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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 June 30, 2022

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: 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 July 29, 2022, the number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 31,477,053.

 

 

 

 


 

CATALYST BIOSCIENCES, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page No.

 

 

 

 

 

PART I. FINANCIAL INFORMATION

 

3

 

 

 

 

 

Item 1.

 

Financial Statements:

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited)

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2022 and 2021 (unaudited)

 

5

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021 (unaudited)

 

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (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

 

24

 

 

 

 

 

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

 

26

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

26

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

26

 

 

 

 

 

Item 5.

 

Other Information

 

26

 

 

 

 

 

Item 6.

 

Exhibits

 

26

 

 

 

 

 

Exhibit Index

 

27

 

 

 

 

 

Signatures

 

28

 

 

 

 


 

 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Catalyst Biosciences, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

 

 

 

June 30, 2022

 

 

December 31, 2021

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

75,394

 

 

$

44,347

 

Short-term investments

 

 

 

 

 

2,504

 

Accounts and other receivables, net

 

 

5,000

 

 

 

1,818

 

Prepaid and other current assets

 

 

914

 

 

 

2,807

 

Total current assets

 

 

81,308

 

 

 

51,476

 

Other assets, noncurrent

 

 

168

 

 

 

472

 

Right-of-use assets

 

 

1,733

 

 

 

2,744

 

Property and equipment, net

 

 

164

 

 

 

970

 

Total assets

 

$

83,373

 

 

$

55,662

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,037

 

 

$

6,419

 

Accrued compensation

 

 

911

 

 

 

1,467

 

Deferred revenue

 

 

 

 

 

230

 

Other accrued liabilities

 

 

948

 

 

 

4,072

 

Operating lease liability

 

 

1,415

 

 

 

1,977

 

Total current liabilities

 

 

4,311

 

 

 

14,165

 

Operating lease liability, noncurrent

 

 

 

 

 

408

 

Total liabilities

 

 

4,311

 

 

 

14,573

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

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; 31,477,053 and

   31,409,707 shares issued and outstanding at June 30, 2022 and

   December 31, 2021, respectively

 

 

31

 

 

 

31

 

Additional paid-in capital

 

 

444,629

 

 

 

443,752

 

Accumulated deficit

 

 

(365,598

)

 

 

(402,694

)

Total stockholders’ equity

 

 

79,062

 

 

 

41,089

 

Total liabilities and stockholders’ equity

 

$

83,373

 

 

$

55,662

 

 

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

 

 

3


 

 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collaboration

 

$

 

 

$

1,132

 

 

$

794

 

 

$

2,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of collaboration

 

 

 

 

 

1,139

 

 

 

798

 

 

 

2,619

 

Research and development

 

 

1,871

 

 

 

15,389

 

 

 

11,574

 

 

 

32,402

 

General and administrative

 

 

3,844

 

 

 

4,518

 

 

 

8,838

 

 

 

9,930

 

Gain on disposal of assets, net

 

 

(57,245

)

 

 

 

 

(57,245

)

 

 

Total operating expenses (income)

 

 

(51,530

)

 

 

21,046

 

 

 

(36,035

)

 

 

44,951

 

Income (loss) from operations

 

 

51,530

 

 

 

(19,914

)

 

 

36,829

 

 

 

(42,352

)

Interest and other income (expense), net

 

 

102

 

 

 

(14

)

 

 

267

 

 

 

(14

)

Net income (loss)

 

$

51,632

 

 

$

(19,928

)

 

$

37,096

 

 

$

(42,366

)

Net income (loss) per share attributable to common

   stockholders, basic

 

$

1.64

 

 

$

(0.64

)

 

$

1.18

 

 

$

(1.42

)

Net income (loss) per share attributable to common

   stockholders, diluted

 

$

1.64

 

 

$

(0.64

)

 

$

1.18

 

 

$

(1.42

)

Shares used to compute net income (loss) per share attributable to

   common stockholders, basic

 

 

31,477,053

 

 

 

31,348,602

 

 

 

31,466,630

 

 

