Verve Therapeutics, Inc. [VERV] Filings

10-Q 1 verv-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended September 30, 2024


☐	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: 001-40489

VERVE THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	82-4800132
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

201 Brookline Avenue, Suite 601 Boston, Massachusetts	02215
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 603-0070

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, par value $0.001 per share

    VERV

    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 October 29, 2024, the registrant had 84,663,840 shares of common stock, par value $0.001 per share, outstanding.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or the negative of these words or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:

•

the timing, progress, design and conduct of our Heart-2 clinical trial, a Phase 1b clinical trial of VERVE-102, and our Pulse-1 clinical trial, a Phase 1b clinical trial of VERVE-201, including statements regarding the timing of enrollment and the period during which data from such clinical trials is expected to become available, and our Heart-1 clinical trial, a Phase 1b clinical trial of VERVE-101, including statements regarding next steps for such trial;

•

our estimates regarding expenses, future revenue, capital requirements, need for additional financing and the period over which we believe our existing cash, cash equivalents and marketable securities will be sufficient to fund our operating expenses and capital expenditure requirements;

•

the timing of and our ability to submit applications for and obtain and maintain regulatory approvals for our current and future product candidates;

•

the potential therapeutic attributes and advantages of our current and future product candidates;

•

our expectations about the translatability of results from studies in animals into clinical trials in humans;

•

our plans to develop and, if approved, subsequently commercialize any product candidates we may develop;

•

the rate and degree of market acceptance and clinical utility of our products, if approved;

•

our estimates regarding the addressable patient population and potential market opportunity for our current and future product candidates;

•

our commercialization, marketing and manufacturing capabilities and strategy;

•

our expectations regarding our ability to obtain and maintain intellectual property protection;

•

our ability to identify additional products, product candidates or technologies with significant commercial potential that are consistent with our commercial objectives;

•

the impact of government laws and regulations;

•

our competitive position and expectations regarding developments and projections relating to our competitors and any competing therapies that are or become available;

•

developments relating to our competitors and our industry;

•

our ability to establish and maintain collaborations, including our collaborations with Eli Lilly and Company and Vertex Pharmaceuticals Incorporated; and

•

the potential impact of public health epidemics or pandemics and of global economic developments, including fluctuations in inflation and interest rates, on our business, operations, strategy and goals.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in the “Risk Factors” section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures or investments we may make or enter into.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to our other filings with the Securities and Exchange Commission completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Except where the context otherwise requires or where otherwise indicated, the terms “we,” “us,” “our,” “our company,” “the company,” and “our business” in this Quarterly Report on Form 10-Q refer to Verve Therapeutics, Inc. and its consolidated subsidiary.

RISK FACTOR SUMMARY

Our business is subject to a number of risks of which you should be aware before making an investment decision. Below we summarize what we believe to be the principal risks facing our business, in addition to the risks described more fully in Item 1A, “Risk Factors” of Part II of this Quarterly Report on Form 10-Q and other information included in this report. The risks and uncertainties described below are not the only risks and uncertainties we face. Additional risks and uncertainties not presently known to us or that we presently deem less significant may also impair our business operations.

If any of the following risks occurs, our business, financial condition and results of operations and future growth prospects could be materially and adversely affected, and the actual outcomes of matters as to which forward-looking statements are made in this report could be materially different from those anticipated in such forward-looking statements:

•

We will need substantial additional funding. If we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our product development programs or commercialization efforts;

•

Our limited operating history may make it difficult for you to evaluate the success of our business to date and to assess our future viability;

•

We are early in our development efforts and have not yet completed a clinical trial. As a result, we expect it will be many years before we commercialize any product candidate, if ever. If we are unable to advance our current or future product candidates into and through clinical trials, obtain marketing approval and ultimately commercialize our product candidates or experience significant delays in doing so, our business will be materially harmed;

•

In vivo gene editing, including base editing, is a novel technology in a rapidly evolving field that is not yet clinically validated as being safe and efficacious for human therapeutic use. The approaches we are taking to discover and develop novel therapeutics are unproven and may never lead to marketable products. We are focusing our research and development efforts for our lead product candidates on gene editing using base editing technology, but other gene editing technologies may be discovered that provide significant advantages over base editing and we may not be able to access or use those technologies, which could materially harm our business;

•

We are also seeking to discover and develop new gene editing technologies and may not be successful in doing so;

