cccc-10q_20200930.htm

 

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 September 30, 2020

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 Number: 001-39567

 

C4 Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

47-5617627

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

490 Arsenal Way, Suite 200

Watertown, MA

02472

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (617) 231-0700

 

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, $0.0001 par value per share

 

CCCC

 

The Nasdaq Global Select 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, 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 November 10, 2020, the registrant had 43,029,500 shares of common stock, $0.0001 par value per share, outstanding.

 

 


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Form 10-Q”), including the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains express or implied forward-looking statements that are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Forward-looking statements in this Form 10-Q include, but are not limited to, statements about:

 

the initiation, timing, progress, results, safety and efficacy, and cost of our research and development programs and our current and future preclinical studies and clinical trials, including statements regarding the timing of initiation and completion of studies or trials, the period during which the results of the trials will become available, and our research and development programs;

 

the ultimate impact of the current coronavirus pandemic, or the COVID-19 pandemic, or any other health epidemic, on our business, manufacturing, clinical trials, research programs, supply chain, regulatory review, healthcare systems or the global economy as a whole;

 

risks related to the direct or indirect impact of the COVID-19 pandemic or any future large-scale adverse health event, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays in diagnoses, initiation or continuation of treatment for diseases that may be addressed by our development candidates and investigational medicines, or in patient enrollment in clinical trials, potential clinical trials, regulatory review or supply chain disruptions, and other potential impacts to our business, the effectiveness or timeliness of steps taken by us to mitigate the impact of the pandemic, and our ability to execute business continuity plans to address disruptions caused by the COVID-19 pandemic or future large-scale adverse health event;

 

our ability to obtain funding for our operations necessary to complete further development, manufacturing and commercialization of our product candidates;

 

our ability to obtain and maintain regulatory approval for any of our current or future product candidates;

 

the period over which we anticipate our existing cash and cash equivalents and short-term investments will be sufficient to fund our operating expenses and capital expenditure requirements;

 

our ability to identify and develop product candidates for treatment of additional disease indications;

 

the potential attributes and benefits of our product candidates;

 

the rate and degree of market acceptance and clinical utility for any product candidates we may develop;

 

the pricing and reimbursement of our product candidates, if approved;

 

the effects of competition with respect to any of our current or future product candidates, as well as innovations by current and future competitors in our industry;

 

the implementation of our strategic plans for our business, any product candidates we may develop and our TORPEDO platform;

 

the ability and willingness of our third-party strategic collaborators to continue research, development and manufacturing activities relating to our product candidates, including our ability to advance programs under our existing collaboration agreements with F. Hoffman-La Roche Ltd., or Roche, Biogen MA, Inc., or Biogen, and Calico Life Sciences LLC, or Calico, or other new collaboration agreements;

 

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates;

 

estimates of our future expenses, revenues, capital requirements, and our needs for additional financing;

 

future agreements with third parties in connection with the manufacturing and commercialization of our product candidates, if approved;

 

the size and growth potential of the markets for our product candidates, and our ability to serve those markets;

 

our financial performance;

 

regulatory developments in the United States and foreign countries;

 

our ability to contract with third-party suppliers and manufacturers and their ability to perform adequately;

 

the success of competing therapies that are or may become available;

 

our ability to attract and retain key scientific or management personnel;

 

developments relating to our competitors and our industry; and

 

other risks and uncertainties, including those discussed in Part II, Item 1A - Risk Factors in this Form 10-Q. 

 


In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “could,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the section entitled “Risk Factors” and elsewhere in this Form 10-Q. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those expressed or implied by the forward-looking statements. No forward-looking statement is a promise or a guarantee of future performance.

The forward-looking statements in this Form 10-Q represent our views as of the date of this Form 10-Q. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should therefore not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Form 10-Q.

This Form 10-Q includes statistical and other industry and market data that we obtained from industry publications and research, surveys, and studies conducted by third parties. Industry publications and third-party research, surveys, and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. We have not independently verified the information contained in such sources.

Risks Associated with Our Business

Our ability to implement our business strategy is subject to numerous risks that you should be aware of before making an investment decision. These risks are described more fully in the section entitled “Risk Factors” in this Form 10-Q. These risks include, among others:

 

We are an early stage biopharmaceutical company with a limited operating history and have incurred significant losses since our inception. To date, we have not generated any revenue from product sales. We expect to continue to incur significant expenses and increasing operating losses for at least the next several years and may never achieve or maintain profitability. Our net loss was $44.5 million for the nine months ended September 30, 2020, $34.1 million for the year ended December 31, 2019 and $15.7 million for the year ended December 31, 2018.

 

We will need substantial additional funding to pursue our business objectives and continue our operations. If we are unable to raise capital when needed, we may be required to delay, limit, reduce or terminate our research or product development programs or future commercialization efforts.

