0000950170-22-008984.txt : 20220510 0000950170-22-008984.hdr.sgml : 20220510 20220510161706 ACCESSION NUMBER: 0000950170-22-008984 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20220331 FILED AS OF DATE: 20220510 DATE AS OF CHANGE: 20220510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Janux Therapeutics, Inc. CENTRAL INDEX KEY: 0001817713 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 822289112 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-40475 FILM NUMBER: 22909868 BUSINESS ADDRESS: STREET 1: 11099 TORREY PINES PARK ROAD CITY: SAN DIEGO STATE: CA ZIP: 92037 BUSINESS PHONE: 858-750-4700 MAIL ADDRESS: STREET 1: 11099 TORREY PINES PARK ROAD CITY: SAN DIEGO STATE: CA ZIP: 92037 10-Q 1 janx-20220331.htm 10-Q 10-Q
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Table of Contents

 

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

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: 001-40475

 

Janux Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

82-2289112

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

11099 N. Torrey Pines Road, Suite 290, La Jolla, California

92037

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (858) 750-4700

 

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, $0.001 par value per share

 

JANX

 

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 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 6, 2022, the registrant had 41,629,367 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


Table of Contents

JANUX THERAPEUTICS, INC.

QUARTERLY REPORT on FORM 10-Q

 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements:

1

 

Condensed Balance Sheets

1

 

Unaudited Condensed Statements of Operations and Comprehensive Loss

2

 

Unaudited Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

3

 

Unaudited Condensed Statements of Cash Flows

4

 

Notes to Unaudited Condensed Financial Statements

5

Item 2.

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

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

24

Item 4.

Controls and Procedures

24

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

25

Item 1A.

Risk Factors

25

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

73

Item 6.

Exhibits

74

SIGNATURES

75

 

 

 

i


Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Janux Therapeutics, Inc.

Condensed Balance Sheets

(in thousands, except share and par value data)

 

 

 

March 31,
2022

 

 

December 31,
2021

 

Assets

 

(unaudited)

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,129

 

 

$

35,582

 

Short-term investments

 

 

306,071

 

 

 

339,383

 

Prepaid expenses and other current assets (includes related party amounts of $23 and $0, respectively)

 

 

3,454

 

 

 

2,054

 

Total current assets

 

 

364,654

 

 

 

377,019

 

Restricted cash

 

 

816

 

 

 

816

 

Property and equipment, net

 

 

2,660

 

 

 

1,412

 

Operating lease right-of-use assets

 

 

130

 

 

 

185

 

Other long-term assets

 

 

337

 

 

 

392

 

Total assets

 

$

368,597

 

 

$

379,824

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,939

 

 

$

2,458

 

Accrued liabilities (includes related party amounts of $0 and $32, respectively)

 

 

5,074

 

 

 

3,779

 

Current portion of deferred revenue

 

 

4,649

 

 

 

5,163

 

Unvested stock liabilities

 

 

700

 

 

 

1,203

 

Current portion of operating lease liabilities

 

 

153

 

 

 

194

 

Total current liabilities

 

 

12,515

 

 

 

12,797

 

Deferred revenue, net of current portion

 

 

 

 

 

700

 

Total liabilities

 

 

12,515

 

 

 

13,497

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value; authorized shares – 10,000,000 at
   March 31, 2022 and December 31, 2021, respectively;
no shares issued
   and outstanding at March 31, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.001 par value; authorized shares – 200,000,000 at
   March 31, 2022 and December 31, 2021, respectively; issued shares –
41,629,367
   and
41,622,962 at March 31, 2022 and December 31, 2021, respectively; outstanding
   shares –
41,393,660 and 41,243,137 at March 31, 2022 and December 31, 2021,
   respectively

 

 

41

 

 

 

41

 

Additional paid-in capital

 

 

418,429

 

 

 

413,967

 

Accumulated other comprehensive loss

 

 

(1,567

)

 

 

(270

)

Accumulated deficit

 

 

(60,821

)

 

 

(47,411

)

Total stockholders’ equity

 

 

356,082

 

 

 

366,327

 

Total liabilities and stockholders’ equity

 

$

368,597

 

 

$

379,824

 

See accompanying notes.

1


Table of Contents

Janux Therapeutics, Inc.

