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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2021

or

 

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

For the transition period from ________ to ________

Commission File Number: 001-39376

 

Poseida Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

47-2846548

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer
Identification No.)

9390 Towne Centre Drive, Suite 200, San Diego, California

92121

(Address of Principal Executive Offices)

(Zip Code)

(858) 779-3100

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

PSTX

Nasdaq Global Select Market

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of November 5, 2021, the registrant had 62,506,279 shares of common stock, $0.0001 par value per share, outstanding.

 

 

1


 

POSEIDA THERAPEUTICS, INC.

Index

 

PART I. FINANCIAL INFORMATION

Page

 

Item 1. Financial Statements (Unaudited)

5

 

Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020

5

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2021 and 2020

6

 

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2021 and 2020.

7

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020

9

 

Notes to Condensed Consolidated Financial Statements

10

 

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

22

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

33

 

Item 4. Controls and Procedures

33

PART II. OTHER INFORMATION

 

 

Item 1. Legal Proceedings

34

 

Item 1A. Risk Factors

34

 

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

80

 

Item 3. Defaults Upon Senior Securities

80

 

Item 4. Mine Safety Disclosures

80

 

Item 5. Other Information

80

 

Item 6. Exhibits

80

 

Signatures

82

 

2


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q including statements regarding our future results of operations or financial condition, business strategy, plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:

 

our expectations regarding the timing, scope and results of our development activities, including our ongoing and planned clinical trials;

 

the timing of and plans for regulatory filings;

 

our plans to obtain and maintain regulatory approvals of our product candidates in any of the indications for which we plan to develop them, and any related restrictions, limitations, and/or warnings in the label of an approved product candidate;

 

the potential benefits of our product candidates and technologies;

 

our expectations regarding the use of our platform technologies to generate novel product candidates;

 

the market opportunities for our product candidates and our ability to maximize those opportunities;

 

our business strategies and goals;

 

estimates of our expenses, capital requirements, any future revenue, and need for additional financing;

 

our expectations regarding establishing manufacturing capabilities;

 

the performance of our third-party suppliers and manufacturers;

 

our expectations regarding our ability to obtain and maintain intellectual property protection for our platform technologies and product candidates and our ability to operate our business without infringing on the intellectual property rights of others;

 

our expectations regarding developments and projections relating to our competitors, competing therapies that are or become available, and our industry;

 

our expectations regarding the impact of the COVID-19 pandemic on our business, our industry and the economy;

 

future changes in or impact of law and regulations in the United States and foreign countries; and

 

the sufficiency of our existing cash, cash equivalents and short-term investments to fund our operations.

We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives and financial needs.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, advancements, discoveries, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations.

Unless the context otherwise indicates, references in this Quarterly Report on Form 10-Q to the terms “Poseida”, “the Company,” “we,” “our” and “us” refer to Poseida Therapeutics, Inc. and its subsidiaries.

3


We regularly make material business and financial information available to our investors using our investor relations website (https://investors.poseida.com). We therefore encourage investors and others interested in Poseida to review the information that we make available on our website, in addition to following our filings with the Securities and Exchange Commission, or the SEC, press releases and conference calls.

4


PART I.  FINANCIAL INFORMATION

Item 1.Financial Statements

POSEIDA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

September 30,

2021

 

 

December 31,

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

197,811

 

 

$

83,966

 

Short-term investments

 

 

 

 

 

225,186

 

Prepaid expenses and other current assets

 

 

6,988

 

 

 

4,844

 

Total current assets

 

 

204,799

 

 

 

313,996

 

Property and equipment, net

 

 

22,442

 

 

 

23,336

 

Operating lease right-of-use assets

 

 

25,187

 

 

 

24,986

 

Intangible assets

 

 

1,320

 

 

 

1,320

 

Goodwill

 

 

4,228

 

 

 

4,228

 

Other long-term assets

 

 

3,961

 

 

 

3,618

 

Total assets

 

$

261,937

 

 

$

371,484

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,644

 

 

$

763

 

Accrued expenses and other liabilities

 

 

22,721

 

 

 

24,454

 

Operating lease liabilities, current

 

 

5,432

 

 

 

4,808

 

Total current liabilities

 

 

31,797

 

 

 

30,025

 

Operating lease liabilities, non-current

 

 

25,382

 

 

 

25,374

 

Term debt

 

 

29,314

 

 

 

29,133

 

Deferred CIRM grant liability

 

 

23,755

 

 

 

23,755

 

Deferred tax liability

 

 

55

 

 

 

55

 

Other long-term liabilities

 

 

1,477

 

 

 

1,174

 

Total liabilities

 

 

111,780

 

 

 

109,516

 

Commitments and Contingencies (Note 10)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value: 250,000,000 shares authorized at September 30, 2021 and December 31, 2020; 62,469,819 and 61,860,897 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

 

 

6

 

 

 

6

 

Additional paid-in capital

 

 

558,479

 

 

 

543,842

 

Accumulated other comprehensive income

 

 

 

 

 

5

 

Accumulated deficit

 

 

(408,328

)

 

 

(281,885

)

Total stockholders’ equity

 

 

150,157

 

 

 

261,968

 

Total liabilities and stockholders’ equity

 

$

261,937

 

 

$

371,484

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


POSEIDA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

32,524

 

 

$

27,016

 

 

$

97,627

 

 

$

75,636

 

General and administrative

 

 

9,066

 

 

 

6,458

 

 

 

26,306

 

 

 

15,553

 

Total operating expenses

 

 

41,590

 

 

 

33,474

 

 

 

123,933

 

 

 

91,189

 

Loss from operations

 

 

(41,590

)

 

 

(33,474

)

 

 

(123,933

)

 

 

(91,189

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(837

)

 

 

(848

)

 

 

(2,518

)

