Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

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

For the quarterly period ended March 31, 2024

☐	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 001-36177

GlycoMimetics, Inc.

(Exact name of registrant as specified in its charter)

Delaware	06-1686563
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

9708 Medical Center Drive Rockville, Maryland	20850
(Address of principal executive offices)	(Zip Code)

(240) 243-1201

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	GLYC	The Nasdaq Stock 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 ☐Smaller Reporting Company ☒

Non-accelerated Filer ☒ 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 Securities Exchange Act of 1934). Yes ☐ No ☒

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, as of the close of business on May 7, 2024 was 64,464,412.

GLYCOMIMETICS, INC.

INDEX TO FORM 10-Q


		PAGE

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements		3

Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023		3

Unaudited Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2023		4

Unaudited Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023		5

Unaudited Statements of Cash Flows for the three months ended March 31, 2024 and 2023		6

Notes to Unaudited Financial Statements		7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		18

Item 3. Quantitative and Qualitative Disclosures about Market Risk		26

Item 4. Controls and Procedures		26

PART II. OTHER INFORMATION

Item 1. Legal Proceedings		26

Item 1A. Risk Factors		27

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		30

Item 5. Other Information		30

Item 6. Exhibits		30

Signatures		31

Table of Contents

Part I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GLYCOMIMETICS, INC.

Balance Sheets


	March 31,		December 31,
	2024		2023
Assets		(Unaudited)
Current assets:
Cash and cash equivalents	$	31,281,460	$	41,792,830
Prepaid expenses and other current assets		1,985,933		1,997,904
Total current assets		33,267,393		43,790,734
Prepaid research and development expenses		192,268		603,737
Operating lease right-of-use asset		598,257		767,828
Other assets		146,995		154,176
Total assets	$	34,204,913	$	45,316,475
Liabilities & stockholders’ equity
Current liabilities:
Accounts payable	$	755,534	$	868,115
Accrued expenses		3,907,840		5,225,557
Lease liabilities		630,827		741,558
Total current liabilities		5,294,201		6,835,230
Lease liabilities, net of current portion		—		66,844
Total liabilities		5,294,201		6,902,074
Stockholders’ equity:
Preferred stock; $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding at March 31, 2024 and December 31, 2023		—		—
Common stock; $0.001 par value; 100,000,000 shares authorized; 64,450,835 shares issued and outstanding at March 31, 2024; 64,393,744 shares issued and outstanding at December 31, 2023		64,451		64,394
Additional paid-in capital		496,068,140		494,835,219
Accumulated deficit		(467,221,879)		(456,485,212)
Total stockholders’ equity		28,910,712		38,414,401
Total liabilities and stockholders’ equity	$	34,204,913	$	45,316,475

The accompanying notes are an integral part of the unaudited financial statements.

Table of Contents

GLYCOMIMETICS, INC.

Unaudited Statements of Operations and Comprehensive Loss


	Three Months Ended March 31,
	2024		2023

Costs and expenses:
Research and development expense	$	6,025,461	$	5,418,706
General and administrative expense		5,089,566		5,522,312
Total costs and expenses		11,115,027		10,941,018
Loss from operations		(11,115,027)		(10,941,018)
Interest income		378,360		581,668
Net loss and comprehensive loss	$	(10,736,667)	$	(10,359,350)
Basic and diluted net loss per common share	$	(0.17)	$	(0.17)
Basic and diluted weighted-average number of common shares outstanding		64,457,233		60,350,127

The accompanying notes are an integral part of the unaudited financial statements.

Table of Contents

GLYCOMIMETICS, INC.

Unaudited Statements of Stockholders’ Equity


				Additional				Total
	Common Stock			Paid-In		Accumulated		Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balance at December 31, 2023	64,393,744	$	64,394	$	494,835,219	$	(456,485,212)	$	38,414,401
Issuance of common stock for services	15,256		15		35,985		—		36,000
Exercise of options and vesting of restricted stock units	41,835		42		4,856		—		4,898
Stock-based compensation	—		—		1,192,080		—		1,192,080
Net loss	—		—		—		(10,736,667)		(10,736,667)
Balance at March 31, 2024	64,450,835	$	64,451	$	496,068,140	$	(467,221,879)	$	28,910,712

				Additional				Total
	Common Stock			Paid-In		Accumulated		Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balance at December 31, 2022	54,377,798	$	54,378	$	462,461,251	$	(419,585,792)	$	42,929,837
Issuance of common stock, net of issuance costs	9,822,930		9,823		28,697,188		—		28,707,011
Exercise of options and vesting of restricted stock units	44,496		44		33,724		—		33,768
Stock-based compensation	—		—		870,180		—		870,180
Net loss	—		—		—		(10,359,350)		(10,359,350)
Balance at March 31, 2023	64,245,224	$	64,245	$	492,062,343	$	(429,945,142)	$	62,181,446

The accompanying notes are an integral part of the unaudited financial statements.

Table of Contents

GLYCOMIMETICS, INC.

Unaudited Statements of Cash Flows


	Three Months Ended March 31,
	2024		2023
Operating activities
Net loss	$	(10,736,667)	$	(10,359,350)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		14,620		43,839
Non-cash lease expense		169,571		219,119
Issuance of common stock for services		36,000		—
Stock-based compensation		1,192,080		870,180
Changes in assets and liabilities:
Prepaid expenses and other current assets		11,971		(240,103)
Prepaid research and development expenses		411,469		—
Accounts payable		(112,581)		(490,040)
Accrued expenses		(1,317,717)		(1,383,683)
Lease liabilities		(177,575)		(266,821)
Net cash used in operating activities		(10,508,829)		(11,606,859)

Investing activities
Purchases of property and equipment		(7,439)		(2,197)
Net cash used in investing activities		(7,439)		(2,197)

Financing activities
Proceeds from issuance of common stock, net of issuance costs		—		28,707,011
Proceeds from exercise of stock options		4,898		33,768
Net cash provided by financing activities		4,898		28,740,779
Net change in cash and cash equivalents		(10,511,370)		17,131,723
Cash and cash equivalents, beginning of period		41,792,830		47,870,619
Cash and cash equivalents, end of period	$	31,281,460	$	65,002,342

The accompanying notes are an integral part of the unaudited financial statements.

Table of Contents

GLYCOMIMETICS, INC.

Notes to Unaudited Financial Statements

1. Description of the Business

GlycoMimetics, Inc. (the Company), a Delaware corporation headquartered in Rockville, Maryland, was incorporated in 2003. The Company is a late clinical-stage biotechnology company focused on improving the lives of people living with cancer and inflammatory diseases by leveraging the inhibition of carbohydrate interactions that occur on the surface of cells. The Company is developing a pipeline of proprietary glycomimetics, which are small molecules that mimic the structure of carbohydrates involved in important biological processes, to inhibit disease-related functions of carbohydrates such as the roles they play in cancers and inflammation.

2. Going Concern

The accompanying unaudited financial statements have been prepared assuming that the Company will continue as a going concern within one year after the date that the financial statements are issued. During 2023, the Company incurred a net loss of $36.9 million and had net cash flows used in operating activities of $34.9 million. At March 31, 2024, the Company had $31.3 million in cash and cash equivalents and had no committed source of additional funding from either debt or equity financings, although the Company may, at its discretion, sell equity securities under the terms of its existing at-the-market sales agreement (see Note 7), subject to certain conditions and limitations. Management believes that given the Company’s current cash position and forecasted negative cash flows from operating activities over the next twelve months, including the continuation of our product development activities, there is substantial doubt about its ability to continue as a going concern after the date that is one year from the date that these unaudited financial statements are issued, without obtaining additional financing or entering into another form of non-equity or debt arrangement.

The Company’s ability to fund its operations is dependent upon management’s plans, which include reducing operating expenses and raising additional capital in the near term primarily through a combination of equity and debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements and in the longer term, from revenue related to product sales, to the extent its product candidates receive marketing approval and can be commercialized. There can be no assurances that new financings or other transactions will be available to the Company on commercially acceptable terms, or at all. Also, any collaborations, strategic alliances and marketing, distribution or licensing arrangements may require the Company to give up some or all of its rights to a product or technology, which in some cases may be at less than the full potential value of such rights. If the Company is unable to obtain additional capital, the Company will assess its capital resources and may be required to delay, reduce the scope of or eliminate some or all of its operations, which may have a material adverse effect on its business, financial condition, results of operations and ability to operate as a going concern.

The financial statements do not include any adjustments that might be necessary if the Company is not able to continue as a going concern.

3. Significant Accounting Policies

There have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (the SEC) on March 27, 2024 (the Form 10-K).

Basis of Accounting

The accompanying unaudited financial statements were prepared based on the accrual method of accounting in accordance with U.S. generally accepted accounting principles (GAAP).

Table of Contents

Unaudited Financial Statements

The accompanying balance sheet as of March 31, 2024, statements of operations and comprehensive loss and stockholders’ equity for the three months ended March 31, 2024 and 2023 and statements of cash flows for the three months ended March 31, 2024 and 2023 are unaudited. These unaudited financial statements have been prepared in accordance with the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. These unaudited financial statements should be read in conjunction with the audited financial statements and the accompanying notes for the year ended December 31, 2023 contained in the Form 10-K. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management reflect all adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of March 31, 2024, its results of operations and changes in its stockholders’ equity for the three months ended March 31, 2024 and 2023 and its cash flows for the three months ended March 31, 2024 and 2023. The December 31, 2023 balance sheet included herein was derived from audited financial statements, but does not include all disclosures including notes required by GAAP for complete annual financial statements. The financial data and other information disclosed in these notes to the financial statements related to the three months ended March 31, 2024 and 2023 are unaudited. Interim results are not necessarily indicative of results for an entire year or for any future period.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Although actual results could differ from those estimates, management does not believe that such differences would be material.

Fair Value Measurements

The Company had no assets or liabilities that were measured using quoted prices for similar assets and liabilities or significant unobservable inputs (Level 2 and Level 3 assets and liabilities, respectively) as of March 31, 2024 and December 31, 2023. The carrying value of cash held in money market funds of $25.2 million and $38.8 million as of March 31, 2024 and December 31, 2023, respectively, is included in cash and cash equivalents and approximates market values based on quoted market prices (Level 1 inputs). The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three months ended March 31, 2024 and 2023.

Concentration of Credit Risk

Credit risk represents the risk that the Company would incur a loss if counterparties failed to perform pursuant to the terms of their agreements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash balances with financial institutions in federally insured accounts and has cash balances in excess of the insurance limits. Cash equivalents consist of investment in United States government money market funds with major financial institutions. These deposits and funds may be redeemed upon demand and the Company does not anticipate any losses on such balances. The Company has not experienced any losses to date and believes that it is not exposed to any significant credit risk on cash and cash equivalents.

Revenue Recognition

The Company applies Accounting Standards Codification, or ASC, Topic 606, Revenue from Contracts with Customers (Topic 606), to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods and services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with the customer(s); (ii) identify the performance obligations in the contract; (iii) determine the

Table of Contents

transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods and services it transfers to the customer. At contract inception, the Company assesses the goods or services promised within each contract that falls under the scope of Topic 606, determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company enters into licensing agreements which are within the scope of Topic 606, under which it licenses certain of its drug candidates’ rights to third parties. The terms of these arrangements typically include payment of one or more of the following: non-refundable, up-front license fees; development, regulatory and commercial milestone payments; and royalties on net sales of the licensed product, if and when earned. See Note 10 for additional information regarding the Company’s license agreements.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligation under each of its agreements, the Company performs the five steps under Topic 606 described above. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement of personnel costs, discount rates and probabilities of technical and regulatory success.

Licensing of Intellectual Property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period, and, if necessary, adjusts the measure of performance and related revenue recognition.

Milestone Payments: At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal will not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in their period of adjustment.

Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue from its license agreements.