Unaudited Condensed Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Collaboration revenue

 

$

1,589

 

 

$

380

 

Operating expenses:

 

 

 

 

 

 

Research and development (includes related party
   amounts of $
208 and $486, respectively)

 

 

10,184

 

 

 

1,925

 

General and administrative (includes related party
   amounts of $
42 and $104, respectively)

 

 

4,947

 

 

 

739

 

Total operating expenses

 

 

15,131

 

 

 

2,664

 

Loss from operations

 

 

(13,542

)

 

 

(2,284

)

Other income:

 

 

 

 

 

 

Interest income

 

 

132

 

 

 

 

Total other income

 

 

132

 

 

 

 

Net loss

 

$

(13,410

)

 

$

(2,284

)

Other comprehensive loss:

 

 

 

 

 

 

Unrealized loss on available-for-sale securities, net

 

 

(1,567

)

 

 

 

Comprehensive loss

 

$

(14,977

)

 

$

(2,284

)

Net loss per common share, basic and diluted

 

$

(0.32

)

 

$

(2.06

)

Weighted-average shares of common stock outstanding,
   basic and diluted

 

 

41,315,482

 

 

 

1,111,178

 

 

See accompanying notes.

 

 

 

2


Table of Contents

Janux Therapeutics, Inc.

Unaudited Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

For the Three Months Ended March 31, 2022 and 2021

(in thousands, except share data)

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated
Other
Comprehensive
Income

 

 

Accumulated

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Loss)

 

 

Deficit

 

 

(Deficit)

 

Balance at December 31, 2021

 

 

41,243,137

 

 

$

41

 

 

$

413,967

 

 

$

(270

)

 

$

(47,411

)

 

$

366,327

 

Exercise of common stock options

 

 

6,405

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Vesting of restricted shares

 

 

144,118

 

 

 

 

 

 

503

 

 

 

 

 

 

 

 

 

503

 

Stock-based compensation

 

 

 

 

 

 

 

 

3,958

 

 

 

 

 

 

 

 

 

3,958

 

Unrealized gain (loss) on investment securities

 

 

 

 

 

 

 

 

 

 

 

(1,297

)

 

 

 

 

 

(1,297

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,410

)

 

 

(13,410

)

Balance at March 31, 2022

 

 

41,393,660

 

 

$

41

 

 

$

418,429

 

 

$

(1,567

)

 

$

(60,821

)

 

$

356,082

 

 

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders’
Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance at December 31, 2020

 

 

6,838,829

 

 

$

21,624

 

 

 

 

1,046,599

 

 

$

1

 

 

$

100

 

 

$

(14,739

)

 

$

(14,638

)

Issuance of Series A convertible preferred stock,
   net of $
278 of issuance costs

 

 

5,894,740

 

 

 

55,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

113,418

 

 

 

 

 

 

20

 

 

 

 

 

 

20

 

Vesting of restricted shares

 

 

 

 

 

 

 

 

 

66,960

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

123

 

 

 

 

 

 

123

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,284

)

 

 

(2,284

)

Balance at March 31, 2021

 

 

12,733,569

 

 

$

77,346

 

 

 

 

1,226,977

 

 

$

1

 

 

$

251

 

 

$

(17,023

)

 

$

(16,771

)

See accompanying notes.

3


Table of Contents

Janux Therapeutics, Inc.

Unaudited Condensed Statements of Cash Flows

(in thousands)

 

 

 

Three Months Ended
March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(13,410

)

 

$

(2,284

)

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

 

 

 

 

 

 

Depreciation

 

 

81

 

 

 

9

 

Stock-based compensation

 

 

3,958

 

 

 

123

 

Amortization (accretion) of premiums/discounts on investments, net

 

 

(24

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

7,625

 

Prepaid expenses and other current assets (includes related party amounts of $23 and $(50), respectively)

 

 

(1,400

)

 

 

(13

)

Other long-term assets

 

 

55

 

 

 

 

Accounts payable

 

 

(740

)

 

 

347

 

Accrued expenses (includes related party amounts of $(32) and $(544), respectively)

 

 

1,158

 

 

 

(240

)

Deferred revenue

 

 

(1,214

)

 

 

(4

)

Operating lease right-of-use assets and liabilities, net

 

 

14

 

 

 

 

Net cash (used in) provided by operating activities

 

 

(11,522

)

 

 

5,563

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(971

)

 

 

(153

)

Purchases of short-term investments

 

 

(45,061

)

 

 

 

Maturities of short-term investments

 

 

