Quarterly Report (10-q)
November 15 2021 - 05:01PM
Edgar (US Regulatory)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
Form 10-Q
___________________________________
(Mark One)
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the quarterly period ended
September 30, 2021
Or
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the transition period
from
to
Commission File Number:
001-34899
___________________________________
Pulse Biosciences, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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46-5696597
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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3957 Point Eden Way
Hayward,
CA
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94545
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(Address of principal executive offices)
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(Zip Code)
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(510) 906-4600
(Registrant’s telephone number, including area code)
___________________________________
Securities registered pursuant to Section 12(b) of the
Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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PLSE
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The
Nasdaq
Stock Market
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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 x 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 x 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.
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Large accelerated filer
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¨
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Accelerated filer
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¨
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Non-accelerated filer
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x
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Smaller reporting company
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x
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Emerging growth company
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x
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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.
x
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x
The number of shares outstanding of the registrant’s common stock
as of October 31, 2021:
29,631,283
TABLE
OF CONTENTS
“Pulse Biosciences,” the Pulse logos and other trademarks or
service marks that we use in connection with the operation of our
business appearing in this quarterly report on Form 10-Q (this
“Quarterly Report”), including CellFX, CellFX CloudConnect, CellFX
Marketplace, Nano-pulse Stimulation, and NPS, are the property of
Pulse Biosciences, Inc. Solely for your convenience, some of our
trademarks and trade names referred to in this Quarterly Report are
listed without the ® and TM symbols, but we will assert, to the
fullest extent under applicable law, our rights to our trademarks
and trade names. Also, this Quarterly Report may contain additional
trade names, trademarks or service marks of others, which are the
property of their respective owners. We do not intend our use or
display of any other company’s trade names, trademarks or service
marks to imply a relationship with, or endorsement or sponsorship
of us by, any of these other companies.
Unless expressly indicated or the context requires otherwise, the
terms “Pulse,” “company,” “we,” “us,” and “our,” in this document
refer to Pulse Biosciences, Inc., a Delaware corporation, and,
where appropriate, its wholly owned subsidiaries.
PART
I. FINANCIAL INFORMATION
Item 1.
Financial Statements
PULSE BIOSCIENCES,
INC.
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
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September 30,
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December 31,
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2021
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2020
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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41,991
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$
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12,463
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Investments
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—
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8,012
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Accounts receivable
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72
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—
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Inventory
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4,281
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—
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Prepaid expenses and other current assets
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2,866
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1,864
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Total current assets
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49,210
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22,339
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Property and equipment, net
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2,446
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2,478
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Intangible assets, net
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3,382
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3,882
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Goodwill
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2,791
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2,791
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Right-of-use assets
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8,954
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9,438
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Other assets
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365
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365
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Total assets
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$
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67,148
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$
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41,293
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$
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2,706
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$
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1,717
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Accrued expenses
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4,971
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5,326
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Deferred revenue
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7
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—
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Lease liability, current
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749
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542
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Note payable, current
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1,086
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—
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Total current liabilities
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9,519
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7,585
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Lease liability, less current
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10,242
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10,814
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Total liabilities
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19,761
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18,399
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Commitments and contingencies (Note 8)
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Stockholders’ equity:
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Preferred stock, $0.001
par value;
authorized
–
50,000
shares;
no
shares issued and outstanding
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—
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—
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Common stock, $0.001
par value:
authorized
–
500,000
shares; issued and outstanding –
29,631
shares and
25,550
shares at September 30, 2021 and December 31, 2020,
respectively
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29
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25
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Additional paid-in capital
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268,142
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195,410
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Accumulated other comprehensive loss
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—
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(1)
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Accumulated deficit
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(220,784)
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(172,540)
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Total stockholders’ equity
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47,387
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22,894
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Total liabilities and stockholders’ equity
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$
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67,148
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$
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41,293
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See accompanying notes to the condensed consolidated financial
statements.
PULSE
BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations and Comprehensive
Loss
(In thousands, except per share amounts)
(Unaudited)
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Three-Month Periods Ended
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Nine-Month Periods Ended
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September 30,
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September 30,
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2021
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2020
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2021
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2020
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Revenues:
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Product revenues
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$
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574
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$
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—
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$
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574
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$
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—
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Total revenues
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574
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|
—
|
|
|
574
|
|
|
—
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
727
|
|
|
—
|
|
|
727
|
|
|
—
|
|
Research and development
|
|
|
6,460
|
|
|
6,968
|
|
|
22,982
|
|
|
19,019
|
|
Sales and marketing
|
|
|
3,404
|
|
|
1,746
|
|
|
10,697
|
|
|
4,926
|
|
General and administrative
|
|
|
4,256
|
|
|
4,191
|
|
|
13,772
|
|
|
12,264
|
|
Total cost and expenses
|
|
|
14,847
|
|
|
12,905
|
|
|
48,178
|
|
|
36,209
|
|
Loss from operations
|
|
|
(14,273)
|
|
|
(12,905)
|
|
|
(47,604)
|
|
|
(36,209)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
(9)
|
|
|
9
|
|
|
(640)
|
|
|
108
|
|
Total other income (expense)
|
|
|
(9)
|
|
|
9
|
|
|
(640)
|
|
|
108
|
|
Net loss
|
|
|
(14,282)
|
|
|
(12,896)
|
|
|
(48,244)
|
|
|
(36,101)
|
|
Other comprehensive gain (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on available-for-sale securities
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(3)
|
|
Comprehensive loss
|
|
$
|
(14,282)
|
|
$
|
(12,895)
|
|
$
|
(48,243)
|
|
$
|
(36,104)
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
$
|
(0.48)
|
|
$
|
(0.51)
|
|
$
|
(1.76)
|
|
$
|
(1.60)
|
|
Weighted average shares used to compute net loss per common
share
—
basic and diluted
|
|
|
29,612
|
|
|
25,223
|
|
|
27,400
|
|
|
22,540
|
See accompanying notes to the condensed consolidated financial
statements.
