plrx-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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, 2020

 

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: 001-39303

PLIANT THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

47-4272481

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

260 Littlefield Avenue

 

 

South San Francisco, CA

 

94080

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (650) 481-6770

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

 

Title of Each Class of Securities Registered

Trading

Symbol

Name of Each Exchange on which Securities are Registered

Common Stock, par value $0.0001 per share

PLRX

The Nasdaq Global Select 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 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 As of November 7, 2020, the registrant had 35,479,853 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 

 


Table of Contents

 

PART I.

FINANCIAL INFORMATION

 

3

 

 

 

 

 

 

Item 1.

Financial Statements

 

3

 

 

Condensed Balance Sheets as September 30, 2020 (Unaudited) and December 31, 2019

 

3

 

 

Condensed Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019 (Unaudited)

 

4

 

 

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2020 and 2019 (Unaudited)

 

5

 

 

Condensed Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (Unaudited)

 

7

 

 

Notes to Condensed Financial Statements (Unaudited)

 

8

 

Item 2.

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

 

29

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

40

 

Item 4.

Controls and Procedures

 

41

 

 

 

 

 

 

PART II.

Other Information

 

42

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

42

 

Item 1A.

Risk Factors

 

42

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

85

 

Item 3.

Defaults Upon Senior Securities

 

85

 

Item 4.

Mine Safety Disclosures

 

85

 

Item 5.

Other Information

 

85

 

Item 6.

Exhibits

 

86

 

 

 

 

 

 

Signatures

 

 

87

 

 

 

 

 

2


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Pliant Therapeutics, Inc.

Condensed Balance Sheets

(Unaudited)

(In thousands, except number of shares and per share amounts)

 

 

 

September 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,224

 

 

$

85,807

 

Short-term investments

 

 

238,776

 

 

 

16,966

 

Accounts receivable

 

 

7,131

 

 

 

7,052

 

Tax credit receivable

 

 

83

 

 

 

333

 

Prepaid expenses and other current assets

 

 

6,515

 

 

 

1,742

 

Total current assets

 

 

307,729

 

 

 

111,900

 

Property and equipment, net

 

 

4,144

 

 

 

4,079

 

Other non-current assets

 

 

451

 

 

 

3,085

 

Total assets

 

$

312,324

 

 

$

119,064

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,140

 

 

$

1,250

 

Accrued liabilities (Note 5)

 

 

7,886

 

 

 

6,922

 

Total current liabilities

 

 

11,026

 

 

 

8,172

 

Other long-term liabilities (Note 5)

 

 

952

 

 

 

912

 

Total liabilities

 

 

11,978

 

 

 

9,084

 

Commitments and Contingencies (Note 13)

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 10,000,000 shares and 0 shares

   authorized at September 30, 2020 and December 31, 2019, respectively;

   0 shares issued and outstanding at September 30, 2020

   and December 31, 2019;

 

 

 

 

 

 

Series A redeemable convertible preferred stock, $0.0001 par value;

   0 and 56,000,000 shares authorized at September 30, 2020

   and December 31, 2019, respectively; 0 and 56,000,000 shares

   issued and outstanding, at September 30, 2020 and December 31, 2019,

   respectively; aggregate liquidation preference of $0 and

   $62,468 at September 30, 2020 and December 31, 2019, respectively;

 

 

 

 

 

62,468

 

Series B redeemable convertible preferred stock, $0.0001 par value;

   0 shares and 49,501,221 shares authorized at September 30, 2020 and

   December 31, 2019, respectively; 0 shares and 49,501,221 shares

   issued and outstanding at September 30, 2020 and December 31, 2019,

   respectively; aggregate liquidation preference of $0 and $75,860

   at September 30, 2020 and December 31, 2019, respectively;

 

 

 

 

 

75,860

 

Series C redeemable convertible preferred stock, $0.0001 par value;

   0 shares and 44,000,000 shares authorized at September 30, 2020 and

   December 31, 2019, respectively; 0 shares and 26,360,745 shares

   issued and outstanding at September 30, 2020 and December 31, 2019,

   respectively; aggregate liquidation preference of $0 and $47,947

   at September 30, 2020 and December 31, 2019,  respectively;

