sldb-10q_20190630.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 June 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: 001-38360

 

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.)

 

 

 

141 Portland Street, Fifth Floor

Cambridge, MA

 

02139

(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, 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 1, 2019, the registrant had 46,001,329 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, 2019 and December 31, 2018

2

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018

3

 

Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2019 and 2018

4

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018

5

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018

7

 

Notes to the Condensed Consolidated Financial Statements

8

Item 2.

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

19

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

28

Item 4.

Controls and Procedures

28

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

72

Item 6.

Exhibits

73

 

Signatures

74

 

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,

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

51,836

 

 

$

86,366

 

Available-for-sale-securities

 

 

15,550

 

 

 

36,098

 

Prepaid expenses and other current assets

 

 

10,935

 

 

 

6,175

 

Total current assets

 

 

78,321

 

 

 

128,639

 

Property and equipment, net

 

 

11,829

 

 

 

10,422

 

Operating lease, right-of-use assets

 

 

5,618

 

 

 

 

Other non-current assets

 

 

209

 

 

 

209

 

Restricted cash

 

 

327

 

 

 

327

 

Total assets

 

$

96,304

 

 

$

139,597

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,600

 

 

$

3,691

 

Accrued expenses

 

 

6,007

 

 

 

8,235

 

Operating lease liabilities

 

 

1,610

 

 

 

 

Finance lease liabilities

 

 

176

 

 

 

173

 

Other current liabilities

 

 

278

 

 

 

382

 

Total current liabilities

 

 

13,671

 

 

 

12,481

 

Operating lease liabilities, excluding current portion

 

 

5,309

 

 

 

 

Finance lease liabilities, excluding current portion

 

 

829

 

 

 

859

 

Other non-current liabilities

 

 

 

 

 

1,074

 

Total liabilities

 

 

19,809

 

 

 

14,414

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 10,000,000 shares authorized

   at June 30, 2019 and December 31, 2018; no shares issued and

   outstanding at June 30, 2019 and December 31, 2018

 

 

 

 

 

 

Common stock, $0.001 par value; 300,000,000 shares authorized at

   June 30, 2019 and December 31, 2018; 35,398,894 shares issued and

   outstanding at June 30, 2019 and 35,432,460 shares issued and outstanding

   at December 31, 2018

 

 

35

 

 

 

35

 

Additional paid-in capital

 

 

331,620

 

 

 

324,209

 

Accumulated other comprehensive gain (loss)

 

 

3

 

 

 

(5

)

Accumulated deficit

 

 

(255,163

)

 

 

(199,056

)

Total stockholders’ equity

 

 

76,495

 

 

 

125,183

 

Total liabilities and stockholders’ equity

 

$

96,304

 

 

$

139,597

 

 

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

 

 

$

 

 

$

 

 

$

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

21,610

 

 

 

13,594

 

 

 

44,879

 

 

 

25,523

 

General and administrative

 

 

5,359

 

 

 

4,584

 

 

 

12,392

 

 

 

8,628

 

Total operating expenses

 

 

26,969

 

 

 

18,178

 

 

 

57,271

 

 

 

34,151

 

Loss from operations

 

 

(26,969

)

 

 

(18,178

)

 

 

(57,271

)

 

 

(34,151

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

367

 

 

 

80

 

 

 

875

 

 

 

145

 

Other income

 

 

77

 

 

 

118

 

 

 

289

 

 

 

149

 

Total other income (expense), net

 

 

444

 

 

 

198

 

 

 

1,164

 

 

 

294

 

Net loss

 

$

(26,525

)

 

$

(17,980

)

 

$

(56,107

)

 

$

(33,857

)

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

 

$

(0.76

)

 

$

(0.52

)

 

$

(1.61

)

 

$

(1.06

)

Weighted average shares of common stock outstanding, basic and diluted

 

 

34,843,344

 

 

 

34,449,758

 

 

 

34,810,101

 

 

 

31,916,295

 

 

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,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net loss

 

$

(26,525

)

 

$

(17,980

)

 

$

(56,107

)

 

$

(33,857

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(4

)

 

 

13

 

 

 

8

 

 

3

 

Comprehensive loss

 

$

(26,529

)

 

$

(17,967

)

 

$

(56,099

)

 

$

(33,854

)

 

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 / unit data)

 

 

 

For the Three Months Ended June 30, 2019

 

 

 

Series 2

Senior

Preferred

Units

 

 

Amount

 

 

Series 1

Senior

Preferred

Units

 

 

Amount

 

 

Junior

Preferred

Units

 

 

Amount

 

 

Series

A, B, C

and D

Common

Units

 

 

Amount

 

