false Q3 2020 0001720580 --12-31 P5Y
2014-11-30 0 P5Y P3Y P3Y P3Y P3Y P7Y P5Y10M9D P6Y7M13D P6Y6M25D
P6Y8M26D 81.1 82.1 82.1 93.3 0.35 0.42 1.80 1.81 P6Y7M20D P5Y11M8D
P8Y6M10D P7Y8M23D P4Y11M12D P7Y8M23D 0001720580 2020-01-01
2020-09-30 xbrli:shares 0001720580 2020-11-03 iso4217:USD
0001720580 2020-09-30 0001720580 2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-12-31
iso4217:USD xbrli:shares 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2020-09-30
0001720580 2020-07-01 2020-09-30 0001720580 2019-07-01 2019-09-30
0001720580 2019-01-01 2019-09-30 0001720580
us-gaap:CommonStockMember 2019-12-31 0001720580
us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001720580
us-gaap:RetainedEarningsMember 2019-12-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31
0001720580 us-gaap:CommonStockMember 2020-01-01 2020-03-31
0001720580 us-gaap:AdditionalPaidInCapitalMember 2020-01-01
2020-03-31 0001720580 2020-01-01 2020-03-31 0001720580
us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01
2020-03-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2020-03-31
0001720580 us-gaap:CommonStockMember 2020-03-31 0001720580
us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001720580
us-gaap:RetainedEarningsMember 2020-03-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31
0001720580 2020-03-31 0001720580 us-gaap:CommonStockMember
2020-04-01 2020-06-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30
0001720580 2020-04-01 2020-06-30 0001720580
us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01
2020-06-30 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2020-06-30
0001720580 us-gaap:CommonStockMember 2020-06-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001720580
us-gaap:RetainedEarningsMember 2020-06-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30
0001720580 2020-06-30 0001720580 us-gaap:CommonStockMember
2020-07-01 2020-09-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
2020-07-01 2020-09-30 0001720580 us-gaap:RetainedEarningsMember
2020-07-01 2020-09-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01
2020-09-30 0001720580 us-gaap:CommonStockMember 2020-09-30
0001720580 us-gaap:AdditionalPaidInCapitalMember 2020-09-30
0001720580 us-gaap:RetainedEarningsMember 2020-09-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
2018-12-31 0001720580 us-gaap:CommonStockMember 2018-12-31
0001720580 us-gaap:AdditionalPaidInCapitalMember 2018-12-31
0001720580 us-gaap:RetainedEarningsMember 2018-12-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31
0001720580 2018-12-31 0001720580 us-gaap:RetainedEarningsMember
2019-01-01 2019-03-31 0001720580 2019-01-01 2019-03-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-01-01
2019-03-31 0001720580 us-gaap:CommonStockMember 2019-01-01
2019-03-31 0001720580 us-gaap:AdditionalPaidInCapitalMember
2019-01-01 2019-03-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01
2019-03-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-03-31
0001720580 us-gaap:CommonStockMember 2019-03-31 0001720580
us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001720580
us-gaap:RetainedEarningsMember 2019-03-31 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31
0001720580 2019-03-31 0001720580 us-gaap:RetainedEarningsMember
2019-04-01 2019-06-30 0001720580 2019-04-01 2019-06-30 0001720580
us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30
0001720580 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-04-01 2019-06-30 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-06-30
0001720580 us-gaap:CommonStockMember 2019-06-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001720580
us-gaap:RetainedEarningsMember 2019-06-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30
0001720580 2019-06-30 0001720580 us-gaap:RetainedEarningsMember
2019-07-01 2019-09-30 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-07-01
2019-09-30 0001720580 us-gaap:CommonStockMember 2019-07-01
2019-09-30 0001720580 us-gaap:AdditionalPaidInCapitalMember
2019-07-01 2019-09-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01
2019-09-30 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember 2019-09-30
0001720580 us-gaap:CommonStockMember 2019-09-30 0001720580
us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001720580
us-gaap:RetainedEarningsMember 2019-09-30 0001720580
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30
0001720580 2019-09-30 0001720580
acet:SeriesBRedeemableConvertiblePreferredStockMember 2019-07-01
2019-09-30 0001720580
acet:SeriesBRedeemableConvertiblePreferredStockMember 2019-01-01
2019-09-30 xbrli:pure 0001720580 acet:AdicetTherapeuticsIncMember
2020-09-30 0001720580 2020-09-14 2020-09-15 0001720580 2020-09-15
2020-09-15 0001720580 acet:ResTORbioMember 2020-09-15 2020-09-15
0001720580 acet:ResTORbioMember us-gaap:CommonStockMember
2020-09-15 0001720580 2020-09-15 0001720580 acet:ResTORbioMember
2020-09-15 0001720580 acet:ResTORbioMember 2020-09-30 0001720580
acet:ResTORbioMember 2020-07-01 2020-09-30 0001720580
acet:ResTORbioMember 2020-01-01 2020-09-30 0001720580
acet:ResTORbioMember 2019-07-01 2019-09-30 0001720580
acet:ResTORbioMember 2019-01-01 2019-09-30 0001720580
acet:ResTORbioMember acet:TransitionAgreementMember 2020-04-28
0001720580 acet:ResTORbioMember acet:TransitionAgreementMember
2020-04-27 2020-04-28 0001720580 acet:TransitionAgreementMember
