Bicycle Therapeutics PLC 10-Q for FY2020 Q1

Bicycle Therapeutics PLC (BCYC)

10-Q 2020-05-07 For: 2020-03-31

Added on April 06, 2026

About this 10-Q

Bicycle Therapeutics PLC filed this 10-Q on May 7, 2020, covering the quarter ended March 31, 2020 (FY2020 Q1).

Headline figures

Quarter ended March 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.13M; down 82.3% from $6.38M a year earlier
Net loss: $11.32M; compared with a net loss of $6.5M a year earlier

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England and Wales		Not Applicable
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

B900, Babraham Research Campus Cambridge, United Kingdom		CB22 3AT
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary shares, nominal value £0.01 per share *	n/a	The Nasdaq Stock Market LLC
American Depositary Shares, each representing one ordinary share, nominal value £0.01 per share	BCYC	The Nasdaq Stock Market LLC


Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☒


		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 Convertible Preferred Shares and Shareholders’ Equity (Deficit)	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	46

Item 4.	Controls and Procedures	47

PART II - OTHER INFORMATION		48

Item 1.	Legal Proceedings	48

Item 1A	Risk Factors	49

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105

Item 3.	Defaults Upon Senior Securities	105

Item 4.	Mine Safety Disclosures	105

Item 5.	Other Information	105

Item 6.	Exhibits	105

SIGNATURES		107


	March 31,		December 31,
	2020		2019
Assets
Current assets:
Cash	$	109,637	$	92,117
Accounts receivable		1,002		201
Prepaid expenses and other current assets		4,248		4,884
Research and development incentives receivable		8,503		6,944
Total current assets		123,390		104,146
Property and equipment, net		2,203		2,292
Operating lease right‑of‑use assets		1,815		2,056
Other assets		1,874		1,700
Total assets	$	129,282	$	110,194
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	4,434	$	1,949
Accrued expenses and other current liabilities		5,716		6,144
Deferred revenue, current portion		6,047		728
Total current liabilities		16,197		8,821
Operating lease liabilities		1,056		1,251
Deferred revenue, net of current portion		28,206		4,929
Other long‑term liabilities		2,010		1,995
Total liabilities		47,469		16,996
Commitments and contingencies (Note 12)
Shareholders’ equity:
Ordinary shares, £0.01 nominal value; 31,995,653 shares authorized at March 31, 2020 and December 31, 2019; 18,016,207 and 17,993,701 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively		227		227
Additional paid‑in capital		197,179		195,056
Accumulated other comprehensive loss		(3,719)		(1,535)
Accumulated deficit		(111,874)		(100,550)
Total shareholders’ equity		81,813		93,198
Total liabilities and shareholders’ equity	$	129,282	$	110,194


	Three Months Ended
	March 31,
	2020		2019
Collaboration revenues	$	1,129	$	6,384
Operating expenses:
Research and development		7,774		6,276
General and administrative		4,998		3,402
Total operating expenses		12,772		9,678
Loss from operations		(11,643)		(3,294)
Other income (expense):
Interest and other income		212		64
Other expense, net		—		(3,193)
Total other income (expense), net		212		(3,129)
Net loss before income tax provision		(11,431)		(6,423)
(Benefit from) provision for income taxes		(107)		80
Net loss	$	(11,324)	$	(6,503)
Net loss attributable to ordinary shareholders	$	(11,324)	$	(6,503)
Net loss per share attributable to ordinary shareholders, basic and diluted	$	(0.63)	$	(7.80)
Weighted average ordinary shares outstanding, basic and diluted		17,997,929		834,043

Comprehensives Loss:
Net loss	$	(11,324)	$	(6,503)
Other comprehensive income (loss):
Foreign currency translation adjustment		(2,184)		1,080
Total comprehensive loss	$	(13,508)	$	(5,423)


