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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38359 Adicet Bio, Inc. (Exact name of registrant as specified in its charter) Delaware 81-3305277 (State or other jurisdiction of in ...

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 March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | --- | |----------------|--------------------|-----------------------------------------------------------|---------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38359 Adicet Bio, Inc. (Exact name of registrant as specified in its charter) Delaware 81-3305277 (State or other jurisdiction of incorp ...

PART I. FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements and management's analysis of financial condition and operations [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements show increased cash and assets due to a public offering, with continued net losses driven by rising R&D expenses [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The balance sheets reflect a significant increase in cash and total assets primarily from financing activities Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $192,226 | $84,330 | | Total current assets | $199,025 | $100,336 | | Total assets | $257,195 | $153,835 | | **Liabilities & Equity** | | | | Total current liabilities | $20,032 | $22,479 | | Total liabilities | $39,971 | $44,008 | - Cash and cash equivalents significantly increased from **$84.3 million** at the end of 2020 to **$192.2 million** as of September 30, 2021, reflecting proceeds from financing activities during the period[20](index=20&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statements show increased R&D expenses and a higher net loss, while revenue decreased due to milestone timing Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue—related party | $3,429 | $3,028 | $4,262 | $12,493 | | Research and development | $11,926 | $8,942 | $34,285 | $24,651 | | General and administrative | $5,213 | $7,741 | $15,868 | $17,684 | | Loss from operations | $(13,710) | $(13,655) | $(45,891) | $(29,842) | | Net loss | $(14,013) | $(14,779) | $(46,186) | $(27,720) | | Net loss per share | $(0.44) | $(2.84) | $(1.54) | $(8.69) | - Research and development expenses increased to **$34.3 million** for the nine months ended Sep 30, 2021, up from **$24.7 million** in the prior year period, reflecting increased clinical development activities[23](index=23&type=chunk) - Revenue for the nine months ended Sep 30, 2021, decreased significantly to **$4.3 million** from **$12.5 million** in the prior year period, primarily due to the timing of milestone achievements under the Regeneron agreement[23](index=23&type=chunk)[195](index=195&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flows indicate significant funding from financing activities, offsetting operational cash burn and driving overall cash increase Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(37,608) | $(28,207) | | Net cash provided by investing activities | $282 | $102,769 | | Net cash provided by financing activities | $145,222 | $36 | | Net change in cash | $107,896 | $74,598 | - Financing activities provided **$145.2 million** in cash for the first nine months of 2021, primarily from the issuance of common stock, which was the main driver of the increase in the company's cash position[32](index=32&type=chunk)[225](index=225&type=chunk) - Investing activities in the first nine months of 2020 included **$64.1 million** in cash acquired from the Merger with resTORbio, which was not present in 2021[32](index=32&type=chunk)[224](index=224&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's clinical-stage progress, financial performance, and liquidity, highlighting increased R&D and a strengthened cash position - The company is developing "off-the-shelf" gamma delta T cell therapies, with its lead product candidate, ADI-001, in a Phase 1 clinical trial for Non-Hodgkin's Lymphoma (NHL) initiated in March 2021[156](index=156&type=chunk) - Interim clinical data from the initial dose escalation portion of the ADI-001 study is expected by the **end of 2021**[156](index=156&type=chunk) - The company plans to file an Investigational New Drug (IND) application for ADI-002, its first solid tumor candidate, in the **second quarter of 2022** and initiate Phase 1 trials in the **second half of 2022**[156](index=156&type=chunk) - In February 2021, the company raised approximately **$128.7 million** in net proceeds from an underwritten public offering and an additional **$15.0 million** from a concurrent private placement[161](index=161&type=chunk)[162](index=162&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Operating results show increased R&D expenses and a decrease in revenue, contributing to a higher net loss Comparison of Operating Results (in thousands) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenue – related party | $3,429 | $3,028 | $4,262 | $12,493 | | Research and development | $11,926 | $8,942 | $34,285 | $24,651 | | General and administrative | $5,213 | $7,741 | $15,868 | $17,684 | | Net loss | $(14,013) | $(14,779) | $(46,186) | $(27,720) | - R&D expenses for the nine months ended Sep 30, 2021 increased by **$9.6 million (39%)** compared to the same period in 2020, driven by a **$4.0 million** increase in payroll/personnel costs from higher headcount, a **$2.1 million** increase in stock-based compensation, and increased CRO and facility expenses related to ADI-001 development[198](index=198&type=chunk) - G&A expenses for the nine months ended Sep 30, 2021 decreased by **$1.8 million (10%)** compared to the prior year period, mainly due to a **$5.9 million** reduction in professional fees associated with the 2020 Merger, partially offset by higher payroll, insurance, and facility costs[199](index=199&type=chunk) - Revenue for the nine months ended Sep 30, 2021 decreased by **$8.2 million (66%)** year-over-year, primarily due to a **$10.0 million** milestone payment in June 2020 and a **$4.0 million** revenue reduction in Q1 2021 from an extended performance obligation timeline[195](index=195&type=chunk)[196](index=196&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash position significantly improved due to recent financing, providing sufficient funds for the next twelve months - As of September 30, 2021, the company had **$192.2 million** in cash and cash equivalents[205](index=205&type=chunk) - The company believes its current cash and cash equivalents are sufficient to fund operations, capital expenditures, and debt service for at least the **next twelve months** from the report's issuance date[206](index=206&type=chunk)[212](index=212&type=chunk) - The company has a loan agreement with Pacific Western Bank for up to **$15.0 million**, primarily for financing leasehold improvements, with no funds drawn as of September 30, 2021[206](index=206&type=chunk)[207](index=207&type=chunk) - As of September 30, 2021, the company had an accumulated deficit of **$152.5 million**[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on cash equivalents, deemed immaterial due to short-term, low-risk investments - The company's main market risk stems from potential adverse changes in interest rates on its **$192.2 million** of cash and cash equivalents[237](index=237&type=chunk) - Due to the short-term maturities and low-risk profile of its cash equivalents, the company does not expect a **10%** change in interest rates to materially affect its fair value or future interest income[237](index=237&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Material weaknesses in internal controls were identified, leading to ineffective disclosure controls, with remediation efforts underway - Management identified material weaknesses in internal control over financial reporting during the preparation of its financial statements for the quarter ended September 30, 2021[240](index=240&type=chunk) - The identified weaknesses include: - Lack of sufficient accounting professionals with appropriate experience - Lack of formal accounting policies, procedures, and monitoring controls - Ineffective controls over segregation of duties - Lack of formal processes to account for complex transactions[242](index=242&type=chunk) - Due to these material weaknesses, the CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of September 30, 2021[243](index=243&type=chunk) - Remediation efforts are underway, including hiring a permanent VP Corporate Controller, implementing a new ERP system (Microsoft 365 Business Central) in January 2021, and re-evaluating and implementing additional internal controls[245](index=245&type=chunk) PART II. OTHER INFORMATION This section details legal proceedings, significant risk factors, and the exhibits filed with the report [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially impact its financial condition or operations - The company is not currently party to any legal proceedings that it expects to have a material adverse impact on its financial condition or operations[249](index=249&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks including clinical trial uncertainties, manufacturing dependencies, financial control weaknesses, and reliance on key collaborations - The company's business is highly dependent on the success of its two lead product candidates, ADI-001 and ADI-002, which are based on novel gamma delta T cell technologies with significant development and regulatory challenges[3](index=3&type=chunk)[259](index=259&type=chunk)[265](index=265&type=chunk) - The company has a history of net losses (**$152.5 million** accumulated deficit as of Sep 30, 2021) and expects to incur substantial losses for the foreseeable future[254](index=254&type=chunk) - Adicet relies on third-party manufacturers for its product candidates, which increases risks related to supply, cost, and quality control, potentially impairing development and commercialization efforts[4](index=4&type=chunk)[300](index=300&type=chunk) - Material weaknesses have been identified in the company's internal control over financial reporting, which could harm the business and negatively impact stock value[5](index=5&type=chunk)[353](index=353&type=chunk) - The collaboration with Regeneron is critical; termination of the agreement or a material breach by Regeneron would materially harm the company's business and financial condition[6](index=6&type=chunk)[357](index=357&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed, including corporate agreements and officer certifications - Key filed exhibits include a Sublease Agreement dated July 19, 2021, and a Fourth Amendment to the Loan and Security Agreement with Pacific Western Bank, dated October 21, 2021[486](index=486&type=chunk) - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act[486](index=486&type=chunk)

