10-Q 1 alvr-10q_20200930.htm 10-Q alvr-10q_20200930.htm

 

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 September 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: 001-39409

 

ALLOVIR, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

 

83-1971007

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

139 Main Street, Suite 500

Cambridge, MA

 

02142

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (617) 433-2605

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

 

ALVR

 

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 November 9, 2020, the registrant had 65,106,873 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (unaudited)

4

 

Condensed Consolidated Balance Sheets

4

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

5

 

Condensed Consolidated Statements of Convertible Preferred Stock and Changes in Stockholders’ Equity (Deficit)

6

 

Condensed Consolidated Statements of Cash Flows

8

 

Notes to Condensed Consolidated Financial Statements

9

Item 2.

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

22

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

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 3.

Defaults Upon Senior Securities

78

Item 4.

Mine Safety Disclosures

78

Item 5.

Other Information

78

Item 6.

Exhibits

79

 

 

 

Signatures

80

 

 

 

i


Summary of Material Risks Associated with Our Business

Our business is subject to numerous risks and uncertainties that you should be aware of before making an investment decision, including those highlighted in the section entitled “Risk Factors.” These risks include, but are not limited to, the following:

 

Our business could be adversely affected by the effects of health epidemics, including the recent COVID-19 pandemic, in regions where third parties for which we rely, as in CROs or CMOs, have significant research, development or manufacturing facilities, concentrations of clinical trial sites or other business operations, causing disruption in supplies and services.

 

 

We are a late clinical-stage cell therapy company and we have incurred net losses since our inception. We anticipate that we will continue to incur significant losses for the foreseeable future, and may never achieve or maintain profitability.

 

 

Our business is highly dependent on our lead product candidate, Viralym-M, and we must complete clinical testing before we can seek regulatory approval and begin commercialization of any of our product candidates.

 

 

We depend substantially on intellectual property licensed from third parties, including BCM, and termination of any of these licenses could result in the loss of significant rights, which would harm our business.

 

 

If we are unable to obtain and maintain sufficient intellectual property protection for our product candidates and manufacturing process, or if the scope of the intellectual property protection is not sufficiently broad, our ability to commercialize our product candidates successfully and to compete effectively may be adversely affected.

 

 

We will need substantial additional funding, and if we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our product discovery and development programs or commercialization efforts.

 

 

We have a limited operating history, which may make it difficult to evaluate the success of our business to date and to assess our future viability.

 

 

We are early in our development efforts and have only a small number of product candidates in clinical development. All of our other product candidates are still in preclinical development. If we or our collaborators are unable to successfully develop and commercialize product candidates or experience significant delays in doing so, our business may be materially harmed.

 

 

Clinical drug development involves a lengthy and expensive process with an uncertain outcome, and the inability to successfully and timely conduct clinical trials and obtain regulatory approval for our product candidates would substantially harm our business.

 

 

The results of preclinical studies or earlier clinical trials are not necessarily predictive of future results. Our existing product candidates in clinical trials, and any other product candidate we advance into clinical trials, may not have favorable results in later clinical trials or receive regulatory approval.

 

 

Our product candidates, the methods used to deliver them or their dosage levels may cause undesirable side effects or have other properties that could delay or prevent their regulatory approval, limit the commercial profile of an approved label or result in significant negative consequences following any regulatory approval.

 

 

We face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than we do.

 

 

We and our third-party partners are subject to a multitude of manufacturing risks, any of which could substantially increase our costs and limit supply of our product candidates.

 

 

We intend to develop an efficient and highly productive manufacturing supply chain for our allogeneic, off-the-shelf single- and multi-VST cell therapies. Delays in process performance qualification to validate the drug product manufacturing process could delay regulatory approvals, our development plans and thereby limit our ability to generate revenues.

 

 

We are highly dependent on our key personnel and anticipate hiring new key personnel. If we are not successful in attracting and retaining highly qualified personnel, we may not be able to successfully implement our business strategy.

 

 

The trading price of our common stock may be volatile.

The summary risk factors described above should be read together with the text of the full risk factors below, in the section entitled “Risk Factors” and the other information set forth in this Quarterly Report on Form 10-Q, including our consolidated financial statements and the related notes, as well as in other documents that we file with the SEC. The risks summarized above or described in full below are not the only risks that we face. Additional risks and uncertainties not precisely known to us, or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, results of operations and future growth prospects.

1


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements, including but not limited to, statements about:

 

the success, cost, timing and potential indications of our product development activities and clinical trials, including the ongoing clinical trials of Viralym-M, ALVR106 and ALVR109;

 

the timing of our planned Investigational New Drug (IND) submissions to the FDA for our product candidates, including ALVR106, ALVR109, ALVR107 and ALVR108;

 

the timing of the initiation, enrollment and completion of planned clinical trials;

 

our plans to research, develop and commercialize our product candidates, including Viralym-M, ALVR106, ALVR109, ALVR107 and ALVR108;

 

the outcomes of our preclinical studies;

 

the costs of development of any of our product candidates or clinical development programs and our ability to obtain funding for our operations, including funding necessary to complete the clinical trials of any of our product candidates;

 

our ability to successfully manufacture and distribute Viralym-M and ALVR106 or any other future product or product candidate, including under the Development and Manufacturing Services Agreement with ElevateBio BaseCamp, Inc.;

 

the potential benefits of and our ability to maintain our collaboration with our existing collaborators, including BCM, and establish or maintain future collaborations or strategic relationships or obtain additional funding;

 

the ability to maintain our existing license agreements, including BCM, and to license additional intellectual property relating to any future product candidates and to comply with our existing license agreements;

 

our ability to attract and retain collaborators with development, regulatory and commercialization expertise;

 

risks associated with the COVID-19 pandemic, which may adversely impact our business and clinical trials;

 

the size of the markets for our VST product candidates, and our ability to serve those markets;

 

whether the results of our clinical trials will be sufficient to support domestic or foreign regulatory approvals for any of our product candidates;

 

our ability to successfully commercialize our product candidates, including Viralym-M and ALVR106;

 

the rate and degree of market acceptance of our product candidates, including Viralym-M and ALVR106;

 

our ability to obtain and maintain regulatory approval of our product candidates in any of the indications for which we plan to develop them, and any related restrictions, limitations or warnings in the label of any approved product we develop;

 

our ability to develop and maintain sales and marketing capabilities, whether alone or with potential future collaborators;

 

regulatory developments in the United States and foreign countries with respect to our product candidates or our competitors’ products and product candidates;

 

our reliance on third-party contract manufacturers and the performance of our third-party suppliers and manufacturers to manufacture and supply our product candidates for us;

 

the success of competing therapies that are or become available;

 

our ability to attract and retain key scientific or management personnel;

 

our expectation about the period of time over which our existing capital resources will be sufficient to fund our operating expenses and capital expenditures;

 

our expectations regarding the time during which we will be an emerging growth company under the JOBS Act;

 

our financial performance;

2


 

the impact of laws and regulations;

 

developments and projections relating to our competitors or our industry;

 

the accuracy of our estimates regarding expenses, future revenues, capital requirements and needs for additional financing; and

 

our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates and our ability to operate our business without infringing on the intellectual property rights of others.

In some cases, you can identify forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” “will,” or “would,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements.

You should read the section titled “Risk Factors” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. As a result of these factors, we cannot assure you that the forward-looking statements in this Quarterly Report on Form 10-Q will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

You should read this Quarterly Report on Form 10-Q, completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

3


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

ALLOVIR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

UNAUDITED

 

(in thousands, except share and per share amounts)

 

September 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

142,250

 

 

$

61,084

 

Short-term investments

 

 

236,238

 

 

 

64,993

 

Accrued interest

 

 

423

 

 

 

262

 

Unbilled grant receivables

 

 

169

 

 

 

298

 

Prepaid expenses and other current assets

 

 

4,861

 

 

 

676

 

Total current assets

 

 

383,941

 

 

 

127,313

 

Property and equipment

 

 

295

 

 

 

350

 

Operating lease right-of-use assets

 

 

9,474

 

 

 

11,759

 

Total assets

 

$

393,710

 

 

$

139,422

 

Liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,843

 

 

$

630

 

Accrued expenses

 

 

7,849

 

 

 

5,163

 

Operating lease liability, current

 

 

3,188

 

 

 

3,067

 

Amount due to related party

 

 

641

 

 

 

246

 

Total current liabilities

 

 

13,521

 

 

 

9,106

 

Operating lease liability, long term

 

 

6,286

 

 

 

8,692

 

Total liabilities

 

 

19,807

 

 

 

17,798

 

Series B preferred stock, $0.0001 par value: 0 and 14,877,697 shares authorized,

   issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

120,923

 

Series A preferred stock, $0.0001 par value: 0 and 64,520,653 shares authorized

   at September 30, 2020 and December 31, 2019, respectively; 0 and 44,520,653 shares issued

   and outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

52,204

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value: 10,000,000 shares authorized at

   September 30, 2020 and 0 at December 31, 2019; 0 issued and outstanding

   at September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

 

Common stock, $0.0001 par value: 150,000,000 and 90,000,000 shares authorized at

   September 30, 2020 and December 31, 2019, respectively; 65,106,873 and 6,502,929

   issued at September 30, 2020 and December 31, 2019, respectively;

   61,659,533 and 2,099,740 outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

7

 

 

 

 

Additional paid-in capital

 

 

473,841

 

 

 

3,748

 

Accumulated other comprehensive (loss) income

 

 

(41

)

 

 

68

 

Accumulated deficit

 

 

(99,904

)

 

 

(55,319

)

Total stockholders’ equity (deficit)

 

 

373,903

 

 

 

(51,503

)

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

$

393,710

 

 

$

139,422

 

 

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

 

4


ALLOVIR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

UNAUDITED

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(in thousands, except share and per share amounts)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

 

 

$

 

 

$

 

 

$

165

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

17,182

 

 

 

5,655

 

 

 

32,906

 

 

 

9,561

 

General and administrative

 

 

6,718

 

 

 

2,823

 

 

 

12,987

 

 

 

7,800

 

Total operating expenses

 

 

23,900

 

 

 

8,478

 

 

 

45,893

 

 

 

17,361

 

Loss from operations

 

 

(23,900

)

 

 

(8,478

)

 

 

(45,893

)

 

 

(17,196

)

Total other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

112

 

 

 

781

 

 

 

735

 

 

 

1,400

 

Other income, net

 

 

174

 

 

 

427

 

 

 

573

 

 

 

700

 

Net loss

 

$

(23,614

)

 

$

(7,270

)

 

$

(44,585

)

 

$

(15,096

)

Net loss per share — basic and diluted

 

$

(0.58

)

 

$

(4.97

)

 

$

(2.93

)

 

$

(13.67

)

Weighted-average common shares outstanding — basic and diluted

 

 

40,465,705

 

 

 

1,463,421

 

 

 

15,195,000

 

 

 

1,104,454

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(23,614

)

 

$

(7,270

)

 

$

(44,585

)

 

$

(15,096

)

Other comprehensive (loss) income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(125

)

 

 

(27

)

 

 

(83

)

 

 

102

 

Unrealized (loss) gain on foreign currency translation

 

 

(26

)

 

 

 

 

 

(26

)

 

 

 

Total other comprehensive (loss) income

 

 

(151

)

 

 

(27

)

 

 

(109

)

 

 

102

 

Comprehensive loss

 

$

(23,765

)

 

$

(7,297

)

 

$

(44,694

)

 

$

(14,994

)

 

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

 

5


ALLOVIR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

UNAUDITED

 

 

 

Series B

Preferred Stock

 

 

Series A

Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

(in thousands, except share amounts)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Deficit

 

Balance at December 31, 2018

 

 

 

 

$

 

 

 

42,066,666

 

 

$

52,204

 

 

 

 

747,231

 

 

$

 

 

$

858

 

 

 

 

 

$

(31,480

)

 

$

(30,622

)

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

140,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

231

 

 

 

 

 

 

 

 

 

231

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,524

)

 

 

(2,524

)

Balance at March 31, 2019

 

 

 

 

$

 

 

 

42,066,666

 

 

$

52,204

 

 

 

 

887,337

 

 

$

 

 

$

1,089

 

 

$

 

 

$

(34,004

)

 

$

(32,915

)

Issuance of Series B Preferred Stock, net of $330 issuance costs

 

 

14,877,697

 

 

$

120,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

510,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

129

 

 

 

 

 

 

129

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,441

 

 

 

 

 

 

 

 

 

1,441

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,302

)

 

 

(5,302

)

Balance at June 30, 2019

 

 

14,877,697

 

 

$

120,923

 

 

 

42,066,666

 

 

$

52,204

 

 

 

 

1,398,213

 

 

$

 

 

$

2,530

 

 

$

129

 

 

$

(39,306

)

 

$

(36,647

)

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

211,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27

)

 

 

 

 

 

(27

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

596

 

 

 

 

 

 

 

 

 

596

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,270

)

 

 

(7,270

)

Balance at September 30, 2019

 

 

14,877,697

 

 

 

120,923

 

 

 

42,066,666

 

 

 

52,204

 

 

 

 

1,609,411

 

 

 

 

 

 

3,126

 

 

 

102

 

 

 

(46,576

)

 

 

(43,348

)

6


ALLOVIR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

UNAUDITED

 

 

 

Series B

Preferred Stock

 

 

Series A

Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

(in thousands, except share amounts)

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity (Deficit)

 

Balance at December 31, 2019

 

 

14,877,697

 

 

$

120,923

 

 

 

44,520,653

 

 

$

52,204

 

 

 

 

2,099,740

 

 

$

 

 

$

3,748

 

 

$

68

 

 

$

(55,319

)

 

$

(51,503

)

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

292,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

176

 

 

 

 

 

 

176

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

646

 

 

 

 

 

 

 

 

 

646

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,339

)

 

 

(9,339

)

Balance at March 31, 2020

 

 

14,877,697

 

 

$

120,923

 

 

 

44,520,653

 

 

$

52,204

 

 

 

 

2,392,384

 

 

$

 

 

$

4,394

 

 

$

244

 

 

$

(64,658

)

 

$

(60,020

)

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(134

)

 

 

 

 

 

(134

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

492

 

 

 

 

 

 

 

 

 

492

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,632

)

 

 

(11,632

)

Balance at June 30, 2020

 

 

14,877,697

 

 

$

120,923

 

 

 

44,520,653

 

 

$

52,204

 

 

 

 

2,801,859

 

 

$

 

 

$

4,886

 

 

$

110

 

 

$

(76,290

)

 

$

(71,294

)

Issuance of common stock, upon vesting of restricted stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

311,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Initial public offering, net of underwriting discounts, commissions and offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,687,500

 

 

 

2

 

 

 

291,973

 

 

 

 

 

 

 

 

 

291,975

 

Conversion of convertible preferred stock into common stock upon initial public offering

 

 

(14,877,697

)

 

 

(120,923

)

 

 

(44,520,653

)

 

 

(52,204

)

 

 

 

39,859,139

 

 

 

5

 

 

 

173,122

 

 

 

 

 

 

 

 

 

173,127

 

Unrealized loss available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(125

)

 

 

 

 

 

(125

)

Unrealized loss on foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26

)

 

 

 

 

 

(26

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,860

 

 

 

 

 

 

 

 

 

3,860

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,614

)

 

 

(23,614

)

Balance at September 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

61,659,533

 

 

$

7

 

 

$

473,841

 

 

$

(41

)

 

$

(99,904

)

 

$

373,903

 

 

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

 

 

 

7


 

ALLOVIR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

 

 

 

Nine Months Ended

September 30,

 

(in thousands)

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(44,585

)

 

$

(15,096

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

55

 

 

 

 

Accretion of discounts on short-term investments

 

 

92

 

 

 

(450

)

Stock compensation expense

 

 

4,998

 

 

 

2,268

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Subscription receivable and unbilled grants receivable

 

 

129

 

 

 

(273

)

Accrued interest