logc-10q_20190930.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, 2019

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: 001-38707

 

LogicBio Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

 

47-1514975

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

99 Erie St., Cambridge, MA 02139

(Address of principal executive offices) (Zip code)

(617) 245-0399

(Registrant’s telephone number, including area code)

 

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 Stock, par value $0.0001 per share

 

LOGC

 

Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of November 7, 2019, the registrant had 22,924,337 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

Page  

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

4

 

Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

4

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018

5

 

Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2019 and 2018

6

 

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the Three and Nine Months Ended September 30, 2019 and 2018

7

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

8

 

Notes to Unaudited Condensed Consolidated Financial Statements

9

Item 2.

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

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

25

 

 

 

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

27

Item 6.

Exhibits

28

Signatures

29

 

2


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect,” or similar expressions, or the negative or plural of these words or expressions. These forward-looking statements include statements concerning the following:

 

the initiation, cost, timing, progress and results of our current and future research and development activities and preclinical studies and potential future clinical trials;

 

potential attributes and benefits of our GeneRide technology platform and our product candidate and any future product candidates;

 

our ability to take advantage of the modular nature of our GeneRide platform to simplify and accelerate development of new product candidates;

 

the potential benefits of strategic partnership agreements and our ability to enter into selective strategic partnership arrangements;

 

the timing of, and our ability to obtain and maintain, regulatory approvals for our product candidate and any future product candidates;

 

our ability to quickly and efficiently identify and develop additional product candidates;

 

our ability to advance any product candidate into and successfully complete clinical trials;

 

our intellectual property position, including with respect to our trade secrets and the duration of our patent protection; and

 

our estimates regarding expenses, future revenues, capital requirements, the sufficiency of our current and expected cash resources and our need for additional financing.

These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. We discuss many of these risks in greater detail under Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on April 1, 2019, as may be amended or updated in our Quarterly Reports on Form 10-Q. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we are under no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this Quarterly Report on Form 10-Q, and you should not rely on statements contained herein as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

Unless the context otherwise requires, the terms “LogicBio,” “LogicBio Therapeutics, Inc.,” the “Company,” “we,” “us,” “our” and similar references in this Quarterly Report on Form 10-Q refer to LogicBio Therapeutics, Inc. and its subsidiaries.

 

3


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

LogicBio Therapeutics, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

September 30,

2019

 

 

December 31,

2018

 

ASSETS

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

38,680

 

 

$

80,906

 

Short-term investments

 

 

24,481

 

 

 

 

Prepaid expenses and other current assets

 

 

1,622

 

 

 

1,268

 

Restricted cash

 

 

146

 

 

 

 

Total current assets

 

 

64,929

 

 

 

82,174

 

Property and equipment, net

 

 

1,489

 

 

 

590

 

Restricted cash

 

 

 

 

 

146

 

Operating lease right-of-use asset

 

 

669

 

 

 

 

TOTAL ASSETS

 

$

67,087

 

 

$

82,910

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,954

 

 

$

1,168

 

Accrued expenses and other current liabilities

 

 

2,176

 

 

 

1,517

 

Total current liabilities

 

 

4,130

 

 

 

2,685

 

Long-term debt, net of issuance costs and discount

 

 

9,759

 

 

 

 

TOTAL LIABILITIES

 

 

13,889

 

 

 

2,685

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Common stock, par value of $0.0001 per share; 175,000,000 shares

   authorized; 22,765,930 and 22,188,393 shares issued and outstanding as of

   September 30, 2019 and December 31, 2018, respectively

 

 

3

 

 

 

3

 

Additional paid-in capital

 

 

109,081

 

 

 

107,473

 

Accumulated other comprehensive income (loss)

 

 

19

 

 

 

(9

)

Accumulated deficit

 

 

(55,905

)

 

 

(27,242

)

Total stockholders’ equity

 

 

53,198

 

 

 

80,225

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

67,087

 

 

$

82,910

 

 

See notes to unaudited condensed consolidated financial statements.

 

4


 

LogicBio Therapeutics, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

8,858

 

 

$

2,432

 

 

$

22,278

 

 

$

6,113

 

General and administrative

 

 

2,175

 

 

 

2,119

 

 

 

7,331

 

 

 

4,453

 

Total operating expenses

 

 

11,033

 

 

 

4,551

 

 

 

29,609

 

 

 

10,566

 

LOSS FROM OPERATIONS

 

 

(11,033

)

 

 

(4,551

)

 

 

(29,609

)

 

 

(10,566

)

OTHER INCOME (EXPENSE), NET:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

389

 

 

 

75

 

 

 

1,243

 

 

 

204

 

Interest expense

 

 

(271

)

 

 

(1

)

 

 

(271

)

 

 

(2

)

Other expense, net

 

 

(3

)

 

 

(154

)

 

 

(4

)

 

 

(158

)

Total other income (expense), net

 

 

115

 

 

 

(80

)

 

