0000950170-23-062011.txt : 20231109 0000950170-23-062011.hdr.sgml : 20231109 20231109160536 ACCESSION NUMBER: 0000950170-23-062011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 73 CONFORMED PERIOD OF REPORT: 20230930 FILED AS OF DATE: 20231109 DATE AS OF CHANGE: 20231109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Intellia Therapeutics, Inc. CENTRAL INDEX KEY: 0001652130 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 364785571 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-37766 FILM NUMBER: 231392285 BUSINESS ADDRESS: STREET 1: 40 ERIE STREET STREET 2: SUITE 130 CITY: CAMBRIDGE STATE: MA ZIP: 02139 BUSINESS PHONE: 857-285-6200 MAIL ADDRESS: STREET 1: 40 ERIE STREET STREET 2: SUITE 130 CITY: CAMBRIDGE STATE: MA ZIP: 02139 10-Q 1 ntla-20230930.htm 10-Q 10-Q
Q3--12-31true0001652130falsehttp://fasb.org/us-gaap/2023#LicenseAndServiceMemberhttp://fasb.org/us-gaap/2023#LicenseAndServiceMemberhttp://fasb.org/us-gaap/2023#LicenseAndServiceMemberhttp://fasb.org/us-gaap/2023#LicenseAndServiceMember0001652130us-gaap:CorporateDebtSecuritiesMember2022-12-310001652130ntla:AvencellMember2022-12-310001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2023-09-300001652130us-gaap:RestrictedStockMember2023-01-012023-09-300001652130us-gaap:AssetBackedSecuritiesMember2023-09-300001652130us-gaap:AdditionalPaidInCapitalMember2023-06-300001652130ntla:AvencellCoCoAgreementMemberntla:AvencellMember2023-01-012023-09-300001652130us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2023-07-012023-09-3000016521302022-01-012022-12-310001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2016-04-012023-09-300001652130ntla:AvencellcocoMember2023-01-012023-09-300001652130ntla:JointVentureAvenCellMemberntla:AvencelllcaMember2023-09-300001652130us-gaap:FairValueInputsLevel2Memberntla:FinancialInstitutionDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-3000016521302023-07-012023-09-300001652130us-gaap:RetainedEarningsMember2022-01-012022-03-3100016521302023-01-012023-03-310001652130us-gaap:RetainedEarningsMember2022-04-012022-06-300001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2023-01-012023-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001652130ntla:AvencellMember2021-07-300001652130us-gaap:RelatedPartyMemberntla:AvencellMember2023-09-300001652130us-gaap:FairValueInputsLevel1Memberntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:RewriteTherapeuticsDelawareCorporationMember2022-02-022022-02-020001652130us-gaap:RetainedEarningsMember2023-03-310001652130ntla:WinterStreetLeaseMember2022-02-012022-02-280001652130us-gaap:RetainedEarningsMember2023-09-3000016521302022-12-310001652130us-gaap:AdditionalPaidInCapitalMember2023-03-310001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2016-05-012016-05-310001652130ntla:RegulatoryApprovalMilestoneMemberntla:RewriteTherapeuticsDelawareCorporationMember2022-02-022022-02-020001652130us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001652130ntla:PreferredStockPurchaseAgreementMemberntla:CellexAndBxlsMemberntla:JointVentureAvenCellMember2021-07-300001652130ntla:TwoThousandNineteenSalesAgreementMember2022-01-012022-03-310001652130ntla:RewriteTherapeuticsDelawareCorporationMember2022-02-020001652130us-gaap:RetainedEarningsMember2023-07-012023-09-300001652130us-gaap:AdditionalPaidInCapitalMember2022-12-310001652130us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100016521302022-01-012022-03-310001652130ntla:AvencellCoCoAgreementMemberntla:AvencellMember2022-07-012022-09-300001652130ntla:ResearchAndDevelopmentServicesMemberntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2023-01-012023-09-300001652130us-gaap:CorporateDebtSecuritiesMember2023-09-300001652130us-gaap:AdditionalPaidInCapitalMember2022-03-310001652130ntla:RegeneronPharmaceuticalsIncMemberus-gaap:RelatedPartyMember2022-12-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2022-01-012022-09-300001652130us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:AssetBackedSecuritiesMember2022-12-3100016521302023-11-030001652130us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001652130ntla:AvencellMember2023-07-012023-09-300001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2022-09-300001652130ntla:KyvernaTherapeuticsIncMember2022-01-012022-09-300001652130us-gaap:CashMember2023-01-012023-09-300001652130ntla:RewriteAcquisitionMemberntla:RewriteTherapeuticsDelawareCorporationMember2023-01-012023-01-310001652130us-gaap:RestrictedStockMember2023-09-300001652130us-gaap:CommonStockMember2023-03-310001652130ntla:KyvernaTherapeuticsIncMember2023-01-012023-09-300001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2023-09-300001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2023-10-012023-10-310001652130ntla:AtTheMarketOfferingsMember2022-01-012022-03-310001652130us-gaap:CommonStockMember2023-01-012023-03-310001652130ntla:SparingVisionMember2021-10-310001652130ntla:AvencellCoCoAgreementMemberntla:AvencellMember2023-07-012023-09-300001652130ntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:TwoThousandNineteenSalesAgreementMember2022-03-310001652130ntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130ntla:RewriteAcquisitionMemberntla:RewriteTherapeuticsDelawareCorporationMember2023-02-280001652130ntla:FinancialInstitutionDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2022-07-012022-09-300001652130us-gaap:FairValueInputsLevel1Memberntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:AdditionalPaidInCapitalMemberntla:AtTheMarketOfferingsMember2022-07-012022-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