In8bio, Inc 10-Q for FY2021 Q3

About this 10-Q

Headline figures

In8bio, Inc. (INAB)

10-Q 2021-11-10 For: 2021-09-30

Added on April 07, 2026

In8bio, Inc filed this 10-Q on November 10, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $3.39M; compared with a net loss of $1.68M a year earlier

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Delaware	82-5462585
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

350 5th Avenue, Suite 5330 New York, New York	10118
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	INAB	The Nasdaq Stock Market LLC


		Page
PART I	FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (Unaudited)	1
	Condensed Balance Sheets	1
	Condensed Statements of Operations	2
	Condensed Statements of Convertible Preferred Stock, Common Stock and Stockholders’ Equity (Deficit)	3
	Condensed Statements of Cash Flows	4
	Notes to Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosures	64
Item 5.	Other Information	64
Item 6.	Exhibits	65
	Signatures


	September 30,
	2021			December 31,
	(unaudited)			2020
Assets				(Note 2)
Current assets
Cash	$	40,675		$	17,994
Prepaid expenses and other current assets		3,202			150
Total Current Assets		43,877			18,144
Non-current assets
Property and equipment, net		302			186
Deferred offering costs		—			2,439
Right of use assets - financing leases		849			—
Right of use assets - operating leases		1,697			—
Other non-current assets		409			141
Total Non-Current Assets		3,257			2,766
Total Assets	$	47,134		$	20,910
Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)
Liabilities
Current liabilities
Accounts payable	$	692		$	620
Accrued expenses and other current liabilities		840			1,778
Short-term financing lease liability		464			—
Short-term operating lease liability		164			—
Loan payable, current		—			174
Total Current Liabilities		2,160			2,572
Deferred rent		—			17
Long-term financing lease liability		343			—
Long-term operating lease liability		1,593			—
Total Liabilities		4,096			2,589
Commitments and Contingencies
Convertible preferred stock, Series A (Note 7)		—			34,900
Stockholders' Equity (Deficit)
Common stock, par value $0.0001 per share; 490,000,000 and 50,700,000 shares authorized at September 30, 2021 and December 31, 2020; 18,754,553 and 3,764,488 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		3			1
Additional paid-in capital		69,877			1,458
Accumulated deficit		(26,842	)		(18,038	)
Total Stockholders' Equity (Deficit)		43,038			(16,579	)
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)	$	47,134		$	20,910


☒	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 FOR THE TRANSITION PERIOD FROM TO


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Operating expenses:
Research and development	$	1,350		$	1,057		$	4,660		$	3,893
General and administrative		2,041			624			4,144			2,353
Total operating expenses		3,391			1,681			8,804			6,246
Loss from operations		(3,391	)		(1,681	)		(8,804	)		(6,246	)
Net loss	$	(3,391	)	$	(1,681	)	$	(8,804	)	$	(6,246	)
Net loss attributable to common stockholders (Note 10)	$	(3,391	)	$	(2,182	)	$	(8,804	)	$	(7,311	)
Net loss per share attributable to common stockholders – basic and diluted	$	(0.25	)	$	(0.60	)	$	(1.26	)	$	(2.14	)
Weighted-average number of shares used in computing net loss per common share, basic and diluted		13,377,682			3,614,329			7,004,099			3,410,101


	Convertible Preferred Stock Series A						Common Stock				Additional Paid-In		Accumulated			Total Stockholders’ Equity
	Shares			Amount			Shares		Amount		Capital		Deficit			(Deficit)
Balance at December 31, 2019		2,713,980		$	8,896			3,235,671	$	1	$	238	$	(9,481	)	$	(9,242	)
Issuance of common stock – in relation to license agreement		—			—			44,011		—		—		—			—
Issuance of common stock		—			—			182,500		—		200		—			200
Issuance of convertible preferred stock – Series A, net of $36 issuance costs		1,533,947			5,461			—		—		—		—			—
Stock-based compensation expense		—			—			—		—		18		—			18
Net loss		—			—			—		—		—		(1,691	)		(1,691	)
Balance at March 31, 2020		4,247,927			14,357			3,462,182		1		456		(11,172	)		(10,715	)
Stock-based compensation expense		—			—			—		—		20		—			20
Net loss		—			—			—		—		—		(2,874	)		(2,874	)
Balance at June 30, 2020		4,247,927			14,357			3,462,182		1		476		(14,046	)		(13,569	)
Issuance of common stock – in relation to license agreement		—			—			45,618		—		103		—			103
Issuance of common stock – in relation to legal settlement		—			—			200,750		—		248		—			248
Issuance of convertible preferred stock - Series A, net of $45 issuance costs		5,514,404			19,714			—		—		—		—			—
Stock-based compensation expense		—			—			—		—		16		—			16
Net loss		—			—			—		—		—		(1,681	)		(1,681	)
Balance at September 30, 2020		9,762,331		$	34,071			3,708,550	$	1	$	843	$	(15,727	)	$	(14,883	)

