10-Q

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, 2022

☐	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 of 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.


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 October 31, 2022, there were 84,681,063 shares of the registrant’s common stock outstanding.

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, 2022 and December 31, 2021 (unaudited)		3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (unaudited)		5
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)		6
	Notes to Condensed Consolidated Financial Statements (unaudited)		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		24
Item 4.	Controls and Procedures		24

PART II	OTHER INFORMATION		25
Item 1.	Legal Proceedings		25
Item 1A.	Risk Factors		25
Item 6.	Exhibits		48

Signatures			49

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, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	30,691		$	125,806
Marketable securities		122,724			60,729
Prepaid research and development expenses		668			2,371
Other prepaid expenses and current assets		1,041			2,193

Total current assets		155,124			191,099
Property and equipment, net		845			1,178
Non-current marketable securities		—			8,067
Operating lease right-of-use asset		197			254
Other assets		3,081			1,720

Total assets	$	159,247		$	202,318

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	479		$	2,728
Accrued research and development expenses		6,622			9,752
Other accrued liabilities		5,610			5,886

Total current liabilities		12,711			18,366
Development financing liability		86,152			50,320
Long-term portion of operating lease liability		206			695

Total liabilities		99,069			69,381
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; 84,681,063 and 84,677,939 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively		8			8
Additional paid-in capital		906,968			899,798
Accumulated other comprehensive loss		(574	)		(13	)
Accumulated deficit		(846,224	)		(766,856	)

Total stockholders’ equity		60,178			132,937

Total liabilities and stockholders’ equity	$	159,247		$	202,318

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,
	2022			2021			2022			2021
Operating expenses:
Research and development	$	15,459		$	17,010		$	51,765		$	46,137
General and administrative		5,904			5,179			17,869			16,936

Total operating expenses		21,363			22,189			69,634			63,073

Loss from operations		(21,363	)		(22,189	)		(69,634	)		(63,073	)
Other income (expense), net:
Interest income		677			29			1,098			140
Interest expense		(3,819	)		(522	)		(10,832	)		(522	)

Total other income (expense), net		(3,142	)		(493	)		(9,734	)		(382	)

Net loss	$	(24,505	)	$	(22,682	)	$	(79,368	)	$	(63,455	)

Other comprehensive loss:
Unrealized loss on marketable securities		(133	)		(2	)		(561	)		(9	)

Total other comprehensive loss		(133	)		(2	)		(561	)		(9	)

Comprehensive loss	$	(24,638	)	$	(22,684	)	$	(79,929	)	$	(63,464	)
Basic and diluted net loss per common share	$	(0.28	)	$	(0.33	)	$	(0.90	)	$	(0.92	)
Weighted average common shares outstanding used to calculate basic and diluted net loss per common share		87,804,272			69,022,937			87,803,388			68,985,112

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,
	2022			2021
Operating activities
Net loss	$	(79,368	)	$	(63,455	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		525			515
Stock-based compensation expense		7,156			7,611
Write-off of deferred financing costs		—			312
Accretion of development financing liability		10,832			522
Net accretion and amortization of investments in marketable securities		(283	)		543
Changes in assets and liabilities:
Other prepaid expenses and current assets		2,855			(725	)
Other assets		(1,413	)		(1,514	)
Accounts payable		(2,061	)		512
Accrued research and development expenses		(3,130	)		1,660
Other accrued liabilities		(437	)		(1,169	)

Net cash used in operating activities		(65,324	)		(55,188	)
Investing activities
Purchases of property and equipment		(135	)		(87	)
Purchases of marketable securities		(162,346	)		(44,607	)
Proceeds from maturities of marketable securities		108,140			117,360

Net cash (used in) provided by investing activities		(54,341	)		72,666
Financing activities
Proceeds from issuance of common stock pursuant to equity award plans		9			205
Proceeds from development financing, net of transaction costs		25,000			23,087
Issuance costs paid for issuance of common stock		(459	)		—

Net cash provided by financing activities		24,550			23,292

Net (decrease) increase in cash and cash equivalents		(95,115	)		40,770
Cash and cash equivalents at beginning of period		125,806			28,193

Cash and cash equivalents at end of period	$	30,691		$	68,963

Supplemental disclosure
Cash paid for amounts included in the measurement of lease liabilities	$	513		$	498
Supplemental non-cash investing and financing activities
Accrued financing costs	$	—		$	350
Accrued costs for other assets	$	52		$	—

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

CymaBay Therapeutics, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share information)

(unaudited)


	Three and Nine Months Ended September 30, 2022
							Accumulated
					Additional		Other						Total
	Common Stock				Paid-in		Comprehensive			Accumulated			Stockholders’
	Shares		Amount		Capital		Loss			Deficit			Equity

Balances as of December 31, 2021		84,677,939	$	8	$	899,798	$	(13	)	$	(766,856	)	$	132,937
Issuance costs related to issuance of common stock and pre-funded warrants		—		—		5		—			—			5
Stock-based compensation expense		—		—		2,414		—			—			2,414
Net loss		—		—		—		—			(27,769	)		(27,769	)
Net unrealized loss on marketable securities		—		—		—		(206	)		—			(206	)

Balances as of March 31, 2022		84,677,939	$	8	$	902,217	$	(219	)	$	(794,625	)	$	107,381

Stock-based compensation expense		—		—		2,392		—			—			2,392
Net loss		—		—		—		—			(27,094	)		(27,094	)
Net unrealized loss on marketable securities		—		—		—		(222	)		—			(222	)

Balances as of June 30, 2022		84,677,939	$	8	$	904,609	$	(441	)	$	(821,719	)	$	82,457

Issuance of common stock upon exercise of stock options		3,124		—		9		—			—			9
Stock-based compensation expense		—		—		2,350		—			—			2,350
Net loss		—		—		—		—			(24,505	)		(24,505	)
Net unrealized loss on marketable securities		—		—		—

SEC Form 10-Q filed by CymaBay Therapeutics Inc.