10-Q
falseQ30001808158 --12-31A800-0000000UnlimitedUnlimitedUnlimited Unlimited 2023-11-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-07-012024-09-300001808158rptx:DebiopharmMember2024-01-012024-09-300001808158us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001808158us-gaap:CommonStockMember2024-04-012024-06-300001808158rptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-01-012024-09-300001808158us-gaap:CommonStockMember2023-03-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-01-012024-09-300001808158us-gaap:CashAndCashEquivalentsMember2023-12-310001808158rptx:EstimatedSharesIssuableUnderTheEsppMember2024-07-012024-09-300001808158rptx:OnoPharmaceuticalCompanyLimitedMember2023-07-012023-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001808158us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-3000018081582024-04-012024-06-300001808158srt:OfficeBuildingMemberstpr:MA2024-08-012024-08-310001808158us-gaap:EmployeeStockOptionMember2024-09-300001808158rptx:CompletionOfContinuingTrialsMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-01-012024-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001808158us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-01-012024-03-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-07-012024-09-300001808158us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001808158us-gaap:RetainedEarningsMember2023-03-310001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2023-12-310001808158us-gaap:RetainedEarningsMember2024-03-3100018081582023-03-310001808158rptx:MarketableSecuritiesMemberus-gaap:USTreasurySecuritiesMember2023-12-310001808158us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300001808158us-gaap:RetainedEarningsMember2024-07-012024-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:BristolMyersSquibbCompanyMember2020-05-012020-05-310001808158rptx:CompletionOfContinuingTrialsMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2023-12-310001808158rptx:CompletionOfContinuingTrialsMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-09-300001808158us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001808158us-gaap:RetainedEarningsMember2023-06-300001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2023-01-012023-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMemberus-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMember2023-12-310001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001808158us-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMember2024-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001808158rptx:BristolMyersSquibbCompanyMember2024-01-012024-09-3000018081582022-12-3100018081582024-09-3000018081582023-01-012023-03-310001808158us-gaap:AdditionalPaidInCapitalMember2024-09-300001808158us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001808158us-gaap:CommonStockMember2023-07-012023-09-300001808158us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-09-300001808158us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001808158us-gaap:RetainedEarningsMember2024-06-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-07-012023-09-300001808158rptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2023-07-012023-09-300001808158us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:UndruggableTargetMemberrptx:BristolMyersSquibbCompanyMember2024-03-012024-03-310001808158us-gaap:CashAndCashEquivalentsMember2024-09-3000018081582023-01-012023-09-300001808158us-gaap:EmployeeStockOptionMember2024-07-012024-09-300001808158rptx:MarketableSecuritiesMember2023-12-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-01-012024-09-300001808158us-gaap:RestrictedStockUnitsRSUMember2024-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-01-012023-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMemberus-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001808158us-gaap:CommonStockMember2023-09-300001808158stpr:CA-QCus-gaap:ResearchAndDevelopmentExpenseMemberrptx:OfficeAndLaboratorySpaceMember2024-01-012024-09-300001808158us-gaap:CommonStockMember2023-06-3000018081582024-11-010001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-09-300001808158rptx:CommercialMilestonesMemberrptx:CollaborationAndLicenseAgreementMembersrt:MaximumMemberrptx:BristolMyersSquibbCompanyMember2020-05-310001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMemberrptx:ThirdAdditionalClinicalDevelopmentPlanMember2024-03-310001808158us-gaap:CommonStockMember2024-09-300001808158us-gaap:CommonStockMember2024-01-012024-03-310001808158us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:ResearchDevelopmentAndRegulatoryMilestonesMembersrt:MaximumMemberrptx:BristolMyersSquibbCompanyMember2020-05-310001808158us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-3000018081582024-01-012024-09-300001808158us-gaap:RetainedEarningsMember2024-04-012024-06-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMemberus-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMemberus-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:CashMember2023-12-310001808158rptx:OptionsToPurchaseCommonSharesMember2024-07-012024-09-300001808158us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-09-300001808158us-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-09-300001808158rptx:BristolMyersSquibbCompanyMember2023-07-012023-09-300001808158rptx:OptionsToLicenseUndruggableTargetMemberrptx:BristolMyersSquibbCompanyMember2023-12-310001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2020-06-302020-06-300001808158rptx:DebiopharmMember2024-09-300001808158us-gaap:GeneralAndAdministrativeExpenseMember2024-07-012024-09-300001808158us-gaap:AdditionalPaidInCapitalMember2024-03-310001808158us-gaap:AdditionalPaidInCapitalMember2023-06-300001808158rptx:MarketableSecuritiesMemberus-gaap:CommercialPaperMember2023-12-3100018081582023-06-300001808158us-gaap:CommonStockMember2023-01-012023-03-310001808158rptx:BristolMyersSquibbCompanyMember2024-07-012024-09-300001808158us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2024-09-300001808158us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-3000018081582023