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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 September 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:

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

 

Nasdaq Global 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 4, 2022, 125,280,881 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 September 30, 2022

 

TABLE OF CONTENTS

 

 

Page

PART I

 

 

 

FINANCIAL INFORMATION

 

 

 

1. Condensed Consolidated Financial Statements

3

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

3

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months ended September 30, 2022 and 2021 (unaudited)

4

Condensed Consolidated Statement of Stockholders’ Equity for the Three and Nine Months ended September 30, 2022 and 2021 (unaudited)

5

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (unaudited)

7

Notes to Unaudited 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

33

4. Controls and Procedures

33

 

 

PART II

 

 

 

OTHER INFORMATION

 

 

 

1. Legal Proceedings

34

1A. Risk Factors

34

2. Unregistered Sales of Equity Securities and Use of Proceeds

34

3. Defaults Upon Senior Securities

34

4. Mine Safety Disclosures

34

5. Other Information

34

6. Exhibits

35

 

-2-


 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Balance Sheets

 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,443,645

 

 

$

25,006,632

 

Investments

 

 

53,785,559

 

 

 

72,640,520

 

Restricted cash

 

 

192,475

 

 

 

192,475

 

Prepaid expenses and other current assets

 

 

926,161

 

 

 

2,365,010

 

Total current assets

 

 

67,347,840

 

 

 

100,204,637

 

Restricted cash

 

 

477,425

 

 

 

477,425

 

Property and equipment, net

 

 

1,798,212

 

 

 

2,392,696

 

Operating lease right of use assets

 

 

4,074,074

 

 

 

4,609,110

 

Other assets

 

 

133,055

 

 

 

46,385

 

Total assets

 

$

73,830,606

 

 

$

107,730,253

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Notes payable

 

$

 

 

$

767,938

 

Accounts payable

 

 

1,374,220

 

 

 

1,782,277

 

Accrued expenses

 

 

4,833,839

 

 

 

10,093,312

 

Derivative liability

 

 

133,710

 

 

 

133,710

 

Operating lease liabilities, current

 

 

1,243,802

 

 

 

1,136,948

 

Current portion of long-term debt

 

 

9,883,638

 

 

 

3,093,344

 

Total current liabilities

 

 

17,469,209

 

 

 

17,007,529

 

Long-term debt, net of debt discount

 

 

9,385,847

 

 

 

15,636,275

 

Other long-term liabilities

 

 

22,205

 

 

 

22,205

 

Operating lease liabilities, noncurrent

 

 

5,007,236

 

 

 

5,956,217

 

Total liabilities

 

 

31,884,497

 

 

 

38,622,226

 

Stockholders’ equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares
   issued and outstanding at September 30, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value; 300,000,000 shares authorized,
   
125,280,881 and 125,230,881 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

12,528

 

 

 

12,523

 

Additional paid-in capital

 

 

423,342,069

 

 

 

418,891,713

 

Accumulated deficit

 

 

(381,201,614

)

 

 

(349,733,764

)

Accumulated other comprehensive loss

 

 

(206,874

)

 

 

(62,445

)

Total stockholders’ equity

 

 

41,946,109

 

 

 

69,108,027

 

Total liabilities and stockholders’ equity

 

$

73,830,606

 

 

$

107,730,253

 

 

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 September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue from awards

 

$

 

 

$

97,323

 

 

$

 

 

$

881,705

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,108,190

 

 

 

8,695,641

 

 

 

9,894,068

 

 

 

30,681,684

 

General and administrative

 

 

4,073,266

 

 

 

5,277,090

 

 

 

14,144,557

 

 

 

16,190,684

 

Litigation Settlement

 

 

 

 

 

 

 

 

5,000,000

 

 

 

 

Total operating expenses

 

 

8,181,456

 

 

 

13,972,731

 

 

 

29,038,625

 

 

 

46,872,368

 

Operating loss

 

 

(8,181,456

)

 

 

(13,875,408

)

 

 

(29,038,625

)

 

 

(45,990,663

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

77,712

 

 

 

12,033,031

 

 

 

(324,322

)

 

 

11,790,328

 

Interest income (expense), net

 

 

(541,889

)

 

 

(391,867

)

 

 

(1,491,137

)

 

 

(1,439,587

)

Change in fair value of derivative liability

 

 

 

 

 

472,143

 

 

 

 

 

 

670,143

 

Foreign currency exchange gain (loss), net

 

 

(136,087

)

 

 

(414,048

)

 

 

(613,766

)

 

 

(409,914

)

Other income (expense), net

 

 

(600,264

)

 

 

11,699,259

 

 

 

(2,429,225

)

 

 

10,610,970

 

Net loss

 

$

(8,781,720

)

 

$

(2,176,149

)

 

$

(31,467,850

)

 

$

(35,379,693

)

Net loss per share, basic and diluted

 

$

(0.07

)

 

$

(0.02

)

 

$

(0.25

)

 

$

(0.29

)