2020-04-28 0001720580 acet:TransitionAgreementMember 2020-04-27
2020-04-28 0001720580 us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
acet:MarketableSecuritiesMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:AssetBackedSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CorporateDebtSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
acet:MarketableSecuritiesMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CashEquivalentsMember us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CommercialPaperMember us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CashEquivalentsMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:CommercialPaperMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
acet:ContingentConsiderationMember
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
acet:ContingentConsiderationMember
us-gaap:FairValueMeasurementsRecurringMember 2020-09-30 0001720580
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:AssetBackedSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-12-31
0001720580 us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
acet:MarketableSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:AssetBackedSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-12-31
0001720580 us-gaap:FairValueMeasurementsRecurringMember
acet:MarketableSecuritiesMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:MoneyMarketFundsMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel1Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashEquivalentsMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel2Member
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CommercialPaperMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:MoneyMarketFundsMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CashEquivalentsMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
us-gaap:CommercialPaperMember 2019-12-31 0001720580
us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember
acet:RedeemableConvertiblePreferredStockWarrantsMember 2019-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001720580
us-gaap:FairValueMeasurementsRecurringMember
acet:RedeemableConvertiblePreferredStockWarrantsMember 2019-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockTrancheLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2018-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
acet:TRDFLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2018-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2018-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockTrancheLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-01-01
2019-09-30 0001720580 us-gaap:FairValueInputsLevel3Member
acet:TRDFLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-01-01
2019-09-30 0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-01-01
2019-09-30 0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockTrancheLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-09-30
0001720580 us-gaap:FairValueInputsLevel3Member
acet:TRDFLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-09-30
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-09-30
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2019-12-31
0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2020-01-01
2020-09-30 0001720580 us-gaap:FairValueInputsLevel3Member
acet:RedeemableConvertiblePreferredStockWarrantLiabilityMember
us-gaap:ChangeDuringPeriodFairValueDisclosureMember 2020-09-30
0001720580 us-gaap:AssetBackedSecuritiesMember 2020-09-30
0001720580 us-gaap:CorporateDebtSecuritiesMember 2020-09-30
0001720580 us-gaap:CommercialPaperMember 2020-09-30 0001720580
us-gaap:AssetBackedSecuritiesMember 2019-12-31 0001720580
us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001720580
us-gaap:CommercialPaperMember 2019-12-31 0001720580
us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-12-31
0001720580 acet:LaboratoryEquipmentMember 2020-09-30 0001720580
acet:LaboratoryEquipmentMember 2019-12-31 0001720580
us-gaap:LeaseholdImprovementsMember 2020-09-30 0001720580
us-gaap:LeaseholdImprovementsMember 2019-12-31 0001720580
us-gaap:FurnitureAndFixturesMember 2020-09-30 0001720580
us-gaap:FurnitureAndFixturesMember 2019-12-31 0001720580
us-gaap:ConstructionInProgressMember 2020-09-30 0001720580
us-gaap:ConstructionInProgressMember 2019-12-31 0001720580
us-gaap:ComputerEquipmentMember 2020-09-30 0001720580
us-gaap:ComputerEquipmentMember 2019-12-31 0001720580
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-09-30
0001720580 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2019-12-31 0001720580 acet:LaboratoryEquipmentMember 2020-01-01
2020-09-30 0001720580 us-gaap:LeaseholdImprovementsMember
2020-01-01 2020-09-30 0001720580 us-gaap:FurnitureAndFixturesMember
2020-01-01 2020-09-30 0001720580 us-gaap:ComputerEquipmentMember
2020-01-01 2020-09-30 0001720580
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-01-01
2020-09-30 0001720580 srt:MaximumMember 2020-04-28 0001720580
srt:MinimumMember us-gaap:PrimeRateMember 2020-04-28 0001720580
us-gaap:SeriesBPreferredStockMember 2020-04-28 0001720580
us-gaap:SeriesBPreferredStockMember srt:MaximumMember 2020-04-28
0001720580 us-gaap:CommonStockMember 2020-04-28 0001720580
srt:MaximumMember us-gaap:CommonStockMember 2020-04-28 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2016-07-28