•

The outcome of preclinical studies and earlier-stage clinical trials may not be predictive of future results or the success of later preclinical studies and clinical trials and interim, preliminary or top-line data from our clinical trials may materially change as participant enrollment continues, more participant data become available and audit and verification procedures are conducted. As a result, interim, preliminary or top-line data from a clinical trial should be viewed with caution until the final data are available;

•

If we experience delays or difficulties in the enrollment of patients in our clinical trials, our clinical trials could experience significant delays and our receipt of necessary regulatory approvals could be delayed or prevented;

•

If any of the product candidates we develop, or the delivery modes we rely on to administer them, including lipid nanoparticles, cause serious adverse events, undesirable side effects or unexpected characteristics, such adverse events, side effects or characteristics could require us to abandon or limit development of the product candidates, delay or prevent regulatory approval of the product candidates, limit the commercial potential of our product candidates or result in significant negative consequences following any potential marketing approval;

•

Adverse public perception of genetic medicines, and gene editing and base editing in particular, may negatively impact demand for our potential products and increased regulatory scrutiny of genetic medicines may adversely affect our ability to obtain regulatory approvals for our product candidates;

•

Genetic medicines are complex and difficult to manufacture. We could experience delays in satisfying regulatory authorities or production problems that result in delays in our development programs, limit the supply of our product candidates we may develop, or otherwise harm our business;

•

We may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success;

•

We rely, and expect to continue to rely, on third parties to conduct some or all aspects of our product manufacturing, research and preclinical and clinical testing, and these third parties may not perform satisfactorily;

•

We have entered into collaborations, and may enter into additional collaborations, with third parties for the research, development, manufacture and commercialization of programs or product candidates. Collaboration agreements may not lead to development or commercialization of product candidates in the most efficient manner, or at all. If these collaborations are not successful, our business could be adversely affected;

•

If we or our licensors are unable to obtain, maintain, defend and enforce patent rights that cover our gene editing technology and product candidates or if the scope of the patent protection obtained is not sufficiently broad, our

competitors could develop and commercialize technology and products similar or identical to ours, and our ability to successfully develop and commercialize our technology and product candidates may be adversely affected;

•

If we fail to comply with our obligations in our intellectual property licensing arrangements with third parties, or otherwise experience disruptions to our business relationships with our licensors, we could lose intellectual property rights that are important to our business;

•

The intellectual property landscape around genome editing technology, including base editing and delivery, is highly dynamic, and third parties may initiate legal proceedings alleging that we are infringing, misappropriating, or otherwise violating their intellectual property rights, the outcome of which would be uncertain and may prevent, delay or otherwise interfere with our product discovery, development and commercialization efforts; and

•

We face substantial competition, which may result in others discovering, developing or commercializing products before us or more successfully than we do. The market with respect to new products for the treatment of cardiovascular disease, for which the standard of care is well established, is particularly competitive.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss	2
	Condensed Consolidated Statements of Stockholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	91
Item 5.	Other Information	91
Item 6.	Exhibits	92
Signatures		93

Part I ─ Financial Information

Item 1. Financial Statements

Verve Therapeutics, Inc.

Condensed consolidated balance sheets


(in thousands, except share and per share amounts) (unaudited)	September 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	158,709		$	206,180
Marketable securities		381,211			417,770
Collaboration receivable		2,628			5,897
Prepaid expenses and other current assets		13,911			8,102
Total current assets		556,459			637,949
Property and equipment, net		19,625			22,505
Restricted cash		4,774			4,774
Operating lease right-of-use assets		79,921			85,295
Other long term assets		3,127			2,165
Total assets	$	663,906		$	752,688
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	4,637		$	6,636
Accrued expenses		21,918			20,178
Deferred revenue, current		5,719			—
Lease liability, current		10,368			10,192
Total current liabilities		42,642			37,006
Long term lease liability		60,887			64,715
Success payment liability		977			2,720
Deferred revenue, non-current		50,731			48,556
Other long term liabilities		118			189
Total liabilities		155,355			153,186
Commitments and contingencies (See Note 7, Note 8 and Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.001 par value; 200,000,000 shares authorized, 84,638,814 and 81,969,693 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		85			82
Additional paid-in capital		1,200,302			1,143,453
Accumulated other comprehensive income		1,143			272
Accumulated deficit		(692,979	)		(544,305	)
Total stockholders’ equity		508,551			599,502
Total liabilities and stockholders’ equity	$	663,906		$	752,688

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

Verve Therapeutics, Inc.