001652130us-gaap:GeneralAndAdministrativeExpenseMember2023-07-012023-09-3000016521302022-04-012022-06-300001652130us-gaap:CommonStockMember2022-06-300001652130ntla:TwoThousandAndFifteenStockOptionAndIncentivePlanMember2023-01-012023-09-3000016521302022-03-012022-03-310001652130ntla:PreferredStockPurchaseAgreementMemberntla:JointVentureAvenCellMember2021-07-300001652130us-gaap:AdditionalPaidInCapitalMember2021-12-310001652130ntla:AtTheMarketOfferingsMember2023-03-310001652130us-gaap:AdditionalPaidInCapitalMember2022-06-300001652130ntla:HemophiliaCoCoAgreementsMemberntla:RegeneronPharmaceuticalsIncMember2023-07-012023-09-300001652130us-gaap:CommonStockMember2022-04-012022-06-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-3000016521302023-09-300001652130srt:MaximumMemberntla:TwoThousandNineteenSalesAgreementMember2019-08-012019-08-310001652130ntla:AvencellcocoMember2022-01-012022-09-300001652130ntla:TwoThousandTwentyTwoSalesAgreementMemberus-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-09-300001652130ntla:SparingVisionMember2022-07-012022-09-300001652130us-gaap:AdditionalPaidInCapitalMemberntla:AtTheMarketOfferingsMember2023-01-012023-03-310001652130ntla:RegeneronPharmaceuticalsIncMember2023-09-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-3100016521302023-04-012023-06-300001652130ntla:WinterStreetLeaseMember2023-01-012023-09-300001652130ntla:AtTheMarketOfferingsMember2022-12-310001652130ntla:FinancialInstitutionDebtSecuritiesMember2022-12-310001652130us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001652130ntla:SparingVisionMemberus-gaap:RelatedPartyMember2022-12-310001652130ntla:SparingVisionMember2023-09-300001652130us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001652130ntla:FinancialInstitutionDebtSecuritiesMember2023-09-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:AtTheMarketOfferingsMember2022-01-012022-09-300001652130ntla:AtTheMarketOfferingsMember2023-01-012023-09-300001652130ntla:ResearchMaterialsShippmetServicesMemberntla:OnkTherapeuticsMember2023-01-012023-09-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001652130us-gaap:CommonStockMember2023-04-012023-06-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001652130us-gaap:CommonStockMember2022-09-300001652130ntla:AvencellcocoMember2023-07-012023-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001652130us-gaap:IPOMember2023-01-012023-09-300001652130ntla:AtTheMarketOfferingsMemberus-gaap:CommonStockMember2023-01-012023-03-310001652130us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-09-3000016521302023-01-012023-09-300001652130ntla:SeriesA2PreferredStockMemberntla:SparingVisionMember2021-10-012021-10-310001652130us-gaap:CommonStockMember2021-12-310001652130ntla:ResearchMaterialsShippmetServicesMemberntla:OnkTherapeuticsMember2022-01-012022-09-3000016521302022-03-310001652130us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-03-012022-03-310001652130us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001652130us-gaap:CommonStockMember2022-01-012022-03-310001652130ntla:WinterStreetLeaseMember2022-02-282022-02-280001652130us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001652130ntla:WinterStreetLeaseMember2022-02-280001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2023-07-012023-09-300001652130us-gaap:RetainedEarningsMember2022-06-300001652130ntla:KyvernaTherapeuticsIncMember2023-09-300001652130us-gaap:CommonStockMember2022-12-310001652130ntla:PerformanceStockUnitsMemberntla:NonExecutiveEmployeesMember2022-03-012022-03-310001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2022-03-012022-03-310001652130ntla:ResearchMaterialsShippmetServicesMemberntla:OnkTherapeuticsMember2022-07-012022-09-300001652130us-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:CommonStockMember2023-09-300001652130ntla:MemorialDrive640Member2023-09-300001652130ntla:AvencellMember2023-01-012023-09-300001652130ntla:AvencellCoCoAgreementMemberntla:AvencellMember2022-01-012022-09-300001652130ntla:AtTheMarketOfferingsMemberus-gaap:CommonStockMember2022-07-012022-09-300001652130us-gaap:RetainedEarningsMember2022-09-300001652130us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001652130us-gaap:RetainedEarningsMember2021-12-310001652130ntla:SparingVisionMember2022-12-310001652130us-gaap:FairValueInputsLevel2Memberntla:FinancialInstitutionDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130ntla:KyvernaTherapeuticsIncMember2022-07-012022-09-300001652130us-gaap:FairValueInputsLevel2Memberntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130us-gaap:RelatedPartyMemberntla:KyvernaTherapeuticsIncMember2022-12-310001652130ntla:AtTheMarketOfferingsMember2022-07-012022-09-300001652130us-gaap:RetainedEarningsMember2023-06-300001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2022-07-012022-09-300001652130us-gaap:CommonStockMember2022-07-012022-09-300001652130us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001652130us-gaap:RelatedPartyMemberntla:OnkTherapeuticsMember2023-09-300001652130ntla:CoDevelopmentAndCoFundingAgreementMemberntla:AvencellMember2022-01-012022-12-310001652130us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-3000016521302022-07-012022-09-300001652130ntla:AtTheMarketOfferingsMemberus-gaap:CommonStockMember2022-01-012022-03-310001652130us-gaap:RestrictedStockUnitsRSUMember2023-03-012023-03-310001652130us-gaap:RelatedPartyMemberntla:OnkTherapeuticsMember2022-12-310001652130us-gaap:RetainedEarningsMember2023-04-012023-06-300001652130us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-09-300001652130