[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements, management's analysis of financial condition and operations, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, highlighting increased net loss, strengthened financial position post-IPO, and cash flow dynamics [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, showing significant asset growth and a shift to positive stockholders' equity post-IPO Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $445,811 | $65,376 | | Total current assets | $492,313 | $119,990 | | **Total assets** | **$521,948** | **$124,825** | | **Liabilities & Equity** | | | | Total current liabilities | $19,588 | $13,680 | | Total liabilities | $38,957 | $17,404 | | Convertible preferred stock | $0 | $221,405 | | Total stockholders' equity (deficit) | $482,991 | ($113,984) | | **Total liabilities, convertible preferred stock and stockholders' equity (deficit)** | **$521,948** | **$124,825** | - Following the IPO in July 2021, **all outstanding convertible preferred stock converted into 71,263,685 common shares**, eliminating the liability[27](index=27&type=chunk)[131](index=131&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section presents the company's operating results, showing a substantial increase in net loss driven by higher R&D and administrative expenses Condensed Consolidated Statements of Operations (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $19,951 | $9,068 | $49,794 | $19,485 | | General and administrative | $6,916 | $2,020 | $15,696 | $5,052 | | Contribution to Erasca Foundation | $17,497 | $0 | $17,497 | $0 | | **Total operating expenses** | **$46,044** | **$11,163** | **$93,835** | **$42,282** | | **Net loss** | **($46,069)** | **($10,608)** | **($92,300)** | **($39,757)** | | **Net loss per share** | **($0.46)** | **($0.50)** | **($1.90)** | **($1.91)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines cash flow activities, with significant cash generation from financing activities offsetting increased operating cash consumption Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($57,118) | ($19,591) | | Net cash used in investing activities | ($641) | ($87,767) | | Net cash provided by financing activities | $438,290 | $140,104 | | **Net increase in cash, cash equivalents and restricted cash** | **$380,531** | **$32,746** | - Financing activities were the primary cash source, driven by **$317.0 million net IPO proceeds** and **$119.4 million from convertible preferred stock issuance**[19](index=19&type=chunk)[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, financial components, and significant corporate events, including the IPO and R&D focus - The company, a clinical-stage precision oncology firm, has an **accumulated deficit of $207.7 million** as of September 30, 2021, due to significant operating losses since inception[24](index=24&type=chunk)[25](index=25&type=chunk) - On July 20, 2021, the company completed its IPO, selling **21,562,500 common shares at $16.00 per share**, generating **$317.0 million in net proceeds**[27](index=27&type=chunk) - Asset acquisition and license agreements resulted in **IPR&D expenses of $10.8 million** for the nine months ended September 30, 2021, and **$17.7 million** for the same period in 2020[94](index=94&type=chunk)[104](index=104&type=chunk)[219](index=219&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's clinical oncology focus, increased operating losses due to R&D, and strengthened liquidity from the July 2021 IPO - The company focuses on RAS/MAPK pathway-driven cancer therapies, with a pipeline of **11 programs**, including clinical-stage candidates **ERAS-007** and **ERAS-601**[171](index=171&type=chunk)[175](index=175&type=chunk) - Net loss for Q3 2021 was **$46.1 million**, up from **$10.6 million** in Q3 2020, with the nine-month net loss reaching **$92.3 million** from **$39.8 million** year-over-year[183](index=183&type=chunk) - As of September 30, 2021, the company held **$486.6 million in cash, cash equivalents, and investments**, projected to fund operations for at least the **next 24 months**[182](index=182&type=chunk)[185](index=185&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) This section analyzes the significant increase in operating expenses, primarily driven by higher R&D, G&A costs, and a one-time foundation contribution Comparison of Operating Expenses - Three Months Ended Sep 30 (in thousands) | Expense Category | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Research and development | $19,951 | $9,068 | $10,883 | | In-process research and development | $1,680 | $75 | $1,605 | | General and administrative | $6,916 | $2,020 | $4,896 | | Contribution to Erasca Foundation | $17,497 | $0 | $17,497 | | **Total operating expenses** | **$46,044** | **$11,163** | **$34,881** | Comparison of Operating Expenses - Nine Months Ended Sep 30 (in thousands) | Expense Category | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Research and development | $49,794 | $19,485 | $30,309 | | In-process research and development | $10,848 | $17,745 | ($6,897) | | General and administrative | $15,696 | $5,052 | $10,644 | | Contribution to Erasca Foundation | $17,497 | $0 | $17,497 | | **Total operating expenses** | **$93,835** | **$42,282** | **$51,553** | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity, primarily from IPO proceeds, with **$486.6 million** in cash and investments expected to fund operations for **24 months** - The company completed its IPO in July 2021, raising **$317.0 million in net proceeds**[223](index=223&type=chunk) - The company's **$486.6 million in cash, cash equivalents, and investments** as of September 30, 2021, are expected to fund operations for at least the **next 24 months**[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no material changes to the company's market risk exposures, including interest rate, foreign currency, and inflation risks - No material changes have occurred in the company's market risk profile regarding interest rates, foreign currency, or inflation since its Prospectus disclosures[244](index=244&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The principal executive and financial officers concluded the company's disclosure controls and procedures were effective as of the reporting period end[246](index=246&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[247](index=247&type=chunk) [PART II—OTHER INFORMATION](index=58&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - As of the filing date, the company is not involved in any material legal proceedings[250](index=250&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the prior quarterly report - No material changes have been made to the risk factors from the prior quarterly report[251](index=251&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered equity sales and details IPO proceeds of **$345.0 million**, with no funds used as of September 30, 2021 - The company's IPO in July 2021 generated **$345.0 million in gross proceeds** (**$317.0 million net**)[181](index=181&type=chunk)[254](index=254&type=chunk) - As of September 30, 2021, no IPO proceeds have been used, and the planned use remains unchanged[255](index=255&type=chunk) [Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable to the company's current financial status [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) This section contains no other material information to report [Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and required CEO/CFO certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to ______________ | --- | --- | |------------------------------------------------------------------------------------------------------------------ ...