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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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, 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: 001-31326

 

ELOXX PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

84-1368850

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

 

480 Arsenal Way

Watertown, Massachusetts 02472

(Address of principal executive offices) (Zip Code)

781-577-5300

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

ELOX

The 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, 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  

 

On November 3, 2021, the registrant had 86,252,365 shares of common stock, $0.01 par value per share, outstanding.

 

 


ELOXX PHARMACEUTICALS, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

Special Note Regarding Forward-looking Statements

 

3

 

 

 

 

 

 

 

Market and Industry Data

 

4

 

 

 

 

 

 

 

 

 

 

 

 

Risk Factor Summary

 

5

 

 

 

 

 

 

 

PART I. FINANCIAL INFORMATION

 

7

 

 

 

 

 

Item 1.

 

Condensed Consolidated Financial Statements (unaudited)

 

7

 

 

 

 

 

 

 

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

 

7

 

 

 

 

 

 

 

Statements of Operations and Comprehensive Loss for the Three and Nine Months ended September 30, 2021 and 2020

 

8

 

 

 

 

 

 

 

Statements of Cash Flows for the Nine Months ended September 30, 2021 and 2020

 

9

 

 

 

 

 

 

 

Statements of Stockholders’ Equity for the Three and Nine Months ended September 30, 2021 and 2020

 

10

 

 

 

 

 

 

 

Notes to Financial Statements

 

12

 

 

 

 

 

Item 2.

 

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

 

22

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

28

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

28

 

 

 

 

 

 

 

PART II. OTHER INFORMATION

 

29

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

29

 

 

 

 

 

Item 1A.

 

Risk Factors

 

29

 

 

 

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

55

 

 

 

 

 

 

 

SIGNATURES

 

58

 

 

2


Special Note Regarding Forward-Looking Statements

Eloxx Pharmaceuticals, Inc., together with its subsidiaries, is collectively referred to herein as “we,” “our,” “us,” “Eloxx” or the “Company”. Hyperlinks and web addresses are provided as a convenience and for informational purposes only. Eloxx bears no responsibility for the security or content of external websites.

This Quarterly Report on Form 10-Q, or this Report, and information incorporated herein, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of present and historical facts contained in this Report, including without limitation, statements regarding expected timing of trials and results from our clinical program, strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “would,” “should,” “expect,” “explore,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seeks,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance, or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part I. Item 1A. “Risk Factors” and Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These risks and uncertainties include, but are not limited to:

 

risks related to our dependence on our lead product candidate, ELX-02 and our ability to progress any of our product candidates in preclinical or clinical trials;

 

the length and expense of preclinical and clinical trial development and the uncertain outcomes from such trials;

 

risk related to doing business with collaborators, healthcare professionals, principal investigators, consultants, vendors, customers, and third-party payors;

 

risks that our product candidates may cause adverse events or other properties that delay or prevent regulatory approval or market acceptance;

 

risks related to the scope, rate and progress of our preclinical studies and clinical trials and other research and development activities;

 

risks related to patient recruitment and enrollment in our clinical trials;

 

the impact of the global COVID-19 pandemic or other public health epidemics and other factors beyond our control on our clinical trials, operations, vendors, suppliers and employees;

 

risks related to regulatory approvals and other requirements applicable to our product candidates;

 

risks related to our ability to obtain the capital necessary to fund our operations;

 

risks relating to the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;

 

risks related to our ability to obtain adequate funding to finance our operations;

 

our and our stockholders’ ability to realize benefits from our strategic initiatives, including our acquisition of Zikani Therapeutics, Inc. in April 2021; and

 

general business conditions, regulatory environment, competition and market for our products.

Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risks and uncertainties.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. You should not rely upon forward-looking statements as

3


predictions of future events. All forward-looking statements speak only as of the date of this Report. Unless required by law, we will not undertake and we specifically disclaim any obligation to release publicly the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of events, whether or not anticipated. In that respect, we wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made.