srt:ExecutiveOfficerMemberntla:PerformanceStockUnitsMember2023-03-012023-03-310001652130ntla:HemophiliaCoCoAgreementsMemberntla:RegeneronPharmaceuticalsIncMember2022-07-012022-09-300001652130us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001652130us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001652130ntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2022-01-012022-09-300001652130us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:RewriteTherapeuticsDelawareCorporationMemberntla:PrespecifiedResearchMilestonesMember2022-02-022022-02-020001652130ntla:AvencellMember2023-09-300001652130us-gaap:RelatedPartyMemberntla:AvencellMember2022-12-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001652130us-gaap:RelatedPartyMember2022-12-310001652130us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2023-01-012023-09-300001652130ntla:RegeneronPharmaceuticalsIncMember2022-12-310001652130ntla:AtTheMarketOfferingsMemberus-gaap:CommonStockMember2023-07-012023-09-300001652130ntla:RegeneronPharmaceuticalsIncMemberus-gaap:RelatedPartyMember2023-09-300001652130us-gaap:CommonStockMember2023-06-300001652130us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001652130ntla:KyvernaTherapeuticsIncMember2022-12-310001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2022-09-3000016521302023-06-300001652130srt:MinimumMember2023-01-012023-09-300001652130srt:MinimumMember2023-09-300001652130us-gaap:CommonStockMember2022-03-310001652130us-gaap:RetainedEarningsMember2022-12-310001652130us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-3000016521302022-06-300001652130us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:SparingVisionMember2022-01-012022-09-300001652130us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001652130us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:HemophiliaCoCoAgreementsMemberntla:RegeneronPharmaceuticalsIncMember2023-01-012023-09-300001652130ntla:ResearchMaterialsShippmetServicesMemberntla:OnkTherapeuticsMember2023-07-012023-09-300001652130ntla:TwoThousandAndFifteenStockOptionAndIncentivePlanMember2023-09-300001652130us-gaap:FairValueInputsLevel2Memberntla:USTreasuryAndOtherGovernmentBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001652130us-gaap:AdditionalPaidInCapitalMemberntla:AtTheMarketOfferingsMember2022-01-012022-03-310001652130srt:MaximumMemberntla:TwoThousandAndSixteenEmployeeStockPurchasePlanMember2023-09-300001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2023-01-012023-09-3000016521302022-01-012022-09-300001652130us-gaap:AdditionalPaidInCapitalMember2022-09-300001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2022-01-012022-09-300001652130srt:MaximumMember2023-09-300001652130srt:MaximumMember2023-01-012023-09-300001652130ntla:AvencellcocoMember2022-07-012022-09-3000016521302022-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001652130srt:MaximumMemberntla:TwoThousandTwentyTwoSalesAgreementMember2022-03-012022-03-310001652130ntla:AtTheMarketOfferingsMember2023-07-012023-09-300001652130ntla:HemophiliaCoCoAgreementsMemberntla:RegeneronPharmaceuticalsIncMember2022-01-012022-09-300001652130ntla:KyvernaTherapeuticsIncMember2023-07-012023-09-3000016521302023-03-012023-03-310001652130us-gaap:CommonStockMember2023-07-012023-09-300001652130us-gaap:RelatedPartyMember2023-09-300001652130us-gaap:RetainedEarningsMember2023-01-012023-03-310001652130us-gaap:AdditionalPaidInCapitalMember2023-09-300001652130ntla:SparingVisionMember2023-07-012023-09-300001652130us-gaap:RetainedEarningsMember2022-07-012022-09-300001652130ntla:USTreasuryAndOtherGovernmentBackedSecuritiesMember2023-09-300001652130ntla:KyvernaTherapeuticsIncMember2023-03-012023-03-310001652130us-gaap:SeriesBPreferredStockMemberntla:KyvernaTherapeuticsIncMember2023-01-012023-09-300001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001652130us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001652130ntla:MemorialDrive640Member2023-01-012023-09-300001652130ntla:USTreasuryAndOtherGovernmentBackedSecuritiesMember2022-12-310001652130us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001652130ntla:AtTheMarketOfferingsMember2023-01-012023-03-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001652130ntla:TwoThousandNineteenSalesAgreementMember2019-08-012019-08-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001652130ntla:TwoThousandTwentyTwoSalesAgreementMember2023-09-012023-09-300001652130us-gaap:AdditionalPaidInCapitalMemberntla:AtTheMarketOfferingsMember2023-07-012023-09-300001652130ntla:RegeneronArrangementMemberntla:RegeneronPharmaceuticalsIncMember2023-10-310001652130us-gaap:RelatedPartyMemberntla:KyvernaTherapeuticsIncMember2023-09-300001652130ntla:SparingVisionMember2023-01-012023-09-300001652130ntla:FinancialInstitutionDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-3000016521302021-12-310001652130ntla:SparingVisionMemberus-gaap:RelatedPartyMember2023-09-300001652130us-gaap:GeneralAndAdministrativeExpenseMemberntla:TwoThousandNineteenSalesAgreementMember2022-01-012022-03-310001652130us-gaap:RetainedEarningsMember2022-03-310001652130us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001652130ntla:RewriteTherapeuticsDelawareCorporationMember2023-01-012023-01-310001652130us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300001652130us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001652130ntla:AlbanyLeaseMember2023-01-012023-06-30iso4217:USDxbrli:sharesxbrli:pureutr:sqftxbrli:sharesntla:Productntla:USD_per_sqftntla:Targetcapntla:Trancheiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

