amti-10q_20200930.htm

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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, 2020

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: 001-39306

 

APPLIED MOLECULAR TRANSPORT INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

81-4481426

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

1 Tower Place, Suite 850

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: 650-392-0420

 

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 $0.0001 per share

 

AMTI

 

The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

As of November 5, 2020, the registrant had 34,880,411 shares of common stock, $0.0001 par value per share, outstanding.

 


Table of Contents

 

Table of Contents

 

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Condensed Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations and Comprehensive Loss

2

 

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

3

 

Condensed Statements of Cash Flows

5

 

Notes to Unaudited Condensed Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

26

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

76

Item 3.

Defaults Upon Senior Securities

76

Item 4.

Mine Safety Disclosures

76

Item 5.

Other Information

76

Item 6.

Exhibits

77

Signatures

78

 

 

 


Table of Contents

 

Forward-Looking Statements

This report contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information regarding our expectations on the timing of clinical study initiation and results and the timing and success of future development of our products, our possible or assumed future results of operations and expenses, business strategies and plans, trends, market sizing, competitive position, industry environment, potential growth opportunities, reliance on third parties, financing needs, and impact of the Affordable Care Act and other legislation, among other things. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including those described in “Risk Factors” and elsewhere in this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

Any forward-looking statement made by us in this report speaks only as of the date on which it is made. Except as required by law, we disclaim any obligation to update these forward-looking statements publicly, or to update the reasons. Actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

 

 

 

 


Table of Contents

 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Financial Statements (Unaudited)

Applied Molecular Transport Inc.

Condensed Balance Sheets

(unaudited)

 

(in thousands, except share and per share amounts)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019(*)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,314

 

 

$

12,727

 

Short-term investments

 

 

135,940

 

 

 

19,676

 

Prepaid expenses

 

 

1,816

 

 

 

532

 

Deferred offering costs

 

 

 

 

 

366

 

Other current assets

 

 

79

 

 

 

152

 

Total current assets

 

 

149,149

 

 

 

33,453

 

Property and equipment, net

 

 

8,437

 

 

 

4,091

 

Long-term investments

 

 

 

 

 

249

 

Restricted cash

 

 

108

 

 

 

108

 

Other assets

 

 

127

 

 

 

632

 

Total assets

 

$

157,821

 

 

$

38,533

 

Liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,705

 

 

$

2,666

 

Accrued expenses

 

 

4,692

 

 

 

1,315

 

Deferred rent, current

 

 

65

 

 

 

13

 

Capital lease obligations, current

 

 

229

 

 

 

42

 

Total current liabilities

 

 

7,691

 

 

 

4,036

 

Deferred rent

 

 

473

 

 

 

526

 

Capital lease obligations

 

 

463

 

 

 

58

 

Total liabilities

 

 

8,627

 

 

 

4,620

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

Series A convertible preferred stock, $0.0001 par value, 0 shares authorized, issued,

   and outstanding as of September 30, 2020 and 5,157,213 shares authorized, issued and

   outstanding, as of December 31, 2019; liquidation value of $0 as of September 30, 2020

   and $33,000 as of December 31, 2019

 

 

 

 

 

32,826

 

Series B convertible preferred stock, $0.0001 par value, 0 shares authorized, issued,

   and outstanding as of September 30, 2020 and 3,992,919 shares authorized, issued and

   outstanding as of December 31, 2019; liquidation value of $0 as of September 30, 2020

   and $31,025 as of December 31, 2019

 

 

 

 

 

30,921

 

Series C convertible preferred stock, $0.0001 par value, 0 shares authorized, issued,

   and outstanding as of September 30, 2020 and 4,816,160 shares authorized, issued and

   outstanding as of December 31, 2019; liquidation value of $0 as of September 30, 2020

   and $41,949 as of December 31, 2019

 

 

 

 

 

41,868

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value, 450,000,000 and 32,000,000 shares authorized

   as of September 30, 2020 and December 31, 2019, respectively; 34,880,411 and

   7,360,738 shares issued and outstanding as of September 30, 2020 and December 31,

   2019, respectively

 

 

3

 

 

 

1

 

Additional paid-in capital

 

 

269,437

 

 

 

1,078

 

Accumulated other comprehensive income

 

 

31

 

 

 

13

 

Accumulated deficit

 

 

(120,277

)

 

 

(72,794

)

Total stockholders’ equity (deficit)

 

 

149,194

 

 

 

(71,702

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

$

157,821

 

 

$

38,533

 

 

(*)

Derived from audited Financial Statements.

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

1


Table of Contents

 

Applied Molecular Transport Inc.

Condensed Statements of Operations and Comprehensive Loss

(unaudited)

(in thousands, except share and per share amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

13,395

 

 

$

6,890

 

 

$

39,185

 

 

$

17,756

 

General and administrative

 

 

3,428

 

 

 

1,008

 

 

 

8,404

 

 

 

2,510

 

Total operating expenses

 

 

16,823

 

 

 

7,898

 

 

 

47,589

 

 

 

20,266

 

Loss from operations

 

 

(16,823

)

 

 

(7,898

)

 

 

(47,589

)

 

 

(20,266

)

Interest income, net

 

 

59

 

 

 

36

 

 

 

187

 

 

 

107

 

Other expense, net

 

 

(29

)

 

 

(3

)

 

 

(81

)

 

 

(15

)

Net loss

 

$

(16,793

)

 

$

(7,865

)

 

$

(47,483

)

 

$

(20,174

)

Net loss per share, basic and diluted

 

$

(0.48

)

 

$

(1.07

)

 

$

(2.53

)

 

$

(2.74

)

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

 

 

34,767,308

 

 

 

7,360,738

 

 

 

18,770,153

 

 

 

7,360,738

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(16,793

)

 

$

(7,865

)

 

$

(47,483

)

 

$

(20,174

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on investments

 

 

29

 

 

 

3

 

 

 

37

 

 

 

3

 

Amounts recognized for net realized gains included in net loss

 

 

 

 

 

 

 

 

(19

)

 

 

 

Total comprehensive loss

 

$

(16,764

)

 

$

(7,862

)

 

$

(47,465

)

 

$

(20,171

)

 

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

 

2


Table of Contents

 

Applied Molecular Transport Inc.