 

968

 

 

 

44

 

Loss before income taxes

 

 

(10,918

)

 

 

(4,631

)

 

 

(28,641

)

 

 

(10,522

)

Income tax provision

 

 

 

 

 

(38

)

 

 

(22

)

 

 

(38

)

Net loss

 

$

(10,918

)

 

$

(4,669

)

 

$

(28,663

)

 

$

(10,560

)

Net loss attributable to common stockholders—basic and

   diluted (Note 10)

 

$

(10,918

)

 

$

(8,621

)

 

$

(28,663

)

 

$

(14,512

)

Net loss per share attributable to common stockholders

   —basic and diluted

 

$

(0.48

)

 

$

(4.03

)

 

$

(1.27

)

 

$

(7.39

)

Weighted-average common stock outstanding—basic

   and diluted

 

 

22,677,205

 

 

 

2,138,160

 

 

 

22,491,282

 

 

 

1,963,976

 

 

See notes to unaudited condensed consolidated financial statements.

 

5


 

LogicBio Therapeutics, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net loss

 

$

(10,918

)

 

$

(4,669

)

 

$

(28,663

)

 

$

(10,560

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on investments

 

 

(16

)

 

 

 

 

 

20

 

 

 

 

Foreign currency translation adjustment

 

 

2

 

 

 

5

 

 

 

8

 

 

 

13

 

Comprehensive loss

 

$

(10,932

)

 

$

(4,664

)

 

$

(28,635

)

 

$

(10,547

)

 

See notes to unaudited condensed consolidated financial statements.

 

6


 

LogicBio Therapeutics, Inc.

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(In thousands, except share and per share data)

 

 

 

Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible

Preferred Stock

$0.0001 Par Value

Series A

 

 

Convertible

Preferred Stock

$0.0001 Par Value

Series B

 

 

Common Stock

$0.0001 Par Value

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

(Deficit)

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Loss) Income

 

 

Deficit

 

 

Equity

 

BALANCE, January 1, 2018

 

 

2,976,190

 

 

$

4,359

 

 

 

19,541,465

 

 

$

28,703

 

 

 

1,606,360

 

 

$

1

 

 

$

1,035

 

 

$

(14

)

 

$

(9,621

)

 

$

(8,599

)

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

173,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

7

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

88

 

 

 

 

 

 

 

 

 

88

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,304

)

 

 

(2,304

)

BALANCE, March 31, 2018

 

 

2,976,190

 

 

 

4,359

 

 

 

19,541,465

 

 

 

28,703

 

 

 

1,780,077

 

 

 

1

 

 

 

1,123

 

 

 

(7

)

 

 

(11,925

)

 

 

(10,808

)

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

162,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

145

 

 

 

 

 

 

 

 

 

145

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,587

)

 

 

(3,587

)

BALANCE, June 30, 2018

 

 

2,976,190

 

 

 

4,359

 

 

 

19,541,465

 

 

 

28,703

 

 

 

1,942,646

 

 

 

1

 

 

 

1,268

 

 

 

(6

)

 

 

(15,512

)

 

 

(14,249

)

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

160,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,003

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

11

 

Issuance of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

5

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

287

 

 

 

 

 

 

 

 

 

287

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,669

)

 

 

(4,669

)

BALANCE, September 30, 2018

 

 

2,976,190

 

 

$

4,359

 

 

 

19,541,465

 

 

$

28,703

 

 

 

2,176,075

 

 

$

1

 

 

$

1,566

 

 

$

(1

)

 

$

(20,181

)

 

$

(18,615

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, January 1, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

22,188,393

 

 

$

3

 

 

$

107,473

 

 

$

(9

)

 

$

(27,242

)

 

$

80,225

 

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

160,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

276

 

 

 

 

 

 

 

 

 

276

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,697

)

 

 

(7,697

)

BALANCE, March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,348,730

 

 

 

3

 

 

 

107,749

 

 

 

3

 

 

 

(34,939

)

 

 

72,816

 

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

160,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,454

 

 

 

 

 

 

82

 

 

 

 

 

 

 

 

 

82

 

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

27

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

531

 

 

 

 

 

 

 

 

 

531

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,048

)

 

 

(10,048

)

BALANCE, June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,522,516

 

 

 

3

 

 

 

108,362

 

 

 

33

 

 

 

(44,987

)

 

 

63,411

 

Vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

160,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,082

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

61

 

Issuance of warrants related to loan and security agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

136

 

 

 

 

 

 

 

 

 

136

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

522

 

 

 

 

 

 

 

 

 

522

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,918

)

 

 

(10,918

)

BALANCE, September 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

22,765,930

 

 

$

3

 

 

$

109,081

 

 

$

19

 

 

$

(55,905

)

 

$

53,198

 

 

See notes to unaudited condensed consolidated financial statements.

 

7


 

LogicBio Therapeutics, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(28,663

)

 

$

(10,560

)

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