Aclaris Therapeutics, Inc 10-Q for FY2022 Q1

Aclaris Therapeutics, Inc. (ACRS)

10-Q 2022-05-10 For: 2022-03-31

Added on April 08, 2026

About this 10-Q

Aclaris Therapeutics, Inc filed this 10-Q on May 10, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.45M; down 18.2% from $1.78M a year earlier
Net loss: $18.79M; compared with a net loss of $28.75M a year earlier
Diluted EPS: -$0.31; compared with -$0.57 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


(Mark one)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Delaware (State or Other Jurisdiction of Incorporation or Organization)	46-0571712 (I.R.S. Employer Identification No.)
640 Lee Road, Suite 200 Wayne, PA (Address of principal executive offices)	19087 (Zip Code)


Title of Each Class:	Trading Symbol(s)	Name of Each Exchange on which Registered
Common Stock, $0.00001 par value	ACRS	The Nasdaq Stock Market, LLC


Large accelerated filer ⌧		Accelerated filer ◻

Non-accelerated filer ◻		Smaller reporting company ◻

		Emerging growth company ☐


			PAGE

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements			2

Unaudited Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021			2

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021			3

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2022 and 2021			4

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021			5

Notes to Unaudited Condensed Consolidated Financial Statements			6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 3. Quantitative and Qualitative Disclosures about Market Risk			34

Item 4. Controls and Procedures			34

PART II. OTHER INFORMATION

Item 1. Legal Proceedings			35

Item 1A. Risk Factors			35

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			35

Item 6. Exhibits			35

Signatures			37


	March 31,		December 31,
	2022		2021

Assets
Current assets:
Cash and cash equivalents	$	36,342	$	27,349
Short-term marketable securities		143,280		164,065
Accounts receivable, net		633		623
Prepaid expenses and other current assets		10,626		12,995
Total current assets		190,881		205,032
Marketable securities		23,955		34,242
Property and equipment, net		1,277		1,335
Intangible assets		7,030		7,048
Other assets		3,384		3,554
Total assets	$	226,527	$	251,211
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,121	$	9,985
Accrued expenses		5,687		10,051
Current portion of lease liabilities		716		693
Discontinued operations		2,202		2,202
Total current liabilities		16,726		22,931
Other liabilities		2,035		2,172
Contingent consideration		27,200		28,400
Deferred tax liability		367		367
Total liabilities		46,328		53,870
Commitments and contingencies (Note 16)
Stockholders’ Equity:
Preferred stock, $0.00001 par value; 10,000,000 shares authorized and no shares issued or outstanding at March 31, 2022 and December 31, 2021		—		—
Common stock, $0.00001 par value; 100,000,000 shares authorized at March 31, 2022 and December 31, 2021; 61,737,483 and 61,228,446 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		1		1
Additional paid‑in capital		795,366		792,971
Accumulated other comprehensive loss		(972)		(224)
Accumulated deficit		(614,196)		(595,407)
Total stockholders’ equity		180,199		197,341
Total liabilities and stockholders’ equity	$	226,527	$	251,211


	Three Months Ended
	March 31,
	2022		2021
Revenues:
Contract research	$	1,221	$	1,535
Other revenue		232		242
Total revenue		1,453		1,777

Costs and expenses:
Cost of revenue		1,155		1,202
Research and development		14,306		7,838
General and administrative		6,099		4,827
Revaluation of contingent consideration		(1,200)		16,439
Total costs and expenses		20,360		30,306
Loss from operations		(18,907)		(28,529)

Other income (expense), net		118		(225)
Net loss	$	(18,789)	$	(28,754)

Net loss per share, basic and diluted	$	(0.31)	$	(0.57)
Weighted average common shares outstanding, basic and diluted		61,431,026		50,337,807

Other comprehensive loss:
Unrealized loss on marketable securities, net of tax of $0	$	(748)	$	(35)
Foreign currency translation adjustment		—		(11)
Total other comprehensive loss		(748)		(46)
Comprehensive loss	$	(19,537)	$	(28,800)


						Accumulated
	Common Stock			Additional		Other				Total
		Par		Paid‑in		Comprehensive		Accumulated		Stockholders’
	Shares	Value		Capital		Loss		Deficit		Equity
Balance at December 31, 2021	61,228,446	$	1	$	792,971	$	(224)	$	(595,407)	$	197,341
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	509,037		—		49		—		—		49
Unrealized loss on marketable securities	—		—		—		(748)		—		(748)
Stock-based compensation expense	—		—		2,346		—		—		2,346
Net loss	—		—		—		—		(18,789)		(18,789)
Balance at March 31, 2022	61,737,483	$	1	$	795,366	$	(972)	$	(614,196)	$	180,199


