rptx-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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, 2020

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: 001-39335

 

Repare Therapeutics Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Québec

Not applicable

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

7210 Frederick-Banting, Suite 100

St-Laurent, Québec, Canada

H4S 2A1

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (857) 412-7018

 

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

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common shares, no par value

 

RPTX

 

The Nasdaq Stock Market LLC

 

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  

As of November 12, 2020, there were 36,765,013 shares of the registrant’s common stock, no par value per share, outstanding.

 

 

 


Table of Contents

 

 

 

Page

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

1

SUMMARY RISK FACTORS

2

PART I.

FINANCIAL INFORMATION

3

Item 1.

Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

4

 

Condensed Consolidated Statements of Convertible Preferred Shares and Shareholders’ Equity (Deficit)

5

 

Condensed Consolidated Statements of Cash Flows

6

 

Notes to Unaudited Condensed Consolidated Financial Statements

7

Item 2.

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

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

26

PART II.

OTHER INFORMATION

27

Item 1.

Legal Proceedings

27

Item 1A.

Risk Factors

27

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

75

Item 3.

Defaults Upon Senior Securities

75

Item 4.

Mine Safety Disclosures

75

Item 5.

Other Information

75

Item 6.

Exhibits

76

Signatures

77

 

 

 


 

i


 

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future financial condition, future operations, research and development costs, plans and objectives of management, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “positioned,” “potential,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. Although we believe that we have a reasonable basis for each forward-looking statement contained in this Quarterly Report on Form 10-Q, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:

 

the initiation, timing, progress and results of our current and future preclinical studies and clinical trials and related preparatory work and the period during which the results of the trials will become available, as well as our research and development programs;

 

our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

 

our ability to obtain regulatory approval of RP-3500 and any of our current and future product candidates that we develop;

 

our ability to identify and develop additional product candidates using our SNIPRx platform;

 

business disruptions affecting the initiation, patient enrollment, development and operation of our clinical trials, including a public health emergency or pandemic, such as the coronavirus disease, or COVID-19, pandemic;

 

the unexpected impact of the COVID-19 pandemic on our operations, the continuity of our business, including our preclinical studies and clinical trials, general economic conditions and ability to raise additional capital;

 

our ability to enroll patients in clinical trials, to timely and successfully complete those trials and to receive necessary regulatory approvals;

 

the timing of completion of enrollment and availability of data from our current preclinical studies and clinical trials, including our Phase 1/2 clinical trial of RP-3500;

 

the expected timing of filings with regulatory authorities for any product candidates that we develop;

 

our expectations regarding the potential market size and the rate and degree of market acceptance for any product candidates that we develop;

 

the effects of competition with respect to RP-3500 or any of our other current or future product candidates, as well as innovations by current and future competitors in our industry;

 

our ability to fund our working capital requirements;

 

our intellectual property position, including the scope of protection we are able to establish, maintain and enforce for intellectual property rights covering our product candidates;

 

our financial performance and our ability to effectively manage our anticipated growth;

 

our ability to obtain additional funding for our operations; and

 

other risks and uncertainties, including those listed under the section titled “Risk Factors” in this Quarterly Report.

 

Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth, and involve known and unknown risks, uncertainties and other factors including, without limitation, risks, uncertainties and assumptions regarding the impact of the COVID-19 pandemic on our business, operations, strategy, goals and anticipated timelines, our ongoing and planned preclinical activities, our ability to initiate, enroll, conduct or complete ongoing and planned clinical trials, our timelines for regulatory submissions and our financial position that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You are urged to carefully review the disclosures we make concerning these risks and other factors that may affect our business and operating results in this Quarterly Report on Form 10-Q. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. We do not intend, and undertake no obligation, to update any forward-looking information to reflect events or circumstances

1


 

SUMMARY RISK FACTORS

Investing in our common shares involves numerous risks, including the risks described in “Part II—Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q. Below are some of our principal risks, any one of which could materially adversely affect our business, financial condition, results of operations, and prospects:

 

Our limited operating history may make it difficult for you to evaluate the success of our business to date and to assess our future viability.

 

We will require substantial additional funding to finance our operations. If we are unable to raise capital when needed, we could be forced to delay, reduce or terminate certain of our product development programs or other operations.

 

We are very early in our development efforts. If we are unable to advance RP-3500 or any of our other product candidates into and through clinical development, obtain regulatory approval and ultimately commercialize RP-3500 or any of our other product candidates, or experience significant delays in doing so, our business will be materially harmed.

 

Our business substantially depends upon the successful development of product candidates generated through the application of our SNIPRx platform, and in particular, our lead product candidate, RP-3500. If we are unable to obtain regulatory approval for, and successfully commercialize, products developed through the application of our SNIPRx platform, our business may be materially harmed.

