16, respectively)

 

23,509

 

16,529

 

70,303

 

43,254

Total operating expenses

 

42,529

 

33,137

 

125,798

 

102,040

 

 

 

 

 

 

 

 

 

Loss from operations

 

  (42,529)

 

  (33,137)

 

  (125,798)

 

  (102,040)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

726

 

8

 

845

 

35

Interest expense

 

  (9,277)

 

  (1,485)

 

  (17,703)

 

  (4,013)

Other expense

 

  (11)

 

  (2,048)

 

  (20)

 

  (2,039)

Total other expense

 

  (8,562)

 

  (3,525)

 

  (16,878)

 

  (6,017)

Net loss and comprehensive loss

 

$(51,091)

 

$(36,662)

 

$(142,676)

 

$(108,057)

Net loss per share, basic and diluted

 

$(1.32)

 

$(0.98)

 

$(3.72)

 

$(2.94)

Weighted-average shares of common stock outstanding, basic and diluted

 

38,820,266

 

37,299,351

 

38,379,292

 

36,748,492

 

See accompanying notes.

F-2


 

PHATHOM PHARMACEUTICALS, INC.

Statements of Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except share amounts)

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

30,511,226

 

 

$

3

 

 

 

1

 

 

$

601,523

 

 

$

(529,370

)

 

$

72,156

 

Cashless exercise of common stock warrants

 

 

7,359,285

 

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

401(k) matching contribution

 

 

16,756

 

 

 

 

 

 

 

 

 

254

 

 

 

 

 

 

254

 

Vesting of restricted shares

 

 

222,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

5,775

 

 

 

 

 

 

5,775

 

ESPP shares issued

 

 

39,951

 

 

 

 

 

 

 

 

 

515

 

 

 

 

 

 

515

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(40,665

)

 

 

(40,665

)

Balance at March 31, 2022

 

 

38,149,813

 

 

$

3

 

 

 

19

 

 

$

608,067

 

 

$

(570,035

)

 

$

38,035

 

Vesting of restricted shares

 

 

222,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

5,885

 

 

 

 

 

 

5,885

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,920

)

 

 

(50,920

)

Balance at June 30, 2022

 

 

38,372,403

 

 

$

3

 

 

 

19

 

 

$

613,952

 

 

$

(620,955

)

 

$

(7,000

)

Issuance of common stock from exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

401(k) matching contribution

 

 

84,784

 

 

 

 

 

 

 

 

 

862

 

 

 

 

 

 

862

 

Vesting of restricted shares

 

 

222,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under ATM facility

 

 

2,414,897

 

 

 

 

 

 

 

 

 

24,596

 

 

 

 

 

 

24,596

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

5,816

 

 

 

 

 

 

5,816

 

ESPP shares issued

 

 

49,147

 

 

 

 

 

 

 

 

 

394

 

 

 

 

 

 

394

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(51,091

)

 

 

(51,091

)

Balance at September 30, 2022

 

 

41,143,826

 

 

$

3

 

 

 

19

 

 

$

645,620

 

 

$

(672,046

)

 

$

(26,423

)

 

See accompanying notes.

 

F-3


 

 

PHATHOM PHARMACEUTICALS, INC.

Statements of Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except share amounts)

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2020

 

 

28,516,010

 

 

$

3

 

 

 

 

 

$

579,755

 

 

$

(385,487

)

 

$

194,271

 

Issuance of common stock from exercise of stock options

 

 

36,998

 

 

 

 

 

 

 

 

 

412

 

 

 

 

 

 

412

 

401(k) matching contribution

 

 

8,356

 

 

 

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Vesting of restricted shares

 

 

301,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

3,818

 

 

 

 

 

 

3,818

 

ESPP shares issued

 

 

13,490

 

 

 

 

 

 

 

 

 

358

 

 

 

 

 

 

358

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,843

)

 

 

(34,843

)

Balance at March 31, 2021

 

 

28,876,510

 

 

$

3

 

 

 

 

 

$

584,666

 

 

$

(420,330

)

 

$

164,339

 

Issuance of common stock from exercise of stock options

 

 

8,000

 

 

 

 

 

 

 

 

 

104

 

 

 

 

 

 

104

 

Vesting of restricted shares

 

 

301,659

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,237

 

 

 

 

 

 

4,237

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,552

)

 

 

(36,552

)

Balance at June 30, 2021

 

 

29,186,169

 

 

$

3

 

 

 

 

 

$

589,007

 

 

$

(456,882

)

 

$

132,128

 

Issuance of common stock from exercise of stock options

 

 

50,073

 

 

 

 

 

 

 

 

 

1,265

 

 

 

 

 

 

1,265

 

401(k) matching contribution

 

 

18,394

 

 

 

 

 

 

 

 

 

580

 

 

 

 

 

 

580

 

Vesting of restricted shares

 

 

776,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,419

 

 

 

 

 

 

4,419

 

ESPP shares issued

 

 

16,747

 

 

 

 

 

 

 

 

 

461

 

 

 

 

 

 

461

 

'Issuance of warrants

 

 

 

 

 

 

 

 

 

 

 

1,290

 

 

 

 

 

 

1,290

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,662

)

 

 

(36,662

)

Balance at September 30, 2021

 

 

30,047,428

 

 

$

3

 

 

 

 

 

$

597,022

 

 

$

(493,544

)

 

$

103,481

 

 

See accompanying notes.

F-4


 

PHATHOM PHARMACEUTICALS, INC.

Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(142,676

)

 

$

(108,057

)

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

 

 

 

 

 

 

Depreciation and amortization