 

 

 

 

 

47,947

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 300,000,000 and 181,000,000 shares authorized

   at September 30, 2020 and December 31, 2019; and 35,465,715 and 1,846,024 shares

   issued and outstanding at September 30, 2020 and December 31, 2019, respectively;

 

 

3

 

 

 

1

 

Additional paid-in capital

 

 

399,162

 

 

 

 

Accumulated deficit

 

 

(98,801

)

 

 

(76,295

)

Accumulated other comprehensive loss

 

 

(18

)

 

 

(1

)

Total stockholders’ equity (deficit)

 

 

300,346

 

 

 

(76,295

)

Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

 

$

312,324

 

 

$

119,064

 

 

*

The condensed balance sheet as of December 31, 2019 has been derived from the audited financial statements as of that date.

The accompanying notes are an integral part of these condensed financial statements  

3


Pliant Therapeutics, Inc.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except number of shares and per share amounts)

 

  

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue — related party

 

$

4,814

 

 

$

 

 

$

37,352

 

 

$

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

(16,884

)

 

 

(10,779

)

 

 

(48,339

)

 

 

(35,626

)

General and administrative

 

 

(4,591

)

 

 

(2,583

)

 

 

(11,642

)

 

 

(7,827

)

Total operating expenses

 

 

(21,475

)

 

 

(13,362

)

 

 

(59,981

)

 

 

(43,453

)

Loss from operations

 

 

(16,661

)

 

 

(13,362

)

 

 

(22,629

)

 

 

(43,453

)

Interest income

 

 

72

 

 

 

148

 

 

 

392

 

 

 

701

 

Other income (expense), net

 

 

55

 

 

 

(41

)

 

 

(269

)

 

 

(48

)

Net loss

 

$

(16,534

)

 

$

(13,255

)

 

$

(22,506

)

 

$

(42,800

)

Accretion to redemption value and cumulative dividends on

   redeemable convertible preferred stock

 

 

 

 

 

(1,375

)

 

 

 

 

 

(4,078

)

Net loss attributable to common stockholders

 

$

(16,534

)

 

$

(14,630

)

 

$

(22,506

)

 

$

(46,878

)

Net loss per share, attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.47

)

 

$

(8.53

)

 

$

(1.36

)

 

$

(30.03

)

Diluted

 

$

(0.47

)

 

$

(8.53

)

 

$

(1.36

)

 

$

(30.03

)

Shares used in computing net loss per share attributable

   to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,445,504

 

 

 

1,714,285

 

 

 

16,592,746

 

 

 

1,561,242

 

Diluted

 

 

35,445,504

 

 

 

1,714,285

 

 

 

16,592,746

 

 

 

1,561,242

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(16,534

)

 

$

(13,255

)

 

$

(22,506

)

 

$

(42,800

)

Net unrealized gain (loss) on short-term investments

 

$

12

 

 

$

(10

)

 

$

(17

)

 

$

1

 

Total other comprehensive income (loss)

 

 

12

 

 

 

(10

)

 

 

(17

)

 

 

1

 

Comprehensive loss

 

$

(16,522

)

 

$

(13,265

)

 

$

(22,523

)

 

$

(42,799

)

 

The accompanying notes are an integral part of these condensed financial statements.

 

4


 

Pliant Therapeutics, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

(In thousands, except number of shares and per share amounts)

 

 

 

Redeemable Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Series A

 

 

Series B

 

 

Series C

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain (Loss)

 

 

Deficit

 

 

Equity (Deficit)

 

Balance at December 31, 2019

 

 

56,000,000

 

 

$

62,468

 

 

 

49,501,221

 

 

$

75,860

 

 

 

26,360,745

 

 

$

47,947

 

 

 

 

1,846,024

 

 

$

1

 

 

$

 

 

$

(1

)

 

$

(76,295

)

 

$

(76,295

)