Manufacturing and Supply: The obligations under the Company’s agreements may include clinical and/or commercial manufacturing products to be provided by the Company to the counterparty. The services are generally determined to be distinct from the other promises or performance obligations identified in the arrangement. The Company recognizes the transaction price allocated to these services as revenue at a point in time when transfer of control of the related products to the customer occurs.

Table of Contents

Accruals for Clinical Trial Expenses

Clinical trial costs primarily consist of expenses incurred under agreements with contract research organizations (CROs), investigative sites, laboratory testing expenses, data management and consultants that conduct the Company's clinical trials. Clinical trial expenses are a significant component of research and development expenses, and the Company outsources a significant portion of these clinical trial activities to third parties. The accrual for site and patient costs includes inputs such as estimates of patient enrollment, patient cycles incurred, clinical site activations, estimated project duration and other pass-through costs. These inputs are required to be estimated due to a lag in receiving the actual clinical information from third parties. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected on the balance sheets as a prepaid asset or accrued expenses. These third-party agreements are generally cancellable, and related costs are recorded as research and development expenses as incurred. Except for payments made in advance of services, clinical trial costs are expensed as incurred. Non-refundable advance clinical payments for goods or services that will be used or rendered for future research and development activities are recorded as a prepaid asset and recognized as expense as the related goods are delivered or the related services are performed. When evaluating the adequacy of the accrued expenses, management assessments include: (i) an evaluation by the project manager of the work that has been completed during the period; (ii) measurement of progress prepared internally and/or provided by the third-party service provider; (iii) analyses of data that justify the progress; and (iv) the Company’s judgment. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the estimates made. The Company’s historical clinical accrual estimates have not been materially different from the actual costs.

Stock-Based Compensation

Stock-based payments are accounted for in accordance with the provisions of ASC 718, Compensation—Stock Compensation. The fair value of stock-based payments is estimated, on the date of grant, using the Black-Scholes-Merton model. The resulting fair value is recognized ratably over the requisite service period, which is generally the vesting period of the option. The Company accounts for forfeitures as they occur.

The Company has elected to use the Black-Scholes-Merton option pricing model to value any options granted. The Company will reconsider use of the Black-Scholes-Merton model if additional information becomes available in the future that indicates another model would be more appropriate or if grants issued in future periods have characteristics that prevent their value from being reasonably estimated using this model.

A discussion of management’s methodology for developing some of the assumptions used in the valuation model follows:

Expected Dividend Yield—The Company has never declared or paid dividends and has no plans to do so in the foreseeable future.

Expected Volatility—Volatility is a measure of the amount by which a financial variable such as share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company bases the expected volatility on the historical volatility of the Company’s publicly traded common stock.

Risk-Free Interest Rate—This is the U.S. Treasury rate for the week of each option grant during the year, having a term that most closely resembles the expected life of the option.

Expected Term—This is a period of time that the options granted are expected to remain unexercised. Options granted have a maximum term of 10 years. The Company estimates the expected life of the option term to be 6.25 years. The Company uses a simplified method to calculate the average expected term.

Net Loss Per Common Share

Basic net loss per common share is determined by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock equivalents outstanding for the period.

Table of Contents

The treasury stock method is used to determine the dilutive effect of the Company’s stock options and restricted stock units (RSUs).

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average common shares outstanding, as they would be anti-dilutive:


	Three Months Ended March 31,
	2024	2023
Stock options and RSUs	13,546,834	11,420,012

Comprehensive Loss

Comprehensive loss comprises net loss and other changes in equity that are excluded from net loss. For the three months ended March 31, 2024 and 2023, the Company’s net loss equaled comprehensive net loss and, accordingly, no additional disclosure is presented.

Recently Issued Accounting Standards

Accounting Standards Not Yet Adopted

There have been no new accounting pronouncements that have significance, or potential significance, to the Company’s unaudited financial statements for the quarter ended March 31, 2024.

4. Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets:


	March 31,		December 31,
	2024		2023
Prepaid research and development expenses	$	1,016,078	$	1,420,642
Other prepaid expenses		859,909		401,442
Other receivables		109,946		175,820
Prepaid expenses and other current assets	$	1,985,933	$	1,997,904

5. Accrued Expenses

The following is a summary of the Company’s accrued expenses:


	March 31,		December 31,
	2024		2023
Accrued research and development expenses	$	1,872,752	$	1,824,689
Accrued bonuses		666,617		2,561,913
Accrued consulting and other professional fees		790,989		439,192
Accrued employee benefits		566,650		399,763
Other accrued expenses		10,832		—
Accrued expenses	$	3,907,840	$	5,225,557

6. Operating Leases

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the circumstances present. The Company determines a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as direct the right to use of that asset. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance

Table of Contents

sheet leases with terms of one year or less on the lease commencement date. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments over the expected lease term, with an offsetting entry to recognize a right-of-use asset. The Company has also elected to use the practical expedient and account for each lease component and related non-lease component as one single component. The lease component results in a right-of-use asset being recorded on the balance sheet and amortized as lease expense on a straight-line basis.

The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a term similar to the term of the lease for which the rate is estimated. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.

The Company leases office and research space in Rockville, Maryland under an operating lease that is subject to annual rent increases (the Lease). The Company paid a security deposit of $52,320 to be held until the expiration or termination of the Company’s obligations under the Lease. In April 2023, the Company and its landlord entered into an amendment to the Lease (the Lease Amendment). Pursuant to the Lease Amendment, the Company and the landlord agreed that the lease term for a portion of the premises, consisting of approximately 30,000 square feet, would be extended from November 1, 2023 to January 31, 2025. The Company’s lease of the remaining premises, consisting of approximately 12,000 square feet, expired on October 31, 2023. There were no additional operating leases entered into during the quarter ended March 31, 2024.

The components of lease expense and related cash flows were as follows:


	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	188,310	$	231,989
Variable lease cost		99,887		183,274
Total operating lease cost	$	288,197	$	415,263

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	196,314	$	279,692

Maturities of lease liability due under these lease agreements as of March 31, 2024 were as follows:


	Operating Lease
	Obligation
April 1, 2024 - December 31, 2024	$	592,869
2025		67,401
Thereafter		—
Total		660,270
Present value adjustment		(29,443)
Present value of lease payments	$	630,827

Supplemental information related to leases were as follows:


	March 31,		December 31,
Operating Leases	2024		2023
Weighted-average remaining lease term (in years)		0.8		1.1
Weighted-average incremental borrowing rate		10.0%		10.0%

Table of Contents

7. Stockholders’ Equity

At-The-Market Sales Facility

In March 2022, the Company filed a shelf registration statement with the SEC, which was declared effective on April 22, 2022. On April 28, 2022, the Company entered into an at-the-market sales agreement (the 2022 Sales Agreement) with Cowen and Company, LLC. Under the 2022 Sales Agreement, the Company may sell up to $100.0 million worth of shares of common stock. During the quarter ended March 31, 2023, the Company issued and sold 9,822,930 shares of common stock under the 2022 Sales Agreement at a weighted average price per share of $3.01, for aggregate net proceeds of $28.7 million, after deducting commissions and offering expenses. There were no shares issued under the 2022 Sales Agreement during the quarter ended March 31, 2024. As of March 31, 2024, approximately $66.0 million remained available to be sold under the terms of the 2022 Sales Agreement.

8. Stock-based Compensation

2013 Equity Incentive Plan

The Company’s board of directors adopted, and its stockholders approved, its 2013 Equity Incentive Plan effective in January 2014, and the 2013 Equity Incentive Plan was amended and restated by approval of the board of directors in April 2022 and by approval of the stockholders in May 2022 (as so amended and restated, the 2013 Plan). The 2013 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code (the Code), to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards (RSUs), stock appreciation rights, performance stock awards and other forms of stock compensation to its employees, including officers, consultants and directors. The 2013 Plan also provides for the grant of performance cash awards to the Company’s employees, consultants and directors. Unless otherwise stated in a stock option agreement, 25% of the shares subject to an option grant will typically vest upon the first anniversary of the vesting start date and thereafter at the rate of one forty-eighth of the option shares per month as of the first day of each month after the first anniversary. Upon termination of employment by reasons other than death, cause, or disability, any vested options shall terminate 90 days after the termination date, unless otherwise set forth in a stock option agreement. Stock options generally terminate 10 years from the date of grant.

Authorized Shares

The maximum number of shares of common stock that may be issued under the 2013 Plan was originally 1,000,000 shares, plus any shares subject to stock options or similar awards granted under the 2003 Plan that expire or terminate without having been exercised in full or are forfeited to or repurchased by the Company. Upon the amendment and restatement of the 2013 Plan in May 2022, the existing share reserve was increased by 2,619,622. Beginning on January 1, 2023 and ending on (and including) January 1, 2029, the maximum number of shares of common stock that may be issued under the 2013 Plan will cumulatively be increased by 4% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the board of directors or the compensation committee thereof. The maximum number of shares that may be issued pursuant to exercise of incentive stock options under the 2013 Plan is 20,000,000 shares. As of March 31, 2024, the total number of shares reserved for issuance under the 2013 Plan was 14,257,627 shares, of which 2,597,377 shares were available for future grants.

Shares issued under the 2013 Plan may be authorized but unissued or reacquired shares of common stock. Shares subject to stock awards granted under the 2013 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, will not reduce the number of shares available for issuance under the 2013 Plan. Additionally, shares issued pursuant to stock awards under the 2013 Plan that the Company repurchases or that are forfeited, as well as shares reacquired by the Company as consideration for the exercise or purchase price of a stock award or to satisfy tax withholding obligations related to a stock award, will become available for future grant under the 2013 Plan.

Table of Contents

A summary of the Company’s stock option activity under the 2013 Plan for the three months ended March 31, 2024 is as follows:


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	8,273,800	$	5.29	6.3
Options granted	3,094,500		3.10
Options exercised	(2,800)		1.75
Options forfeited	(597,642)		8.21
Outstanding as of March 31, 2024	10,767,858		4.50	7.5	$	4,028
Vested or expected to vest as of March 31, 2024	10,615,958		4.55	7.6		3,756
Exercisable as of March 31, 2024	5,118,477		6.52	5.3		1,758

As of March 31, 2024, there was $10,785,346 of total unrecognized compensation expense related to unvested options under the 2013 Plan that will be recognized over a weighted-average period of approximately 3.5 years. Total intrinsic value of the options exercised during the three months ended March 31, 2024 and 2023 was $3,758 and $23,760, respectively and total cash received for options exercised was $4,898 and $33,768, respectively. The total fair value of stock options which vested in the three months ended March 31, 2024 and 2023 was $1,394,896 and $704,311, respectively.

The Company has granted stock options to purchase an aggregate of 151,900 shares to certain employees under the 2013 Plan, the vesting of which is subject to performance vesting conditions relating to the achievement of specified regulatory or commercial milestones. The maximum fair value of $133,820 associated with performance-based options granted has been excluded from the unrecognized compensation expense under the 2013 Plan as the completion of the performance milestones was not deemed to be probable as of March 31, 2024. The Company will reevaluate at the end of each reporting period the probability that the performance conditions will be achieved and will record any adjustments to the compensation cost at that time.

An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant. In January 2021, the Company awarded RSUs under the 2013 Plan to all of its employees. The RSUs granted vest over four years in equal installments on each anniversary of the grant date, provided that the employee remains employed by the Company at the applicable vesting date. Compensation expense is recognized on a straight-line basis. As of March 31, 2024, there was $179,660 of total unrecognized compensation expense associated with outstanding RSU grants that will be recognized over a weighted-average period of approximately 0.8 years.

