Corvus Pharmaceuticals, Inc 10-Q for FY2021 Q1

Corvus Pharmaceuticals, Inc. (CRVS)

10-Q 2021-04-29 For: 2021-03-31

Added on April 11, 2026

About this 10-Q

Corvus Pharmaceuticals, Inc filed this 10-Q on April 29, 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.

Net loss: $11.58M; compared with a net loss of $12.94M a year earlier

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Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.0001 per share	CRVS	Nasdaq Global Market


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

PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	4
	Condensed Consolidated Statements of Change in Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4	Controls and Procedures	28

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	77
Item 3.	Defaults Upon Senior Securities	77
Item 4.	Mine Safety Disclosures	77
Item 5.	Other Information	77
Item 6.	Exhibits	78

SIGNATURES		79


	March 31,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	45,104	$	16,455
Marketable securities		22,865		27,804
Prepaid and other current assets		840		1,077
Total current assets		68,809		45,336
Property and equipment, net		769		906
Operating lease right-of-use asset		1,455		1,648
Investment in Angel Pharmaceuticals		37,125		37,225
Other assets		1,078		414
Total assets	$	109,236	$	85,529

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,910	$	3,467
Operating lease liability		1,115		1,078
Accrued and other liabilities		7,891		7,604
Total current liabilities		13,916		12,149
Operating lease liability		935		1,232
Total liabilities		14,851		13,381
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock: $0.0001 par value; 10,000,000 shares authorized at March 31, 2021 and December 31, 2020; 0 shares issued and outstanding at March 31, 2021 and December 31, 2020		—		—
Common stock: $0.0001 par value; 290,000,000 shares authorized at March 31, 2021 and December 31, 2020; 38,309,551 and 28,372,634 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		4		3
Additional paid-in capital		329,095		295,281
Accumulated other comprehensive income		6		4
Accumulated deficit		(234,720)		(223,140)
Total stockholders’ equity		94,385		72,148
Total liabilities and stockholders’ equity	$	109,236	$	85,529


	Three Months Ended
	March 31,
	2021		2020
Operating expenses:
Research and development	$	8,230	$	10,163
General and administrative		3,253		3,106
Total operating expenses		11,483		13,269
Loss from operations		(11,483)		(13,269)
Interest income and other expense, net		3		334
Loss from equity method investment		(100)		–
Net loss	$	(11,580)	$	(12,935)
Net loss per share, basic and diluted	$	(0.34)	$	(0.44)
Shares used to compute net loss per share, basic and diluted		34,515,116		29,411,233
Other comprehensive loss:
Unrealized gain (loss) on marketable securities		2		14
Comprehensive loss	$	(11,578)	$	(12,921)



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


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


	Three Months Ended March 31, 2021
						Accumulated
				Additional		Other				Total
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		Income		Deficit		Equity
Balance at December 31, 2020	28,372,634	$	3	$	295,281	$	4	$	(223,140)	$	72,148
Stock-based compensation expense	—		—		1,225		—		—		1,225
Unrealized gain on marketable securities	—		—		—		2		—		2
Issuance of common stock in connection with at-the-market offering, net	153,257		—		601		—		—		601
Issuance of common stock upon follow-on public offering, net	9,783,660		1		31,988		—		—		31,989
Net loss	—		—		—		—		(11,580)		(11,580)
Balance at March 31, 2021	38,309,551	$	4	$	329,095	$	6	$	(234,720)	$	94,385


	Three Months Ended March 31, 2020
						Accumulated
				Additional		Other				Total
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		Income		Deficit		Equity
Balance at December 31, 2019	27,953,233	$	3	$	288,224	$	29	$	(217,145)	$	71,111
Stock-based compensation expense	—		—		1,845		—		—		1,845
Unrealized gain on marketable securities	—		—		—		14		—		14
Net loss	—		—		—		—		(12,935)		(12,935)
Balance at March 31, 2020	27,953,233	$	3	$	290,069	$	43	$	(230,080)	$	60,035


	March 31, 2021
	Fair Value Measured Using						Total
	(Level 1)		(Level 2)		(Level 3)		Balance
Assets
Cash equivalents	$	41,369	$	—	$	—	$	41,369
Marketable securities		4,046		18,819		—		22,865
	$	45,415	$	18,819	$	—	$	64,234


	December 31, 2020
	Fair Value Measured Using						Total
	(Level 1)		(Level 2)		(Level 3)		Balance
Assets
Cash equivalents	$	15,974	$	—	$	—	$	15,974
Marketable securities		6,074		21,730		—		27,804
	$	22,048	$	21,730	$	—	$	43,778


	March 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury securities	$	4,044	$	2	$	—	$	4,046
U.S. Government agency securities		18,815		4		—		18,819
	$	22,859	$	6	$	—	$	22,865


