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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: 001-38558
tcda-20220930_g1.jpg
TRICIDA, INC.
(Exact name of registrant as specified in its charter)
Delaware46-3372526
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
7000 Shoreline Court, Suite 201, South San Francisco, CA 94080
(Address of principal executive offices, including zip code)
(415) 429-7800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of exchange on which registered
Common stock, par value $0.001 per shareTCDAThe 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 filerAccelerated filer
Non-accelerated filerSmaller 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
On November 9, 2022, the registrant had 58,028,254 shares of common stock, par value $0.001 per share, outstanding.




TABLE OF CONTENTS
Note Regarding Forward-Looking Statements
Part I. Financial Information
Item 1.Financial Statements (Unaudited):
Condensed Balance Sheets as of September 30, 2022 and December 31, 2021
Condensed Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021
Condensed Statements of Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2022 and 2021
Condensed Statements of Cash Flows for the nine months ended September 30, 2022 and 2021
Notes to Condensed Financial Statements
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
Signatures





NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements generally can be identified by words such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:
our ability to continue as a going concern and to obtain capital to fund our business, as well as the potential change in our business if we are not able to obtain necessary funding;
our strategic review process, the time table of such process, our ability to successfully complete any transaction identified by such process and the proceeds, if any, that may be available to stakeholders as a result of such process;
our announced workforce reduction and its related costs and effects on our business;
estimates of our expenses, capital requirements and our needs for additional financing;
the prospects of veverimer (also known as TRC101), our only investigational drug candidate;
our future research and development expenses;
our ability to attract, retain and motivate key personnel;
the scope of protection we are able to establish and maintain for intellectual property rights covering veverimer;
potential claims relating to our intellectual property and third-party intellectual property;
the duration of our intellectual property estate that will provide protection for veverimer;
potential, anticipated, or ongoing litigation;
our ability to conduct additional financings;
our ability to establish collaborations in lieu of obtaining additional financing;
our ability to meet the continued listing requirements of the Nasdaq Global Select Market; and
our financial performance.
These forward-looking statements are based on management’s current expectations, estimates, forecasts, and projections about our business and the industry in which we operate and management’s beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this Quarterly Report on Form 10-Q may turn out to be inaccurate. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under, or referenced in, Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021, and Part II, Item 1A. “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Investors in our securities are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. Investors in our securities should, however, review the factors and risks we describe in the reports we will file from time to time with the Securities and Exchange Commission after the date of this Quarterly Report on Form 10-Q.

1



PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRICIDA, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
September 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$17,744 $21,113 
Short-term investments62,475 119,419 
Prepaid expenses and other current assets2,265 5,004 
Total current assets82,484 145,536 
Long-term investments 10,043 
Property and equipment, net541 769 
Operating lease right-of-use assets10,854 12,158 
Total assets$93,879 $168,506 
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable$4,395 $10,023 
Current operating lease liabilities2,797 2,736 
Accrued expenses and other current liabilities9,735 16,721 
Total current liabilities16,927 29,480 
Convertible Senior Notes, net195,347 127,512 
Non-current operating lease liabilities9,851 11,296 
Other long-term liabilities7,852  
Total liabilities229,977 168,288 
Commitments and contingencies (Note 5)
Stockholders’ equity (deficit):
Preferred stock, $0.001 par value; 40,000,000 shares authorized, no shares issued or outstanding as of September 30, 2022 and December 31, 2021.
  
Common stock, $0.001 par value; 400,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 55,694,651 and 55,363,461 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.
56 55 
Additional paid-in capital746,234 810,618 
Accumulated other comprehensive income (loss)(428)(91)
Accumulated deficit(881,960)(810,364)
Total stockholders’ equity (deficit) (136,098)218 
Total liabilities and stockholders’ equity (deficit)$93,879 $168,506 
See accompanying notes to condensed financial statements (unaudited).

2



TRICIDA, INC.
CONDENSED 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,
 2022202120222021
Operating expenses:
Research and development$19,935 $26,635 $55,298 $78,591 
General and administrative4,125 9,052 23,119 28,497 
Total operating expenses24,060 35,687 78,417 107,088 
Loss from operations(24,060)(35,687)(78,417)(107,088)
Other income (expense), net277 6 408 155 
Interest expense(1,978)(3,994)(5,927)(13,533)
Loss on early extinguishment of 2018 Term Loan   (6,124)
Net loss(25,761)(39,675)(83,936)(126,590)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale investments, net of tax47 (15)(337)(141)
Total comprehensive loss$(25,714)$(39,690)$(84,273)$(126,731)
Net loss per share, basic and diluted$(0.44)$(0.79)$(1.45)$(2.52)
Weighted-average number of shares outstanding, basic and diluted58,015,939 50,434,879 57,854,606 50,326,474 
See accompanying notes to condensed financial statements (unaudited).