Condensed consolidated statements of operations and comprehensive loss


	Three months ended September 30,						Nine months ended September 30,
(in thousands, except share and per share amounts) (unaudited)	2024			2023			2024			2023
Collaboration revenue	$	6,865		$	3,117		$	19,252		$	6,614
Operating expenses:
Research and development		49,938			43,765			149,299			138,135
General and administrative		13,837			11,686			42,546			37,655
Total operating expenses		63,775			55,451			191,845			175,790
Loss from operations		(56,910	)		(52,334	)		(172,593	)		(169,176	)
Other income (expense):
Change in fair value of success payment liability		(6	)		802			1,743			878
Interest and other income, net		6,887			5,841			22,452			16,825
Total other income, net		6,881			6,643			24,195			17,703
Loss before provision for income taxes		(50,029	)		(45,691	)		(148,398	)		(151,473	)
Provision for income taxes		(104	)		(67	)		(276	)		(243	)
Net loss	$	(50,133	)	$	(45,758	)	$	(148,674	)	$	(151,716	)
Net loss per common share, basic and diluted	$	(0.59	)	$	(0.72	)	$	(1.77	)	$	(2.43	)
Weighted-average common shares used in net loss per share, basic and diluted		84,632,952			63,211,849			83,999,797			62,322,965
Comprehensive loss:
Net loss	$	(50,133	)	$	(45,758	)	$	(148,674	)	$	(151,716	)
Other comprehensive loss:
Unrealized gain on marketable securities		1,758			157			871			97
Comprehensive loss	$	(48,375	)	$	(45,601	)	$	(147,803	)	$	(151,619	)

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

Verve Therapeutics, Inc.

Condensed consolidated statements of stockholders’ equity


	Common stock
(in thousands, except share amounts) (unaudited)	Shares		Amount		Additional paid-in capital		Accumulated other comprehensive loss			Accumulated deficit			Total stockholders’ equity
Balance at December 31, 2022		61,730,816	$	62	$	895,801	$	(694	)	$	(344,237	)	$	550,932
Exercise of stock options		29,010		-		116		-			-			116
Issuance of common stock from At-the-Market offering, net of issuance costs of $126		103,184		-		1,922		-			-			1,922
Unrealized gain on marketable securities		-		-		-		457			-			457
Stock-based compensation		-		-		8,024		-			-			8,024
Net loss		-		-		-		-			(51,975	)		(51,975	)
Balance at March 31, 2023		61,863,010		62		905,863		(237	)		(396,212	)		509,476
Exercise of stock options		98,598		-		548		-			-			548
Vesting of restricted stock units		50,537		-		-		-			-			-
Issuance of common stock under employee stock purchase plan		52,134		-		685		-			-			685
Unrealized loss on marketable securities		-		-		-		(517	)		-			(517	)
Stock-based compensation		-		-		9,013		-			-			9,013
Net loss		-		-		-		-			(53,983	)		(53,983	)
Balance at June 30, 2023		62,064,279		62		916,109		(754	)		(450,195	)		465,222
Exercise of stock options		43,429		-		213		-			-			213
Vesting of restricted stock units		76,586		-		-		-			-			-
Issuance of common stock in connection with the Lilly Agreement		1,552,795		2		31,708		-			-			31,710
Unrealized gain on marketable securities		-		-		-		157			-			157
Stock-based compensation		-		-		8,825		-			-			8,825
Net loss		-		-		-		-			(45,758	)		(45,758	)
Balance at September 30, 2023		63,737,089	$	64	$	956,855	$	(597	)	$	(495,953	)	$	460,369