-09-300001808158stpr:CA-QCus-gaap:ResearchAndDevelopmentExpenseMemberrptx:OfficeAndLaboratorySpaceMember2024-07-012024-09-300001808158us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001808158us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2023-07-012023-09-300001808158us-gaap:CommonStockMember2023-04-012023-06-300001808158rptx:OnoPharmaceuticalCompanyLimitedMember2024-07-012024-09-3000018081582023-01-012023-12-310001808158us-gaap:RetainedEarningsMember2023-07-012023-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMemberrptx:ThirdAdditionalClinicalDevelopmentPlanMember2023-12-310001808158us-gaap:CommonStockMember2024-06-300001808158us-gaap:CommonStockMemberrptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-07-012023-09-300001808158us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001808158us-gaap:CommonStockMemberrptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-01-012023-03-310001808158us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001808158srt:OfficeBuildingMemberstpr:MA2024-08-310001808158us-gaap:CommonStockMember2023-12-310001808158us-gaap:RetainedEarningsMember2023-04-012023-06-300001808158us-gaap:AdditionalPaidInCapitalMember2023-09-300001808158rptx:MarketableSecuritiesMemberus-gaap:CorporateDebtSecuritiesMember2024-09-3000018081582023-07-012023-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001808158us-gaap:AdditionalPaidInCapitalMember2023-12-310001808158us-gaap:CommonStockMemberrptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-01-012024-03-310001808158us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158rptx:OnoPharmaceuticalCompanyLimitedMember2023-01-012023-09-300001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2024-07-012024-09-300001808158us-gaap:CommonStockMember2024-03-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-07-012024-09-3000018081582024-01-012024-03-310001808158rptx:MarketableSecuritiesMemberus-gaap:CommercialPaperMember2024-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2023-07-012023-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-02-290001808158us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158rptx:MarketableSecuritiesMember2024-09-300001808158us-gaap:RetainedEarningsMember2023-09-300001808158rptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-07-012024-09-3000018081582023-12-310001808158us-gaap:GeneralAndAdministrativeExpenseMember2023-07-012023-09-300001808158us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001808158rptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2023-01-012023-09-300001808158us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2024-09-300001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-01-012023-03-310001808158us-gaap:RetainedEarningsMember2023-12-3100018081582024-08-012024-08-310001808158rptx:CollaborationAndLicenseAgreementMembersrt:MaximumMemberrptx:BristolMyersSquibbCompanyMember2020-05-310001808158us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001808158rptx:OptionsToPurchaseCommonSharesMember2023-01-012023-09-300001808158us-gaap:CommonStockMemberrptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2024-07-012024-09-300001808158us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001808158us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2023-01-012023-09-3000018081582024-03-310001808158us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158rptx:TwoThousandTwentyEmployeeSharePurchasePlanMember2023-07-012023-09-300001808158us-gaap:RetainedEarningsMember2024-01-012024-03-310001808158rptx:EstimatedSharesIssuableUnderTheEsppMember2023-07-012023-09-300001808158us-gaap:AdditionalPaidInCapitalMember2023-03-310001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2020-06-302020-06-300001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001808158us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300001808158rptx:OptionsToLicenseUndruggableTargetMemberrptx:BristolMyersSquibbCompanyMember2024-01-012024-09-300001808158rptx:TwoThousandTwentyEquityIncentivePlanMember2024-01-012024-09-300001808158rptx:OptionsToLicenseUndruggableTargetMemberrptx:BristolMyersSquibbCompanyMember2024-09-300001808158us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158us-gaap:RetainedEarningsMember2024-09-300001808158us-gaap:CommonStockMemberrptx:SalesAgreementMemberus-gaap:SubsequentEventMembersrt:MaximumMember2024-11-072024-11-070001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-01-012024-09-300001808158us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001808158us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300001808158us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-09-300001808158us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-3100018081582023-04-012023-06-3000018081582024-07-012024-09-300001808158rptx:BristolMyersSquibbCompanyMember2023-01-012023-09-300001808158us-gaap:CashAndCashEquivalentsMemberus-gaap:CashMember2024-09-300001808158us-gaap:AdditionalPaidInCapitalMember2024-06-300001808158us-gaap:RetainedEarningsMember2022-12-310001808158us-gaap:AdditionalPaidInCapitalMember2022-12-310001808158us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001808158rptx:EstimatedSharesIssuableUnderTheEsppMember2023-01-012023-09-300001808158us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100018081582024-06-300001808158rptx:EstimatedSharesIssuableUnderTheEsppMember2024-01-012024-09-300001808158rptx:DebiopharmMember2024-07-012024-09-300001808158us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001808158rptx:OnoPharmaceuticalCompanyLimitedMember2024-01-012024-09-300001808158rptx:OptionsToPurchaseCommonSharesMember2024-01-012024-09-300001808158us-gaap:CommonStockMember2022-12-310001808158rptx:OptionsToPurchaseCommonSharesMember2023-07-012023-09-300001808158rptx:CollaborationAndLicenseAgreementMemberrptx:HoffmannLaRocheIncAndFHoffmannLaRocheLtdMember2024-03-310001808158rptx:InducementOptionAwardMember2024-04-300001808158us-gaap:RestrictedStockUnitsRSUMember2023-12-310001808158us-gaap:RetainedEarningsMember2023-01-012023-03-31xbrli:pureiso4217:USDxbrli:sharesxbrli:sharesiso4217:USDrptx:Lease