77,100

 

 

 

 

Net cash provided by (used in) investing activities

 

 

31,068

 

 

 

(153

)

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from issuance of Series A convertible preferred stock, net of issuance costs

 

 

 

 

 

56,000

 

Proceeds from exercise of vested and unvested common stock options and employee stock purchase plan

 

 

1

 

 

 

1,646

 

Payment of initial public offering costs

 

 

 

 

 

(100

)

Net cash provided by financing activities

 

 

1

 

 

 

57,546

 

Net increase in cash, cash equivalents and restricted cash

 

 

19,547

 

 

 

62,956

 

Cash, cash equivalents and restricted cash – beginning of year

 

 

36,398

 

 

 

7,813

 

Cash, cash equivalents and restricted cash – end of year

 

$

55,945

 

 

$

70,769

 

 

 

 

 

 

 

 

Supplemental disclosure of noncash investing and financing activities

 

 

 

 

 

 

Unpaid fixed asset additions

 

$

396

 

 

$

4

 

Vesting of restricted common stock

 

$

503

 

 

$

8

 

Unpaid equity issuance costs

 

$

 

 

$

278

 

Unrealized loss on short-term investments

 

$

(1,297

)

 

$

 

 

See accompanying notes.

4


Table of Contents

Janux Therapeutics, Inc.

Notes to Unaudited Condensed Financial Statements

 

1. Organization and Summary of Significant Accounting Policies

Organization

Janux Therapeutics, Inc. (the “Company”) was incorporated in the State of Delaware in June 2017 and is based in San Diego, California. The Company is a preclinical stage biopharmaceutical company developing a broad pipeline of novel immunotherapies by applying its proprietary technology to its Tumor Activated T Cell Engager ("TRACTr") and Tumor Activated Immunomodulator ("TRACIr") platforms to better treat patients suffering from cancer.

Forward Stock Split

In June 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s certificate of incorporation to effect a forward split of shares of the Company’s common stock on a one-for-1.281 basis, which was effected on June 4, 2021 (the “Forward Stock Split”). The number of authorized shares and the par values of the common stock and convertible preferred stock were not adjusted as a result of the Forward Stock Split. The accompanying financial statements and notes to the financial statements give retroactive effect to the Forward Stock Split for all periods presented.

Liquidity and Capital Resources

From its inception through March 31, 2022, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital and developing its TRACTr and TRACIr therapeutic platforms and preclinical assets. The Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $60.8 million as of March 31, 2022. The Company has a limited operating history, has not generated any product revenue, and the sales and income potential of its business is unproven. To date the Company has funded its operations primarily with the net proceeds from the issuance of convertible promissory notes, the issuance of convertible preferred stock, the issuance of common stock in its initial public offering (“IPO”), the exercise of common stock options and amounts received under a collaboration agreement. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to continue its research and development activities, initiate and complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. The Company plans to continue to fund its losses from operations and capital funding needs through public or private equity or debt financings or other sources. The COVID-19 pandemic continues to rapidly evolve and has already resulted in a significant disruption of global capital markets. The impact of the COVID-19 pandemic on capital markets may affect the availability, amount and type of financing available to us in the future. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. Management believes the Company has sufficient capital to fund its operation for at least 12 months from the issuance date of these unaudited condensed financial statements.

Unaudited Interim Financial Information

The unaudited condensed financial statements as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial statements. These unaudited condensed financial statements have been prepared on the same basis as the Company’s audited financial statements and include all adjustments, consisting of only normal recurring accruals, which in the opinion of management are necessary to present fairly the Company’s financial position as of the interim date and results of operations for the interim periods presented. Interim results are not necessarily indicative of results for a full year or future periods. The condensed balance sheet data as of December 31, 2021 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021.

Use of Estimates

The Company’s financial statements are prepared in accordance with GAAP. The preparation of the Company’s financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. The most

5


Table of Contents

Janux Therapeutics, Inc.

Notes to Unaudited Condensed Financial Statements–(Continued)

 

significant estimates in the Company’s financial statements relate to estimates to complete the performance obligations and the estimated transaction price for collaboration revenue, accruals for research and development expenses, stock-based compensation and fair value measurements. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenues and expenses that are not readily apparent from other sources. Although the impact of the COVID-19 pandemic to the Company’s business and operating results presents additional uncertainty, the Company continues to use the best information available to update its accounting estimates. Actual results may differ materially and adversely from these estimates.

Fair Value Measurements

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to the short-term nature of those instruments. The fair value of assets classified within Level 1 is based on quoted prices in active markets as provided by the Company’s investment managers. The fair value of short-term investments classified within Level 2 is based on standard observable inputs, including reported trades, broker/dealer quotes, and bids and/or offers. The Company validates the quoted market prices provided by its investment managers by comparing the investment managers’ assessment of the fair values of the Company’s investment portfolio balance against the fair values of the Company’s investment portfolio balance obtained from an independent source. The Company has no financial liabilities recorded at fair value on a recurring basis. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented.

The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands):

 

 

 

 

 

 

Fair Value Measurements at
Reporting Date Using

 

 

 

Total

 

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

As of March 31, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

25,189

 

 

$

25,189

 

 

$

 

 

$

 

Commercial paper

 

 

9,982

 

 

 

 

 

 

9,982

 

 

 

 

Total cash equivalents

 

 

35,171

 

 

 

25,189

 

 

 

9,982

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

123,357

 

 

 

123,357

 

 

 

 

 

 

 

Commercial paper

 

 

182,714

 

 

 

 

 

 

182,714

 

 

 

 

Total short-term investments

 

 

306,071

 

 

 

123,357

 

 

 

182,714

 

 

 

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

 

816

 

 

 

816

 

 

 

 

 

 

 

Total restricted cash

 

 

816

 

 

 

816

 

 

 

 

 

 

 

Total assets measured at fair value on a recurring basis

 

$

342,058

 

 

$

149,362

 

 

$

192,696

 

 

$

 

 

6


Table of Contents

Janux Therapeutics, Inc.

Notes to Unaudited Condensed Financial Statements–(Continued)

 

 

 

 

 

 

 

Fair Value Measurements at
Reporting Date Using

 

 

 

Total

 

 

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

As of December 31, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

15,020

 

 

$

15,020

 

 

$

 

 

$

 

Commercial paper

 

 

9,998

 

 

 

 

 

 

9,998

 

 

 

 

Total cash equivalents

 

 

25,018

 

 

 

15,020

 

 

 

9,998

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

99,247

 

 

 

99,247

 

 

 

 

 

 

 

Corporate debt securities

 

 

6,026

 

 

 

 

 

 

6,026

 

 

 

 

Commercial paper

 

 

234,110

 

 

 

 

 

 

234,110

 

 

 

 

Total short-term investments

 

 

339,383

 

 

 

99,247

 

 

 

240,136

 

 

 

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Money market account

 

 

816

 

 

 

816

 

 

 

 

 

 

 

Total restricted cash

 

 

816

 

 

 

816

 

 

 

 

 

 

 

Total assets measured at fair value on a recurring basis

 

$

365,217

 

 

$

115,083

 

 

$

250,134

 

 

$

 

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, commercial paper and money market funds.

Restricted Cash

Restricted cash consists of a money market account securing a standby letter of credit issued in connection with the Company’s Torrey Plaza operating lease (as defined and described in Note 3).

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying balance sheets that sum to the amounts shown in the statements of cash flows (in thousands):

 

 

March 31,
2022

 

 

December 31,
2021

 

 Cash and cash equivalents

 

$

55,129

 

 

$

35,582

 

 Restricted cash

 

 

816

 

 

 

816

 

 Total cash and cash equivalents and restricted cash

 

$

55,945

 

 

$

36,398

 

Short-Term Investments

Short-term investments consist of U.S. treasury securities, corporate debt securities and commercial paper. The Company has classified these investments as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all investment securities as current assets. Those investments with maturity dates of three months or less at the date of purchase are presented as cash equivalents in the accompanying balance sheets. Short-term investments are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit) until realized. Any premium or discount arising at purchase is amortized or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. The Company records an allowance for credit losses when unrealized losses are due to credit-related factors. Realized gains and losses are calculated using the specific identification method and recorded as interest income.

7


Table of Contents

Janux Therapeutics, Inc.

Notes to Unaudited Condensed Financial Statements–(Continued)

 

The following tables summarize short-term investments (in thousands):

 

 

 

As of March 31, 2022

 

 

 

Amortized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

U.S. Treasury securities

 

$

124,511

 

 

$

 

 

$

(1,154

)

 

$

123,357

 

Commercial paper

 

 

183,127

 

 

 

 

 

 

(