pnt-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2023


☐			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: 001-39311

POINT BIOPHARMA GLOBAL INC.

(Exact name of registrant as specified in its charter)


Delaware		85-0800493
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

4850 West 78th Street
Indianapolis,	IN	46268
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (317) 543-9957

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

PNT

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 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 ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, par value $0.0001 per share – 105,693,356 shares outstanding as of May 10, 2023.

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INDEX


PART I. FINANCIAL INFORMATION			1
Item 1. Unaudited Interim Condensed Consolidated Financial Statements:			1
Interim Condensed Consolidated Balance Sheets – March 31, 2023 (unaudited) and December 31, 2022			1
Unaudited Interim Condensed Consolidated Statements of Operations – Three Months ended March 31, 2023 and March 31, 2022			2
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss – Three Months ended March 31, 2023 and March 31, 2022			3
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity - Three Months ended March 31, 2023 and March 31, 2022			4
Unaudited Interim Condensed Consolidated Statements of Cash Flows – Three Months ended March 31, 2023 and March 31, 2022			5
Notes to Unaudited Interim Condensed Consolidated Financial Statements			6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3. Quantitative and Qualitative Disclosures about Market Risk			25
Item 4. Controls and Procedures			26
PART II. OTHER INFORMATION			27
Item 1. Legal Proceedings			27
Item 1A. Risk Factors			27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			27
Item 3. Defaults Upon Senior Securities			27
Item 4. Mine Safety Disclosures			27
Item 5. Other Information			27
Item 6. Exhibits			28
SIGNATURES			29

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PART I. FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

POINT Biopharma Global Inc.

Interim Condensed Consolidated Balance Sheets

(In U.S. dollars)


	March 31, 2023
	(Unaudited)	December 31, 2022
	$	$
ASSETS
Current assets
Cash and cash equivalents	111,139,617	286,428,371
Short-term investments	318,893,583	238,783,470
Prepaid expenses and other current assets	4,546,707	5,610,889
Total current assets	434,579,907	530,822,730

Non-current assets
Long-term investments	89,170,335	16,119,430
Property, plant and equipment, net	34,773,967	31,380,576
Total non-current assets	123,944,302	47,500,006

Total assets	558,524,209	578,322,736

LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	15,918,532	7,703,150
Accrued liabilities	16,615,066	19,094,454
Deferred revenue	16,518,934	23,242,290
Income taxes payable	28,795,306	29,698,546
Total current liabilities	77,847,838	79,738,440

Long-term income taxes payable	1,452,356	1,452,356
Deferred revenue, net of current portion	7,444,239	10,178,147
Total liabilities	86,744,433	91,368,943

Commitments and contingencies (Note 11)

Stockholders’ equity
Common Stock, par value $0.0001 per share, 430,000,000 authorized, 105,682,677 and 105,649,741 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	10,568	10,565
Additional paid-in capital	449,546,931	448,391,574
Retained earnings	22,477,834	39,008,505
Accumulated other comprehensive loss	(255,557)	(456,851)
Total stockholders’ equity	471,779,776	486,953,793

Total liabilities and stockholders’ equity	558,524,209	578,322,736

See accompanying Notes to the Unaudited Interim Condensed Consolidated Financial Statements

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POINT Biopharma Global Inc.

Unaudited Interim Condensed Consolidated Statements of Operations

(In U.S. dollars)


	For the three months ended
	March 31, 2023		March 31, 2022
	$		$
Revenue

Other revenue	9,457,264		—
Total revenue	9,457,264		—

Operating expenses
Research and development	26,910,472		12,500,848
General and administrative	5,010,129		3,807,942
Total operating expenses	31,920,601		16,308,790
Loss from operations	(22,463,337)		(16,308,790)

Other income (expenses)
Investment income	5,764,214		47,973
Foreign currency loss	(70,190)		(31,641)
Total other income (expenses)	5,694,024		16,332

Loss before income taxes	(16,769,313)		(16,292,458)
Income tax benefit (provision)	238,642		(88,116)
Net loss	(16,530,671)		(16,380,574)

Net loss per basic and diluted common share:
Basic and diluted net loss per common share	$	(0.16)	$	(0.18)
Basic and diluted weighted average common shares outstanding	105,660,655		90,122,269

See accompanying Notes to the Unaudited Interim Condensed Consolidated Financial Statements

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POINT Biopharma Global Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(In U.S. dollars)


	For the three months ended
	March 31, 2023		March 31, 2022
	$		$
Net loss	$	(16,530,671)	$	(16,380,574)
Other comprehensive income, net of tax
Net unrealized gain on available-for-sale debt securities	201,294		—
Total comprehensive loss	$	(16,329,377)	$	(16,380,574)

See accompanying Notes to the Unaudited Interim Condensed Consolidated Financial Statements

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POINT Biopharma Global Inc.

Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity

(In U.S. dollars, except share amounts)


	Common Stock		Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total Equity
	Number	Amount
	#	$	$	$	$	$
Balance at December 31, 2022	105,649,741	10,565	448,391,574	39,008,505	(456,851)	486,953,793
Issuance of shares of Common Stock in connection with stock option exercises	32,936	3	145,861	—	—	145,864
Stock-based compensation	—	—	1,009,496	—	—	1,009,496
Net loss	—	—	—	(16,530,671)	—	(16,530,671)
Other comprehensive income, net of tax	—	—	—	—	201,294	201,294
Balance at March 31, 2023	105,682,677	10,568	449,546,931	22,477,834	(255,557)	471,779,776


	Common Stock		Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Equity
	Number	Amount
	#	$	$	$	$	$
Balance at December 31, 2021	90,121,794	9,012	314,488,782	(59,284,708)	—	255,213,086
Issuance of shares of Common Stock in connection with stock option exercises	678	—	942	—	—	942
Stock-based compensation	—	—	440,450	—	—	440,450
Net loss	—	—	—	(16,380,574)	—	(16,380,574)
Balance at March 31, 2022	90,122,472	9,012	314,930,174	(75,665,282)	—	239,273,904

See accompanying Notes to the Unaudited Interim Condensed Consolidated Financial Statements

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POINT Biopharma Global Inc.

Unaudited Interim Condensed Consolidated Statements of Cash Flows

(In U.S. dollars)


	For the three months ended
	March 31, 2023	March 31, 2022
	$	$
Cash flows from operating activities
Net loss:	(16,530,671)	(16,380,574)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation on property, plant and equipment	537,627	224,234

Stock-based compensation expense	1,009,496	440,450
Amortization of premiums (accretion of discounts) on investments, net	(3,159,749)	—
Changes in operating assets and liabilities
Prepaid expenses and other current assets	1,064,182	(197,829)
Accounts payable	7,744,626	3,920,227
Accrued liabilities	(2,414,883)	1,424,963
Deferred revenue	(9,457,264)	—
Income taxes payable	(903,240)	77,925
Change in accrued interest and dividends within investments	(281,465)	—
Net cash used in operating activities	(22,391,341)	(10,490,604)

Cash flows from investing activities
Purchase of investments, net of sales and maturities	(149,518,510)	—
Purchase of property, plant and equipment	(3,524,767)	(940,931)
Net cash used in investing activities	(153,043,277)	(940,931)

Cash flows from financing activities

Issuance of shares of Common Stock in connection with stock option exercises	145,864	942
Net cash provided by financing activities	145,864	942

Net decrease in cash and cash equivalents	(175,288,754)	(11,430,593)
Cash and cash equivalents, beginning of period	286,428,371	238,815,991
Cash and cash equivalents, end of period	111,139,617	227,385,398

Supplemental disclosure of cash flow information:
Cash paid for income taxes	(660,786)	(116)
Non-cash investment activities:
Purchase of property, plant and equipment recorded in accounts payable and accrued liabilities	1,815,752	1,052,186

See accompanying Notes to the Unaudited Interim Condensed Consolidated Financial Statements

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1. Nature of business

POINT Biopharma Global Inc., together with its consolidated subsidiaries ("POINT" or the “Company”), is a globally focused radiopharmaceutical company building a platform for the clinical development and commercialization of radioligands that fight cancer. The Company was founded on a mission to make radioligand therapy applicable to more cancers and available to more people, thereby improving the lives of cancer patients and their families everywhere.

