Inovio Pharmaceuticals, Inc 10-Q for FY2023 Q2

Inovio Pharmaceuticals, Inc. (INO)

10-Q 2023-08-09 For: 2023-06-30

Added on April 08, 2026

About this 10-Q

Inovio Pharmaceuticals, Inc filed this 10-Q on August 9, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $225.97K; down 71.2% from $784.4K a year earlier
Net loss: $35.53M; compared with a net loss of $108.5M a year earlier
Diluted EPS: -$0.13; compared with -$0.46 a year earlier

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Delaware						33-0969592
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

660 W. Germantown Pike, Suite 110 Plymouth Meeting, Pennsylvania						19462
(Address of principal executive offices)						(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
COMMON STOCK, $0.001 PAR VALUE	INO	Nasdaq Global Select Market


Part I. Financial Information			1
Item 1. Financial Statements			1
a) Condensed Consolidated Balance Sheets			2
b) Condensed Consolidated Statements of Operations			3
c) Condensed Consolidated Statements of Comprehensive Loss			4
d) Condensed Consolidated Statements of Stockholders' Equity			5
e) Condensed Consolidated Statements of Cash Flows			7
f) Notes to Condensed Consolidated Financial Statements			9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			27
Item 3. Quantitative and Qualitative Disclosures About Market Risk			32
Item 4. Controls and Procedures			33

Part II. Other Information			34
Item 1. Legal Proceedings			34
Item 1A. Risk Factors			35




Item 6. Exhibits			59
Signatures			61


	June 30, 2023		December 31, 2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	52,712,543	$	46,329,359
Short-term investments	142,212,907		206,669,397
Accounts receivable	5,947		1,701,726
Accounts receivable from affiliated entities	5,110,279		10,036,490
Prepaid expenses and other current assets	3,230,882		50,130,481
Prepaid expenses and other current assets from affiliated entities	11,928		375,227

Total current assets	203,284,486		315,242,680
Fixed assets, net	6,303,949		7,727,997
Investment in affiliated entity	2,780,526		2,007,142

Intangible assets, net	—		2,129,861
Goodwill	10,513,371		10,513,371
Operating lease right-of-use assets	9,488,738		10,228,207
Other assets	666,890		684,044
Total assets	$	233,037,960	$	348,533,302
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	21,265,150	$	79,686,885
Accounts payable and accrued expenses due to affiliated entities	1,686,375		1,220,439
Accrued clinical trial expenses	6,172,382		10,594,073


Operating lease liability	2,351,449		2,803,973
Grant funding liability	3,704,781		2,475,031
Grant funding liability from affiliated entity	43,836		87,673
Convertible senior notes	16,708,329		—
Total current liabilities	51,932,302		96,868,074


Convertible senior notes	—		16,614,840

Operating lease liability, net of current portion	11,702,044		12,655,586
Deferred tax liabilities	32,046		32,046


Total liabilities	63,666,392		126,170,546
Stockholders’ equity:
Preferred stock	—		—
Common stock	268,072		253,090
Additional paid-in capital	1,733,826,392		1,710,656,191
Accumulated deficit	(1,564,031,634)		(1,487,847,784)
Accumulated other comprehensive loss	(691,262)		(698,741)
Total Inovio Pharmaceuticals, Inc. stockholders’ equity	169,371,568		222,362,756


Total liabilities and stockholders’ equity	$	233,037,960	$	348,533,302


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022







Revenue from collaborative arrangements and other contracts	$	225,971	$	784,395	$	340,914	$	983,469
Operating expenses:
Research and development	23,743,970		56,464,885		53,920,481		112,443,496
General and administrative	13,523,098		48,456,836		27,413,708		64,410,294

Total operating expenses	37,267,068		104,921,721		81,334,189		176,853,790
Loss from operations	(37,041,097)		(104,137,326)		(80,993,275)		(175,870,321)
Other income (expense):
Interest income	2,168,233		857,667		4,375,404		1,527,481
Interest expense	(313,488)		(313,488)		(626,976)		(626,976)