The following is a summary of RSU activity under the 2013 Plan for the three months ended March 31, 2024:


		Weighted-Average
	Number of Shares	Grant Date
	Underlying RSUs	Fair Value
Unvested at December 31, 2023	117,157	$	3.81
Vested	(58,581)		3.81
Unvested at March 31, 2024	58,576		3.81

Issuance of Shares to Directors in Lieu of Cash Retainers for Service

In March 2023, the Company’s board of directors amended the Company’s Non-Employee Director Compensation Policy to include an election to receive unrestricted shares of common stock in lieu of quarterly board and committee retainer cash payments. The number of shares to be issued to an electing director is determined on the last day of each fiscal quarter by dividing the dollar amount of the compensation to be paid for such quarter that is subject to the election by the closing price of a share of common stock on the last trading day of the fiscal quarter, rounded up to the nearest

Table of Contents

whole share. Non-employee directors who made such an election will receive 13,127 shares of common stock in lieu of cash compensation earned for the quarter ended March 31, 2024. All shares of common stock issued pursuant to such an election are fully vested upon issuance and are classified as “Other Awards” under the 2013 Plan.

Inducement Plan

The Company’s board of directors previously adopted the GlycoMimetics, Inc. Inducement Plan (as amended to date, the Inducement Plan). The Inducement Plan provides for the grant of nonstatutory stock options, restricted stock awards, RSU awards, stock appreciation rights and other forms of stock awards to individuals not previously an employee or director of the Company as an inducement for such individuals to join the Company. Unless otherwise stated in an applicable stock option agreement, one-fourth of the shares subject to an option grant under the Inducement Plan will typically vest upon the first anniversary of the vesting start date, with the balance of the shares vesting in a series of thirty-six successive equal monthly installments as of the first day of each month measured from the first anniversary of the vesting start date, subject to the new employee’s continued service with the Company through the applicable vesting dates. Upon termination of employment by reasons other than death, cause or disability, any vested options will terminate 90 days after the termination date, unless otherwise set forth in a stock option agreement. Stock options generally terminate 10 years from the date of grant. The Inducement Plan was amended by the board of directors on multiple occasions to increase the number of shares reserved for issuance to 3,000,000 shares as of March 31, 2024. As of March 31, 2024, there were 269,508 shares available for future grants under the Inducement Plan.

A summary of the Company’s stock option activity under the Inducement Plan for the three months ended March 31, 2024 is as follows:


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	2,590,400	$	1.97	8.0
Options granted	130,000		3.20
Outstanding as of March 31, 2024	2,720,400		2.03	7.8	$	2,784
Vested or expected to vest as of March 31, 2024	2,136,200		2.04	7.9		2,184
Exercisable as of March 31, 2024	1,060,375		1.98	7.5		1,135

As of March 31, 2024, there was $1,621,972 of total unrecognized compensation expense related to unvested options under the Inducement Plan that will be recognized over a weighted-average period of approximately 2.5 years. The total fair value of stock options which vested in the three months ended March 31, 2024 and 2023 was $305,219 and $181,032, respectively. There were no options exercised under the Inducement Plan during the three months ended March 31, 2024 and 2023.

The Company has granted stock options to purchase an aggregate of 584,200 shares to certain newly hired employees under the Inducement Plan which options are subject to performance-based vesting conditions. The maximum fair value of $825,353 associated with the performance-based options has been excluded from the unrecognized compensation expense under the Inducement Plan as the completion of the performance milestones was not deemed to be probable as of March 31, 2024. The Company will reevaluate at the end of each reporting period the probability that the performance conditions will be achieved and will record any adjustments to the compensation cost at that time.

Table of Contents

The weighted-average fair value of the options granted under all equity incentive plans during the three months ended March 31, 2024 and 2023 was $2.44 per share and $2.04 per share, respectively, applying the Black-Scholes-Merton option pricing model utilizing the following weighted-average assumptions:


	2024	2023
Expected term	6.25 years	6.25 years
Expected volatility	90.37%	79.56%
Risk-free interest rate	3.89%	3.52%
Expected dividend yield	0%	0%

Stock-based compensation expense was classified on the statements of operations as follows for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Research and development expense	$	348,242	$	237,931
General and administrative expense		843,838		632,249
Total stock-based compensation expense	$	1,192,080	$	870,180

9. Income Taxes

The Company did not record any tax provision or benefit for the three months ended March 31, 2024 and 2023. The Company has provided a valuation allowance for the full amount of its net deferred tax assets since realization of any future benefit from deductible temporary differences, net operating loss carryforwards and research and development credits is not more-likely-than-not to be realized at March 31, 2024 and December 31, 2023.

10. License and Collaboration Agreements

Apollomics

In 2020, the Company entered into a collaboration and license agreement (the Agreement) with Apollomics (Hong Kong), Limited (Apollomics) for the development, manufacture and commercialization of products derived from two of the Company’s compounds, GMI-1271 and GMI-1687 (the Products) for therapeutic and prophylactic uses (the Field) in China, Taiwan, Hong Kong and Macau (the Territory). Under the terms of the Agreement, the Company granted Apollomics:

●

an exclusive license, with the right to sublicense, to develop, manufacture and have manufactured, distribute, market, promote, sell, have sold, offer for sale, import, label, package and otherwise the Products in the Field in the Territory; and

●

a non-exclusive license to conduct preclinical research with respect to Products in the Field outside of the Territory for the purposes of developing such Products for use in the Territory.

In 2020, the Company and Apollomics also entered into a clinical supply agreement pursuant to which the Company will manufacture and supply the Products at agreed upon prices. Apollomics has the option to begin manufacture of the Products after appropriate material transfer requirements are met. The Company did not recognize revenue under the clinical supplies agreement during the three months ended March 31, 2024 and 2023.

The Company evaluated the Agreement under the provisions of ASC 606 and identified two performance obligations under this revenue arrangement: the (i) delivery of functional licenses and (ii) manufacture and supply of the Products. The initial transaction price consists of a $9.0 million non-refundable up-front payment which was allocated to the delivered functional licenses and recognized in full as revenue in 2020 given that the performance obligation was satisfied upon inception. The Agreement contains various forms of variable consideration, including (i) up to $75.0 million in development milestones based on achievement of certain clinical and regulatory events, (ii) up to $105.0

Table of Contents

million of sales-based commercial milestones based on achievement of certain annual net sales targets, (iii) sales-based royalties at specified percentages of net sales ranging from the high single digits to 15%, and (iv) manufacture and supply of clinical and commercial Products. The Company has fully constrained the development milestone consideration using the most likely amount method and will recognize that revenue when it is probable that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods, and as such have been excluded from the transaction price. The Company did not recognize any milestone revenue under the Agreement for the three months ended March 31, 2024 and 2023.

The Company will recognize revenue related to the sales-based commercial and royalty milestones and royalties at the later of (i) when the related sales occur or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied), as they were determined to relate predominantly to the licenses granted to Apollomics and, therefore, have been excluded from the transaction price. Lastly, the Company has determined that the consideration for the manufacturing and supply is all variable and is fully constrained. Variable consideration allocated to manufacturing and supply will be recognized at a point in time when the Product is delivered and when the title to the Product is transferred to the customer pursuant to the agreement. The Company reassesses the transaction price in each reporting period and upon the occurrence of a change in circumstances or final resolution of any particular event.

11. Subsequent Events

In April 2024, the Company entered into a purchase commitment with a third-party vendor in the amount of $3,768,000 for 120 kg of raw materials to support manufacturing of its produce candidate uproleselan for commercial supply. Under the agreement, the Company paid a non-refundable advance of $1,130,400 to the vendor. The remainder will be due, if at all, upon completion of the produced quantity.

On May 6, 2024, the Company reported topline results from the Company sponsored Phase 3 uproleselan trial, in which uproleselan combined with chemotherapy did not achieve a statistically significant improvement in overall survival in the intent to treat population versus chemotherapy alone. Patients treated with uproleselan had a median overall survival of 13 months, compared to 12.3 months in the placebo arm. Adverse events were consistent with known side effect profiles of chemotherapy used in the trial. The Company has begun to further evaluate the data with medical, statistical, and regulatory experts and plans to submit the full results for presentation at an upcoming medical meeting.

Table of Contents

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements contained in this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions, or the negative of such words or phrases, are intended to identify “forward-looking statements.” We have based these forward-looking statements on our current expectations and projections about future events. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include those below and elsewhere in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K, particularly in Part I – Item 1A, “Risk Factors,” and our other filings with the Securities and Exchange Commission. Statements made herein are as of the date of the filing of this Form 10-Q with the Securities and Exchange Commission and should not be relied upon as of any subsequent date. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim, any obligation to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes that appear in Item 1 of this Quarterly Report on Form 10-Q and with our audited financial statements and related notes for the year ended December 31, 2023, which are included in our Annual Report on Form 10-K filed with the SEC on March 27, 2024.

Overview

We are a late clinical-stage biotechnology company focused on improving the lives of people living with cancer and inflammatory diseases by leveraging the inhibition of carbohydrate interactions that occur on the surface of cells. We are developing a pipeline of proprietary glycomimetics, which are small molecules that mimic the structure of carbohydrates involved in important biological processes, to inhibit disease-related functions of carbohydrates such as the roles they play in cancers and inflammation. We believe this represents an innovative approach to drug discovery to treat a wide range of diseases. We are focusing our efforts on drug candidates for diseases that we believe will qualify for orphan drug designation.

Our lead glycomimetic drug candidate, uproleselan, is a specific E-selectin antagonist that we are developing to be used in combination with chemotherapy to treat patients with acute myeloid leukemia, or AML, a life-threatening hematologic cancer, and potentially other hematologic cancers. In 2021, we completed enrollment of 388 patients in a randomized, double-blind, placebo-controlled Phase 3 pivotal clinical trial to evaluate uproleselan in individuals with relapsed/refractory AML, the design of which was based on guidance received from the FDA.

On May 6, 2024, we reported topline results from the trial, in which uproleselan combined with chemotherapy did not achieve a statistically significant improvement in overall survival in the intent to treat population versus chemotherapy alone. Patients treated with uproleselan had a median overall survival of 13 months, compared to 12.3 months in the placebo arm. Adverse events were consistent with known side effect profiles of chemotherapy used in the trial. We have begun to further evaluate the data with medical, statistical, and regulatory experts and plan to submit the full results for presentation at an upcoming medical meeting.

We have also entered into a Cooperative Research and Development Agreement, or CRADA, with the National Cancer Institute, or NCI, part of the National Institutes of Health, to conduct a Phase 2/3 randomized, controlled clinical trial testing the addition of uproleselan to a standard chemotherapy regimen. Enrollment of 267 patients in the Phase 2 portion was completed in December 2021. There will be a planned interim analysis that will evaluate event-free survival and whether the pre-specified threshold for continuing to Phase 3 has been met. The trial may also provide support for regulatory filings, if the results of the planned interim analysis are sufficiently positive.

In May 2023, the FDA agreed to our initial Pediatric Study Plan, and in October 2023, the European Medicines Agency agreed to our Pediatric Investigational Plan. As part of these pediatric plans, an NCI-sponsored Phase 1/2

Table of Contents

pediatric trial is currently being conducted by the Children’s Oncology Group Pediatric Early Phase Clinical Trials Network. The Phase 1 dose escalation study will evaluate the safety and preliminary activity of uproleselan plus fludarabine and high dose cytarabine in pediatric AML patients after two or more prior therapies. Enrollment in the Phase 1 trial is expected to be up to 18 patients. The first patient was enrolled in October 2023.

We have rationally designed an innovative antagonist of E-selectin, GMI-1687, that could be a subcutaneously administered treatment. Initially developed as a potential life-cycle extension to uproleselan, we believe that GMI-1687 could be developed to broaden the clinical usefulness of an E-selectin antagonist to conditions where outpatient treatment is preferred or required. In 2022, we filed an IND for GMI-1687 as a potential treatment for vaso-occlusive event (VOE), a common complication of sickle cell disease, and in December 2023, we completed enrollment of 40 subjects in a Phase 1a trial of GMI-1687 in healthy adult volunteers.