PULSE
BIOSCIENCES, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Month Periods Ended
|
|
|
|
September 30,
|
|
|
|
2021
|
|
2020
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(48,244)
|
|
$
|
(36,101)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
349
|
|
|
310
|
|
Amortization of intangible assets
|
|
|
500
|
|
|
499
|
|
Stock-based compensation
|
|
|
10,990
|
|
|
7,686
|
|
Net premium amortization and discount on available-for-sale
securities
|
|
|
13
|
|
|
(6)
|
|
Loss on disposal of fixed assets
|
|
|
—
|
|
|
119
|
|
Gain on U.S. Treasury securities
|
|
|
—
|
|
|
(8)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(72)
|
|
|
—
|
|
Inventory
|
|
|
(4,281)
|
|
|
—
|
|
Prepaid expenses and other current assets
|
|
|
(2,087)
|
|
|
431
|
|
Other receivables
|
|
|
32
|
|
|
—
|
|
Right-of-use assets
|
|
|
484
|
|
|
352
|
|
Other long-term assets
|
|
|
—
|
|
|
129
|
|
Accounts payable
|
|
|
975
|
|
|
(595)
|
|
Accrued expenses
|
|
|
(355)
|
|
|
1,352
|
|
Deferred revenue
|
|
|
7
|
|
|
—
|
|
Lease liabilities
|
|
|
(365)
|
|
|
(104)
|
|
Accrued interest on note payable
|
|
|
651
|
|
|
—
|
|
Other assets
|
|
|
—
|
|
|
(174)
|
|
Net cash used in operating activities
|
|
|
(41,403)
|
|
|
(26,110)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(303)
|
|
|
(162)
|
|
Purchases of investments
|
|
|
—
|
|
|
(25,516)
|
|
Maturities of investments
|
|
|
8,000
|
|
|
4,510
|
|
Sale of investments
|
|
|
—
|
|
|
17,000
|
|
Net cash provided by (used in) investing activities
|
|
|
7,697
|
|
|
(4,168)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock under employee stock
purchase plan
|
|
|
810
|
|
|
490
|
|
Proceeds from exercises of warrants
|
|
|
4,217
|
|
|
112
|
|
Proceeds from exercises of stock options
|
|
|
678
|
|
|
349
|
|
Proceeds from issuance of common stock
|
|
|
56,697
|
|
|
29,498
|
|
Proceeds from insurance loan agreement
|
|
|
1,939
|
|
|
—
|
|
Payments made on insurance loan agreement
|
|
|
(875)
|
|
|
—
|
|
Tax payments related to shares withheld for vested restricted stock
units
|
|
|
(232)
|
|
|
—
|
|
Net cash provided by financing activities
|
|
|
63,234
|
|
|
30,449
|
|
Net increase in cash and cash equivalents
|
|
|
29,528
|
|
|
171
|
|
Cash and cash equivalents at beginning of period
|
|
|
12,463
|
|
|
6,899
|
|
Cash and cash equivalents at end of period
|
|
$
|
41,991
|
|
$
|
7,070
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of noncash investing and financing
activities:
|
|
|
|
|
|
|
|
Equipment purchases included in accounts payable and accrued
expenses
|
|
$
|
14
|
|
$
|
263
|
|
Change in unrealized gains on available-for-sale
securities
|
|
|
1
|
|
|
(3)
|
|
Accrued interest settled via issuance of common stock from private
placement equity offering from private placement equity
offering
|
|
|
629
|
|
|
—
|
|
Issuance costs for rights offering in accounts payable
|
|
|
—
|
|
|
64
|
See accompanying notes to the condensed consolidated financial
statements.
PULSE BIOSCIENCES, INC.