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: 001-37766

 

INTELLIA THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

36-4785571

(State or Other Jurisdiction of

(I.R.S. Employer

Incorporation or Organization)

Identification No.)

 

 

40 Erie Street, Suite 130, Cambridge, Massachusetts

02139

(Address of Principal Executive Offices)

(Zip Code)

857-285-6200

(Registrant’s Telephone Number, Including Area Code)

 

Securities Registered Pursuant to Section 12(b) of the Act:

 

Title of each Class

Trade Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

NTLA

The Nasdaq Global 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 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 Act). Yes ☐ No

The number of shares outstanding of the registrant’s common stock as of November 3, 2023: 89,554,891 shares.

 

 


PART I - FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements (unaudited)

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022

3

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2023 and 2022

4

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022

5

 

 

Notes to Condensed Consolidated Financial Statements

6

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

32

 

 

Item 4. Controls and Procedures.

32

 

 

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

78

 

 

Item 5. Other Information

78

 

 

Item 6. Exhibits

79

 

 

Signatures

80

 

2


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

INTELLIA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets (unaudited)

(Amounts in thousands except share and per share data)

 

 

September 30,
2023

 

 

December 31,
2022

 

ASSETS

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

168,027

 

 

$

523,506

 

Marketable securities

 

 

686,761

 

 

 

669,116

 

Accounts receivable ($0 and $0.3 million, respectively, from related party)

 

 

6,491

 

 

 

3,768

 

Prepaid expenses and other current assets

 

 

32,214

 

 

 

20,407

 

Total current assets

 

 

893,493

 

 

 

1,216,797

 

Marketable securities - noncurrent

 

 

137,752

 

 

 

69,338

 

Property and equipment, net

 

 

33,800

 

 

 

27,921

 

Operating lease right-of-use assets

 

 

118,775

 

 

 

133,076

 

Equity method investment

 

 

17,166

 

 

 

32,455

 

Investments and other assets

 

 

42,363

 

 

 

40,527

 

Total Assets

 

$

1,243,349

 

 

$

1,520,114

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

3,553

 

 

$

5,154

 