2016-07-29 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember srt:MaximumMember
2016-07-28 2016-07-29 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2020-04-01
2020-06-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2019-07-01
2019-09-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2020-07-01
2020-09-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2020-01-01
2020-09-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2019-01-01
2019-09-30 0001720580 acet:ContractLiabilityMember 2019-12-31
0001720580 acet:ContractAssetMember 2020-01-01 2020-09-30
0001720580 acet:ContractLiabilityMember 2020-01-01 2020-09-30
0001720580 acet:ContractLiabilityMember 2020-09-30 0001720580
acet:ContractLiabilityMember 2018-12-31 0001720580
acet:ContractLiabilityMember 2019-01-01 2019-09-30 0001720580
acet:ContractLiabilityMember 2019-09-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2018-01-01
2018-12-31 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2017-01-01
2017-12-31 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2020-01-01
2020-06-30 0001720580 acet:NovartisLicenseAgreementMember
acet:NovartisInternationalPharmaceuticalLimitedMember 2020-01-01
2020-09-30 0001720580 acet:NovartisLicenseAgreementMember
srt:MaximumMember
acet:NovartisInternationalPharmaceuticalLimitedMember 2017-03-23
0001720580 acet:NationalInstitutesOfHealthMember 2019-05-01
2019-05-31 0001720580 acet:NationalInstitutesOfHealthMember
2019-05-31 0001720580 acet:NationalInstitutesOfHealthMember
acet:ResearchFundingAgreementMember 2020-01-01 2020-09-30
0001720580 acet:NationalInstitutesOfHealthMember 2020-01-01
2020-09-30 acet:Right 0001720580 acet:COVID19Member
acet:ContingentValueRightsAgreementMember 2020-01-01 2020-09-30
0001720580 acet:MenloParkLeaseAgreementMember 2020-09-30 0001720580
acet:RedwoodCityLeaseAgreementMember 2018-12-31 0001720580
acet:BostonMember 2020-09-30 acet:Lawsuit 0001720580
srt:MaximumMember 2020-01-01 2020-09-30 0001720580
acet:PutativeCalssMember 2020-01-01 2020-09-30 0001720580
acet:SeriesARedeemableConvertiblePreferredStockMember 2019-12-31
0001720580 acet:SeriesA1RedeemableConvertiblePreferredStockMember
2019-12-31 0001720580
acet:SeriesA2RedeemableConvertiblePreferredStockMember 2019-12-31
0001720580 acet:SeriesBRedeemableConvertiblePreferredStockMember
2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember 2020-09-30 0001720580
acet:SeriesBWarrantsMember 2019-12-31 0001720580
acet:SeriesBWarrantsMember srt:MaximumMember 2020-07-01 2020-09-30
0001720580 acet:SeriesBWarrantsMember srt:MaximumMember 2020-01-01
2020-09-30 0001720580 acet:SeriesBWarrantsMember srt:MaximumMember
2019-07-01 2019-09-30 0001720580 acet:SeriesBWarrantsMember
srt:MaximumMember 2019-01-01 2019-09-30 0001720580
us-gaap:MeasurementInputSharePriceMember 2020-09-14 0001720580
us-gaap:MeasurementInputSharePriceMember 2020-04-28 0001720580
us-gaap:MeasurementInputSharePriceMember 2019-12-31 0001720580
us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember
2020-09-14 0001720580 us-gaap:MeasurementInputExpectedTermMember
srt:MaximumMember 2020-09-14 0001720580
us-gaap:MeasurementInputExpectedTermMember 2020-04-28 0001720580
us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember
2019-12-31 0001720580 us-gaap:MeasurementInputExpectedTermMember
srt:MaximumMember 2019-12-31 0001720580
us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember
2020-09-14 0001720580 us-gaap:MeasurementInputPriceVolatilityMember
srt:MaximumMember 2020-09-14 0001720580
us-gaap:MeasurementInputPriceVolatilityMember 2020-04-28 0001720580
us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember
2019-12-31 0001720580 us-gaap:MeasurementInputPriceVolatilityMember
srt:MaximumMember 2019-12-31 0001720580
us-gaap:MeasurementInputRiskFreeInterestRateMember
srt:MinimumMember 2020-09-14 0001720580
us-gaap:MeasurementInputRiskFreeInterestRateMember
srt:MaximumMember 2020-09-14 0001720580
us-gaap:MeasurementInputRiskFreeInterestRateMember 2020-04-28
0001720580 us-gaap:MeasurementInputRiskFreeInterestRateMember
srt:MinimumMember 2019-12-31 0001720580
us-gaap:MeasurementInputRiskFreeInterestRateMember
srt:MaximumMember 2019-12-31 0001720580
us-gaap:MeasurementInputExpectedDividendRateMember 2020-09-14
0001720580 us-gaap:MeasurementInputExpectedDividendRateMember
2020-04-28 0001720580
us-gaap:MeasurementInputExpectedDividendRateMember 2019-12-31
0001720580 2019-01-01 2019-12-31 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantOneMember 2020-01-01
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantTwoMember 2020-01-01
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantThreeMember 2020-01-01
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantFourMember 2020-01-01
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantFiveMember 2020-01-01
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantOneMember 2020-09-30
0001720580 acet:SeptemberFifteenTwoThousandTwentyWarrantTwoMember
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantThreeMember 2020-09-30
0001720580 acet:SeptemberFifteenTwoThousandTwentyWarrantFourMember
2020-09-30 0001720580
acet:SeptemberFifteenTwoThousandTwentyWarrantFiveMember 2020-09-30
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:JulyTwentyFiveTwoThousandNineteenWarrantMember 2019-01-01