 

29,875,202

 

Shares used to compute net income (loss) per share attributable to

   common stockholders, diluted

 

 

31,482,925

 

 

 

31,348,602

 

 

 

31,469,566

 

 

 

29,875,202

 

 

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

 

 

4


 

 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income (loss)

 

$

51,632

 

 

$

(19,928

)

 

$

37,096

 

 

$

(42,366

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on available-for-sale debt securities

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Total comprehensive income (loss)

 

$

51,632

 

 

$

(19,931

)

 

$

37,096

 

 

$

(42,369

)

 

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

 

 

5


 

 

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, 2021

 

 

 

 

$

 

 

 

31,409,707

 

 

$

31

 

 

$

443,752

 

 

$

 

 

$

(402,694

)

 

$

41,089

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

32,684

 

 

 

 

 

 

515

 

 

 

 

 

 

 

 

 

515

 

Issuance of common stock from stock

   grants and option exercises

 

 

 

 

 

 

 

 

34,662

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

16

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,536

)

 

 

(14,536

)

Balance at March 31, 2022

 

 

 

 

 

 

 

 

31,477,053

 

 

 

31

 

 

 

444,283

 

 

 

 

 

 

(417,230

)

 

 

27,084

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

346

 

 

 

 

 

 

 

 

 

346

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,632

 

 

 

51,632

 

Balance at June 30, 2022

 

 

 

 

$

 

 

 

31,477,053

 

 

$

31

 

 

$

444,629

 

 

$

 

 

$

(365,598

)

 

$

79,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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

 

6


 

 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

37,096

 

 

$

(42,366

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

861

 

 

 

2,009

 

Depreciation and amortization

 

 

180

 

 

 

90

 

Bad debt expense

 

 

200

 

 

 

Net gain on disposal of assets

 

 

(57,245

)

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts and other receivables

 

 

1,618

 

 

 

1,342

 

Prepaid and other current assets

 

 

2,197

 

 

 

(2,338

)

Accounts payable

 

 

(5,382

)

 

 

(4,091

)

Accrued compensation and other accrued liabilities

 

 

(3,680

)

 

 

663

 

Operating lease liability and right-of-use asset

 

 

41

 

 

 

157

 

Deferred revenue

 

 

(230

)

 

 

55

 

Net cash flows used in operating activities

 

 

(24,344

)

 

 

(44,479

)

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

Proceeds from maturities of short-term investments

 

 

2,504

 

 

 

38,632

 

Proceeds from the sale of property and equipment

 

 

447

 

 

 

 

Proceeds from the sale of complement portfolio to Vertex

 

 

55,000

 

 

 

Payment of transaction costs in connection with sale of complement portfolio to Vertex

 

 

(2,576

)

 

 

 

 

Purchases of property and equipment

 

 

 

 

 

(347

)

Net cash flows provided by investing activities

 

 

55,375

 

 

 

38,285

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

Issuance of common stock for public offering, net of issuance costs

 

 

 

 

 

49,250

 

Issuance of common stock from stock grants and option exercises

 

 

16

 

 

 

205

 

Net cash flow provided by financing activities

 

 

16

 

 

 

49,455

 

Net increase in cash and cash equivalents

 

 

31,047

 

 

 

43,261

 

Cash and cash equivalents at beginning of the period

 

 

44,347

 

 

 

30,360

 

Cash and cash equivalents at end of the period

 

$

75,394

 

 

$

73,621

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

 

 

$

1,850

 

 

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

 

 

7


 

 

Catalyst Biosciences, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

1.

Nature of Operations and Liquidity

Catalyst Biosciences, Inc. and its subsidiary (the “Company” or “Catalyst”) is a biopharmaceutical company with expertise in protease engineering. Prior to ceasing research and development activities in March 2022, the Company had several protease assets that may address unmet medical needs in disorders of the complement or coagulation systems. The Company is exploring several strategic alternatives to monetize the Company’s remaining assets and is focused on distributing its available cash, after paying or reserving for its obligations and liabilities, to stockholders. The Company is located in South San Francisco, California and operates in one segment.