Accrued expenses ($1.0 million and $1.6 million, respectively, from related party)

 

 

57,979

 

 

 

60,876

 

Current portion of operating lease liability

 

 

17,074

 

 

 

16,685

 

Current portion of deferred revenue ($0 and $19.9 million, respectively,
    from related party)

 

 

13,347

 

 

 

43,839

 

Total current liabilities

 

 

91,953

 

 

 

126,554

 

Deferred revenue, net of current portion

 

 

12,719

 

 

 

19,932

 

Long-term operating lease liability

 

 

101,263

 

 

 

114,018

 

Contingent consideration liability

 

 

-

 

 

 

24,026

 

Total liabilities

 

 

205,935

 

 

 

284,530

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

Common stock, $0.0001 par value; 240,000,000 and 120,000,000 shares authorized at
   September 30, 2023 and December 31, 2022, respectively;
89,097,821 and 87,103,007 shares
   issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

 

9

 

 

 

9

 

Additional paid-in capital

 

 

2,567,195

 

 

 

2,420,223

 

Accumulated other comprehensive loss

 

 

(3,572

)

 

 

(7,461

)

Accumulated deficit

 

 

(1,526,218

)

 

 

(1,177,187

)

Total stockholders’ equity

 

 

1,037,414

 

 

 

1,235,584

 

Total Liabilities and Stockholders’ Equity

 

$

1,243,349

 

 

$

1,520,114

 

 

See notes to condensed consolidated financial statements.

3


INTELLIA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)

(Amounts in thousands except per share data)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Collaboration revenue (1)

 

$

11,992

 

 

$

13,266

 

 

$

38,192

 

 

$

38,548

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

113,696

 

 

 

96,651

 

 

 

326,088

 

 

 

319,945

 

General and administrative

 

 

29,403

 

 

 

22,145

 

 

 

87,503

 

 

 

66,680

 

Total operating expenses

 

 

143,099

 

 

 

118,796

 

 

 

413,591

 

 

 

386,625

 

Operating loss

 

 

(131,107

)

 

 

(105,530

)

 

 

(375,399

)

 

 

(348,077

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

12,740

 

 

 

1,945

 

 

 

37,373

 

 

 

3,188

 

Loss from equity method investment

 

 

(3,857

)

 

 

(1,834

)

 

 

(10,905

)

 

 

(7,831

)

Change in fair value of contingent consideration

 

 

-

 

 

 

(7,810

)

 

 

(100

)

 

 

(8,059

)

Total other income (expense), net

 

 

8,883

 

 

 

(7,699

)

 

 

26,368

 

 

 

(12,702

)

Net loss

 

$

(122,224

)

 

$

(113,229

)

 

$

(349,031

)

 

$

(360,779

)

Net loss per share, basic and diluted

 

$

(1.38

)

 

$

(1.49

)

 

$

(3.96

)

 

$

(4.78

)

Weighted average shares outstanding, basic and
   diluted

 

 

88,645

 

 

 

76,047

 

 

 

88,204

 

 

 

75,543

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities

 

 

142

 

 

 

991

 

 

 

1,649

 

 

 

(5,069

)

Other comprehensive gain (loss) from
   equity method investment

 

 

154

 

 

 

(805

)

 

 

2,240

 

 

 

(1,667

)

Comprehensive loss

 

$

(121,928

)

 

$

(113,043

)

 

$

(345,142

)

 

$

(367,515

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Including the following revenue from related party
  (see Notes 7 and 8):

 

$

1,946

 

 

$

4,414

 

 

$

12,673

 

 

$

15,612

 

 

See notes to condensed consolidated financial statements.

4


INTELLIA THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows (unaudited)

(Amounts in thousands)

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(349,031

)

$

(360,779

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

6,510

 

 

 

5,541

 

Loss (gain) on disposal of property and equipment

 

 

5

 

 

 

(162

)

Equity-based compensation

 

 

99,007

 

 

 

66,774

 

(Accretion) amortization of investment discounts and premiums

 

 

(19,590

)

 

 

5,252

 

Loss from equity method investment

 

 

10,905

 

 

 

7,831

 

Deferral of equity method investment intra-entity profit on sales

 

 

6,624

 

 

 

8,530

 

Change in fair value of contingent consideration

 

 

100

 

 

 

8,059

 

In-process research and development expense

 

 

-

 

 

 

55,990

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(2,723

)

 

 

(1,992

)

Prepaid expenses and other current assets

 

 

(11,806

)

 

 

(228

)

Operating lease right-of-use assets

 

 

14,148

 

 

 

8,516

 

Other assets

 

 

(836

)

 

 

(982

)

Accounts payable

 

 

(1,419

)

 

 

(5,334

)

Accrued expenses

 