PART I [Business](index=6&type=section&id=Item%201.%20Business) Adicet Bio develops allogeneic gamma delta T cell therapies for cancer, with lead candidates ADI-001 for NHL and ADI-002 for solid tumors - Adicet Bio is a biotechnology company developing allogeneic gamma delta T cell therapies, which are **"off-the-shelf" treatments for cancer and other diseases**[24](index=24&type=chunk) - The lead product candidate, ADI-001, targets **Non-Hodgkin's Lymphoma (NHL)**, with its IND cleared in October 2020 and a Phase 1 trial initiated in Q1 2021[25](index=25&type=chunk)[30](index=30&type=chunk) - The second product candidate, ADI-002, targets **solid tumors expressing GPC3**, with an IND filing planned for late 2021 and clinical trial initiation in 2022[31](index=31&type=chunk)[36](index=36&type=chunk) - The company utilizes a proprietary **T cell receptor-like antibody (TCRL) platform** to target intracellular tumor antigens, critical for treating solid tumors[32](index=32&type=chunk) - A key strategic partnership is a **five-year collaboration with Regeneron**, initiated in 2016, for engineered gamma delta immune cell therapeutics, with Regeneron having options to license candidates[34](index=34&type=chunk)[127](index=127&type=chunk) - The company relies on **third-party contract manufacturing organizations (CMOs)** for cGMP-compliant manufacture of its product candidates, lacking its own facility[142](index=142&type=chunk)[6](index=6&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including limited operating history, substantial net losses, reliance on lead candidates, novel technology challenges, and internal control weaknesses - The business is highly dependent on the success of its two lead product candidates, **ADI-001 and ADI-002**, with failure to obtain regulatory approval and commercialize them significantly harming the business[252](index=252&type=chunk)[2](index=2&type=chunk) - The company's gamma delta T cell candidates represent a **novel approach to cancer treatment**, creating significant challenges in manufacturing, efficacy, regulatory approval, and market acceptance[255](index=255&type=chunk)[2](index=2&type=chunk) - The company has incurred net losses every period since inception and anticipates substantial future losses, with an accumulated deficit of **$106.5 million as of December 31, 2020**[246](index=246&type=chunk)[247](index=247&type=chunk) - **Material weaknesses in internal control over financial reporting** have been identified, related to insufficient experienced accounting professionals, lack of formal policies, and inadequate segregation of duties[341](index=341&type=chunk)[342](index=342&type=chunk)[4](index=4&type=chunk) - The company relies on a collaboration with Regeneron; **termination or breach of this agreement would materially harm business prospects**, and the company is subject to exclusivity obligations[343](index=343&type=chunk)[351](index=351&type=chunk)[4](index=4&type=chunk) - The company does not operate its own manufacturing facility and relies on **third-party CMOs**, exposing it to risks of production delays, quality control issues, and supply chain disruptions[294](index=294&type=chunk)[6](index=6&type=chunk) - The **COVID-19 pandemic may adversely affect business operations**, including potential disruptions to the supply chain and the conduct of clinical trials[313](index=313&type=chunk)[314](index=314&type=chunk)[4](index=4&type=chunk) [Unresolved Staff Comments](index=87&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[454](index=454&type=chunk) [Properties](index=87&type=section&id=Item%202.%20Properties) The company leases office and laboratory facilities in Boston, Menlo Park, and Redwood City, with principal executive offices in Boston - Principal executive offices are located at **500 Boylston Street, 13th Floor, Boston, MA 02116**, with a lease expiring on July 31, 2026[454](index=454&type=chunk) - The company also leases office and laboratory space in **Menlo Park, CA** (lease expires March 31, 2022) and has a new lease for a facility in **Redwood City, CA**, with occupancy expected in Q2 2022[454](index=454&type=chunk) [Legal Proceedings](index=87&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, with prior merger-related lawsuits dismissed or settled - The company is **not currently a party to any material legal proceedings**[455](index=455&type=chunk) - Seven lawsuits filed in connection with the 2020 merger were either dismissed or settled for **$0.2 million** in the fourth quarter of 2020[767](index=767&type=chunk) [Mine