Gain (loss) on investment in affiliated entity	156,745		(934,015)		773,384		(1,471,743)
Net unrealized gain (loss) on available-for-sale equity securities	922,941		(3,967,101)		4,141,156		(8,807,742)
Other expense, net	(1,427,867)		(3,048)		(3,853,543)		(156,516)




Net loss before share in net loss of Geneos	(35,534,533)		(108,497,311)		(76,183,850)		(185,405,817)

Share in net loss of Geneos	—		—		—		(2,165,213)
Net loss	$	(35,534,533)	$	(108,497,311)	$	(76,183,850)	$	(187,571,030)


Net loss per share
Basic and diluted	$	(0.13)	$	(0.46)	$	(0.29)	$	(0.83)

Weighted average number of common shares outstanding
Basic and diluted	264,353,833		235,278,276		261,412,116		227,154,616


☒			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 and Six Months Ended June 30, 2023
	Preferred stock			Common stock
	Number of shares	Amount		Number of shares	Amount		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at December 31, 2022	9	$	—	253,091,319	$	253,090	$	1,710,656,191	$	(1,487,847,784)	$	(698,741)	$	222,362,756
Issuance of common stock for legal settlement	—	—		9,121,000	9,121		13,990,879		—		—		14,000,000
Vesting of RSUs, net of tax payments	—	—		526,807	527		(425,231)		—		—		(424,704)
Stock-based compensation	—	—		—	—		3,809,003		—		—		3,809,003
Net loss	—	—		—	—		—		(40,649,317)		—		(40,649,317)
Unrealized gain on short-term investments, net of tax	—	—		—	—		—		—		117,862		117,862
Foreign currency translation	—	—		—	—		—		—		(1,918)		(1,918)
Balance at March 31, 2023	9	$	—	262,739,126	$	262,738	$	1,728,030,842	$	(1,528,497,101)	$	(582,797)	$	199,213,682
Issuance of common stock for cash, net of financing costs	—	—		5,105,152	5,105		2,910,074		—		—		2,915,179
Vesting of RSUs, net of tax payments	—	—		228,924	229		(32,521)		—		—		(32,292)
Stock-based compensation	—	—		—	—		2,917,997		—		—		2,917,997
Net loss	—	—		—	—		—		(35,534,533)		—		(35,534,533)
Unrealized loss on short-term investments, net of tax	—	—		—	—		—		—		(108,089)		(108,089)
Foreign currency translation	—	—		—	—		—		—		(376)		(376)
Balance at June 30, 2023	9	$	—	268,073,202	$	268,072	$	1,733,826,392	$	(1,564,031,634)	$	(691,262)	$	169,371,568


	Three and Six Months Ended June 30, 2022
	Preferred stock			Common stock
	Number of shares	Amount		Number of shares	Amount		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Total stockholders’ equity
Balance at December 31, 2021	9	$	—	217,382,887	$	217,382	$	1,609,589,797	$	(1,209,855,522)	$	(282,236)	$	399,669,421
Cumulative adjustment from adoption of ASU 2020-06	—	—		—	—		(3,294,019)		1,825,803		—		(1,468,216)
Issuance of common stock for cash, net of financing costs	—	—		8,480,483	8,481		29,356,057		—		—		29,364,538
Exercise of stock options for cash and vesting of RSUs, net of tax payments	—	—		647,350	646		(943,167)		—		—		(942,521)
Stock-based compensation	—	—		—	—		7,711,151		—		—		7,711,151
Net loss	—	—		—	—		—		(79,073,719)		—		(79,073,719)
Unrealized loss on short-term investments, net of tax	—	—		—	—		—		—		(169,097)		(169,097)
Foreign currency translation	—	—		—	—		—		—		(6,555)		(6,555)
Balance at March 31, 2022	9	$	—	226,510,720	$	226,509	$	1,642,419,819	$	(1,287,103,438)	$	(457,888)	$	355,085,002
Issuance of common stock for cash, net of financing costs	—	—		20,470,475	20,471		43,136,363		—		—		43,156,834
Exercise of stock options for cash and vesting of RSUs, net of tax payments	—	—		523,352	523		(218,213)		—		—		(217,690)
Stock-based compensation	—	—		—	—		8,336,053		—		—		8,336,053
Net loss	—	—		—	—		—		(108,497,311)		—		(108,497,311)
Unrealized loss on short-term investments, net of tax	—	—		—	—		—		—		(176,991)		(176,991)
Foreign currency translation	—	—		—	—		—		—		(14,785)		(14,785)
Balance at June 30, 2022	9	$	—	247,504,547	$	247,503	$	1,693,674,022	$	(1,395,600,749)	$	(649,664)	$	297,671,112


