Spyre Therapeutics, Inc 10-Q for FY2021 Q1

Spyre Therapeutics, Inc. (SYRE)

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

Added on April 10, 2026

About this 10-Q

Spyre Therapeutics, Inc filed this 10-Q on May 10, 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: $0
Net loss: $18.22M; compared with a net loss of $18.73M a year earlier

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Delaware	46-4312787
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
805 Las Cimas Parkway Suite 100 Austin, TX 78746
(Address of principal executive offices including zip code)

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

		Page No.
PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements (Unaudited)	1

	Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020	1

	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020	2

	Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2021 and 2020	3

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2021 and 2020	4

	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4.	Controls and Procedures	25

PART II. OTHER INFORMATION		26

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70

Item 3.	Defaults Upon Senior Securities	70

Item 4.	Mine Safety Disclosures	70

Item 5.	Other Information	70

Item 6.	Exhibits	71

	Signatures	72

	March 31,			December 31,
	2021			2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	80,231		$	90,095
Marketable securities		46,429			56,178
Accounts receivable - license		21,500			—
Prepaid expenses and other current assets		3,252			3,516
Total current assets		151,412			149,789
Restricted cash		1,845			1,842
Property and equipment, net		5,518			5,642
Operating lease right-of-use assets		4,123			4,230
Other non-current assets		716			115
TOTAL ASSETS	$	163,614		$	161,618

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,878		$	2,254
Operating lease liabilities		315			319
Deferred revenue		19,226			—
Accrued and other current liabilities		10,951			13,870
Total current liabilities		32,370			16,443
Non-current operating lease liabilities		5,009			5,129
Deferred revenue, net of current portion		2,274			—
Other non-current liabilities		206			214
TOTAL LIABILITIES		39,859			21,786
Commitments and Contingencies (Note 8)

STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of March 31, 2021 and December 31, 2020; no shares issued and outstanding as of March 31, 2021 and December 31, 2020		—			—
Common stock, $0.0001 par value; 500,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 49,019,901 shares and 47,959,086 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		5			5
Additional paid-in capital		417,951			415,824
Accumulated other comprehensive income		25			11
Accumulated deficit		(294,226	)		(276,008	)
TOTAL STOCKHOLDERS’ EQUITY		123,755			139,832
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	163,614		$	161,618

	Three Months Ended
	March 31,
	2021			2020
Operating expenses:
Research and development	$	11,855		$	14,562
General and administrative		6,354			4,460
Total operating expenses		18,209			19,022
Loss from operations		(18,209	)		(19,022	)

Other income (expense):
Interest income		22			300
Other expense, net		(31	)		(6	)
Total other income (expense)		(9	)		294
Net loss	$	(18,218	)	$	(18,728	)

Net loss per share, basic and diluted	$	(0.28	)	$	(0.57	)
Weighted-average common shares outstanding, basic and diluted		65,604,336			33,097,736

	Three Months Ended March 31, 2021 and 2020
					Additional		Accumulated Other						Total
	Common Stock				Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares		Amount		Capital		Income			Deficit			Equity
Balances - December 31, 2020		47,959	$	5	$	415,824	$	11		$	(276,008	)	$	139,832
Issuance of common stock in connection with employee stock purchase plan		38		—		224		—			—			224
Issuance of common stock in connection with exercise of stock options		23		—		146		—			—			146
Issuance of common stock in connection with exercise of pre-funded warrants		1,000		—		—		—			—			—
Stock-based compensation expense		—		—		1,757		—			—			1,757
Foreign currency translation adjustment		—		—		—		4			—			4
Unrealized gain on marketable securities		—		—		—		10			—			10
Net loss		—		—		—		—			(18,218	)		(18,218	)
Balances - March 31, 2021		49,020	$	5	$	417,951	$	25		$	(294,226	)	$	123,755

					Additional		Accumulated Other						Total
	Common Stock				Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares		Amount		Capital		(Loss) Income			Deficit			Equity
Balances - December 31, 2019		29,084	$	3	$	255,142	$	51		$	(195,115	)	$	60,081
Issuance of common stock in connection with employee stock purchase plan		26		—		174		—			—			174
Issuance of common stock in connection with exercise of stock options		37		—		115		—			—			115
Stock-based compensation expense		—		—		1,348		—			—			1,348
Unrealized loss on marketable securities		—		—		—		(185	)		—			(185	)
Net loss		—		—		—		—			(18,728	)		(18,728	)
Balances - March 31, 2020		29,147	$	3	$	256,779	$	(134	)	$	(213,843	)	$	42,805

