Liquidity, Going Concern and Management Plans

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity, Going Concern and Management Plans

Liquidity, Going Concern and Management Plans

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

The Company had cash and cash equivalents and restricted cash of $207.4 million, short-term investments in time deposits of $100.0 million that mature in December 2022, working capital of $38.5 million and an accumulated deficit of $1.4 billion as of September 30, 2022. The Company incurred a net loss of $152.7 million and $409.8 million for the three and nine months ended September 30, 2022, respectively. Since inception, the Company’s operations have been financed primarily through the sale of equity and debt securities. The Company has incurred losses from operations and negative cash flows from operating activities since inception and expects to incur substantial losses in the future.

As discussed further in Note 13, during the nine months ended September 30, 2022, the Company received net proceeds of approximately $229.0 million (after deducting $4.9 million in commissions and expenses) from sales of 31,658,931 shares of its common stock, at a weighted average gross sales price of $7.39 per share pursuant to At-the-Market Sales Agreements with its sales agents.

The Company believes that its current cash and cash equivalents and short-term investments will provide it with the necessary liquidity to continue as a going concern for at least one year from the date of issuance of these financial statements.

In addition to the foregoing, the Company cannot predict the long-term impact on its development timelines, revenue levels and its liquidity due to the worldwide spread of COVID-19 and other macroeconomic factors, including inflationary cost pressures and potential recession indicators. Based upon the Company’s current assessment, it does not expect the impact of the COVID-19 pandemic and other macroeconomic factors to materially impact the Company’s operations. However, the Company is continuing to assess the impact that the spread of COVID-19 and other macroeconomic factors may have on its operations.