The Company has four wholly-owned subsidiaries, POINT Biopharma Inc., POINT Biopharma USA Inc. and West 78th Street, LLC, each located in the U.S., and POINT Biopharma Corp., located in Canada (collectively the "Subsidiaries"). The Company’s headquarters is located at 4850 West 78th Street, Indianapolis, Indiana, 46268.

2. Summary of significant accounting policies

Basis of presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 270, Interim Reporting and include the accounts of the Company, for financial information and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the balances and results for the periods presented. Except as described below, the accounting policies and methods of computation applied in the unaudited interim condensed consolidated financial statements and related notes contained therein are consistent with those applied by the Company in its audited consolidated financial statements as of and for the year ended December 31, 2022 contained in our Annual Report on Form 10-K for the years ended December 31, 2022 and 2021, as filed with the SEC on March 27, 2023 (the “2022 Financial Statements”). These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2022 Financial Statements.

These unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with the provisions of ASC Topic 205-40, Presentation of Financial Statements—Going Concern on the basis that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

Impact of COVID-19 Pandemic and other geopolitical events

The COVID-19 pandemic has caused many governments to implement measures to slow the spread of the outbreak through quarantines, travel restrictions, heightened border security and other measures. The U.S. Department of Health and Human Services let the public health emergency declaration for COVID-19 expire on May 11, 2023 and the World Health Organization ended the global emergency status for COVID-19 on May 5, 2023. Although the impact has lessened and many of the protective measures associated therewith have been terminated, COVID-19 may continue to affect the global economy as well as businesses and capital markets around the world.

Further, general macroeconomic trends, including rising inflation rates, rising interest rates, as well as recent and potential future disruptions in access to bank deposits or lending commitments due to bank failure, sustained supply chain disruptions, and any resulting recession, depression or other sustained adverse market event could materially and adversely affect our business, financial condition, results of operations and the value of our Common Stock (as defined below).

Additionally, financial markets may be adversely affected by the current or anticipated impact of military conflict, including escalating military fighting between Russia and Ukraine, terrorism, bank failures or other or macroeconomic geopolitical events. The U.S. and other nations in response to the Russo-Ukrainian conflict have announced economic sanctions which may have an adverse effect on the global financial markets. The Company's multi-center, randomized, open label phase 3 Study evaluating metastatic castration-resistant Prostate cancer using 177Lu-PNT2002 PSMA therapy After Second-line Hormonal treatment (“SPLASH") trial has vendor staff in Ukraine, and any political instability in the region may disrupt resourcing assigned to the trial and negatively impact our business.

The Company is monitoring the potential impact of the COVID-19 pandemic, the Russo-Ukrainian conflict, bank failures and other macroeconomic events on its business and unaudited interim condensed consolidated financial statements. To date, the Company has not experienced any material business disruptions or incurred any impairment losses in the carrying values of its assets as a result of these events and it is not aware of any specific related event or circumstance that would require it to revise its estimates reflected in these unaudited interim condensed consolidated financial statements.

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Risks and uncertainties

Prior to the Lantheus License Agreements (as defined in Note 3 below), the Company had incurred significant net losses and had funded operations primarily through equity financings. Operating losses and negative cash flows were incurred in the quarter ended March 31, 2023 and are expected to continue to be incurred in future periods. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, successful discovery and development of its product candidates, regulatory approval of its product candidates, development by competitors of new technological innovations, dependence on key personnel, the ability to attract and retain qualified employees, protection of proprietary technology, compliance with governmental regulations, the impact of macroeconomic disruptions, such as those arising from the COVID-19 coronavirus, the Russo-Ukrainian conflict and adverse developments affecting the financial services industry, the ability to secure additional capital to fund operations and commercial success of its product candidates. Product candidates currently under development will require extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of capital, adequate personnel, and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s drug development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales.

Use of estimates

The preparation of the unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, related disclosure of contingent assets and liabilities at the date of the unaudited interim condensed consolidated financial statements, and the reported amounts of expenses for the periods presented. Significant estimates and assumptions reflected in these unaudited interim condensed consolidated financial statements include, but are not limited to, the allocation of consideration and the recognition of revenues in respect to the performance obligations under the Lantheus License Agreements, the accrual of research and development expenses and the valuations of stock options. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions.

Recent accounting pronouncements

The Company has evaluated accounting pronouncements recently issued but not yet adopted and believes that the current accounting pronouncements currently do not apply to the Company’s operations and are not expected to have a material impact on the Company’s unaudited interim condensed consolidated financial statements or disclosures.