We are advancing other preclinical-stage programs, including small-molecule glycomimetic compounds that inhibit the protein galectin-3, which we believe may have potential to be an orally administered treatment for fibrosis, cancer and cardiovascular disease. In 2022, we selected a lead galectin drug candidate, GMI-2093, for evaluation in preclinical studies. We are evaluating options for the further development of GMI-2093 as a potential treatment for fibrosis and in oncology indications.

We also designed GMI-1359, a drug candidate that simultaneously targets both E-selectin and a chemokine receptor known as CXCR4. We are not currently developing GMI-1359 and are seeking a licensing partner to continue clinical development of this drug candidate.

We have financed our operations primarily through private placements of our securities, up-front and milestone payments under our license and collaboration agreements and the net proceeds from public offerings of common stock, including sales of common stock under at-the-market sales facilities with Cowen and Company LLC, or Cowen. We have no approved drugs currently available for sale, and substantially all of our revenue to date has been revenue from up-front and milestone payments under license and collaboration agreements.

Since inception, we have incurred significant operating losses. We had an accumulated deficit of $467.2 million as of March 31, 2024 and we expect to continue to incur operating losses over at least the next several years. Our net losses may fluctuate significantly from quarter to quarter and year to year, depending on the timing of our clinical trials and our expenditures on other research and development activities.

To fund further operations, we will need to preserve our current cash resources and raise additional capital. We may obtain additional financing in the future through the issuance of our common stock, through other equity or debt financings, potentially including the use of our at-the-market sales facility with Cowen, through collaborations or partnerships with other companies, or through the sale of rights to receive royalties on sales of uproleselan or any other drug candidates. We may not be able to raise additional capital on terms acceptable to us, or at all, and any failure to raise capital as and when needed could compromise our ability to execute on our business plan. Although it is difficult to predict future liquidity requirements, we believe that our existing cash and cash equivalents will be sufficient to fund our operations through the fourth quarter of 2024 without giving effect to potential business development opportunities, such as upfront or milestone payments under license and collaboration agreements, or financing activities including the additional sale of common stock under our at-the-market sales facility or otherwise. We also plan to reduce our operating expenses in the upcoming months in order to preserve capital, although any such efforts are not expected to materially extend the period of time for which our cash resources will be sufficient. Our ability to successfully transition to profitability will be dependent upon achieving a level of revenues adequate to support our cost structure. We cannot assure you that we will ever be profitable or generate positive cash flow from operating activities or that we will not need to reduce the scope of or eliminate some or all of our operations.

Our Agreements with Apollomics

In January 2020, we entered into an exclusive collaboration and license agreement with Apollomics (Hong Kong) Limited, or Apollomics, for the development and commercialization of uproleselan and GMI-1687 in Mainland China, Hong Kong, Macau and Taiwan, also known as Greater China. Under the terms of the agreement, Apollomics will be responsible for clinical development and commercialization in Greater China. We will also collaborate with Apollomics

Table of Contents

to advance the preclinical and clinical development of GMI-1687. We received an upfront cash payment of $9.0 million and in September 2020 received a $1.0 million development milestone payment. There were no milestone payments from Apollomics during the quarters ended March 31, 2024 or 2023. Subject to the terms of the agreement, we will be eligible to receive potential further milestone payments totaling approximately $179.0 million, as well as tiered royalties ranging from the high single digits to 15%, as a percentage of net sales. Apollomics will be responsible for all costs related to development, regulatory approvals, and commercialization activities for uproleselan and GMI-1687 in Greater China, and we and Apollomics expect to enter into clinical and commercial supply agreements with respect to our provision of uproleselan and GMI-1687 to Apollomics. We retain all rights for both compounds in the rest of the world.

In September 2020, the China National Medical Products Administration, or NMPA, Center for Drug Evaluation, or CDE, granted IND approval for uproleselan (also known as APL-106), enabling the initiation of a Phase 1 pharmacokinetics and tolerability study and a Phase 3 bridging study of APL-106 in combination with chemotherapy in relapsed/refractory AML. In January 2021, APL-106 was granted Breakthrough Therapy Designation from the China NMPA CDE for the treatment of relapsed/refractory AML. In January 2024, Apollomics announced the completion of enrollment in the Phase 3 bridging study. A total of 140 adult patients across 20 sites in Greater China with primary refractory AML or relapsed AML (first or second untreated relapse) and eligible to receive induction chemotherapy were randomized to receive either uproleselan combined with chemotherapy or placebo plus chemotherapy. The primary endpoint for the Phase 3 bridging study is overall survival. Secondary outcome measures include the rate and duration of remission and whether uproleselan can reduce the rate of oral mucositis, a chemotherapy-related side effect.

In June 2020, we entered into a clinical supply agreement with Apollomics under which we will manufacture and supply uproleselan product to Apollomics at agreed upon prices. Apollomics has the option to begin manufacture after appropriate material transfer requirements are met. During the year ended December 31, 2021, we recognized $1.1 million in revenue from the sale of clinical supplies to Apollomics under the clinical supply agreement. There were no sales of clinical supplies to Apollomics during the quarters ended March 31, 2024 or 2023.

Critical Accounting Policies and Significant Judgments and Estimates

Our management’s discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the dates of the balance sheets and the reported amounts of revenue and expenses during the reporting periods. In accordance with GAAP, we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances at the time such estimates are made. Actual results may materially differ from our estimates and judgments under different assumptions or conditions. We periodically review our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in our financial statements prospectively from the date of the change in estimate.

We define our critical accounting policies as those accounting principles generally accepted in the United States that require us to make subjective estimates and judgments about matters that are uncertain and are likely to have a material impact on our financial condition and results of operations, as well as the specific manner in which we apply those principles. For a description of our critical accounting policies and estimates, please see the disclosures in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023. There have not been any material changes to our critical accounting policies and estimates since December 31, 2023.

Components of Operating Results

Revenue

To date, we have not generated any revenue from the sale of our drug candidates and do not expect to generate any revenue from the sale of drugs in the near future. Substantially all of our historical revenue consisted of upfront and milestone payments under license and collaboration agreements.

Table of Contents

Research and Development

Research and development expenses consist of expenses incurred in performing research and development activities, including compensation and benefits for full-time research and development employees, facilities expenses, overhead expenses, cost of laboratory supplies, clinical trial and related clinical manufacturing expenses, fees paid to CROs and other consultants and other outside expenses. Other preclinical research and platform programs include activities related to exploratory efforts, target validation, lead optimization for our earlier programs and our proprietary glycomimetics platform. Our research and development expenses have related primarily to the development of uproleselan and our other drug candidates.

We do not currently utilize a formal time allocation system to capture expenses on a project-by-project basis because we are organized and record expense by functional department and our employees may allocate time to more than one development project. Accordingly, we only allocate a portion of our research and development expenses by functional area and by drug candidate.

Research and development costs are expensed as incurred. Non-refundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed.

Research and development activities are central to our business model. Drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later stage clinical trials. We expect our research and development expenses to increase over the next several years as we seek to progress uproleselan, GMI-1687 and our other drug candidates into and through clinical development. However, it is difficult to determine with certainty the duration and completion costs of our current or future preclinical studies and clinical trials of our drug candidates, or if, when or to what extent we will generate revenues from the commercialization and sale of any of our drug candidates that obtain regulatory approval. We may never succeed in achieving regulatory approval for any of our drug candidates.

The duration, costs and timing of clinical trials and development of our drug candidates will depend on a variety of factors that include:

●

per patient trial costs;

●

the number of patients that participate in the trials;

●

the number of sites included in the trials;

●

the countries in which the trial is conducted;

●

the length of time required to enroll eligible patients;

●

the number of doses that patients receive;

●

the drop-out or discontinuation rates of patients;

●

potential additional safety monitoring or other studies requested by regulatory agencies;

●

the duration of patient follow-up; and

●

the safety and efficacy profile of the drug candidate.

In addition, the probability of success for each drug candidate will depend on numerous factors, including competition, manufacturing capability and commercial viability. We will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each drug candidate, as well as an assessment of each drug candidate’s commercial potential.

Table of Contents

General and Administrative

General and administrative expenses consist primarily of salaries and other related costs, including stock-based compensation, for personnel in executive, finance, accounting, business development and human resources functions. Other significant costs include facility costs not otherwise included in research and development expenses, legal fees relating to patent and corporate matters and fees for accounting and consulting services.

Interest Income

Interest income consists of interest income earned on our cash and cash equivalents.

Results of Operations for the Three Months Ended March 31, 2024 and 2023

The following table sets forth our results of operations:


	Three Months Ended March 31,				Increase/(Decrease)
(dollars in thousands)	2024		2023
Costs and expenses:
Research and development expense	$	6,025	$	5,419	$	606	11	%
General and administrative expense		5,090		5,522		(432)	(8)	%
Total costs and expenses		11,115		10,941		174	2	%
Loss from operations		(11,115)		(10,941)		(174)	(2)	%
Interest income		378		582		(204)	(35)	%
Net loss and comprehensive loss	$	(10,737)	$	(10,359)	$	(378)	(4)	%

Research and Development Expense

The following table summarizes our research and development expense by functional area for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,				Increase/(Decrease)
(dollars in thousands)	2024		2023
Clinical development	$	1,206	$	1,376	$	(170)	(12)	%
Manufacturing and formulation		1,400		454		946	208	%
Contract research services, consulting and other costs		652		641		11	2	%
Laboratory costs		290		427		(137)	(32)	%
Personnel-related		2,129		2,283		(154)	(7)	%
Stock-based compensation		348		238		110	46	%
Research and development expense	$	6,025	$	5,419	$	606	11	%

The following table summarizes our research and development expense by drug candidate for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,				Increase/(Decrease)
(dollars in thousands)	2024		2023
Uproleselan	$	2,744	$	2,272	$	472	21	%
GMI-1687		236		35		201	574	%
Other research and development		568		591		(23)	(4)	%
Personnel-related and stock-based compensation		2,477		2,521		(44)	(2)	%
Research and development expense	$	6,025	$	5,419	$	606	11	%

Our research and development expense for the three months ended March 31, 2024 increased by $606,000 compared to the same period ended March 31, 2023 primarily due an increase in uproleselan manufacturing and

Table of Contents

formulation costs for commercial product, offset in part by decreases in drug discovery expenses, including personnel-related costs and costs for general laboratory supplies.

General and Administrative Expense

The following table summarizes the components of our general and administrative expense for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,				Increase/(Decrease)
(dollars in thousands)	2024		2023
Personnel-related	$	1,800	$	2,151	$	(351)	(16)	%
Stock-based compensation		844		632		212	34	%
Legal, consulting and other professional expenses		2,191		2,453		(262)	(11)	%
Other		255		286		(31)	(11)	%
General and administrative expense	$	5,090	$	5,522	$	(432)	(8)	%

General and administrative expenses decreased by $432,000 for the three months ended March 31, 2024 as compared to the same period in 2023. The decrease was primarily due to lower personnel-related expenses, as the quarter ended March 31, 2023 included a one-time severance accrual, and a decrease in professional fees related to timing of commercial readiness expenses for uproleselan in the first quarter of 2024 as compared to 2023. These decreases were offset by higher stock-based compensation expenses in the first quarter of 2024 as compared to 2023 due to a higher fair market value for shares issued in 2024 as compared to 2023.

Interest Income

During the three months ended March 31, 2024 interest income decreased by $204,000 due to lower invested cash and cash equivalent balances in the first quarter of 2024 as compared to 2023.

Liquidity and Capital Resources

Sources of Liquidity

We have historically financed our operations primarily through public offerings and private placements of our capital stock, including sales agreements with Cowen, and upfront and milestone payments from our license and collaboration agreements. As of March 31, 2024, we had $31.3 million in cash and cash equivalents.

In March 2022, we filed a shelf registration statement with the SEC, which was declared effective on April 22, 2022. In April 2022, we entered into an at-the-market sales agreement, or the 2022 Sales Agreement, with Cowen. Under the 2022 Sales Agreement, we may sell up to $100.0 million in shares of our common stock. During the year ended December 31, 2022, we sold 1,953,854 shares of common stock under the 2022 Sales Agreement at a weighted average price of $2.22 per share, for aggregate net proceeds of $4.2 million, after deducting commissions and offering expenses. During the year ended December 31, 2023, we sold 9,822,930 shares of common stock under the 2022 Sales Agreement at a weighted average price of $3.01 per share, for aggregate net proceeds of $28.7 million, after deducting commissions and offering expenses. There were no shares sold in the quarter ended March 31, 2024. As of March 31, 2024, $66.0 million remained available to be sold under the 2022 Sales Agreement.

We entered into a collaboration and license agreement with Apollomics in 2020 and are potentially eligible to earn milestone payments and royalties under that agreement. However, our ability to earn milestone payments and potential royalty payments and their timing will be dependent upon the outcome of Apollomics’ activities and is therefore uncertain at this time.

Table of Contents

Funding Requirements

Our primary uses of capital are, and we expect will continue to be, compensation and related expenses, third-party clinical research and development services, clinical costs, manufacturing costs, legal and other regulatory expenses and general overhead costs.

As of March 31, 2024, our significant contractual obligations consisted solely of rent obligations under a non-cancelable lease, as amended, for our current office space in Rockville, Maryland, which has a term through January 2025. Total remaining obligations under this lease as of March 31, 2024 were $631,000. In April 2024, we entered into a purchase commitment with a manufacturing vendor in the amount of $3,768,000 for 120 kg of raw materials to support the next commercial manufacturing campaign. Under the agreement, we paid a non-refundable advance of $1,130,400 to the vendor with the remainder of the purchase order due, if at all, at the completion of the produced quantity. In January 2024, we entered into a project agreement for the manufacture and supply of injectable uproleselan from active pharmaceutical ingredient for commercial sale should we receive marketing approval from the FDA. The initial term of the agreement is through year end 2026 with automatic 3-year renewal periods unless otherwise terminated by either party. We have no other fixed long-term obligations and we do not have significant capital expenditure requirements.

We have also entered into various agreements for services with third-party vendors, including agreements to conduct clinical trials, to manufacture products, and for consulting and other contracted services. These agreements include cancellable terms and we accrue the costs of these agreements based on estimates of work completed to date.

The successful development of any of our drug candidates is highly uncertain. As such, at this time, we cannot reasonably estimate or know the nature, timing and costs of the efforts that will be necessary to complete the remainder of the development of uproleselan or our other drug candidates. We are also unable to predict when, if ever, material net cash inflows will commence from uproleselan or our other drug candidates. This is due to the numerous risks and uncertainties associated with developing drugs, including the uncertainty of:

●

successful enrollment in, and completion of, clinical trials;

●

receipt of marketing approvals from applicable regulatory authorities;

●

establishing commercial manufacturing capabilities or making arrangements with third-party manufacturers;

●

obtaining and maintaining patent and trade secret protection and regulatory exclusivity for drug candidates;

●

launching commercial sales of drugs, if and when approved, whether alone or in collaboration with others; and

●

obtaining and maintaining healthcare coverage and adequate reimbursement.

A change in the outcome of any of these variables with respect to the development of any of our drug candidates would significantly change the costs and timing associated with the development of that drug candidate. Because our drug candidates are in various stages of clinical and preclinical development and the outcome of these efforts is uncertain, we cannot estimate the actual amounts necessary to successfully complete the development and commercialization of our drug candidates or whether, or when, we may achieve profitability. Until such time, if ever, as we can generate substantial product revenues, we expect to finance our cash needs through a combination of equity or debt financings and collaboration arrangements, including our existing license agreement with Apollomics. Except for amounts that we may sell under our 2022 Sales Agreement with Cowen, and Apollomics’ conditional obligations to make milestone and royalty payments to us under our license agreement, we do not have any committed external source of liquidity.

To the extent that we raise additional capital through the future sale of equity or debt, the ownership interest of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing common stockholders. If we raise additional funds through the issuance of convertible debt securities, these securities could contain covenants that would restrict our operations.

Table of Contents

We may require additional capital beyond our currently anticipated amounts. Additional capital may not be available on reasonable terms, or at all. If we raise additional funds through collaboration arrangements in the future, we may have to relinquish valuable rights to our drug candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our drug development or future commercialization efforts or grant rights to develop and market drug candidates that we would otherwise prefer to develop and market ourselves.

Going Concern

The accompanying financial statements included in this report have been prepared assuming that we will continue as a going concern within one year after the date that the financial statements are issued. During 2023, we incurred a net loss of $36.9 million and had net cash flows used in operating activities of $34.9 million. At March 31, 2024, we had $31.3 million in cash and cash equivalents and had no committed source of additional funding from either debt or equity financings, although we may, in our discretion, sell equity securities under the 2022 Sales Agreement described above, subject to certain conditions and limitations. Management believes that given our current cash position and forecasted negative cash flows from operating activities over the next twelve months as we continue our product development activities, there is substantial doubt about our ability to continue as a going concern beyond the date that is one year from the date that the financial statements included in this report are issued, without obtaining additional financing or entering into another form of non-equity or debt arrangement.

Outlook

Based on our research and development plans and our timing expectations related to the progress of our programs, we expect that our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements through the fourth quarter of 2024. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect. Additionally, the process of testing drug candidates in clinical trials is costly, and the timing of progress in these trials is uncertain. Further, considering the results of the pivotal Phase 3 clinical trial of uproleselan in R/R AML patients, we plan to reduce expenses in the upcoming months in order to preserve capital while we evaluate our operating plans.

Cash Flows

The following is a summary of our cash flows for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(in thousands)	2024		2023
Net cash provided by (used in):
Operating activities	$	(10,509)	$	(11,607)
Investing activities		(7)		(2)
Financing activities		5		28,741
Net change in cash and cash equivalents	$	(10,511)	$	17,132

Operating Activities

Net cash used in operating activities for the three months ended March 31, 2024 and 2023 was primarily the result of pre-commercialization efforts and clinical and manufacturing costs associated with our uproleselan clinical development programs. These cash expenses were offset by non-cash expenses for stock-based compensation, lease expense and depreciation.

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2024 and 2023 was for computer and laboratory equipment and was not material.

Table of Contents

Financing Activities

Net cash provided by financing activities during the three months ended March 31, 2024 consisted of proceeds received from stock option exercises. Net cash provided by financing activities during the three months ended March 31, 2023 primarily consisted of the net proceeds received from sales of our common stock under the 2022 Sales Agreement of $28.7 million.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Item 10 of Regulation S-K and are not required to provide the information otherwise required under this item.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, refers to controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

In designing and evaluating our disclosure controls and procedures, management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate.

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2024, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date at the reasonable assurance level.

(b) Changes in Internal Controls Over Financial Reporting

There have not been any changes in our internal controls over financial reporting during our fiscal quarter ended March 31, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are subject to litigation and claims arising in the ordinary course of business. We are not currently a party to any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results, cash flows or financial condition.

Table of Contents

ITEM 1A. RISK FACTORS

Our business is subject to risks and events that, if they occur, could adversely affect our financial condition and results of operations and the trading price of our securities. Except as set forth below our risk factors as of the date of this quarterly report on Form 10-Q have not changed materially from those described in “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 27, 2024.

We will need substantial additional funding to pursue our business objectives. If we are unable to raise capital when needed, we may not be able to continue as a going concern and could be forced to delay, reduce or eliminate our drug development programs or potential commercialization efforts.

We believe that our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements through the fourth quarter of 2024. However, we will need to obtain substantial additional funding in connection with our continuing operations. In May 2024, we announced results of our pivotal Phase 3 clinical trial of uproleselan in Relapsed/Refractory (R/R) Acute Myeloid Leukemia (AML). The study of uproleselan combined with chemotherapy did not meet its primary endpoint of overall survival in the intent to treat population. Considering these results, our future capital requirements will depend on many factors, including:

●

the scope, progress, results and costs of preclinical development, laboratory testing and clinical trials for our drug candidates;

●

the number and development requirements of other drug candidates that we may pursue;

●

the costs, timing and outcome of regulatory review of our drug candidates;

●

the costs and timing of future commercialization activities, including product manufacturing, marketing, sales and distribution, for any of our drug candidates for which we receive marketing approval;

●

the revenue, if any, received from commercial sales of our drug candidates for which we receive marketing approval;

●

the costs and timing of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending any intellectual property-related claims; and

●

the extent to which we acquire or in-license other drug candidates and technologies.

Our management must periodically evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern. Based on our current cash position, our ongoing significant operating losses, the results from our pivotal Phase 3 clinical trial of uproleselan in R/R AML and the fact that we do not have any committed sources of revenue or cash flows other than potential payments from our license and collaboration agreements, management believes that, given our current cash position, there is substantial doubt about our ability to continue as a going concern beyond the fourth quarter of 2024.

Identifying potential drug candidates and conducting preclinical testing and clinical trials is a time-consuming, expensive and uncertain process that takes years to complete, and we or any current or future collaborators may never generate the necessary data or results required to obtain regulatory approval and achieve product sales. In addition, our drug candidates, if approved, may not achieve commercial success. Accordingly, our ability to fund our operations is dependent upon management’s plans, which include raising additional capital in the near term primarily through a combination of equity and debt financings, collaborations and strategic alliances. There can be no assurances that new financings or other transactions will be available to us on commercially acceptable terms, or at all. Our ability to raise additional capital may also be adversely impacted by global economic conditions and disruptions to and volatility in the credit and financial markets in the United States and worldwide. If we are unable to raise capital to fund our operations when needed or on attractive terms, we could be forced to delay, reduce the scope of or eliminate our research and development programs or any future commercialization efforts, which would have a material adverse effect on our business, financial condition, results of operations and ability to operate as a going concern.

Table of Contents

We have only one drug candidate in a late-stage clinical trial. All of our other drug candidates are in earlier stages of clinical trials or in preclinical development. If we or our collaborators are unable to commercialize our drug candidates or experience significant delays in doing so, our business will be materially harmed.

Uproleselan is our only drug candidate that is in a Phase 2 or Phase 3 clinical trial. Our other drug candidates are in earlier stages of clinical trials or in preclinical development. In May 2024, we announced results of our pivotal Phase 3 clinical trial of uproleselan in R/R AML. The study of uproleselan combined with chemotherapy did not meet its primary endpoint of overall survival in the intent to treat population. We have not completed the development of any drug candidates, we currently generate no revenue from the sale of any drugs and we may never be able to develop a marketable drug. As a company, we have no experience in submitting and obtaining FDA approval for an NDA and, even if our other uproleselan trials are successful, FDA may disagree with our interpretation of the data and our NDA may receive either a refusal to file letter or complete response letter. We have invested substantially all of our efforts and financial resources in the development of our glycomimetics platform, the identification of potential drug candidates

using that platform and the development of our drug candidates. Our ability to generate revenue from our other drug candidates, which we do not expect to occur for many years, if ever, will depend heavily on their successful development and eventual commercialization. The success of those drug candidates will depend on several factors, including:

●

successful completion of preclinical studies and clinical trials;

●

receipt of marketing approvals from applicable regulatory authorities;

●

obtaining and maintaining patent and trade secret protection and regulatory exclusivity for our drug candidates;

●

making arrangements with third-party manufacturers for, or establishing, commercial manufacturing capabilities;

●

launching commercial sales of the drugs, if and when approved, whether alone or in collaboration with others;

●

acceptance of the drugs, if and when approved, by patients, the medical community and third-party payors;

●

effectively competing with other therapies;

●

obtaining and maintaining healthcare coverage and adequate reimbursement;

●

protecting our rights in our intellectual property portfolio; and

●

maintaining a continued acceptable safety profile of the drugs following approval.

