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 June 30, 2023

☐ 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 August 4, 2023, the registrant had 3,343,070 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 June 30, 2023 (Unaudited) and December 31, 2022		1
Condensed Statements of Operations for the three and six months ended June 30, 2023 and 2022 (Unaudited)		2
Condensed Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022 (Unaudited)		3
Condensed Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (Unaudited)		4
Notes to Condensed Financial Statements (Unaudited)		5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3. Quantitative and Qualitative Disclosures about Market Risk		21
Item 4. Controls and Procedures		21
PART II. OTHER INFORMATION		22
Item 1. Legal Proceedings		22
Item 1A. Risk Factors		22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		23
Item 3. Defaults Upon Senior Securities		23
Item 4. Mine Safety Disclosures		23
Item 5. Other Information		24
Item 6. Exhibits		25
SIGNATURES		26

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Evoke Pharma, Inc.

Condensed Balance Sheets


	June 30,			December 31,
	2023			2022
	(unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	7,006,431		$	9,843,699
Accounts receivable, net		1,023,813			624,832
Prepaid expenses		371,348			952,954
Inventory, net		513,712			289,378
Other current assets		11,551			11,551
Total current assets		8,926,855			11,722,414
Operating lease right-of-use asset		52,842			129,074
Total assets	$	8,979,697		$	11,851,488

Liabilities and stockholders' equity
Current Liabilities:
Accounts payable and accrued expenses	$	1,415,309		$	934,312
Accrued compensation		612,932			591,158
Operating lease liability		52,842			129,074
Total current liabilities		2,081,083			1,654,544

Long-term Liabilities:
Note payable		5,000,000			5,000,000
Accrued interest payable		1,360,240			1,112,295
Total long-term liabilities		6,360,240			6,112,295
Total liabilities		8,441,323			7,766,839

Commitments and contingencies (Note 3)
Stockholders' equity:
Preferred stock, $0.0001 par value; authorized shares — 5,000,000 at June 30, 2023 and December 31, 2022; issued and outstanding shares — 0 at June 30, 2023 and December 31, 2022 respectively		-			-
Common stock, $0.0001 par value; authorized shares — 50,000,000 at June 30, 2023 and December 31, 2022; issued and outstanding shares — 3,343,070 at June 30, 2023 and December 31, 2022, respectively		334			334
Additional paid-in capital		120,296,170			119,731,458
Accumulated deficit		(119,758,130	)		(115,647,143	)
Total stockholders' equity		538,374			4,084,649
Total liabilities and stockholders' equity	$	8,979,697		$	11,851,488

See accompanying notes to these unaudited condensed financial statements.

Evoke Pharma, Inc.

Condensed Statements of Operations

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Net product sales	$	1,131,368		$	461,795		$	1,941,777		$	880,175
Operating expenses:
Cost of goods sold		57,357			67,774			107,948			90,535
Research and development		92,357			191,478			159,347			233,194
Selling, general and administrative		2,766,077			2,315,175			5,614,018			4,720,251
Total operating expenses		2,915,791			2,574,427			5,881,313			5,043,980
Loss from operations		(1,784,423	)		(2,112,632	)		(3,939,536	)		(4,163,805	)
Other income (expense):
Interest income

SEC Form 10-Q filed by Evoke Pharma Inc.