3. Revenue

In November 2022, POINT announced strategic collaboration and exclusive license agreements with Lantheus Holdings Inc. ("Lantheus") for exclusive worldwide rights for PNT2002 and PNT2003, excluding certain territories (Japan, South Korea, Singapore, Indonesia, and China including Hong Kong, Macau and Taiwan) (the "PNT2002 Agreement" and "PNT2003 Agreement", respectively, and collectively the "Lantheus License Agreements"). The collaboration pairs POINT's expertise in next generation radioligand development and manufacturing with Lantheus’ commercial leadership in Prostate-Specific Membrane Antigen ("PSMA") PET and radiopharmaceuticals.

In December 2022, closing conditions for the transaction, including Hart-Scott-Rodino antitrust clearance, were satisfied. POINT received a $250.0 million upfront payment under the PNT2002 Agreement and will receive an additional payment of up to $250.0 million upon U.S. regulatory approval. In addition, once certain return on investment financial thresholds have been achieved and other conditions satisfied, POINT will be eligible to receive royalties of 20% on all net sales (prior to which there is a period of sales in which the royalty may be based on only a portion of the gross profit), and contingent upon the satisfaction of certain net sales milestones, additional payments of up to $1.3 billion. POINT received a $10 million upfront payment under the PNT2003 Agreement, and will receive up to an additional $30 million upon U.S. regulatory approval. The PNT2003 Agreement also provides that POINT receive royalties of 15% on net sales and, contingent upon the satisfaction of certain net sales milestones, an additional payment of up to $275.0 million.

The Company is responsible for completing the SPLASH trial and the parties will work together to file the New Drug Application (“NDA”) with the costs incurred in connection with the U.S. Food and Drug Administration ("FDA") submission being borne by Lantheus. Thereafter, Lantheus will be responsible for all additional clinical and regulatory costs in the U.S., as well as all costs for development, clinical trials and regulatory approval in the rest of its territories outside the U.S., except Asia.

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To determine the appropriate amount of revenue to be recognized under ASC Topic 606, Revenue from Contracts with Customers, the Company performs the following steps: (i) identify the promised goods or services in the contract, (ii) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract, (iii) measure the transaction price, including the constraint on variable consideration, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when (or as) the Company satisfies each performance obligation.

In connection with the PNT2002 Agreement the Company identified the following performance conditions: (i) the license it conveyed to Lantheus with respect to certain intellectual property, (ii) service provided to complete the SPLASH trial, support the NDA submission and participate in joint steering activities and (iii) manufacturing activities. The Company determined the transaction price under ASC Topic 606 at the inception of the PNT2002 Agreement to be the $250 million upfront payment and has allocated this to the first two performance obligations based on a relative standalone selling price basis. The standalone selling prices for the first two performance obligations were determined using adjusted market and expected cost plus a margin assessments, respectively. The Company concluded that variable consideration associated with the product manufacturing relates solely to the manufacturing activities performance obligation on the basis that it believes that the expected margin associated with this consideration is in line with market standards and specifically relate to the Company's efforts to satisfy its manufacturing obligations.

In connection with the PNT2003 Agreement the Company identified the following performance conditions: (i) the license it conveyed to Lantheus with respect to certain intellectual property, (ii) service provided to complete the necessary submissions for regulatory approval and participate in joint steering activities and (iii) manufacturing activities. The Company determined the transaction price under ASC Topic 606 at the inception of the PNT2003 Agreement to be the $10 million upfront payment and has allocated this to the first two performance obligations based on a relative standalone selling price basis. The standalone selling prices for the first two performance obligations were determined using adjusted market and expected cost plus a margin assessments, respectively. The Company concluded that variable consideration associated with the product manufacturing relates solely to the manufacturing activities performance obligation on the basis that it believes that the expected margin associated with this consideration is in line with market standards and specifically relate to the Company's efforts to satisfy its manufacturing obligations.

The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur. Variable consideration in the PNT2002 Agreement and PNT2003 Agreement consists of:

•Potential future regulatory milestone payments. The Company concluded that this variable consideration is constrained considering that achievement of the milestones is outside its control and contingent upon the future success of clinical trials and regulatory approval by the FDA and in respect of other territories outside the U.S..

•Potential future milestone payments in connection with certain sales targets as well as any future royalties. The Company concluded that these payments qualify for the royalty exception. Under the royalty exception, sales-based royalties are recognized at the later of when (1) the subsequent sale or usage occurs or (2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied (in whole or in part). That is, an entity does not estimate the amount of a sales-based royalty at contract inception; rather, revenue would be recognized when the subsequent sales occur (under the assumption that the associated performance obligation has been satisfied or partially satisfied).

•Potential payments for the manufacturing and supply of commercial product. The Company concluded that this variable consideration is constrained as it is contingent upon future regulatory approvals and the execution of a manufacturing and supply agreement.

The estimate of the Company’s variable consideration to be included in the transaction price is updated at each reporting date as a change in estimate. For the potential future regulatory milestone payments, the Company utilizes the most likely amount approach to determine the amounts recognized and timing of recognition. For the potential payments for manufacturing and supply of commercial product, the Company utilizes the expected value approach to determine the amounts recognized and timing of recognition. Once the constraint is removed, the milestone payments will be accounted for and allocated to the performance obligations.

For the licenses conveyed to Lantheus, the Company recognized revenue upon execution and regulatory approval of the Lantheus License Agreements. The Company concluded that the licenses represent that of functional intellectual property as each has significant standalone functionality and derives a substantial portion of their utility from that standalone functionality.

For the obligations to complete the SPLASH trial, support the NDA submission and participate in joint steering activities in connection with the PNT2002 Agreement as well as the obligations to complete the necessary submissions for regulatory approval and participate in joint steering activities for the PNT2003 Agreement, the Company recognizes revenue using the cost-to-cost method, which it concluded best depicts the transfer of control to the customer. Under the cost-to-cost method,

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the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recorded as a percentage of the estimated transaction price based on the extent of progress towards completion.

The following table presents the Company’s contract liabilities as of March 31, 2023 and December 31, 2022:


	March 31, 2023		December 31, 2022
Deferred revenue
Deferred revenue, current	$	16,518,934	$	23,242,290
Deferred revenue, net of current portion	7,444,239		10,178,147
Total	$	23,963,173	$	33,420,437

At inception of the Lantheus License Agreements, deferred revenue $34.8 million was recognized in connection with future performance. During the quarter ended March 31, 2023, the Company recognized $9.5 million in revenue for services performed (March 31, 2022 - $nil). The current portion of deferred revenue reflects the Company’s estimate of the revenue it expects to recognize within the next 12 months. The Company expects to recognize the remainder of the deferred revenue in subsequent periods through the year ending December 31, 2028. No contract assets, were recognized in connection with the Lantheus License Agreements, including costs incurred in obtaining the agreements.

4. Cash, cash equivalents and investments

Cash, cash equivalents and investments consisted of the following:


	As of March 31, 2023		As of December 31, 2022
Cash	$	19,393,396	$	12,429,627
Cash equivalents:
Money market funds	91,746,221		273,998,744

Total cash and cash equivalents	111,139,617		286,428,371
Short-term investments
Commercial paper	159,747,972		115,156,455
Corporate bonds	67,096,233		45,219,042
U.S. Government agency debt securities	58,250,793		42,577,762
Asset backed securities	33,798,585		35,830,211
Total short-term investments	318,893,583		238,783,470
Long-term investments
Asset backed securities	48,352,696		16,119,430
Corporate bonds	40,817,639		—
Total long-term investments	89,170,335		16,119,430
Total cash, cash equivalents and investments	$	519,203,535	$	541,331,271

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security as of March 31, 2023 were as follows:

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	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Current		Non-current
Commercial paper	$	159,747,972	$	—	$	—	$	159,747,972	$	159,747,972	$	—
Corporate bonds	108,167,585		15,551		$	(269,264)	107,913,872		67,096,233		40,817,639
Asset backed securities	82,135,898		74,656		(59,273)		82,151,281		33,798,585		48,352,696
U.S. Government agency debt securities	58,268,020		27,511		(44,738)		58,250,793		58,250,793		—
Total available-for-sale securities	$	408,319,475	$	117,718	$	(373,275)	$	408,063,918	$	318,893,583	$	89,170,335

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of March 31, 2023:


	Amortized Cost		Fair Value
Due within one year	$	319,134,902	$	318,893,583
Due between one and five years	89,184,573		89,170,335
Total	$	408,319,475	$	408,063,918

The primary objective of our investment portfolio is to maintain safety of principal balances, provide sufficient levels of liquidity and enhance overall returns in an efficient manner with acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

During the three months ended March 31, 2023, we had no realized gains or losses, on available-for-sale investments.