Issuance of Series C redeemable

   preferred stock, net of issuance

   costs of $167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,527,313

 

 

 

52,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of founders’ common

   stock and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,093

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

4

 

Option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,252

 

 

 

 

 

 

26

 

 

 

 

 

 

 

 

 

26

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

425

 

 

 

 

 

 

 

 

 

425

 

Net unrealized gain on

   short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

 

60

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,029

 

 

 

11,029

 

Balance at March 31, 2020

 

 

56,000,000

 

 

$

62,468

 

 

 

49,501,221

 

 

$

75,860

 

 

 

54,888,058

 

 

$

99,985

 

 

 

 

1,906,349

 

*

$

1

 

 

$

455

 

 

$

59

 

 

$

(65,266

)

 

$

(64,751

)

Issuance of common stock upon

   initial public offering, net of

   issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,350,000

 

 

1

 

 

 

148,399

 

 

 

 

 

 

 

 

 

148,400

 

Issuance of common stock upon

   private placement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

625,000

 

 

 

 

 

 

10,000

 

 

 

 

 

 

 

 

 

10,000

 

Vesting of founders’ common

   stock and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,102

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73,719

 

 

 

 

 

177

 

 

 

 

 

 

 

 

 

177

 

Conversion of Series A, B, C

   convertible preferred stock to

   common stock

 

 

(56,000,000

)

 

 

(62,468

)

 

 

(49,501,221

)

 

 

(75,860

)

 

 

(54,888,058

)

 

 

(99,985

)

 

 

 

22,432,029

 

 

1

 

 

 

238,292

 

 

 

 

 

 

 

 

 

238,293

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

786

 

 

 

 

 

 

 

 

 

786

 

Net unrealized loss on

   short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(89

)

 

 

 

 

 

(89

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,001

)

 

 

(17,001

)

Balance, June 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

35,427,199

 

 

$

3

 

 

$

398,110

 

 

$

(30

)

 

$

(82,267

)

 

$

315,816

 

Additional issuance costs related to

   initial public offering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(123

)

 

 

 

 

 

 

 

 

(123

)

Vesting of founders’ common

   stock and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,058

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

458

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,169

 

 

 

 

 

 

 

 

 

1,169

 

Net unrealized gain on

   short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

 

 

 

 

 

12

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,534

)

 

 

(16,534

)

Balance, September 30, 2020

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

35,465,715

 

 

$

3

 

 

$

399,162

 

 

$

(18

)

 

$

(98,801

)

 

$

300,346

 

 

*

Common stock share amounts do not add up due to rounding.

The accompanying notes are an integral part of these condensed financial statements.

5


Pliant Therapeutics, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

(In thousands, except number of shares and per share amounts)

 

 

 

Redeemable Convertible Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Series A

 

 

Series B

 

 

Series C

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain

 

 

Deficit

 

 

Deficit

 

Balance at December 31, 2018

 

 

56,000,000

 

 

$

61,516

 

 

 

49,501,221

 

 

$

70,587

 

 

 

 

 

$

 

 

 

 

1,363,000

 

 

$

1

 

 

$

 

 

$

 

 

$

(71,470

)

 

$

(71,469

)

Vesting of founders’ common

   stock and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126,057

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

8

 

Accretion to redemption value

   and cumulative dividends on

   redeemable convertible

   preferred stock

 

 

 

 

 

 

 

 

 

 

 

1,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(320

)

 

 

 

 

 

(1,024

)

 

 

(1,344

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

312

 

 

 

 

 

 

 

 

 

312

 

Net unrealized gain on short-

   term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,023

)

 

 

(14,023

)

Balance at March 31, 2019

 

 

56,000,000

 

 

$

61,516

 

 

 

49,501,221

 

 

$

71,931

 

 

 

 

 

$

 

 

 

 

1,489,057

 

 

$

1

 

 

$

 

 

$

3

 

 

$

(86,517

)

 

$

(86,513

)

Vesting of founders’ common

   stock and restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

139,363

 

 

 

 

 

 

9