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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

Form 10-Q

_____________________

(Mark One)

þ   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 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: 000-29959

_______________

Cassava Sciences, Inc.

(Exact name of registrant as specified in its charter)

Delaware

91-1911336

(State or other jurisdiction of

(I.R.S.  Employer

incorporation or organization)

Identification Number)

6801 N. Capital of Texas Highway, Building 1; Suite 300, Austin, TX 78731

(512) 501-2444

(Address, including zip code, of registrant’s principal executive offices and

telephone number, including area code)

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

0

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.001 par value

 

SAVA

 

Nasdaq Capital 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 þ   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 þ   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 þ

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 þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $0.001 par value

40,068,890

Shares Outstanding as of November 4, 2022

 

1


CASSAVA SCIENCES, INC.

TABLE OF CONTENTS

Page No.

PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets – September 30, 2022 and December 31, 2021

3

Condensed Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2022 and 2021

4

Condensed Consolidated Statements of Changes in Stockholders’ Equity - Three and Nine Months Ended September 30, 2022 and 2021

5

Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2022 and 2021

6

Notes to Condensed Consolidated Financial Statements

7

Item 2.

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

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

35

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

35

Item 1A

Risk Factors

36

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

37

Item 3.

Defaults Upon Senior Securities

37

Item 4.

Mine Safety Disclosures

37

Item 5.

Other Information

37

Item 6.

Exhibits

38

Signatures

39

 

2


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CASSAVA SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share and par value data)

September 30,

December 31,

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$

174,662

$

233,437

Prepaid expenses and other current assets

8,610

11,045

Total current assets

183,272

244,482

Operating lease right-of-use assets

144

210

Property and equipment, net

23,130

20,616

Intangible assets, net

740

1,075

Other assets

399

Total assets

$

207,286

$

266,782

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

3,534

$

7,126

Accrued development expense

4,096

2,803

Accrued compensation and benefits

160

1,877

Operating lease liabilities, current

102

97

Other current liabilities

416

631

Total current liabilities

8,308

12,534

Operating lease liabilities, non-current

62

139

Other non-current liabilities

197

194

Total liabilities

8,567

12,867

Commitments and contingencies (Notes 9, 10 and 11)

 

 

Stockholders' equity:

Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding

Common stock, $0.001 par value; 120,000,000 shares authorized; 40,059,514 and 40,016,792 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

40

40

Additional paid-in capital

463,097

461,181

Accumulated deficit

(264,418)

(207,306)

Total stockholders' equity

198,719

253,915

Total liabilities and stockholders' equity

$

207,286

$

266,782

See accompanying notes to condensed consolidated financial statements.


3


 

Enstivity

CASSAVA SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

Three months ended

Nine months ended

September 30,

September 30,

2022

2021

2022

2021

Operating expenses:

Research and development, net of grant reimbursement

$

18,526

$

8,041

$

50,380

$

14,471

General and administrative

2,819

1,712

8,703

3,953

Total operating expenses

21,345

9,753

59,083

18,424

Operating loss

(21,345)

(9,753)

(59,083)

(18,424)

Interest income

878

15

1,223

35

Other income, net

210

176

748

176

Net loss

$

(20,257)

$

(9,562)

$

(57,112)

$

(18,213)

Net loss per share, basic and diluted

$

(0.51)

$

(0.24)

$

(1.43)

$

(0.46)

Shares used in computing net loss per share, basic and diluted

40,050

39,957

40,009

39,218

See accompanying notes to condensed consolidated financial statements.


4


 

CASSAVA SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited, in thousands, except share data)

Total

Common stock

Additional

Accumulated

stockholders'

Shares

Par value

paid-in capital

deficit

equity

Balance at December 31, 2020

35,237,987

$

35

$

267,086

$

(174,921)

$

92,200

Stock-based compensation for:

Stock options for employees

249

249

Stock options for non-employees

1

1

Issuance of common stock pursuant to exercise of stock options

554,019

1

691

692

Issuance of common stock pursuant to exercise of warrants

135,015

1,746

1,746

Common stock issued in conjunction with registered direct offering, net of issuance costs

4,081,633

4

189,821

189,825

Net loss

(3,526)

(3,526)

Balance at March 31, 2021

40,008,654

$

40

$

459,594

$

(178,447)

$

281,187

Stock-based compensation for:

Stock options for employees

410

410

Stock options for non-employees

5

5

Issuance of common stock pursuant to exercise of stock options

3,240

3

3

Net loss

(5,125)

(5,125)

Balance at June 30, 2021

40,011,894

$

40

$

460,012

$

(183,572)

$

276,480

Stock-based compensation for:

Stock options for employees

548

548

Stock options for non-employees

24

24

Issuance of common stock pursuant to exercise of stock options

4,898

75

75

Net loss

(9,562)

(9,562)

Balance at September 30, 2021

40,016,792

$

40

$

460,659

$

(193,134)

$

267,565

Balance at December 31, 2021

40,016,792

$

40

$

461,181

$

(207,306)

$

253,915

Stock-based compensation for:

Stock options for employees

471

471

Stock options for non-employees

24

24

Issuance of common stock pursuant to exercise of stock options

14,488

211

211

Net loss

(17,527)

(17,527)

Balance at March 31, 2022

40,031,280

$

40

$

461,887

$

(224,833)

$

237,094

Stock-based compensation for:

Stock options for employees

462

462

Stock options for non-employees

23

23

Issuance of common stock pursuant to exercise of stock options

66,637

119

119

Net loss

(19,328)

(19,328)

Balance at June 30, 2022

40,097,917

$

40

$

462,491

$

(244,161)

$

218,370

Stock-based compensation for:

Stock options for employees

447

447

Stock options for non-employees

23

23

Expiration of restricted stock Performance Awards

(57,143)

Issuance of common stock pursuant to exercise of stock options

18,740

136

136

Net loss

(20,257)

(20,257)

Balance at September 30, 2022

40,059,514

$

40

$

463,097

$

(264,418)

$

198,719

 

See accompanying notes to condensed consolidated financial statements.

5


 

CASSAVA SCIENCES, INC.