edit-20240630

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 June 30, 2024


☐			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 001-37687

_______________________________

EDITAS MEDICINE, INC.

(Exact name of registrant as specified in its charter)

_______________________________


Delaware (State or other jurisdiction of incorporation or organization)						46-4097528 (I.R.S. Employer Identification No.)

11 Hurley Street Cambridge, Massachusetts (Address of principal executive offices)						02141 (Zip Code)

(617) 401-9000

(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	EDIT	The Nasdaq Stock Market LLC

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 ☒

The number of shares of Common Stock outstanding as of August 2, 2024 was 82,476,436.


		Page

PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024 and 2023	5
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28

PART II. OTHER INFORMATION		30

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 5.	Other Information	30
Item 6.	Exhibits	31

Signatures		32


	June 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	64,441	$	123,652
Marketable securities	214,671		199,459
Accounts receivable	244		10,187
Prepaid expenses and other current assets	6,998		7,531
Total current assets	286,354		340,829
Marketable securities	39,195		104,024
Property and equipment, net	14,156		12,032
Right-of-use assets	36,951		33,680
Restricted cash and other non-current assets	8,145		8,588
Total assets	$	384,801	$	499,153
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	13,769	$	8,269
Accrued expenses	27,669		34,563
Deferred revenue, current	14,684		8,221
Operating lease liabilities	18,184		12,164
Total current liabilities	74,306		63,217
Operating lease liabilities, net of current portion	20,514		24,372
Deferred revenue, net of current portion	54,204		60,667
Other non-current liabilities	3,768		1,800
Total liabilities	152,792		150,056
Stockholders’ equity
Preferred stock, $0.0001 par value per share: 5,000,000 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.0001 par value per share: 195,000,000 shares authorized; 82,429,514 and 81,767,263 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	8		8
Additional paid-in capital	1,593,350		1,580,241
Accumulated other comprehensive (loss) income	(442)		198
Accumulated deficit	(1,360,907)		(1,231,350)
Total stockholders’ equity	232,009		349,097
Total liabilities and stockholders’ equity	$	384,801	$	499,153


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Collaboration and other research and development revenues	$	513	$	2,887	$	1,649	$	12,738
Operating expenses:
Research and development	54,210		29,779		102,997		67,583
General and administrative	18,206		17,202		37,545		40,211
Total operating expenses	72,416		46,981		140,542		107,794
Operating loss	(71,903)		(44,094)		(138,893)		(95,056)
Other income, net:
Other (expense) income, net	(1)		(7)		5		(1,590)
Interest income, net	4,297		3,811		9,331		7,320
Total other income, net	4,296		3,804		9,336		5,730
Net loss	$	(67,607)	$	(40,290)	$	(129,557)	$	(89,326)
Net loss per share, basic and diluted	$	(0.82)	$	(0.56)	$	(1.58)	$	(1.27)
Weighted-average common shares outstanding, basic and diluted	82,310,368		71,376,678		82,124,603		70,157,204


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2023	81,767,263	$	8	$	1,580,241	$	198	$	(1,231,350)	$	349,097
Exercise of stock options	21,975	—		192		—		—		192
Vesting of restricted common stock awards	445,713	—		—		—		—		—
Stock-based compensation expense	—	—		7,585		—		—		7,585
Unrealized loss on marketable debt securities	—	—		—		(524)		—		(524)
Net loss	—	—		—		—		(61,950)		(61,950)
Balance at March 31, 2024	82,234,951	$	8	$	1,588,018	$	(326)	$	(1,293,300)	$	294,400


Stock-based compensation expense	—	—		5,010		—		—		5,010
Vesting of restricted common stock awards	121,643	—		—		—		—		—
Issuance of common stock under employee stock purchase plan	72,920	—		322		—		—		322
Unrealized loss on marketable debt securities	—	—		—		(116)		—		(116)
Net loss	—	—		—		—		(67,607)		(67,607)
Balance at June 30, 2024	82,429,514	$	8	$	1,593,350	$	(442)	$	(1,360,907)	$	232,009


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2022	68,847,382	$	7	$	1,442,405	$	(3,601)	$	(1,078,131)	$	360,680

