10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

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: 001-40908

 

MiNK Therapeutics, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

82-2142067

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

149 Fifth Avenue

Suite 500

New York, NY

10010

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: 212-994-8250

 

 

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, par value $0.00001 per share

 

INKT

 

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 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, 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

 

 

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 October 31, 2022, the registrant had 33,785,929 shares of common stock, $0.00001 par value per share, outstanding.

 

 

 

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

1

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021

2

 

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2022 and 2021

3

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021

5

 

Notes to Unaudited Interim Condensed Consolidated Financial Statements

6

Item 2.

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

11

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

17

Item 4.

Controls and Procedures

17

 

 

 

PART II.

OTHER INFORMATION

18

 

 

 

Item 1.

Legal Proceedings

18

Item 1A.

Risk Factors

18

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

18

Item 6.

Exhibits

19

 

Signatures

20

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,158,587

 

 

$

38,888,828

 

Prepaid expenses

 

 

262,870

 

 

 

1,761

 

Other current assets

 

 

37,520

 

 

 

744,321

 

Total current assets

 

 

24,458,977

 

 

 

39,634,910

 

Equipment, net of accumulated depreciation of $232,756 and $168,605 at
   September 30, 2022 and December 31, 2021, respectively

 

 

803,128

 

 

 

606,595

 

Total assets

 

$

25,262,105

 

 

$

40,241,505

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Accounts payable

 

$

5,171,551

 

 

$

2,995,645

 

Accrued liabilities

 

 

2,832,389

 

 

 

1,763,688

 

Other current liabilities

 

 

2,086,899

 

 

 

5,760,609

 

Due to related parties

 

 

8,356,849

 

 

 

5,945,094

 

Total current liabilities

 

 

18,447,688

 

 

 

16,465,036

 

Other long-term liabilities

 

 

58,280

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Common stock, par value $0.00001 per share; 150,000,000 shares authorized;
   
33,785,929 and 33,476,523 shares issued at September 30, 2022
   and December 31, 2021, respectively

 

 

338

 

 

 

335

 

Additional paid-in capital

 

 

110,003,410

 

 

 

107,349,265

 

Accumulated other comprehensive loss

 

 

(78,276

)

 

 

(625,269

)

Accumulated deficit

 

 

(103,169,335

)

 

 

(82,947,862

)

Total stockholders’ equity

 

 

6,756,137

 

 

 

23,776,469

 

Total liabilities and stockholders’ equity

 

$

25,262,105

 

 

$

40,241,505

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

1


 

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

6,149,778

 

 

$

3,334,126

 

 

$

17,303,205

 

 

$

10,016,449

 

General and administrative

 

 

1,837,571

 

 

 

814,881

 

 

 

5,756,864

 

 

 

2,277,759

 

Change in fair value of convertible affiliated note

 

 

 

 

 

9,227,427

 

 

 

 

 

 

9,702,863

 

Operating loss

 

 

(7,987,349

)

 

 

(13,376,434

)

 

 

(23,060,069

)

 

 

(21,997,071

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

92,960

 

 

 

(881,323

)

 

 

118,488

 

 

 

(2,430,067

)

Gain on extinguishment of debt

 

 

 

 

 

355,515

 

 

 

 

 

 

355,515

 

Other income (expense), net

 

 

1,562,759

 

 

 

(364,844

)

 

 

2,720,108

 

 

 

(376,819

)

Net loss

 

$

(6,331,630

)

 

$

(14,267,086

)

 

$

(20,221,473

)

 

$

(24,448,442

)

Per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share

 

$

(0.19

)

 

$

(0.59

)

 

$

(0.60

)

 

$

(1.01

)

Weighted average number of common shares outstanding

 

 

33,757,164

 

 

 

24,205,446

 

 

 

33,627,954

 

 

 

24,186,794

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

$

(1,375,464

)

 

$

546,111

 

 

$

546,993

 

 

$

733,702

 

Comprehensive loss

 

$

(7,707,094

)

 

$

(13,720,975

)

 

$

(19,674,480

)

 

$

(23,714,740

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

2


 

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Number of
Shares

 

 

Par
Value

 

 

Additional
Paid-In
Capital

 