		As of June 30, 2023
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Mutual funds	---	$	65,340,680	$	—	$	(5,232,358)	$	60,108,322
U.S. treasury securities	Less than 1	78,144,669		321		—		78,144,990

Certificates of deposit	Less than 1	2,978,235		12,695		(310)		2,990,620
U.S. agency mortgage-backed securities	*	1,379,591		—		(410,616)		968,975
		$	147,843,175	$	13,016	$	(5,643,284)	$	142,212,907


		As of December 31, 2022
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Mutual funds	---	$	117,036,232	$	—	$	(9,373,514)	$	107,662,718
U.S. treasury securities	Less than 1	95,001,209		7,567		(44,266)		94,964,510

Certificates of deposit	Less than 1	2,977,564		13,664		(320)		2,990,908
U.S. agency mortgage-backed securities	*	1,435,592		—		(384,331)		1,051,261
		$	216,450,597	$	21,231	$	(9,802,431)	$	206,669,397


	Fair Value Measurements at
	June 30, 2023
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Unobservable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Short-term investments
Mutual funds	$	60,108,322	$	60,108,322	$	—	$	—
U.S. treasury securities	78,144,990		78,144,990		—		—

Certificates of deposit	2,990,620		—		2,990,620		—
U.S. agency mortgage-backed securities	968,975		—		968,975		—
Total short-term investments	142,212,907		138,253,312		3,959,595		—

Investment in affiliated entity	2,780,526		2,780,526		—		—
Total assets measured at fair value	$	144,993,433	$	141,033,838	$	3,959,595	$	—


	Fair Value Measurements at
	December 31, 2022
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Unobservable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Short-term investments
Mutual funds	$	107,662,718	$	107,662,718	$	—	$	—
U.S. treasury securities	94,964,510		94,964,510		—		—

Certificates of deposit	2,990,908		—		2,990,908		—
U.S. agency mortgage-backed securities	1,051,261		—		1,051,261		—
Total short-term investments	206,669,397		202,627,228		4,042,169		—

Investment in affiliated entity	2,007,142		2,007,142		—		—
Total assets measured at fair value	$	208,676,539	$	204,634,370	$	4,042,169	$	—


	June 30, 2023		December 31, 2022
Insurance recovery (a)	$	—	$	30,000,000
Prepaid manufacturing expenses	143,700		1,401,028
Other prepaid expenses	3,087,182		18,729,453
	$	3,230,882	$	50,130,481


	June 30, 2023		December 31, 2022
Trade accounts payable	$	8,670,070	$	19,862,487
Accrued compensation	10,001,069		12,574,921
Accrued litigation settlement (a)	—		44,000,000

Other accrued expenses (b)	2,594,011		3,249,477
	$	21,265,150	$	79,686,885


		June 30, 2023								December 31, 2022
	Weighted Average Useful Life (Yrs)	Gross		Accumulated Amortization		Impairment		Net Book Value		Gross		Accumulated Amortization		Net Book Value
Indefinite lived:
Goodwill		$	10,513,371	$	—			$	10,513,371	$	10,513,371	$	—	$	10,513,371
Definite lived:

Licenses	10	—		—		—		—		1,323,761		(1,323,761)		—


Bioject(a)	12	5,100,000		(3,115,556)		(1,984,444)		—		5,100,000		(2,988,889)		2,111,111
Other(b)	18	4,050,000		(4,050,000)		—		—		4,050,000		(4,031,250)		18,750
Total intangible assets	11	9,150,000		(7,165,556)		(1,984,444)		—		10,473,761		(8,343,900)		2,129,861
Total goodwill and intangible assets		$	19,663,371	$	(7,165,556)	$	(1,984,444)	$	10,513,371	$	20,987,132	$	(8,343,900)	$	12,643,232