5. Fair value measurements

We measure fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The following tables present information about the Company’s financial assets and liabilities as of March 31, 2023 that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in thousands):

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	Level 1		Level 2		Level 3		Total
March 31, 2023
Cash equivalents:
Money market mutual fund	$	91,746,221	$	—	$	—	$	91,746,221

Available-for-sale debt securities:
Commercial paper	—		159,747,972		—		159,747,972
Corporate bonds	—		107,913,872		—		107,913,872
Asset backed securities	—		82,151,281		—		82,151,281
U.S. Government agency debt securities	58,250,793		—		—		58,250,793
Total	$	149,997,014	$	349,813,125	$	—	$	499,810,139

Certain of our available-for-sale debt securities, including U.S. Government agency debt securities, are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the fair value hierarchy.

We did not have any financial liabilities measured at fair value on a recurring basis as of March 31, 2023.

There have been no transfers of assets or liabilities between the fair value measurement levels.

6. Prepaid expenses and other current assets

Prepaid expenses and other current assets consisted of the following:


	As of March 31, 2023	As of December 31, 2022
	$	$
Prepaid clinical trial expenses	3,339,239	4,011,419
Prepaid insurance	859,141	1,310,314
Canadian harmonized sales tax receivable	159,045	60,222
Other	189,282	228,934
Total	4,546,707	5,610,889

7. Property, plant and equipment, net

Property, plant and equipment, net consisted of the following:


	As of March 31, 2023	As of December 31, 2022
	$	$
Land and building	18,451,207	18,163,962
Machinery and equipment	9,015,960	5,328,639
Property, plant and equipment, in development	8,367,969	8,434,384
Furniture and fixtures	721,595	698,728
Computer equipment	149,892	149,892
	36,706,623	32,775,605
Less: Accumulated depreciation	(1,932,656)	(1,395,029)
Total	34,773,967	31,380,576

In July 2020, the Company purchased land and a building in Indianapolis, Indiana (which has been expanded to approximately 81,000 square feet) for the purpose of retrofitting the existing building into a state-of-the-art, Good Manufacturing Practices ("GMP") compliant facility that will support the Company’s drug manufacturing operations.

The Company commenced the manufacture of clinical supply in the Indianapolis manufacturing facility in January 2022. Construction continues on the facility to expand capacity. Property, plant and equipment that have finite lives are recorded at cost less accumulated depreciation and impairment losses. Depreciation is expensed from the month the particular asset

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is available for its intended use, using the straight-line method over the estimated useful life of such asset at the following rates, which in each case are intended to reduce the carrying value of the asset to the estimated residual value:


Asset Category			Estimated Useful Life
Computer equipment			5 years
Machinery and equipment			7 years
Furniture and fixtures			7 years
Building			20 years

8. Accrued expenses

Accrued liabilities consisted of the following:


	As of March 31, 2023	As of December 31, 2022
	$	$
Accrued personnel costs	7,660,395	7,116,382
Accrued research and development costs	7,174,563	9,645,594
Accrued corporate legal fees and other professional services	1,536,575	2,068,793
Accrued costs for purchases of property, plant and equipment	41,236	105,741
Other accrued costs	202,297	157,944
Total	16,615,066	19,094,454

9. Stockholders’ equity

The Company is authorized to issue 430,000,000 shares of common stock, with a par value of $0.0001 per share ("Common Stock"), as well as 20,000,000 of shares of preferred stock, with a par value of $0.0001 per share (“Preferred Stock”).

During the three months ended March 31, 2023, the Company issued (a) 15,000 shares of Common Stock in connection with the exercise of stock options granted to a non-employee consultant, resulting in total cash proceeds of $20,850 and (b) 17,936 shares of Common Stock in connection with the exercise of stock options granted to a board member, resulting in total cash proceeds of $125,014.