Balance at December 31, 2023		81,969,693	$	82	$	1,143,453	$	272		$	(544,305	)	$	599,502
Exercise of stock options		76,044		-		301		-			-			301
Vesting of restricted stock units		7,290		-		-		-			-			-
Issuance of common stock from At-the-Market offering, net of issuance costs of $747		1,766,835		2		22,431		-			-			22,433
Unrealized loss on marketable securities		-		-		-		(772	)		-			(772	)
Stock-based compensation		-		-		10,341		-			-			10,341
Net loss		-		-		-		-			(48,736	)		(48,736	)
Balance at March 31, 2024		83,819,862		84		1,176,526		(500	)		(593,041	)		583,069
Exercise of stock options		520,995		1		825		-			-			826
Vesting of restricted stock units		104,426		-		-		-			-			-
Issuance of common stock under employee stock purchase plan		106,986		-		472		-			-			472
Unrealized loss on marketable securities		-		-		-		(115	)		-			(115	)
Stock-based compensation		-		-		11,647		-			-			11,647
Net loss		-		-		-		-			(49,805	)		(49,805	)
Balance at June 30, 2024		84,552,269		85		1,189,470		(615	)		(642,846	)		546,094
Exercise of stock options		5,075		-		14		-			-			14
Vesting of restricted stock units		81,470		-		-		-			-			-
Unrealized gain on marketable securities		-		-		-		1,758			-			1,758
Stock-based compensation		-		-		10,818		-			-			10,818
Net loss		-		-		-		-			(50,133	)		(50,133	)
Balance at September 30, 2024		84,638,814	$	85	$	1,200,302	$	1,143		$	(692,979	)	$	508,551

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

Verve Therapeutics, Inc.

Condensed consolidated statements of cash flows


	Nine months ended September 30,
(unaudited, in thousands)	2024			2023
Cash flows from operating activities:
Net loss	$	(148,674	)	$	(151,716	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		5,053			3,938
Non-cash lease expense		5,374			5,046
Net accretion of discount on marketable securities		(10,250	)		(11,044	)
Stock-based compensation		32,806			25,862
Change in fair value of success payments liabilities		(1,743	)		(878	)
Changes in operating assets and liabilities:
Collaboration receivable		3,264			(3,117	)
Prepaid expenses and other assets		(6,765	)		(2,587	)
Accounts payable		(2,321	)		(589	)
Accrued expenses and other liabilities		2,167			2,996
Operating lease liabilities		(3,653	)		(5,320	)
Deferred revenue		7,895			28,540
Net cash used in operating activities		(116,847	)		(108,869	)
Cash flows from investing activities:
Purchases of property and equipment		(2,349	)		(7,098	)
Purchases of marketable securities		(350,928	)		(394,817	)
Maturities of marketable securities		398,607			438,498
Net cash provided by investing activities		45,330			36,583
Cash flows from financing activities:
Proceeds from the issuance of common stock in connection with collaboration agreements		—			31,710
Proceeds from exercise of stock options		1,141			877
Proceeds from issuance of common stock, net of issuance costs		22,433			1,922
Issuance of common stock under employee stock purchase plan		472			685
Net cash provided by financing activities		24,046			35,194
Decrease in cash, cash equivalents and restricted cash		(47,471	)		(37,092	)
Cash, cash equivalents and restricted cash—beginning of period		210,954			120,236
Cash, cash equivalents and restricted cash—end of period	$	163,483		$	83,144
Supplemental disclosure of noncash investing and financing activities:
Property and equipment additions included in accounts payable and accrued expenses	$	757		$	495

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

Verve Therapeutics, Inc.

Notes to condensed consolidated financial statements (unaudited)

1. Nature of the business and basis of presentation

Organization

Verve Therapeutics, Inc. (the “Company” or “Verve”) is a clinical-stage company developing a new class of genetic medicines for cardiovascular disease with the potential to transform treatment from chronic management to single-course gene editing medicines. The Company was incorporated on March 9, 2018 as Endcadia, Inc., a Delaware corporation, and began operations shortly thereafter. In January 2019, the Company amended its certificate of incorporation to change its name to Verve Therapeutics, Inc. The Company’s principal offices are located in Boston, Massachusetts.

Liquidity and capital resources

Since its inception, the Company has devoted its efforts principally to research and development and raising capital. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry including, but not limited to, technical risks associated with the successful research, development and manufacturing of product candidates, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Current and future programs will require significant research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company expects that its cash, cash equivalents and marketable securities of $539.9 million as of September 30, 2024 will be sufficient to fund its operations and capital expenditure requirements beyond the next 12 months from the date of issuance of these financial statements. The Company will need additional financing to support its continuing operations and pursue its growth strategy. Until such time as the Company can generate significant revenue from product sales, if ever, it expects to finance its operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. The Company may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all. The inability to raise capital as and when needed could have a negative impact on the Company’s financial condition and its ability to pursue its business strategy. The Company will need to generate significant revenue to achieve profitability, and it may never do so.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments that are necessary to present fairly the Company’s financial position as of September 30, 2024, the results of its operations and other comprehensive loss for the three and nine months ended September 30, 2024 and 2023, stockholders’ equity for the three and nine months ended September 30, 2024 and 2023 and cash flows for the nine months ended September 30, 2024 and 2023. Such adjustments are of a normal and recurring nature. The results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results for the year ending December 31, 2024, or for any future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended

December 31, 2023, and the notes thereto, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2024.

2. Summary of significant accounting policies

The Company's significant accounting policies are disclosed in Note 2, "Summary of significant accounting policies," in the audited consolidated financial statements for the year ended December 31, 2023, and notes thereto, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2024. Since the date of those financial statements, there have been no changes to the Company's significant accounting policies.

Cash, cash equivalents and restricted cash

Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. A reconciliation of the cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows is as follows:


	September 30,		September 30,
(in thousands)	2024		2023
Cash and cash equivalents	$	158,709	$	78,370
Restricted cash		4,774		4,774
Total cash, cash equivalents and restricted cash	$	163,483	$	83,144

3. Marketable securities

Marketable securities by security type consisted of the following:


	September 30, 2024
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. treasury bills and notes	$	179,012	$	673	$	(1	)	$	179,684
U.S. agency securities		201,056		486		(15	)		201,527
Total	$	380,068	$	1,159	$	(16	)	$	381,211


	December 31, 2023
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
U.S. treasury bills and notes	$	147,978	$	144	$	(15	)	$	148,107
U.S. agency securities		269,520		277		(134	)		269,663
Total	$	417,498	$	421	$	(149	)	$	417,770

The remaining contractual maturities of all marketable securities were less than 18 months as of September 30, 2024 and 24 months as of December 31, 2023. The gross unrealized losses on the Company’s marketable securities were de minimis as of September 30, 2024. The gross unrealized losses on the Company's marketable securities of $0.1 million as of December 31, 2023 was caused by interest rate increases which resulted in the decrease in market value of these securities. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company did not consider such marketable securities to be impaired at September 30, 2024 or December 31, 2023. None of the Company’s marketable securities have been in a continuous unrealized loss position for 12 months or greater as of September 30, 2024 or December 31, 2023.

4. Property and equipment, net

Property and equipment, net, consisted of the following:


(in thousands)	September 30, 2024			December 31, 2023
Lab equipment	$	30,937		$	28,851
Leasehold improvements		776			726
Furniture and fixtures		2,323			2,323
Computer equipment		997			997
Total property and equipment		35,033			32,897
Less accumulated depreciation		(15,408	)		(10,392	)
Property and equipment, net	$	19,625		$	22,505

The following table summarizes depreciation expense incurred:


	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2024		2023		2024		2023
Depreciation expense	$	1,754	$	1,474	$	5,053	$	3,938

5. fair value of financial instruments

The Company’s financial instruments that are measured at fair value on a recurring basis consist of money market funds, marketable securities, and a derivative liability (success payment liability) pursuant to the Company's license agreement with the President and Fellows of Harvard College ("Harvard") and The Broad Institute, Inc. (“Broad”), which license agreement is referred to herein as the Harvard/Broad License Agreement.

The following tables set forth the fair value of the Company’s financial instruments by level within the fair value hierarchy:


	As of September 30, 2024
(in thousands)	Fair value		Level 1		Level 2		Level 3
Assets
Money market funds	$	72,489	$	72,489	$	—	$	—
Marketable securities:
U.S. treasury bills and notes		179,684		—		179,684		—
U.S. agency securities		201,527		—		201,527		—
Total assets	$	453,700	$	72,489	$	381,211	$	—
Liabilities
Success payment liability	$	977	$	—	$	—	$	977
Total liabilities	$	977	$	—	$	—	$	977

         
        As of December 31, 2023

        (in thousands)

        Fair
value

Verve Therapeutics, Inc. [VERV] Filings
10-Q	[2024-11-05]
10-Q	[2024-08-08]
10-Q	[2024-05-08]
10-K	[2024-02-27]
10-Q	[2023-11-07]
10-Q	[2023-08-10]
10-Q	[2023-05-15]
10-K	[2023-03-02]
10-Q	[2022-11-07]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-14]
10-Q	[2021-11-10]
10-Q	[2021-08-12]
S-1	[2021-05-28]