Original principal amount	$	78,500,000
Principal amount converted into common shares	(62,085,000)

Unamortized debt issuance cost	(62,329)
Accrued interest	355,658
Net carrying amount	$	16,708,329





2023	533,000
2024	16,948,000

Total	$	17,481,000


	Three and Six Months Ended June 30,
	2023	2022
Options to purchase common stock	15,166,694	14,292,362
Service-based restricted stock units	3,665,212	2,869,680
Performance-based restricted stock units	—	111,941
Convertible preferred stock	3,309	3,309
Convertible notes	3,049,980	3,049,980


Total	21,885,195	20,327,272


			Outstanding as of
	Authorized	Issued	June 30, 2023	December 31, 2022
Common Stock, par value $0.001 per share	600,000,000	268,073,202	268,073,202	253,091,319


Series C Preferred Stock, par value $0.001 per share	1,091	1,091	9	9


Remainder of 2023	$	2,098,000
2024	3,050,000
2025	3,063,000
2026	3,139,000
2027	2,526,000
Thereafter	4,223,000
Total remaining lease payments	18,099,000
Less: present value adjustment	(4,046,000)
Total operating lease liabilities	14,053,000
Less: current portion	(2,351,000)
Long-term operating lease liabilities	$	11,702,000

Weighted-average remaining lease term	5.6 years
Weighted-average discount rate	8.6%



Investment in Geneos Series A-2 preferred stock	$	1,999,998
Remeasurement of Geneos Series A-1 preferred stock	165,215
Share in current and accumulated net loss of Geneos for the three months ended March 31, 2022	(2,165,213)
Investment in Geneos as of March 31, 2022	$	—


	Three Months Ended June 30,				Increase (Decrease)
(dollars in thousands)	2023		2022		$		%
INO-4800 and other COVID-19 programs (a)	$	1,324	$	30,866	$	(29,542)	(96)	%
VGX-3100	1,234		5,869		(4,635)		(79)	%
INO-3107	4,569		1,324		3,245		245	%
INO-5401 and other Immuno-oncology	6,414		2,125		4,289		202	%
Other research and development programs (a)	397		(321)		718		(224)	%

Engineering and device-related	1,775		7,519		(5,744)		(76)	%
Stock-based compensation	1,272		2,374		(1,102)		(46)	%
Other unallocated expenses (b)	6,758		6,710		48		1	%
Research and development expense	$	23,743	$	56,466	$	(32,723)	(58)	%


Exhibit Number						Description of Document






3.1						Certificate of Incorporation with all amendments (incorporated by reference to Exhibit 3.1 of the registrant’s registration statement Form S-3, filed on July 23, 2014).

3.2						Amended and Restated Bylaws of Inovio Pharmaceuticals, Inc. dated August 10, 2011 (incorporated by reference to Exhibit 3.2 to the registrant’s current report Form 8-K filed on August 12, 2011).



10.1+						Inovio Pharmaceuticals, Inc. 2023 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the registrant’s current report on Form 8-K filed on May 18, 2023).

10.2+						Form of Option Grant Package under 2023 Omnibus Incentive Plan (filed herewith).

10.3+						Form of RSU Grant Package under 2023 Omnibus Incentive Plan (filed herewith).









31.1						Certification of Chief Executive Officer Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.2						Certification of Chief Financial Officer Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32.1 *						Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).*

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						Inline XBRL Taxonomy Extension Schema Document

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

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


*			This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

+			Indicates management contract or compensatory plan.


		Inovio Pharmaceuticals, Inc.

Date:	August 9, 2023	By	/s/ JACQUELINE E. SHEA
			Jacqueline E. Shea President, Chief Executive Officer and Director (On Behalf of the Registrant)

Date:	August 9, 2023	By	/s/ PETER KIES
			Peter Kies Chief Financial Officer (Principal Financial and Accounting Officer)


Optionholder:
Date of Grant:
Vesting Commencement Date:
Number of Shares of Common Stock Subject to Option:
Exercise Price (Per Share):
Total Exercise Price:
Expiration Date:


Inovio Pharmaceuticals, Inc. By: Signature Name: Title: Date:			Optionholder: Signature Date: