ardx-20210331

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 March 31, 2021


☐			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: 001-36485

ARDELYX, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware			26-1303944
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No)

34175 Ardenwood Boulevard, Fremont, California 94555

400 Fifth Avenue, Suite 210, Waltham, Massachusetts 02451

(Address of Principal Executive Offices) (Zip Code)

(510) 745-1700

(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

ARDX

The 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, or 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 ☒

The number of issued and outstanding shares of the registrant’s Common Stock, $0.0001 par value per share, as of May 3, 2021, was 98,709,188.

Table of Contents

ARDELYX, INC.


			PAGE
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:			2
Condensed Balance Sheets (unaudited)			2
Condensed Statements of Operations and Comprehensive Loss (unaudited)			3
Condensed Statements of Changes in Stockholders' Equity (unaudited)			4
Condensed Statements of Cash Flows (unaudited)			6
Notes to Condensed Financial Statements (unaudited)			7
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			31

PART II. OTHER INFORMATION

Item 1. Legal Proceedings			32
Item 1A. Risk Factors			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			69
Item 3. Defaults Upon Senior Securities			70
Item 4. Mine Safety Disclosures			70
Item 5. Other Information			70
Item 6. Exhibits			71
Signatures			72

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ARDELYX, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)


	March 31, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	84,070	$	91,032
Short-term investments	94,142		95,452
Accounts receivable	5,783		—
Prepaid expenses and other current assets	21,381		8,202
Total current assets	205,376		194,686
Property and equipment, net	2,292		1,936
Long-term investments	—		2,114
Right-of-use assets, net	1,667		2,274
Other assets	958		552
Total assets	$	210,293	$	201,562
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,378	$	5,626
Accrued compensation and benefits	4,348		5,672
Current portion of operating lease liability	1,412		2,117
Loan payable, current portion	16,667		4,167
Deferred revenue	2,723		4,177
Accrued expenses and other current liabilities	11,262		6,657
Total current liabilities	41,790		28,416
Operating lease liability, net of current portion	397		413
Loan payable, net of current portion	34,348		46,621
Deferred revenue, non-current	2,947		—
Total liabilities	79,482		75,450
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.	—		—
Common stock, $0.0001 par value; 300,000,000 shares authorized; 98,688,577 and 93,599,975 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.	10		9
Additional paid-in capital	718,728		680,872
Accumulated deficit	(587,920)		(554,765)
Accumulated other comprehensive income	(7)		(4)
Total stockholders’ equity	130,811		126,112
Total liabilities and stockholders’ equity	$	210,293	$	201,562

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

Table of Contents

ARDELYX, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended March 31,
	2021		2020
Revenues:
Collaborative development revenue	$	1,454	$	1,175
Product supply revenue	126		38
Licensing revenue	5,002		—
Total revenues	6,582		1,213
Operating expenses:
Cost of revenue	1,000		—
Research and development	20,456		15,844
General and administrative	17,131		7,138
Total operating expenses	38,587		22,982
Loss from operations	(32,005)		(21,769)
Interest expense	(1,100)		(1,357)
Other income (expense), net	(49)		753
Loss before provision for income taxes	(33,154)		(22,373)
Provision for income taxes	1		—
Net loss	$	(33,155)	$	(22,373)
Net loss per common share, basic and diluted	$	(0.34)	$	(0.25)
Shares used in computing net loss per share - basic and diluted	97,179,241		88,880,658
Comprehensive loss:
Net loss	$	(33,155)	$	(22,373)
Unrealized (losses) gains on available-for-sale securities	(3)		(64)
Comprehensive loss	$	(33,158)	$	(22,437)

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

Table of Contents

ARDELYX, INC.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

For the Three Months ended March 31, 2021 and 2020

(Unaudited)

(in thousands, except shares)


	Three Months Ended March 31, 2021
	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Stockholders' Equity
	Shares	Amount
Balance as of December 31, 2020	93,599,975	$	9	$	680,872	$	(554,765)	$	(4)	$

SEC Form 10-Q filed by Ardelyx, Inc.