If we do not achieve one or more of these factors in a timely manner or at all, we could experience significant delays or an inability to successfully commercialize our drug candidates, which would materially harm our business.

Clinical drug development involves a lengthy and expensive process, with an uncertain outcome. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our drug candidates.

The risk of failure of our drug candidates is high. It is impossible to predict when or if any of our drug candidates will prove safe or effective in humans or will receive regulatory approval. Before obtaining marketing approval from regulatory authorities for the sale of any drug candidate, we or a collaborator must complete preclinical development and then conduct extensive clinical trials to demonstrate the safety and efficacy of the drug candidate in humans. Clinical testing is expensive, difficult to design and implement, can take many years to complete and is uncertain as to outcome. A failure of one or more clinical trials can occur at any stage of development. For example, in May 2024, we announced results of our pivotal Phase 3 clinical trial of uproleselan in R/R AML. Even though we observed favorable results in earlier trials of uproleselan, uproleselan combined with chemotherapy did not meet the primary endpoint of overall survival in the intent to treat population in our Phase 3 trial. In general, the outcome of preclinical testing and early clinical trials may not be predictive of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. In addition, changes in patient treatment options over time may make the relevance of historical control data for a given indication less relevant to the drug candidate being studied, which could impact the

Table of Contents

success of the trial or, even if successful, the desirability of a successful drug candidate versus other available treatment options. Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed their drug candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing approval of their drugs.

We or our current or future collaborators may experience numerous unforeseen events during, or as a result of, clinical trials that could delay or prevent our or their ability to receive marketing approval or commercialize our drug candidates, including:

●

regulators or institutional review boards may not authorize us or our investigators to commence a clinical trial or conduct a clinical trial at a prospective trial site;

●

we may experience delays in reaching, or fail to reach, agreement on acceptable clinical trial contracts or clinical trial protocols with prospective trial sites;

●

clinical trials of our drug candidates may produce negative or inconclusive results, including failure to demonstrate statistical significance, and we may decide, or regulators may require us, to conduct additional clinical trials or abandon drug development programs;

●

the number of patients required for clinical trials of our drug candidates may be larger than we anticipate, enrollment in these clinical trials may be slower than we anticipate or participants may drop out of these clinical trials at a higher rate than we anticipate;

●

our third-party contractors may fail to comply with regulatory requirements or meet their contractual obligations to us in a timely manner, or at all;

●

regulators or institutional review boards may require that we or our investigators suspend or terminate clinical research for various reasons, including noncompliance with regulatory requirements or a finding that the participants are being exposed to unacceptable health risks;

●

the cost of clinical trials of our drug candidates may be greater than we anticipate;

●

the supply or quality of our drug candidates or other materials necessary to conduct clinical trials of our drug candidates may be insufficient or inadequate; and

●

our drug candidates may have undesirable side effects or other unexpected characteristics, causing us or our investigators, regulators or institutional review boards to suspend or terminate the trials.

If we are required to conduct additional clinical trials or other testing of our drug candidates beyond those that we currently contemplate, if we are unable to successfully complete clinical trials of our drug candidates or other testing, if the results of these clinical trials or tests are not positive or are only modestly positive or if there are safety concerns, we may:

●

be delayed in obtaining marketing approval for our drug candidates;

●

not obtain marketing approval at all;

●

obtain approval for indications or patient populations that are not as broad as intended or desired;

●

obtain approval with labeling that includes significant use or distribution restrictions or safety warnings;

●

be subject to additional post-marketing testing requirements; or

●

have the drug removed from the market after obtaining marketing approval.

Our drug development costs will also increase if we experience delays in testing or marketing approvals. We do not know whether any of our preclinical studies or clinical trials will begin as planned, will need to be restructured or will be completed on schedule, or at all. Significant preclinical study or clinical trial delays also could shorten any periods during which we may have the exclusive right to commercialize our drug candidates or allow our competitors to bring drugs to market before we do, and thereby impair our ability to successfully commercialize our drug candidates.

Table of Contents

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 5. OTHER INFORMATION

During the three months ended March 31, 2024, none of our directors and officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) adopted or terminated any contracts, instructions or written plans for the purchase or sale of our securities.

ITEM 6. EXHIBITS


Exhibit No.		Document

3.1		Amended and Restated Certificate of Incorporation of the Registrant (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 001-36177), filed with the Commission on January 15, 2014).

3.2		Amended and Restated Bylaws of the Registrant (incorporated herein by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No. 001-36177), filed with the Commission on January 15, 2014).

4.1		Specimen stock certificate evidencing shares of Common Stock (incorporated herein by reference to Exhibit 4.2 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 (File No. 333-191567), filed with the Commission on October 31, 2013).

10.1†		Project Agreement dated January 2, 2024 with Patheon Manufacturing Services LLC, part of Thermo Fisher Scientific (incorporated herein by reference to Exhibit 10.20 to the Registrant’s Annual Report on Form 10-K (File No. 001-36177), filed with the Commission on March 27, 2024).

31.1*		Certification of Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act.

31.2*		Certification of Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act.

32.1**		Certifications of Principal Executive Officer and Principal Financial Officer under Section 906 of the Sarbanes-Oxley Act.

101.INS		XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document)

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

** These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

†	Certain portions of this exhibit (indicated by asterisks) have been omitted because they are not material and would likely cause competitive harm to the registrant if publicly disclosed.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	GLYCOMIMETICS, INC.

Date: May 9, 2024	By:	/s/ Brian M. Hahn
		Brian M. Hahn
		Senior Vice President and Chief Financial Officer
		(On behalf of the Registrant and as Principal Financial Officer)

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Harout Semerjian, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2024 of GlycoMimetics, Inc. (the “registrant”);

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024


		/s/ Harout Semerjian
		Harout Semerjian
		Chief Executive Officer
		(principal executive officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian M. Hahn, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2024 of GlycoMimetics, Inc. (the “registrant”);

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(a)

(b)

(c)

(d)

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2024


		/s/ Brian M. Hahn
		Brian M. Hahn
		Senior Vice President and Chief Financial Officer
		(principal financial officer)

Exhibit 32.1

CERTIFICATIONS OF

PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Harout Semerjian, Chief Executive Officer of GlycoMimetics, Inc. (the “Company”), and Brian M. Hahn, Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

1.	The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024, to which this Certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2.	The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

IN WITNESS WHEREOF, the undersigned have set their hands hereto as of the 9^th day of May 2024.


/s/ Harout Semerjian		/s/ Brian M. Hahn
Harout Semerjian		Brian M. Hahn
Chief Executive Officer		Senior Vice President and Chief Financial Officer

This certification accompanies the Periodic Report to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of GlycoMimetics, Inc. under the Securities Act of 1933, as amended, or the Exchange Act (whether made before or after the date of the Periodic Report), irrespective of any general incorporation language contained in such filing.

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 07, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2024
Entity File Number	001-36177
Entity Registrant Name	GlycoMimetics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1686563
Entity Address, Address Line One	9708 Medical Center Drive
Entity Address, City or Town	Rockville
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20850
City Area Code	240
Local Phone Number	243-1201
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	GLYC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		64,464,412
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001253689
Current Fiscal Year End Date	--12-31
Amendment Flag	false

Balance Sheets - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 31,281,460	$ 41,792,830
Prepaid expenses and other current assets	1,985,933	1,997,904
Total current assets	33,267,393	43,790,734
Prepaid research and development expenses	192,268	603,737
Operating lease right-of-use asset	598,257	767,828
Other assets	146,995	154,176
Total assets	34,204,913	45,316,475
Current liabilities:
Accounts payable	755,534	868,115
Accrued expenses	3,907,840	5,225,557
Lease liabilities	630,827	741,558
Total current liabilities	5,294,201	6,835,230
Lease liabilities, net of current portion		66,844
Total liabilities	5,294,201	6,902,074
Stockholders' equity:
Preferred stock; $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2023 and December 31, 2022
Common stock; $0.001 par value; 100,000,000 shares authorized; 64,393,744 shares issued and outstanding at December 31, 2023; 54,377,798 shares issued and outstanding at December 31, 2022	64,451	64,394
Additional paid-in capital	496,068,140	494,835,219
Accumulated deficit	(467,221,879)	(456,485,212)
Total stockholders' equity	28,910,712	38,414,401
Total liabilities and stockholders' equity	$ 34,204,913	$ 45,316,475

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Balance Sheets
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	64,450,835	64,393,744
Common stock, shares outstanding	64,450,835	64,393,744

Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Costs and expenses:
Research and development expense	$ 6,025,461	$ 5,418,706
General and administrative expense	5,089,566	5,522,312
Total costs and expenses	11,115,027	10,941,018
Loss from operations	(11,115,027)	(10,941,018)
Interest income	378,360	581,668
Net loss and comprehensive loss	$ (10,736,667)	$ (10,359,350)
Basic net loss per common share (in dollars per share)	$ (0.17)	$ (0.17)
Diluted net loss per common share (in dollars per share)	$ (0.17)	$ (0.17)
Basic weighted-average number of common shares outstanding (in shares)	64,457,233	60,350,127
Diluted weighted-average number of common shares outstanding (in shares)	64,457,233	60,350,127

Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2022	$ 54,378	$ 462,461,251	$ (419,585,792)	$ 42,929,837
Balance, shares at Dec. 31, 2022	54,377,798
Issuance of common stock, net of issuance costs	$ 9,823	28,697,188		28,707,011
Issuance of common stock, net of issuance costs, shares	9,822,930
Exercise of options and vesting of restricted stock units	$ 44	33,724		33,768
Exercise of options and vesting of restricted stock units, shares	44,496
Stock-based compensation		870,180		870,180
Net Income (Loss)			(10,359,350)	(10,359,350)
Balance at Mar. 31, 2023	$ 64,245	492,062,343	(429,945,142)	62,181,446
Balance, shares at Mar. 31, 2023	64,245,224
Balance at Dec. 31, 2023	$ 64,394	494,835,219	(456,485,212)	38,414,401
Balance, shares at Dec. 31, 2023	64,393,744
Issuance of common stock for services	$ 15	35,985		36,000
Issuance of common stock for services, shares	15,256
Exercise of options and vesting of restricted stock units	$ 42	4,856		4,898
Exercise of options and vesting of restricted stock units, shares	41,835
Stock-based compensation		1,192,080		1,192,080
Net Income (Loss)			(10,736,667)	(10,736,667)
Balance at Mar. 31, 2024	$ 64,451	$ 496,068,140	$ (467,221,879)	$ 28,910,712
Balance, shares at Mar. 31, 2024	64,450,835

Statements of Cash Flows - USD ($)	3 Months Ended		12 Months Ended
Statements of Cash Flows - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Operating activities
Net loss	$ (10,736,667)	$ (10,359,350)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	14,620	43,839
Non-cash lease expense	169,571	219,119
Issuance of common stock for services	36,000
Stock-based compensation	1,192,080	870,180
Changes in assets and liabilities:
Prepaid expenses and other current assets	11,971	(240,103)
Prepaid research and development expenses	411,469
Accounts payable	(112,581)	(490,040)
Accrued expenses	(1,317,717)	(1,383,683)
Lease liabilities	(177,575)	(266,821)
Net cash used in operating activities	(10,508,829)	(11,606,859)	$ (34,900,000)
Investing activities
Purchases of property and equipment	(7,439)	(2,197)
Net cash used in investing activities	(7,439)	(2,197)
Financing activities
Proceeds from issuance of common stock, net of issuance costs		28,707,011
Proceeds from exercise of stock options	4,898	33,768
Net cash provided by financing activities	4,898	28,740,779
Net change in cash and cash equivalents	(10,511,370)	17,131,723
Cash and cash equivalents, beginning of period	41,792,830	47,870,619	47,870,619
Cash and cash equivalents, end of period	$ 31,281,460	$ 65,002,342	$ 41,792,830

Description of the Business

3 Months Ended

Mar. 31, 2024

Description of the Business

Description of the Business

GLYCOMIMETICS, INC.

