10-Q
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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 June 30, 2023

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: 001-38360

Solid Biosciences Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware

 

90-0943402

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

500 Rutherford Avenue, Third Floor

Charlestown, MA

 

02129

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (617) 337-4680

 

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

Title of each class

Trading Symbol

Name of exchange on which registered

Common Stock $0.001 par value per share

SLDB

The Nasdaq Global Select 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 August 08, 2023, the registrant had 20,060,039 shares of common stock, $0.001 par value per share, outstanding.


 

Table of Contents

Page

PART I.

FINANCIAL INFORMATION

2

Item 1.

Financial Statements (Unaudited)

2

Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022

2

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022

3

Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023 and 2022

4

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022

5

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022

7

Notes to the Condensed Consolidated Financial Statements

8

Item 2.

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

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

PART II.

OTHER INFORMATION

31

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

84

Item 6.

Exhibits

85

Signatures

86

 

1


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

91,569

 

 

$

155,384

 

Available-for-sale securities

 

 

68,623

 

 

 

58,338

 

Prepaid expenses and other current assets

 

 

7,283

 

 

 

5,916

 

Total current assets

 

 

167,475

 

 

 

219,638

 

Operating lease, right-of-use assets

 

 

27,841

 

 

 

28,949

 

Property and equipment, net

 

 

7,391

 

 

 

9,657

 

Other non-current assets

 

 

181

 

 

 

175

 

Restricted cash

 

 

1,833

 

 

 

1,833

 

Total assets

 

$

204,721

 

 

$

260,252

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,968

 

 

$

3,238

 

Accrued expenses

 

 

10,509

 

 

 

16,691

 

Operating lease liabilities

 

 

1,853

 

 

 

1,897

 

Finance liabilities and finance lease liabilities

 

 

419

 

 

 

668

 

Other current liabilities

 

 

117

 

 

 

14

 

Total current liabilities

 

 

15,866

 

 

 

22,508

 

Operating lease liabilities, excluding current portion

 

 

23,645

 

 

 

24,279

 

Finance liabilities and finance lease liabilities, excluding current portion

 

 

1,482

 

 

 

1,703

 

Other non-current liabilities

 

 

 

 

 

96

 

Total liabilities

 

 

40,993

 

 

 

48,586

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

Preferred stock, $0.001 par value; 10,000,000 shares authorized
   at June 30, 2023 and December 31, 2022;
no shares issued and
   outstanding at June 30, 2023 and December 31, 2022

 

 

 

 

 

Common stock, $0.001 par value; 60,000,000 shares authorized at
   June 30, 2023 and December 31, 2022;
20,044,389 shares
    issued and outstanding at June 30, 2023 and
19,556,732 
   shares issued and outstanding at December 31, 2022

 

 

20

 

 

 

20

 

Additional paid-in capital

 

 

781,131

 

 

 

774,452

 

Accumulated other comprehensive income (loss)

 

 

14

 

 

 

(68

)

Accumulated deficit

 

 

(617,437

)

 

 

(562,738

)

Total stockholders’ equity

 

 

163,728

 

 

 

211,666

 

Total liabilities and stockholders’ equity

 

$

204,721

 

 

$

260,252

 

 

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

2


 

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except share and per share data)

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Collaboration revenue - related party

 

$

 

 

$

6,169

 

 

$

 

 

$

8,094

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

19,777

 

 

 

23,180

 

 

 

44,408

 

 

 

43,125

 

General and administrative

 

 

7,129

 

 

 

6,851

 

 

 

14,528

 

 

 

14,203

 

Restructuring Charges

 

 

(63

)

 

 

1,520

 

 

 

(63

)

 

 

1,520

 

Total operating expenses

 

 

26,843

 

 

 

31,551

 

 

 

58,873

 

 

 

58,848

 

Loss from operations

 

 

(26,843

)

 

 

(25,382

)

 

 

(58,873

)

 

 

(50,754

)

Other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

1,949

 

 

 

293

 

 

 

3,627

 

 

 

347

 

Other income (expense), net

 

 

265

 

 

 

(3

)

 

 

547

 

 

 

(13

)

Total other income, net

 

 

2,214

 

 

 

290

 

 

 

4,174

 

 

 

334

 

Net loss

 

$

(24,629

)

 

$

(25,092

)

 

$

(54,699

)

 

$

(50,420

)

Net loss per share attributable to common stockholders,
   basic and diluted

 

$

(1.25

)

 

$

(3.33

)

 

$

(2.79

)

 

$

(6.71

)

Weighted average shares of common stock outstanding,
   basic and diluted

 

 

19,663,672

 

 

 

7,523,964

 

 

 

19,618,517

 

 

 

7,515,673

 

 

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

3


 

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net loss

 

$

(24,629

)

 

$

(25,092

)

 

$

(54,699

)

 

$

(50,420

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale securities

 

 

9

 

 

 

(71

)

 

 

82

 

 

 

(77

)

Comprehensive loss

 

$

(24,620

)

 

$

(25,163

)

 

$

(54,617

)

 

$

(50,497

)

 