Safety Disclosures](index=87&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company has no mine safety disclosures, rendering this item not applicable - This item is **not applicable**[455](index=455&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=88&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Adicet Bio's common stock trades on Nasdaq under 'ACET', with no cash dividends paid or intended, and a **$15.0 million** private placement completed in February 2021 - The company's common stock trades on **The Nasdaq Global Market under the symbol "ACET"**[457](index=457&type=chunk) - The company has **never declared or paid cash dividends** and intends to retain future earnings to fund business development[458](index=458&type=chunk) - In February 2021, the company raised **$15.0 million** through a private placement of **1,153,840 shares** of common stock at **$13.00 per share** to existing investors[459](index=459&type=chunk) [Reserved](index=88&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=89&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's financial condition is characterized by net losses, with a **$36.8 million** net loss in 2020, relying on equity financing and collaboration revenue, significantly improved by recent public and private offerings Results of Operations (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | Change | % Change | |:---|---:|---:|---:|---:| | Revenue – related party | $17,903 | $995 | $16,908 | 1699% | | Research and development | $34,334 | $23,691 | $10,643 | 45% | | General and administrative | $22,760 | $8,692 | $14,068 | 162% | | **Loss from operations** | **($39,191)** | **($31,388)** | **($7,803)** | **25%** | | **Net loss** | **($36,678)** | **($28,138)** | **($8,540)** | **30%** | - The significant increase in 2020 revenue was primarily due to achieving a **$10.0 million milestone** under the Regeneron Agreement and increased R&D activities, leading to higher proportional performance revenue recognition[491](index=491&type=chunk) - R&D expenses rose by **$10.6 million (46%)** in 2020 due to increased personnel costs, higher CRO/CMO fees for ADI-001 manufacturing and preclinical activities, and merger-related costs[493](index=493&type=chunk) - G&A expenses increased by **$14.1 million (162%)** in 2020, mainly driven by **$7.1 million** in professional fees related to the merger and a **$5.1 million** increase in personnel expenses[494](index=494&type=chunk) Summary Statement of Cash Flows (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | Year Ended Dec 31, 2018 | |:---|---:|---:|---:| | Net cash used in operating activities | ($41,552) | ($27,882) | ($18,180) | | Net cash provided by (used in) investing activities | $115,217 | ($47,931) | ($16,058) | | Net cash provided by financing activities | $303 | $76,945 | $11,046 | - As of December 31, 2020, the company had cash, cash equivalents, and marketable debt securities of **$94.6 million**, augmented in February 2021 by **$137.5 million** gross proceeds from a public offering and **$15.0 million** from a private placement[510](index=510&type=chunk)[517](index=517&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=105&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its **$94.6 million** in cash and investments, but a 10% rate change is not expected to be material - The company's market risk is primarily from potential adverse changes in interest rates affecting its **$94.6 million** in cash, cash equivalents, and marketable debt securities as of December 31, 2020[558](index=558&type=chunk) - Due to the short-term maturities and low-risk profile of its investments, a **10% change in interest rates** is not expected to materially impact the fair value of its holdings or future interest income[558](index=558&type=chunk) [Financial Statements and Supplementary Data](index=105&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements and the independent auditor's report, included from page F-1 to F-43 - The company's consolidated financial statements and the report of its independent registered public accounting firm are included in the report[560](index=560&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=105&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - There were **no changes in or disagreements with accountants** on accounting and financial disclosure[560](index=560&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of December 31, 2020, due to material weaknesses in internal control over financial reporting, with a remediation plan underway - Management, including the CEO and CFO, concluded that **disclosure controls and procedures were not effective** as of December 31, 2020[564](index=564&type=chunk) - **Material weaknesses** were identified in internal control over financial reporting, including: lack of sufficient experienced accounting staff, lack of formal accounting policies and procedures, ineffective controls over segregation of duties, and lack of controls to account for complex transactions[563](index=563&type=chunk) - A **remediation plan is in progress**, including hiring a permanent VP, Corporate