2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:AugustTwentyOneTwoThousandNineteenWarrantMember 2019-01-01
2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:SeptemberNineteenTwoThousandNineteenWarrantMember 2019-01-01
2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:SeptemberTwentySixThousandNineteenWarrantMember 2019-01-01
2019-12-31 0001720580
us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:JulyTwentyFiveTwoThousandNineteenWarrantMember 2019-12-31
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:AugustTwentyOneTwoThousandNineteenWarrantMember 2019-12-31
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:SeptemberNineteenTwoThousandNineteenWarrantMember 2019-12-31
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
acet:SeriesBWarrantsMember
acet:SeptemberTwentySixThousandNineteenWarrantMember 2019-12-31
0001720580
acet:AdditionalAuthorizedAndUnissuedRedeemableConvertiblePreferredStockMember
2019-12-31 0001720580 acet:OptionsAvailableForFutureGrantsMember
2020-09-30 0001720580 acet:OptionsAvailableForFutureGrantsMember
2019-12-31 0001720580 us-gaap:EmployeeStockOptionMember 2020-09-30
0001720580 us-gaap:EmployeeStockOptionMember 2019-12-31 0001720580
acet:RedeemableConvertiblePreferredStockWarrantsMember 2019-12-31
0001720580 acet:CommonStockWarrantsMember 2020-09-30 0001720580
us-gaap:EmployeeStockOptionMember 2019-12-31 0001720580
us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001720580
us-gaap:EmployeeStockOptionMember 2020-09-30 0001720580
us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0001720580
us-gaap:ResearchAndDevelopmentExpenseMember 2020-07-01 2020-09-30
0001720580 us-gaap:ResearchAndDevelopmentExpenseMember 2019-07-01
2019-09-30 0001720580 us-gaap:ResearchAndDevelopmentExpenseMember
2020-01-01 2020-09-30 0001720580
us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-09-30
0001720580 us-gaap:GeneralAndAdministrativeExpenseMember 2020-07-01
2020-09-30 0001720580 us-gaap:GeneralAndAdministrativeExpenseMember
2019-07-01 2019-09-30 0001720580
us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-09-30
0001720580 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01
2019-09-30 0001720580
acet:TwoThousandEighteenStockIncentivePlanMember 2020-01-01
2020-09-30 0001720580
acet:TwoThousandSeventeenAndTwoThousandEighteenStockIncentivePlanMember
2020-09-30 0001720580
acet:TwoThousandSeventeenAndTwoThousandEighteenStockIncentivePlanMember
2020-01-01 2020-09-30 0001720580
acet:TwoThousandFourteenStockIncentivePlanMember 2020-09-30
0001720580 acet:TwoThousandFifteenStockIncentivePlanMember
2020-09-30 0001720580
acet:TwoThousandFourteenStockIncentivePlanMember 2020-01-01
2020-09-30 0001720580
acet:TwoThousandFifteenStockIncentivePlanMember 2020-01-01
2020-09-30 0001720580
acet:TwoThousandSeventeenAndTwoThousandEighteenStockIncentivePlanOneMember
2020-09-30 0001720580
acet:TwoThousandEighteenEmployeeStockPurchasePlanMember 2018-12-31
0001720580 acet:TwoThousandEighteenEmployeeStockPurchasePlanMember
2018-01-01 2018-12-31 0001720580
acet:TwoThousandEighteenEmployeeStockPurchasePlanMember
srt:MinimumMember 2020-01-01 2020-09-30 0001720580
acet:TwoThousandEighteenEmployeeStockPurchasePlanMember 2019-01-01
2019-01-01 0001720580
acet:TwoThousandEighteenEmployeeStockPurchasePlanMember 2020-01-01
2020-01-01 0001720580
acet:TwoThousandEighteenEmployeeStockPurchasePlanMember 2020-04-01
2020-06-30 0001720580 acet:CEOStockOptionModificationMember
2020-07-01 2020-09-30 0001720580 srt:ScenarioForecastMember
acet:CEOStockOptionModificationMember 2021-04-08 2021-05-07
0001720580 acet:MergerMember 2020-09-17 2020-09-17 0001720580
acet:MergerMember
us-gaap:ShareBasedCompensationAwardTrancheOneMember 2020-01-01
2020-09-30 0001720580 acet:MergerMember
us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2020-01-01
2020-09-30 0001720580 acet:MergerMember
us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2020-01-01
2020-09-30 0001720580 acet:MergerMember 2020-07-01 2020-09-30
0001720580 us-gaap:RedeemableConvertiblePreferredStockMember
2019-01-01 2019-09-30 0001720580 us-gaap:EmployeeStockOptionMember
2019-01-01 2019-09-30 0001720580
acet:RedeemableConvertiblePreferredStockWarrantsMember 2019-01-01
2019-09-30 0001720580 acet:CommonStockWarrantsMember 2020-01-01
2020-09-30 0001720580 acet:COVID19Member 2020-01-01 2020-09-30
0001720580 acet:RegeneronPharmaceuticalsIncorporationMember
us-gaap:SeriesBPreferredStockMember 2020-09-30 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember
us-gaap:SeriesBPreferredStockMember 2019-12-31 0001720580
acet:RegeneronPharmaceuticalsIncorporationMember 2020-09-30
0001720580 us-gaap:SubsequentEventMember 2020-10-22
2020-10-22
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
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 No. 001-38359
Adicet Bio, Inc.
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
81-3305277
|
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
500 Boylston Street, 13th
Floor
Boston, MA
|
|
02116
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(857) 315-5528
(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, par value $0.0001 per share
|
ACET
|
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.
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 3, 2020, the registrant had 19,600,567 shares of
common stock, $0.0001 par value per share, outstanding.