MARKET AND INDUSTRY DATA

This Report and the other documents incorporated herein by reference include statistical and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third parties. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. While we believe these industry publications and third-party research, surveys and studies are reliable, we have not independently verified such data and disclaim responsibility for its content.


4


RISK FACTOR SUMMARY

The following is a summary of the principal risks of an investment in our common stock. This summary does not list all the risks that we face. Additional discussion of the risks summarized below follow directly under the heading “Risk Factors” and should be carefully considered, together with other information in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 12, 2021 and our other filings with the SEC before making an investment decision regarding our common stock.

Risks Related to Drug Discovery, Development, Regulatory Approval and Commercialization

 

The success of our lead product candidate, ELX-02, is critical to our business. If ELX-02 fails during development, it may adversely impact the commercial viability of ELX-02 and have a material adverse effect on our business.

 

Positive results from preclinical testing of ELX-02 are not necessarily predictive of the results of clinical trials of ELX-02. If we cannot achieve positive results in our clinical trials, we may be unable to successfully develop, obtain regulatory approval for and commercialize ELX-02.

 

Our product candidates, including ELX-02, may cause adverse events or have other properties that could delay or prevent their regulatory approval or limit the scope of any approved label or market acceptance.

 

Our clinical trials are costly, lengthy, time-consuming and difficult to design and implement, may result in unforeseen costs and could be delayed or terminated, which may have a material adverse effect on our business, results of operations and financial condition.

 

We may find it difficult to recruit and enroll patients in our clinical trials, which could cause significant delays in the completion of such trials.

 

Because our clinical trials depend upon third-party researchers, scientists and consultants, the results of our clinical trials and such research activities are subject to delays and other risks that are beyond our control, which could impair our clinical development programs.

 

We are subject to extensive governmental regulation including the requirements of the U.S. Food and Drug Administration (“FDA”) and comparable foreign regulatory authorities for development and approval of our product candidates before they can be marketed.

 

We may not obtain the necessary FDA, European Medicines Agency (or “EMA”) or other worldwide regulatory approvals to commercialize our product candidates in a timely manner, if at all, which would have a material adverse effect on our business, results of operations and financial condition.

 

If we are unable to establish sales and marketing capabilities or enter into agreements with third parties to market and sell any of our product candidates that obtain regulatory approval, we may be unable to generate any revenue.

 

Even though we have received orphan drug designation from the FDA for ELX-02 for the treatment of cystic fibrosis, cystinosis, MPS I, and Rett syndrome, we may not be able to obtain orphan drug marketing exclusivity for ELX-02 or any of our other potential product candidates for other indications.

 

Developments by competitors may render our products or technologies obsolete or non-competitive which would have a material adverse effect on our business, results of operations and financial condition.

Risks Related to Our Financial Position and Need for Additional Capital

 

We have incurred significant operating losses since our inception and anticipate that we will continue to incur substantial operating losses for the foreseeable future. We may never achieve or maintain profitability.

 

We will need substantial additional funding. If we are unable to raise capital when needed, we would be forced to delay, reduce or eliminate our product development programs or commercialization efforts.

 

Raising additional capital will cause dilution to our stockholders, and may restrict our operations or require us to relinquish rights to our technologies or product candidates.

5


Risks Related to Our Business and Operations

 

We may seek to expand our business through strategic initiatives. Our efforts to identify opportunities or complete transactions that satisfy our strategic criteria may not be successful, and we may not realize the anticipated benefits of any completed acquisition, collaboration or other strategic transaction.

 

Changes in healthcare laws and implementing regulations, as well as changes in healthcare policy, may affect coverage and reimbursement of our product candidates in ways that we cannot currently predict, and these changes could adversely affect our business and financial condition.

 

Our business could be adversely affected by the effects of widespread public health epidemics and other factors beyond our control.

 

Security breaches, cyber-attacks, or other disruptions could expose us to liability and affect our business and reputation.

