cdtx-20220331

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 MARCH 31, 2022


☐			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: 001-36912

CIDARA THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

Delaware

46-1537286

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

6310 Nancy Ridge Drive,

Suite 101

San Diego,

92121

(858)

752-6170

(Address of Principal Executive Offices, including Zip Code)

(Registrant’s Telephone Number, Including Area Code)

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, Par Value $0.0001 Per Share

CDTX

The Nasdaq Stock Market LLC

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 registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 29, 2022, the registrant had 69,049,497 shares of Common Stock ($0.0001 par value) outstanding.

CIDARA THERAPEUTICS, INC.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		3
	Item 1. Financial Statements	3
	Condensed Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)	5
	Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity for the three months ended March 31, 2022 and 2021 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Item 3. Quantitative and Qualitative Disclosures about Market Risk	33
	Item 4. Controls and Procedures	33
PART II. OTHER INFORMATION		33
	Item 1. Legal Proceedings	35
	Item 1A. Risk Factors	35
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	72
	Item 3. Defaults Upon Senior Securities	73
	Item 4. Mine Safety Disclosures	73
	Item 5. Other Information	73
	Item 6. Exhibits	74
SIGNATURES		75

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets


	March 31, 2022		December 31, 2021
(In thousands, except share and per share data)	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	36,488	$	59,680
Restricted cash	1,482		2,593
Accounts receivable	8,783		5,356
Prepaid expenses and other current assets	5,254		4,069
Total current assets	52,007		71,698
Property and equipment, net	239		256
Operating lease right-of-use asset	2,030		2,287
Other assets	1,019		1,084
Total assets	$	55,295	$	75,325

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,861	$	1,301
Accrued liabilities	9,234		10,198
Accrued compensation and benefits	3,079		4,859
Current deferred revenue	14,260		13,920
Current portion of term loan	1,481		2,591
Current portion of lease liability	1,190		1,148
Total current liabilities	32,105		34,017
Long-term deferred revenue	17,229		18,413
Lease liability	1,004		1,322
Total liabilities	50,338		53,752
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at March 31, 2022 and December 31, 2021:
Series X Convertible Preferred stock, $0.0001 par value; 4,947,759 shares authorized at March 31, 2022 and December 31, 2021; 1,870,713 shares issued and 1,818,472 shares outstanding at March 31, 2022 and December 31, 2021	—		—
Common stock, $0.0001 par value; 200,000,000 shares authorized at March 31, 2022 and December 31, 2021; 69,049,247 shares issued and outstanding at March 31, 2022 and 67,863,674 shares issued and outstanding at December 31, 2021	7		7
Additional paid-in capital	400,398		398,733
Accumulated deficit	(395,448)		(377,167)
Total stockholders' equity	4,957		21,573
Total liabilities and stockholders' equity	$	55,295	$	75,325

See accompanying notes.

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)


	Three Months Ended March 31,
(In thousands, except share and per share data)	2022		2021
Revenues:
Collaboration revenue	$	7,109	$	2,408
Total revenues	7,109		2,408
Operating expenses:
Research and development	20,166		15,849
General and administrative	5,204		4,781
Total operating expenses	25,370		20,630
Loss from operations	(18,261)		(18,222)
Other expense:
Interest expense, net	(20)		(70)
Total other expense, net	(20)		(70)
Net loss and comprehensive loss	(18,281)		(18,292)


Net loss attributable to common shareholders	$	(18,281)	$	(18,292)
Basic and diluted net loss per common share	$	(0.27)	$	(0.39)


Shares used to compute basic and diluted net loss per common share	68,138,116		46,967,213

See accompanying notes.

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Three Months Ended March 31,
(In thousands)	2022		2021
Operating activities:
Net loss	$	(18,281)	$	(18,292)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	1,338		879
Depreciation and amortization	39		57
Non-cash interest expense	1		3
Amortization of debt issuance costs	—		1
Amortization of operating lease right-of-use assets	258		206
Changes in assets and liabilities:
Accounts receivable	(3,427)		11,164
Prepaid expenses, other current assets, and other assets	(1,120)		461
Accounts payable and accrued liabilities	657		(253)
Accrued compensation and benefits	(1,953)		1,451
Deferred revenue	(844)		2,753
Operating lease liabilities	(276)		(223)
Net cash used in operating activities	(23,608)		(1,793)

Investing activities:
Purchases of property and equipment	(84)		(12)
Net cash used in investing activities	(84)		(12)

Financing activities:

Proceeds from public offering of common stock, net of issuance costs	500		8,755
Proceeds from exercise of stock options	—		1
Principal repayments of Term Loan	(1,111)		(1,111)
Net cash (used in) provided by financing activities	(611)		7,645
Net (decrease) increase in cash, cash equivalents, and restricted cash	(24,303)		5,840
Cash, cash equivalents, and restricted cash at beginning of period	62,273		42,949
Cash, cash equivalents, and restricted cash at end of period	$	37,970	$	48,789

Supplemental disclosure of cash flows:
Interest paid	$	25	$	75
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	16	$	—

See accompanying notes.

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ Equity

(unaudited)


	Three Months Ended March 31, 2022
	Series X Convertible Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders' Equity
(In thousands, except share data)	Shares	Amount		Shares	Amount
Balance, December 31, 2021	1,818,472	$	—	67,863,674	$	7	$	398,733	$	(377,167)	$	21,573


Public offering of common stock, net of issuance costs	—	—		644,265	—		500		—		500

Issuance of common stock for restricted share units vested	—	—

SEC Form 10-Q filed by Cidara Therapeutics Inc.