SEC Filing | Cassava Sciences, Inc.

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sava-20220930x10q

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

¨ 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:

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

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

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.

‎

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.

‎



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.
‎



CASSAVA SCIENCES, INC.