 

The effects of health epidemics, including the recent COVID-19 coronavirus pandemic, in regions where we, or the third parties on which we rely, have business operations could adversely impact our business, including our preclinical studies and clinical trials. The COVID-19 pandemic could materially affect our operations, including at our offices in Montréal and in the Boston Metro Area, which are currently subject to executive orders, and at our clinical trial sites, as well as the business or operations of our CROs or other third parties with whom we conduct business.

 

The successful development of targeted therapeutics, including our portfolio of synthetic lethality small molecule inhibitors, as well as any related diagnostics, is highly uncertain.

 

The regulatory approval processes of the FDA and comparable foreign regulatory authorities are lengthy, time consuming and inherently unpredictable, and if we are ultimately unable to obtain regulatory approval for our product candidates, on a timely basis or at all, our business will be substantially harmed.

 

Synthetic lethality represents an emerging class of precision medicine targets, and negative perceptions of the efficacy, safety or tolerability of this class of targets, including any that we develop, could adversely affect our ability to conduct our business, advance our product candidates or obtain regulatory approvals.

 

We may not be successful in applying our SNIPRx platform to discover synthetic lethality targets with therapeutic and commercial potential or in the discovery and development of commercially viable product candidates for us or our collaborators.

 

Difficulty in enrolling patients could delay or prevent clinical trials of our product candidates. We may find it difficult to enroll patients in our open-label Phase 1/2 clinical trial for RP-3500 with the genomic alterations that RP-3500 is designed to target.

 

We face substantial competition, which may result in others developing or commercializing drugs before or more successfully than us.

 

We rely on third parties to supply and manufacture our product candidates, and we expect to continue to rely on third parties to manufacture our products, if approved. The development of such product candidates and the commercialization of any products, if approved, could be stopped, delayed or made less profitable if any such third party fails to provide us with sufficient quantities of product candidates or products or fails to do so at acceptable quality levels or prices or fails to maintain or achieve satisfactory regulatory compliance.

 

Our success depends in part on our ability to obtain intellectual property rights for our proprietary technologies and product candidates, as well as our ability to protect our intellectual property. It is difficult and costly to protect our proprietary rights and technology, and we may not be able to ensure their protection.

 

2


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Repare Therapeutics Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands of U.S. dollars, except share data)

 

 

 

As of

September 30,

 

 

As of

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash

 

$

347,872

 

 

$

94,797

 

Research and development tax credits receivable

 

 

1,637

 

 

 

1,080

 

Other receivables

 

 

3,232

 

 

 

1,976

 

Prepaid expenses and other current assets

 

 

8,524

 

 

 

719

 

Total current assets

 

 

361,265

 

 

 

98,572

 

Property and equipment, net

 

 

3,246

 

 

 

2,390

 

Restricted cash

 

 

203

 

 

 

208

 

Operating lease right-of-use assets

 

 

5,022

 

 

 

1,034

 

Other assets

 

 

288

 

 

 

359

 

Deferred tax assets

 

 

218

 

 

 

132

 

TOTAL ASSETS

 

$

370,242

 

 

$

102,695

 

LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’

   EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,843

 

 

$

2,127

 

Accrued expenses and other current liabilities

 

 

4,923

 

 

 

1,276

 

Operating lease liability, current portion

 

 

794

 

 

 

625

 

Deferred revenue, current portion

 

 

2,150

 

 

 

 

Income tax payable

 

 

483

 

 

 

218

 

Total current liabilities

 

 

10,193

 

 

 

4,246

 

Operating lease liability, net of current portion

 

 

3,259

 

 

 

439

 

Deferred revenue, net of current portion

 

 

55,992

 

 

 

8,142

 

TOTAL LIABILITIES

 

 

69,444

 

 

 

12,827

 

Series A convertible preferred shares, no par value per share; 0 shares and unlimited shares

   authorized as of September 30, 2020 and December 31, 2019, respectively; 0 shares and

   11,090,135 shares issued and outstanding as of September 30, 2020 and December 31, 2019,

   respectively; liquidation and redemption value of $0 and $52,750 as of September 30, 2020

   and December 31, 2019, respectively

 

 

 

 

 

53,749

 

Series B convertible preferred shares, no par value per share; 0 shares and unlimited shares

   authorized as of September 30, 2020 and December 31, 2019, respectively; 0 shares and

   10,468,258 shares issued and outstanding as of September 30, 2020 and December 31, 2019,

   respectively; liquidation and redemption value of $0 and $82,496 as of September 30, 2020

   and December 31, 2019, respectively

 

 

 

 

 

82,248

 

TOTAL CONVERTIBLE PREFERRED SHARES

 

 

 

 

 

135,997

 

SHAREHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Preferred shares, no par value per share; unlimited shares and 0 shares authorized as of

