SEC Filing | RAPT Therapeutics, Inc.

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10-Q

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, 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: 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.

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 November 4, 2022, there were 29,910,852 shares of the registrant’s common stock outstanding.

RAPT THERAPEUTICS, INC.

TABLE OF CONTENTS


		Page No.
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three- and Nine-Months Ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three- and Nine-Months Ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows for the 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	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

RAPT THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)


	September 30,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	27,706		$	24,027
Marketable securities		167,730			165,627
Prepaid expenses and other current assets		2,458			3,319
Total current assets		197,894			192,973
Property and equipment, net		2,742			2,741
Operating lease right-of-use assets		5,782			—
Other assets		3,071			2,922
Total assets	$	209,489		$	198,636
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	4,043		$	1,999
Accrued expenses		8,240			6,326
Deferred revenue, current		—			1,016
Operating lease liabilities, current		1,551			—
Other current liabilities		33			254
Total current liabilities		13,867			9,595
Deferred rent, net of current portion		—			2,150
Deferred revenue, non-current		—			511
Operating lease liabilities, non-current		6,316			—
Total liabilities		20,183			12,256
Commitments and contingencies
Stockholders' equity:
Preferred stock		—			—
Common stock		3			3
Additional paid-in capital		534,689			470,629
Accumulated other comprehensive loss		(453	)		(206	)
Accumulated deficit		(344,933	)		(284,046	)
Total stockholders' equity		189,306			186,380
Total liabilities and stockholders' equity	$	209,489		$	198,636

See accompanying notes to condensed consolidated financial statements.

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,
	2022			2021			2022			2021
Revenue	$	—		$	966		$	1,527		$	3,057
Operating expenses:
Research and development		16,599			15,725			47,628			42,686
General and administrative		5,079			3,774			15,263			11,546
Total operating expenses		21,678			19,499			62,891			54,232
Loss from operations		(21,678	)		(18,533	)		(61,364	)		(51,175	)
Other income (expense), net		443			(118	)		477			(100	)
Net loss	$	(21,235	)	$	(18,651	)	$	(60,887	)	$	(51,275	)
Other comprehensive income (loss):
Foreign currency translation gain		366			173			715			281
Unrealized gain (loss) on marketable securities		(74	)		9			(962	)		(59	)
Total comprehensive loss	$	(20,943	)	$	(18,469	)	$	(61,134	)	$	(51,053	)
Net loss per share, basic and diluted	$	(0.63	)	$	(0.63	)	$	(1.93	)	$	(1.92	)
Weighted average number of shares used in computing net loss per share, basic and diluted		33,684,261			29,491,857			31,481,948			26,663,209

See accompanying notes to condensed consolidated financial statements.

RAPT THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share amounts)

(Unaudited)


							Accumulated
					Additional		Other						Total
	Common Stock				Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares		Amount		Capital		Loss			Deficit			Equity
Balance at December 31, 2021		29,555,119	$	3	$	470,629	$	(206	)	$	(284,046	)	$	186,380
Issuances of common stock under employee stock plans		37,640		—		132		—			—			132
Stock-based compensation		—		—		2,702		—			—			2,702
Foreign currency translation loss		—		—		—		(201	)		—			(201	)
Unrealized loss on marketable securities		—		—		—		(710	)		—			(710	)
Net loss		—		—		—		—			(20,468	)		(20,468	)
Balance at March 31, 2022		29,592,759	$	3	$	473,463	$	(1,117	)	$	(304,514	)	$	167,835
Proceeds from sale of pre-funded warrants in private placement, net of issuance costs		—		—		49,784		—			—			49,784
Issuances of common stock under employee stock plans		56,698		—		654		—			—			654
Stock-based compensation		—		—		2,672		—			—			2,672
Foreign currency translation gain		—		—		—		550			—			550
Unrealized loss on marketable securities		—		—		—		(178	)		—			(178	)
Net loss		—		—		—		—			(19,184	)		(19,184	)
Balance at June 30, 2022		29,649,457	$	3	$	526,573	$	(745	)	$	(323,698	)	$	202,133
Issuances of common stock in “at the market” offerings, net of issuance costs		209,349		—		4,979		—			—			4,979
Proceeds from issuances of common stock under employee stock plans		27,356		—		272		—			—			272
Stock-based compensation		—		—		2,865		—			—			2,865
Foreign currency translation gain		—		—				366			—			366
Unrealized loss on marketable securities		—		—		—		(74	)		—			(74	)
Net loss		—		—		—		—			(21,235	)		(21,235	)
Balance at September 30, 2022		29,886,162	$	3	$	534,689	$	(453	)	$	(344,933	)	$	189,306


							Accumulated
					Additional		Other						Total
	Common Stock				Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares		Amount		Capital		Loss			Deficit			Equity
Balance at December 31, 2020		24,773,361	$	2	$	319,196	$	(177	)	$	(214,842	)	$	104,179
Issuances of common stock in “at the market” offerings, net of issuance costs		57,100		—		1,180		—			—			1,180
Issuances of common stock under employee stock plans		31,620		—		121		—			—			121
Stock-based compensation		—		—		2,687		—			—			2,687
Foreign currency translation gain		—		—		—		38			—			38
Unrealized loss on marketable securities		—		—		—		(50	)		—			(50	)
Net loss		—		—		—		—			(16,514	)		(16,514	)
Balance at March 31, 2021		24,862,081	$	2	$	323,184	$	(189	)	$	(231,356	)	$	91,641
Issuance of common stock from public offering, net of issuance costs		4,356,060		1		134,581		—			—			134,582
Issuances of common stock in “at the market” offerings, net of issuance costs		157,871				3,510								3,510
Issuances of common stock under employee stock plans		99,909		—		1,016		—			—			1,016
Stock-based compensation		—		—		2,888		—			—			2,888
Foreign currency translation gain		—		—		—		70			—			70
Unrealized loss on marketable securities		—		—		—		(18	)		—			(18	)
Net loss		—		—		—		—			(16,110	)		(16,110	)
Balance at June 30, 2021		29,475,921	$	3	$	465,179	$	(137	)	$	(247,466	)	$	217,579
Issuances of common stock under employee stock plans		37,833		—		472		—			—			472
Stock-based compensation		—		—		2,291		—			—			2,291
Foreign currency translation gain		—		—		—		173