3



TRICIDA, INC.
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(Unaudited)
(in thousands, except share amounts)

 Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders’ Equity (Deficit)
 SharesAmount
Balance at December 31, 202155,363,461 $55 $810,618 $(91)$(810,364)$218 
Cumulative effect of ASU 2020-06 adoption— — (79,498)— 12,340 (67,158)
Issuance of common stock under equity incentive plans33,697 — 41 — — 41 
Stock-based compensation— — 6,524 — — 6,524 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (286)— (286)
Net loss— — — — (29,639)(29,639)
Balance at March 31, 202255,397,158 55 737,685 (377)(827,663)(90,300)
Issuance of common stock under equity incentive plans264,185 1 638 — — 639 
Stock-based compensation— — 7,071 — — 7,071 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (98)— (98)
Net loss— — — — (28,536)(28,536)
Balance at June 30, 202255,661,343 56 745,394 (475)(856,199)(111,224)
Issuance of common stock under equity incentive plans33,308 — 53 — — 53 
Stock-based compensation— — 787 — — 787 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — 47 — 47 
Net loss— — — — (25,761)(25,761)
Balance at September 30, 202255,694,651 $56 $746,234 $(428)$(881,960)$(136,098)

4



 Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders’ Equity (Deficit)
 SharesAmount
Balance at December 31, 202050,210,779 $50 $742,555 $64 $(633,798)$108,871 
Issuance of common stock under equity incentive plans61,946 — 115 — — 115 
Stock-based compensation— — 6,042 — — 6,042 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (105)— (105)
Net loss— — — — (53,362)(53,362)
Balance at March 31, 202150,272,725 50 748,712 (41)(687,160)61,561 
Issuance of common stock under equity incentive plans156,009 — 333 — — 333 
Stock-based compensation— — 6,609 — — 6,609 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (21)— (21)
Net loss— — — — (33,553)(33,553)
Balance at June 30, 202150,428,734 50 755,654 (62)(720,713)34,929 
Issuance of common stock under equity incentive plans18,844 — 14 — — 14 
Stock-based compensation— — 6,649 — — 6,649 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (15)— (15)
Net loss— — — — (39,675)(39,675)
Balance at September 30, 202150,447,578 $50 $762,317 $(77)$(760,388)$1,902 
See accompanying notes to condensed financial statements (unaudited).

5



TRICIDA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 Nine Months Ended
September 30,
 20222021
Operating activities:
Net loss$(83,936)$(126,590)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization231 351 
Non-cash operating lease costs(80)574 
Amortization of premiums and accretion of discounts on investments, net(211)440 
Accretion of Convertible Senior Notes and 2018 Term Loan677 7,047 
Loss on early extinguishment of 2018 Term Loan 6,124 
Stock-based compensation14,382 19,300 
Changes in compound derivative liability (202)
Other non-cash items (29)
Changes in operating assets and liabilities:
Prepaid expenses and other assets2,739 105 
Accounts payable(5,628)(245)
Accrued expenses and other liabilities1,095 (8,871)
Net cash used in operating activities(70,731)(101,996)
Investing activities:
Purchases of investments(75,637)(136,345)
Proceeds from maturities of investments142,500 200,409 
Purchases of property and equipment(3)(76)
Net cash provided by investing activities66,860 63,988 
Financing activities:
Proceeds from equity offerings, net(33) 
Proceeds from issuance of common stock under equity incentive plans733 462 
Payments for taxes related to net share settlement of equity awards(198) 
Repayment of leasehold improvement loan (38)
Cash paid for early extinguishment of 2018 Term Loan (83,285)
Net cash provided by (used in) financing activities502 (82,861)
Net decrease in cash and cash equivalents(3,369)(120,869)
Cash and cash equivalents at beginning of period21,113 137,857 
Cash and cash equivalents at end of period$17,744 $16,988 
Supplemental disclosures
Cash paid for interest$3,500 $5,274 
See accompanying notes to condensed financial statements (unaudited).

6



TRICIDA, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Organization—Tricida, Inc., or the Company, was incorporated in the state of Delaware on May 22, 2013. The Company is focused on its investigational drug candidate, veverimer (also known as TRC101), a non-absorbed, orally-administered polymer designed to slow chronic kidney disease, or CKD, progression through the treatment of metabolic acidosis in patients with metabolic acidosis and CKD.
Funding Requirements—The Company has sustained operating losses since inception. Until recently, the Company’s primary strategic and operational focus was on completion of the VALOR-CKD renal outcomes clinical trial (also known as TRCA-303), which was designed to evaluate veverimer’s ability to slow CKD progression in patients with metabolic acidosis and chronic kidney disease. On October 24, 2022, the Company announced that the VALOR-CKD trial did not meet its primary endpoint, which was defined as the time to the first occurrence of any event in the composite endpoint of renal death, end-stage renal disease, or ESRD, or a confirmed greater than or equal to 40% reduction in estimated glomerular filtration rate, or eGFR, also known as DD40. The outcome of the VALOR-CKD trial has severely harmed the Company’s business, financial condition and prospects as a going concern and has also limited the Company’s access to funds. Through September 30, 2022, the Company has relied primarily on the proceeds from equity offerings and debt financing to finance its operations.
The Company has incurred losses and negative cash flows from operations since its inception in 2013 and management anticipates that the Company will continue to incur net losses for the foreseeable future. As of September 30, 2022, the Company had an accumulated deficit of $882.0 million. The Company's existing cash, cash equivalents and investments are not likely to be sufficient to fund the Company's operations through the second quarter of 2023. The Company may be unable to continue operations, particularly with the recently completed reduction in force and in view of the Company's limited access to funds. The Company is considering possible strategic alternatives, including a sale of the Company or its assets, a merger, reverse merger, wind-down, liquidation and dissolution or other strategic transaction. Management recognizes that the Company may need to raise additional capital to continue operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of the issuance of these condensed financial statements.
The accompanying unaudited condensed financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The unaudited condensed financial statements do not reflect any adjustments relating to the recoverability and reclassifications of assets and liabilities that might be necessary if the Company is unable to continue as a going concern.
Basis of Presentation—The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed financial statements as of and for the three and nine months ended September 30, 2022 and 2021 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed balance sheet as of December 31, 2021, has been derived from audited financial statements. Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year.
Certain information and footnote information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
There have been no material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, other than the adoption of ASU No. 2020-06, Debt –