Table of Contents
i
Summary of the Material Risks Associated with Our Business
|
|
•
|
Our product candidates
are based on novel technologies, which makes it difficult to
predict the likely success of such product candidates and the time
and cost of product candidate development and obtaining regulatory
approval. Specifically, our gamma delta T cell candidates represent
a novel approach to cancer treatment that creates significant
challenges for us.
|
|
|
•
|
Our business is highly
dependent on the success of ADI-001 and ADI-002. If we are unable
to obtain approval for ADI-001 or ADI-002 and effectively
commercialize ADI-001 or ADI-002 for the treatment of patients in
our approved indications, our business would be significantly
harmed.
|
|
|
•
|
All of our product
candidates, including ADI-001 and ADI-002, will require additional
clinical and non-clinical development and will require substantial
investment. If we are unable to raise sufficient capital when
needed, our business, financial condition and results of operations
will be harmed, and we will need to significantly modify our
operational plans to continue as a going concern.
|
|
|
•
|
Our clinical trials may
fail to demonstrate the safety and efficacy of any of our product
candidates, which would prevent or delay regulatory approval and
commercialization.
|
|
|
•
|
We may encounter
substantial delays in our clinical trials, or may not be able to
conduct our trials on the timelines we expect.
|
|
|
•
|
A variety of risks
associated with conducting research and clinical trials abroad and
marketing our product candidates internationally could materially
adversely affect our business.
|
|
|
•
|
A pandemic, epidemic or
outbreak of an infectious disease, such as COVID-19, may materially
and adversely affect our business and operations.
|
|
|
•
|
We have identified
material weaknesses in our internal control over financial
reporting. Failure to achieve and maintain effective internal
control over financial reporting could harm our business and
negatively impact the value of our common stock.
|
|
|
•
|
We may form or seek
strategic alliances or enter into additional licensing arrangements
in the future, and we may not realize the benefits of such
alliances or licensing arrangements.
|
|
|
•
|
If our collaboration
agreement with Regeneron is terminated, or if Regeneron materially
breaches our obligations thereunder, our business, prospects,
operating results, and financial condition would be materially
harmed.
|
|
|
•
|
We are subject to
certain exclusivity obligations under our agreement with
Regeneron.
|
|
|
•
|
The FDA regulatory
approval process is lengthy and time-consuming, and we may
experience significant delays in the clinical development and
regulatory approval of our product candidates.
|
|
|
•
|
We depend on
intellectual property licensed from third parties and termination
of any of these licenses could result in the loss of significant
rights, which would harm our business.
|
|
|
•
|
We currently have no
marketing and sales organization and as a company has no experience
in marketing products. If we are unable to establish marketing and
sales capabilities or enter into agreements with third parties to
market and sell our product candidates, we may not be able to
generate product revenue.
|
|
|
•
|
We do not currently
operate our own manufacturing facility, which would require
significant resources and any failure to successful manufacture our
products could adversely affect our clinical trials and the
commercial viability of our product candidates.
|
1
EXPLANATORY
NOTE
Prior to September 15, 2020, we were a clinical-stage
biopharmaceutical company known as resTORbio, Inc. (“resTORbio”)
that had historically focused on developing innovative medicines
that target the biology of aging, to prevent or treat age-related
diseases with the potential to extend healthy lifespans. resTORbio
was originally incorporated under the laws of the State of Delaware
in July 2016 and commenced research and development operations in
March 2017.
On September 15, 2020, we completed our business combination
whereby a wholly-owned subsidiary of resTORbio merged with and into
Adicet Bio, Inc. (“Former Adicet”), with Former Adicet surviving as
a wholly-owned subsidiary of resTORbio and changing its name to
Adicet Therapeutics, Inc. (such transactions, the “Merger”). In
connection with the completion of the Merger, resTORbio was renamed
Adicet Bio, Inc. (“Adicet Bio”).
Immediately prior to the effective time of the Merger, resTORbio
effected a reverse stock split of its common stock at a ratio of
1-for-7 (the “Reverse Stock Split”). At the effective time of the
Merger, each outstanding share of Former Adicet’s capital stock was
converted into the right to receive 0.1240 (the “Exchange Ratio”)
shares of Adicet Bio’s common stock.
Unless otherwise noted, all references to common stock share and
per share amounts in this Quarterly Report on Form 10-Q have been
retroactively adjusted to reflect the conversion of shares in the
Merger based on the Exchange Ratio and Reverse Stock Split. As used
herein, the words “the Company,” “we,” “us,” and “our” refer to,
for periods following the Merger, Adicet Bio (formerly resTORbio,
Inc.), together with is direct and indirect subsidiaries, and for
periods prior to the Merger, Adicet Therapeutics, Inc. (formerly
Adicet Bio, Inc.), and its direct and indirect subsidiaries, as
applicable. In addition, the
word “resTORbio” refers to the Company prior to the completion of
the Merger, and we sometimes refer to Adicet Therapeutics, Inc. as
“Adicet” or “Former Adicet.”
2
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking
statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, contained in
this Quarterly Report on Form 10-Q, including statements regarding
our strategy, future operations, future financial position, future
revenue, projected costs, prospects, plans and objectives of
management and expected market growth are forward-looking
statements. The words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “would” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words.