 

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, 2024

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.)

7171 Frederick-Banting, Building 2, Suite 270

St-Laurent, Québec, Canada

H4S 1Z9

(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 1, 2024, there were 42,510,708 of the registrant’s common shares, no par value per share, outstanding.

 

 


 

Table of Contents

 

Page

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

1

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 Shareholders’ Equity

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

16

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

31

PART II.

OTHER INFORMATION

32

Item 1.

Legal Proceedings

32

Item 1A.

Risk Factors

32

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

34

Item 3.

Defaults Upon Senior Securities

34

Item 4.

Mine Safety Disclosures

34

Item 5.

Other Information

35

Item 6.

Exhibits

36

Signatures

 

 

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 lunresertib, camonsertib and any of our other 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;
the evolving impact of macroeconomic events, including health pandemics, changes in inflation, the U.S. Federal Reserve raising interest rates, disruptions in access to bank deposits or lending commitments due to bank failures and the Russia-Ukraine and Middle-East conflicts, on our operations, supply chains, general economic conditions, our ability to raise additional capital, and the continuity of our business, including our preclinical studies and clinical trials;
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 ongoing clinical trials of lunresertib, camonsertib, RP-1664 and RP-3467;
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 current or future product candidates that we develop;
our ability to receive any milestone or royalty payments under our collaboration and license agreements;
the effects of competition with respect to lunresertib, camonsertib, 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;
the expected impact of the strategic reprioritization of our research and development activities, including with respect to anticipated cost savings; and
other risks and uncertainties, including those listed under the section titled “Risk Factors” in this Quarterly Report and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024.

 

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 macroeconomic events 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. Except as required by law, we do not intend, and undertake no obligation, to update any forward-looking information to reflect events or circumstances.

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,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

80,541

 

 

$

111,268

 

Marketable securities

 

 

98,891

 

 

 

112,359

 

Income tax receivable

 

 

10,974

 

 

 

10,813

 

Other current receivables

 

 

3,253

 

 

 

4,499

 

Prepaid expenses

 

 

6,744

 

 

 

4,749

 

Total current assets

 

 

200,403

 

 

 

243,688

 

Property and equipment, net

 

 

2,748

 

 

 

4,215

 

Operating lease right-of-use assets

 

 

2,473

 

 

 

3,326

 

Income tax receivable

 

 

586

 

 

 

2,276

 

Other assets

 

 

179

 

 

 

396

 

TOTAL ASSETS

 

$

206,389

 

 

$

253,901

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

10,655

 

 

$

2,400

 

Accrued expenses and other current liabilities

 

 

18,212

 

 

 

24,057

 

Operating lease liability, current portion

 

 

2,217

 

 

 

2,400

 

Deferred revenue, current portion

 

 

 

 

 

10,222

 

Total current liabilities

 

 

31,084

 

 

 

39,079

 

Operating lease liability, net of current portion

 