 

(3,008

)

 

 

12,852

 

Deferred revenue

 

 

(37,705

)

 

 

(46,739

)

Operating lease liabilities

 

 

(12,213

)

 

 

(6,547

)

Net cash used in operating activities

 

 

(301,032

)

 

 

(243,418

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(12,465

)

 

 

(9,646

)

Purchases of marketable securities

 

 

(754,689

)

 

 

(192,598

)

Maturities of marketable securities

 

 

689,868

 

 

 

437,387

 

Proceeds from sale of property and equipment

 

 

-

 

 

 

150

 

Acquired in-process research and development, net of cash acquired of $287

 

 

-

 

 

 

(44,832

)

Net cash (used in) provided by investing activities

 

 

(77,286

)

 

 

190,461

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Net proceeds from issuance of common stock through at-the-market offerings

 

 

16,184

 

 

 

62,140

 

Proceeds from options exercised

 

 

5,604

 

 

 

13,984

 

Issuance of shares through employee stock purchase plan

 

 

2,051

 

 

 

1,068

 

Net cash provided by financing activities

 

 

23,839

 

 

 

77,192

 

Net (decrease) increase in cash, cash equivalents and restricted cash equivalents

 

 

(354,479

)

 

 

24,235

 

Cash, cash equivalents and restricted cash equivalents, beginning of period

 

 

535,463

 

 

 

125,486

 

Cash, cash equivalents and restricted cash equivalents, end of period

 

$

180,984

 

 

$

149,721

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash
   equivalents to condensed consolidated balance sheet:

 

 

 

 

 

 

Cash and cash equivalents

 

$

168,027

 

 

$

141,194

 

Restricted cash equivalents, included in investments and other assets

 

 

12,957

 

 

 

8,527

 

Total cash, cash equivalents and restricted cash equivalents

 

$

180,984

 

 

$

149,721

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Purchases of property and equipment unpaid at period end

 

$

1,552

 

 

$

2,180

 

Shares issued for Rewrite contingent consideration

 

 

24,126

 

 

 

-

 

Right-of-use asset acquired under operating lease

 

 

-

 

 

 

30,663

 

Contingent consideration liability assumed in asset acquisition

 

 

-

 

 

 

10,541

 

Proceeds from at-the-market offerings unpaid at period end

 

 

-

 

 

 

8,255

 

Non-cash trade-in of property and equipment

 

 

-

 

 

 

200

 

 

See notes to condensed consolidated financial statements.

5


INTELLIA THERAPEUTICS, INC.

Notes to Condensed Consolidated Financial Statements (unaudited)

1. Overview and Basis of Presentation

Intellia Therapeutics, Inc. (“Intellia” or the “Company”) is a leading clinical-stage genome editing company, focused on developing potentially curative therapeutics using CRISPR/Cas9-based technologies. CRISPR/Cas9, an acronym for Clustered, Regularly Interspaced Short Palindromic Repeats (“CRISPR”)/CRISPR associated 9 (“Cas9”), is a technology for genome editing, the process of altering selected sequences of genomic deoxyribonucleic acid (“DNA”). To fully realize the transformative potential of CRISPR/Cas9-based technologies, Intellia is building a full-spectrum genome editing company, by leveraging its modular platform, to advance in vivo and ex vivo therapies for diseases with high unmet need by pursuing two primary approaches. For in vivo applications to address genetic diseases, the Company deploys CRISPR/Cas9 as the therapy that targets cells within the body. In parallel, the Company is developing ex vivo applications to address immuno-oncology and autoimmune diseases, where the Company uses CRISPR/Cas9 as the tool to create the engineered cell therapy. The Company’s deep scientific, technical and clinical development experience, along with its robust intellectual property (“IP”) portfolio, have enabled it to unlock broad therapeutic applications of CRISPR/Cas9 and related technologies to create new classes of genetic medicine.

The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2022.

The unaudited condensed consolidated financial statements include the accounts of Intellia Therapeutics, Inc. and its wholly- owned subsidiary, Intellia Securities Corp. All intercompany balances and transactions have been eliminated in consolidation. Comprehensive loss is comprised of net loss, unrealized gain/loss on marketable securities and other comprehensive gain/loss from equity method investment.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates in these condensed consolidated financial statements have been made in connection with the calculation of revenues, research and development expenses, valuation of equity and fair value method investments, contingent consideration and equity-based compensation expense. The Company bases its estimates on historical experience and various other assumptions that management believes to be reasonable under the circumstances at the time such estimates are made. Actual results could differ from those estimates. The Company periodically reviews its estimates in light of changes in circumstances, facts and experience.

The effects of material revisions in estimates, if any, would be reflected in the condensed consolidated financial statements prospectively from the date of the change in estimate.

