Edgewise Therapeutics, Inc 10-Q for FY2021 Q1

Edgewise Therapeutics, Inc. (EWTX)

10-Q 2021-05-13 For: 2021-03-31

Added on April 09, 2026

About this 10-Q

Edgewise Therapeutics, Inc filed this 10-Q on May 13, 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: $6.82M; compared with a net loss of $3.19M a year earlier

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Delaware	82-1725586
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)


Title of Each Class	Trading symbol	Name of Exchange on which registered
Ordinary Shares, par value $0.0001 per share	EWTX	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 (Unaudited)	6

	Condensed Balance Sheets	6

	Condensed Statements of Operations and Comprehensive Loss	7

	Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)	8

	Condensed Statements of Cash Flows	9

	Notes to Condensed Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	29

Item 4.	Controls and Procedures	29

Part II	Other Information	30

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	93

Item 3.	Defaults Upon Senior Securities	93

Item 4.	Mine Safety Disclosures	93

Item 5.	Other Information	93

Item 6.	Exhibits	93


Signatures








	As of		As of
	March 31,		December 31,
Assets	2021		2020
	(Unaudited)
Current assets
Cash and cash equivalents	$	221,036	$	104,916
Marketable securities, available for sale		88,835		24,178
Prepaid expenses and other assets		674		551
Total current assets		310,545		129,645


Property and equipment		1,008		946
Less: accumulated depreciation		(509)		(430)
Total property and equipment		499		516
Other non-current assets		201		975

Total assets	$	311,245	$	131,136


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

Current liabilities
Accounts payable	$	1,621	$	1,580
Accrued compensation		672		1,175
Accrued other expenses		2,558		1,587
Total current liabilities		4,851		4,342

Commitments and contingencies (see note 5)

Convertible preferred stock
Series A preferred stock, $.0001 par value, no shares and 15,500,000 shares authorized, no shares and 8,187,100 shares issued and outstanding with an aggregate liquidation preference of $0 and $15,500 as of March 31, 2021 and December 31, 2020, respectively		—		15,484
Series B-1 preferred stock, $.0001 par value, no shares and 14,934,484 shares authorized, no shares and 7,888,392 issued and outstanding with an aggregate liquidation preference of $0 and $25,075 as of March 31, 2021 and December 31, 2020, respectively		—		24,778
Series B-2 preferred stock, $.0001 par value, no shares and 12,358,305 shares authorized, no shares and 6,527,654 shares issued and outstanding with an aggregate liquidation preference of $0 and $25,075 as of March 31, 2021 and December 31, 2020, respectively		—		25,056
Series C preferred stock, $.0001 par value, no shares and 24,525,629 shares authorized, no shares and 12,954,423 shares issued and outstanding with aggregate liquidation preference of $0 and $95,000 as of March 31, 2021 and December 31, 2020, respectively		—		94,896
Total convertible preferred stock		—		160,214

Stockholders' equity (deficit)
Preferred stock, $.0001 par value per share; 200,000,000 shares and no shares authorized as of March 31, 2021 and December 31, 2020, respectively; no shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		—		—
Common stock, $.0001 par value per share; 1,000,000,000 shares and 88,000,000 shares authorized, 49,254,311 shares and 1,009,479 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		5		—
Additional paid-in capital		347,405		727
Accumulated other comprehensive loss		(54)		—
Accumulated deficit		(40,962)		(34,147)
Total stockholders' (deficit) equity		306,394		(33,420)

Total liabilities, convertible preferred stock and stockholders' equity (deficit)	$	311,245	$	131,136


	Three months ended March 31,
	2021		2020

Operating expenses
Research and development	$	5,360	$	2,967
General and administrative		1,497		281
Total operating expenses		6,857		3,248

Loss from operations		(6,857)		(3,248)

Other income
Interest income		42		63
Total other income		42		63

Net loss		(6,815)		(3,185)

Other comprehensive loss:
Unrealized loss on available-for-sale securities		(54)		—
Total comprehensive loss	$	(6,869)	$	(3,185)

Net loss per share, basic and diluted	$	(4.37)	$	(7.57)
Weighted-average shares outstanding, basic and diluted		1,559,868		420,482


	Series A Convertible			Series B-1 Convertible			Series B-2 Convertible			Series C Convertible			Convertible							Accumulated
	Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock		Common Stock			Additional		Other Comprehensive		Accumulated
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Total		Shares	Amount		Paid-In Capital		Loss		Deficit		Total

