UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


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

For the quarterly period ended March 31, 2022


☐	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: 001-37544

ARMATA PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)


Washington	91-1549568
(State or other jurisdiction of	(I.R.S. Employer Identification Number)
incorporation or organization)

4503 Glencoe Avenue
Marina del Rey, CA	90292
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (310) 665-2928

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, $0.01 par value per share	ARMP	NYSE American

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 as defined in Rule 12b-2 of the Exchange Act. 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 shares of the registrant’s Common Stock, par value $0.01 per share, outstanding as of May 6, 2022 was 36,112,299.

Table of Contents

TABLE OF CONTENTS


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Operations	4

	Condensed Consolidated Statements of Stockholders’ Equity	5

	Condensed Consolidated Statements of Cash Flows	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23

Item 4.	Controls and Procedures	23

PART II. OTHER INFORMATION		23

Item 1.	Legal Proceedings	23

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51

Item 3.	Defaults upon Senior Securities	52

Item 4.	Mine Safety Disclosures	52

Item 5.	Other Information	52

Item 6.	Exhibits	52

SIGNATURES		54

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Armata Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets


	March 31, 2022		December 31, 2021
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	46,408,000	$	10,288,000
Awards receivable		1,236,000		2,989,000
Prepaid expenses and other current assets		1,055,000		1,718,000
Total current assets		48,699,000		14,995,000
Restricted cash		5,960,000		1,200,000
Property and equipment, net		2,249,000		2,220,000
Operating lease right-of-use asset		35,416,000		35,852,000
In-process research and development		10,256,000		10,256,000
Goodwill		3,490,000		3,490,000
Other assets		1,695,000		1,755,000
Total assets	$	107,765,000	$	69,768,000

Liabilities and stockholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	3,437,000	$	2,270,000
Accrued compensation		1,269,000		1,035,000
Current portion of operating lease liabilities		1,520,000		1,509,000
Total current liabilities		6,226,000		4,814,000
Operating lease liabilities, net of current portion		36,923,000		36,480,000
Deferred tax liability		3,077,000		3,077,000
Total liabilities		46,226,000		44,371,000

Stockholders’ equity
Common stock, $0.01 par value; 217,000,000 shares authorized; 36,112,053 and 27,112,299 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		361,000		271,000
Additional paid-in capital		272,809,000		227,983,000
Accumulated deficit		(211,631,000)		(202,857,000)
Total stockholders’ equity		61,539,000		25,397,000
Total liabilities and stockholders’ equity	$	107,765,000	$	69,768,000

See accompanying notes to condensed consolidated financial statements.

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Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations


	Three Months Ended
	March 31,
	2022		2021
	(unaudited)		(unaudited)

Grant revenue	$	1,236,000	$	1,066,000
Operating expenses
Research and development		8,028,000		4,350,000
General and administrative		1,983,000		2,151,000
Total operating expenses		10,011,000		6,501,000
Loss from operations		(8,775,000)		(5,435,000)
Other income (expense)
Interest income		1,000		2,000
Interest expense		—		(62,000)
Total other income (expense), net		1,000		(60,000)
Net loss	$	(8,774,000)	$	(5,495,000)
Per share information:
Net loss per share, basic and diluted	$	(0.30)	$	(0.27)
Weighted average shares outstanding, basic and diluted		28,996,499		20,458,355

See accompanying notes to condensed consolidated financial statements.

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Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2022 and 2021

(unaudited)


	Stockholders’ Equity
	Common Stock
				Additional				Total
				Paid-in		Accumulated		Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balances, December 31, 2020	18,688,461	$	187,000	$	198,372,000	$	(179,702,000)	$	18,857,000
Sale of common stock, net of issuance costs	6,153,847		61,000		19,302,000		—		19,363,000
Exercise of warrants	52,000		1,000		290,000		—		291,000
Exercise of stock options	46,134		—		154,000		—		154,000
Stock-based compensation	—		—		842,000		—		842,000
Net loss	—		—		—		(5,495,000)		(5,495,000)
Balances, March 31, 2021	24,940,442	$	249,000	$	218,960,000	$	(185,197,000)	$	34,012,000


	Stockholders’ Equity
	Common Stock
				Additional				Total
				Paid-in		Accumulated		Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balances, December 31, 2021	27,112,299	$	271,000	$	227,983,000	$	(202,857,000)	$	25,397,000
Forfeiture of restricted stock awards	(246)		—		—		—		—
Sale of common stock, net of issuance costs	9,000,000		90,000		44,333,000		—		44,423,000
Stock-based compensation	—		—		493,000		—		493,000
Net loss	—		—		—		(8,774,000)		(8,774,000)
Balances, March 31, 2022	36,112,053	$	361,000	$	272,809,000	$	(211,631,000)	$	61,539,000

See accompanying notes to condensed consolidated financial statements.

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Armata Pharmaceuticals, Inc.

Condensed Consolidated Statements of Cash Flows


	Three Months Ended March 31,
	2022		2021
	(unaudited)		(unaudited)
Operating activities:
Net loss	$	(8,774,000)	$	(5,495,000)
Adjustments required to reconcile net loss to net cash used in operating activities:
Depreciation		226,000		281,000
Stock-based compensation		493,000		842,000
Non-cash interest expense		—		62,000
Payment of accreted interest for deferred consideration for asset acquisition		—		(586,000)
Changes in operating assets and liabilities:
Award receivable		1,753,000		(564,000)
Accounts payable and accrued liabilities		940,000		(409,000)
Accrued compensation		234,000		330,000
Operating lease right-of-use asset and liability, net		890,000		49,000
Prepaid expenses and other current assets		723,000		15,000
Net cash used in operating activities		(3,515,000)		(5,475,000)
Investing activities:
Purchases of property and equipment		(236,000)		(298,000)
Net cash used in investing activities		(236,000)		(298,000)
Financing activities:
Principal payment of deferred consideration for asset acquisition		—		(1,414,000)
Proceeds from sale of common stock, net of offering costs		44,631,000		19,548,000
Proceeds from exercise of warrants and stock options		—		445,000
Net cash provided by financing activities		44,631,000		18,579,000
Net increase in cash, cash equivalents and restricted cash		40,880,000		12,806,000
Cash, cash equivalents and restricted cash, beginning of period		11,488,000		10,849,000
Cash, cash equivalents and restricted cash, end of period	$	52,368,000	$	23,655,000
Supplemental disclosure of cash flow information:

SEC Form 10-Q filed by Armata Pharmaceuticals Inc.