These forward-looking statements include, among other things,
statements about:
|
|
•
|
the anticipated timing
of our initiation of future clinical trials for ADI-001 in
non-Hodgkin’s Lymphoma (“NHL”), including the anticipated
results;
|
|
|
•
|
the anticipated timing
of our submission of INDs or equivalent regulatory filings and
initiation of future clinical trials for ADI-002 in solid tumors,
including the timing of the anticipated results;
|
|
|
•
|
the impacts of the
current COVID-19 pandemic on our continuing operations, clinical
development plans, including the timing of initiation and
completion of studies or trials, financial forecasts and
expectations, potential delays and increased costs in conducting
clinical trials in nursing homes, and other matters related to our
business and operations;
|
|
|
•
|
the timing of and our
ability to obtain and maintain regulatory approvals for our product
candidates;
|
|
|
•
|
the rate and degree of
acceptance and clinical utility of any products for which we
receive regulatory approval;
|
|
|
•
|
our commercialization,
marketing and manufacturing capabilities and strategy;
|
|
|
•
|
our intellectual
property position and strategy;
|
|
|
•
|
our ability to identify
additional product candidates with significant commercial
potential;
|
|
|
•
|
our plans to enter into
collaborations for the development and commercialization of product
candidates;
|
|
|
•
|
the potential benefits
of any future collaboration;
|
|
|
•
|
our ability to contract
with third party suppliers and manufacturers and their ability to
perform adequately;
|
|
|
•
|
the success of competing
therapies that are or may become available;
|
|
|
•
|
our ability to retain
the continued service of our key professionals and to identify,
hire, and retain additional qualified professionals;
|
|
|
•
|
our financial
performance;
|
|
|
•
|
our expectations related
to the use of cash, cash equivalents and marketable
securities;
|
|
|
•
|
our estimates regarding
expenses, future revenue, capital requirements and needs for
additional financing;
|
|
|
•
|
our ability to remediate
the material weaknesses in internal control over financial
reporting and to maintain effective internal control over financial
reporting;
|
|
|
•
|
our expectations
regarding the time during which we will be an emerging growth
company under the JOBS Act;
|
|
|
•
|
developments relating to
our competitors and our industry;
|
|
|
•
|
the impact of government
laws and regulations; and
|
|
|
•
|
other risks and
uncertainties, including those listed under the caption “Risk
Factors.”
|
We may not actually achieve the plans, intentions or expectations
disclosed in our forward-looking statements, and you should not
place undue reliance on our forward-looking statements. Actual
results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking
statements we make. We have included important factors in the
cautionary statements included in this Quarterly Report on Form
10-Q, particularly in the “Risk Factors” section, that could cause
actual results or events to differ materially from the
forward-looking statements that we make. Our forward-looking
statements do not reflect the potential impact of any future
acquisitions, mergers, dispositions, collaborations, joint ventures
or investments that we may make or enter into.
You should read this Quarterly Report on Form 10-Q and the
documents that we reference herein and have filed or incorporated
by reference as exhibits hereto completely and with the
understanding that our actual future results may be materially
different from what we expect. We do not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
3
PART
I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements.
ADICET BIO, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
September 30,
2020
|
|
|
December 31,
2019
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
84,960
|
|
|
$
|
10,607
|
|
|
Short-term marketable debt securities
|
|
|
23,160
|
|
|
|
51,793
|
|
|
Prepaid expenses and other current assets
|
|
|
9,291
|
|
|
|
1,786
|
|
|
Total current assets
|
|
|
117,411
|
|
|
|
64,186
|
|
|
Property and equipment, net
|
|
|
2,043
|
|
|
|
2,121
|
|
|
Goodwill
|
|
|
20,739
|
|
|
|
—
|
|
|
In-process research and development
|
|
|
3,490
|
|
|
|
—
|
|
|
Restricted cash
|
|
|
4,527
|
|
|
|
4,282
|
|
|
Long-term marketable debt securities
|
|
|
—
|
|
|
|
10,588
|
|
|
Other non-current assets
|
|
|
2,187
|
|
|
|
410
|
|
|
Total assets
|
|
$
|
150,397
|
|
|
$
|
81,587
|
|
|
Liabilities, redeemable convertible preferred stock, and
stockholders’ equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,838
|
|
|
$
|
1,052
|
|
|
Contract liabilities — related party, current
|
|
|
19,390
|
|
|
|
10,993
|
|
|
Accrued and other current liabilities
|
|
|
6,849
|
|
|
|
2,820
|
|
|
Total current liabilities
|
|
|
30,077
|
|
|
|
14,865
|
|
|
Contract liabilities — related party, net of current portion
|
|
|
—
|
|
|
|
10,890
|
|
|
Deferred rent, net of current portion
|
|
|
102
|
|
|
|
234
|
|
|
Redeemable convertible preferred stock warrant liability
|
|
|
—
|
|
|
|
1,881
|
|
|
Contingent consideration liability
|
|
|
2,880
|
|
|
|
—
|
|
|
Deferred tax liability
|
|
|
367
|
|
|
|
—
|
|
|
Other liabilities
|
|
|
41
|
|
|
|
—
|
|
|
Total liabilities
|
|
|
33,467
|
|
|
|
27,870
|
|
|
Commitments and contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock, $0.0001 par value; none
and
99,363,444 shares authorized as of September 30, 2020
and December 31,
2019, respectively; none and 97,166,921 shares issued
and outstanding
as of September 30, 2020 and December 31, 2019,
respectively;
liquidation preference $0 and $128,195 as of September
30, 2020
and December 31, 2019, respectively
|
|
|
—
|
|
|
|
114,083
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as
of
September 30, 2020 and December 31, 2019; none issued
and
outstanding as of September 30, 2020 and December 31,
2019.