 

Number of
Shares

 

 

Par
Value

 

 

Other
Comprehensive
Income (Loss)

 

 

Accumulated
Deficit

 

 

Total

 

Balance at December 31, 2021

 

 

33,476,523

 

 

$

335

 

 

$

107,349,265

 

 

 

 

 

$

 

 

$

(625,269

)

 

$

(82,947,862

)

 

 

23,776,469

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,777,101

)

 

 

(7,777,101

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

522,771

 

 

 

 

 

 

522,771

 

Option exercises

 

 

84,391

 

 

 

1

 

 

 

688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

689

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

741,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

741,773

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

43,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,733

 

Balance at March 31, 2022

 

 

33,560,914

 

 

$

336

 

 

$

108,135,459

 

 

 

 

 

$

 

 

$

(102,498

)

 

$

(90,724,963

)

 

$

17,308,334

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,112,742

)

 

 

(6,112,742

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,399,686

 

 

 

 

 

 

1,399,686

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

796,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

796,924

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

3,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,886

 

Option exercises

 

 

48,118

 

 

 

 

 

 

301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

301

 

Forfeiture of restricted stock

 

 

(20,872

)

 

 

 

 

 

(75

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(75

)

Issuance of shares for employee bonuses

 

 

125,199

 

 

 

1

 

 

 

293,523

 

 

 

(43,665

)

 

 

(157,194

)

 

 

 

 

 

 

 

 

136,330

 

Retirement of treasury shares

 

 

(43,665

)

 

 

 

 

 

 

 

 

43,665

 

 

 

157,194

 

 

 

 

 

 

 

 

 

157,194

 

Balance at June 30, 2022

 

 

33,669,694

 

 

$

337

 

 

$

109,230,018

 

 

 

 

 

$

 

 

$

1,297,188

 

 

$

(96,837,705

)

 

$

13,689,838

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,331,630

)

 

 

(6,331,630

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,375,464

)

 

 

 

 

 

(1,375,464

)

Grant and recognition of stock options

 

 

 

 

 

 

 

 

745,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

745,880

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

27,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,019

 

Option exercises

 

 

116,235

 

 

 

1

 

 

 

493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

494

 

Balance at September 30, 2022

 

 

33,785,929

 

 

$

338

 

 

$

110,003,410

 

 

 

 

 

$

 

 

$

(78,276

)

 

$

(103,169,335

)

 

$

6,756,137

 

 

3


 

MINK THERAPEUTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

 

 

 

Common Stock

 

 

 

 

 

Treasury Stock

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Number of
Shares

 

 

Par
Value

 

 

Additional
Paid-In
Capital

 

 

Number of
Shares

 

 

Par
Value

 

 

Other
Comprehensive
Income (Loss)

 

 

Accumulated
Deficit

 

 

Total

 

Balance at December 31, 2020

 

 

24,177,315

 

 

$

242

 

 

$

383,711

 

 

 

 

 

$

 

 

$

(1,523,038

)

 

$

(52,735,092

)

 

$

(53,874,177

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,846,194

)

 

 

(3,846,194

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

353,305

 

 

 

 

 

 

353,305

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

263,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263,081

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

19,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,949

 

Balance at March 31, 2021

 

 

24,177,315

 

 

$

242

 

 

$

666,741

 

 

 

 

 

$

 

 

$

(1,169,733

)

 

$

(56,581,286

)

 

$

(57,084,036

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,335,162

)

 

 

(6,335,162

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165,714

)

 

 

 

 

 

(165,714

)

Grant and recognition of stock options

 

 

 

 

 

 

 

 

356,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

356,097

 

Recognition of parent stock options

 

 

 

 

 

 

 

 

51,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,206

 

Balance at June 30, 2021

 

 

24,177,315

 

 

$

242

 

 

$

1,074,044

 

 

 

 

 

$

 

 

$

(1,335,447

)

 

$

(62,916,448

)

 

$

(63,177,609

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,267,086

)

 

 

(14,267,086

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

546,111

 

 

 

 

 

 

546,111

 

Grant and recognition of stock options

 

 

 

 

 

 

 

 

365,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

365,760

 

Recognition of parent stock options