Controller and a senior manager for technical accounting, implementing formal training, and deploying a new ERP system (Microsoft 365 Business Central) in January 2021[567](index=567&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - There is **no other information to report**[569](index=569&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=108&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item will be incorporated by reference from the company's definitive 2021 Proxy Statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the forthcoming 2021 Proxy Statement[571](index=571&type=chunk) [Executive Compensation](index=108&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item will be incorporated by reference from the company's definitive 2021 Proxy Statement - Information regarding executive compensation is **incorporated by reference** from the forthcoming 2021 Proxy Statement[573](index=573&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=108&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item will be incorporated by reference from the company's definitive 2021 Proxy Statement - Information regarding security ownership is **incorporated by reference** from the forthcoming 2021 Proxy Statement[574](index=574&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=108&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item will be incorporated by reference from the company's definitive 2021 Proxy Statement - Information regarding related transactions and director independence is **incorporated by reference** from the forthcoming 2021 Proxy Statement[575](index=575&type=chunk) [Principal Accountant Fees and Services](index=108&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item will be incorporated by reference from the company's definitive 2021 Proxy Statement - Information regarding principal accountant fees and services is **incorporated by reference** from the forthcoming 2021 Proxy Statement[576](index=576&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Annual Report on Form 10-K, including consolidated financial statements and exhibits - The report includes the company's **consolidated financial statements**[578](index=578&type=chunk) - An **index of exhibits** filed with the report is provided[579](index=579&type=chunk) [Form 10-K Summary](index=109&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to include a summary of the Form 10-K - The company elected **not to include summary information**[580](index=580&type=chunk) Financial Statements [Consolidated Balance Sheets](index=113&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets increased to **$153.8 million**, total liabilities were **$44.0 million**, and stockholders' equity improved to **$109.8 million**, reflecting the resTORbio merger Consolidated Balance Sheet Data (in thousands) | | Dec 31, 2020 | Dec 31, 2019 | |:---|---:|---:| | **Assets** | | | | Cash and cash equivalents | $84,330 | $10,607 | | Total current assets | $100,336 | $64,186 | | Goodwill | $20,089 | $0 | | **Total assets** | **$153,835** | **$81,587** | | **Liabilities & Equity** | | | | Total current liabilities | $22,479 | $14,865 | | Total liabilities | $44,008 | $27,870 | | Total redeemable convertible preferred stock | $0 | $114,083 | | Total stockholders' equity (deficit) | $109,827 | ($60,366) | | **Total liabilities & stockholders' equity (deficit)** | **$153,835** | **$81,587** | [Consolidated Statements of Operations and Comprehensive Loss](index=114&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For 2020, the company reported a net loss of **$36.7 million** on revenues of **$17.9 million**, an increased loss driven by a **76% rise** in operating expenses due to pipeline advancement and merger costs Consolidated Statement of Operations Data (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | Year Ended Dec 31, 2018 | |:---|---:|---:|---:| | Revenue—related party | $17,903 | $995 | $8,181 | | Research and development | $34,334 | $23,691 | $14,717 | | General and administrative | $22,760 | $8,692 | $8,428 | | **Total operating expenses** | **$57,094** | **$32,383** | **$23,145** | | **Loss from operations** | **($39,191)** | **($31,388)** | **($14,964)** | | **Net loss** | **($36,678)** | **($28,138)** | **($9,299)** | | Net loss per share | ($5.01) | ($13.15) | ($4.78) | [Consolidated Statements of Cash Flows](index=116&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For 2020, net cash used in operating activities was **$41.6 million**, while investing activities provided **$115.2 million**, resulting in a **$74.0 million** net increase in cash, cash equivalents, and restricted cash Consolidated Cash Flow Data (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | Year Ended Dec 31, 2018 | |:---|---:|---:|---:| | Net cash used in operating activities | ($41,552) | ($27,882) | ($18,180) | | Net cash provided by (used in) investing activities | $115,217 | ($47,931) | ($16,058) | | Net cash provided by financing activities | $303 | $76,945 | $11,046 | | **Net increase (decrease) in cash, cash equivalents and restricted cash** | **$73,968** | **$1,132** | **($23,192)** |