 

Our approach to the discovery and development of product candidates based on our TORPEDO platform is unproven, which makes it difficult to predict the time, cost of development and likelihood of successfully developing any products.

 

All of our product candidates are still in preclinical development. Our business could be harmed if we are unable to advance to clinical development, develop, obtain regulatory approval for and commercialize our product candidates or experience significant delays in doing any of these things.

 

We cannot be certain of the timely completion or outcome of our preclinical testing and clinical trials. In addition, the results of preclinical studies may not be predictive of the results of clinical trials and the results of any early-stage clinical trials we commence may not be predictive of the results of later-stage clinical trials.

 

Our preclinical studies and clinical trials may fail to demonstrate adequately the safety, potency, purity and efficacy of any of our product candidates, which would prevent or delay development, regulatory approval and commercialization of our current and future product candidates.

 

We have entered into collaboration agreements with Roche, Biogen and Calico and may in the future seek to enter into collaborations with third parties for the development and commercialization of certain of our product candidates. If we fail to enter into these types of new collaborations, or if our existing collaborations are not successful, we may be unable to continue development of our product candidates, we would not receive any contemplated milestone payments or royalties, and we could fail to capitalize on the market potential of our product candidates.

 

The continuing effects of the novel coronavirus disease, COVID-19, could adversely impact our business, including our preclinical studies and clinical trials.

 

We face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than we do.

 

We rely, and expect to continue to rely, on third parties for the manufacture of our product candidates for preclinical and clinical testing, as well as for commercial manufacture if any of our product candidates receive marketing approval. This reliance on third parties may increase the risk that we will not have sufficient quantities of our product candidates in a timely manner, or at an acceptable cost or quality.

 


 

If we are unable to obtain required marketing approvals for, commercialize, manufacture, obtain and maintain patent protection for or gain market acceptance of our product candidates, or if we experience significant delays in doing so, our business will be materially harmed and our ability to generate revenue from product sales will be materially impaired.

 

If we are unable to obtain and maintain patent protection for our technology and products or if the scope of the patent protection obtained is not sufficiently broad, our competitors could develop and commercialize technology and products similar or identical to ours, and our ability to successfully commercialize our technology and products may be impaired.

NOTE REGARDING COMPANY REFERENCES

Unless the context otherwise requires, the terms “C4 Therapeutics,” “the Company,” “we,” “us,” and “our” in this Form 10-Q refer to C4 Therapeutics, Inc. and its consolidated subsidiary.

NOTE REGARDING TRADEMARKS

We own or have rights to various trademarks, service marks and trade names that are used in connection with the operation of our business, including our company name, C4 Therapeutics, our logo, the name of our TORPEDO™ technology platform and the names of our BIDAC™ and MONODAC™ protein degrader product candidates. This Form 10-Q may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names or products in this prospectus is not intended to and does not imply a relationship with, or endorsement or sponsorship by, us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the ®, TM or SM symbols, but the omission of such references is not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable owner of these trademarks, service marks and trade names.

 

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statement of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholder’s Deficit

3

 

Condensed Consolidated Statements of Cash Flows

4

 

Notes to Unaudited Condensed Consolidated Financial Statements

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

31

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

33

Item 1A.

Risk Factors

33

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

71

Item 3.

Defaults Upon Senior Securities

71

Item 4.

Mine Safety Disclosures

71

Item 5.

Other Information

71

Item 6.

Exhibits

72

Signatures

73

 

 

 

i


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

C4 THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

 

SEPTEMBER 30,

2020

 

 

DECEMBER 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

63,434

 

 

$

90,549

 

Short-term investments

 

 

135,979

 

 

 

 

Accounts receivable

 

 

4,141

 

 

 

4,623

 

Prepaid expenses and other current assets

 

 

5,370

 

 

 

1,595

 

Total current assets

 

 

208,924

 

 

 

96,767

 

Property and equipment, net

 

 

3,580

 

 

 

4,463

 

Right-of-use asset

 

 

13,544

 

 

 

14,453

 

Restricted cash

 

 

2,577

 

 

 

2,577

 

Other assets

 

 

502

 

 

 

 

Total assets

 

$

229,127

 

 

$

118,260

 

Total Liabilities, Redeemable Convertible Preferred Stock and Stockholders’

   Deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,264

 

 

$

5,385

 

Accrued expenses and other current liabilities

 

 

9,830

 

 

 

6,671

 

Deferred revenue, current

 

 

23,915

 

 

 

20,705

 

Operating lease liability, current

 

 

1,000

 

 

 

880

 

Total current liabilities

 

 

40,009

 

 

 

33,641

 

Deferred revenue, net of current

 

 

61,083

 

 

 

72,718

 

Operating lease liability, net of current

 

 

12,097

 

 

 

12,869

 

Warrant liability

 

 

5,465

 

 

 

 

Long-term debt

 

