rapt-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: 001-38997

 

RAPT Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

47-3313701

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

561 Eccles Avenue  

South San Francisco, California 94080

(Address of principal executive offices and zip code)

(650) 489-9000 

(Registrant’s 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 $0.0001 par value per share

RAPT

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 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 December 6, 2019, there were 21,831,103 shares of the registrants common stock outstanding.

 

 


RAPT THERAPEUTICS, INC.

TABLE OF CONTENTS

 

 

 

 

Page No.

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

3

 

Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

 

3

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2019 and 2018  

 

4

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2019 and 2018

 

5

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

 

7

 

Notes to 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

 

21

Item 4.

Controls and Procedures

 

21

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

22

Item 1A.

Risk Factors

 

22

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

55

Item 3.

Defaults Upon Senior Securities

 

56

Item 4.

Mine Safety Disclosures

 

56

Item 5.

Other Information

 

56

Item 6.

Exhibits

 

57

Signature

 

58

 

 


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

 

RAPT THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(Note 2)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

48,310

 

 

$

63,798

 

Prepaid expenses and other current assets

 

 

2,914

 

 

 

1,264

 

Total current assets

 

 

51,224

 

 

 

65,062

 

Property and equipment, net

 

 

4,002

 

 

 

4,159

 

Other assets

 

 

3,143

 

 

 

389

 

Total assets

 

$

58,369

 

 

$

69,610

 

Liabilities, Convertible Preferred Stock and Stockholders' Deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,590

 

 

$

1,771

 

Accrued expenses

 

 

3,410

 

 

 

2,488

 

Other current liabilities

 

 

457

 

 

 

384

 

Total current liabilities

 

 

5,457

 

 

 

4,643

 

Deferred rent, net of current portion

 

 

2,219

 

 

 

969

 

Commitments

 

 

 

 

 

 

 

 

Convertible preferred stock

 

 

175,490

 

 

 

161,111

 

Stockholders' equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock

 

 

-

 

 

 

-

 

Common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

23,923

 

 

 

22,441

 

Related party promissory note for the purchase of common stock

 

 

 

 

 

(598

)

Accumulated other comprehensive income/(loss)

 

 

13

 

 

 

(4

)

Accumulated deficit

 

 

(148,734

)

 

 

(118,953

)

Total stockholders' (deficit) equity

 

 

(124,797

)

 

 

(97,113

)

Total liabilities, convertible preferred stock and stockholders' (deficit)

 

$

58,369

 

 

$

69,610

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

3


RAPT THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

8,582

 

 

$

9,181

 

 

$

24,720

 

 

$

23,387

 

General and administrative

 

 

1,733

 

 

 

1,364

 

 

 

6,094

 

 

 

3,889

 

Total operating expenses

 

 

10,315

 

 

 

10,545

 

 

 

30,814

 

 

 

27,276

 

Loss from operations

 

 

10,315

 

 

 

10,545

 

 

 

30,814

 

 

 

27,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

344

 

 

 

261

 

 

 

1,033

 

 

 

559

 

Net loss

 

$

(9,971

)

 

$

(10,284

)

 

$

(29,781

)

 

$

(26,717

)

Other comprehensive income/(loss)

 

 

15

 

 

 

(4

)

 

 

17

 

 

 

(4

)

Total comprehensive loss

 

$

(9,956

)

 

$

(10,288

)

 

$

(29,764

)

 

$

(26,721

)

Net loss per share, basic and diluted

 

$

(12.41

)

 

$

(15.90

)

 

$

(40.15

)

 

$

(45.11

)

Weighted average number of shares used in computing net loss

   per share, basic and diluted

 

 

803,229

 

 

 

646,800

 

 

 

741,711

 

 

 

592,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


RAPT THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT

(In thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Promissory Notes

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Convertible Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

for the Purchase

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

of Common Stock

 

 

Deficit

 

 

Income/(Loss)

 

 

Deficit

 

Balance at December 31, 2017

 

 

75,563,784

 

 

$

108,643

 

 

 

880,191

 

 

$

1

 

 

$

21,005

 

 

$

(605

)

 

$

(82,806

)

 

$

 

 

$

(62,405

)