	March 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	29,590	$	—	$	—	$	29,590
Marketable securities		—		167,235		—		167,235
Total assets	$	29,590	$	167,235	$	—	$	196,825


Liabilities:
Contingent consideration	$	—	$	—	$	27,200	$	27,200
Total liabilities	$	—	$	—	$	27,200	$	27,200


	December 31, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	21,678	$	—	$	—	$	21,678
Marketable securities		—		198,307		—		198,307
Total assets	$	21,678	$	198,307	$	—	$	219,985


Liabilities:
Contingent consideration	$	—	$	—	$	28,400	$	28,400
Total liabilities	$	—	$	—	$	28,400	$	28,400


	March 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gain		Loss		Value
Marketable securities:
Corporate debt securities⁽¹⁾	$	37,550	$	—	$	(269)	$	37,281
Commercial paper		60,919		—		—		60,919
Asset-backed debt securities		20,262		—		(116)		20,146
Foreign government agency debt securities		4,075		—		(38)		4,037
U.S. government agency debt securities⁽²⁾		45,404		—		(552)		44,852
Total marketable securities	$	168,210	$	—	$	(975)	$	167,235
⁽¹⁾ Included in Corporate debt securities is $9.1 million with maturity dates between one and five years.
⁽²⁾ Included in US government agency debt securities is $14.9 million with maturity dates between one and five years.


		Gross Cost				Accumulated Amortization
	Remaining		March 31,		December 31,		March 31,		December 31,
(In thousands, except years)	Life (years)	2022		2021		2022		2021
Other intangible assets	5.3	$	751	$	751	$	350	$	332
In-process research and development	n/a		6,629		6,629		—		—
Total intangible assets		$	7,380	$	7,380	$	350	$	332


		Year Ending
(In thousands)		December 31,
2022	$	57
2023		75
2024		75
2025		75
2026		75
Thereafter		44
Total	$	401


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number	Exercise		Contractual	Intrinsic
(In thousands, except share and per share data and years)	of Shares	Price		Term	Value
				(in years)
Outstanding as of December 31, 2021	3,792,450	$	17.50	6.8	$	13,710
Granted	1,459,600		14.53
Exercised	(29,040)		1.26			476
Forfeited and cancelled	(370,709)		14.41
Outstanding as of March 31, 2022	4,852,301	$	16.94	7.0	$	18,355
Options vested and expected to vest as of March 31, 2022	4,852,301	$	16.94	7.0	$	18,355
Options exercisable as of March 31, 2022	2,600,651	$	17.92	4.9	$	11,400


		Weighted
		Average
		Grant Date		Aggregate
	Number	Fair Value		Intrinsic
(In thousands, except share and per share data)	of Shares	Per Share		Value
Outstanding as of December 31, 2021	1,496,946	$	12.75
Granted	552,900		14.56
Vested	(479,232)		10.84	$	7,128
Forfeited and cancelled	(170,563)		12.10
Outstanding as of March 31, 2022	1,400,051	$	14.20


	Three Months Ended
	March 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(18,789)	$	(28,754)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		208		288
Stock-based compensation expense		2,346		2,675
Revaluation of contingent consideration		(1,200)		16,439
Changes in operating assets and liabilities:
Accounts receivable		(10)		(45)
Prepaid expenses and other assets		188		(2,250)
Accounts payable		(1,865)		1,842
Accrued expenses		(1,847)		(2,427)
Net cash used in operating activities		(20,969)		(12,232)
Cash flows from investing activities:
Purchases of property and equipment		(164)		—
Purchases of marketable securities		(14,558)		(85,814)
Proceeds from sales and maturities of marketable securities		44,654		10,500
Net cash provided by (used in) investing activities		29,932		(75,314)
Cash flows from financing activities:
Proceeds from issuance of common stock in connection with public offerings, net of issuance costs		—		103,348
Restricted stock unit employee tax withholdings		(7)		(3,014)
Proceeds from exercise of employee stock options and the issuance of stock		37		416
Net cash provided by financing activities		30		100,750
Net increase in cash and cash equivalents		8,993		13,204
Cash and cash equivalents at beginning of period		27,349		22,063
Cash and cash equivalents at end of period	$	36,342	$	35,267

Supplemental disclosure of non-cash investing and financing activities:
Additions to property and equipment included in accounts payable	$	111	$	—


		March 31,		December 31,
(In thousands)	2022		2021
Computer equipment	$	1,373	$	1,380
Lab equipment		1,700		1,605
Furniture and fixtures		620		620
Leasehold improvements		1,123		1,123
Property and equipment, gross		4,816		4,728
Accumulated depreciation		(3,539)		(3,393)
Property and equipment, net	$	1,277	$	1,335