In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period.

Liquidity

Since its inception through September 30, 2023, the Company has raised an aggregate of $2,424.1 million to fund its operations through its initial public offering (“IPO”) and concurrent private placements, follow-on public offerings, at-the-market offerings and the sale of convertible preferred stock, as well as through its collaboration agreements. The Company expects that its cash, cash equivalents and marketable securities as of September 30, 2023 will enable the Company to fund its ongoing operating expenses and capital expenditure requirements for at least the twelve-month period following the issuance of these condensed consolidated financial statements.

6


2. Summary of Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies” to the consolidated financial statements included in the Annual Report for the year ended December 31, 2022. There have been no material changes to these policies during the nine months ended September 30, 2023.

3. Marketable Securities

The following table summarizes the Company’s available-for-sale marketable securities as of September 30, 2023 and December 31, 2022 at net book value:

 

 

September 30, 2023

 

 

 

Amortized
Cost

 

 

Gross Unrealized
Gains

 

 

Gross Unrealized
Losses

 

 

Estimated Fair
Value

 

 

 

(In thousands)

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

$

330,875

 

 

$

3

 

 

$

(935

)

 

$

329,943

 

Financial institution debt securities

 

 

319,226

 

 

 

40

 

 

 

(688

)

 

 

318,578

 

Corporate debt securities

 

 

115,344

 

 

 

4

 

 

 

(306

)

 

 

115,042

 

Other asset-backed securities

 

 

61,188

 

 

 

-

 

 

 

(238

)

 

 

60,950

 

Total

 

$

826,633

 

 

$

47

 

 

$

(2,167

)

 

$

824,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

Amortized
Cost

 

 

Gross Unrealized
Gains

 

 

Gross Unrealized
Losses

 

 

Estimated Fair
Value

 

 

 

(In thousands)

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

$

244,562

 

 

$

62

 

 

$

(1,938

)

 

$

242,686

 

Financial institution debt securities

 

 

380,891

 

 

 

-

 

 

 

(1,030

)

 

 

379,861

 

Corporate debt securities

 

 

102,059

 

 

 

-

 

 

 

(509

)

 

 

101,550

 

Other asset-backed securities

 

 

14,703

 

 

 

-

 

 

 

(346

)

 

 

14,357

 

Total

 

$

742,215

 

 

$

62

 

 

$

(3,823

)

 

$

738,454

 

The amortized cost of available-for-sale securities is adjusted for amortization of premiums and accretion of discounts to maturity. At September 30, 2023 and December 31, 2022, the balance in the Company’s accumulated other comprehensive loss was composed of activity related to the Company’s available-for-sale marketable securities and equity method investment. There were no material realized gains or losses in the nine months ended September 30, 2023 or for the year ended December 31, 2022; therefore, the Company did not reclassify any amounts out of accumulated other comprehensive loss during this period. The Company generally does not intend to sell any investments prior to recovery of their amortized cost basis for any investment in an unrealized loss position. As such, the Company has classified these losses as temporary in nature.

The Company’s available-for-sale securities that are classified as short-term marketable securities in the condensed consolidated balance sheet mature within one year or less as of the balance sheet date. Available-for-sale securities that are classified as noncurrent in the condensed consolidated balance sheet are those that mature after one year but within five years from the balance sheet date and that the Company does not intend to dispose of within the next twelve months. At September 30, 2023 and December 31, 2022, the Company did not hold any investments that matured beyond five years of the balance sheet date.

4. Fair Value Measurements

The Company classifies fair value-based measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1, quoted market prices (unadjusted) in active markets for identical assets or liabilities; Level 2, observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data; and Level 3, unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

7


As of September 30, 2023 and December 31, 2022, the Company’s financial assets recognized at fair value on a recurring basis consisted of the following:

 

 

Fair Value as of September 30, 2023

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents and restricted cash equivalents

 

$

139,880

 

 

$

139,880

 

 

$

-

 

 

$

-

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

 

329,943

 

 

 

77,781

 

 

 

252,162

 

 

 

-

 

Financial institution debt securities

 

 

318,578

 

 

 

-

 

 

 

318,578

 

 

 

-

 

Corporate debt securities

 

 

115,042

 

 

 

-

 

 

 

115,042

 

 

 

-

 

Other asset-backed securities

 

 

60,950

 

 

 

-

 

 

 

60,950

 

 

 

-

 

Total marketable securities

 

 

824,513

 

 

 

77,781

 

 

 

746,732

 

 

 

-

 

Total Assets

 

$

964,393

 

 

$

217,661

 

 

$

746,732

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value as of December 31, 2022

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents and restricted cash equivalents

 

$

534,581

 

 

$

534,581

 

 

$

-

 

 