Issuance cost related to Series C convertible

   preferred stock preferred stock

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock

   options, net of repurchase

 

 

 

 

 

 

 

 

5,159

 

 

 

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

90

 

Repurchase of common stock from related party

 

 

 

 

 

 

 

 

(8,333

)

 

 

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

17

 

Interest on promissory notes from related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

(3

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

294

 

 

 

 

 

 

 

 

 

 

 

 

294

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,232

)

 

 

 

 

 

(8,232

)

Balance at March 31, 2018

 

 

75,563,784

 

 

$

108,639

 

 

 

877,017

 

 

$

1

 

 

$

21,389

 

 

$

(591

)

 

$

(91,038

)

 

$

 

 

$

(70,239

)

Issuance cost related to Series C convertible

   preferred stock preferred stock, net of

   issuance costs

 

 

13,054,684

 

 

 

29,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock

   options, net of repurchase

 

 

 

 

 

 

 

 

(5,849

)

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Repurchase of common stock from related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on promissory notes from related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

(2

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

286

 

 

 

 

 

 

 

 

 

 

 

 

286

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,204

)

 

 

 

 

 

(8,204

)

Balance at June 30, 2018

 

 

88,618,468

 

 

$

138,557

 

 

 

871,169

 

 

$

1

 

 

$

21,722

 

 

$

(593

)

 

$

(99,242

)

 

$

 

 

$

(78,112

)

Issuance cost related to Series C convertible

   preferred stock preferred stock, net of

   issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock

   options, net of repurchase

 

 

 

 

 

 

 

 

(2,277

)

 

 

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

 

60

 

Repurchase of common stock from related party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on promissory notes from related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

(3

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

295

 

 

 

 

 

 

 

 

 

 

 

 

295

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,284

)

 

 

 

 

 

(10,284

)

Balance at September 30, 2018

 

 

88,618,468

 

 

$

138,557

 

 

 

868,892

 

 

$

1

 

 

$

22,077

 

 

$

(596

)

 

$

(109,526

)

 

$

(4

)

 

$

(88,048

)

5


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Promissory Notes

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Convertible Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

for the Purchase

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

of Common Stock

 

 

Deficit

 

 

Income/(Loss)

 

 

Deficit

 

Balance at December 31, 2018

 

 

98,491,880

 

 

$

161,111

 

 

 

878,413

 

 

$

1

 

 

$

22,441

 

 

$

(598

)

 

$

(118,953

)

 

$

(4

)

 

$

(97,113

)

Issuance of Series C-2 convertible preferred stock,

   net of issuance costs

 

 

3,039,908

 

 

 

6,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock

   options, net of repurchase

 

 

 

 

 

 

 

 

3,685

 

 

 

 

 

 

66

 

 

 

 

 

 

 

 

 

 

 

 

66

 

Repurchase of common stock from related party

 

 

 

 

 

 

 

 

(53,649

)

 

 

 

 

 

 

 

 

109

 

 

 

 

 

 

 

 

 

109

 

Interest on promissory notes from related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

(2

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

377

 

 

 

 

 

 

 

 

 

 

 

 

377

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,188

)

 

 

 

 

 

(9,188

)

Balance at March 31, 2019

 

 

101,531,788

 

 

$

168,058

 

 

 

828,449

 

 

$

1

 

 

$

22,884

 

 

$

(491

)

 

$

(128,141

)

 

$

(4

)

 

$

(105,751

)

Issuance of Series C-2 convertible preferred stock,

   net of issuance costs

 

 

3,271,537

 

 

 

7,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock

   options, net of repurchase

 

 

 

 

 

 

 

 

13,996

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

34

 

Repurchase of common stock from related party

 

 

 

 

 

 

 

 

(29,686

)

 

 

 

 

 

 

 

 

65

 

 

 

 

 

 

 

 

 

65

 

Paydown of promissory notes from related parties

   for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

73

 

Forgiveness of promissory notes from related parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   for purchase of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

353

 

 

 

 

 

 

 

 

 

 

 

353

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

347

 

 

 

 

 

 

 

 

 

 

 

 

347

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,622

)

 

 

 

 

 

(10,622

)

Balance at June 30, 2019

 

 

104,803,325