UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
For the quarterly period ended
OR
For the transition period from _________ to ___________
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
England and Wales | |
(State or other jurisdiction of | (I.R.S. Employer |
Heatley Road | |
(Address of principal executive offices) | (Zip Code) |
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 |
The | ||
*American Depositary Shares may be evidenced by American Depositary Receipts. Each American Depositary Share represents one (1) ordinary share.
**Not for trading, but only in connection with the listing of American Depositary Shares on The 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.
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).
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 ☐ |
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
As of November 12, 2021, the registrant had
Table of Contents
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Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | |
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We own various trademark registrations and applications, and unregistered trademarks, including our name and our corporate logo. We have an exclusive license to use and display the Vaccitech registered trademark in order to commercialize Vaccitech in the United Kingdom. All other trade names, trademarks and service marks of other companies appearing in this prospectus are the property of their respective holders. Solely for convenience, the trademarks and trade names in this prospectus may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. We do not intend to use or display other companies’ trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
From time to time, we may use our website, our Facebook page at Facebook.com/Vaccitech, our Twitter account at @Vaccitechplc and our LinkedIn account at linkedin.com/company/Vaccitech-plc/to distribute material information. Our financial and other material information is routinely posted to and accessible on the Investors section of our website, available at www.vaccitech.co.uk. Investors are encouraged to review the Investors section of our website because we may post material information on that site that is not otherwise disseminated by us. Information that is contained in and can be accessed through our website, our Facebook page, our Twitter posts and our LinkedIn posts are not incorporated into, and does not form a part of, this Quarterly Report.
i
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Condensed Consolidated Financial Statements (Unaudited) | Page |
2 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss | 3 |
4 | |
6 | |
7 |
1
VACCITECH PLC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)
(UNAUDITED)
| September 30, |
| December 31, |
| |||
| 2021 |
| 2020 |
| |||
ASSETS |
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Current assets: |
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| |||
Cash and cash equivalents | $ | | $ | | |||
Accounts receivable |
| |
| | |||
Research and development incentives receivable |
| |
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Prepaid expenses and other current assets |
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Total current assets |
| |
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Property and equipment, net |
| |
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Right of use assets, net |
| |
| | |||
Deferred tax assets | | — | |||||
Other assets | | — | |||||
Total assets | $ | | $ | | |||
LIABILITIES, REDEEMABLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT | |||||||
Current liabilities: |
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| |||
Accounts payable | $ | | $ | | |||
Accrued expenses and other current liabilities |
| |
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Deferred revenue |
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Current portion of lease liability |
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Total current liabilities |
| |
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Convertible loan notes – non current |
| — |
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Lease liability – non current |
| |
| | |||
Total liabilities | $ | | $ | | |||
Commitments and contingencies (Note 11) |
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|
|
| |||
Series A redeemable convertible preferred shares (Series A shares); £ | $ | — | $ | | |||
Series B redeemable convertible preferred shares (Series B shares); £ | $ | — | $ | — | |||
Shareholders’ equity: |
|
|
|
| |||
Ordinary shares, £ |
| |
| | 1 | ||
Deferred A shares, £ |
| |
| — | |||
Deferred B shares, £ | | — | |||||
Deferred C shares, £0,000007 nominal value, |
| | 1 |
| | 1 | |
Additional paid-in capital |
| |
| | |||
Accumulated deficit |
| ( |
| ( | |||
Accumulated other comprehensive loss – foreign currency translation adjustments |
| ( |
| ( | |||
Noncontrolling interest |
| |
| | |||
Total shareholders’ equity | $ | | $ | ( | |||
Total liabilities, redeemable convertible preferred shares and shareholders’ equity | $ | | $ | |
1 indicates amount less than thousand
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
VACCITECH PLC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)
(UNAUDITED)
Three months ended | Nine months ended | |||||||||||
| September 30, 2021 |
| September 30, 2020 |
| September 30, 2021 |
| September 30, 2020 | |||||
License revenue | $ | | $ | | $ | | $ | | ||||
Service revenue |
| — |
| |
| |
| | ||||
Research grants and contracts |
| |
| |
| |
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Total revenue |
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Operating expenses |
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Research and development |
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General and administrative |
| |
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Total operating expenses |
| |
| |
| |
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Loss from operations |
| ( |
| ( |
| ( |
| ( | ||||
Other income (expense): |
|
|
|