7



Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06, as described below.
Recent Accounting Pronouncements
Adopted Standards
In August 2020, the FASB issued ASU 2020-06. ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in Accounting Standards Codification, or ASC, 470-20, Debt – Debt with Conversion and Other Options, or ASC 470-20, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity, for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract.
The Company adopted ASU 2020-06 effective January 1, 2022, using the modified retrospective method. On adoption, the Company accounted for the Convertible Senior Notes as a single liability measured at amortized cost resulting in reduced prospective non-cash interest expense due to the de-recognition of the remaining debt discount associated with the equity component. The cumulative impact of the adoption of ASU 2020-06 reflected on the Company's condensed balance sheet as of January 1, 2022, is as follows.
in thousandsBalance at December 31, 2021Cumulative Impact of ASU 2020-06 AdoptionBalance at January 1, 2022
Liabilities
Convertible Senior Notes, net$127,512 $67,158 $194,670 
Stockholder's Equity
Additional paid-in capital810,618 (79,498)731,120 
Accumulated deficit(810,364)12,340 (798,024)
Under the modified retrospective method, financial information and disclosures for periods before January 1, 2022, will continue to be presented in accordance with ASC 470-20. The adoption did not impact previously reported amounts in our condensed statements of operations and comprehensive loss and cash flows and our basic and diluted net loss per share amounts.
NOTE 3. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of the Company’s financial assets and liabilities are determined in accordance with the fair value hierarchy established in the FASB's ASC Topic 820, Fair Value Measurements and Disclosures, or Topic 820. Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy of Topic 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:
Level 1—Observable inputs, such as quoted prices in active markets;
Level 2—Inputs, other than the quoted prices in active markets, which are observable either directly or indirectly such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life; and
Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term investments, accounts payable and the Convertible Senior Notes.

8



Cash, cash equivalents and investments are reported at their respective fair values on the Company's condensed balance sheets. Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds and U.S. Treasury securities as Level 1. When quoted market prices are not available for a specific security, then the Company estimates fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models incorporate expected future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third-party data providers, including but not limited to benchmark yields, reported trades and broker/dealer quotes. Where applicable the market approach utilizes prices and information from market transactions for similar or identical assets. The Company classifies U.S. government agency securities, commercial paper and corporate debt securities as Level 2. The Company's short-term and long-term investments are classified as available-for-sale.
The following tables set forth the value of the Company's financial assets remeasured on a recurring basis based on the three-tier fair value hierarchy by significant investment category as of September 30, 2022 and December 31, 2021.
September 30, 2022
Reported as:
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and Cash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$1,444 $— $— $1,444 $1,444 $— $— 
Level 1:
Money market funds12,071 — — 12,071 12,071 — — 
U.S. Treasury securities13,009  (112)12,897  12,897  
Subtotal25,080  (112)24,968 12,071 12,897  
Level 2:
U.S. government agency securities 5,000  (66)4,934  4,934  
Commercial paper
47,023  (137)46,886 4,229 42,657  
Corporate debt securities
2,009  (22)1,987  1,987  
Subtotal54,032  (225)53,807 4,229 49,578  
Total assets measured at fair value
$80,556 $ $(337)$80,219 $17,744 $62,475 $ 
December 31, 2021
Reported as:
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and Cash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$2,965 $— $— $2,965 $2,965 $— $— 
Level 1:
Money market funds18,148 — — 18,148 18,148 — — 
U.S. Treasury securities8,028  (11)8,017   8,017 
Subtotal26,176  (11)26,165 18,148  8,017 
Level 2:
U.S. government agency securities10,000   10,000  10,000  
Commercial paper
107,397 20 (4)107,413  107,413  
Corporate debt securities
4,036  (4)4,032  2,006 2,026 
Subtotal121,433 20 (8)121,445  119,419 2,026 
Total assets measured at fair value
$150,574 $20 $(19)$150,575 $21,113 $119,419 $10,043 