															Accumulated
	Series A			Series B1			Series B2								Other				Total
	Convertible			Convertible			Convertible						Additional		Comprehensive				Shareholders’
	Preferred Shares			Preferred Shares			Preferred Shares			Ordinary Shares			Paid‑in		Income		Accumulated		Equity
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Capital		(Loss)		Deficit		(Deficit)
Balance at December 31, 2019	—	$	—	—	$	—	—	$	—	17,993,701	$	227	$	195,056	$	(1,535)	$	(100,550)	$	93,198
Issuance of ordinary shares upon exercise of share options	—		—	—		—	—		—	1,071		—		2		—		—		2
Issuance of ordinary shares upon exercise of warrants	—		—	—		—	—		—	21,435		—		—		—		—		—
Share-based compensation expense	—		—	—		—	—		—	—		—		2,121		—		—		2,121
Foreign currency translation adjustment	—		—	—		—	—		—	—		—		—		(2,184)		—		(2,184)
Net loss	—		—	—		—	—		—	—		—		—		—		(11,324)		(11,324)
Balance at March 31, 2020	—	$	—	—	$	—	—	$	—	18,016,207	$	227	$	197,179	$	(3,719)	$	(111,874)	$	81,813


	Three Months Ended
	Ended
	March 31,
	2020		2019
Cash flows from operating activities:
Net loss	$	(11,324)	$	(6,503)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense		2,121		276
Depreciation and amortization		305		213
Change in fair value of warrant liability		—		3,197
Changes in operating assets and liabilities:
Accounts receivable		(846)		4,860
Research and development incentives receivable		(2,097)		(1,650)
Prepaid expenses and other current assets		347		(215)
Operating lease right‑of‑use assets		187		176
Other assets		(215)		125
Accounts payable		2,702		415
Accrued expenses and other current liabilities		(464)		(783)
Lease liabilities		191		(176)
Deferred revenue		30,103		(5,327)
Other long-term liabilities		152		191
Net cash provided by (used in) operating activities		21,162		(5,201)
Cash used in investing activities:
Purchases of property and equipment		(320)		(418)
Net cash used in investing activities		(320)		(418)
Cash flows from financing activities:
Proceeds from issuance of series B2 convertible preferred shares, net of issuance costs		—		1,334
Payments of initial public offering costs		—		(1,300)
Proceeds from the exercise of share options and sale of ordinary shares		2		—
Net cash provided by financing activities		2		34
Effect of exchange rate changes on cash		(3,324)		1,569
Net increase (decrease) in cash		17,520		(4,016)
Cash at beginning of period		92,117		63,380
Cash at end of period	$	109,637	$	59,364
Supplemental disclosure of cash flow information
Cash paid for income taxes		11		—
Cash paid for amounts included in the measurement of operating lease liabilities		—		224
Purchases of property and equipment included in accounts payable and accrued expenses		71		—
Deferred initial public offering costs accrued but not paid		—		431


				Weighted
		Weighted		Average	Aggregate
	Number of	Average		Contractual	Intrinsic
	Shares	Exercise Price		Term	Value
				(in years)	(in thousands)
Outstanding as of December 31, 2019	2,634,346	$	9.57	9.04	$	2,868
Granted	1,030,361		10.17	—		—
Exercised	(1,071)		1.47	—		—
Forfeited	(8,748)		8.67	—		—
Outstanding as of March 31, 2020	3,654,888	$	9.74	9.17	$	14,973
Vested and expected to vest as of March 31, 2020	3,654,888	$	9.74	9.17	$	14,973
Options exercisable as of March 31, 2020	984,491	$	7.71	8.79	$	5,993


	Three
	Months
	Ended
	March 31,
	2020		2019
Risk-free interest rate	1.6	%	2.7	%
Expected volatility	73.7	%	79.6	%
Expected dividend yield	—		—
Expected term (in years)	5.95		6.07


	Three Months
	Ended
	March 31,
	2020		2019
Collaboration revenues
AstraZeneca	$	412	$	425
Sanofi		—		5,959
Dementia Discovery Fund		56		—
Genentech		661		—
Total collaboration revenues	$	1,129	$	6,384


