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s

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2023

 

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:

001-37348

 

Corbus Pharmaceuticals Holdings, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

46-4348039

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

 

500 River Ridge Drive

Norwood, MA

02062

(Address of principal executive offices)

(Zip code)

(617) 963-0100

(Registrant’s telephone number, including area code)

 

 

(Former Name, Former Address and Former Fiscal Year if Changed Since Last Report): N/A

 

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

 

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.0001 per share

CRBP

The Nasdaq Capital 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 August 4, 2023, 4,423,683 shares of the registrant’s common stock, $0.0001 par value, were issued and outstanding.

 

 


CORBUS PHARMACEUTICALS HOLDINGS, INC.

 

Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2023

 

TABLE OF CONTENTS

 

 

Page

PART I

 

FINANCIAL INFORMATION

 

1. Condensed Consolidated Financial Statements (unaudited)

3

Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022

3

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2023 and 2022

4

Condensed Consolidated Statement of Stockholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022

5

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022

7

Notes to Condensed Consolidated Financial Statements

8

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

26

3. Quantitative and Qualitative Disclosures about Market Risk

32

4. Controls and Procedures

32

 

PART II

 

OTHER INFORMATION

 

1. Legal Proceedings

34

1A. Risk Factors

34

2. Unregistered Sales of Equity Securities and Use of Proceeds

35

3. Defaults Upon Senior Securities

35

4. Mine Safety Disclosures

35

5. Other Information

35

6. Exhibits

36

 

-2-


PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,349,346

 

 

$

17,002,715

 

Investments

 

 

28,216,560

 

 

 

42,194,296

 

Restricted cash

 

 

192,475

 

 

 

192,475

 

Prepaid expenses and other current assets

 

 

1,515,616

 

 

 

791,616

 

Total current assets

 

 

38,273,997

 

 

 

60,181,102

 

Restricted cash

 

 

477,425

 

 

 

477,425

 

Property and equipment, net

 

 

1,273,602

 

 

 

1,613,815

 

Operating lease right of use assets

 

 

3,486,416

 

 

 

3,884,252

 

Other assets

 

 

211,943

 

 

 

155,346

 

Total assets

 

$

43,723,383

 

 

$

66,311,940

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Notes payable

 

$

51,157

 

 

$

353,323

 

Accounts payable

 

 

1,505,734

 

 

 

2,173,963

 

Accrued expenses

 

 

6,418,803

 

 

 

5,999,252

 

Derivative liability

 

 

36,868

 

 

 

36,868

 

Operating lease liabilities, current

 

 

1,357,240

 

 

 

1,280,863

 

Current portion of long-term debt

 

 

7,016,096

 

 

 

2,795,669

 

Total current liabilities

 

 

16,385,898

 

 

 

12,639,938

 

Long-term debt, net of debt discount

 

 

11,319,365

 

 

 

15,984,426

 

License agreement payable, noncurrent

 

 

2,500,000

 

 

 

 

Other long-term liabilities

 

 

22,205

 

 

 

22,205

 

Operating lease liabilities, noncurrent

 

 

3,975,329

 

 

 

4,675,354

 

Total liabilities

 

 

34,202,797

 

 

 

33,321,923

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares
   issued and outstanding at June 30, 2023 and December 31, 2022. See Note 11

 

 

 

 

 

 

Common stock, $0.0001 par value; 300,000,000 shares authorized,
  
4,422,741 and 4,171,297 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

 

 

442

 

 

 

417

 

Additional paid-in capital

 

 

428,153,252

 

 

 

425,196,359

 

Accumulated deficit

 

 

(418,609,320

)

 

 

(392,080,667

)

Accumulated other comprehensive loss

 

 

(23,788

)

 

 

(126,092

)

Total stockholders’ equity

 

 

9,520,586

 

 

 

32,990,017

 

Total liabilities and stockholders’ equity

 

$

43,723,383

 

 

$

66,311,940

 

 

See notes to the unaudited condensed consolidated financial statements.

-3-


Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

4,248,705

 

 

$

2,499,642

 

 

$

17,637,048

 

 

$

5,785,878

 

General and administrative

 

 

3,940,286

 

 

 

4,840,368

 

 

 

7,848,968

 

 

 

10,071,291

 

Litigation settlement

 

 

 

 

 

5,000,000

 

 

 

 

 

 

5,000,000

 

Total operating expenses

 

 

8,188,991

 

 

 

12,340,010

 

 

 

25,486,016

 

 

 

20,857,169

 

Operating loss

 

 

(8,188,991

)

 

 

(12,340,010

)

 

 

(25,486,016

)

 

 

(20,857,169

)

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

182,657

 

 

 

(208,683

)

 

 

412,164

 

 

 

(402,034

)

Interest expense, net

 

 

(775,586

)

 

 

(490,339

)

 

 

(1,453,608

)

 

 

(949,248

)

Foreign currency exchange loss, net

 

 

(1,921

)

 

 

(209,856

)

 

 

(1,193

)

 

 

(477,679

)

Other expense, net

 

 

(594,850

)

 

 

(908,878

)

 

 

(1,042,637

)

 

 

(1,828,961

)

Net loss

 

$

(8,783,841

)

 

$

(13,248,888

)

 

$

(26,528,653

)

 

$

(22,686,130

)

Net loss per share, basic and diluted

 

$

(2.05

)

 

$

(3.18

)

 

$

(6.27

)

 

$

(5.44

)

Weighted average number of common shares outstanding, basic and diluted

 

 

4,277,701

 

 

 

4,170,464

 

 

 

4,229,894

 

 

 

4,170,255

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(8,783,841

)

 

$

(13,248,888

)

 

$

(26,528,653

)

 

$

(22,686,130

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain (loss) on marketable debt securities

 

 

44,681

 

 

 

50,373

 

 

 

102,304

 

 

 

(56,875

)

Total other comprehensive income (loss)

 

 

44,681

 

 

 

50,373

 

 

 

102,304

 

 

 

(56,875

)

Total comprehensive loss

 

$

(8,739,160

)

 

$

(13,198,515

)

 

$

(26,426,349

)

 

$

(22,743,005

)

 

See notes to the unaudited condensed consolidated financial statements.

