SEC Filing | EyePoint Pharmaceuticals

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2022

☐ 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 000-51122

EyePoint Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation or organization)		26-2774444 (I.R.S. Employer Identification No.)

480 Pleasant Street Watertown, MA (Address of principal executive offices)		02472 (Zip Code)

(617) 926-5000

(Registrant’s telephone number, including area code)

(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, par value $0.001

EYPT

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 34,082,934 shares of the registrant’s common stock, $0.001 par value, outstanding as of November 1, 2022.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements

	Condensed Consolidated Balance Sheets – September 30, 2022 and December 31, 2021	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss – Three and nine months ended September 30, 2022 and 2021	4

	Condensed Consolidated Statements of Stockholders’ Equity – Three and nine months ended September 30, 2022 and 2021	5

	Condensed Consolidated Statements of Cash Flows – nine months ended September 30, 2022 and 2021	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	36

Item 4.	Controls and Procedures	36

PART II: OTHER INFORMATION

Item 1.	Legal Proceedings	37

Item 1A.	Risk Factors	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 3.	Defaults Upon Senior Securities	40

Item 4.	Mine Safety Disclosures	40

Item 5.	Other Information	40

Item 6.	Exhibits	41

Signatures		43

Certifications

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands except share data)


	September 30,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	75,362		$	178,593
Marketable securities		81,897			32,965
Accounts and other receivables, net		20,876			18,354
Prepaid expenses and other current assets		10,436			4,217
Inventory		3,531			3,616
Total current assets		192,102			237,745
Property and equipment, net		1,015			476
Operating lease right-of-use assets		6,319			2,252
Intangible assets, net		20,904			22,749
Restricted cash		150			150
Total assets	$	220,490		$	263,372
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	6,112		$	7,385
Accrued expenses		16,004			14,422
Deferred revenue		1,169			1,069
Short-term borrowings		10,475			—
Other current liabilities		496			782
Total current liabilities		34,256			23,658
Long-term debt		29,251			36,562
Deferred revenue - noncurrent		13,798			14,560
Operating lease liabilities - noncurrent		6,235			1,860
Other long-term liabilities		600			2,352
Total liabilities		84,140			78,992
Contingencies (Note 13)
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $.001 par value, 300,000,000 shares authorized at September 30, 2022 and December 31, 2021; 34,072,155 and 33,905,826 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		34			34
Additional paid-in capital		763,562			752,602
Accumulated deficit		(627,899	)		(569,097	)
Accumulated other comprehensive income		653			841
Total stockholders' equity		136,350			184,380
Total liabilities and stockholders' equity	$	220,490		$	263,372

See notes to condensed consolidated financial statements.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Revenues:
Product sales, net	$	9,720		$	8,587		$	30,048		$	24,127
License and collaboration agreements		52			159			160			594
Royalty income		240			313			663			674
Total revenues		10,012			9,059			30,871			25,395
Operating expenses:
Cost of sales, excluding amortization of acquired intangible assets		1,405			1,825			4,916			5,144
Research and development		11,162			8,498			34,099			19,582
Sales and marketing		6,016			7,374			19,592			19,692
General and administrative		9,212			6,060			26,321			16,358
Amortization of acquired intangible assets		615			615			1,845			1,845
Total operating expenses		28,410			24,372			86,773			62,621
Loss from operations		(18,398	)		(15,313	)		(55,902	)		(37,226	)
Other income (expense):
Interest and other income, net		640			6			1,067			286
Interest expense		(662	)		(1,388	)		(2,408	)		(4,110	)
Gain (loss) on extinguishment of debt		—			—			(1,559	)		2,065
Total other expense, net		(22	)		(1,382	)		(2,900	)		(1,759	)
Net loss	$	(18,420	)	$	(16,695	)	$	(58,802	)	$	(38,985	)
Net loss per share - basic and diluted	$	(0.49	)	$	(0.58	)	$	(1.58	)	$	(1.42	)
Weighted average shares outstanding - basic and diluted		37,338			28,766			37,305			27,429

Net loss	$	(18,420	)	$	(16,695	)	$	(58,802	)	$	(38,985	)
Other comprehensive loss:
Unrealized gain (loss) on available-for-sale securities, net of tax of $0 for periods presented		51			—			(188	)		—
Comprehensive loss	$	(18,369	)	$	(16,695	)	$	(58,990	)	$	(38,985	)

See notes to condensed consolidated financial statements.

EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited)

(In thousands except share data)


	Common Stock				Additional						Accumulated Other		Total
	Number of Shares		Par Value Amount		Paid-In Capital			Accumulated Deficit			Comprehensive Income		Stockholders’ Equity
Balance at July 1, 2021		28,754,192	$	29	$	638,965		$	(532,970	)	$	841	$	106,865
Net loss		—		—		—			(16,695	)		—		(16,695	)
Issuance of stock, net of issue costs		—		—		10			—			—		10
Employee stock purchase plan		15,652		—		101			—			—		101
Exercise of stock options		251		—		1			—			—		1
Vesting of stock units		1,169		—		(5	)		—			—		(5	)
Stock-based compensation		—		—		2,471			—			—		2,471
Balance at September 30, 2021		28,771,264	$	29	$	641,543		$	(549,665	)	$	841	$	92,748

Balance at July 1, 2022		34,052,616	$	34	$	760,209		$	(609,479	)	$	602	$	151,366
Net loss		—		—		—			(18,420	)				(18,420	)
Other comprehensive loss		—		—		—			—			51		51
Issuance of stock, net of issue costs		—		—		—			—					—
Employee stock purchase plan		19,283		—		153			—					153
Exercise of stock options		256		—		1			—					1
Vesting of stock units		—		—		—			—					—
Stock-based compensation		—		—		3,199			—					3,199
Balance at September 30, 2022		34,072,155	$	34	$	763,562		$	(627,899	)	$	653	$	136,350


	Common Stock				Additional						Accumulated Other		Total
	Number of Shares		Par Value Amount		Paid-In Capital			Accumulated Deficit			Comprehensive Income		Stockholders’ Equity
Balance at January 1, 2021		18,139,981	$	18	$	528,362		$	(510,680	)	$	841	$	18,541
Net loss		—		—		—			(38,985	)		—		(38,985	)
Issuance of stock, net of issue costs		10,513,538		11		108,403			—			—		108,414
Employee stock purchase plan		43,365		—		273			—			—		273
Exercise of stock options		1,078		—		11			—			—		11
Vesting of stock units		73,302		—		(145	)		—			—		(145	)
Stock-based compensation		—		—		4,639			—			—		4,639
Balance at September 30, 2021		28,771,264	$	29	$	641,543		$	(549,665	)	$	841	$	92,748