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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 June 30, 2020

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: 000-51173

 

Catalyst Biosciences, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

56-2020050

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

 

611 Gateway Blvd., Suite 710

South San Francisco, California

94080

(Address of Principal Executive Offices)

(Zip Code)

(650) 871-0761

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered or to be 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

 

CBIO

 

NASDAQ

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, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “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 July 30, 2020, the number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 22,063,040.

 

 

 

 


CATALYST BIOSCIENCES, INC.

TABLE OF CONTENTS

 

 

 

 

 

Page No.

 

 

 

 

 

PART I. FINANCIAL INFORMATION

 

3

 

 

 

 

 

Item 1.

 

Financial Statements:

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2020 (unaudited) and December 31, 2019

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

5

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019 (unaudited)

 

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)

 

7

 

 

 

 

 

 

 

Notes to the Unaudited Interim Condensed Consolidated Financial Statements

 

8

 

 

 

 

 

Item 2.

 

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

 

16

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

25

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

26

 

 

 

 

 

PART II. OTHER INFORMATION

 

27

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

27

 

 

 

 

 

Item 1A.

 

Risk Factors

 

27

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

28

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

28

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

28

 

 

 

 

 

Item 5.

 

Other Information

 

28

 

 

 

 

 

Item 6.

 

Exhibits

 

28

 

 

 

 

 

Exhibit Index

 

29

 

 

 

 

 

Signatures

 

30

 

 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Catalyst Biosciences, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

 

 

 

June 30, 2020

 

 

December 31, 2019

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

59,273

 

 

$

15,369

 

Short-term investments

 

 

58,091

 

 

 

61,496

 

Accounts receivable

 

 

1,988

 

 

 

15,000

 

Prepaid and other current assets

 

 

1,993

 

 

 

4,201

 

Total current assets

 

 

121,345

 

 

 

96,066

 

Other assets, noncurrent

 

 

198

 

 

 

257

 

Right-of-use assets

 

 

1,660

 

 

 

1,927

 

Property and equipment, net

 

 

481

 

 

 

304

 

Total assets

 

$

123,684

 

 

$

98,554

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,499

 

 

$

4,279

 

Accrued compensation

 

 

1,778

 

 

 

2,106

 

Deferred revenue

 

 

330

 

 

 

15,000

 

Other accrued liabilities

 

 

9,550

 

 

 

7,031

 

Operating lease liability

 

 

507

 

 

 

483

 

Total current liabilities

 

 

13,664

 

 

 

28,899

 

Operating lease liability, noncurrent

 

 

1,059

 

 

 

1,319

 

Total liabilities

 

 

14,723

 

 

 

30,218

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 shares authorized; zero shares issued

   and outstanding

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized; 22,050,745 and

   12,040,835 shares issued and outstanding at June 30, 2020 and

   December 31, 2019, respectively

 

 

22

 

 

 

12

 

Additional paid-in capital

 

 

388,719

 

 

 

326,810

 

Accumulated other comprehensive income

 

 

41

 

 

 

34

 

Accumulated deficit

 

 

(279,821

)

 

 

(258,520

)

Total stockholders’ equity

 

 

108,961

 

 

 

68,336

 

Total liabilities and stockholders’ equity

 

$

123,684

 

 

$

98,554

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

3


 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

License

 

$

23

 

 

$

 

 

$

15,068

 

 

$

 

Collaboration

 

 

1,635

 

 

 

 

 

 

2,956

 

 

 

 

License and collaboration revenue

 

 

1,658

 

 

 

 

 

 

18,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license

 

 

23

 

 

 

 

 

 

3,070

 

 

 

 

Cost of collaboration

 

 

1,719

 

 

 

 

 

 

3,151

 

 

 

 

Research and development

 

 

12,906

 

 

 

11,111

 

 

 

26,170

 

 

 

23,138

 

General and administrative

 

 

4,371

 

 

 

3,270

 

 

 

8,062

 

 

 

6,956

 

Total operating expenses

 

 

19,019

 

 

 

14,381

 

 

 

40,453

 

 

 

30,094

 

Loss from operations

 

 

(17,361

)

 

 

(14,381

)

 

 

(22,429

)

 

 

(30,094

)

Interest and other income, net

 

 

113

 

 

 

601

 

 

 

1,128

 

 

 

1,232

 

Net loss

 

$

(17,248

)

 

$

(13,780

)

 

$

(21,301

)

 

$

(28,862

)

Net loss per share attributable to common

   stockholders, basic and diluted

 

$

(0.96

)

 

$

(1.15

)

 

$

(1.31

)

 

$

(2.41

)

Shares used to compute net loss per share attributable to

   common stockholders, basic and diluted

 

 

17,891,475

 

 

 

11,989,866

 

 

 

16,241,963

 

 

 