Balance at December 31, 2020		9,993,727		$	34,900			3,764,488	$	1	$	1,458	$	(18,038	)	$	(16,579	)
Stock-based compensation expense		—			—			—		—		361		—			361
Net loss		—			—			—		—		—		(2,363	)		(2,363	)
Balance at March 31, 2021		9,993,727			34,900			3,764,488		1		1,819		(20,401	)		(18,581	)
Stock-based compensation expense		—			—			—		—		392		—			392
Net loss		—			—			—		—		—		(3,050	)		(3,050	)
Balance at June 30, 2021		9,993,727			34,900			3,764,488		1		2,211		(23,451	)		(21,239	)
Issuance of common stock – as a result of IPO, net of issuance costs		—			—			4,000,000		1		32,290		—			32,291
Conversion of convertible preferred stock to common stock upon closing of IPO		(9,993,727	)		(34,900	)		10,990,065		1		34,899		—			34,900
Stock-based compensation expense		—			—			—		—		477		—			477
Net loss		—			—			—		—		—		(3,391	)		(3,391	)
Balance at September 30, 2021		—		$	—			18,754,553	$	3	$	69,877	$	(26,842	)	$	43,038


	Nine Months Ended September 30,
	2021			2020
Operating activities
Net loss	$	(8,804	)	$	(6,246	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		67			66
Stock-based compensation		1,230			54
Stock issuance related to license agreement		—			103
Amortization of financing lease right-of-use assets		392			—
Amortization of operating lease right-of-use assets		95			—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(3,117	)		6
Other non-current assets		(268	)		(12	)
Accounts payable		42			(195	)
Accrued expenses and other current liabilities		(938	)		816
Short-term operating lease liabilities		87			—
Long-term operating lease liabilities		(119	)		—
Net cash used in operating activities		(11,333	)		(5,408	)
Investing activities
Construction in progress		(153	)		—
Net cash used in investing activities		(153	)		—
Financing activities
Proceeds from the issuance of common stock		36,327			448
Proceeds from issuance of preferred stock - Series A, net of $16 of issuance costs		—			25,175
Principal payments on financing leases		(390	)		—
Proceeds from issuance of loan		—			174
Loan payable		(174	)		—
Deferred offering costs paid		(1,596	)		(331	)
Net cash provided by financing activities		34,167			25,466
Net increase in cash and restricted cash		22,681			20,058
Cash and restricted cash at beginning of period		17,994			610
Cash and restricted cash at end of period	$	40,675		$	20,668
Supplemental disclosure of non-cash operating, financing and investing information:
Deferred offering costs included in accounts payable and accrued expenses	$	—		$	1,062
Construction in progress included in accounts payable	$	30		$	—
Conversion of preferred stock - Series A into common stock	$	34,900		$	—
Right-of-use assets obtained in exchange for financing lease	$	309		$	—
Right-of-use assets obtained in exchange for operating lease	$	969		$	—
Initial measurement of operating lease right-of-use assets and liabilities	$	3,483		$	—


	September 30, 2021			December 31, 2020
Machinery and equipment	$	443		$	443
Less accumulated depreciation		(324	)		(257	)
Construction in progress		183			—
Property and equipment, net	$	302		$	186


	September 30, 2021		December 31, 2020
Prepaid expenses	$	3,167	$	150
Other		35		—
Prepaid expenses and other current assets	$	3,202	$	150


	September 30, 2021		December 31, 2020
Accrued offering costs	$	—	$	876
Accrued clinical trials		164		376
Accrued compensation		474		400
Accrued other		202		126
Total accrued expenses and other current liabilities	$	840	$	1,778