Laboratory equipment		5 years
Furniture and office equipment		5 years
Computer equipment		3 years
Software		3 years
Leasehold improvements		Shorter of remaining lease term or estimated useful life

	March 31, 2021
	Level 1		Level 2		Level 3		Total
Financial Assets
Money market funds	$	73,798	$	—	$	—	$	73,798
U.S. treasury securities		—		46,429		—		46,429
Total financial assets	$	73,798	$	46,429	$	—	$	120,227

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Financial Assets
Money market funds	$	6,700	$	—	$	—	$	6,700
U.S. treasury securities		—		57,181		—		57,181
U.S. government agency securities		—		66,893		—		66,893
Corporate bonds		—		3,001		—		3,001
Total financial assets	$	6,700	$	127,075	$	—	$	133,775

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Cash equivalents
Money market funds	$	73,798	$	—	$	—		$	73,798

Marketable securities
U.S. treasury securities	$	46,427	$	3	$	(1	)	$	46,429

	March 31, 2021
	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasury securities	$	4,031	$	(1	)	$	—	$	—	$	4,031	$	(1	)

Issue Date	Expiration Date	Exercise Price		Number of Warrants Outstanding
February 8, 2019	None	$	0.0001		3,750,000
April 30, 2020	None	$	0.0001		12,860,328
Total pre-funded warrants					16,610,328

	Three Months Ended
	March 31,						Dollar
	2021			2020			Change			% Change
	(dollars in thousands)
Operating expenses:
Research and development	$	11,855		$	14,562		$	(2,707	)		19	%
General and administrative		6,354			4,460			1,894			42	%
Total operating expenses		18,209			19,022			(813	)		4	%
Loss from operations		(18,209	)		(19,022	)		813			4	%
Interest income		22			300			(278	)		93	%
Other expense, net		(31	)		(6	)		(25	)	*
Net loss	$	(18,218	)	$	(18,728	)	$	510			3	%

		AEGLEA BIOTHERAPEUTICS, INC.

		By:		/s/ Anthony G. Quinn
				Anthony G. Quinn, M.B Ch.B, Ph.D.
				President, Chief Executive Officer and Director
				(Principal Executive Officer and Principal Financial Officer)

		AEGLEA BIOTHERAPEUTICS, INC.

		By:		/s/ Steven Weber
				Steven Weber
				Vice President and Corporate Controller
				(Principal Accounting Officer)

	Three Months Ended
	March 31,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(18,218	)	$	(18,728	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		355			154
Purchase net (premium) discount on marketable securities		(174	)		19
Net amortization of premium (accretion of discount) on marketable securities		181			(48	)
Stock-based compensation		1,757			1,348
Non-cash operating lease expense		108			152
Changes in operating assets and liabilities:
Accounts receivable - license		(21,500	)		—
Prepaid expenses and other assets		(340	)		(2,696	)
Accounts payable		(376	)		262
Operating lease liabilities		(123	)		(92	)
Deferred revenue		21,500			—
Accrued and other liabilities		(2,700	)		(2,065	)
Net cash used in operating activities		(19,530	)		(21,694	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(450	)		(1,389	)
Purchases of marketable securities		(24,250	)		(4,000	)
Proceeds from maturities of marketable securities		34,000			20,142
Net cash provided by investing activities		9,300			14,753

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from employee stock plan purchases and stock option exercises		367			289
Principal payments on finance lease obligation		(5	)		(7	)
Net cash provided by financing activities		362			282
Effect of exchange rate on cash, cash equivalents, and restricted cash		7			—
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		(9,861	)		(6,659	)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
Beginning of period		91,937			20,753
End of period	$	82,076		$	14,094

Supplemental Disclosure of Non-Cash Investing and Financing Information:
Leased assets obtained in exchange for lease obligations	$	—		$	137
Unpaid amounts related to purchase of property and equipment	$	—		$	1,057

	Three Months Ended
	March 31,
	2021			2020
Equity Incentive Plans
Expected term (in years)		6.01			6.02
Expected volatility		83	%		74	%
Risk-free interest		0.76	%		1.45	%
Dividend yield		0	%		0	%

2016 ESPP
Expected term (in years)		0.49			0.50
Expected volatility		97	%		53	%
Risk-free interest		0.08	%		1.49	%
Dividend yield		0	%		0	%

Date: May 10, 2021	/s/ Anthony G. Quinn
	Anthony G. Quinn, M.B Ch.B, Ph.D.
	President, Chief Executive Officer and Director
	(Principal Executive Officer and Principal Financial Officer)