 

Common

Stock

 

 

Amount

 

 

Additional

paid

in capital

 

 

Accumulated

other

comprehensive

income (loss)

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance at March 31, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,414,914

 

 

$

35

 

 

$

327,709

 

 

$

7

 

 

$

(228,638

)

 

$

99,113

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,911

 

 

 

 

 

 

 

 

 

3,911

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,525

)

 

 

(26,525

)

Repurchase of shares of common

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,020

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on available for

   sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Balance at June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,398,894

 

 

$

35

 

 

$

331,620

 

 

$

3

 

 

$

(255,163

)

 

$

76,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

Series 2

Senior

Preferred

Units

 

 

Amount

 

 

Series 1

Senior

Preferred

Units

 

 

Amount

 

 

Junior

Preferred

Units

 

 

Amount

 

 

Series

A, B, C

and D

Common

Units

 

 

Amount

 

 

Common

Stock

 

 

Amount

 

 

Additional

paid

in capital

 

 

Accumulated

other

comprehensive

income (loss)

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance at December 31, 2018

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,432,460

 

 

$

35

 

 

$

324,209

 

 

$

(5

)

 

$

(199,056

)

 

$

125,183

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,411

 

 

 

 

 

 

 

 

 

7,411

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(56,107

)

 

 

(56,107

)

Repurchase of shares of common

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,566

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available for

   sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Balance at June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,398,894

 

 

$

35

 

 

$

331,620

 

 

$

3

 

 

$

(255,163

)

 

$

76,495

 

 

 

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

5


 

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited, in thousands, except share / unit data)

 

 

 

For the Three Months Ended June, 2018

 

 

 

Series 2

Senior

Preferred

Units

 

 

Amount

 

 

Series 1

Senior

Preferred

Units

 

 

Amount

 

 

Junior

Preferred

Units

 

 

Amount

 

 

Series

A, B, C

and D

Common

Units

 

 

Amount

 

 

Common

Stock

 

 

Amount

 

 

Additional

paid

in capital

 

 

Accumulated

other

comprehensive

income (loss)

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity

 

Balance at March 31, 2018

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,476,892

 

 

$

35

 

 

$

319,073

 

 

$

(23

)

 

$

(140,135

)

 

$

178,950

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,309

 

 

 

 

 

 

 

 

 

1,309

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,980

)

 

 

(17,980

)

Repurchase of shares of common

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32,100

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available for

   sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

13

 

Balance at June 30, 2018

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,444,792

 

 

$

35

 

 

$

320,382

 

 

$

(10

)

 

$

(158,115

)

 

$

162,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2018

 

 

 

Series 2

Senior

Preferred

Units

 

 

Amount

 

 

Series 1

Senior

Preferred

Units

 

 

Amount

 

 

Junior

Preferred

Units

 

 

Amount

 

 

Series

A, B, C

and D

Common

Units

 

 

Amount

 

 

Common

Stock

 

 

Amount

 

 

Additional

paid

in capital

 

 

Accumulated

other

comprehensive

income (loss)

 

 

Accumulated

Deficit

 

 

Total

Stockholders'

Equity (Deficit)

 

Balance at December 31, 2017

 

 

4,886,000

 

 

$

55,002

 

 

 

2,500,000

 

 

$

25,000

 

 

 

4,414,356

 

 

$

44,177

 

 

 

19,438,552

 

 

$

65,014

 

 

 

 

 

$

 

 

$

 

 

$

(13

)

 

$

(124,258

)

 

$

(59,257

)

Conversion of units into shares

   of common stock

 

 

(4,886,000

)

 

 

(55,002

)

 

 

(2,500,000

)

 

 

(25,000

)

 

 

(4,414,356

)

 

 

(44,177

)

 

 

(19,429,620

)

 

 

(65,180

)

 

 

26,498,559

 

 

 

26

 

 

 

189,333

 

 

 

 

 

 

 

 

$

124,179

 

Issuance of common stock upon

   initial public offering, net of

   issuance costs of $4,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,984,375

 

 

$

9

 

 

 

129,087

 

 

 

 

 

 

 

 

$

129,096

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

166

 

 

 

 

 

 

 

 

 

 

 

1,962

 

 

 

 

 

 

 

 

$

2,128

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,857

)

 

$

(33,857

)

Repurchase of common units/

   shares of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,932

)

 

 

 

 

 

(38,142

)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

Unrealized gain on available

   for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

$

3

 

Balance at June 30, 2018

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

35,444,792

 

 

$

35

 

 

$

320,382

 

 

$

(10

)

 

$

(158,115

)

 

$

162,292

 

 

 

 

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,