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(unaudited)

(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Series A

 

 

Series B

 

 

Series C

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity (Deficit)

 

Balance—December 31,

   2019 (*)

 

 

5,157,213

 

 

$

32,826

 

 

 

3,992,919

 

 

$

30,921

 

 

 

4,816,160

 

 

$

41,868

 

 

 

7,360,738

 

 

$

1

 

 

$

1,078

 

 

$

13

 

 

$

(72,794

)

 

$

(71,702

)

Exercise of common stock

   options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73,594

 

 

 

 

 

 

58

 

 

 

 

 

 

 

 

 

58

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

557

 

 

 

 

 

 

 

 

 

557

 

Unrealized gains on

   investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,311

)

 

 

(15,311

)

Balance—March 31,

   2020

 

 

5,157,213

 

 

 

32,826

 

 

 

3,992,919

 

 

 

30,921

 

 

 

4,816,160

 

 

 

41,868

 

 

 

7,434,332

 

 

 

1

 

 

 

1,693

 

 

 

19

 

 

 

(88,105

)

 

 

(86,392

)

Conversion of convertible

   preferred stock into

   common stock

 

 

(5,157,213

)

 

 

(32,826

)

 

 

(3,992,919

)

 

 

(30,921

)

 

 

(4,816,160

)

 

 

(41,868

)

 

 

13,966,292

 

 

 

1

 

 

 

105,614

 

 

 

 

 

 

 

 

 

105,615

 

Issuance of common stock

   upon initial public

   offering, net of

   underwriters' commission

   and issuance costs

   of $16,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,650,000

 

 

 

1

 

 

 

160,622

 

 

 

 

 

 

 

 

 

160,623

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

659

 

 

 

 

 

 

 

 

 

659

 

Net unrealized gains on

   investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

(17

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,379

)

 

 

(15,379

)

Balance—June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,050,624

 

 

 

3

 

 

 

268,588

 

 

 

2

 

 

 

(103,484

)

 

 

165,109

 

Exercise of common stock

   options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

829,787

 

 

 

 

 

 

87

 

 

 

 

 

 

 

 

 

87

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

762

 

 

 

 

 

 

 

 

 

762

 

Unrealized gains on

   investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,793

)

 

 

(16,793

)

Balance—September 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

34,880,411

 

 

$

3

 

 

$

269,437

 

 

$

31

 

 

$

(120,277

)

 

$

149,194

 

 

(*)

Derived from audited Financial Statements.

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

3


Table of Contents

 

Applied Molecular Transport Inc.

Condensed Statements of Convertible Preferred Stock and Stockholders’ Deficit

(unaudited)

(in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Series A

 

 

Series B

 

 

Series C

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Deficit

 

Balance—December 31,

   2018 (*)

 

 

5,157,213

 

 

$

32,826

 

 

 

3,992,919

 

 

$

30,921

 

 

 

 

 

$

 

 

 

7,360,738

 

 

$

1

 

 

$

610

 

 

$

 

 

$

(44,751

)

 

$

(44,140

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

69

 

 

 

 

 

 

 

 

 

69

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,000

)

 

 

(5,000

)

Balance—March 31, 2019

 

 

5,157,213

 

 

 

32,826

 

 

 

3,992,919

 

 

 

30,921

 

 

 

 

 

 

 

 

 

7,360,738

 

 

 

1

 

 

 

679

 

 

 

 

 

 

(49,751

)

 

 

(49,071

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

132

 

 

 

 

 

 

 

 

 

132

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,309

)

 

 

(7,309

)

Balance—June 30, 2019

 

 

5,157,213

 

 

 

32,826

 

 

 

3,992,919

 

 

 

30,921

 

 

 

 

 

 

 

 

 

7,360,738

 

 

 

1

 

 

 

811

 

 

 

 

 

 

(57,060

)

 

 

(56,248

)

Issuance of Series C

   convertible preferred

   stock, net of issuance

   costs of $54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,356,484

 

 

 

29,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139

 

 

 

 

 

 

 

 

 

139

 

Unrealized gains on

   investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,865

)

 

 

(7,865

)

Balance—September 30, 2019

 

 

5,157,213

 

 

$

32,826

 

 

 

3,992,919

 

 

$

30,921

 

 

 

3,356,484

 

 

$

29,182

 

 

 

7,360,738

 

 

$

1

 

 

$

950

 

 

$

3

 

 

$

(64,925

)

 

$

(63,971

)

 

(*)

Derived from audited Financial Statements.

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

 

4


Table of Contents

 

Applied Molecular Transport Inc.

Condensed Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(47,483

)

 

$

(20,174

)

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

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

1,978

 

 

 

340

 

Depreciation

 

 

1,035

 

 

 

522

 

Loss on disposal of property and equipment

 

 

2

 

 

 

 

Net accretion of discounts on investments

 

 

(64

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses

 

 

(1,284

)

 

 

(128

)

Other current assets

 

 

(73

)

 

 

(13

)

Other assets

 

 

505

 

 

 

(13