 

We rely on third parties to conduct some or all aspects of our product manufacturing, protocol development, research and preclinical and clinical testing, and these third parties may not perform satisfactorily or may experience delays and disruptions that may negatively impact our operations.

 

Our future success depends on our ability to retain key employees, consultants and advisors and to attract, retain and motivate qualified personnel.

Risks Related to Intellectual Property

 

If we fail to adequately protect or enforce our intellectual property rights or secure rights to third party patents, the value of our intellectual property rights would diminish, and our business, competitive position and results of operations would suffer.

 

If we infringe the rights of third parties, we could be prevented from selling products, forced to pay damages and required to defend against litigation which could result in substantial costs and may have a material adverse effect on our business, results of operations and financial condition.

 

We rely on confidentiality agreements that could be breached and may be difficult to enforce which could have a material adverse effect on our business and competitive position.

 

If we cannot meet requirements under our license agreement, we could lose the rights to our product candidates, which could have a material adverse effect on our business.

Risks Related to Our Regional Operations

 

Potential political and economic instability in regions where we conduct business may adversely affect our results of operations.

 

We received Israeli government grants for our research and development activities and programs. The terms of such grants may require us, in the future, to pay royalties and under certain circumstances, penalties in addition to payment of royalties.

General Risk Factors

 

Our stock price may be volatile and may or may not reflect our operations or value, and therefore purchasers of our common stock could incur substantial losses.

 

Maintaining and improving our financial controls and the requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain qualified board members.

 

Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.

 

Our directors, executive officers, principal stockholders and affiliated entities own a significant percentage of our capital stock, and they may make decisions that an investor may not consider to be in the best interests of our stockholders.

 

Future sales and issuances of our securities or rights to purchase securities, including pursuant to our equity incentive plans, could result in additional dilution of the percentage ownership of our stockholders and could cause the prices of our securities to decline.

 

6


PART I. FINANCIAL INFORMATION

 

Item 1. Condensed Consolidated Financial Information

ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

September 30,

2021

 

 

December 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,432

 

 

$

24,668

 

Restricted cash

 

 

246

 

 

 

56

 

Prepaid expenses and other current assets

 

 

864

 

 

 

1,169

 

Total current assets

 

 

53,542

 

 

 

25,893

 

Property and equipment, net

 

 

224

 

 

 

133

 

Operating lease right-of-use assets

 

 

1,617

 

 

 

421

 

Other long-term assets

 

 

 

 

 

30

 

Total assets

 

$

55,383

 

 

$

26,477

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,509

 

 

$

481

 

Accrued expenses

 

 

2,611

 

 

 

2,924

 

Current portion of long-term debt

 

 

 

 

 

5,239

 

Advances from collaboration partners

 

 

3,723

 

 

 

805

 

Current portion of operating lease liabilities

 

 

667

 

 

 

389

 

Total current liabilities

 

 

9,510

 

 

 

9,838

 

Long-term debt

 

 

11,911

 

 

 

6,376

 

Operating lease liabilities

 

 

964

 

 

 

33

 

Total liabilities

 

 

22,385

 

 

 

16,247

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no

   shares issued or outstanding as of September 30, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock, $0.01 par value per share, 500,000,000 shares authorized,

   86,525,516 and 40,350,922 shares issued and 86,252,365 and

   40,157,187 shares outstanding as of September 30, 2021 and

   December 31, 2020, respectively

 

 

863

 

 

 

404

 

Common stock in treasury, at cost, 273,151 and 193,735 shares as of

   September 30, 2021 and December 31, 2020, respectively

 

 

(2,066

)

 

 

(1,828

)

Additional paid-in capital

 

 

260,434

 

 

 

183,250

 

Accumulated deficit

 

 

(226,233

)

 

 

(171,596

)

Total stockholders’ equity

 

 

32,998

 

 

 

10,230

 

Total liabilities and stockholders’ equity

 

$

55,383

 

 