| ||||||||
Change in fair value of derivatives |
| — |
| |
| |
| | ||||
Unrealized exchange gain on convertible loan notes |
| — |
| |
| |
| | ||||
Loss on extinguishment of convertible loan notes |
| — |
| — |
| ( |
| — | ||||
Interest income |
| — |
| — |
| |
| — | ||||
Interest expense |
| — |
| ( |
| ( |
| ( | ||||
Research and development incentives |
| |
| |
| |
| | ||||
Other | — | — | ( | — | ||||||||
Total other (expense) income |
| |
| |
| ( |
| | ||||
Tax (expense)/benefit |
| |
| — |
| |
| — | ||||
Net (loss)/ income |
| ( |
| |
| ( |
| ( | ||||
Net loss/ (income) attributable to noncontrolling interest |
| |
| ( |
| |
| | ||||
Net (loss)/ income attributable to Vaccitech plc Shareholders |
| ( |
| |
| ( |
| ( | ||||
Weighted-average ordinary shares outstanding, basic |
| |
| |
| |
| | ||||
Weighted-average ordinary shares outstanding, diluted | | | | | ||||||||
Net( loss)/ income per share attributable to ordinary shareholders, basic | $ | ( | $ | | $ | ( | $ | ( | ||||
Net (loss)/ income per share attributable to ordinary shareholders, diluted | $ | ( | $ | | $ | ( | $ | ( | ||||
Net (loss)/ income | $ | ( | $ | | $ | ( | $ | ( | ||||
Other comprehensive (loss)/ income – foreign currency translation adjustments |
| ( |
| |
| ( |
| ( | ||||
Comprehensive (loss)/ income |
| ( |
| |
| ( |
| ( | ||||
Comprehensive loss/ (income) attributable to noncontrolling interest |
| |
| ( |
| |
| | ||||
Comprehensive (loss)/ income attributable to Vaccitech plc shareholders | $ | ( | $ | | $ | ( | $ | ( |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
VACCITECH PLC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED SHARES
AND SHAREHOLDERS’ EQUITY (DEFICIT)
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
(UNAUDITED)
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | ||||||||||||||||||||||||||||||||||||||||||||||
Redeemable | Redeemable | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred | Convertible | Additional | Other | Total | |||||||||||||||||||||||||||||||||||||||||||
Shares | Preferred Shares | Ordinary Shares | Deferred A Shares | Deferred B Shares | Deferred C Shares | Paid-in- | Accumulated | Comprehensive | Noncontrolling | Shareholders’ | |||||||||||||||||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
|
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| capital |
| Deficit |
| Loss |
| Interest |
| (Deficit)/Equity | |||||||||||||
Balance, January 1, 2021, as previously reported |
| | $ | |
| | $ | |
| | $ | | 1 | | $ | | | $ | | | $ | | 1 | $ | | $ | ( | $ | ( | $ | | $ | ( | ||||||||||||||
Share-based compensation – restatement (see note 1) | — | — | — | — | — | — | — | — | — | — | — | — | | ( | — | — | $ | — | |||||||||||||||||||||||||||||
Balance, January 1, 2021, as restated | | $ | | — | $ | — | | $ | | 1 | — | $ | — | — | $ | — | | $ | | 1 | $ | | $ | ( | $ | ( | $ | | $ | ( | |||||||||||||||||
Share-based compensation |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | — |
| — | — |
| — |
| |
| — |
| — |
| — |
| | |||||||||||||||
Issue of Series B shares, net of issuance costs |
| — |
| — |
| |
| |
| — |
| — |
| — |
| — | — |
| — | — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||||||||
Series B Shares issued on conversion of convertible notes |
| — |
| — |
| |
| |
| — |
| — |
| — |
| — | — |
| — | — |
| — |
| — |
| — |
| — |
| — |
| — | |||||||||||||||
Issue of Deferred A shares |
| — |
| ( |
| — |
| ( |
| — |
| — |
| |
| | — |
| — | — |
| — |
| — |
| — |
| — |
| — |
| | |||||||||||||||
Issue of ordinary shares |
| — |
| — |
| — |
| — |
| |
| | 1 | — |
| — | — |
| — | |
| | 1 |
| — |
| — |
| — |
| — |
| | 1 | |||||||||||||
Foreign currency translation adjustments |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — | — |
| — | — |
| — |
| — |
| — |
| ( |
| |
| ( | |||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | | 1 | $ | | $ | | $ | | 1 | $ | $ | ( | $ | ( | $ | | $ | ( | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | | — | — | — | | ||||||||||||||||||||||||||||||
Initial public offering, net of underwriting discounts | — | — | — | — | | | 1 | — | — | — | — | — | — | | — | — | — | | |||||||||||||||||||||||||||||
Offering Cost | — | — | — | — | — | — | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||
Conversion of Series A shares | ( | ( | — | — | | | 1 | — | — | | | | | 1 | | — | — | — | | ||||||||||||||||||||||||||||
Conversion of Series B shares | — | — | ( | ( | | | 1 | — | — | | | | | 1 | | — | — | — | | ||||||||||||||||||||||||||||
Issue of share to non-controlling interest | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||
Balance, June 30, 2021 | — | $ | — | — | $ | — | | $ | | | $ | | | $ | | | $ | | 1 | $ | | $ | ( | $ | ( | $ | | $ | | ||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | — | | — | — | — | | ||||||||||||||||||||||||||||||
Offering cost refund | — | — | — | — | — | — | — | — | — | — | — | — | | — | — | — | | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||
Balance, September 30, 2021 | — | $ | — | — | $ | — | | $ | | | $ | | | $ | | | $ | | 1 | $ | | $ | ( | $ | ( | $ | | $ | |
1 Indicates amount less than thousand
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
4
VACCITECH PLC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED SHARES
AND SHAREHOLDERS’ EQUITY (DEFICIT)
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)
(UNAUDITED)
Nine months ended September 30, 2020 |
| ||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B |
| |||||||||||||||||||||||||||||||||||||||||||||
Redeemable | Redeemable | Accumulated |
| ||||||||||||||||||||||||||||||||||||||||||||
Convertible Preferred | Convertible | Additional | Other | Total |
| ||||||||||||||||||||||||||||||||||||||||||
Shares | Preferred Shares | Ordinary Shares | Deferred A Shares | Deferred B Shares | Deferred C Shares | Paid-in- | Accumulated | Comprehensive | Noncontrolling | Shareholders’ | |||||||||||||||||||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| capital |
| Deficit |
| Loss |
| Interest |
| Deficit |
| |||||||||||||
Balance, January 1, 2020, as previously reported |
| | $ | |
| | $ | |
| | $ | | 1 | | $ | | | $ | | | $ | | 1 | $ | | $ | ( |