 

346

 

 

 

1,010

 

Deferred revenue, net of current portion

 

 

 

 

 

1,730

 

TOTAL LIABILITIES

 

 

31,430

 

 

 

41,819

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Preferred shares, no par value per share; unlimited shares authorized as of
   September 30, 2024 and December 31, 2023;
0 shares issued and outstanding
   as of September 30, 2024, and December 31, 2023

 

 

 

 

 

 

Common shares, no par value per share; unlimited shares authorized as of
   September 30, 2024 and December 31, 2023;
42,510,708 and 42,176,041 shares
   issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

 

486,674

 

 

 

483,350

 

Additional paid-in capital

 

 

77,272

 

 

 

61,813

 

Accumulated other comprehensive income

 

 

140

 

 

 

28

 

Accumulated deficit

 

 

(389,127

)

 

 

(333,109

)

Total shareholders’ equity

 

 

174,959

 

 

 

212,082

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

206,389

 

 

$

253,901

 

 

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,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Collaboration agreements

 

$

 

 

$

2,159

 

 

$

53,477

 

 

$

38,086

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development, net of tax credits

 

 

28,401

 

 

 

32,709

 

 

 

91,446

 

 

 

98,327

 

General and administrative

 

 

6,444

 

 

 

7,868

 

 

 

23,379

 

 

 

25,116

 

Restructuring

 

 

1,527

 

 

 

 

 

 

1,527

 

 

 

 

Total operating expenses

 

 

36,372

 

 

 

40,577

 

 

 

116,352

 

 

 

123,443

 

Loss from operations

 

 

(36,372

)

 

 

(38,418

)

 

 

(62,875

)

 

 

(85,357

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized (loss) gain on foreign exchange

 

 

(19

)

 

 

(40

)

 

 

18

 

 

 

(137

)

Interest income

 

 

2,512

 

 

 

3,312

 

 

 

8,374

 

 

 

10,228

 

Other expense

 

 

(42

)

 

 

(32

)

 

 

(95

)

 

 

(73

)

Total other income, net

 

 

2,451

 

 

 

3,240

 

 

 

8,297

 

 

 

10,018

 

Loss before income taxes

 

 

(33,921

)

 

 

(35,178

)

 

 

(54,578

)

 

 

(75,339

)

Income tax (expense) recovery

 

 

(485

)

 

 

16,299

 

 

 

(1,440

)

 

 

9,573

 

Net loss

 

$

(34,406

)

 

$

(18,879

)

 

$

(56,018

)

 

$

(65,766

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale marketable
   securities

 

$

274

 

 

$

172

 

 

$

112

 

 

$

176

 

Total other comprehensive income

 

 

274

 

 

 

172

 

 

 

112

 

 

 

176

 

Comprehensive loss

 

$

(34,132

)

 

$

(18,707

)

 

$

(55,906

)

 

$

(65,590

)

Net loss per share attributable to common shareholders - basic
   and diluted

 

$

(0.81

)

 

$

(0.45

)

 

$

(1.32

)

 

$

(1.56

)

Weighted-average common shares outstanding - basic and diluted

 

 

42,452,617

 

 

 

42,102,685

 

 

 

42,377,635

 

 

 

42,077,857

 

 

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

4


 

Repare Therapeutics Inc.

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

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

 

 

 

Common Shares

 

 

Additional
Paid-in

 

 

Accumulated
Other Comprehensive

 

 

Accumulated

 

 

Total
Shareholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance,
   December 31, 2022

 

 

42,036,193

 

 

$

482,032

 

 

$

37,226

 

 

$

(428

)

 

$

(239,313

)

 

$

279,517

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

6,062

 

 

 

 

 

 

 

 

 

6,062

 

Exercise of stock options

 

 

2,000

 

 

 

7

 

 

 

(3

)

 

 

 

 

 

 

 

 

4

 

Issuance of common shares
   under the 2020 Employee
   Share Purchase Plan

 

 

41,703

 

 

 

638

 

 

 

(229

)

 

 

 

 

 

 

 

 

409

 

Other comprehensive
   income

 

 

 

 

 

 

 

 

 

 

 

193

 

 

 

 

 

 

193

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,941

)

 

 

(34,941

)

Balance, March 31, 2023

 

 

42,079,896

 

 

$

482,677

 

 

$

43,056

 

 

$

(235

)

 

$

(274,254

)

 

$

251,244

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

6,265

 

