Beam Therapeutics Inc 10-Q for FY2021 Q1

Beam Therapeutics Inc. (BEAM)

10-Q 2021-05-11 For: 2021-03-31

Added on April 09, 2026

About this 10-Q

Beam Therapeutics Inc filed this 10-Q on May 11, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $6000; unchanged from $6000 a year earlier
Net loss: $201.56M; compared with a net loss of $30.46M a year earlier

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Delaware	81-5238376
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

26 Landsdowne Street Cambridge, MA	02139
(Address of principal executive offices)	(Zip Code)

Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☐

		Emerging growth company	☒

		Page
PART I	Financial Information
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Other Comprehensive Loss	2
	Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)	3
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33

PART II	Other Information
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Security and Uses of Proceeds	38
Item 6.	Exhibits	39

	March 31, 2021			December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	97,241		$	162,171
Marketable securities		406,238			137,500
Prepaid expenses and other current assets		11,101			8,650
Total current assets		514,580			308,321
Property and equipment, net		51,994			38,513
Restricted cash		14,840			14,840
Operating lease right-of-use assets		106,794			86,859
Other assets		5,033			3,144
Total assets	$	693,241		$	451,677
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	7,983		$	6,314
Accrued expenses and other current liabilities		14,976			18,487
Derivative liabilities		73,100			71,200
Current portion of lease liability		3,885			4,218
Current portion of equipment financing liability		2,142			2,118
Total current liabilities		102,086			102,337
Long-term lease liability		125,825			96,014
Long-term equipment financing liability		4,741			5,294
Contingent consideration liabilities		36,818			—
Other liabilities		1,342			2,471
Total liabilities		270,812			206,116
Commitments and contingencies (See Note 7, Leases, Note 9, License agreements and Note 10, Collaboration and license agreements)
Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized, and no shares issued or outstanding at March 31, 2021 and December 31, 2020, respectively		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized, 62,528,153 and 58,446,016 issued, and 61,735,119 and 57,254,178 outstanding at March 31, 2021 and December 31, 2020, respectively		617			573
Additional paid-in capital		1,021,032			642,633
Accumulated other comprehensive loss		(24	)		(9	)
Accumulated deficit		(599,196	)		(397,636	)
Total stockholders’ equity		422,429			245,561
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity	$	693,241		$	451,677

	Three Months Ended March 31,
	2021			2020
License revenue	$	6		$	6
Operating expenses:
Research and development		190,106			21,549
General and administrative		10,273			6,812
Total operating expenses		200,379			28,361
Loss from operations		(200,373	)		(28,355	)
Other income (expense):
Change in fair value of derivative liabilities		(1,900	)		(2,700	)
Change in fair value of contingent consideration liabilities		(305	)		—
Interest and other income, net		1,018			597
Total other income (expense)		(1,187	)		(2,103	)
Net loss	$	(201,560	)	$	(30,458	)
Unrealized loss on marketable securities		(15	)		(360	)
Comprehensive loss	$	(201,575	)	$	(30,818	)
Reconciliation of net loss to net loss attributable to common stockholders:
Net loss	$	(201,560	)	$	(30,458	)
Accretion of redeemable convertible preferred stock to redemption value, including dividends on preferred stock		—			(1,277	)
Net loss attributable to common stockholders	$	(201,560	)	$	(31,735	)
Net loss per common share attributable to common stockholders, basic and diluted	$	(3.35	)	$	(1.03	)
Weighted-average common shares used in net loss per share attributable to common stockholders, basic and diluted		60,210,120			30,725,077

	Redeemable Convertible Preferred Stock						Common Stock				Additional Paid-in			Accumulated Other Comprehensive			Accumulated			Total Stockholders’ (Deficit)
	Shares			Amount			Shares		Amount		Capital			Loss			Deficit			Equity
Balance at December 31, 2019		130,616,784		$	302,049			7,326,185	$	73	$	1,851		$	16		$	(203,044	)	$	(201,104	)
Accretion of redeemable convertible preferred stock to redemption value		—			1,277			—		—		(1,277	)		—			—			(1,277	)
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering		(130,616,784	)		(303,326	)		29,127,523		291		303,035			—			—			303,326
Issuance of common stock from initial public offering, net of issuance costs of $18.7 million		—			—			12,176,471		122		188,201			—			—			188,323
Vesting of restricted common stock		—			—			387,866		4		(4	)		—			—			—
Stock-based compensation		—			—			—		—		2,792			—			—			2,792
Exercise of common stock options		—			—			59,305		1		151			—			—			152
Other comprehensive loss		—			—			—		—		—			(360	)		—			(360	)
Net loss		—			—			—		—		—			—			(30,458	)		(30,458	)
Balance at March 31, 2020		—		$	—			49,077,350	$	491	$	494,749		$	(344	)	$	(233,502	)	$	261,394

	March 31, 2021		March 31, 2020
Cash and cash equivalents	$	97,241	$	126,050
Restricted cash		14,840		13,332
Total cash, cash equivalents, and restricted cash	$	112,081	$	139,382