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

4


 

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited, in thousands, except share data)

 

 

 

 

For the Three Months Ended June 30, 2023

 

 

 

Common
Stock

 

 

Amount

 

 

Additional
Paid
in Capital

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Accumulated
Deficit

 

 

Total
Stockholders'
Equity

 

Balance at March 31, 2023

 

 

19,573,132

 

 

$

20

 

 

$

776,570

 

 

$

5

 

 

$

(592,808

)

 

 

183,787

 

Equity-based compensation

 

 

 

 

 

 

 

 

1,944

 

 

 

 

 

 

 

 

 

1,944

 

Vesting of restricted stock units

 

 

36,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of common stock, net of issuance costs of $65

 

 

420,000

 

 

 

 

 

 

2,539

 

 

 

 

 

 

 

 

 

2,539

 

Issuance of common stock in connection with employee stock purchase plan

 

 

14,936

 

 

 

 

 

 

78

 

 

 

 

 

 

 

 

 

78

 

Unrealized gain on available-for-sale
   securities

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,629

)

 

 

(24,629

)

Balance at June 30, 2023

 

 

20,044,389

 

 

$

20

 

 

$

781,131

 

 

$

14

 

 

$

(617,437

)

 

$

163,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2023

 

 

 

Common
Stock

 

 

Amount

 

 

Additional
Paid
in Capital

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Accumulated
Deficit

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2022

 

 

19,556,732

 

 

$

20

 

 

$

774,452

 

 

$

(68

)

 

$

(562,738

)

 

 

211,666

 

Equity-based compensation

 

 

 

 

 

 

 

 

4,062

 

 

 

 

 

 

 

 

 

4,062

 

Vesting of restricted stock units

 

 

52,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of common stock, net of issuance costs of $65

 

 

420,000

 

 

 

 

 

 

2,539

 

 

 

 

 

 

 

 

 

2,539

 

Issuance of common stock in connection with employee stock purchase plan

 

 

14,936

 

 

 

 

 

 

78

 

 

 

 

 

 

 

 

 

78

 

Unrealized gain on available-for-sale
   securities

 

 

 

 

 

 

 

 

 

 

 

82

 

 

 

 

 

 

82

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54,699

)

 

 

(54,699

)

Balance at June 30, 2023

 

 

20,044,389

 

 

$

20

 

 

$

781,131

 

 

$

14

 

 

$

(617,437

)

 

$

163,728

 

 

5


 

 

 

For the Three Months Ended June 30, 2022

 

 

 

Common
Stock

 

 

Amount

 

 

Additional
Paid
in Capital

 

 

Accumulated
Other
Comprehensive
Loss

 

 

Accumulated
Deficit

 

 

Total
Stockholders'
Equity

 

Balance at March 31, 2022

 

 

7,518,753

 

 

$

7

 

 

$

687,640

 

 

$

(51

)

 

$

(502,085

)

 

$

185,511

 

Equity-based compensation

 

 

 

 

 

 

 

 

1,814

 

 

 

 

 

 

 

 

 

1,814

 

Vesting of restricted stock units

 

 

2,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock in connection with employee stock purchase plan

 

 

10,189

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

73

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(71

)

 

 

 

 

 

(71

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,092

)

 

 

(25,092

)

Balance at June 30, 2022

 

 

7,530,980

 

 

$

7

 

 

$

689,527

 

 

$

(122

)

 

$

(527,177

)

 

$

162,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2022

 

 

 

Common
Stock

 

 

Amount

 

 

Additional
Paid
In capital

 

 

Accumulated
Other
Comprehensive
Income (Loss)

 

 

Accumulated
Deficit

 

 

Total
Stockholders'
Equity

 

Balance at December 31, 2021

 

 

7,499,905

 

 

$

7

 

 

$

685,006

 

 

$

(45

)

 

$

(476,757

)

 

$

208,211

 

Equity-based compensation

 

 

 

 

 

 

 

 

4,426

 

 

 

 

 

 

 

 

 

4,426

 

Exercise of pre-funded warrants

 

 

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

 

22

 

Vesting of restricted stock units

 

 

20,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock in connection with employee stock purchase plan

 

 

10,190

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

73

 

Forfeiture of restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(77

)

 

 

 

 

 

(77

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,420

)

 

 

(50,420

)

Balance at June 30, 2022

 

 

7,530,980

 

 

$

7

 

 

$

689,527

 

 

$

(122

)

 

$

(527,177

)

 

$

162,235

 

 

 

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

6


 

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(54,699

)

 

$

(50,420

)

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

 

 

 

 

 

 

Amortization of (discount) premium on available-for-sale securities

 

 

(273

)

 

 

526

 

Equity-based compensation expense

 

 

4,062

 

 

 

4,426

 

Depreciation and impairment expense

 

 

1,780

 

 

 

1,431

 

Gain on termination of lease

 

 

 

 

 

(249

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other current and non-current assets

 

 

962

 

 

 

586

 

Accounts receivable - related party

 

 

 

 

 

110

 

Accounts payable

 

 

31

 

 

 

373