On May 19, 2022, Catalyst entered into and closed on an asset purchase agreement with Vertex Pharmaceuticals Incorporated (“Vertex”), pursuant to which Vertex acquired Catalyst’s complement portfolio, including CB 2782-PEG and CB 4332, as well as its complement-related intellectual property including the ProTUNEtm and ImmunoTUNEtm platforms (See Note 12). After the transaction of its complement portfolio, Catalyst’s product candidates consist of the coagulation related assets marzeptacog alfa (activated) (“MarzAA”), dalcinonacog alfa (“DalcA”), and CB 2679d-GT. MarzAA is a SQ administered next generation engineered coagulation Factor VIIa (“FVIIa”) for the treatment of episodic bleeding and prophylaxis in subjects with rare bleeding disorders. DalcA is a next-generation SQ administered FIX. CB 2679d-GT is an AAV-based gene therapy construct harboring the DalcA sequence. Both MarzAA and DalcA have shown sustained efficacy and safety in mid-stage clinical trials and are available for partnering. CB 2679d-GT has obtained preclinical proof-of-concept and is also available for partnering.

The Company had a net income of $37.1 million for the six months ended June 30, 2022 and an accumulated deficit of $365.6 million as of June 30, 2022. As of June 30, 2022, the Company had $75.4 million of cash and cash equivalents. Its primary uses of cash are to fund operating expenses and general and administrative expenditures. The Company believes that its existing cash and cash equivalents as of June 30, 2022 will be sufficient to fund its cash requirements for at least the next 12 months from the date of the filing of this report. The Company will continue to evaluate the impact of the novel coronavirus disease (“COVID-19”) pandemic on its business, operations, and cash requirements.

2.

Summary of Significant Accounting Policies

Basis of Presentation

The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s financial information. These interim results and cash flows for any interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any other future annual or interim period.

The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”).

Net Income (Loss) Per Share Attributable to Common Stockholders

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of common stock outstanding during the period, adjusted to include the assumed exercise of certain stock options and warrants using the treasury stock method. The calculation assumes that any proceeds that could be obtained upon exercise of options and warrants would be used to purchase common stock at the average market price during the period. Adjustments to the denominator are required to reflect the related dilutive shares.

8


Catalyst Biosciences, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

Accounting Pronouncements Recently Adopted

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this ASU 2021-04 are effective for all entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, including interim periods within those fiscal years. The Company adopted ASU 2021-04 and related updates on January 1, 2022, and the adoption did not have a material impact on its condensed consolidated financial statements.

3.

Fair Value Measurements

For a description of the fair value hierarchy and the Company’s fair value methodology, see “Part II - Item 8 - Financial Statements and Supplementary Data - Note 3 – Summary of Significant Accounting Policies” in the Company’s Annual Report. There were no significant changes in these methodologies during the six months ended June 30, 2022.

The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 (in thousands):

 

 

 

June 30, 2022

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

75,394

 

 

$

 

 

$

 

 

$

75,394

 

Total financial assets

 

$

75,394

 

 

$

 

 

$

 

 

$

75,394

 

 

 

 

December 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

44,347

 

 

$

 

 

$

 

 

$

44,347

 

U.S. government agency securities(2)

 

 

2,504

 

 

 

 

 

 

 

 

 

2,504

 

Total financial assets

 

$

46,851

 

 

$

 

 

$

 

 

$

46,851

 

 

 

(1)

Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets.

 

(2)

Included in short-term investments on the accompanying condensed consolidated balance sheets and classified as available-for-sale debt securities.

The carrying amounts of cash and cash equivalents, accounts and other receivables, accounts payable, and accrued liabilities approximate their fair values due to the short-term maturity of these instruments.

 

9


Catalyst Biosciences, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

 

4.

Financial Instruments

Cash equivalents and short-term investments (debt securities) which are classified as available-for-sale securities, consisted of the following (in thousands):

 

June 30, 2022

 

Amortized

Cost

 

 

Gross

Unrealized