Balance as of December 31, 2019	8,187,100	$	15,484	7,888,392	$	24,778	—	$	—	—	$	—	$	40,262	419,004	$	—	$	171	$	—	$	(17,024)	$	(16,853)
Exercise of stock options	—		—	—		—	—		—	—		—			33,631		—		15		—		—		15
Stock-based compensation	—		—	—		—	—		—	—		—			—		—		45		—		—		45
Net loss	—		—	—		—	—		—	—		—			—		—		—		—		(3,185)		(3,185)
Balance as of March 31, 2020	8,187,100	$	15,484	7,888,392	$	24,778	—	$	—	—	$	—	$	40,262	452,635	$	—	$	231	$	—	$	(20,209)	$	(19,978)

	Series A Convertible			Series B-1 Convertible			Series B-2 Convertible			Series C Convertible			Convertible							Accumulated
	Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock			Preferred Stock		Common Stock			Additional		Other Comprehensive		Accumulated
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Total		Shares	Amount		Paid-In Capital		Loss		Deficit		Total

Balance as of December 31, 2020	8,187,100	$	15,484	7,888,392	$	24,778	6,527,654	$	25,056	12,954,423	$	94,896	$	160,214	1,009,479	$	—	$	727	$	—	$	(34,147)	$	(33,420)
Convertible preferred stock converted into shares of common stock	(8,187,100)		(15,484)	(7,888,392)		(24,778)	(6,527,654)		(25,056)	(12,954,423)		(94,896)		(160,214)	35,557,569		4		160,210		—		—		160,214
Initial public offering of common stock, net of $2.1 million in offering costs	—		—	—		—	—		—	—		—		—	12,650,000		1		186,147		—		—		186,148
Exercise of stock options	—		—	—		—	—		—	—		—		—	37,263		—		25		—		—		25
Stock-based compensation	—		—	—		—	—		—	—		—		—	—		—		296		—		—		296
Other comprehensive loss	—		—	—		—	—		—	—		—		—	—		—		—		(54)		—		(54)
Net loss	—		—	—		—	—		—	—		—		—	—		—		—		—		(6,815)		(6,815)
Balance as of March 31, 2021	—	$	—	—	$	—	—	$	—	—	$	—	$	—	49,254,311	$	5	$	347,405	$	(54)	$	(40,962)	$	306,394


	As of March 31, 2021
	Fair Value	Amortized		Unrealized		Unrealized		Fair Market
	Hierarchy	Cost Basis		Gains		Losses		Value
Cash equivalents:
Money market funds	Level 1	$	220,936	$	—	$	—	$	220,936
Marketable securities, available for sale:
Asset-backed securities	Level 2		19,540		—		(14)		19,526
Corporate debt securities	Level 2		36,160		—		(40)		36,120
Commercial paper	Level 2		28,077		—		—		28,077
U.S. government treasury securities	Level 2		5,112		—		—		5,112
Total financial assets		$	309,825	$	—	$	(54)	$	309,771


	As of December 31, 2020
	Fair Value	Amortized		Unrealized		Unrealized		Fair Market
	Hierarchy	Cost Basis		Gains		Losses		Value
Cash equivalents:
Money market funds	Level 1	$	94,020	$	—	$	—	$	94,020
Commercial paper	Level 2		10,796		—		—		10,796
Marketable securities, available for sale:
Asset-backed securities	Level 2		7,246		—		—		7,246
Corporate debt securities	Level 2		13,937		—		—		13,937
Commercial paper	Level 2		2,995		—		—		2,995
Total financial assets		$	128,994	$	—	$	—	$	128,994


	As of March 31,		As of December 31,
	2021		2020
Accrued research and development costs	$	1,590	$	550
Accrued IPO costs		408		452
Accrued license fees		300		300
Accrued other		260		285
Total accrued other expenses	$	2,558	$	1,587


	Payments Due by Period
			Less Than		1 to3		3 to5		More Than
	Total		1 Year		Years		Years		5 Years

		(in thousands)
Operating lease commitments⁽¹⁾	$	35	$	35	$	—	$	—	$	—


Exhibit No.	Description

10.1^˄†	Offer Letter between the Company and Joanne Donovan, M.D., Ph.D.

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 14d-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 – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH†	XBRL Taxonomy Extension Schema Document

101.CAL†	XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document

101.LAB†	XBRL Taxonomy Extension Label Linkbase Document

101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document

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


	EDGEWISE THERAPEUTICS, INC.

	By:	/s/ Kevin Koch
	Name:	Kevin Koch
	Title:	President, Chief Executive Officer and Director
		(Principal Executive Officer)

	By:	/s/ R. Michael Carruthers
	Name:	R. Michael Carruthers
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)