 

 

 

 

 

 

 

 

6,265

 

Exercise of stock options

 

 

14,050

 

 

 

62

 

 

 

(22

)

 

 

 

 

 

 

 

 

40

 

Other comprehensive
   loss

 

 

 

 

 

 

 

 

 

 

 

(189

)

 

 

 

 

 

(189

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,946

)

 

 

(11,946

)

Balance, June 30, 2023

 

 

42,093,946

 

 

$

482,739

 

 

$

49,299

 

 

$

(424

)

 

$

(286,200

)

 

$

245,414

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

6,377

 

 

 

 

 

 

 

 

 

6,377

 

Exercise of stock options

 

 

1,400

 

 

 

6

 

 

 

(2

)

 

 

 

 

 

 

 

 

4

 

Issuance of common shares
   under the 2020 Employee
   Share Purchase Plan

 

 

33,905

 

 

 

439

 

 

 

(159

)

 

 

 

 

 

 

 

 

280

 

Other comprehensive
   income

 

 

 

 

 

 

 

 

 

 

 

172

 

 

 

 

 

 

172

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,879

)

 

 

(18,879

)

Balance,
   September 30, 2023

 

 

42,129,251

 

 

$

483,184

 

 

$

55,515

 

 

$

(252

)

 

$

(305,079

)

 

$

233,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance,
   December 31, 2023

 

 

42,176,041

 

 

$

483,350

 

 

$

61,813

 

 

$

28

 

 

$

(333,109

)

 

$

212,082

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

6,475

 

 

 

 

 

 

 

 

 

6,475

 

Exercise of stock options

 

 

8,485

 

 

 

27

 

 

 

(10

)

 

 

 

 

 

 

 

 

17

 

Issuance of common shares
   on vesting of restricted
   share units

 

 

200,262

 

 

 

2,488

 

 

 

(2,488

)

 

 

 

 

 

 

 

 

 

Issuance of common shares
   under the 2020 Employee
   Share Purchase Plan

 

 

60,618

 

 

 

510

 

 

 

(152

)

 

 

 

 

 

 

 

 

358

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(141

)

 

 

 

 

 

(141

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,162

 

 

 

13,162

 

Balance, March 31, 2024

 

 

42,445,406

 

 

$

486,375

 

 

$

65,638

 

 

$

(113

)

 

$

(319,947

)

 

$

231,953

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

6,519

 

 

 

 

 

 

 

 

 

6,519

 

Exercise of stock options

 

 

127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(21

)

 

 

 

 

 

(21

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,774

)

 

 

(34,774

)

Balance, June 30, 2024

 

 

42,445,533

 

 

$

486,375

 

 

$

72,157

 

 

$

(134

)

 

$

(354,721

)

 

$

203,677

 

Share-based compensation
   expense

 

 

 

 

 

 

 

 

5,248

 

 

 

 

 

 

 

 

 

5,248

 

Issuance of common shares
   under the 2020 Employee
   Share Purchase Plan

 

 

65,175

 

 

 

299

 

 

 

(133

)

 

 

 

 

 

 

 

 

166

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

274

 

 

 

 

 

 

274

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,406

)

 

 

(34,406

)

Balance,
   September 30, 2024

 

 

42,510,708

 

 

$

486,674

 

 

$

77,272

 

 

$

140

 

 

$

(389,127

)

 

$

174,959

 

 

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,

 

 

 

2024

 

 

2023

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net loss for the period

 

$

(56,018

)

 

$

(65,766

)

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

 

 

 

 

 

 

Share-based compensation expense

 

 

18,242

 

 

 

18,704

 

Depreciation expense

 

 

1,467

 

 

 

1,445

 

Non-cash lease expense

 

 

1,810

 

 

 

1,637

 

Foreign exchange (gain) loss

 

 

(35

)

 

 

71

 

Net accretion of marketable securities

 

 

(4,298

)

 

 

(5,809

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses

 

 

(1,995

)

 

 

167

 

Other current receivables

 

 

1,246

 

 

 

559

 

Other non-current assets

 

 

204

 

 

 

100

 

Accounts payable

 

 

8,256

 

 

 

4,587

 

Accrued expenses and other current liabilities

 

 

(5,829

)

 

 

(916

)

Operating lease liability, current portion

 

 

(682

)

 

 

117

 

Income taxes

 

 

1,529

 

 

 

(19,291

)

Operating lease liability, net of current portion

 