Notes to Unaudited Financial Statements

1. Description of the Business

Going Concern

3 Months Ended

Mar. 31, 2024

Going Concern

Going Concern

2. Going Concern

The financial statements do not include any adjustments that might be necessary if the Company is not able to continue as a going concern.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Significant Accounting Policies

Significant Accounting Policies

3. Significant Accounting Policies

Basis of Accounting

The accompanying unaudited financial statements were prepared based on the accrual method of accounting in accordance with U.S. generally accepted accounting principles (GAAP).

Unaudited Financial Statements

Use of Estimates

Fair Value Measurements

Concentration of Credit Risk

Revenue Recognition

Accruals for Clinical Trial Expenses

Stock-Based Compensation

A discussion of management’s methodology for developing some of the assumptions used in the valuation model follows:

Expected Dividend Yield—The Company has never declared or paid dividends and has no plans to do so in the foreseeable future.

Risk-Free Interest Rate—This is the U.S. Treasury rate for the week of each option grant during the year, having a term that most closely resembles the expected life of the option.

Net Loss Per Common Share

The treasury stock method is used to determine the dilutive effect of the Company’s stock options and restricted stock units (RSUs).

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average common shares outstanding, as they would be anti-dilutive:


	Three Months Ended March 31,
	2024	2023
Stock options and RSUs	13,546,834	11,420,012

Comprehensive Loss

Recently Issued Accounting Standards

Accounting Standards Not Yet Adopted

There have been no new accounting pronouncements that have significance, or potential significance, to the Company’s unaudited financial statements for the quarter ended March 31, 2024.

Prepaid Expenses and Other Current Assets

3 Months Ended

Mar. 31, 2024

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

4. Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets:


	March 31,		December 31,
	2024		2023
Prepaid research and development expenses	$	1,016,078	$	1,420,642
Other prepaid expenses		859,909		401,442
Other receivables		109,946		175,820
Prepaid expenses and other current assets	$	1,985,933	$	1,997,904

Accrued Expenses

3 Months Ended

Mar. 31, 2024

Accrued Expenses

Accrued Expenses

5. Accrued Expenses

The following is a summary of the Company’s accrued expenses:


	March 31,		December 31,
	2024		2023
Accrued research and development expenses	$	1,872,752	$	1,824,689
Accrued bonuses		666,617		2,561,913
Accrued consulting and other professional fees		790,989		439,192
Accrued employee benefits		566,650		399,763
Other accrued expenses		10,832		—
Accrued expenses	$	3,907,840	$	5,225,557

Operating Leases

3 Months Ended

Mar. 31, 2024

Operating Leases

Operating Leases

6. Operating Leases

The components of lease expense and related cash flows were as follows:


	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	188,310	$	231,989
Variable lease cost		99,887		183,274
Total operating lease cost	$	288,197	$	415,263

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	196,314	$	279,692

Maturities of lease liability due under these lease agreements as of March 31, 2024 were as follows:


	Operating Lease
	Obligation
April 1, 2024 - December 31, 2024	$	592,869
2025		67,401
Thereafter		—
Total		660,270
Present value adjustment		(29,443)
Present value of lease payments	$	630,827

Supplemental information related to leases were as follows:


	March 31,		December 31,
Operating Leases	2024		2023
Weighted-average remaining lease term (in years)		0.8		1.1
Weighted-average incremental borrowing rate		10.0%		10.0%

Stockholders' Equity

3 Months Ended

Mar. 31, 2024

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

At-The-Market Sales Facility

Stock-based Compensation

3 Months Ended

Mar. 31, 2024

Stock-based Compensation

Stock-based Compensation

8. Stock-based Compensation

2013 Equity Incentive Plan

Authorized Shares

A summary of the Company’s stock option activity under the 2013 Plan for the three months ended March 31, 2024 is as follows:


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	8,273,800	$	5.29	6.3
Options granted	3,094,500		3.10
Options exercised	(2,800)		1.75
Options forfeited	(597,642)		8.21
Outstanding as of March 31, 2024	10,767,858		4.50	7.5	$	4,028
Vested or expected to vest as of March 31, 2024	10,615,958		4.55	7.6		3,756
Exercisable as of March 31, 2024	5,118,477		6.52	5.3		1,758

The following is a summary of RSU activity under the 2013 Plan for the three months ended March 31, 2024:


		Weighted-Average
	Number of Shares	Grant Date
	Underlying RSUs	Fair Value
Unvested at December 31, 2023	117,157	$	3.81
Vested	(58,581)		3.81
Unvested at March 31, 2024	58,576		3.81

Issuance of Shares to Directors in Lieu of Cash Retainers for Service

Inducement Plan

A summary of the Company’s stock option activity under the Inducement Plan for the three months ended March 31, 2024 is as follows:


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	2,590,400	$	1.97	8.0
Options granted	130,000		3.20
Outstanding as of March 31, 2024	2,720,400		2.03	7.8	$	2,784
Vested or expected to vest as of March 31, 2024	2,136,200		2.04	7.9		2,184
Exercisable as of March 31, 2024	1,060,375		1.98	7.5		1,135


	2024	2023
Expected term	6.25 years	6.25 years
Expected volatility	90.37%	79.56%
Risk-free interest rate	3.89%	3.52%
Expected dividend yield	0%	0%

Stock-based compensation expense was classified on the statements of operations as follows for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Research and development expense	$	348,242	$	237,931
General and administrative expense		843,838		632,249
Total stock-based compensation expense	$	1,192,080	$	870,180

Income Taxes

3 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

9. Income Taxes

License and Collaboration Agreements

3 Months Ended

Mar. 31, 2024

License and Collaboration Agreements

License and Collaboration Agreements

10. License and Collaboration Agreements

Apollomics

●

a non-exclusive license to conduct preclinical research with respect to Products in the Field outside of the Territory for the purposes of developing such Products for use in the Territory.

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events

Subsequent Events

11. Subsequent Events

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Significant Accounting Policies

Basis of Accounting

The accompanying unaudited financial statements were prepared based on the accrual method of accounting in accordance with U.S. generally accepted accounting principles (GAAP).

Unaudited Financial Statements

Use of Estimates

Fair Value Measurements

Concentration of Credit Risk

Revenue Recognition

Accruals for Clinical Trial Expenses

Stock-Based Compensation

A discussion of management’s methodology for developing some of the assumptions used in the valuation model follows:

Expected Dividend Yield—The Company has never declared or paid dividends and has no plans to do so in the foreseeable future.

Risk-Free Interest Rate—This is the U.S. Treasury rate for the week of each option grant during the year, having a term that most closely resembles the expected life of the option.

Net Loss Per Common Share

The treasury stock method is used to determine the dilutive effect of the Company’s stock options and restricted stock units (RSUs).

The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average common shares outstanding, as they would be anti-dilutive:


	Three Months Ended March 31,
	2024	2023
Stock options and RSUs	13,546,834	11,420,012

Comprehensive Loss

Recently Issued Accounting Standards

Accounting Standards Not Yet Adopted

There have been no new accounting pronouncements that have significance, or potential significance, to the Company’s unaudited financial statements for the quarter ended March 31, 2024.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Significant Accounting Policies

Potentially dilutive securities outstanding


	Three Months Ended March 31,
	2024	2023
Stock options and RSUs	13,546,834	11,420,012

Prepaid Expenses and Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2024

Prepaid Expenses and Other Current Assets

Summary of Prepaid Expenses and Other Current Assets

The following is a summary of the Company’s prepaid expenses and other current assets:


	March 31,		December 31,
	2024		2023
Prepaid research and development expenses	$	1,016,078	$	1,420,642
Other prepaid expenses		859,909		401,442
Other receivables		109,946		175,820
Prepaid expenses and other current assets	$	1,985,933	$	1,997,904

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Accrued Expenses

Summary of Accrued Expenses


	March 31,		December 31,
	2024		2023
Accrued research and development expenses	$	1,872,752	$	1,824,689
Accrued bonuses		666,617		2,561,913
Accrued consulting and other professional fees		790,989		439,192
Accrued employee benefits		566,650		399,763
Other accrued expenses		10,832		—
Accrued expenses	$	3,907,840	$	5,225,557

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2024

Operating Leases

Components of lease expense and related cash flows


	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	188,310	$	231,989
Variable lease cost		99,887		183,274
Total operating lease cost	$	288,197	$	415,263

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	196,314	$	279,692

Maturities of lease liabilities due


	Operating Lease
	Obligation
April 1, 2024 - December 31, 2024	$	592,869
2025		67,401
Thereafter		—
Total		660,270
Present value adjustment		(29,443)
Present value of lease payments	$	630,827

Schedule of supplemental information related to leases


	March 31,		December 31,
Operating Leases	2024		2023
Weighted-average remaining lease term (in years)		0.8		1.1
Weighted-average incremental borrowing rate		10.0%		10.0%

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Weighted-Average Fair Value of Options Granted


	2024	2023
Expected term	6.25 years	6.25 years
Expected volatility	90.37%	79.56%
Risk-free interest rate	3.89%	3.52%
Expected dividend yield	0%	0%

Stock-Based Compensation Expense


	Three Months Ended March 31,
	2024		2023
Research and development expense	$	348,242	$	237,931
General and administrative expense		843,838		632,249
Total stock-based compensation expense	$	1,192,080	$	870,180

2013 Equity Incentive Plan

Company's Stock Option Activity

A summary of the Company’s stock option activity under the 2013 Plan for the three months ended March 31, 2024 is as follows:


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	8,273,800	$	5.29	6.3
Options granted	3,094,500		3.10
Options exercised	(2,800)		1.75
Options forfeited	(597,642)		8.21
Outstanding as of March 31, 2024	10,767,858		4.50	7.5	$	4,028
Vested or expected to vest as of March 31, 2024	10,615,958		4.55	7.6		3,756
Exercisable as of March 31, 2024	5,118,477		6.52	5.3		1,758

Summary of RSU Activity

The following is a summary of RSU activity under the 2013 Plan for the three months ended March 31, 2024:


		Weighted-Average
	Number of Shares	Grant Date
	Underlying RSUs	Fair Value
Unvested at December 31, 2023	117,157	$	3.81
Vested	(58,581)		3.81
Unvested at March 31, 2024	58,576		3.81

Inducement Plan

Company's Stock Option Activity


				WEIGHTED-
		WEIGHTED-		AVERAGE		AGGEGATE
		AVERAGE		REMAINING		INTRINSIC
	OUTSTANDING	EXERCISE		CONTRACTUAL		VALUE
	OPTIONS	PRICE		TERM (YEARS)		(IN THOUSANDS)
Outstanding as of December 31, 2023	2,590,400	$	1.97	8.0
Options granted	130,000		3.20
Outstanding as of March 31, 2024	2,720,400		2.03	7.8	$	2,784
Vested or expected to vest as of March 31, 2024	2,136,200		2.04	7.9		2,184
Exercisable as of March 31, 2024	1,060,375		1.98	7.5		1,135

Description of the Business (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Description of the Business
Accumulated deficit	$ (467,221,879)	$ (456,485,212)

Going Concern (Details) - USD ($)	3 Months Ended		12 Months Ended
Going Concern (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Going Concern
Net loss	$ 10,736,667	$ 10,359,350	$ 36,900,000
Net cash flows used in operating activities	10,508,829	$ 11,606,859	34,900,000
Cash and cash equivalents	$ 31,281,460		$ 41,792,830

Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair Value Measurements
Assets transfer measured at fair value	$ 0	$ 0
Level 1
Fair Value Measurements
Carrying value of cash held in money market fund	25,200,000		$ 38,800,000
Level 2
Fair Value Measurements
Assets measured at fair value levels 2 or 3	0		0
Liabilities measured at fair value levels 2 or 3	0		0
Level 3
Fair Value Measurements
Assets measured at fair value levels 2 or 3	0		0
Liabilities measured at fair value levels 2 or 3	$ 0		$ 0