   September 30, 2020 and December 31, 2019, respectively; 0 shares issued and outstanding

   as of September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

 

Common shares, no par value per share; unlimited shares authorized as of

   September 30, 2020 and December 31, 2019; 36,765,013 and 1,528,374 shares

   issued and outstanding as of September 30, 2020, and December 31, 2019, respectively

 

 

383,852

 

 

 

1

 

Additional paid-in capital

 

 

5,041

 

 

 

3,811

 

Accumulated deficit

 

 

(88,095

)

 

 

(49,941

)

Total shareholders’ equity (deficit)

 

 

300,798

 

 

 

(46,129

)

TOTAL LIABILITIES, CONVERTIBLE PREFERRED SHARES AND

   SHAREHOLDERS’ EQUITY (DEFICIT)

 

$

370,242

 

 

$

102,695

 

 

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

3


 

Repare Therapeutics Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(Amounts in thousands of U.S. dollars, except share and per share data)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development, net of tax credits

 

$

10,091

 

 

$

5,618

 

 

$

27,674

 

 

$

14,174

 

General and administrative

 

 

3,996

 

 

 

1,250

 

 

 

9,551

 

 

 

3,358

 

Total operating expenses

 

 

14,087

 

 

 

6,868

 

 

 

37,225

 

 

 

17,532

 

Loss from operations

 

 

(14,087

)

 

 

(6,868

)

 

 

(37,225

)

 

 

(17,532

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gain (loss) on foreign

   exchange

 

 

290

 

 

 

(152

)

 

 

(846

)

 

 

147

 

Change in fair value of Series A preferred share

   tranche obligation

 

 

 

 

 

(637

)

 

 

 

 

 

(1,337

)

Interest income

 

 

156

 

 

 

 

 

 

156

 

 

 

 

Other expense

 

 

(4

)

 

 

(2

)

 

 

(10

)

 

 

(5

)

Total other income (expense), net

 

 

442

 

 

 

(791

)

 

 

(700

)

 

 

(1,195

)

Loss before income taxes

 

 

(13,645

)

 

 

(7,659

)

 

 

(37,925

)

 

 

(18,727

)

Income tax expense

 

 

(106

)

 

 

(29

)

 

 

(229

)

 

 

(158

)

Net loss and comprehensive loss

 

$

(13,751

)

 

$

(7,688

)

 

$

(38,154

)

 

$

(18,885

)

Net loss attributable to common shareholders—basic and

   diluted

 

$

(13,751

)

 

$

(7,688

)

 

$

(38,154

)

 

$

(18,885

)

Net loss per share attributable to common shareholders—

   basic and diluted

 

$

(0.37

)

 

$

(5.03

)

 

$

(2.63

)

 

$

(12.36

)

Weighted-average common shares outstanding—basic

   and diluted

 

 

36,756,694

 

 

 

1,528,374

 

 

 

14,486,896

 

 

 

1,528,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

4


 

Repare Therapeutics Inc.

Condensed Consolidated Statements of Convertible Preferred Shares and Shareholders’ Equity (Deficit)

(Unaudited)

(Amounts in thousands of U.S. dollars, except share data)

 

 

 

Convertible Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A

 

 

Series B

 

 

Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Total

Shareholders’

Equity (Deficit)

 

Balance, January 1, 2019

 

 

6,813,340

 

 

$

31,873

 

 

 

 

 

$

 

 

 

1,528,374

 

 

$

1

 

 

$

340

 

 

$

(22,725

)

 

$

(22,384

)

Issuance of Series A convertible preferred shares,

   net of issuance costs of $5

 

 

4,276,795

 

 

 

21,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65

 

 

 

 

 

 

65

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,838

)

 

 

(4,838

)

Balance, March 31, 2019

 

 

11,090,135

 

 

$

53,749

 

 

 

 

 

$

-

 

 

 

1,528,374

 

 

$

1

 

 

$

405

 

 

$

(27,563

)

 

$

(27,157

)

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121

 

 

 

 

 

 

121

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,359

)

 

 

(6,359

)

Balance, June 30, 2019

 

 

11,090,135

 

 

$

53,749

 

 

 

 

 

$

 

 

 

1,528,374

 

 

$

1

 

 

$

526

 

 

$

(33,922

)

 

$

(33,395

)

Series A Tranche 3 termination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,960

 

 

 

 

 

 

2,960

 

Issuance of Series B convertible preferred shares,

   net of issuance costs of $248

 

 

 

 

 

 

 

 

10,468,258

 

 

 

82,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

 

 

 

 

 

127

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,688

)

 

 

(7,688

)

Balance, September 30, 2019

 

 

11,090,135

 

 

$

53,749

 

 

 

10,468,258

 

 

$

82,248

 

 

 

1,528,374

 