11,976,799

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

4


 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net loss

 

$

(17,248

)

 

$

(13,780

)

 

$

(21,301

)

 

$

(28,862

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on available-for-sale debt securities

 

 

(99

)

 

 

44

 

 

 

7

 

 

 

61

 

Total comprehensive loss

 

$

(17,347

)

 

$

(13,736

)

 

$

(21,294

)

 

$

(28,801

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

5


 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share amounts)

(Unaudited)

 

 

 

Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2019

 

 

 

 

$

 

 

 

12,040,835

 

 

$

12

 

 

$

326,810

 

 

$

34

 

 

$

(258,520

)

 

$

68,336

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

7,817

 

 

 

 

 

 

805

 

 

 

 

 

 

 

 

 

805

 

Issuance of common stock from stock

   grants and option exercises

 

 

 

 

 

 

 

 

62,969

 

 

 

 

 

 

339

 

 

 

 

 

 

 

 

 

339

 

Issuance of common stock for public offering, net

   of issuance costs of $2,514

 

 

 

 

 

 

 

 

5,307,692

 

 

 

5

 

 

 

31,981

 

 

 

 

 

 

 

 

 

31,986

 

Unrealized gain on available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106

 

 

 

 

 

 

 

106

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,053

)

 

 

(4,053

)

Balance at March 31, 2020

 

 

 

 

 

 

 

 

17,419,313

 

 

 

17

 

 

 

359,935

 

 

 

140

 

 

 

(262,573

)

 

 

97,519

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

16,048

 

 

 

 

 

 

834

 

 

 

 

 

 

 

 

 

834

 

Issuance of common stock for public offering, net

   of issuance costs of $2,045

 

 

 

 

 

 

 

 

4,615,384

 

 

 

5

 

 

 

27,950

 

 

 

 

 

 

 

 

 

27,955

 

Unrealized loss on available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(99

)

 

 

 

 

 

(99

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,248

)

 

 

(17,248

)

Balance at June 30, 2020

 

 

 

 

$

 

 

 

22,050,745

 

 

$

22

 

 

$

388,719

 

 

$

41

 

 

$

(279,821

)

 

$

108,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2018

 

 

 

 

$

 

 

 

11,954,528

 

 

$

12

 

 

$

323,279

 

 

$

(4

)

 

$

(203,342

)

 

$

119,945

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

829

 

 

 

 

 

 

 

 

 

829

 

Issuance of common stock from stock

   grants and option exercises

 

 

 

 

 

 

 

 

19,576

 

 

 

 

 

 

106

 

 

 

 

 

 

 

 

 

106

 

Unrealized gain on available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

17

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,082

)

 

 

(15,082

)

Balance at March 31, 2019

 

 

 

 

 

 

 

 

11,974,104

 

 

 

12

 

 

 

324,214

 

 

 

13

 

 

 

(218,424

)

 

 

105,815

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

5,999

 

 

 

 

 

 

903

 

 

 

 

 

 

 

 

 

903

 

Issuance of common stock from option exercises

 

 

 

 

 

 

 

 

28,425

 

 

 

 

 

 

129

 

 

 

 

 

 

 

 

 

129

 

Unrealized gain on available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

 

 

 

 

 

44

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,780

)

 

 

(13,780

)

Balance at June 30, 2019

 

 

 

 

$

 

 

 

12,008,528

 

 

$

12

 

 

$

325,246

 

 

$

57

 

 

$

(232,204

)

 

$

93,111

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

6


 

Catalyst Biosciences, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Operating Activities

 

 

 

 

 

 

 

 

Net loss

 

$

(21,301

)

 

$

(28,862

)

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

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

1,639

 

 

 

1,732

 

Depreciation and amortization

 

 

51

 

 

 

79

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

13,012

 

 

 

 

Prepaid and other assets

 

 

2,267

 

 

 

(361

)

Accounts payable

 

 

(2,780

)

 

 

(855

)

Accrued compensation and other accrued liabilities

 

 

1,825

 

 

 

1,803

 

Operating lease liability and right-of-use asset

 

 

31

 

 

 

40

 

Deferred revenue

 

 

(14,670

)

 

 

 

Net cash flows used in operating activities

 

 

(19,926

)

 

 

(26,424

)

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

Proceeds from maturities of short-term investments

 

 

50,493

 

 

 

89,005

 

Purchase of short-term investments

 

 

(47,081

)

 

 

(76,617

)

Purchases of property and equipment

 

 

(33

)

 

 

(64

)

Net cash flows provided by investing activities

 

 

3,379

 

 

 

12,324

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

Issuance of common stock for public offering, net of issuance costs

 

 

60,112

 

 

 

 

Issuance of common stock from stock grants and option exercises

 

 

339

 

 

 

235

 

Net cash flow provided by financing activities

 

 

60,451

 

 

 

235

 

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

 

 

43,904

 

 

 

(13,865

)

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

 

 

15,369

 

 

 

31,263

 

Cash, cash equivalents and restricted cash at end of the period(a)

 

$

59,273

 

 

$

17,398

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Right-of-use asset and operating lease liability recorded upon the adoption of ASC 842, net

 

$

 

 

$

2,052

 

 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets:

 

Cash and cash equivalents

 

$

59,273

 

 

$

17,348

 

Restricted cash

 

 

 

 

 

50

 

Total cash, cash equivalents and restricted cash

 

$

59,273

 

 

$

17,398

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

7


 

Catalyst Biosciences, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

1.

Nature of Operations and Liquidity

Catalyst Biosciences, Inc. and its subsidiary (the “Company” or “Catalyst”) is a fully integrated research and clinical development biopharmaceutical company with expertise in protease engineering, discovery, translational research, clinical development, and manufacturing. The Company is focused on advancing its protease product candidates in the fields of hemostasis and complement regulation. The Company is located in South San Francisco, California and operates in one segment.

The Company had a net loss of $21.3 million for the six months ended June 30, 2020 and an accumulated deficit of $279.8 million as of June 30, 2020. The Company expects to continue to incur losses for the next several years. As of June 30, 2020, the Company had $117.4 million of cash, cash equivalents and short-term investments. Its primary uses of cash are to fund operating expenses, including research and development expenditures and general and administrative expenditures. Based on the current status of its research and development plans, the Company believes that its existing cash, cash equivalents and short-term investments as of June 30, 2020 will be sufficient to fund its cash requirements for at least the next 12 months from the date of the filing of this quarterly report. If, at any time, the Company’s prospects for financing its research and development programs decline, the Company may decide to reduce research and development expenses by delaying, discontinuing or reducing its funding of one or more of its research or development programs. Alternatively, the Company might raise funds through strategic collaborations, public or private financings or other arrangements. Such funding, if needed, may not be available on favorable terms, or at all.  

2.

Summary of Significant Accounting Policies

Basis of Presentation

The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s financial information. These interim results and cash flows for any interim period are not necessarily indicative of the results to be expected for the full year.

The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (“Annual Report”).

Accounting Pronouncements Recently Adopted

The Company’s significant accounting policies are included in “Part II - Item 8 - Financial Statements and Supplementary Data - Note 3 – Summary of Significant Accounting Policies” in the Company’s Annual Report. In November 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 (“ASU 2018-18”). The amended guidance precludes presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. The new guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2018-18 as of January 1, 2020. The adoption of ASU 2018-18 did not have a material impact on the Company’s condensed consolidated financial statements.

New Accounting Pronouncements Recently Issued But Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about an entity's expected credit losses on financial instruments and other commitments to extend credit at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology currently used today with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, for the purpose of clarifying certain aspects of ASU 2016-

8


Catalyst Biosciences, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

13. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, to provide entities with more flexibility in applying the fair value option on adoption of the credit impairment standard. ASU 2018-19 and ASU 2019-05 have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 will be effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, using a modified retrospective approach. Early adoption is permitted. The Company plans to adopt ASU 2016-13 and related updates as of January 1, 2023. The Company will assess the impact of adoption of this standard on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 are intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning January 1, 2021 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements.

Cost of License and Collaboration Revenue

Cost of license revenue includes sublicense fees paid or payable to Mosaic Biosciences, Inc. (“Mosaic”), incurred in the period, under the terms of the Mosaic collaboration agreement, and fees for patent development and protection paid or payable to other third-party vendors corresponding to the recognition of license revenue from the Biogen Agreement. See Notes 7 and 11. Cost of license revenue does not include any allocated overhead costs.

Cost of collaboration revenue includes fees for research and development services paid or payable to Mosaic and other third-party vendors and personnel cost, incurred in the period pertaining to the Biogen Agreement. See Notes 7 and 11. Cost of collaboration revenue does not include any allocated overhead costs.

3.

Fair Value Measurements

For a description of the fair value hierarchy and the Company’s fair value methodology, see “Part II - Item 8 - Financial Statements and Supplementary Data - Note 2 – Summary of Significant Accounting Policies” in the Company’s Annual Report. There were no significant changes in these methodologies during the six months ended June 30, 2020.

There were no transfers in or out of Level 1 or 2 during the periods presented. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 (in thousands):

 

 

 

June 30, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

56,273

 

 

$

 

 

$

 

 

$

56,273

 

U.S. government agency securities(2)

 

 

44,292

 

 

 

 

 

 

 

 

 

44,292

 

Federal agency securities(2)

 

 

 

 

 

16,799

 

 

 

 

 

 

16,799

 

Total financial assets

 

$

100,565

 

 

$

16,799

 

 

$