	Three Months Ended
	March 31,
	2022		2021
Risk-free interest rate	1.60	%	0.90	%
Expected term (in years)	6.3		6.3
Expected volatility	77.95	%	76.60	%
Expected dividend yield	0	%	0	%


	Three Months Ended
	March 31,
(In thousands, except for share and per share data)	2022		2021
Numerator:
Net loss	$	(18,789)	$	(28,754)
Denominator:
Weighted average shares of common stock outstanding, basic and diluted		61,431,026		50,337,807
Net loss per share, basic and diluted	$	(0.31)	$	(0.57)


(In thousands)			Contract		Corporate		Total
Three Months Ended March 31, 2022	Therapeutics		Research		and Other		Company
Total revenue	$	231	$	4,096	$	(2,874)	$	1,453
Cost of revenue		—		3,854		(2,699)		1,155
Research and development		14,481		—		(175)		14,306
General and administrative		—		840		5,259		6,099
Revaluation of contingent consideration		(1,200)		—		—		(1,200)
Loss from operations	$	(13,050)	$	(598)	$	(5,259)	$	(18,907)

(In thousands)			Contract		Corporate		Total
Three Months Ended March 31, 2021	Therapeutics		Research		and Other		Company
Total revenue	$	242	$	3,200	$	(1,665)	$	1,777
Cost of revenue		—		2,769		(1,567)		1,202
Research and development		7,936		—		(98)		7,838
General and administrative		—		629		4,198		4,827
Revaluation of contingent consideration		16,439		—		—		16,439
Loss from operations	$	(24,133)	$	(198)	$	(4,198)	$	(28,529)


	Three Months Ended March 31,
(In thousands)	2022		2021		Change
Revenues:
Contract research	$	1,221	$	1,535	$	(314)
Other revenue		232		242		(10)
Total revenue		1,453		1,777		(324)

Costs and expenses:
Cost of revenue		1,155		1,202		(47)
Research and development		14,306		7,838		6,468
General and administrative		6,099		4,827		1,272
Revaluation of contingent consideration		(1,200)		16,439		(17,639)
Total costs and expenses		20,360		30,306		(9,946)
Loss from operations		(18,907)		(28,529)		9,622

Other income (expense), net		118		(225)		343
Net loss	$	(18,789)	$	(28,754)	$	9,965


Exhibit No.		Document

3.1		Amended and Restated Certificate of Incorporation of the Registrant (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-37581), filed with the SEC on October 13, 2015).

3.2		Amended and Restated Bylaws of the Registrant (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-37581), filed with the SEC on June 24, 2020).

10.1+		Amended and Restated Employment Agreement, dated as of January 12, 2022, by and between the Registrant and Neal Walker (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 001-37581), filed with the SEC on January 14, 2022).

10.2+		Amended and Restated Employment Agreement, dated as of January 12, 2022, by and between the Registrant and Frank Ruffo (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 001-37581), filed with the SEC on January 14, 2022).

10.3+		Employment Agreement, dated as of January 12, 2022, by and between the Registrant and Joseph Monahan (incorporated herein by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K (File No. 001-37581), filed with the SEC on February 24, 2022).

10.4+		Employment Agreement, dated as of January 31, 2022, by and between the Registrant and James Loerop (incorporated herein by reference to Exhibit 10.16 to the Registrant’s Annual Report on Form 10-K (File No. 001-37581), filed with the SEC on February 24, 2022).

10.5+		Severance Agreement and General Release, dated as of January 7, 2022, by and between the Registrant and David Gordon (incorporated herein by reference to Exhibit 10.18 to the Registrant’s Annual Report on Form 10-K (File No. 001-37581), filed with the SEC on February 24, 2022).

10.6+		Seventh Amended and Restated Non-Employee Director Compensation Policy (incorporated herein by reference to Exhibit 10.23 to the Registrant’s Annual Report on Form 10-K (File No. 001-37581), filed with the SEC on February 24, 2022).

31.1*		Certification of Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act.

31.2*		Certification of Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act.

32.1**		Certifications of Principal Executive Officer and Principal Financial Officer under Section 906 of the Sarbanes-Oxley Act.

101.INS		XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


*	Filed herewith.
**	These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Exchange Act and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
+	Indicates management contract or compensatory plan.


	ACLARIS THERAPEUTICS, INC.

Date: May 10, 2022	By:	/s/ Neal Walker
		Neal Walker
		President and Chief Executive Officer
		(On behalf of the Registrant)


Date: May 10, 2022	By:	/s/ Frank Ruffo
		Frank Ruffo
		Chief Financial Officer
		(Principal Financial Officer)