 

9,877

 

 

 

 

Total liabilities

 

 

128,531

 

 

 

119,228

 

Commitments and Contingencies (see Note 5 and Note 8)

 

 

 

 

 

 

 

 

Series Seed redeemable convertible preferred stock, par value of $0.0005 per share; 4,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 4,000,000 shares issued and outstanding as of September 30, 2020 and December 31, 2019; liquidation and redemption value of $1,000 as of September 30, 2020 and December 31, 2019

 

 

1,000

 

 

 

1,000

 

Series A redeemable convertible preferred stock, par value of $0.0005 per share; 110,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 109,145,900 shares issued and outstanding as of September 30, 2020 and December 31, 2019, liquidation and redemption value of $109,995 as of September 30, 2020 and December 31, 2019

 

 

109,995

 

 

 

109,995

 

Series B redeemable convertible preferred stock, par value of $0.0005 per share; 150,000,000 and 0 shares authorized as of September 30, 2020 and December 31, 2019; 142,857,142 and 0 shares issued and outstanding as of September 30, 2020 and December 31, 2019; liquidation and redemption value of $145,525 and $0 as of September 30, 2020 and December 31, 2019

 

 

145,525

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Common stock, par value of $0.0001 per share; 370,000,000 and 180,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 1,634,121 and 1,426,641 shares issued and outstanding as of September 30, 2020 and December 31, 2019

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

6,095

 

 

 

5,524

 

Accumulated other comprehensive loss

 

 

8

 

 

 

 

Accumulated deficit

 

 

(162,028

)

 

 

(117,488

)

Total stockholders’ deficit

 

 

(155,924

)

 

 

(111,963

)

Total liabilities, redeemable convertible preferred stock and

   stockholders’ deficit

 

 

229,127

 

 

 

118,260

 

 

See accompanying notes to condensed consolidated financial statements.

1


C4 THERAPEUTICS, INC.

Condensed Consolidated Statement of Operations and Comprehensive Loss

(In thousands, except share and per share data)

(Unaudited)

 

 

 

THREE MONTHS ENDED

SEPTEMBER 30,

 

 

NINE MONTHS ENDED

SEPTEMBER 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue from collaboration agreements

 

$

8,447

 

 

$

5,364

 

 

$

24,933

 

 

$

13,172

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

23,935

 

 

 

12,948

 

 

 

58,007

 

 

 

32,042

 

General and administrative

 

 

2,861

 

 

 

2,417

 

 

 

8,472

 

 

 

6,083

 

Total operating expenses

 

 

26,796

 

 

 

15,365

 

 

 

66,479

 

 

 

38,125

 

Operating loss

 

 

(18,349

)

 

 

(10,001

)

 

 

(41,546

)

 

 

(24,953

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense)

 

 

(352

)

 

 

558

 

 

 

(170

)

 

 

1,454

 

Amortization of debt discount

 

 

(203

)

 

 

 

 

 

(229

)

 

 

 

Change in fair value of warrant liability

 

 

(3,141

)

 

 

 

 

 

(3,141

)

 

 

 

Other (expense) income, net

 

 

43

 

 

 

(1

)

 

 

44

 

 

 

323

 

Total other income (expense), net

 

 

(3,653

)

 

 

557

 

 

 

(3,496

)

 

 

1,777

 

Loss before income taxes

 

 

(22,002

)

 

 

(9,444

)

 

 

(45,042

)

 

 

(23,176

)

Income tax expense (benefit)

 

 

(167

)

 

 

650

 

 

 

(502

)

 

 

900

 

Net loss

 

 

(21,835

)

 

 

(10,094

)

 

 

(44,540

)

 

 

(24,076

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on short-term investments

 

 

(10

)

 

 

5

 

 

 

8

 

 

 

(4

)

Comprehensive loss

 

 

(21,845

)

 

 

(10,089

)

 

 

(44,532

)

 

 

(24,080

)

Accrual of preferred stock dividends

 

 

(5,212

)

 

 

(2,201

)

 

 

(10,363

)

 

 

(6,531

)

Net loss attributable to common stockholders

 

 

(27,047

)

 

 

(12,295

)

 

 

(54,903

)

 

 

(30,607

)

Net loss per share attributable to common stockholders—basic

   and diluted (Note 12)

 

$

(17.55

)

 

$

(8.93

)

 

$

(36.76

)

 

$

(22.59

)

Weighted-average number of shares used in computed net loss

   per share —basic and diluted

 

 

1,540,902

 

 

 

1,376,365

 

 

 

1,493,521

 

 

 

1,354,734

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

2


C4 THERAPEUTICS, INC.