		As of		As of
Balance Sheet Data (unaudited)	March 31, 2021		December 31, 2020

	(In thousands)
Current assets	$	42,550	$	38,883
Non-current assets		14		—
Current liabilities		140		97
Stockholders' equity		42,424		38,786


	Three Months Ended
Statement of Operations Data (unaudited)	March 31, 2021		March 31, 2020

	(In thousands)
Net loss	$	(118)		—
Share of loss from investments accounted for using the equity method		(100)		—


		Options Outstanding
			Weighted ‑
	Shares		Average
	Available	Number of	Exercise
	for Grant	Options	Price
Balance at December 31, 2020	1,692,753	6,664,173	$	7.26
Additional shares authorized	1,134,000	—		—
Options granted	(15,000)	15,000		3.90
Options forfeited	455,788	(455,788)		6.28
Balance at March 31, 2021	3,267,541	6,223,385	$	7.32


	March 31,		December 31,
	2021		2020
Prepaid and Other Current Assets
Interest receivable	$	126	$	86
Prepaid research and development manufacturing expenses		181		181
Prepaid facility expenses		174		160
Prepaid insurance		151		244
Other		208		406
	$	840	$	1,077
Property and Equipment
Laboratory equipment	$	2,472	$	2,472
Computer equipment and purchased software		142		142
Leasehold improvements		2,084		2,084
		4,698		4,698
Less: accumulated depreciation and amortization		(3,929)		(3,792)
	$	769	$	906
Accrued and Other Liabilities
Accrued clinical trial related	$	4,503	$	4,681
Accrued manufacturing expense		633		321
Personnel related		1,601		2,225
Accrued legal and accounting		540		197
Other		614		180
	$	7,891	$	7,604


	March 31,	December 31,
	2021	2020
Exchange warrants	1,458,000	1,458,000
Shares available for future option grants	3,267,541	1,692,753
Outstanding options	6,223,385	6,664,173
Shares reserved for employee stock purchase plan	400,000	400,000
Total	11,348,926	10,214,926


		Three Months Ended
	Statements of operations and	March 31,
	comprehensive loss location	2021		2020
Costs of operating lease
Operating lease costs	Research and development, General and administrative	$	239	$	239
Costs of non-lease components (previously common area maintenance)	Research and development, General and administrative		102		88
Total operating lease cost		$	341	$	327
Other Information
Operating cash flows used for operating lease		$	413	$	377
Remaining lease term			1.8 years		2.8 years
Discount rate			10.0%		10.0%


Year Ended December 31 (in thousands)
2021*	$	945
2022		1,299
Total lease payments		2,244
Less: imputed interest		(194)
Total	$	2,050


Year Ended December 31 (in thousands)
2021	$	1,260
2022		1,299
Total lease payments		2,559
Less: imputed interest		(249)
Total	$	2,310


	Number of		Aggregate
		Shares of	Purchase
	Common Stock		Price
Owners of More Than 5% of Our Common Stock
OrbiMed Advisors LLC (1)		1,285,714	$	4,499,999
Board of Directors
Richard A. Miller, M.D.		100,000		350,000


Exhibit		Incorporated by Reference			Filed
Number	Exhibit Description	Form	Date	Number	Herewith

3.1	Amended and Restated Certificate of Incorporation.	8-K	3/29/2016	3.1

3.2	Amended and Restated Bylaws.	8-K	3/29/2016	3.2

4.1	Reference is made to Exhibits 3.1 through 3.2.

4.2	Form of Common Stock Certificate.	S-1	1/4/2016	4.2

4.3	Amended and Restated Investors’ Rights Agreement, dated September 16, 2015, by and among Corvus Pharmaceuticals, Inc. and the investors listed therein.	S-1/A	2/8/2016	4.3

4.4	Form of Warrant	8-K	11/12/2019	4.1

4.5	Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934	10-K	3/25/2021	4.5

10.1	Open Market Sale Agreement, dated March 9, 2020, by and between Corvus Pharmaceuticals, Inc. and Jefferies LLC.	S-3	3/9/2020	1.2

31.1	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).				X

31.2	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).				X

32.1*	Certification required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350).				X

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.				X

101.SCH	Inline XBRL Taxonomy Extension Schema Document.				X

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.				X

101.DEF	Inline XBRL Taxonomy Extension Definitions Linkbase Document.				X

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.				X

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.				X

104	The cover page of Corvus Pharmaceuticals, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL (contained in Exhibit 101).				X


	CORVUS PHARMACEUTICALS, INC.

Date: April 29, 2021	By:	/s/ Richard. A. Miller
		Richard A. Miller, M.D.
		President, Chief Executive Officer and Director
		(Principal Executive Officer)

Date: April 29, 2021	By:	/s/ Leiv Lea
		Leiv Lea
		Chief Financial Officer
		(Principal Financial and Accounting Officer)