 

(1,066

)

 

 

(1,771

)

Deferred revenue

 

 

(11,952

)

 

 

(32,836

)

Net cash used in operating activities

 

 

(49,121

)

 

 

(99,002

)

Cash Flows From Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

 

 

 

(1,540

)

Proceeds from maturities of marketable securities

 

 

132,015

 

 

 

222,000

 

Purchase of marketable securities

 

 

(114,133

)

 

 

(174,298

)

Net cash provided by investing activities

 

 

17,882

 

 

 

46,162

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

17

 

 

 

48

 

Proceeds from issuance of common stock under the 2020 Employee Share Purchase Plan

 

 

524

 

 

 

689

 

Net cash provided by financing activities

 

 

541

 

 

 

737

 

Effect of exchange rate fluctuations on cash held

 

 

(29

)

 

 

(49

)

Net Decrease In Cash And Cash Equivalents

 

 

(30,727

)

 

 

(52,152

)

Cash and cash equivalents at beginning of period

 

 

111,268

 

 

 

159,521

 

Cash and cash equivalents at end of period

 

$

80,541

 

 

$

107,369

 

 

 

 

 

 

 

Supplemental Disclosure Of Cash Flow Information:

 

 

 

 

 

 

Property and equipment purchases incurred but not yet paid

 

$

 

 

$

399

 

Right-of-use asset obtained in exchange for new operating lease liability

 

$

957

 

 

$

149

 

 

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

6


 

REPARE THERAPEUTICS INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in U.S. dollars, unless otherwise specified)

1. Organization and Nature of Business

Repare Therapeutics Inc. (“Repare” or the “Company”) is a precision medicine oncology company focused on the development of synthetic lethality-based therapies for patients with cancer. The Company is governed by the Business Corporations Act (Québec). The Company’s common shares are listed on the Nasdaq Global Select Market under the ticker symbol “RPTX”.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements as of and for the year ended December 31, 2023, and, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s consolidated financial position as of September 30, 2024, the consolidated results of its operations for the three and nine months ended September 30, 2024 and 2023, its statements of shareholders’ equity for the three and nine months ended September 30, 2024 and 2023 and its consolidated cash flows for the nine months ended September 30, 2024 and 2023.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024 (the “Annual Report”). The condensed consolidated balance sheet data as of December 31, 2023 presented for comparative purposes was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by U.S. GAAP. The results for the three and nine months ended September 30, 2024 are not necessarily indicative of the operating results to be expected for the full year or for any other subsequent interim period.

The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2023 included in the Annual Report. There have been no changes to the Company's significant accounting policies since the date of the audited consolidated financial statements for the year ended December 31, 2023 included in the Annual Report.

Principles of Consolidation

These unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiary, Repare Therapeutics USA Inc. (“Repare USA”), which was incorporated under the laws of Delaware on June 1, 2017. The financial statements of Repare USA are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group transactions, balances, income, and expenses are eliminated in full upon consolidation.

Smaller Reporting Company

Repare qualified as a “smaller reporting company” under the Exchange Act as of June 30, 2024 because the market value of its common shares held by non-affiliates was less than $200 million as of June 30, 2024. As a smaller reporting company, Repare may rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. For so long as the Company remains a smaller reporting company, it is permitted and intends to rely on such exemptions from certain disclosure and other requirements that are applicable to other public companies that are not smaller reporting companies.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, share-based compensation and income taxes. The Company bases its estimates on historical experience and other market specific or other relevant assumptions that it believes to be reasonable under the

7


 

circumstances. Actual results could differ from those estimates. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB amended the guidance in ASU 280, Segment Reporting, to require a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures currently required under ASC 280. The new guidance is effective for public entities in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of this amendment on its consolidated financial statements.

In December 2023, the FASB amended the guidance in ASU 740, Income Taxes, to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid. The new guidance is effective for public entities in fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact of this amendment on its consolidated financial statements.