9



The following table presents a reconciliation of financial liabilities related to the compound derivative liability associated with the Loan and Security Agreement, or 2018 Term Loan, with Hercules Capital Inc., or Hercules, measured at fair value on a recurring basis using Level 3 unobservable inputs for the nine months ended September 30, 2021. The key valuation assumptions used were the discount rate and the probability of the occurrence of certain events. In conjunction with early extinguishment of the 2018 Term Loan on March 12, 2021, the Company extinguished the compound derivative liability associated with the 2018 Term Loan.
Nine Months Ended
September 30,
(in thousands)2021
Fair value at beginning of period$202 
Extinguishment of compound derivative liability upon extinguishment of 2018 Term Loan(202)
Fair value at end of period$ 
The estimated fair value of the Convertible Senior Notes was $105.2 million as of September 30, 2022 measured using Level 3 inputs. The key valuation assumptions used consist of the discount rate of 27.8% and volatility of 110.0%.
NOTE 4. BORROWINGS
On May 22, 2020, the Company issued $200.0 million aggregate principal amount of 3.5% convertible senior notes due 2027, or the Convertible Senior Notes. The Convertible Senior Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock at the Company’s election at an initial conversion rate of 30.0978 shares of the Company’s common stock per $1,000 principal amount of the Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $33.23 per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture. As of September 30, 2022, the “if-converted value” did not exceed the remaining principal amount of the Convertible Senior Notes.
At issuance, the Convertible Senior Notes were bifurcated into liability and equity components and accounted for separately. The carrying amount of the liability component was calculated to be $117.7 million by measuring the fair value of similar debt instruments that did not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes. The carrying amount of the equity component was calculated to be $82.3 million and was recorded in additional paid-in capital. The allocation of proceeds into the equity component resulted in a debt discount for the Convertible Senior Notes that was amortized to interest expense at an effective interest rate of 13.5% through December 31, 2021, over the effective life of the Convertible Senior Notes of 7.0 years, using the effective interest method.
As discussed in Note 2. "Summary of Significant Accounting Policies", effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method and, as a result, accounted for the Convertible Senior Notes as a single liability measured at amortized cost. The following table presents the Convertible Senior Notes' outstanding balances as of September 30, 2022 and December 31, 2021.
(in thousands)September 30,
2022
December 31,
2021
Liability component:
Principal $200,000 $200,000 
Unamortized discount - equity component (68,926)
Unamortized underwriter discounts and issuance costs(4,653)(3,562)
Net carrying amount$195,347 $127,512 
Equity component, net of underwriter discounts and issuance costs$ $79,498 

10



The remaining unamortized debt discount is being amortized to interest expense at an effective interest rate of 4.1% over the remaining life of the Senior Convertible Notes.
The following table presents the interest expense related to the Convertible Senior Notes for the three and nine months ended September 30, 2022 and 2021.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2022202120222021
Contractual interest expense$1,750 $1,750 $5,250 $5,250 
Amortization of debt discount 2,175  6,334 
Amortization of underwriter discounts and issuance costs228 69 677 192 
Total interest expense$1,978 $3,994 $5,927 $11,776 
NOTE 5. COMMITMENTS AND CONTINGENCIES
On October 4, 2019, the Company and Patheon Austria GmbH & Co KG, or Patheon, entered into a multi-year Manufacturing and Commercial Supply Agreement as amended by Amendment No. 1 dated March 30, 2021, Amendment No. 2 dated August 26, 2021, Amendment No. 3 dated July 1, 2022 and Amendment No. 4 dated September 15, 2022, or Amendment No. 4, collectively the Supply Agreement, under which Patheon agreed to manufacture and supply veverimer to support the Company's commercialization efforts. Under the Supply Agreement, the Company is obligated to make certain purchases of API. The Company and Patheon are also parties to a Master Development/Validation Services and Clinical/Launch Supply Agreement, or the MDA, pursuant to which Patheon agreed to manufacture and supply veverimer. Certain manufacturing activities previously governed by the MDA are now subject to the Supply Agreement, whereas other ongoing manufacturing activities under the MDA will continue to be governed by the MDA until such activities are complete.
The Supply Agreement may be terminated by either party following an uncured material breach by the other party, in the event the other party becomes insolvent or subject to bankruptcy proceedings, or in connection with a force majeure event that continues beyond 12 months. The Company’s obligation to purchase veverimer is subject to minimum and maximum annual commitments, with the minimum commitments subject to modest reduction in certain circumstances. Patheon has made facility improvements under the Supply Agreement and is the exclusive owner of the purchased equipment and facility improvements. Patheon may manufacture other products with the facility improvements when not occupied by manufacturing veverimer. Under the Supply Agreement, the Company has agreed to reimburse Patheon up to a specified amount for plant modifications. These payments were recorded in research and development expense.
The Company has contractual obligations from its manufacturing service contracts as of September 30, 2022. The purchase obligations are comprised of non-cancelable purchase commitments under the Supply Agreement with Patheon. These amounts are based on forecasts that included estimates of future market demand, quantity discounts and manufacturing efficiencies. In addition, purchase commitments under the Supply Agreement are denominated in Euro and therefore subject to changes in foreign exchange rates. For the three months ended September 30, 2022, the Company recognized foreign currency remeasurement gains of $0.5 million, classified as research and development expense in the condensed statements of operations and comprehensive loss. The amounts disclosed below are applicable under the terms of Amendment No. 4; however, actual costs may differ if the Patheon contract is modified and/or terminated.
(in thousands)Total20222023 - 20242025 - 2026Thereafter
Manufacturing and service contracts1
$470,696 $10,364 $97,393 $96,784 $266,155 
1Excludes $7.9 million recorded as other long-term liabilities in the condensed balance sheet as of September 30, 2022.
Contingencies
On January 6, 2021, a putative securities class action was filed in the U.S. District Court for the Northern District of California against the Company and its CEO and CFO, Pardi v. Tricida, Inc., et al., 21-cv-00076 (the "Securities Class Action"). In April 2021, the court appointed Jeffrey Fiore as lead plaintiff and Block & Leviton LLP as lead plaintiffs’ counsel. In June 2021, the lead plaintiff filed an amended complaint which alleges that during the period between June 28, 2018 through February 25, 2021, the Company and its senior officers violated federal securities