Vesting of restricted common stock awards	146,209	—		—		—		—		—
Stock-based compensation expense	—	—		4,507		—		—		4,507
Unrealized gain on marketable debt securities	—	—		—		1,322		—		1,322
Net loss	—	—		—		—		(49,036)		(49,036)
Balance at March 31, 2023	68,993,591	$	7	$	1,446,912	$	(2,279)	$	(1,127,167)	$	317,473
Issuance of common stock from public offering, net commissions, underwriting discounts and offering costs	12,500,000	1		117,078		—		—		117,079
Exercise of stock options	3,122	—		11		—		—		11
Stock-based compensation expense	—	—		5,215		—		—		5,215
Vesting of restricted common stock awards	64,492	—		—		—		—		—
Issuance of common stock under employee stock purchase plan	55,704	—		435		—		—		435
Unrealized loss on marketable debt securities	—	—		—		(6)		—		(6)
Net loss	—	—		—		—		(40,290)		(40,290)
Balance at June 30, 2023	81,616,909	$	8	$	1,569,651	$	(2,285)	$	(1,167,457)	$	399,917


Fixed asset additions included in accounts payable and accrued expenses	$	54	$	212
Offering expenses included in accounts payable and accrued expenses	—		230
Cash paid in connection with operating lease liabilities	7,683		5,738
Remeasurement of operating lease liabilities and right-of-use assets due to lease modification	794		1,069
Commencement of right-of-use asset	7,844		—


	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash equivalents and marketable securities:
Government agency securities	$	39,937	$	—	$	—	$	(117)	$	39,820
U.S. Treasuries	205,360		—		18		(309)		205,069
Money market funds	64,441		—		—		—		64,441
Corporate notes/bonds	9,011		—		—		(34)		8,977

Total	$	318,749	$	—	$	18	$	(460)	$	318,307


	June 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents:
Money market funds	$	64,441	$	64,441	$	—	$	—
Marketable securities:
Government agency securities	39,820		—		39,820		—
Corporate notes/bonds	8,977		—		8,977		—

U.S. Treasuries	205,069		205,069		—		—
Restricted cash and other non-current assets:
Money market funds	3,877		3,877		—		—
Total financial assets	$	322,184	$	273,387	$	48,797	$	—


	June 30, 2024		December 31, 2023
External research and development expenses	$	15,879	$	16,204
Employee related expenses	8,130		11,280
Sublicense and license fees	540		5,063
Intellectual property and patent related fees	1,975		983
Professional service expenses	530		750
Other expenses	615		283
Total accrued expenses	$	27,669	$	34,563


	June 30, 2024		December 31, 2023
Laboratory and manufacturing equipment	$	28,635	$	25,043
Leasehold improvements	11,715		9,648
Computer equipment	1,426		1,062
Construction-in-progress	807		2,060
Furniture and office equipment	264		264
Software	271		215
Total property and equipment	43,118		38,292
Less: accumulated depreciation	(28,962)		(26,260)
Property and equipment, net	$	14,156	$	12,032


	Shares	Weighted Average Grant Date Fair Value Per Share
Unvested restricted stock unit awards as of December 31, 2023	2,107,147	$	11.96
Issued	1,407,339	$	9.53
Vested	(567,356)	$	12.54
Forfeited	(328,769)	$	15.12
Unvested restricted stock unit awards as of June 30, 2024	2,618,361	$	10.13


	Shares	Weighted Average Exercise Price		Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2023	6,149,645	$	16.47	6.89	$	3,195
Granted	2,530,273	$	8.78
Exercised	(21,975)	$	8.72
Cancelled	(389,153)	$	26.41
Outstanding at June 30, 2024	8,268,790	$	15.26	7.62	$	68
Exercisable at June 30, 2024	3,607,857	$	22.07	5.74	$	68


	Balance at December 31, 2023		Additions		Deductions		Balance at June 30, 2024
Accounts receivable	$	10,187	$	271	$	(10,214)	$	244
Contract liabilities:
Deferred revenue	$	68,888	$	—	$	—	$	68,888


	June 30,
	2024	2023
Unvested restricted stock unit awards	2,618,361	2,083,088
Outstanding stock options	8,268,790	6,188,331
Total	10,887,151	8,271,419


	Three Months Ended June 30,				Dollar Change		Percentage Change
	2024		2023
Collaboration and other research and development revenues	$	513	$	2,887	$	(2,374)	(82)	%
Operating expenses:
Research and development	54,210		29,779		24,431		82	%
General and administrative	18,206		17,202		1,004		6	%
Total operating expenses	72,416		46,981		25,435		54	%
Other income, net
Other expense, net	(1)		(7)		6		(86)	%
Interest income, net	4,297		3,811		486

SEC Form 10-Q filed by Editas Medicine Inc.