$

26,477

 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

7


ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

5,210

 

 

$

3,445

 

 

$

14,987

 

 

$

11,950

 

General and administrative

 

 

5,035

 

 

 

2,851

 

 

 

16,731

 

 

 

11,705

 

In process research and development

 

 

 

 

 

 

 

 

22,670

 

 

 

 

Restructuring charges

 

 

 

 

 

 

 

 

 

 

 

3,994

 

Total operating expenses

 

 

10,245

 

 

 

6,296

 

 

 

54,388

 

 

 

27,649

 

Loss from operations

 

 

(10,245

)

 

 

(6,296

)

 

 

(54,388

)

 

 

(27,649

)

Other income (expense), net

 

 

360

 

 

 

(321

)

 

 

(249

)

 

 

(801

)

Net loss

 

$

(9,885

)

 

$

(6,617

)

 

$

(54,637

)

 

$

(28,450

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.11

)

 

$

(0.16

)

 

$

(0.85

)

 

$

(0.71

)

Weighted average number of shares of common stock used in

   computing net loss per share, basic and diluted

 

 

86,208,754

 

 

 

40,142,178

 

 

 

64,428,187

 

 

 

40,115,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(9,885

)

 

$

(6,617

)

 

$

(54,637

)

 

$

(28,450

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain on available-for-sale securities

 

 

 

 

 

(13

)

 

 

 

 

 

 

(18

)

Comprehensive loss

 

$

(9,885

)

 

$

(6,630

)

 

$

(54,637

)

 

$

(28,468

)

 

See accompanying notes to unaudited condensed consolidated financial statements

 

 

 

8


ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Nine Months Ended

September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(54,637

)

 

$

(28,450

)

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

 

 

 

 

 

 

 

 

Acquired in-process research and development

 

 

22,670

 

 

 

 

Stock-based compensation

 

 

7,567

 

 

 

7,385

 

Depreciation

 

 

86

 

 

 

52

 

Amortization of operating lease right-of-use asset

 

 

672

 

 

 

373

 

Amortization of debt discount

 

 

298

 

 

 

438

 

Amortization, net of premiums and discounts on investments

 

 

 

 

 

15

 

Loss on sales and disposals of property and equipment

 

 

84

 

 

 

 

Gain on extinguishment of debt

 

 

(808

)

 

 

 

Loss on extinguishment of debt

 

 

268

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

631

 

 

 

(137

)

Accounts payable

 

 

410

 

 

 

(1,233

)

Accrued expenses

 

 

(649

)

 

 

(1,569

)

Merger related costs paid

 

 

(1,003

)

 

 

-

 

Operating lease liabilities

 

 

(659

)

 

 

(372

)

Net cash used in operating activities

 

 

(25,070

)

 

 

(23,498

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash acquired in merger transaction

 

 

2,145

 

 

 

 

Purchases of property and equipment

 

 

(69

)

 

 

 

Proceeds from maturities of marketable securities

 

 

 

 

 

33,750

 

Cash received from long-term deposits

 

 

 

 

 

42

 

Net cash provided by investing activities

 

 

2,076

 

 

 

33,792

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from underwritten public offerings, net of issuance costs

 

 

47,718

 

 

 

 

Proceeds from debt financing obligation

 

 

11,910

 

 

 

797

 

Repayment of term loan principal

 

 

(11,383

)

 

 

(3,333

)

Payment for settlement of taxes upon vesting of restricted stock units

 

 

(238

)

 

 

(122

)

Proceeds from advances from collaboration partners

 

 

2,918

 

 

 

402

 

Proceeds from exercises of stock options

 

 

23

 

 

 

70

 

Net cash provided by (used in) financing activities

 

 

50,948

 

 

 

(2,186

)

Increase in cash, cash equivalents and restricted cash

 

 

27,954

 

 

 

8,108

 

Cash, cash equivalents and restricted cash at the beginning of the period

 

 

24,724

 

 

 

22,536

 

