evok-10q_20210930.htm

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

Commission File Number 001-36075

EVOKE PHARMA, INC.

(Exact name of registrant as specified in its charter)

Delaware		20-8447886
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

420 Stevens Avenue, Suite 370, Solana Beach, CA		92075
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (858) 345-1494

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock,

par value $0.0001 per share

EVOK

The Nasdaq Capital 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 November 1, 2021, the registrant had 32,656,480 shares of common stock outstanding.

Evoke pharma, inc.

Form 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Condensed Balance Sheets as of September 30, 2021 (Unaudited) and December 31, 2020	1
Condensed Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (Unaudited)	2
Condensed Statements of Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2021 and 2020 (Unaudited)	3
Condensed Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (Unaudited)	4
Notes to Condensed Financial Statements (Unaudited)	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures about Market Risk	20
Item 4. Controls and Procedures	20
PART II. OTHER INFORMATION	21
Item 1. Legal Proceedings	21
Item 1A. Risk Factors	21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3. Defaults Upon Senior Securities	22
Item 4. Mine Safety Disclosures	22
Item 5. Other Information	22
Item 6. Exhibits	23
SIGNATURES	25

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Evoke Pharma, Inc.

Condensed Balance Sheets

	September 30, 2021			December 31, 2020
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	11,141,908		$	8,068,939
Accounts receivable, net		222,166			23,311
Prepaid expenses	—				921,762
Inventory		225,217			236,480
Other current assets		11,551			30,300
Total current assets		11,600,842			9,280,792
Operating lease right-of-use asset		49,117			141,705
Other assets	—				11,551
Total assets	$	11,649,959		$	9,434,048

Liabilities and stockholders' equity (deficit)
Current Liabilities:
Accounts payable and accrued expenses	$	530,528		$	1,273,572
Accrued compensation		810,790			1,016,232
Operating lease liability		49,117			141,705
Paycheck protection program loan	—				104,168
Milestone payable	—				5,000,000
Total current liabilities		1,390,435			7,535,677
Long-term liabilities
Note payable		5,000,000			5,000,000
Accrued interest payable		486,268			112,994
Total long-term liabilities		5,486,268			5,112,994
Total liabilities		6,876,703			12,648,671

Stockholders' equity (deficit):
Common stock, $0.0001 par value; authorized shares - 50,000,000; issued and outstanding shares - 32,656,480 and 26,621,954 at September 30, 2021 and December 31, 2020, respectively		3,266			2,662
Additional paid-in capital		110,520,641			95,667,776
Accumulated deficit		(105,750,651	)		(98,885,061	)
Total stockholders' equity (deficit)		4,773,256			(3,214,623	)
Total liabilities and stockholders' equity (deficit)	$	11,649,959		$	9,434,048

See accompanying notes to these unaudited condensed financial statements.

Evoke Pharma, Inc.

Condensed Statements of Operations

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020

Net product sales	$	930,449		$	—		$	1,257,505		$	—
Operating expenses:
Cost of goods sold		58,435		—				191,439		—
Research and development		81,699			205,032			554,753			6,450,979
Selling, general and administrative		2,635,161			1,874,578			7,115,605			4,387,284
Total operating expenses		2,775,295			2,079,610			7,861,797			10,838,263
Loss from operations		(1,844,846	)		(2,079,610	)		(6,604,292	)		(10,838,263	)
Other income (expense):
Forgiveness of paycheck protection loan and accrued interest	—			—				105,130		—
Interest income		1,421			1,033			7,596			4,896
Interest expense		(126,027	)		(50,528	)		(374,024	)		(53,442	)
Total other income (expense)		(124,606	)		(49,495	)		(261,298	)		(48,546	)
Net loss	$	(1,969,452	)	$	(2,129,105	)	$	(6,865,590	)	$	(10,886,809	)

Net loss per share of common stock, basic and diluted	$	(0.06	)	$	(0.08	)	$	(0.21	)	$	(0.43	)

Weighted-average shares used to compute basic and diluted net loss per share

SEC Form 10-Q filed by Evoke Pharma, Inc.