 

 

(2,654

)

Other income (expense), net

 

 

3

 

 

 

(92

)

 

 

8

 

 

 

216

 

Net loss before income tax

 

 

(42,424

)

 

 

(34,414

)

 

 

(126,443

)

 

 

(93,627

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,424

)

 

$

(34,414

)

 

$

(126,443

)

 

$

(93,627

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on short-term investments

 

 

(1

)

 

 

(59

)

 

 

(5

)

 

 

(58

)

Comprehensive loss

 

$

(42,425

)

 

$

(34,473

)

 

$

(126,448

)

 

$

(93,685

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.68

)

 

$

(0.63

)

 

$

(2.03

)

 

$

(3.43

)

Weighted-average number of shares outstanding, basic and diluted

 

 

62,298,243

 

 

 

54,973,788

 

 

 

62,144,595

 

 

 

27,324,297

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


POSEIDA THERAPEUTICS, INC.

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(In thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

Balance at January 1, 2021

 

 

 

61,860,897

 

 

$

6

 

 

$

543,842

 

 

$

5

 

 

$

(281,885

)

 

$

261,968

 

Issuance of common stock under employee stock compensation plans

 

 

 

265,839

 

 

 

 

 

 

360

 

 

 

 

 

 

 

 

 

360

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

3,462

 

 

 

 

 

 

 

 

 

3,462

 

Unrealized gain on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,314

)

 

 

(38,314

)

Balance at March 31, 2021

 

 

 

62,126,736

 

 

$

6

 

 

$

547,664

 

 

$

15

 

 

$

(320,199

)

 

$

227,486

 

Issuance of common stock under employee stock compensation plans

 

 

 

39,431

 

 

 

 

 

 

67

 

 

 

 

 

 

 

 

 

67

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

4,742

 

 

 

 

 

 

 

 

 

4,742

 

Unrealized loss on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

(14

)

 

 

 

 

 

(14

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(45,705

)

 

 

(45,705

)

Balance at June 30, 2021

 

 

 

 

 

 

 

62,166,167

 

 

$

6

 

 

$

552,473

 

 

$

1

 

 

$

(365,904

)

 

$

186,576

 

Issuance of common stock under employee stock compensation plans

 

 

 

303,652

 

 

 

 

 

 

1,855

 

 

 

 

 

 

 

 

 

1,855

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

4,151

 

 

 

 

 

 

 

 

 

4,151

 

Unrealized loss on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42,424

)

 

 

(42,424

)

Balance at September 30, 2021

 

 

 

 

 

 

 

62,469,819

 

 

$

6

 

 

$

558,479

 

 

$

 

 

$

(408,328

)

 

$

150,157

 

 

7


 

POSEIDA THERAPEUTICS, INC.

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(In thousands, except share amounts)

(Unaudited)

 

 

 

 

Convertible

Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity (Deficit)

 

Balance at January 1, 2020

 

 

32,934,785

 

 

$

222,173

 

 

 

 

13,196,419

 

 

$

2

 

 

$

2,689

 

 

$

19

 

 

$

(152,221

)

 

$

(149,511

)

Transition adjustment from

   adoption of ASC 842 (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

111

 

 

 

111

 

Issuance of common stock under

   employee stock compensation

   plans

 

 

 

 

 

 

 

 

 

174,359

 

 

 

 

 

 

183

 

 

 

 

 

 

 

 

 

183

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,509

 

 

 

 

 

 

 

 

 

1,509

 

Unrealized gain on available-

   for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

111

 

 

 

 

 

 

111

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,784

)

 

 

(28,784

)

Balance at March 31, 2020

 

 

32,934,785

 

 

$

222,173

 

 

 

 

13,370,778

 

 

$

2

 

 

$

4,381

 

 

$

130

 

 

$

(180,894

)

 

$

(176,381

)

Issuance of Series D preferred

   stock for cash, net of issuance

   costs of $5,359

 

 

10,018,300

 

 

 

104,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,616

 

 

 

 

 

 

 

 

 

1,616

 

Unrealized loss on

   available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(110

)

 

 

 

 

 

(110

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,428

)

 

 

(30,428

)

Balance at June 30, 2020

 

 

42,953,085

 

 

$

326,313

 

 

 

 

13,370,778

 

 

$

2

 

 

$

5,997

 

 

$

20

 

 

$

(211,322

)

 

$

(205,303

)

Issuance of common stock under

   employee stock compensation

   plans

 

 

 

 

 

 

 

 

 

3,623

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Issuance of common stock for

   conversion of preferred stock

   upon closing of initial public offering

 

 

(42,953,085

)

 

 

(326,313

)

 

 

 

34,445,108

 

 

 

3

 

 

 

326,310

 

 

 

 

 

 

 

 

 

326,313

 

Issuance of common stock

   from initial public offering,

   net of issuance costs $18,257

 

 

 

 

 

 

 

 

 

14,000,000

 

 

 

1

 

 

 

205,742

 

 

 

 

 

 

 

 

 

205,743

 

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,895

 

 

 

 

 

 

 

 

 

1,895

 

Reclassification of Series A-1 and

   Series B warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,658

 

 

 

 

 

 

 

 

 

1,658

 

Unrealized loss on available-

   for-sale investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(59

)

 

 

 

 

 

(59

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,414

)

 

 

(34,414

)

Balance at September 30, 2020

 

 

 

 

$

 

 

 

 

61,819,509

 

 

$

6

 

 

$

541,605

 

 

$

(39

)

 

$

(245,736

)

 

$

295,836

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

8


 

POSEIDA THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Operating Activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(126,443

)

 

$

(93,627

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

3,369

 

 

 

1,546

 

Loss on disposal of property and equipment

 

 

3

 

 

 

 

Stock-based compensation

 

 

12,355