Cash, cash equivalents and restricted cash at the end of the period

 

$

52,678

 

 

$

30,644

 

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash to condensed

   consolidated balance sheets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,432

 

 

$

30,592

 

Restricted cash

 

 

246

 

 

 

52

 

Total cash, cash equivalents and restricted cash

 

$

52,678

 

 

$

30,644

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow activities:

 

 

 

 

 

 

 

 

Issuance of common stock in merger transaction

 

$

22,335

 

 

$

 

Cash paid for interest

 

$

415

 

 

$

665

 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

9


ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except share data)

 

 

 

Common stock

 

 

 

 

 

 

Treasury stock

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

paid-in

capital

 

 

Shares

 

 

Amount

 

 

Accumulated

deficit

 

 

Total

stockholders'

equity

 

Balance at December 31, 2020

 

 

40,157,187

 

 

$

404

 

 

$

183,250

 

 

 

(193,735

)

 

$

(1,828

)

 

$

(171,596

)

 

$

10,230

 

Vesting of restricted stock units

 

 

57,687

 

 

 

 

 

 

-

 

 

 

(23,883

)

 

 

(94

)

 

 

 

 

 

(94

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,308

 

 

 

 

 

 

 

 

 

 

 

 

1,308

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,694

)

 

 

(8,694

)

Balance at March 31, 2021

 

 

40,214,874

 

 

$

404

 

 

$

184,558

 

 

 

(217,618

)

 

$

(1,922

)

 

$

(180,290

)

 

$

2,750

 

Exercise of stock options

 

 

3,525

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Vesting of restricted stock units

 

 

53,224

 

 

 

 

 

 

 

 

 

(43,970

)

 

 

(143

)

 

 

 

 

 

(143

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,035

 

 

 

 

 

 

 

 

 

 

 

 

4,035

 

Issuance of common stock in connection with merger

 

 

7,596,810

 

 

 

76

 

 

 

22,259

 

 

 

 

 

 

 

 

 

 

 

 

22,335

 

Issuance of shares upon public offering

 

 

38,333,334

 

 

 

383

 

 

 

47,335

 

 

 

 

 

 

 

 

 

 

 

 

47,718

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,058

)

 

 

(36,058

)

Balance at June 30, 2021

 

 

86,201,767

 

 

$

863

 

 

$

258,193

 

 

 

(261,588

)

 

$

(2,065

)

 

$

(216,348

)

 

$

40,643

 

Exercise of stock options

 

 

19,966

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

17

 

Vesting of restricted stock units

 

 

30,632

 

 

 

 

 

 

 

 

 

(11,563

)

 

 

(1

)

 

 

 

 

 

(1

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,224

 

 

 

 

 

 

 

 

 

 

 

 

2,224

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,885

)

 

 

(9,885

)

Balance at September 30, 2021

 

 

86,252,365

 

 

$

863

 

 

$

260,434

 

 

 

(273,151

)

 

$

(2,066

)

 

$

(226,233

)

 

$

32,998

 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

 

10


ELOXX PHARMACEUTICALS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except share data)

 

 

Common stock

 

 

 

 

 

 

 

 

 

 

Treasury stock

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

paid-in

capital

 

 

Accumulated

other

comprehensive

income

 

 

Shares

 

 

Amount

 

 

Accumulated

deficit

 

 

Total

stockholders'

equity

 

Balance at December 31, 2019

 

 

40,030,763

 

 

$

402

 

 

$

174,515

 

 

$

18

 

 

 

(155,706

)

 

$

(1,703

)

 

$

(137,019

)

 

$

36,213

 

Exercise of stock options

 

 

10,636

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

Vesting of restricted stock units

 

 

84,055

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

(34,874

)

 

 

(116

)

 

 

 

 

 

(116

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,995

 

Change in unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,946

)

 

 

(13,946

)

Balance at March 31, 2020

 

 

40,125,454

 

 

$

403

 

 

$

178,573