11



laws, including under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, through alleged public misrepresentations and/or omissions of material facts concerning the Company's New Drug Application, or NDA, for veverimer and the likelihood and timing of approval of veverimer by the U.S. Food and Drug Administration, or FDA. The amended complaint makes claims against the Company and its CEO. In July 2021, the defendants filed a motion to dismiss the amended complaint. On July 29, 2022, the court issued an order granting in part and denying in part the defendants’ motion to dismiss. The court granted the defendants’ motion with respect to all but one of the alleged misrepresentations on the grounds that the lead plaintiff had failed to meet the required pleading standards for a securities fraud claim, but ruled that those requirements had been satisfied with respect to one alleged misrepresentation from May 7, 2020. The court granted the lead plaintiff leave to file an amended complaint within 21 days of the court’s order, but the plaintiff chose to proceed with the case based solely on the surviving alleged misrepresentations. A case management conference was held on September 20, 2022 and, on October 5, 2022, the court entered a scheduling order for the case which provides that, assuming the case proceeds, a jury trial would be held on June 3, 2024. The defendants filed their answer to the amended complaint on October 7, 2022 and the case is currently in the fact discovery phase. No damages amount is specified in the Securities Class Action.
On February 15, 2021, a derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Ricks v. Alpern et al., Case No, 1:21-cv-000205 (the "Ricks Derivative Case"). The Ricks Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties and wasted corporate assets. Additionally, the complaint asserts claims against the senior officers for violation of Sections 10(b) and 21D of the Securities Exchange Act of 1934. No damages amount is specified in the Ricks Derivative Case.
On April 8, 2021 a second derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Goodman v. Klaerner et al., Case No, 1:21-cv-00510 (the “Goodman Derivative Case”). As with the Ricks Derivative Case, the Goodman Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties. Additionally, the complaint asserts claims against the senior officers for violation of Sections 10(b) and 21D of the Securities Exchange Act of 1934. No damages amount is specified in the Goodman Derivative Case.
On May 27, 2021, a third derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Verica v. Veitinger et al., Case No, 1:21-cv-00759 (the "Verica Derivative Case" and collectively with the Goodman Derivative Case and Ricks Derivative Case, the "Derivative Cases"). As with the Goodman Derivative Case and Ricks Derivative Case, the Verica Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties. Additionally, the complaint asserts claims for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and for unjust enrichment and waste of corporate assets. No damages amount is specified in the Verica Derivative Case.
The Derivative Cases were consolidated by order of the District of Delaware Court and lead plaintiffs' counsel has been appointed. Pursuant to an agreement between the parties, the Delaware court issued an order on October 12, 2021, staying the consolidated derivative case pending final resolution of any motions to dismiss filed in the Securities Class Action. Because the Securities Class Action case is now moving forward, the derivative plaintiffs have informed defendants that they plan to file an amended consolidated derivative amended complaint.
As of September 30, 2022, the Company has not provided for a loss contingency in its condensed financial statements relating to the Securities Class Action and the Derivative Cases since it is not probable that a loss has been incurred.
The Company does not believe that any ultimate liability resulting from any of these claims will have a material adverse effect on its results of operations, financial position, or liquidity. However, the Company cannot give any assurance regarding the ultimate outcome of these claims, and their resolution could be material to operating results for any particular period. Further, while there are no other material legal proceedings that the Company is aware of, the Company may become party to various claims and complaints arising in the ordinary course of business.

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NOTE 6. STOCKHOLDERS' EQUITY
On November 15, 2021, the Company entered into a securities purchase agreement with several investors and an officer of the Company, or Registered Direct Equity Financing, pursuant to which the Company agreed to issue and sell to the investors, in a private placement, an aggregate of (i) 4,666,667 shares of the Company’s common stock, together with warrants, or the Common Warrants, to purchase up to 4,666,667 shares of common stock, with each Common Warrant exercisable for one share of common stock at a price of $11.00, and (ii) 2,333,333 pre-funded warrants, or Pre-Funded Warrants, together with the Common Warrants to purchase up to 2,333,333 shares of common stock at a nominal exercise price of $0.001. Each share of common stock and accompanying Common Warrant and each Pre-Funded Warrant and accompanying Common Warrant were sold together at a combined offering price of $6.00.
The Pre-Funded Warrants were exercised in full on October 24, 2022. The Common Warrants are exercisable until the earliest of: (a) November 15, 2024, (b) immediately prior to the closing of certain fundamental transactions or (c) five business days after written notice following the earliest of: (i) submission of the Company’s NDA for veverimer with the FDA, or (ii) the date that both of the following have occurred: (x) six weeks following the issuance of a press release reporting the results of the primary analysis of the VALOR-CKD trial and (y) one of the following: (aa) the completion of a common stock financing resulting in not less than $75.0 million in gross proceeds at an offering price of not less than $13.50 per share, or (bb) the volume weighted average share price of the Company’s common stock is greater than $15.00 per share with certain multiple-day trading volume requirements.
Net proceeds from the Registered Direct Equity Financing were approximately $41.5 million, after deducting offering costs of $0.5 million. An officer of the Company participated in the Registered Direct Equity Financing and purchased 166,667 shares of common stock and 166,667 Common Warrants at the same terms as the other investors.
Common stock reserved for future issuance as of September 30, 2022 and December 31, 2021, consisted of the following.
September 30,
2022
December 31,
2021
Stock options and restricted stock units issued and outstanding13,918,236 10,889,603 
Stock options, restricted stock units and employee stock purchase plan shares authorized for future issuance7,717,286 8,308,937 
Pre-Funded Warrants authorized for future issuance2,333,333 2,333,333 
Common Warrants authorized for future issuance7,000,000 7,000,000 
Total30,968,855 28,531,873 
NOTE 7. NET LOSS PER SHARE
The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021.
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 (In thousands, except share and per share amounts)2022202120222021
Numerator:
Net loss$(25,761)$(39,675)$(83,936)$(126,590)
Denominator:
Weighted-average common shares outstanding55,682,606 50,434,879 55,521,273 50,326,474 
Weighted-average Pre-Funded Warrants outstanding2,333,333  2,333,333  
Weighted-average number of shares used in basic and diluted net loss per share58,015,939 50,434,879 57,854,606 50,326,474 
Net loss per share, basic and diluted$(0.44)$(0.79)$(1.45)$(2.52)
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive.