$

-

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other government-backed securities

 

 

242,686

 

 

 

172,939

 

 

 

69,747

 

 

 

-

 

Financial institution debt securities

 

 

379,861

 

 

 

-

 

 

 

379,861

 

 

 

-

 

Corporate debt securities

 

 

101,550

 

 

 

-

 

 

 

101,550

 

 

 

-

 

Other asset-backed securities

 

 

14,357

 

 

 

-

 

 

 

14,357

 

 

 

-

 

Total marketable securities

 

 

738,454

 

 

 

172,939

 

 

 

565,515

 

 

 

-

 

Total Assets

 

$

1,273,035

 

 

$

707,520

 

 

$

565,515

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain of the Company’s financial assets, including cash equivalents, restricted cash equivalents and marketable securities, have been initially valued at the transaction price, and subsequently revalued at the end of each reporting period, utilizing third party pricing services or other observable market data. The pricing services utilize industry standard valuation models and observable market inputs to determine value.

Other financial instruments, including accounts receivable, accounts payable and accrued expense, are carried at cost, which approximates fair value due to the short duration and term to maturity.

As discussed further in Note 9, under the Rewrite Merger Agreement, the Rewrite Holders received a $25.0 million research milestone payment in February of 2023, paid in a combination of $0.9 million in cash and the remainder in the Company’s common stock. The milestone payable in the Company’s common stock resulted in liability classification under ASC 480, Distinguishing Liabilities from Equity (“ASC 480”). This contingent consideration liability was carried at fair value which was estimated by applying a probability-based model, which utilized inputs based on timing of achievement that were unobservable in the market. The contingent consideration liability was classified within Level 3 of the fair value hierarchy until it was settled in February of 2023.

 

8


The following table reconciles the change in fair value of the contingent consideration liability based on the level 3 inputs listed below (in thousands):

 

For the Nine Months
Ended September 30, 2023

 

Balance at December 31, 2022

$

24,026

 

Change in fair value

 

100

 

Payment of contingent consideration

 

(24,126

)

Balance at September 30, 2023

$

-

 

 

 

December 31, 2022

Discount rate

10.1%

Probability of achievement

100%

Projected year of achievement

2023

 

5. Accrued Expenses

Accrued expenses consisted of the following:

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Accrued research and development

 

$

24,241

 

 

$

32,684

 

Employee compensation and benefits

 

 

21,006

 

 

 

21,778

 

Accrued legal and professional expenses

 

 

1,649

 

 

 

1,457

 

Accrued other

 

 

11,083

 

 

 

4,957

 

Total accrued expenses

 

$

57,979

 

 

$

60,876

 

 

6. Commitments and Contingencies

Litigation

There have been no material changes to any outstanding litigation, nor is the Company a party to any new litigation, since December 31, 2022. For further information please see the notes to the consolidated financial statements included in the Company’s Annual Report for the year ended December 31, 2022.

License Agreements

The Company is party to license agreements, which may include contingent payments. These payments will become payable if and when certain development, regulatory and commercial milestones are achieved. As of September 30, 2023, the satisfaction and timing of the contingent payments is uncertain and not reasonably estimable.

7. Collaborations and Other Arrangements

To accelerate the development and commercialization of CRISPR/Cas9-based products in multiple therapeutic areas, the Company has formed, and intends to seek other opportunities to form, strategic alliances with collaborators who can augment its leadership in CRISPR/Cas9 therapeutic development. As of September 30, 2023, the Company’s accounts receivable were related to its collaborations with Regeneron Pharmaceuticals, Inc. (“Regeneron”), SparingVision SAS (“SparingVision”), Kyverna Therapeutics, Inc. (“Kyverna”), AvenCell Therapeutics, Inc. (“AvenCell”) and ONK Therapeutics, Ltd. (“ONK”), and the Company’s contract liabilities were related to its collaborations with Regeneron and SparingVision. As of December 31, 2022, the Company’s accounts receivable were related to its collaborations with Regeneron, AvenCell, SparingVision and ONK, and the Company’s contract liabilities were related to its collaborations with Regeneron, AvenCell, SparingVision and Kyverna.

9


The following table presents changes in the Company’s accounts receivable and contract liabilities during the nine months ended September 30, 2023 and 2022 (in thousands):

 

 

Balance at
Beginning of
Period

 

 

Additions

 

 

Deductions

 

 

Balance at End
of Period

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

3,768

 

 

$

15,287

 

 

$

(12,564

)

 

$

6,491

 

Contract liabilities - deferred revenue

 

$

63,771

 

 

$

-

 

 

$

(37,705

)

 

$

26,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at
Beginning of
Period

 

 

Additions

 

 

Deductions

 

 

Balance at End
of Period

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

2,031

 

 

$

8,678