3. Cash and Cash Equivalents and Marketable Securities

Cash and cash equivalents and marketable securities were comprised of the following:

 

 

Amortized Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

 

(in thousands)

 

As of September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 Cash

 

$

47,586

 

 

$

 

 

$

 

 

$

47,586

 

 Money market funds

 

 

29,970

 

 

 

 

 

 

 

 

 

29,970

 

 Commercial paper

 

 

2,985

 

 

 

 

 

 

 

 

 

2,985

 

 Total cash and cash equivalents:

 

$

80,541

 

 

$

 

 

$

 

 

$

80,541

 

 Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial paper

 

$

77,473

 

 

$

102

 

 

$

 

 

$

77,575

 

 Corporate debt securities

 

 

21,278

 

 

 

38

 

 

 

 

 

 

21,316

 

 Total marketable securities

 

$

98,751

 

 

$

140

 

 

$

 

 

$

98,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 Cash

 

$

44,462

 

 

$

 

 

$

 

 

$

44,462

 

 Money market funds

 

 

36,991

 

 

 

 

 

 

 

 

 

36,991

 

 Commercial paper

 

 

29,811

 

 

 

4

 

 

 

 

 

 

29,815

 

 Total cash and cash equivalents:

 

$

111,264

 

 

$

4

 

 

$

 

 

$

111,268

 

 Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 U.S. Treasury and government-sponsored
   enterprises

 

$

22,434

 

 

$

 

 

$

(25

)

 

$

22,409

 

 Commercial paper

 

 

89,901

 

 

 

60

 

 

 

(11

)

 

 

89,950

 

 Total marketable securities

 

$

112,335

 

 

$

60

 

 

$

(36

)

 

$

112,359

 

Interest receivable was $0.3 million and $0.4 million as of September 30, 2024 and December 31, 2023, respectively, and is included in other current receivables.

The Company held available-for-sale marketable securities with an aggregate fair value of nil and $58.6 million in an immaterial, unrealized loss position as of September 30, 2024 and December 31, 2023, respectively, as shown in the table above. These marketable securities have been in an unrealized gain and loss position for less than twelve months. The unrealized losses as of December 31, 2023, were not attributed to credit risk but were primarily associated with changes in interest rates and market liquidity. The Company does not intend to sell these securities and it is more likely than not that it will hold these investments for a period of time sufficient to recover the amortized cost. As a result, the Company did not record an allowance for credit losses or other impairment charges for its marketable securities for the nine months ended September 30, 2024 and 2023.

8


 

The Company recognized a net unrealized gain of $0.3 million and $0.2 million in other comprehensive income in the three months ended September 30, 2024 and 2023, respectively, and a net unrealized gain of $0.1 million and $0.2 million in the nine months ended September 30, 2024 and 2023, respectively, in relation to its cash and cash equivalents and marketable securities.

The maturities of the Company’s marketable securities as of September 30, 2024 and December 31, 2023 are less than one year.

4. Fair Value Measurements

Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
Level 3 – Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values:

Description

 

Financial Assets

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

As of September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 Assets

 

 

 

 

 

 

 

 

 

 

 

 

 Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 Money market funds

 

$

29,970

 

 

$

29,970

 

 

$

 

 

$

 

 Commercial paper

 

 

2,985

 

 

 

 

 

 

2,985

 

 

 

 

 Total cash equivalents

 

 

32,955

 

 

 

29,970

 

 

 

2,985

 

 

 

 

 Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial paper

 

 

77,575

 

 

 

 

 

 

77,575

 

 

 

 

 Corporate debt securities

 

 

21,316

 

 

 

 

 

 

21,316

 

 

 

 

 Total marketable securities

 

 

98,891

 

 

 

 

 

 

98,891

 

 

 

 

 Total financial assets

 

$

131,846

 

 

$

29,970

 

 

$

101,876

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 Assets

 

 

 

 

 

 

 

 

 

 

 

 

 Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 Money market funds

 

$

36,991

 

 

$

36,991

 

 

$

 

 

$

 

 Commercial paper

 

 

29,815

 

 

 

 

 

 

29,815

 

 

 

 

 Total cash equivalents

 

 

66,806

 

 

 

36,991

 

 

 

29,815

 

 

 

 

 Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

 U.S. Treasury and government-sponsored enterprises

 

 

22,409

 

 

 

 

 

 

22,409

 

 

 

 

 Commercial paper

 

 

89,950

 

 

 

 

 

 

89,950

 

 

 

 

 Total marketable securities

 

 

112,359

 

 

 

 

 

 

112,359

 

 

 

 

 Total financial assets

 

$

179,165

 

 

$

36,991

 

 

$

142,174

 

 

$

 

When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure the fair value. In determining the fair values at each date presented above, the Company relied on quoted prices for similar securities in active markets or using other inputs that are observable or can be corroborated by observable market data.

During the nine months ended September 30, 2024, there were no transfers between fair value measure levels.