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cbio-10q_20210930.htm

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

☐	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: 000-51173

Catalyst Biosciences, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

56-2020050

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

611 Gateway Blvd., Suite 710

South San Francisco, California

94080

(Address of Principal Executive Offices)

(Zip Code)

(650) 871-0761

(Registrant’s Telephone Number, Including Area Code)

Securities registered or to be 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		CBIO		NASDAQ

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, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “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 8, 2021, the number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 31,409,707.

CATALYST BIOSCIENCES, INC.

TABLE OF CONTENTS

		Page No.

PART I. FINANCIAL INFORMATION			3

Item 1.	Financial Statements:		3

	Condensed Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020		3

	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (unaudited)		4

	Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2021 and 2020 (unaudited)		5

	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2021 and 2020 (unaudited)		6

	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited)		7

	Notes to the Unaudited Interim Condensed Consolidated Financial Statements		8

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

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		27

Item 4.	Controls and Procedures		27

PART II. OTHER INFORMATION			28

Item 1.	Legal Proceedings		28

Item 1A.	Risk Factors		28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		40

Item 3.	Defaults Upon Senior Securities		41

Item 4.	Mine Safety Disclosures		41

Item 5.	Other Information		41

Item 6.	Exhibits		41

Exhibit Index			42

Signatures		43

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Catalyst Biosciences, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	September 30, 2021			December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	59,157		$	30,360
Short-term investments		5,371			48,994
Accounts receivable		1,114			3,313
Prepaid and other current assets		8,322			6,843
Total current assets		73,964			89,510
Long-term investments		—			2,543
Other assets, noncurrent		869			528
Right-of-use assets		2,613			1,832
Property and equipment, net		1,091			433
Total assets	$	78,537		$	94,846
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,862		$	5,931
Accrued compensation		2,548			2,476
Deferred revenue		853			1,983
Other accrued liabilities		8,144			6,743
Operating lease liability		1,844			663
Total current liabilities		17,251			17,796
Operating lease liability, noncurrent		550			981
Total liabilities		17,801			18,777
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; zero shares issued and outstanding		—		—
Common stock, $0.001 par value, 100,000,000 shares authorized; 31,392,618 and 22,097,820 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		31			22
Additional paid-in capital		443,069			390,803
Accumulated other comprehensive income		1			5
Accumulated deficit		(382,365	)		(314,761	)
Total stockholders’ equity		60,736			76,069
Total liabilities and stockholders’ equity	$	78,537		$	94,846

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenue:
License	$	—		$	32		$	—		$	15,100
Collaboration		2,299			861			4,898			3,817
License and collaboration revenue		2,299			893			4,898			18,917

Operating expenses:
Cost of license		—			32			—			3,102
Cost of collaboration		2,307			879			4,926			4,030
Research and development		20,352			12,249			52,754			38,419
General and administrative		4,869			3,833			14,799			11,895
Total operating expenses		27,528			16,993			72,479			57,446
Loss from operations		(25,229	)		(16,100	)		(67,581	)		(38,529	)
Interest and other income (expense), net		(9	)		67			(23	)		1,195
Net loss	$	(25,238	)	$	(16,033	)	$	(67,604	)	$	(37,334	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.80	)	$	(0.73	)	$	(2.23	)	$	(2.05	)
Shares used to compute net loss per share attributable to common stockholders, basic and diluted		31,379,755			22,072,243			30,382,231			18,199,575

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net loss	$	(25,238	)	$	(16,033	)	$	(67,604	)	$	(37,334	)
Other comprehensive loss:
Unrealized loss on available-for-sale debt securities		(1	)		(33	)		(4	)		(26	)
Total comprehensive loss	$	(25,239	)	$	(16,066	)	$	(67,608	)	$	(37,360	)

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

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(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 (Loss)			Deficit			Equity
Balance at December 31, 2020		—	$	—		22,097,820	$	22	$	390,803	$	5		$	(314,761	)	$	76,069
Stock-based compensation expense		—		—		10,149		—		1,026		—			—			1,026
Issuance of common stock from stock grants and option exercises		—		—		38,058		—		182		—			—			182
Issuance of common stock for public offering, net of issuance costs of $3,563		—		—		9,185,000		9		49,241		—			—			49,250
Net loss		—		—		—		—		—		—			(22,438	)		(22,438	)
Balance at March 31, 2021		—		—		31,331,027		31		441,252		5			(337,199	)		104,089
Stock-based compensation expense		—		—		13,713		—		983		—			—			983
Issuance of common stock from stock grants and option exercises		—		—		5,000		—		23		—			—			23
Unrealized loss on available-for-sale debt securities		—		—		—		—		—		(3	)		—			(3	)
Net loss		—		—		—		—		—		—			(19,928	)		(19,928	)
Balance at June 30, 2021		—		—		31,349,740		31		442,258		2			(357,127	)		85,164
Stock-based compensation expense		—		—		15,961		—		713		—			—			713
Issuance of common stock from stock grants and option exercises		—		—		26,917		—		98		—			—			98
Unrealized loss on available-for-sale debt securities		—		—		—		—		—		(1	)		—			(1	)
Net loss		—		—		—		—		—		—			(25,238	)		(25,238	)
Balance at September 30, 2021		—	$	—		31,392,618	$	31	$	443,069	$	1		$	(382,365	)	$	60,736

	Convertible Preferred Stock				Common Stock				Additional Paid-In		Accumulated Other Comprehensive			Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Income (Loss)			Deficit			Equity
Balance at December 31, 2019		—	$	—		12,040,835	$	12	$	326,810	$	34		$	(258,520	)	$	68,336
Stock-based compensation expense		—		—		7,817		—		805		—			—			805
Issuance of common stock from stock grants and option exercises		—		—		62,969		—		339		—			—			339
Issuance of common stock for public offering, net of issuance costs of $2,514		—		—		5,307,692		5		31,981		—			—			31,986
Unrealized gain on available-for-sale debt securities		—		—		—		—		—		106						106
Net loss		—		—		—		—		—		—			(4,053	)		(4,053	)
Balance at March 31, 2020		—		—		17,419,313		17		359,935		140			(262,573	)		97,519
Stock-based compensation expense		—		—		16,048		—		834		—			—			834
Issuance of common stock for public offering, net of issuance costs of $2,045		—		—		4,615,384		5		27,950		—			—			27,955
Unrealized loss on available-for-sale debt securities		—		—		—		—		—		(99	)		—			(99	)
Net loss		—		—		—		—		—		—			(17,248	)		(17,248	)
Balance at June 30, 2020		—		—		22,050,745		22		388,719		41			(279,821	)		108,961
Stock-based compensation expense		—		—		12,295		—		1,068		—			—			1,068
Issuance of common stock from stock grants		—		—		19,884		—		96		—			—			96
Unrealized loss on available-for-sale debt securities		—		—		—		—		—		(33	)		—			(33	)
Net loss		—		—		—		—		—		—			(16,033	)		(16,033	)
Balance at September 30, 2020		—	$	—		22,082,924	$	22	$	389,883	$	8