cdtx-20240331

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, 2024


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

As of May 13, 2024, the registrant had 4,561,708 shares of Common Stock ($0.0001 par value) outstanding.

CIDARA THERAPEUTICS, INC.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		3
	Item 1. Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited)	5
	Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders ’ Equity (Deficit) for the three months ended March 31 , 202 4 and 202 3 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
	Item 3. Quantitative and Qualitative Disclosures about Market Risk	44
	Item 4. Controls and Procedures	44
PART II. OTHER INFORMATION		46
	Item 1. Legal Proceedings	46
	Item 1A. Risk Factors	46
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	82
	Item 3. Defaults Upon Senior Securities	82
	Item 4. Mine Safety Disclosures	82
	Item 5. Other Information	82
	Item 6. Exhibits	83
SIGNATURES		85

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets


	March 31, 2024		December 31, 2023
(In thousands, except share and per share data)	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	29,018	$	35,778
Accounts receivable	7,281		16,246
Inventory	7,269		6,097
Prepaid expenses and other current assets	3,266		2,734
Total current assets	46,834		60,855
Property and equipment, net	534		557
Finance lease right-of-use asset, net	762		782
Operating lease right-of-use asset	3,599		3,788
Other assets	987		1,048
Total assets	$	52,716	$	67,030

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	5,055	$	3,772
Accrued liabilities	8,241		14,177
Accrued indirect tax liabilities	20,618		18,040
Accrued compensation and benefits	5,723		5,034
Current contract liabilities	24,324		25,095
Current portion of finance lease liability	249		218
Current portion of operating lease liability	1,215		1,082
Total current liabilities	65,425		67,418
Long-term contract liabilities	1,888		4,245
Long-term finance lease liability	510		575
Long-term operating lease liability	2,673		3,002
Total liabilities	70,496		75,240
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at March 31, 2024 and December 31, 2023:
Series X Convertible Preferred Stock, $0.0001 par value; 4,947,759 shares authorized at March 31, 2024 and December 31, 2023; 2,156,713 shares issued and 2,104,472 shares outstanding at March 31, 2024; 2,156,713 shares issued and 2,104,472 shares outstanding and December 31, 2023	—		—
Common stock, $0.0001 par value; 20,000,000 shares authorized at March 31, 2024 and December 31, 2023; 4,561,696 shares issued and outstanding at March 31, 2024 and 4,530,113 shares issued and outstanding at December 31, 2023	1		1
Additional paid-in capital	433,976		433,220
Accumulated deficit	(451,757)		(441,431)
Total stockholders’ deficit	(17,780)		(8,210)
Total liabilities and stockholders’ deficit	$	52,716	$	67,030

See accompanying notes.

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(unaudited)


	Three Months Ended March 31,
(In thousands, except share and per share data)	2024		2023
Revenues:
Collaboration revenue	$	5,637	$	26,107
Product revenue	2,826		—
Total revenues	8,463		26,107
Operating expenses:
Cost of product revenue	1,563		—
Research and development	11,593		18,869
Selling, general and administrative	5,998		4,457
Total operating expenses	19,154		23,326
Income (loss) from operations	(10,691)		2,781
Other income, net:
Interest income, net	365		232
Total other income, net	365		232


Net income (loss) and comprehensive income (loss)	(10,326)		3,013
Allocation of earnings to participating securities	—		(636)
Net income (loss) attributable to common stockholders	$	(10,326)	$	2,377
Basic net earnings (loss) per common share	$	(2.28)	$	0.60
Diluted net earnings (loss) per common share	$	(2.28)	$	0.60

Shares used to compute basic net earnings (loss) per common share	4,537,782		3,932,050
Shares used to compute diluted net earnings (loss) per common share	4,537,782		5,059,514

See accompanying notes.

CIDARA THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited)


	Three Months Ended March 31,
(In thousands)	2024		2023
Operating activities:
Net income (loss)	$	(10,326)	$	3,013
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation	795		640
Non-cash operating lease expense	188		262
Depreciation and amortization	36		32
Amortization of costs to obtain a contract with a customer	16		475
Amortization of finance lease right-of-use asset	20		—
Non-cash interest expense	16		—

Changes in assets and liabilities:
Accounts receivable	8,965		(20,288)
Inventory	(1,172)		—
Prepaid expenses, other current assets, and other assets	(273)		848
Accounts payable and accrued liabilities	(4,851)		3,192
Accrued indirect tax liabilities	2,578		261
Accrued compensation and benefits	689		921
Contract liabilities	(3,128)		36
Operating lease liabilities	(197)		(290)
Net cash used in operating activities	(6,644)		(10,898)

Investing activities:
Purchases of property and equipment	(23)		(94)
Net cash used in investing activities	(23)		(94)

Financing activities:
Proceeds from underwritten public offering, net of issuance costs	—		17,593
Proceeds from public offering of common stock, net of issuance costs	—		8,630
Proceeds from exercise of stock options	—		14
Issuance costs for private placement	(4)		—

Payment of finance lease liabilities	(50)		—
Payment for shares withheld to fund payroll taxes	(39)		—
Net cash (used in) provided by financing activities	(93)		26,237
Net (decrease) increase in cash and cash equivalents	(6,760)		15,245
Cash and cash equivalents at beginning of period	35,778		32,731
Cash and cash equivalents at end of period	$

SEC Form 10-Q filed by Cidara Therapeutics Inc.