	March 31, 2021			December 31, 2020
Lab equipment	$	20,506		$	17,201
Leasehold improvements		12,706			12,706
Furniture and fixtures		1,080			1,078
Computer equipment		576			547
Construction in process		27,379			15,880
Total property and equipment		62,247			47,412
Less accumulated depreciation		(10,253	)		(8,899	)
Property and equipment, net	$	51,994		$	38,513

	Carrying amount		Fair value		Level 1		Level 2		Level 3
Assets
Cash equivalents:
Money market funds	$	62,831	$	62,831	$	62,831	$	—	$	—
Commercial paper		33,054		33,053		—		33,053		—
Marketable securities:
Commercial paper		377,611		377,611		—		377,611		—
Corporate notes		23,623		23,623		—		23,623		—
Government securities		5,004		5,004		—		5,004		—
Total assets	$	502,123	$	502,122	$	62,831	$	439,291	$	—

Liabilities
Success payment liability – Harvard	$	36,500	$	36,500	$	—	$	—	$	36,500
Success payment liability – Broad Institute		36,600		36,600		—		—		36,600
Contingent consideration liability - Technology		29,648		29,648	$	—	$	—	$	29,648
Contingent consideration liability - Product		7,170		7,170		—		—		7,170
Total liabilities	$	109,918	$	109,918	$	—	$	—	$	109,918

	Harvard						Broad Institute
	March 31, 2021			December 31, 2020			March 31, 2021			December 31, 2020
Fair value of common stock (per share)	$	80.04		$	81.64		$	80.04		$	81.64
Expected volatility		76	%		74	%		75	%		74	%
Expected term (years)	0.10-8.25			0.35-8.49			0.10-9.11			0.35-9.36

	Three Months Ended March 31, 2021
	Harvard		Broad Institute		Total
Balance at December 31, 2020	$	35,500	$	35,700	$	71,200
Change in fair value		1,000		900		1,900
Balance at March 31, 2021	$	36,500	$	36,600	$	73,100

	Three Months Ended March 31, 2021
	Technology Milestones		Product Milestones		Total
Balance at February 23, 2021 (inception)	$	29,403	$	7,110	$	36,513
Change in fair value		245		60		305
Balance at March 31, 2021	$	29,648	$	7,170	$	36,818

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Commercial paper	$	377,625	$	14	$	(28	)	$	377,611
Corporate notes		23,633		—		(10	)		23,623
Government securities		5,004		—		—			5,004
Total	$	406,262	$	14	$	(38	)	$	406,238

	March 31, 2021		December 31, 2020
Professional fees	$	3,246	$	1,948
Other research costs		3,059		2,423
Process development and manufacturing costs		2,042		2,272
Employee compensation and related benefits		1,821		7,591
Other		4,808		4,253
Total	$	14,976	$	18,487

	Three Months Ended March 31,
	2021		2020
Operating lease costs	$	4,558	$	1,598
Variable lease costs		210		288
Total	$	4,768	$	1,886

	Technology Milestones			Product Milestones
	March 31, 2021			March 31, 2021
Discount Rate		8.50	%		8.50	%
Probability of Payment	10-60%			2-15%
Projected Year of Payment	2021-2022			2023-2027

Remainder of 2021	$	7,943
2022		16,121
2023		17,231
2024		17,756
2025		18,228
Thereafter		133,945
Undiscounted lease payments		211,224
Less: imputed interest		(81,514	)
Total operating lease liabilities	$	129,710

Transaction price
Fair value of equity instruments issued	$	120,032
Technology and product contingent consideration liabilities		36,513
Transaction costs		2,531
Total transaction price	$	159,076
Transaction price allocated
In-process research and development	$	154,953
Cash acquired		3,151
Prepaid expenses and other assets		264
Property and equipment		1,835
Assembled workforce		300
Other liabilities assumed		(1,427	)
Total transaction price	$	159,076

	Number of options			Weighted average exercise price
Outstanding at December 31, 2020		5,336,441		$	9.70
Granted		992,659			80.89
Exercised		(199,284	)		8.82
Forfeitures		(21,690	)		9.06
Outstanding at March 31, 2021		6,108,126			21.30
Exercisable as of March 31, 2021		1,720,606			5.64

	Shares			Weighted- average grant date fair value
Unvested as of December 31, 2020		1,275,338		$	10.95
Issued		511,580			80.04
Vested		(398,804	)		3.30
Unvested as of March 31, 2021		1,388,114		$	37.64

	As of March 31,
	2021		2020
Unvested restricted stock		1,388,114		2,267,940
Outstanding options to purchase common stock		6,108,126		5,663,598
Total		7,496,240		7,931,538

	BEAM THERAPEUTICS INC.

Date: May 11, 2021	By:	/s/ John Evans
		John Evans
		Chief Executive Officer
		(Principal executive officer)

Date: May 11, 2021	By:	/s/ Terry-Ann Burrell
		Terry-Ann Burrell
		Chief Financial Officer and Treasurer
		(Principal financial and accounting officer)