Summary of Significant Accounting Policies - Potentially Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock options and restricted stock units
Anti-dilutive securities	13,546,834	11,420,012

Summary of Significant Accounting Policies - Stock-Based Compensation (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Contribution Plan Disclosure
Expected term	6 years 3 months	6 years 3 months
Maximum
Defined Contribution Plan Disclosure
Expiration period	10 years

Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Prepaid Expenses and Other Current Assets
Prepaid research and development expenses	$ 1,016,078	$ 1,420,642
Other prepaid expenses	859,909	401,442
Other receivables	109,946	175,820
Prepaid expenses and other current assets	$ 1,985,933	$ 1,997,904

Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accrued Expenses
Accrued research and development expenses	$ 1,872,752	$ 1,824,689
Accrued bonuses	666,617	2,561,913
Accrued consulting and other professional fees	790,989	439,192
Accrued employee benefits	566,650	399,763
Other accrued expenses	10,832
Accrued expenses	$ 3,907,840	$ 5,225,557

Operating Leases (Details)	3 Months Ended
Operating Leases (Details)	Mar. 31, 2024 lease	Apr. 30, 2023 ft²	May 31, 2016 USD ($)
Operating leases
Lease, Practical Expedient, Lessor Single Lease Component [true false]	true
Security Deposit \| $			$ 52,320
Number of additional operating leases entered during the period \| lease	0
First portion of Rockville, Maryland lease
Operating leases
Square feet leased		30,000
Lessee, Operating Lease, Existence of Option to Extend [true false]	true
Second portion of Rockville, Maryland lease
Operating leases
Square feet leased		12,000

Operating Leases - Components of lease expense (Details)	3 Months Ended
	Mar. 31, 2024 USD ($)
Components of lease expense
Operating lease cost	$ 188,310
Variable lease cost	99,887
Total operating lease cost	288,197
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$ 196,314

Operating Leases - Maturities of lease liability (Details)	Mar. 31, 2024 USD ($)
Maturities of lease liability due
April 1, 2024 - December 31, 2024	$ 592,869
2025	67,401
Thereafter
Total	660,270
Present value adjustment	(29,443)
Present value of lease payments	$ 630,827
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Operating Lease, Liability, Current, Operating Lease, Liability, Noncurrent

Operating Leases - Supplemental Information (Details)	Mar. 31, 2024	Dec. 31, 2023
Operating Leases
Weighted-average remaining lease term (in years)	9 months 18 days	1 year 1 month 6 days
Weighted-average incremental borrowing rate	10.00%	10.00%

Stockholders' Equity (Details) - 2022 Sales Agreement - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022
Equity offerings
Issuance of common stock, net of issuance costs, shares	0	9,822,930
Price per share		$ 3.01
Aggregate net proceeds from stock sale		$ 28.7
Common stock available for sale under agreement	$ 66.0
Maximum
Equity offerings
Common stock available for sale under agreement			$ 100.0

Stock-based Compensation - Incentive Plans (Details) - USD ($)	1 Months Ended			3 Months Ended
	May 31, 2022	Jan. 31, 2022	Jan. 31, 2014	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Incentive plans
Fair value of shares vested				$ 305,219	$ 181,032
2013 Equity Incentive Plan
Incentive plans
Percent of shares subject to option grant that will vest			25.00%
Period from date of termination that any vested options shall expire			90 days
Expiration period			10 years
Unrecognized compensation expense related to unvested options				$ 10,785,346
Period for unrecognized compensation expense related to unvested options yet has not been recognized				3 years 6 months
Intrinsic value of options exercised				$ 3,758	23,760
Cash proceeds from exercise of stock options				$ 4,898	33,768
Shares issued from exercise of stock options				2,800
Fair value of shares vested				$ 1,394,896	$ 704,311
Authorized shares
Common stock authorized			1,000,000	14,257,627
Shares available for future grants				2,597,377
Maximum number of shares that may be issued pursuant to exercise of incentive stock options			20,000,000
Increase in number of shares of common stock	2,619,622
Maximum percentage of shares of common stock issued and outstanding on the immediately preceding fiscal year, or such lesser number of shares as determined by the board of directors or the compensation committee						4.00%
2013 Equity Incentive Plan \| Stock options vesting based on performance
Incentive plans
Maximum fair value of option excluded from the unrecognized compensation expense				$ 825,353
2013 Equity Incentive Plan \| Stock options vesting based on performance \| Employees
Incentive plans
Maximum fair value of option excluded from the unrecognized compensation expense		$ 133,820
2013 Equity Incentive Plan \| RSU
Incentive plans
Unrecognized compensation expense related to RSU grants				$ 179,660
2013 Equity Incentive Plan \| RSU \| Employees
Incentive plans
Period for unrecognized compensation expense related to unvested options yet has not been recognized				9 months 18 days
2013 Equity Incentive Plan \| Each month after the first anniversary
Incentive plans
Percent of shares subject to option grant that will vest			2.08%

Stock-based Compensation - Company's Stock Option Activity (Details) - 2013 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2022	Mar. 31, 2024	Dec. 31, 2023
OUTSTANDING OPTIONS
Outstanding at beginning of period		8,273,800
Options granted		3,094,500
Options exercised		(2,800)
Options forfeited		(597,642)
Outstanding at end of period		10,767,858	8,273,800
WEIGHTED-AVERAGE EXERCISE PRICE
Outstanding at beginning of period		$ 5.29
Options granted		3.10
Options exercised		1.75
Options forfeited		8.21
Outstanding at end of period		$ 4.50	$ 5.29
VESTED AND EXPECTED TO VEST
Outstanding options		10,615,958
Weighted-Average Exercise Price		$ 4.55
Weighted-Average Remaining Contractual Term		7 years 7 months 6 days
Aggregate Intrinsic Value (in thousands)		$ 3,756
ADDITIONAL DISCLOSURES
Outstanding options exercisable at end of period		5,118,477
Weighted-average exercise price exercisable at end of period		$ 6.52
Weighted-average contractual term outstanding		7 years 6 months	6 years 3 months 18 days
Weighted-average contractual term (years) exercisable		5 years 3 months 18 days
Aggregate intrinsic value (in thousands) outstanding at end of period		$ 4,028
Aggregate intrinsic value (in thousands) exercisable at end of period		$ 1,758
Employees \| Stock options vesting based on performance
OUTSTANDING OPTIONS
Options granted	151,900
Newly hired employees \| Stock options vesting based on performance
OUTSTANDING OPTIONS
Options granted		584,200

Stock-based Compensation - Summary of RSU Activity (Details) - 2013 Equity Incentive Plan	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Restricted Stock Units information
Period for unrecognized compensation expense related to unvested options yet has not been recognized	3 years 6 months
RSU
NUMBER OF SHARES
Unvested at beginning of period \| shares	117,157
Vested \| shares	(58,581)
Unvested at end of period \| shares	58,576
WEIGHTED-AVERAGE GRANT DATE FAIR VALUE
Unvested at beginning of period \| $ / shares	$ 3.81
Vested \| $ / shares	3.81
Unvested at end of period \| $ / shares	$ 3.81
RSU \| Employees
Restricted Stock Units information
Vesting period	4 years
Period for unrecognized compensation expense related to unvested options yet has not been recognized	9 months 18 days

Stock-based Compensation - Issuance of Shares to Directors in Lieu of Cash Retainers for Service (Details) - Non-employee - Other Awards - Director	3 Months Ended
	Mar. 31, 2024 shares
Share-based Compensation Arrangement by Share-based Payment Award
Common stock shares issued	13,127
Share-Based Payment Arrangement, Grantee Status [Extensible Enumeration]	Non-employee

Stock-based Compensation - Inducement Plan (Details)	1 Months Ended		3 Months Ended
Stock-based Compensation - Inducement Plan (Details)	Jan. 31, 2022 shares	Jan. 31, 2020 installment	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award
Fair value of shares vested \| $			$ 305,219	$ 181,032
Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award
Period from date of termination that any vested options shall expire		90 days
Expiration period		10 years
Unrecognized compensation expense related to unvested options \| $			$ 1,621,972
Period for unrecognized compensation expense related to unvested options yet has not been recognized			2 years 6 months
Options granted			130,000
Options exercised			0	0
Inducement Plan \| Upon first anniversary of start date
Share-based Compensation Arrangement by Share-based Payment Award
Vesting percentage		25.00%
Inducement Plan \| Each month after the first anniversary
Share-based Compensation Arrangement by Share-based Payment Award
Number of monthly installments \| installment		36
Common Stock \| Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award
Increase in number of shares of common stock	3,000,000
Shares available for future grants			269,508

Stock-based Compensation - Inducement Plan - Stock Option Activity (Details) - Inducement Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
OUTSTANDING OPTIONS
Outstanding at beginning of period	2,590,400
Options granted	130,000
Outstanding at end of period	2,720,400	2,590,400
WEIGHTED-AVERAGE EXERCISE PRICE
Outstanding at beginning of period	$ 1.97
Options granted	3.20
Outstanding at end of period	$ 2.03	$ 1.97
VESTED AND EXPECTED TO VEST
Outstanding options	2,136,200
Weighted-Average Exercise Price	$ 2.04
Weighted-Average Remaining Contractual Term	7 years 10 months 24 days
Aggregate Intrinsic Value (in thousands)	$ 2,184
ADDITIONAL DISCLOSURES
Outstanding options exercisable at end of period	1,060,375
Weighted-average exercise price exercisable at end of period	$ 1.98
Weighted-average contractual term outstanding	7 years 9 months 18 days	8 years
Weighted-average contractual term (years) exercisable	7 years 6 months
Aggregate intrinsic value (in thousands) outstanding at end of period	$ 2,784
Aggregate intrinsic value (in thousands) exercisable at end of period	$ 1,135

Stock-based Compensation - Weighted-Average assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Weighted-average assumptions
Expected term	6 years 3 months	6 years 3 months
Expected volatility	90.37%	79.56%
Risk-free interest rate	3.89%	3.52%
Expected dividend yield	0.00%	0.00%
2013 Equity Incentive and Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award
Weighted-average fair value of the options granted	$ 2.44	$ 2.04

Stock-based Compensation - Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock-based compensation expense
Total stock-based compensation expense	$ 1,192,080	$ 870,180
Research and development expense
Stock-based compensation expense
Total stock-based compensation expense	348,242	237,931
General and administrative expense
Stock-based compensation expense
Total stock-based compensation expense	$ 843,838	$ 632,249

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Income Taxes
Income tax (benefit) provision	$ 0	$ 0

License and Collaboration Agreements (Details) - Apollomics, Inc. $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Research and License Agreements
Up-front payment received	$ 9.0
Milestones based on achievement of certain clinical and regulatory events	75.0
Milestone payment upon achievement of specified net sales thresholds for all licensed products	$ 105.0
Maximum
Research and License Agreements
Tiered percentage of annual net sales	15.00%

Subsequent Events (Details) - Subsequent Event		1 Months Ended
Subsequent Events (Details) - Subsequent Event	May 06, 2024	Apr. 30, 2024 USD ($) kg
Treated patients within clinical trial \| Median
Subsequent Event
Survival period for participants in clinical trial	13 months
Patients within placebo group of clinical trial \| Median
Subsequent Event
Survival period for participants in clinical trial	12 months 9 days
Raw materials
Subsequent Event
Minimum amount to purchase raw materials		$ 3,768,000
Minimum kilograms required to purchase \| kg		120
Non-refundable advance to vendor		$ 1,130,400

Pay vs Performance Disclosure - USD ($)	3 Months Ended
Pay vs Performance Disclosure - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (10,736,667)	$ (10,359,350)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false