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.0001 par value, 150,000,000 and 140,200,938
shares authorized as of September 30, 2020 and
December 31,
2019, respectively; 19,589,637 and 2,155,578 shares
issued and
outstanding as of September 30, 2020 and December 31,
2019,
respectively
|
|
|
1
|
|
|
|
—
|
|
|
Additional paid-in capital
|
|
|
214,213
|
|
|
|
9,258
|
|
|
Accumulated deficit
|
|
|
(97,367
|
)
|
|
|
(69,647
|
)
|
|
Accumulated other comprehensive income
|
|
|
83
|
|
|
|
23
|
|
|
Total stockholders’ equity (deficit)
|
|
|
116,930
|
|
|
|
(60,366
|
)
|
|
Total liabilities, redeemable convertible
preferred stock, and stockholders’
equity
(deficit)
|
|
$
|
150,397
|
|
|
$
|
81,587
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
4
ADICET BIO, INC.
Condensed Consolidated Statements of Operations and Comprehensive
Loss
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
Revenue—related party
|
|
$
|
3,028
|
|
|
$
|
(7,047
|
)
|
|
$
|
12,493
|
|
|
$
|
(974
|
)
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
8,942
|
|
|
|
6,331
|
|
|
|
24,651
|
|
|
|
17,168
|
|
|
General and administrative
|
|
|
7,741
|
|
|
|
1,847
|
|
|
|
17,684
|
|
|
|
6,069
|
|
|
Total operating expenses
|
|
|
16,683
|
|
|
|
8,178
|
|
|
|
42,335
|
|
|
|
23,237
|
|
|
Loss from operations
|
|
|
(13,655
|
)
|
|
|
(15,225
|
)
|
|
|
(29,842
|
)
|
|
|
(24,211
|
)
|
|
Interest income
|
|
|
153
|
|
|
|
276
|
|
|
|
704
|
|
|
|
561
|
|
|
Interest expense
|
|
|
(50
|
)
|
|
|
—
|
|
|
|
(84
|
)
|
|
|
—
|
|
|
Other income (expense), net
|
|
|
(1,224
|
)
|
|
|
171
|
|
|
|
(1,174
|
)
|
|
|
2,091
|
|
|
Loss before income tax expense (benefit)
|
|
|
(14,776
|
)
|
|
|
(14,778
|
)
|
|
|
(30,396
|
)
|
|
|
(21,559
|
)
|
|
Income tax expense (benefit)
|
|
|
3
|
|
|
|
—
|
|
|
|
(2,676
|
)
|
|
|
1
|
|
|
Net loss
|
|
$
|
(14,779
|
)
|
|
$
|
(14,778
|
)
|
|
$
|
(27,720
|
)
|
|
$
|
(21,560
|
)
|
|
Net loss per share attributable to common stockholders, basic
and diluted
|
|
$
|
(2.84
|
)
|
|
$
|
(6.87
|
)
|
|
$
|
(8.69
|
)
|
|
$
|
(10.10
|
)
|
|
Weighted-average common shares used in computing net loss
per share attributable to common stockholders, basic
and
diluted
|
|
|
5,208,887
|
|
|
|
2,149,986
|
|
|
|
3,190,557
|
|
|
|
2,133,645
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain on marketable debt securities, net of
tax
|
|
|
(114
|
)
|
|
|
(5
|
)
|
|
|
60
|
|
|
|
11
|
|
|
Total other comprehensive (loss) income
|
|
|
(114
|
)
|
|
|
(5
|
)
|
|
|
60
|
|
|
|
11
|
|
|
Comprehensive loss
|
|
$
|
(14,893
|
)
|
|
$
|
(14,783
|
)
|
|
$
|
(27,660
|
)
|
|
$
|
(21,549
|
)
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
5
ADICET BIO, INC.
Condensed Consolidated Statements of Redeemable Convertible
Preferred Stock and Stockholders’ Equity (Deficit)
(in thousands, except share amounts)
(Unaudited)
|
|
|
Redeemable Convertible
Preferred Stock
|
|
|
|
Common Stock
|
|
|
Additional
Paid In
|
|
|
Accumulated
|
|
|
Accumulated
Other
Comprehensive
|
|
|
Total
Shareholders'
Equity
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Income (Loss)
|
|
|
(Deficit)
|
|
|
Balance at December 31, 2019
|
|
|
97,166,921
|
|
|
$
|
114,083
|
|
|
|
|
2,155,578
|
|
|
$
|
—
|
|
|
$
|
9,258
|
|
|
$
|
(69,647
|
)
|
|
$
|
23
|
|
|
$
|
(60,366
|
)
|
|
Issuance of common stock upon exercise of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
19,947
|
|
|
|
—
|
|
|
|
42
|
|
|
|
—
|
|
|
|
—
|
|
|
|
42
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
299
|
|
|
|
—
|
|
|
|
—
|
|
|
|
299
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,486
|
)
|
|
|
—
|
|
|
|
(4,486
|
)
|
|
Unrealized gain on marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15
|
)
|
|
|
(15
|
)
|
|
Balance at March 31, 2020
|
|
|
97,166,921
|
|
|
|
114,083
|
|
|
|
|
2,175,525
|
|
|
|
—
|
|
|
|
9,599
|
|
|
|
(74,133
|
)
|
|
|
8
|
|
|
|
(64,526
|
)
|
|
Issuance of common stock upon exercise of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
3,101
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
351
|
|
|
|
—
|
|
|
|
—
|
|
|
|
351
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,455
|
)
|
|
|
—
|
|
|
|
(8,455
|
)
|
|
Unrealized gain on marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
189
|
|
|
|
189
|
|
|
Balance at June 30, 2020
|
|
|
97,166,921
|
|
|
|
114,083
|
|
|
|
|
2,178,626
|
|
|
|
—
|
|
|
|
9,957
|
|
|
|
(82,588
|
)
|
|
|
197
|
|
|
|
(72,434
|
)
|
|
Issuance of common stock upon exercise of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
