Synlogic(SYBX) - 2021 Q3 - Quarterly Report

FORM 10-Q Filing Information This section provides Synlogic, Inc.'s identification, contact, and SEC filing status for its Q3 2021 Form 10-Q Registrant Information This section details Synlogic, Inc.'s identification, contact information, stock trading symbol, and SEC filing status for its Q3 2021 Form 10-Q - Synlogic, Inc. filed its Quarterly Report on Form 10-Q for the period ended September 30, 2021[2] Registrant Details | Detail | Value | | :--- | :--- | | Registrant Name | SYNLOGIC, INC. | | State of Incorporation | Delaware | | Commission File Number | 001-37566 | | Trading Symbol | SYBX | | Exchange | The Nasdaq Capital Market | | Filer Status | Non-accelerated filer, Smaller reporting company | | Common Stock Outstanding (as of Nov 3, 2021) | 69,709,236 shares | Forward-Looking Statements This section clarifies that the report contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from projections Nature of Forward-Looking Statements This section defines forward-looking statements, outlines inherent risks, and disclaims any obligation to update them - The report contains forward-looking statements, identifiable by terms such as 'may,' 'will,' 'expects,' 'intends,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'predicts,' 'potential,' 'continue' or the negative of these terms[7] - Actual results may differ materially from current expectations due to known and unknown risks, uncertainties, and other factors, including those listed under Part II, Item 1A. 'Risk Factors'[8] - The company assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future, except as required by law[8] Key Areas of Forward-Looking Statements Forward-looking statements in the report cover various aspects of the company's operations, including R&D success, clinical trial progress, regulatory approvals, and the impact of public health concerns - Success of research and development efforts - Initiation, progress, timing, costs, and results of clinical trials for product candidates - Time and costs involved in obtaining regulatory approvals for product candidates - Success of collaborations with third parties - Progress, timing, and costs involved in developing manufacturing processes and agreements with third-party manufacturers - Rate of progress and cost of commercialization activities - Expenses incurred in marketing and selling product candidates - Revenue generated by sales of product candidates - Emergence of competing or complementary technological developments - Terms and timing of any additional collaborative, licensing, or other arrangements - Acquisition of businesses, products, and technologies - Need to implement additional infrastructure and internal systems - Need to add personnel and financial and management information systems - Development of major public health concerns, including the novel coronavirus outbreak or other pandemics, and their impact on clinical trials, business operations, and funding requirements - Other risks and uncertainties, including those listed under Part II, Item 1A. 'Risk Factors' PART I - FINANCIAL INFORMATION This section presents Synlogic's unaudited consolidated financial statements and management's financial analysis Item 1. Financial Statements This section provides unaudited consolidated financial statements and related notes Unaudited Consolidated Balance Sheets Total assets increased to $190.5 million from $143.8 million, primarily due to higher cash and marketable securities Consolidated Balance Sheets (in thousands) | (In thousands) | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $62,925 | $32,507 | | Short-term marketable securities | $87,129 | $67,937 | | Total current assets | $156,602 | $106,846 | | Total assets | $190,536 | $143,840 | | Liabilities | | | | Total current liabilities | $10,591 | $8,301 | | Total long-term liabilities | $18,363 | $20,404 | | Stockholders' Equity | | | | Total stockholders' equity | $161,582 | $115,135 | | Total liabilities and stockholders' equity | $190,536 | $143,840 | Unaudited Consolidated Statements of Operations and Comprehensive Loss Revenue increased from Roche collaboration, but net loss widened to $16.0 million (3M) and $45.5 million (9M) due to higher operating expenses Consolidated Statements of Operations and Comprehensive Loss (in thousands, except per share) | (In thousands, except per share) | 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 | $916 | $— | $1,162 | $545 | | Research and development | $13,355 | $10,481 | $35,254 | $36,067 | | General and administrative | $3,616 | $2,956 | $11,528 | $10,250 | | Total operating expenses | $16,971 | $13,437 | $46,782 | $46,317 | | Loss from operations | $(16,055) | $(13,437) | $(45,620) | $(45,772) | | Net loss | $(16,016) | $(13,222) | $(45,472) | $(44,585) | | Net loss per share - basic and diluted | $(0.29) | $(0.36) | $(0.91) | $(1.27) | | Comprehensive loss | $(16,018) | $(13,357) | $(45,477) | $(44,616) | Unaudited Consolidated Statements of Stockholders' Equity Stockholders' equity significantly increased from $115.1 million to $161.6 million, primarily driven by proceeds from common stock issuances Consolidated Statements of Stockholders' Equity (in thousands, except share amounts) | (In thousands, except share amounts) | Balance at Dec 31, 2020 | Balance at Sep 30, 2021 | | :--- | :--- | :--- | | Common stock, $0.001 par value (shares) | 38,183,273 | 69,707,541 | | Common stock, $0.001 par value (amount) | $38 | $70 | | Additional paid-in capital | $345,394 | $437,286 | | Accumulated deficit | $(230,311) | $(275,783) | | Total stockholders' equity | $115,135 | $161,582 | - Proceeds from issuance of common stock (underwritten public offerings), net of issuance costs: $81,019 thousand for the nine months ended September 30, 2021[20] - Proceeds from issuance of common stock (ATM offering), net of issuance costs: $8,050 thousand for the nine months ended September 30, 2021[20] Unaudited Consolidated Statements of Cash Flows Net cash used in operating activities increased to $39.1 million, while net cash provided by financing activities significantly increased to $89.5 million, leading to a net increase in cash of $30.4 million Consolidated Statements of Cash Flows (in thousands) | (In thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39,138) | $(29,665) | | Net cash (used in) provided by investing activities | $(19,946) | $25,373 | | Net cash provided by financing activities | $89,502 | $4,923 | | Net increase in cash, cash equivalents and restricted cash | $30,418 | $631 | | Cash, cash equivalents and restricted cash at end of period | $64,022 | $27,912 | - Financing activities for 9M 2021 included $81.2 million from common stock offerings and $8.0 million from ATM offerings[23] - Investing activities for 9M 2021 included $98.0 million in purchases of marketable securities, offset by $77.3 million from maturities and $1.3 million from redemptions[23] [Notes to Unaud