 

$

1

 

 

$

3,613

 

 

$

(41,610

)

 

$

(37,996

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2020

 

 

11,090,135

 

 

$

53,749

 

 

 

10,468,258

 

 

$

82,248

 

 

 

1,528,374

 

 

$

1

 

 

$

3,811

 

 

$

(49,941

)

 

$

(46,129

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

181,318

 

 

 

520

 

 

 

(196

)

 

 

 

 

 

324

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

271

 

 

 

 

 

 

271

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,601

)

 

 

(12,601

)

Balance, March 31, 2020

 

 

11,090,135

 

 

$

53,749

 

 

 

10,468,258

 

 

$

82,248

 

 

 

1,709,692

 

 

$

521

 

 

$

3,886

 

 

$

(62,542

)

 

$

(58,135

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85,369

 

 

 

257

 

 

 

(93

)

 

 

 

 

 

164

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

389

 

 

 

 

 

 

389

 

Issuance of common shares upon initial public offering, net of issuance costs of $20,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,650,000

 

 

 

232,043

 

 

 

 

 

 

 

 

 

232,043

 

Conversion of convertible preferred shares into an equivalent number of common shares

 

 

(11,090,135

)

 

 

(53,749

)

 

 

(10,468,258

)

 

 

(82,248

)

 

 

21,558,393

 

 

 

135,997

 

 

 

 

 

 

 

 

 

135,997

 

Issuance of warrant and conversion into common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

750,000

 

 

 

15,000

 

 

 

 

 

 

 

 

 

15,000

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,802

)

 

 

(11,802

)

Balance, June 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

36,753,454

 

 

$

383,818

 

 

$

4,182

 

 

$

(74,344

)

 

$

313,656

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,559

 

 

 

34

 

 

 

(12

)

 

 

 

 

 

22

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

871

 

 

 

 

 

 

871

 

Net loss and comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,751

)

 

 

(13,751

)

Balance, September 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

36,765,013

 

 

$

383,852

 

 

$

5,041

 

 

$

(88,095

)

 

$

300,798

 

 

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

 

5


 

Repare Therapeutics Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands of U.S. dollars)

 

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net loss and comprehensive loss for the period

 

$

(38,154

)

 

$

(18,885

)

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

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

1,531

 

 

 

313

 

Depreciation expense

 

 

610

 

 

 

416

 

Change in fair value of the Series A preferred shares tranche obligation

 

 

 

 

 

1,350

 

Non-cash lease expense

 

 

520

 

 

 

191

 

Foreign exchange loss (gain)

 

 

835

 

 

 

(432

)

Interest income

 

 

(36

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

(8,834

)

 

 

(142

)

Research and development tax credits receivable

 

 

(584

)

 

 

(398

)

Other receivables

 

 

(1,247

)

 

 

(964

)

Deferred tax asset

 

 

(86

)

 

 

(83

)

Other non-current assets

 

 

71

 

 

 

(4

)

Accounts payable

 

 

(1,120

)

 

 

1,157

 

Accrued expenses and other current liabilities

 

 

3,540

 

 

 

318

 

Operating lease liability, current portion

 

 

(97

)

 

 

29

 

Income tax payable

 

 

265

 

 

 

132

 

Operating lease liability, net of current portion

 

 

(351

)

 

 

(223

)

Deferred revenue

 

 

50,000

 

 

 

8,142

 

Net cash provided by (used in) operating activities

 

 

6,863

 

 

 

(9,083

)

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(516

)

 

 

(561

)

Net cash used in investing activities

 

 

(516

)

 

 

(561

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of Series A preferred shares, net

 

 

 

 

 

20,995

 

Proceeds from issuance of Series B preferred shares, net

 

 

 

 

 

82,248

 

Proceeds from exercise of stock options

 

 

510

 

 

 

 

Proceeds from issuance of warrant

 

 

15,000

 

 

 

 

Net proceeds from issuance of common shares in initial public offering

 

 

232,043

 

 

 

 

Net cash provided by financing activities

 

 

247,553

 

 

 

103,243

 

Effect of exchange rate fluctuations on cash held

 

 

(830

)

 

 

407

 

Net Increase In Cash And Restricted Cash

 

 

253,070

 

 

 

94,006

 

Cash and restricted cash at beginning of period

 

 

95,005

 

 

 

10,929

 

Cash and restricted cash at end of period

 

$

348,075

 

 

$

104,935

 

 

 

 

 

 

 

 

 

 

Reconciliation Of Cash And Restricted Cash

 

 

 

 

 

 

 

 

Cash

 

$

347,872

 

 

$

104,731

 

Restricted cash

 

 

203

 

 

 

204

 

Total cash and restricted cash

 

$

348,075

 

 

$

104,935

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure Of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash interest received