Form 10-Q

Large accelerated filer

Accelerated filer

Non-accelerated
filer

Smaller reporting company

Emerging growth company

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, 2021

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

FOR THE TRANSITION PERIOD FROM

Commission File Number

001-36500

CymaBay Therapeutics, Inc.

(Exact name of registrant as specified in its charter)


Delaware		94-3103561
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7575 Gateway Blvd, Suite 110 Newark, CA		94560
(Address of principal executive offices)		(Zip Code)

(510)

293-8800

(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 o f each exchange on which registered
Common stock, $0.0001 par value per share	CBAY	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.

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 October 31, 2021, there were 69,043,969

shares of the registrant’s common stock outstanding.

Table of Contents

CYMABAY THERAPEUTICS, INC.

QUARTERLY REPORT ON

FORM 10-Q

TABLE OF CONTENTS


		Page
PART I	FINANCIAL INFORMATION		3
Item 1.	Financial Statements		3
	Condensed Consolidated Balance Sheets at September 30, 2021 and December 31, 2020 (unaudited)		3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (unaudited)		5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)		6
	Notes to Condensed Consolidated Financial Statements (unaudited)		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		25
Item 4.	Controls and Procedures		25

PART II	OTHER INFORMATION		26
Item 1.	Legal Proceedings		26
Item 1A.	Risk Factors		26
Item 6.	Exhibits		50
Signatures			51

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CymaBay Therapeutics, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

(unaudited)


	September 30,			December 31,
	2021			2020
Assets
Current assets:


Cash and cash equivalents	$	68,963		$	28,193
Marketable securities		44,825			118,130
Accrued interest receivable		69			277
Prepaid research and development expenses		5,071			2,221
Other prepaid expenses and current assets		648			2,764

Total current assets		119,576			151,585
Property and equipment, net		1,341			1,761
Operating lease right-of-use asset		264			272
Other assets		1,721			207

Total assets	$	122,902		$	153,825

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	764		$	231
Accrued research and development expenses		6,451			4,698
Other accrued liabilities		4,526			4,928

Total current liabilities		11,741			9,857
Development financing liability		23,259			—
Long-term portion of operating lease liability		844			1,262

Total liabilities		35,844			11,119
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value: 10,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.0001 par value: 200,000,000 shares authorized; 69,043,969 and 68,946,092 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively		7			7
Additional paid-in capital		827,365			819,549
Accumulated other comprehensive (loss) income		(1	)		8
Accumulated deficit		(740,313	)		(676,858	)

Total stockholders’ equity		87,058			142,706

Total liabilities and stockholders’ equity	$	122,902		$	153,825

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

CymaBay Therapeutics, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except share and per share information)

(unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Operating expenses:

Research and development	$	17,010		$	7,743		$	46,137		$	25,194
General and administrative		5,179			3,907			16,936			11,535

Total operating expenses		22,189			11,650			63,073			36,729

Loss from operations		(22,189	)		(11,650	)		(63,073	)		(36,729	)
Other income (expense), net:
Interest income		29			229			140			1,494
Interest expense		(522	)		—			(522	)		—

Total other income (expense), net		(493	)		229			(382	)		1,494

Net loss	$	(22,682	)	$	(11,421	)	$	(63,455	)	$	(35,235	)

Other comprehensive (loss) income:
Unrealized (loss) gain on marketable securities		(2	)		(104	)		(9	)		2

Total other comprehensive (loss) income		(2	)		(104	)		(9	)		2

Comprehensive loss	$	(22,684	)	$	(11,525	)	$	(63,464	)	$	(35,233	)

Basic and diluted net loss per common share	$	(0.33	)	$	(0.17	)	$	(0.92	)	$	(0.51	)
Weighted average common shares outstanding used to calculate basic and diluted net loss per common share		69,022,937			68,887,092			68,985,112			68,884,894

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

CymaBay Therapeutics, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)


	Nine Months Ended
	September 30,
	2021			2020
Operating activities

Net loss	$	(63,455	)	$	(35,235	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		515			468
Stock-based compensation expense		7,611			5,513
Accretion of development financing liability		522			—
Write-off of deferred financing costs		312			—
Net accretion and amortization of investments in marketable securities		543			(240	)
Changes in assets and liabilities:
Interest receivable and other current assets		765			42
Prepaid expenses		(1,490	)		7,071
Other assets		(1,514	)		—
Accounts payable		512			(1,556	)
Accrued liabilities		491			(5,972	)

Net cash used in operating activities		(55,188	)		(29,909	)
Investing activities
Purchases of property and equipment		(87	)		(21	)
Purchases of marketable securities		(44,607	)		(153,951	)
Proceeds from maturities of marketable securities		117,360			206,278

SEC Form 10-Q filed by CymaBay Therapeutics Inc.