Condensed Consolidated Statements of Stockholders’
Equity
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Accumulated Other
|
|
|
|
|
Total
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Comprehensive
|
|
Accumulated
|
|
Stockholders’
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income (Loss)
|
|
Deficit
|
|
Equity
|
|
Balance, June 30, 2021
|
|
29,606
|
|
$
|
29
|
|
$
|
266,223
|
|
$
|
—
|
|
$
|
(206,502)
|
|
$
|
59,750
|
|
Issuance of shares under employee stock purchase plan
|
|
25
|
|
|
—
|
|
|
389
|
|
|
—
|
|
|
—
|
|
|
389
|
|
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
1,577
|
|
|
—
|
|
|
—
|
|
|
1,577
|
|
Debt extinguishment and private investment, additional issuance
costs
|
|
—
|
|
|
—
|
|
|
(47)
|
|
|
—
|
|
|
—
|
|
|
(47)
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,282)
|
|
|
(14,282)
|
|
Balance, September 30, 2021
|
|
29,631
|
|
$
|
29
|
|
$
|
268,142
|
|
$
|
—
|
|
$
|
(220,784)
|
|
$
|
47,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Accumulated Other
|
|
|
|
|
Total
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Comprehensive
|
|
Accumulated
|
|
Stockholders’
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income (Loss)
|
|
Deficit
|
|
Equity
|
|
Balance, December 31, 2020
|
|
25,550
|
|
$
|
25
|
|
$
|
195,410
|
|
$
|
(1)
|
|
$
|
(172,540)
|
|
$
|
22,894
|
|
Issuance of common stock as part of debt extinguishment and private
investment, net of issuance cost of $100
|
|
3,049
|
|
|
3
|
|
|
49,891
|
|
|
—
|
|
|
—
|
|
|
49,894
|
|
Issuance of shares upon exercise of warrants
|
|
585
|
|
|
1
|
|
|
3,333
|
|
|
—
|
|
|
—
|
|
|
3,334
|
|
Issuance of common stock as part of ATM offering
|
|
289
|
|
|
—
|
|
|
7,432
|
|
|
—
|
|
|
—
|
|
|
7,432
|
|
Issuance of common stock upon exercise of stock options
|
|
45
|
|
|
—
|
|
|
508
|
|
|
—
|
|
|
—
|
|
|
508
|
|
Issuance of shares under employee stock purchase plan
|
|
91
|
|
|
—
|
|
|
810
|
|
|
—
|
|
|
—
|
|
|
810
|
|
Issuance of common stock upon vesting of restricted stock units,
net of shares withheld for employee taxes
|
|
22
|
|
|
—
|
|
|
(232)
|
|
|
—
|
|
|
—
|
|
|
(232)
|
|
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
10,990
|
|
|
—
|
|
|
—
|
|
|
10,990
|
|
Unrealized gain on available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,244)
|
|
|
(48,244)
|
|
Balance, September 30, 2021
|
|
29,631
|
|
$
|
29
|
|
$
|
268,142
|
|
$
|
—
|
|
$
|
(220,784)
|
|
$
|
47,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Accumulated Other
|
|
|
|
|
Total
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Comprehensive
|
|
Accumulated
|
|
Stockholders’
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income (Loss)
|
|
Deficit
|
|
Equity
|
|
Balance, June 30, 2020
|
|
25,149
|
|
$
|
25
|
|
$
|
188,197
|
|
$
|
—
|
|
$
|
(145,894)
|
|
$
|
42,328
|
|
Issuance of shares upon exercise of stock options
|
|
85
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
—
|
|
|
340
|
|
Issuance of shares under employee stock purchase plan
|
|
40
|
|
|
—
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
235
|
|
Issuance of shares upon exercise of warrants
|
|
16
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
2,648
|
|
|
—
|
|
|
—
|
|
|
2,648
|
|
Rights offering, additional issuance costs
|
|
—
|
|
|
—
|
|
|
(64)
|
|
|
—
|
|
|
—
|
|
|
(64)
|
|
Unrealized gain on available-for-sale securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,896)
|
|
|
(12,896)
|
|
Balance, September 30, 2020
|
|
25,290
|
|
$
|
25
|
|
$
|
191,468
|
|
$
|
1
|
|
$
|
(158,790)
|
|
$
|
32,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Accumulated Other
|
|
|
|
|
Total
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Comprehensive
|
|
Accumulated
|
|
Stockholders’
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income (Loss)
|
|
Deficit
|
|
Equity
|
|
Balance, December 31, 2019
|
|
20,825
|
|
$
|
21
|
|
$
|
153,401
|
|
$
|
4
|
|
$
|
(122,689)
|
|
$
|
30,737
|
|
Issuance of shares upon exercise of stock options
|
|
86
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
—
|
|
|
349
|
|
Issuance of shares under employee stock purchase plan
|
|
83
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
—
|
|
|
490
|
|
Issuance of common stock and warrants in connection with rights
offering, net of issuance cost of $565
|
|
4,280
|
|
|
4
|
|
|
29,430
|
|
|
—
|
|
|
—
|
|
|
29,434
|
|
Issuance of shares upon exercise of warrants
|
|
16
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
7,686
|
|
|
—
|
|
|
—
|
|
|
7,686
|
|
Unrealized gain on available-for-sale securities
|
|
—
|
|
|
—
|
|