During the three months ended March 31, 2022, the Company issued 678 shares of Common Stock issued in connection with the exercise of stock options issued to a non-employee consultant, resulting in total cash proceeds of $942.

As of March 31, 2023, the number of total issued and outstanding shares of Common Stock was 105,682,677 (December 31, 2022 – 105,649,741). As of March 31, 2023, there were no issued and outstanding shares of Preferred Stock (December 31, 2022 — nil).

Each share of Common Stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, if any, as may be declared by the Company’s board of directors. During the three months ended March 31, 2023, no cash dividends were declared or paid by the Company (March 31, 2022 — $nil).

The Company’s board of directors has the authority to issue shares of Preferred Stock from time to time on terms it may determine, to divide shares of Preferred Stock into one or more series and to fix the designations, preferences, privileges, and restrictions of Preferred Stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the Delaware General Corporation Law ("DGCL"). During the three months ended March 31, 2023, no shares of Preferred Stock were issued by the Company.

10. Stock-based compensation

In March 2020, the board of directors of POINT Biopharma Inc. approved the 2020 Equity Incentive Plan (the “2020 EIP”). The 2020 EIP provided for the granting of incentive and non-qualified stock options, stock appreciation rights, restricted stock units, performance awards and other stock-based awards to employees, directors, and consultants of POINT Biopharma Inc. Effective as of June 30, 2021, the Company’s board of directors adopted the POINT Biopharma Global

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Inc. 2021 Equity Incentive Plan (the “2021 EIP”) to replace the 2020 EIP and allow the Company to grant equity and equity-based incentive awards to officers, employees, non-employee directors and consultants of the Company. The Company assumed the outstanding equity awards under the 2020 EIP, but no further grants may be made under the 2020 EIP. The 2021 EIP provides that the number of shares reserved and available for issuance under the 2021 EIP will automatically increase each January 1, beginning on January 1, 2022, by 4% of the number of outstanding shares of Common Stock on the immediately preceding December 31, or such lesser amount as determined by the Company's board of directors. As of January 1, 2023, the number of shares of Common Stock available under the 2021 EIP increased by 4,225,990 for a total of 9,344,912 shares of Common Stock authorized for issuance under the 2021 EIP as of March 31, 2023.

Stock options

The Company recorded $446,128 to research and development expense and $563,368 to general and administrative expenses for stock-based compensation for the three months ended March 31, 2023 (March 31, 2022 — $285,311 to research and development expense and $155,139 to general and administrative expenses for the three months ended). The Company did not recognize a tax benefit related to stock-based compensation expense during the three months ended March 31, 2023, as the Company had net operating loss carryforwards and recorded a valuation allowance against the deferred tax asset.

The following table summarizes the activity relating to the Company’s stock options.


	Number of Shares	Weighted Average Exercise Price $	Weighted- Average Remaining Contractual Term (in years)
Outstanding as of December 31, 2022	5,592,173	5.85
Granted	2,839,823	6.78
Exercised	(32,936)	4.43
Forfeited	(33,693)	8.25
Expired	(9,546)	8.47
Outstanding as of March 31, 2023	8,355,821	6.16	4.8
Vested and expected to vest as of March 31, 2023	8,355,821	6.16	4.8
Options exercisable as of March 31, 2023	2,635,805	4.61	4.7

During the three months ended March 31, 2023, 2,839,823 stock options were granted to employees and directors of the Company, with a weighted average grant date fair value of $3.76. The vesting terms of these options are such that 25% of the options vest on the one-year anniversary of the date of grant and the remaining 75% of such stock options vest in three equal annual installments thereafter.

During the three months ended March 31, 2022, 1,705,197 stock options were granted to employees and directors of the Company, with a weighted average grant date fair value of $4.58. The vesting terms of these options are such that 25% of the options vest on the one-year anniversary of the date of grant and the remaining 75% of such stock options vest in three equal annual installments thereafter.

The following table presents the assumptions used in the Black-Scholes-Merton option-pricing model to determine the grant date fair value of stock options granted:

Three months ended March 31, 2023

Three months ended March 31, 2022

Risk-free interest rate

3.71%

1.24% - 2.51%

Expected term (in years)

SEC Form 10-Q filed by POINT Biopharma Global Inc.