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The following weighted-average outstanding common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive.
September 30,
20222021
Warrants to purchase common stock (excluding Pre-Funded Warrants, which are included in weighted-average common shares outstanding)7,031,352 31,352 
Assumed conversion of Convertible Senior Notes6,019,560 6,019,560 
Stock options and restricted stock units issued and outstanding13,918,236 11,142,994 
Total potential common shares excluded from the computation of diluted net loss per share26,969,148 17,193,906 
NOTE 8. SUBSEQUENT EVENTS
On October 19, 2022, the Company entered into a loan and security agreement with Hercules, or 2022 Term Loan. The total amount of the 2022 Term Loan was up to $125.0 million of which $100.0 million was subject to the achievement of certain milestones. No amounts were drawn under the 2022 Term Loan and on November 10, 2022, the Company terminated the 2022 Term Loan.
On October 24, 2022, the Company announced that the VALOR-CKD renal outcomes clinical trial (also known as TRCA-303) did not meet its primary endpoint, which was defined as the time to the first occurrence of any event in the composite endpoint of renal death, end-stage renal disease, or ESRD, or a confirmed greater than or equal to 40% reduction in estimated glomerular filtration rate, or eGFR, also known as DD40.
On November 2, 2022, the Company announced that it had initiated a review of strategic alternatives to maximize stakeholder value and engaged professional advisors, including investment banking and financial advisors, to support this process. The Company is considering possible strategic alternatives, including a sale of the Company or its assets, a merger, reverse merger, wind-down, liquidation and dissolution or other strategic transaction. As the Company pursues its strategic plan, on November 8, 2022, it put into place a reduction in force plan which includes an approximate 57.0% reduction in workforce in November 2022. The Company estimates aggregate costs of approximately $2.0 million, recorded primarily in the fourth quarter of 2022, related to one-time termination severance payments and other employee-related costs that will be paid during the fourth quarter of 2022 and the first quarter of 2023. The estimates of costs that the Company expects to incur in connection with the reduction in force plan are subject to a number of assumptions and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the workforce reduction.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. Some of the information contained in this discussion and analysis, including information with respect to our plans and strategy for our business, include forward-looking statements that involve risks and uncertainties. Investors in our securities should review Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion of important factors that could cause our actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
We are a pharmaceutical company focused on our investigational drug candidate, veverimer (also known as TRC101), a non-absorbed, orally-administered polymer designed to treat metabolic acidosis and slow CKD progression by binding and removing acid from the gastrointestinal tract. Metabolic acidosis is a serious condition commonly caused by CKD and is believed to accelerate the progression of kidney deterioration. It can also lead to bone loss, muscle wasting and impaired physical function. Metabolic acidosis in patients with CKD is typically a chronic disease and, as such, requires long-term treatment to mitigate its deleterious consequences.
Until recently, our primary strategic and operational focus was on completion of the VALOR-CKD renal outcomes clinical trial (also known as TRCA-303), which was designed to evaluate veverimer’s ability to slow CKD progression in patients with metabolic acidosis and chronic kidney disease. On October 24, 2022, we announced that the VALOR-CKD trial did not meet its primary endpoint, which was defined as the time to the first occurrence of any event in the composite endpoint of renal death, end-stage renal disease, or ESRD, or a confirmed greater than or equal to 40% reduction in estimated glomerular filtration rate, or eGFR, also known as DD40.
On November 2, 2022, we announced that the Company had initiated a review of strategic alternatives to maximize stakeholder value and engaged professional advisors, including investment banking and financial advisors, to support this process. We are considering possible strategic alternatives, including a sale of the Company or its assets, a merger, reverse merger, wind-down, liquidation and dissolution or other strategic transaction. On November 8, 2022, we put into place a reduction in force plan which includes an approximate 57.0% reduction in workforce in November 2022. We estimate aggregate costs of approximately $2.0 million, recorded primarily in the fourth quarter of 2022, related to one-time termination severance payments and other employee-related costs that will be paid during the fourth quarter of 2022 and the first quarter of 2023. The estimates of costs that the Company expects to incur in connection with the reduction in force plan are subject to a number of assumptions and actual results may differ materially. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the workforce reduction.
We expect to devote substantial time and resources to exploring strategic alternatives in order to maximize stakeholder value, but there can be no assurance that this strategic alternative review process will result in us pursuing any transaction or that any transaction, if pursued, will be completed on attractive terms or at all. Additionally, there can be no assurances that any particular course of action, business arrangement or transaction, or series of transactions, will be pursued, successfully consummated or lead to increased stakeholder value or any value to stockholders.
Veverimer is a non-absorbed, low-swelling, spherical polymer bead that is approximately 100 micrometers in diameter. It is a single, high molecular weight, crosslinked polyamine molecule. The size of veverimer prevents systemic absorption from the GI tract. The high degree of cross-linking within veverimer limits swelling and the overall volume in the GI tract, with the goal of facilitating good GI tolerability. The high amine content of veverimer provides proton binding capacity of approximately 10 mEq/gram of polymer. The size exclusion built into the three-dimensional structure of the polymer enables preferential binding of chloride versus larger inorganic and organic anions, including phosphate, citrate, fatty acids and bile acids. This size exclusion mechanism allows a majority of the binding capacity to be used for hydrochloric acid binding.
Veverimer is an in-house discovered, new chemical entity. We have a broad intellectual property estate that we believe will provide patent protection for veverimer through 2038 in the United States, at least 2037 in Japan, at