 

-4-


Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

 

 

 

For the Three Months Ended June 30, 2023

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at March 31, 2023

 

 

4,215,133

 

 

$

422

 

 

$

426,352,478

 

 

$

(409,825,479

)

 

$

(68,469

)

 

$

16,458,952

 

Issuance of common stock, net of issuance costs of $4,404

 

 

13,164

 

 

 

1

 

 

 

102,418

 

 

 

 

 

 

 

 

 

102,419

 

Issuance of common stock upon conversion of K2 Loan and Security Agreement

 

 

194,444

 

 

 

19

 

 

 

874,981

 

 

 

 

 

 

 

 

 

875,000

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

823,375

 

 

 

 

 

 

 

 

 

823,375

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,681

 

 

 

44,681

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(8,783,841

)

 

 

 

 

 

(8,783,841

)

Balance at June 30, 2023

 

 

4,422,741

 

 

$

442

 

 

$

428,153,252

 

 

$

(418,609,320

)

 

$

(23,788

)

 

$

9,520,586

 

 

 

 

For the Three Months Ended June 30, 2022

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at March 31, 2022

 

 

4,170,464

 

 

$

417

 

 

$

420,495,566

 

 

$

(359,171,006

)

 

$

(169,693

)

 

$

61,155,284

 

Issuance of common stock, net of issuance costs of $0

 

 

417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,513,089

 

 

 

 

 

 

 

 

 

1,513,089

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,373

 

 

 

50,373

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(13,248,888

)

 

 

 

 

 

(13,248,888

)

Balance at June 30, 2022

 

 

4,170,881

 

 

$

417

 

 

$

422,008,655

 

 

$

(372,419,894

)

 

$

(119,320

)

 

$

49,469,858

 

 

See notes to the unaudited condensed consolidated financial statements.

 

-5-


 

 

 

For the Six Months Ended June 30, 2023

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at December 31, 2022

 

 

4,171,297

 

 

$

417

 

 

$

425,196,359

 

 

$

(392,080,667

)

 

$

(126,092

)

 

$

32,990,017

 

Issuance of common stock, net of issuance costs of $4,404

 

 

13,164

 

 

 

1

 

 

 

102,418

 

 

 

 

 

 

 

 

 

102,419

 

Issuance of common stock upon conversion of K2 Loan and Security Agreement

 

 

194,444

 

 

 

19

 

 

 

874,981

 

 

 

 

 

 

 

 

 

875,000

 

Issuance of common stock upon exercise of stock options

 

 

43,836

 

 

 

5

 

 

 

129,740

 

 

 

 

 

 

 

 

 

129,745

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,849,754

 

 

 

 

 

 

 

 

 

1,849,754

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102,304

 

 

 

102,304

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(26,528,653

)

 

 

 

 

 

(26,528,653

)

Balance at June 30, 2023

 

 

4,422,741

 

 

$

442

 

 

$

428,153,252

 

 

$

(418,609,320

)

 

$

(23,788

)

 

$

9,520,586

 

 

 

 

For the Six Months Ended June 30, 2022

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
 Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at December 31, 2021

 

 

4,169,631

 

 

$

416

 

 

$

418,903,820

 

 

$

(349,733,764

)

 

$

(62,445

)

 

$

69,108,027

 

Issuance of common stock, net of issuance costs of $0

 

 

1,250

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,104,835

 

 

 

 

 

 

 

 

 

3,104,835

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(56,875

)

 

 

(56,875

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(22,686,130

)

 

 

 

 

 

(22,686,130

)

Balance at June 30, 2022

 

 

4,170,881

 

 

$

417

 

 

$

422,008,655

 

 

$

(372,419,894

)

 

$

(119,320

)

 

$

49,469,858

 

 

See notes to the unaudited condensed consolidated financial statements.

-6-


Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(26,528,653

)

 

$

(22,686,130

)

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

 

 

 

 

 

 

Stock-based compensation expense

 

 

1,849,754

 

 

 

3,104,835

 

Depreciation and amortization

 

 

340,213

 

 

 

387,803

 

Net amortization on (discount) premium of investments

 

 

(278,677

)

 

 

661,398

 

(Gain) loss on foreign exchange

 

 

(4,388

)

 

 

631,213

 

Amortization of debt discount

 

 

430,367

 

 

 

357,464

 

Realized loss on investments

 

 

1,528

 

 

 

118,671

 

Loss on sale of property and equipment

 

 

 

 

 

21,235

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

(Increase) decrease in prepaid expenses and other current assets

 

 

(698,679

)

 

 

622,737

 

Increase in other assets

 

 

(56,598

)

 

 

(57,780

)

Decrease in operating lease right of use asset

 

 

397,836

 

 

 

351,033

 

Increase in other long-term liabilities

 

 

2,500,000

 

 

 

 

Decrease in accounts payable

 

 

(663,843

)

 

 

(426,868

)

Increase (decrease) in accrued expenses

 

 

419,551

 

 

 

(5,376,890

)

Decrease in operating lease liabilities

 

 

(623,648

)

 

 

(553,125

)

Net cash used in operating activities

 

 

(22,915,237

)