UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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, 2023

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-38630

Aridis Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware		47-2641188
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

983 University Avenue, Bldg. B
Los Gatos, California		95032
(Address of principal executive offices)		(Zip Code)

(408) 385-1742

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common Stock		ARDS		OTCQB

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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Small 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 7(a)(2)(B) of the Securities 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 shares of the registrant’s common stock, $0.0001 par value per share, outstanding at September 30, 2023 was 44,574,021.

Table of Contents

		Page

	PART I - FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2023, and 2022 (unaudited)	4

	Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three and nine months ended September 30, 2023, and 2022 (unaudited)	5

	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (unaudited)	6

	Notes to Condensed Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

Item 4.	Controls and Procedures	44

	PART II OTHER INFORMATION	44

Item 1.	Legal Proceedings	44

Item 1A.	Risk Factors	45

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	45

Item 3	Default Upon Senior Securities	45

Item 4	Mine Safety Disclosures	45

Item 5.	Other Information	45

Item 6.	Exhibits	46

Signatures		47

PART I — FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	September 30,			December 31,
	2023			2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	35		$	4,876
Restricted cash		—			183
Accounts receivable		417			1,000
Other receivables		100			240
Contract costs		—			1,986
Prepaid asset		3,558			3,341
Total current assets		4,110			11,626
Property and equipment, net		511			730
Right-of-use assets, net		1,073			1,417
Intangible assets, net		13			17
Restricted cash, non-current		500			500
Contract costs, non-current		—			78
Other assets		327			327
Total assets	$	6,534		$	14,695
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	5,410		$	2,308
Accrued liabilities		7,691			9,564
Lease liabilities		576			538
Contract liabilities		380			20,173
Note payable		—			519
Note payable (at fair value)		3,410			3,781
Other liabilities		15			15
Total current liabilities		17,482			36,898
Contract liabilities, non-current		—			737
Lease liabilities, non-current		854			1,292
Total liabilities		18,336			38,927
Commitments and contingencies (Note 12)
Stockholders’ deficit:
Preferred stock (par value $0.0001; 60,000,000 shares authorized; zero shares issued and outstanding as of September 30, 2023 and December 31, 2022)		—			—
Common stock (par value $0.0001; 100,000,000 shares authorized; 44,574,021 and 27,033,532 shares issued and outstanding as of September 30, 2023 and December 31, 2022)		5			3
Additional paid-in capital		170,827			166,380
Accumulated other comprehensive income		7,787			5,051
Accumulated deficit		(190,421	)		(195,666	)
Total stockholders’ deficit		(11,802	)		(24,232	)
Total liabilities and stockholders’ deficit	$	6,534		$	14,695

See accompanying notes to the condensed consolidated financial statements (unaudited).

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

	2023			2022			2023			2022
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue:
Grant revenue	$	417		$	399		$	1,544		$	1,878
License revenue		—			—			19,602			—
Total revenue		417			399			21,146			1,878
Operating expenses:
Research and development		175			6,118			10,374			18,916
General and administrative		1,111			1,693			4,235			5,535
Total operating expenses		1,286			7,811			14,609			24,451
(Loss) income from operations		(869	)		(7,412	)		6,537			(22,573	)
Other income (expense):
Interest income (expense), net		1			(27	)		31			(267	)
Other income		26			23			77			68
Change in fair value of note payable		759			(823	)		(1,400	)		(1,212	)
Net income (loss)	$	(83	)	$	(8,239	)	$	5,245		$	(23,984	)
Earnings (net loss) per share:
Basic	$	0.00		$	(0.47	)	$	0.15		$	(1.35	)
Diluted	$	0.00		$	(0.47	)	$	0.11		$	(1.35	)

Weighted-average common shares outstanding used in computing net loss per share available to common stockholders:
Basic		37,428,943			17,701,592			35,562,129			17,701,592
Diluted		37,428,943			17,701,592			47,178,967			17,701,592

Net income (loss)	$	(83	)	$	(8,239	)	$	5,245		$	(23,984	)
Other comprehensive (loss) income		1,261			—			2,736			—
Total comprehensive income (loss)	$	1,178		$	(8,239	)	$	7,981		$	(23,984	)

See accompanying notes to the condensed consolidated financial statements (unaudited).

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Deficit

(In thousands, except share amounts)

	Shares		Dollars		Capital		Deficit			Income		Deficit
	Three Months Ended September 30, 2023 (unaudited)
	Common Stock				Additional Paid-In		Accumulated			Accumulated Other Comprehensive		Total Stockholders’
	Shares		Dollars		Capital		Deficit			Income		Deficit
Balances as of June 30, 2023		36,077,532	$	4	$	168,894	$	(190,338	)	$	6,526	$	(14,914	)
Issuance of common stock in registered direct offering, net of issuance costs		4,000,000		1		1,683		—			—		1,684
Issuance of common stock upon exercise of warrants		3,462,000		—		—		—			—		—
Issuance of common stock in exchange for note modification		898,000		—		50		—			—		50
Issuance of common stock for restricted stock units		136,420		—		—		—			—		—
Stock-based compensation		—		—		200		—			—		200
Change in fair value of notes payable		—		—		—		—

SEC Form 10-Q filed by Aridis Pharmaceuticals Inc.