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least 2035 in Australia, China, Europe, Hong Kong, Israel, Mexico and Russia, and at least 2034 in South Korea and certain other markets.
Veverimer drug substance manufacturing is conducted for us by Patheon Austria GmbH & Co KG, or Patheon, in their Linz, Austria facility.
We have no products approved for marketing, and we have not generated any revenue from product sales or other arrangements. From our inception in 2013 through September 30, 2022, we have primarily funded our operations through the sale of $152.4 million of convertible preferred stock, gross proceeds of $255.6 million ($237.7 million, net) from our initial public offering, or IPO, on July 2, 2018, gross proceeds of $231.8 million ($217.9 million, net) from our underwritten public offering on April 8, 2019, issuance of $200.0 million aggregate principal amount of 3.50% convertible senior notes due 2027, or the Convertible Senior Notes, ($193.3 million, net) on May 22, 2020, gross proceeds of $42.0 million ($41.5 million, net) from our Registered Direct Equity Financing on November 15, 2021 and gross borrowings of $75.0 million ($72.1 million, net) under the Loan and Security Agreement, or 2018 Term Loan, entered into with Hercules Capital Inc., or Hercules, on February 28, 2018. We have incurred losses in each year since our inception in 2013. Our net losses were $25.8 million and $39.7 million for the three months ended September 30, 2022 and 2021, respectively, and $83.9 million and $126.6 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, we had an accumulated deficit of $882.0 million. Substantially all of our operating losses resulted from expenses incurred in connection with advancing veverimer through development activities and general and administrative costs associated with pre-commercialization activities and administrative functions.
We expect to continue to incur significant expenses and increasing operating losses for the foreseeable future. Our net losses may fluctuate significantly from quarter to quarter and year to year. We expect our expenses will continue in connection with our ongoing activities as we:
explore strategic alternatives related to veverimer;
maintain, expand and protect our intellectual property portfolio; and
maintain operational, financial and management information systems to support ongoing operations, including operating as a public company.
Our failure to successfully implement a strategic alternative would have a negative impact on our financial condition. We believe that our existing cash, cash equivalents and investments are not likely to be sufficient to fund our operations through the second quarter of 2023.
Components of Our Results of Operations
As discussed above, on November 8, 2022, we put into place a reduction in force plan which includes an approximate 57.0% reduction in workforce in November 2022. We estimate aggregate costs of approximately $2.0 million, recorded primarily in the fourth quarter of 2022, related to one-time termination severance payments and other employee-related costs that will be paid during the fourth quarter of 2022 and the first quarter of 2023. Expenses related to the reduction in force will be recorded in operating expenses as part of research and development expense and general and administrative expense as appropriate.
Research and Development Expense
Research and development expense consists primarily of costs associated with the development of veverimer and includes salaries, bonuses, benefits, travel and other related costs, including stock-based compensation expense, for personnel engaged in research and development functions; expenses incurred under agreements with clinical research organizations, or CROs, investigative sites and consultants that conduct our nonclinical and clinical studies; manufacturing processes optimization and the cost of manufacturing drug substance for commercial and clinical use; payments to consultants engaged in the development of veverimer, including stock-based compensation, travel and other expenses; costs related to compliance with quality and regulatory requirements; research and development facility-related expenses, which include direct and allocated expenses, and other related costs. Research and development expense is charged to operations as incurred when these expenditures relate to our research and development efforts and have no alternative future uses. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received.

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All of our research and development expense to date has been incurred in connection with veverimer. The process of conducting clinical studies necessary to obtain regulatory approval is costly and time consuming and the continued development, if any, of veverimer is uncertain. As a result, we are unable to determine the duration and completion costs of our research and development projects or when, and to what extent, we will generate stakeholder return from strategic alternatives related to veverimer. Therefore, we are unable to estimate with any certainty the costs we will incur as we explore strategic alternatives related to veverimer. We continue to evaluate all potential strategic options for the Company, including a sale of the Company or its assets, a merger, reverse merger, wind-down, liquidation and dissolution or other strategic transaction but we may never succeed in recognizing value from our research and development efforts.
General and Administrative Expense
General and administrative expense consists primarily of salaries, bonuses, benefits, travel, stock-based compensation expense and facility-related expenses for personnel in finance and administrative functions. General and administrative expense also includes professional fees for legal, patent, consulting, accounting and audit services, pre-commercial preparation, medical affairs costs and recruiting services for the potential launch of veverimer and other related costs.
Results of Operations
The following table presents our results of operations for the three and nine months ended September 30, 2022 and 2021.
 Three Months Ended
September 30,
ChangeNine Months Ended
September 30,
Change
(in thousands)20222021$%20222021$%
Operating expenses:
Research and development$19,935 $26,635 $(6,700)(25)%$55,298 $78,591 $(23,293)(30)%
General and administrative4,125 9,052 (4,927)(54)%23,119 28,497 (5,378)(19)%
Total operating expenses24,060 35,687 (11,627)(33)%78,417 107,088 (28,671)(27)%
Loss from operations(24,060)(35,687)11,627 (33)%(78,417)(107,088)28,671 (27)%
Other income (expense), net277 271 N/M408 155 253 163 %
Interest expense(1,978)(3,994)2,016 (50)%(5,927)(13,533)7,606 (56)%
Loss on early extinguishment of 2018 Term Loan— — — N/M— (6,124)6,124 (100)%
Net loss$(25,761)$(39,675)$13,914 (35)%$(83,936)$(126,590)$42,654 (34)%
N/M = Not meaningful
Research and Development Expense
The following table presents our research and development expense for the three months ended September 30, 2022 and 2021.
 Three Months Ended
September 30,
Change
(in thousands)20222021$%
Clinical development costs$18,062 $20,060 $(1,998)(10)%
Personnel and related costs636 2,880 (2,244)(78)%
Stock-based compensation expense339 2,819 (2,480)(88)%
Other research and development costs898 876 22 %
Total research and development expense$19,935 $26,635 $(6,700)(25)%