	Number of Stock Options			Weighted- Average Exercise Price			Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2020		1,247,158		$	5.16			9.34	$	1,486
Granted		786,407			8.08
Exercised		—			—
Forfeited		(127,721	)		(5.16	)
Outstanding at September 30, 2021		1,905,844		$	6.37			9.02	$	2,372
Exercisable at September 30, 2021		297,008		$	3.62			8.12	$	1,031
Options expected to vest as of September 30, 2021		1,608,836		$	6.87			9.18	$	1,341


	September 30, 2021	September 30, 2020
Volatility	88.78%-89.15%	83.3%-91.8%
Expected life (years)	5.49-6.27	6.08
Risk-free interest rate	0.66%-0.70%	0.5%-1.4%
Dividend rate	—%	—%


	Financing Leases		Operating Leases
Remainder of 2021	$	164	$	53
2022		435		405
2023		252		478
2024		30		490
2025		—		502
Thereafter		—		357
Total lease payment		881		2,285
Less: interest		74		528
Total lease liabilities		807		1,757
Less: short-term lease liability		464		164
Long-term lease liability	$	343	$	1,593


+	Indicates a management contract or compensatory plan.
*	This certification is being furnished solely to accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is 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.


		IN8bio, Inc.

Date:	November 10, 2021	By:	/s/ William Ho
			William Ho
			Chief Executive Officer (Principal Executive Officer)

Date:	November 10, 2021	By:	/s/ Patrick McCall
			Patrick McCall
			Chief Financial Officer and Secretary (Principal Financial and Accounting Officer)


		IN8bio, Inc.

Date:	November 10, 2021	By:	/s/ William Ho
			William Ho
			Chief Executive Officer (Principal Executive Officer)


	Three Months Ended September 30,		Nine Months Ended September 30,
Lease Cost
Amortization of finance right-of-use assets	$	141	$	392
Interest on finance lease liabilities		22		67
Operating lease cost		63		168
Short-term lease cost		118		367
Total lease cost	$	344	$	994


	September 30, 2021
Other Operating Lease Information
Cash paid for amounts included in the measurement of lease liability – finance leases	$	67
Cash paid for amounts included in the measurement of lease liability – operating leases		105
Weighted-average remaining lease term – finance leases		1.83
Weighted-average remaining lease term – operating leases		4.96
Weighted-average discount rate – finance leases		10.2	%
Weighted-average discount rate – operating leases		10.4	%


	For the Three Months Ended September 30,
	2021			2020			Change
Operating expenses:
Research and development	$	1,350		$	1,057		$	293
General and administrative		2,041			624			1,417
Total operating expenses		3,391			1,681			1,710
Loss from operations		(3,391	)		(1,681	)		(1,710	)
Net loss	$	(3,391	)	$	(1,681	)	$	(1,710	)


Exhibit Number		Description
3.1		Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-39692), filed with the SEC on August 3, 2021).
3.2		Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-39692), filed with the SEC on August 3, 2021).
4.1		Form of Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to the Company’s Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-249530), filed with the SEC on November 5, 2020).
4.2		Investors’ Rights Agreement, by and among the Registrant and certain of its stockholders, dated May 7, 2018 (incorporated herein by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-1 (File No. 333-249530), filed with the SEC on October 16, 2020).
10.1+		2020 Equity Incentive Plan (incorporated herein by reference to Exhibit 4.6 to the Company’s Registration Statement on Form S-8 (File No. 333-259458), filed with the SEC on September 10, 2021).
10.2+		Forms of Option Grant Notice and Option Agreement under 2020 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.5 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-249530), filed with the Commission on November 5, 2020)
10.3+		Form of Restricted Stock Unit Grant Notice and Unit Award Agreement under 2020 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-249530), filed with the Commission on November 5, 2020).
10.4+		2020 Employee Stock Purchase Plan (incorporated herein by reference to Exhibit 4.6 to the Company’s Registration Statement on Form S-8 (File No. 333-259458), filed with the SEC on September 10, 2021).
10.5+		Non-Employee Director Compensation Policy (incorporated herein by reference to Exhibit 10.19 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-249530), filed with the Commission on July 22, 2021).
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended
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
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