	Allocation of
Performance Obligations	Transaction Price
Target Three Research License and Related Services	$	650
Target 3 Material Right		1,504
Target 4 Material Right		1,204
Target 5 Material Right		1,165
Target 6 Material Right		1,127
	$	5,650


	Balance at						Impact of		Balance at
	Beginning of						Exchange		End of
	Period		Additions		Deductions		Rates		Period
Period ended March 31, 2020
Contract assets	$	—	$	—	$	—	$	—	$	—
Contract liabilities:
Deferred revenue
AstraZeneca collaboration deferred revenue		4,913		—		(412)		157		4,658
DDF collaboration deferred revenue		744		—		(56)		(48)		640
Genentech collaboration deferred revenue		—		31,000		(661)		(1,384)		28,955
Total deferred revenue	$	5,657	$	31,000	$	(1,129)	$	(1,275)	$	34,253


	March 31,
	2020
Operating lease cost	$	223
Variable lease cost		139
Total lease cost	$	362
Weighted‑average remaining operating lease term (years)		2.4
Weighted‑average discount rate		8.56	%


Year Ending December 31,
2020	$	743
2021		751
2022		443
2023		—
2024		—
Present value adjustment		(245)
Total lease liabilities	$	1,692
Less: current lease liabilities		(636)
Long term lease liabilities	$	1,056


	March 31,		December 31,
	2020		2019
Laboratory equipment	$	4,256	$	4,326
Leasehold improvements		363		300
Computer equipment and software		222		229
Furniture and office equipment		184		120
		5,025		4,975
Less: Accumulated depreciation and amortization		(2,822)		(2,683)
	$	2,203	$	2,292


	Three Months Ended March 31,
	2020		2019		Change
	(in thousands)
Collaboration revenues	$	1,129	$	6,384	$	(5,255)
Operating expenses:
Research and development		7,774		6,276		1,498
General and administrative		4,998		3,402		1,596
Total operating expenses		12,772		9,678		3,094
Loss from operations		(11,643)		(3,294)		(8,349)
Other income (expense):
Interest and other income		212		64		148
Other expense		—		(3,193)		3,193
Total other income (expense), net		212		(3,129)		3,341
Net loss before income tax provision		(11,431)		(6,423)		(5,008)
(Benefit from) provision for income taxes		(107)		80		(187)
Net loss	$	(11,324)	$	(6,503)	$	(4,821)


Exhibit Number		Description

3.1		Articles of Association (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-231076), filed with the Securities and Exchange Commission on May 13, 2019).

10.1*		Form of letter agreement to amend Service Agreement by and between the BicycleTx Ltd. and its executive officers in the United Kingdom, effective January 1, 2020.

10.2††		Discovery Collaboration and License Agreement between BicycleTx Limited and Genentech, Inc., dated February 21, 2020 (incorporated by reference to Exhibit 10.18 to Annual Report on Form 10-K (File No. 001-38916), filed with the Securities and Exchange Commission on March 10, 2020).


Exhibit Number		Description
31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a‑14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a‑14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*#		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Extension Schema Document

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB		XBRL Taxonomy Extension Label Linkbase Document

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document


	BICYCLE THERAPEUTICS PLC

Date: May 7, 2020	By:	/s/ Kevin Lee
		Kevin Lee, Ph.D., MBA
		Chief Executive Officer

		(Principal Executive Officer)

Date: May 7, 2020	By:	/s/ Lee Kalowski
		Lee Kalowski, MBA
		Chief Financial Officer and President

		(Principal Financial and Accounting Officer)

d
	(Director)

on: day of ____2020

in the presence of:




Witness Name:

Witness Address:







Executed and delivered as a Deed by [EXECUTIVE NAME]:




Name:

on: day of ____2020

in the presence of:




Witness Name:

Witness Address: