crtx-10q_20190930.htm

 

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 September 30, 2019

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: 001-38890

 

Cortexyme, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

90-1024039

( State or other jurisdiction of

incorporation or organization)

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

269 East Grand Ave.

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (415) 910-5717

 

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 $0.001 per share

 

CRTX

 

Nasdaq Global Select 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, a 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 12, 2019, the registrant had 26,852,483 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations and Comprehensive Loss

2

 

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

3

 

Condensed Statements of Cash Flows

5

 

Notes to Unaudited Condensed Financial Statements

6

Item 2.

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

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

21

Item 4.

Controls and Procedures

22

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

23

Item 1A.

Risk Factors

23

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

23

Item 3.

Defaults Upon Senior Securities

23

Item 4.

Mine Safety Disclosures

23

Item 5.

Other Information

23

Item 6.

Exhibits

24

Signatures

25

 

 

 

i


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Cortexyme, Inc.

Condensed Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

September 30, 2019

 

 

December 31, 2018 (1)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,740

 

 

$

24,872

 

Short term investments

 

 

75,730

 

 

 

46,844

 

Restricted cash

 

 

250

 

 

 

 

Prepaid expenses and other current assets

 

 

3,649

 

 

 

868

 

Total current assets

 

 

124,369

 

 

 

72,584

 

Property and equipment, net

 

 

270

 

 

 

283

 

Right-of-use assets

 

 

1,171

 

 

 

 

Long term investments

 

 

7,341

 

 

 

 

Other assets

 

 

263

 

 

 

10

 

Total assets

 

$

133,414

 

 

$

72,877

 

 

 

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND

   STOCKHOLDERS’ EQUITY / (DEFICIT)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts Payable

 

$

2,295

 

 

$

495

 

Accrued expenses and other current liabilities

 

 

3,832

 

 

 

962

 

Total current liabilities

 

 

6,127

 

 

 

1,457

 

Total liabilities

 

 

6,127

 

 

 

1,457

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Series A redeemable convertible preferred stock, par value $0.001, no shares authorized,

   issued and outstanding as of September 30, 2019 and 9,008,931 shares authorized,

   9,008,919 shares issued and outstanding December 31, 2018; liquidation preference

   of $0 and $17,178 at September 30, 2019 and December 31, 2018, respectively

 

 

 

 

 

17,178

 

Series B redeemable convertible preferred stock, par value $0.001, no shares authorized,

   issued and outstanding as of September 30, 2019 and 9,430,145 shares authorized,

   9,152,108 shares issued and outstanding as December 31, 2018; liquidation preference

   of $0 and $87,972 at September 30, 2019 and December 31, 2018, respectively

 

 

 

 

 

86,868

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Preferred Stock, $0.001 par value, 10,000,000 authorized, no shares issued and

   outstanding September 30, 2019 and no shares authorized, issued and outstanding

   at December 31, 2018

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 and 24,794,114 shares authorized,

   26,841,149 and 3,412,366 issued and outstanding as of September 30, 2019 and

   December 31, 2018, respectively

 

 

27

 

 

 

3

 

Additional paid in capital

 

 

184,590

 

 

 

245

 

Accumulated other comprehensive income (loss)

 

 

96

 

 

 

(49

)

Accumulated deficit

 

 

(57,426

)

 

 

(32,825

)

Total stockholders’ equity / (deficit)

 

 

127,287

 

 

 

(32,626

)

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

 

$

133,414

 

 

$

72,877

 

 

(1)

The balance sheet as of December 31, 2018 is derived from the audited financial statements as of that date

 

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

1


Cortexyme, Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

8,253

 

 

$

2,290

 

 

$

20,187

 

 

$

6,989

 

General and administrative

 

 

2,316

 

 

 

584

 

 

 

6,032

 

 

 

1,288

 

Total operating expenses

 

 

10,569

 

 

 

2,874

 

 

 

26,219

 

 

 

8,277

 

Loss from operations

 

 

(10,569

)

 

 

(2,874

)

 

 

(26,219

)

 

 

(8,277

)

Interest income

 

 

711

 

 

 

353

 

 

 

1,618

 

 

 

434

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(957

)

Change in fair value of derivative liability

 

 

 

 

 

 

 

 

 

 

 

(206

)

Net loss

 

 

(9,858

)

 

 

(2,521

)

 

 

(24,601

)

 

 

(9,006

)

Other comprehensive income/ (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain / (loss) on available for sales securities

 

 

16

 

 

 

(16

)

 

 

145

 

 

 

(16

)

Total comprehensive income/(loss)

 

 

(9,842

)

 

 

(2,537

)

 

 

(24,456

)

 

 

(9,022

)

Net loss per share - basic and diluted

 

 

(0.37

)

 

 

(0.75

)

 

 

(1.59

)

 

 

(2.68

)

Weighted average shares of common stock outstanding -

   basic and diluted

 

 

26,841,149

 

 

 

3,361,029

 

 

 

15,489,216

 

 

 

3,360,683

 

 

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

 

 

2


Cortexyme, Inc.

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

(Unaudited)

(In thousands, except share and per share amounts)

 

For the three months ended September 30, 2019 and 2018

 

 

 

Series A Redeemable

Convertible Preferred

Stock

 

 

Series B Redeemable

Convertible Preferred

Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Shareholders'

Equity/

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income / (Loss)

 

 

Deficit

 

 

(Deficit)

 

Balance June 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,841,149

 

 

$

27

 

 

$

183,678

 

 

$

80

 

 

$

(47,568

)

 

$

136,217

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

912

 

 

 

 

 

 

 

 

 

912

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

16

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(9,858

)

 

 

(9,858

)

Balance September 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,841,149

 

 

$

27

 

 

$

184,590

 

 

$

96

 

 

$

(57,426

)

 

$

127,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance June 30, 2018

 

 

9,008,919

 

 

$

17,178

 

 

 

9,037,671

 

 

 

86,715

 

 

 

3,361,016

 

 

$

3

 

 

$

93

 

 

 

 

 

$

(26,834

)

 

$

(26,738

)

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

20

 

Vesting of Series B redeemable

   convertible preferred stock in lieu of rent

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series B redeemable convertible

   preferred stock in connection with the

   facility lease agreement

 

 

 

 

 

 

 

 

114,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,521

)

 

 

(2,521

)

Balance September 30, 2018

 

 

9,008,919

 

 

$

17,178

 

 

 

9,152,108

 

 

$

86,776

 

 

 

3,361,016

 

 

$

3

 

 

$

113

 

 

$

(16

)

 

$

(29,355

)

 

$

(29,255

)

 

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

3


Cortexyme, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity/ (Deficit) (continued)

(Unaudited)

(In thousands, except share and per share amounts)

 

For the nine months ended September 30, 2019 and 2018

 

 

 

Series A Redeemable

Convertible Preferred

Stock

 

 

Series B Redeemable

Convertible Preferred

Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Shareholders'

Equity /

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income / (Loss)

 

 

Deficit

 

 

(Deficit)

 

Balance January 1, 2019

 

 

9,008,919

 

 

$

17,178

 

 

 

9,152,108

 

 

$

86,868

 

 

 

3,412,366

 

 

$

3

 

 

$

245

 

 

$

(49

)

 

$

(32,825

)

 

$

(32,626

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

166,015

 

 

 

1

 

 

 

68

 

 

 

 

 

 

 

 

 

69

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,479

 

 

 

 

 

 

 

 

 

1,479

 

Vesting of Series B redeemable convertible

   preferred stock in lieu of rent

 

 

 

 

 

 

 

 

 

 

 

948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of redeemable convertible

   preferred stock to common stock

 

 

(9,008,919

)

 

 

(17,178

)

 

 

(9,152,108

)

 

 

(87,816

)

 

 

18,161,027

 

 

 

18

 

 

 

104,976

 

 

 

 

 

 

 

 

 

104,994

 

Initial public offering of common stock, net

   of issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,073,800

 

 

 

5

 

 

 

77,822

 

 

 

 

 

 

 

 

 

77,827

 

Exercise of stock warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

145

 

 

 

 

 

 

145

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,601

)

 

 

(24,601

)

Balance September 30, 2019

 

 

 

 

$

 

 

 

 

 

$

 

 

 

26,841,149

 

 

$

27

 

 

$

184,590

 

 

$

96

 

 

$

(57,426

)

 

$

127,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2018

 

 

9,008,919

 

 

$

17,178

 

 

 

 

 

$

 

 

 

3,361,016

 

 

$

3

 

 

$

66

 

 

$

 

 

$

(20,349

)

 

$

(20,280

)

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

47

 

Proceeds from Series B redeemable

   convertible preferred stock, net of

   issuance costs

 

 

 

 

 

 

 

 

7,890,466

 

 

 

75,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series B redeemable

   convertible preferred stock in

   connection with the conversion of

   convertible promissory notes and

   accrued interest

 

 

 

 

 

 

 

 

1,147,205

 

 

 

11,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of Series B redeemable convertible

   preferred stock in lieu of rent

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series B redeemable

   convertible preferred stock in connection

   with the facility lease agreement

 

 

 

 

 

 

 

 

 

 

114,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,006

)

 

 

(9,006

)

Balance September 30, 2018

 

 

9,008,919

 

 

$

17,178

 

 

 

9,152,108

 

 

$

86,776

 

 

 

3,361,016

 

 

$

3

 

 

$

113

 

 

$

(16

)

 

$

(29,355

)

 

$

(29,255

)

 

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

 

 

4


 

Cortexyme, Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net Loss

 

$

(24,601

)

 

$

(9,006

)

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

 

 

 

 

 

 

 

 

Non-cash interest expense related to convertible promissory notes

 

 

 

 

 

262

 

Non-cash rent expense

 

 

275

 

 

 

61

 

Stock based compensation

 

 

1,479

 

 

 

47

 

Depreciation and amortization

 

 

112

 

 

 

27

 

Accretion of discount on convertible promissory notes payable

 

 

 

 

 

694

 

Amortization of discount on available for sale investments

 

 

(728

)

 

 

(122

)

Change in fair value of derivative liability

 

 

 

 

 

206

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

(3,281

)

 

 

20

 

Other assets

 

 

(253

)

 

 

 

Accounts payable

 

 

1,800

 

 

 

50

 

Accrued expenses and other current liabilities

 

 

2,870

 

 

 

39

 

Net cash used in operating activities

 

 

(22,327

)

 

 

(7,722

)

Cash flow from investing activities:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(98,475

)

 

 

(48,103

)

Proceeds from maturities of investments

 

 

63,070

 

 

 

 

Purchase of property and equipment

 

 

(46

)

 

 

(212

)

Net cash used in investing activities

 

 

(35,451

)

 

 

(48,315

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of convertible promissory note payable

 

 

 

 

 

250

 

Proceeds from issuance of commons stock upon exercise of stock options

 

 

69

 

 

 

 

Proceeds from Series B redeemable convertible preferred stock

 

 

 

 

 

75,688

 

Proceeds from initial public offering, net of stock offering costs

 

 

77,827

 

 

 

 

Net cash provided by financing activities

 

 

77,896

 

 

 

75,938

 

Net increase in cash, cash equivalents and restricted cash

 

 

20,118

 

 

 

19,901

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

24,872

 

 

 

7,393

 

Cash, cash equivalents and restricted cash at end of period

 

$

44,990

 

 

$

27,294

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of non-cash information:

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

878

 

 

$

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

$

500

 

 

 

 

 

Conversion of Series A redeemable convertible preferred stock to common stock on

   initial public offering

 

$

17,178

 

 

$

 

Conversion of Series B redeemable convertible preferred stock to common stock on

   initial public offering

 

$

87,816

 

 

$

 

Acceleration of vesting of Series B redeemable convertible preferred stock on initial

   public offering

 

$

856

 

 

$

 

Issuance of Series B redeemable convertible preferred stock in connection with

   conversion of convertible promissory notes and accrued interest

 

$

 

 

$

11,027

 

Issuance of Series B redeemable convertible stock for facility lease

 

$

 

 

$

1,100

 

 

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

5


 

Cortexyme, Inc.

Notes to Unaudited Condensed Financial Statements

Note 1. Organization

Description of Business

Cortexyme, Inc. (the “Company”) was incorporated in the State of Delaware in June 2012 and is headquartered in South San Francisco, California. The Company is a clinical stage biopharmaceutical company focused on developing therapeutics based on data supporting a new theory of the cause of Alzheimer’s disease and other degenerative disorders. Cortexyme is targeting a specific, infectious pathogen tied to neurodegeneration and chronic inflammation in humans and animal models.

Reverse Stock Split

On April 25, 2019, the Company’s Board of Directors approved a one-for-0.367647 reverse split of the Company’s issued and outstanding common stock, redeemable convertible preferred stock, and stock options. The par value of the common stock was not adjusted as a result of the reverse stock split. All share and per share amounts in the accompanying unaudited condensed financial statements and notes to the unaudited condensed financial statements have been retroactively adjusted for all periods presented to reflect the reverse stock split.

Initial Public Offering

On May 8, 2019, the Company’s registration statement on Form S-1 (File No. 333-230853) for its initial public offering of common stock (“IPO”) was declared effective by the Securities and Exchange Commission (“SEC”). On May 13, 2019, the Company closed its IPO with the sale of 5,073,800 shares of common stock, which included 661,800 shares of common stock issued upon the exercise in full of the underwriters’ option to purchase additional shares, at a public offering price of $17.00 per share, resulting in net proceeds of $77.8 million, after deducting underwriting discounts and commissions and estimated offering expenses paid by the Company.

In addition, in connection with the closing of the IPO, all of the Company’s outstanding shares of redeemable convertible preferred stock were automatically converted into 18,161,027 shares of common stock, and there are no shares of redeemable convertible preferred stock outstanding.

Liquidity and Capital Resources

The Company has incurred losses and negative cash flows from operations since inception and expects to continue to generate operating losses for the foreseeable future. As of September 30, 2019, the Company had an accumulated deficit of $57.4 million. Since inception through September 30, 2019, the Company has funded operations primarily with the net proceeds from the issuance of convertible promissory notes, from the issuance of redeemable convertible preferred stock and from the net proceeds from the IPO. As of September 30, 2019, the Company had cash, cash equivalents, and short-term investments of $120.5 million, which it believes will be sufficient to fund its planned operations for a period of at least 12 months from the date of the issuance of the accompanying unaudited financial statements.

Management expects to incur additional losses in the future to fund its operations and conduct product research and development and may need to raise additional capital to fully implement its business plan. The Company may raise additional capital through the issuance of equity securities, debt financings or other sources in order to further implement its business plan. However, if such financing is not available when needed and at adequate levels, the Company will need to reevaluate its operating plan and may be required to delay the development of its product candidate.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the instructions of the SEC on Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the management’s opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the periods presented have been included.

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The condensed balance sheet as of September 30, 2019, the condensed statements of operations and comprehensive loss for the three and nine months ended September 30, 2019 and 2018, the condensed statements of stockholders’ equity/(deficit) as of September 30, 2019 and 2018, the condensed statements of cash flows for the nine m