Weighted average number of common shares outstanding, basic and diluted

 

 

125,268,381

 

 

 

125,209,985

 

 

 

125,255,927

 

 

 

122,234,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(8,781,720

)

 

$

(2,176,149

)

 

$

(31,467,850

)

 

$

(35,379,693

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain (loss) on marketable debt securities

 

 

(87,554

)

 

 

(3,513

)

 

 

(144,429

)

 

 

(8,967

)

Total other comprehensive income (loss)

 

 

(87,554

)

 

 

(3,513

)

 

 

(144,429

)

 

 

(8,967

)

Total comprehensive loss

 

$

(8,869,274

)

 

$

(2,179,662

)

 

$

(31,612,279

)

 

$

(35,388,660

)

 

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 September 30, 2022

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at June 30, 2022

 

 

125,268,381

 

 

$

12,527

 

 

$

421,996,544

 

 

$

(372,419,894

)

 

$

(119,320

)

 

$

49,469,857

 

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

 

 

12,500

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,345,526

 

 

 

 

 

 

 

 

 

1,345,526

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(87,554

)

 

 

(87,554

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(8,781,720

)

 

 

 

 

 

(8,781,720

)

Balance at September 30, 2022

 

 

125,280,881

 

 

$

12,528

 

 

$

423,342,069

 

 

$

(381,201,614

)

 

$

(206,874

)

 

$

41,946,109

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at June 30, 2021

 

 

125,083,006

 

 

$

12,508

 

 

$

414,249,029

 

 

$

(337,296,882

)

 

$

(5,454

)

 

$

76,959,201

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,599,247

 

 

 

 

 

 

 

 

 

2,599,247

 

Issuance of common stock upon exercise of stock options

 

 

147,875

 

 

 

15

 

 

 

249,985

 

 

 

 

 

 

 

 

 

250,000

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,513

)

 

 

(3,513

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(2,176,149

)

 

 

 

 

 

(2,176,149

)

Balance at September 30, 2021

 

 

125,230,881

 

 

$

12,523

 

 

$

417,098,261

 

 

$

(339,473,031

)

 

$

(8,967

)

 

$

77,628,786

 

 

See notes to the unaudited condensed consolidated financial statements.

 

-5-


 

 

 

 

For the Nine Months Ended September 30, 2022

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at December 31, 2021

 

 

125,230,881

 

 

$

12,523

 

 

$

418,891,713

 

 

$

(349,733,764

)

 

$

(62,445

)

 

$

69,108,027

 

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

 

 

50,000

 

 

 

5

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,450,361

 

 

 

 

 

 

 

 

 

4,450,361

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(144,429

)

 

 

(144,429

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(31,467,850

)

 

 

 

 

 

(31,467,850

)

Balance at September 30, 2022

 

 

125,280,881

 

 

$

12,528

 

 

$

423,342,069

 

 

$

(381,201,614

)

 

$

(206,874

)

 

$

41,946,109

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
 Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance at December 31, 2020

 

 

98,852,696

 

 

$

9,885

 

 

$

349,358,378

 

 

$

(304,093,338

)

 

$

 

 

$

45,274,925

 

Issuance of common stock, net of issuance costs of $1,820,437

 

 

25,539,585

 

 

 

2,554

 

 

 

59,108,247

 

 

 

 

 

 

 

 

 

59,110,801

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

7,686,921

 

 

 

 

 

 

 

 

 

7,686,921

 

Issuance of common stock upon exercise of stock options

 

 

838,600

 

 

 

84

 

 

 

944,715

 

 

 

 

 

 

 

 

 

944,799

 

Change in unrealized gain (loss) on marketable debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,967

)

 

 

(8,967

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(35,379,693

)

 

 

 

 

 

(35,379,693

)

Balance at September 30, 2021

 

 

125,230,881

 

 

$

12,523

 

 

$

417,098,261

 

 

$

(339,473,031

)

 

$

(8,967

)

 

$

77,628,786

 

 

See notes to the unaudited condensed consolidated financial statements.

-6-


 

Corbus Pharmaceuticals Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(31,467,850

)

 

$

(35,379,693

)

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

 

 

 

 

 

 

Stock-based compensation expense

 

 

4,450,361

 

 

 

7,686,921

 

Depreciation and amortization

 

 

578,598

 

 

 

792,132

 

Net amortization on premium of investments

 

 

232,844

 

 

 

606,078

 

Loss on foreign exchange

 

 

829,235

 

 

 

493,722

 

Operating lease right of use asset amortization

 

 

535,037

 

 

 

361,327

 

Amortization of debt discount

 

 

539,867

 

 

 

471,954

 

Realized loss on investments

 

 

177,939

 

 

 

521,497

 

Change in fair value of derivative liability

 

 

 

 

 

(670,143

)

Loss on sale of property and equipment

 

 

21,235

 

 

 

9,099

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Decrease in prepaid expenses

 

 

1,438,849

 

 

 

1,601,003

 

Increase in contract asset