Condensed Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholder’s Deficit

(In thousands, except share and per share data)

(Unaudited)  

 

 

 

SERIES SEED

REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

SERIES A REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

SERIES B REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

 

COMMON STOCK

 

 

ADDITIONAL

PAID-IN

 

 

ACCUMULATED

OTHER

COMPREHENSIVE

 

 

ACCUMULATED

 

 

TOTAL

STOCK

HOLDERS’

 

 

 

SHARES

 

 

AMOUNT

 

 

SHARES

 

 

AMOUNT

 

 

SHARES

 

 

AMOUNT

 

 

 

SHARES

 

 

AMOUNT

 

 

CAPITAL

 

 

INCOME (LOSS)

 

 

DEFICIT

 

 

DEFICIT

 

Balance as of June 30, 2019

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

 

 

 

 

 

 

 

1,354,373

 

 

$

1

 

 

$

3,957

 

 

 

4

 

 

$

(97,371

)

 

$

(93,409

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72,511

 

 

 

 

 

 

213

 

 

 

 

 

 

 

 

 

213

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

627

 

 

 

 

 

 

 

 

 

627

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,112

)

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

(6

)

Net unrealized gain on available-

   for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,094

)

 

 

(10,094

)

Balance as of September 30, 2019

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

 

 

$

 

 

 

 

1,420,772

 

 

$

1

 

 

$

4,791

 

 

$

 

 

$

(107,465

)

 

$

(102,673

)

Balance as of June 30, 2020

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

138,571,428

 

 

$

141,026

 

 

 

 

1,490,336

 

 

$

1

 

 

$

5,129

 

 

 

(2

)

 

$

(140,193

)

 

$

(135,065

)

Issuance of Series B convertible

   preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,285,714

 

 

 

4,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

164,057

 

 

 

 

 

 

530

 

 

 

 

 

 

 

 

 

530

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

436

 

 

 

 

 

 

 

 

 

436

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,272

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,835

)

 

 

(21,835

)

Balance as of September 30, 2020

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

142,857,142

 

 

$

145,525

 

 

 

 

1,634,121

 

 

$

1

 

 

$

6,095

 

 

$

8

 

 

$

(162,028

)

 

$

(155,924

)

 

 

 

SERIES SEED

REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

SERIES A REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

SERIES B REDEEMABLE

CONVERTIBLE

PREFERRED STOCK

 

 

 

COMMON STOCK

 

 

ADDITIONAL

PAID-IN

 

 

ACCUMULATED

OTHER

COMPREHENSIVE

 

 

ACCUMULATED

 

 

TOTAL

STOCK

HOLDERS’

 

 

 

SHARES

 

 

AMOUNT

 

 

SHARES

 

 

AMOUNT

 

 

SHARES

 

 

AMOUNT

 

 

 

SHARES

 

 

AMOUNT

 

 

CAPITAL

 

 

INCOME (LOSS)

 

 

DEFICIT

 

 

DEFICIT

 

Balance as of December 31, 2018

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

 

 

 

 

 

 

 

1,338,956

 

 

$

1

 

 

$

3,638

 

 

 

 

 

$

(83,389

)

 

$

(79,750

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

87,928

 

 

 

 

 

 

260

 

 

 

 

 

 

 

 

 

260

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

913

 

 

 

 

 

 

 

 

 

913

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,112

)

 

 

 

 

 

(20

)

 

 

 

 

 

 

 

 

(20

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,076

)

 

 

(24,076

)

Balance as of September 30, 2019

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

 

 

$

 

 

 

 

1,420,772

 

 

$

1

 

 

$

4,791

 

 

$

 

 

$

(107,465

)

 

$

(102,673

)

Balance as of December 31, 2019

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

 

 

 

 

 

 

 

1,426,641

 

 

$

1

 

 

$

5,524

 

 

 

 

 

$

(117,488

)

 

$

(111,963

)

Issuance of Series B convertible

   preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

142,857,142

 

 

 

145,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251,466

 

 

 

 

 

 

795

 

 

 

 

 

 

 

 

 

795

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

713

 

 

 

 

 

 

 

 

 

713

 

Repurchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43,986

)

 

 

 

 

 

(210

)

 

 

 

 

 

 

 

 

(210

)

Vested stock option settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(727

)

 

 

 

 

 

 

 

 

(727

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(44,540

)

 

 

(44,540

)

Balance as of September 30, 2020

 

 

4,000,000

 

 

$

1,000

 

 

 

109,145,900

 

 

$

109,995

 

 

 

142,857,142

 

 

$

145,525

 

 

 

 

1,634,121

 

 

$

1

 

 

$

6,095

 

 

$

8

 

 

$

(162,028

)

 

$

(155,924

)

 

See accompanying notes to condensed consolidated financial statements.

 

 

3


 

C4 THERAPEUTICS, INC.

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)  

 

 

 

NINE MONTHS ENDED

SEPTEMBER 30,

 

 

 

2020

 

 

2019

 

Cash flows used in operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(44,540