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Research and development expense was $19.9 million and $26.6 million for the three months ended September 30, 2022 and 2021, respectively. The decrease of $6.7 million was primarily due to decreased activities in connection with our veverimer clinical development program, resulting in a decrease in clinical development costs of $2.0 million related to drug substance manufacturing costs and other clinical trial costs related to our VALOR-CKD trial following the administrative stop announced in May 2022, a decrease in personnel and related costs of $2.2 million related to lower bonus expense and a decrease in stock-based compensation expense of $2.5 million related to performance awards.
The following table presents our research and development expense for the nine months ended September 30, 2022 and 2021.
 Nine Months Ended
September 30,
Change
(in thousands)20222021$%
Clinical development costs$39,977 $58,855 $(18,878)(32)%
Personnel and related costs6,462 9,160 (2,698)(29)%
Stock-based compensation expense6,132 7,948 (1,816)(23)%
Other research and development costs2,727 2,628 99 %
Total research and development expense$55,298 $78,591 $(23,293)(30)%
Research and development expense was $55.3 million and $78.6 million for the nine months ended September 30, 2022 and 2021, respectively. The decrease of $23.3 million was primarily due to decreased activities in connection with our veverimer clinical development program, resulting in a decrease of clinical development costs of $18.9 million related to drug substance manufacturing costs and other clinical trial costs related to our VALOR-CKD trial following the administrative stop announced in May 2022, a decrease in personnel and related costs of $2.7 million related to lower bonus expense and a decrease in stock-based compensation expense of $1.8 million primarily related to performance awards and awards fully vested in 2021.
General and Administrative Expense
The following table presents our general and administrative expense for the three months ended September 30, 2022 and 2021.
 Three Months Ended
September 30,
Change
(in thousands)20222021$%
Personnel and related costs$442 $2,255 $(1,813)(80)%
Stock-based compensation expense448 3,830 (3,382)(88)%
Other general and administrative costs3,235 2,967 268 %
Total general and administrative expense$4,125 $9,052 $(4,927)(54)%
General and administrative expense was $4.1 million and $9.1 million for the three months ended September 30, 2022 and 2021, respectively. The decrease of $4.9 million was primarily due to a decrease in personnel and related costs of $1.8 million due to lower bonus expense and a decrease in stock-compensation expense of $3.4 million related to performance awards, partially offset by an increase in other general and administrative costs of $0.3 million related to pre-commercialization activities, partially offset by a reduction in legal costs.
The following table presents our general and administrative expense for the nine months ended September 30, 2022 and 2021.
 Nine Months Ended
September 30,
Change
(in thousands)20222021$%
Personnel and related costs$5,119 $7,097 $(1,978)(28)%
Stock-based compensation expense8,250 11,352 (3,102)(27)%
Other general and administrative costs9,750 10,048 (298)(3)%
Total general and administrative expense$23,119 $28,497 $(5,378)(19)%

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General and administrative expense was $23.1 million and $28.5 million for the nine months ended September 30, 2022 and 2021, respectively. The decrease of $5.4 million was primarily due to a decrease in personnel and related costs of $2.0 million due to lower bonus expense, a decrease in stock-compensation expense of $3.1 million related to performance awards and a decrease in other general and administrative costs of $0.3 million, primarily related to a reduction in legal and finance costs, partially offset by an increase in pre-commercialization costs.
Non-Operating Income (Expense)
The following table presents our non-operating income (expense) for the three months ended September 30, 2022 and 2021.
Three Months Ended
September 30,
Change
(in thousands)20222021$%
Other income (expense), net$277 $$271 N/M
Interest expense(1,978)(3,994)2,016 (50)%
N/M = Not meaningful
Other income (expense), net increased by $0.3 million for the three months ended September 30, 2022, due primarily to higher interest income from investments. Interest expense decreased $2.0 million for the three months ended September 30, 2022, due the effect of the adoption ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06, on January 1, 2022, which resulted in reduced non-cash interest expense previously associated with the equity component of the Convertible Senior Notes.
The following table presents our non-operating income (expense) for the nine months ended September 30, 2022 and 2021.
Nine Months Ended
September 30,
Change
(in thousands)20222021$%
Other income (expense), net$408 $155 $253 163 %
Interest expense(5,927)(13,533)7,606 (56)%