100,092
|
|
|
|
—
|
|
|
|
144
|
|
|
|
—
|
|
|
|
—
|
|
|
|
144
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,966
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,966
|
|
|
Conversion of shares of redeemable convertible preferred
stock to shares of common stock in connection with
the Merger
|
|
|
(97,166,921
|
)
|
|
|
(114,083
|
)
|
|
|
|
12,048,671
|
|
|
|
1
|
|
|
|
114,082
|
|
|
|
—
|
|
|
|
—
|
|
|
|
114,083
|
|
|
Exchange of common stock in connection with the
Merger
|
|
|
—
|
|
|
|
—
|
|
|
|
|
5,262,248
|
|
|
|
—
|
|
|
|
84,142
|
|
|
|
—
|
|
|
|
—
|
|
|
|
84,142
|
|
|
Conversion of redeemable convertible preferred stock
warrants to common stock warrants
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,922
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,922
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(14,779
|
)
|
|
|
—
|
|
|
|
(14,779
|
)
|
|
Unrealized loss on marketable securities
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(114
|
)
|
|
|
(114
|
)
|
|
Balance at September 30, 2020
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
19,589,637
|
|
|
$
|
1
|
|
|
$
|
214,213
|
|
|
$
|
(97,367
|
)
|
|
$
|
83
|
|
|
$
|
116,930
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
6
ADICET BIO, INC.
Condensed Consolidated
Statements of Redeemable Convertible Preferred Stock and
Stockholders’ Equity (Deficit)
(in thousands, except share amounts)
(Unaudited)
|
|
|
Redeemable Convertible
Preferred Stock
|
|
|
|
Common Stock
|
|
|
Additional
Paid In
|
|
|
Accumulated
|
|
|
Accumulated
Other
Comprehensive
|
|
|
Total
Shareholders'
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Income (Loss)
|
|
|
(Deficit)
|
|
|
Balance at December 31, 2018
|
|
|
40,094,850
|
|
|
$
|
38,068
|
|
|
|
|
2,140,787
|
|
|
$
|
1
|
|
|
$
|
8,005
|
|
|
$
|
(41,509
|
)
|
|
$
|
(13
|
)
|
|
$
|
(33,516
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,131
|
)
|
|
|
—
|
|
|
|
(4,131
|
)
|
|
Issuance of Series A redeemable convertible
preferred stock related to TRDF liability
|
|
|
67,656
|
|
|
|
88
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Issuance of common stock upon exercise
of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
4,300
|
|
|
|
—
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
|
Vesting of early exercised stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
|
—
|
|
|
|
—
|
|
|
|
47
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
251
|
|
|
|
—
|
|
|
|
—
|
|
|
|
251
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
|
18
|
|
|
Balance at March 31, 2019
|
|
|
40,162,506
|
|
|
|
38,156
|
|
|
|
|
2,145,087
|
|
|
|
1
|
|
|
|
8,312
|
|
|
|
(45,640
|
)
|
|
|
5
|
|
|
|
(37,322
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,651
|
)
|
|
|
—
|
|
|
|
(2,651
|
)
|
|
Issuance of common stock upon exercise
of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
3,278
|
|
|
|
—
|
|
|
|
7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
223
|
|
|
|
—
|
|
|
|
—
|
|
|
|
223
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Balance at June 30, 2019
|
|
|
40,162,506
|
|
|
|
38,156
|
|
|
|
|
2,148,365
|
|
|
|
1
|
|
|
|
8,542
|
|
|
|
(48,291
|
)
|
|
|
3
|
|
|
|
(39,745
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(14,778
|
)
|
|
|
—
|
|
|
|
(14,778
|
)
|
|
Issuance of Series B redeemable convertible preferred
stock, net of issuance cost of $5,087
|
|
|
57,004,415
|
|
|
|
74,913
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Termination of redeemable convertible
preferred stock tranche liability
|
|
|
—
|
|
|
|
1,143
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Issuance of common stock upon exercise
of stock options
|
|
|
—
|
|
|
|
—
|
|
|
|
|
3,903
|
|
|
|
—
|
|
|
|
8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8
|
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
391
|
|
|
|
—
|
|
|
|
—
|
|
|
|
391
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
Balance at September 30, 2019
|
|
|
97,166,921
|
|
|
$
|
114,212
|
|
|
|
|
2,152,268
|
|
|
$
|
1
|
|
|
$
|
8,941
|
|
|
$
|
(63,069
|
)
|
|
$
|
(2
|
)
|
|
$
|
(54,129
|
)
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
7
ADICET BIO, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(27,720
|
)
|
|
$
|
(21,560
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
|
911
|
|
|
|
962
|
|
|
Stock-based compensation expense
|
|
|
3,616
|
|
|
|
865
|
|
|
Gain on disposal of property and equipment
|
|
|
—
|
|
|