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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

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

For the quarterly period ended June 30, 2023

OR

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

For The Transition Period FromTo

Commission file number: 001-41608

Structure Therapeutics Inc.

(Exact name of registrant as specified in its charter)

Cayman Islands

    

98-1480821

(State of Other Jurisdiction of incorporation or Organization)

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

601 Gateway Blvd., Suite 900

South San Francisco, California

94080

(Address of principal executive offices)

(Zip code)

Registrant's telephone number, including area code: (628) 229-9277

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

    

Name Of Each Exchange

    

Title of Each Class

Trading Symbol(s)

On Which Registered

American Depositary Shares (ADSs), each representing three ordinary shares, par value $0.0001 per ordinary share

Ordinary shares, par value $0.0001 per share*

GPCR

Nasdaq Global Market 

Nasdaq Global Market*

* Not for trading, but only in connection with the registration of the American Depositary Shares

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 (§232.0405 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

The aggregate number of outstanding ordinary shares of the registrant, each with par value $0.0001 per share, as of August 3, 2023, was 114,805,483, comprised of 107,394,965 ordinary shares and 7,410,518 non-voting ordinary shares. 84,684,093 ordinary shares were held in the form of ADSs.

EXPLANATORY NOTE

Structure Therapeutics Inc., or “we,” “us,” and “our,” is filing this Amendment No. 1 on Form 10-Q/A (this “Amended Filing”) to amend our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Quarterly Report”), which was originally filed with the Securities and Exchange Commission (“SEC”) on August 10, 2023 (the “Original Filing”). This Amended Filing is being filed solely for the purpose of indicating that an independent registered public accounting firm did not review the interim unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2022 (the “2022 Interim Financial Statements”). As a result, the Quarterly Report is deemed substantially deficient until the reviews of the 2022 Interim Financial Statements are completed by an independent registered public accounting firm. The headings in the columns of the 2022 Interim Financial Statements and related notes thereto have been amended to state “Not Reviewed”. Except as described herein, no other changes have been made to the Original Filing. This Amended Filing speaks as of the filing date of the Original Filing and does not reflect events occurring after the filing date of the Original Filing or modify or update any of the other information contained in the Original Filing in any way other than as expressly described in this Amended Filing. Accordingly, this Amended Filing should be read in conjunction with the Original Filing. A review of the Company’s interim unaudited financial statements may result in changes to the financial statements contained herein. We plan to file an additional amendment to our Quarterly Report when the review is completed.

2

TABLE OF CONTENTS

Page

Part I

Item 1.

Financial Statements (Unaudited)

8

Condensed Consolidated Balance Sheets

8

Condensed Consolidated Statements of Operations and Comprehensive Loss

9

Condensed Consolidated Statements of Redeemable Convertible Preferred Shares and Shareholders’ Equity (Deficit)

10

Condensed Consolidated Statements of Cash Flows

12

Notes to Unaudited Condensed Consolidated Financial Statements

13

Item 2.

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

26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

39

Item 4.

Controls and Procedures

39

Part II

Item 1.

Legal Proceedings

41

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

123

Item 3.

Defaults Upon Senior Securities

124

Item 4.

Mine Safety Disclosures

124

Item 5.

Other Information

124

Item 6.

Exhibits

125

Signatures

127

3

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Quarterly Report”), contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” "can," “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. All statements other than statements of historical facts contained in this Quarterly Report, including without limitation statements regarding:

the timing, progress and results of preclinical studies and clinical trials for our product candidates, including our product development plans and strategies;
the timing, scope and likelihood of regulatory filings and approvals, including final regulatory approval of our product candidates;
the potential benefits and market opportunity for our product candidates and discovery platform;
expectations regarding the size, scope and design of clinical trials;
our plans and strategy with respect to our drug discovery efforts and potential benefits of our discovery platform;
our manufacturing, commercialization, and marketing plans and strategies;
our plans to hire additional personnel and our ability to attract and retain such personnel;
our estimates of the number of patients who suffer from the diseases we are targeting and potential growth in our target markets;
our expectations regarding the approval and use of our product candidates;
our competitive position and the development and impact of competing therapies that are or may become available;
expectations regarding future events under collaboration and licensing agreements, including potential future payments, as well as our plans and strategies for entering into further collaboration and licensing agreements;
our intellectual property position, including the scope of protection we are able to establish and maintain for intellectual property rights covering product candidates we may develop, including the extensions of existing patent terms where available, the validity of intellectual property rights held by third parties, and our ability not to infringe, misappropriate or otherwise violate any third-party intellectual property rights;
the rate and degree of market acceptance and clinical utility of product candidates we may develop;
our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;
our future financial performance;
the period over which we estimate our existing cash, cash equivalents and short-term investments will be sufficient to fund our future operating expenses and capital expenditure requirements;
the impact of laws and regulations; and
the ongoing impact of geopolitical and macroeconomic factors.

The forward-looking statements in this Quarterly Report are only predictions and are based largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and

4

objectives, and financial needs. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of known and unknown risks, uncertainties, and assumptions, including those described under Part I. Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Part II. Item 1A. “Risk Factors” elsewhere in this Quarterly Report. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon these forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. The forward-looking statements made in this Quarterly Report relate only to events or information as of the date on which the statements are made in this Quarterly Report. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. We intend the forward-looking statements contained in this Quarterly Report to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

SUMMARY RISK FACTORS

Our business is subject to numerous risks and uncertainties, including those described in Part II. Item 1A. “Risk Factors” in this Quarterly Report. You should carefully consider these risks and uncertainties when investing in our American Depositary Shares (“ADSs”). The principal risks and uncertainties affecting our business include the following:

We have a limited operating history and have incurred significant operating losses since our inception and expect to incur significant losses for the foreseeable future.
We will require substantial additional capital to finance our operations, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate certain of our product development programs, commercialization efforts or other operations.
Our approach to the discovery of product candidates based on our technology platform is unproven, and we do not know whether we will be able to develop any products of commercial value.
We are early in our development efforts and only have two product candidates, GSBR-1290 and ANPA-0073, in early clinical development. All of our other development programs are in the preclinical or discovery stage. If we are unable to advance our product candidates in clinical development, obtain regulatory approval and ultimately commercialize our product candidates, or experience significant delays in doing so, our business will be materially harmed.
Clinical and preclinical drug development involves a lengthy and expensive process with uncertain timelines and outcomes. The results of prior clinical trials and preclinical studies are not necessarily predictive of future results, and may not be favorable, or receive regulatory approval on a timely basis, if at all.

5

Any difficulties or delays in the commencement or completion, or termination or suspension, of our planned clinical trials could result in increased costs to us, delay or limit our ability to generate revenue and adversely affect our commercial prospects.
Serious adverse events, undesirable side effects or other unexpected properties of our product candidates may be identified during development or after approval, which could lead to the discontinuation of our clinical development programs, refusal by regulatory authorities to approve our product candidates or, if discovered following marketing approval, revocation of marketing authorizations or limitations on the use of our product candidates, any of which would limit the commercial potential of such product candidate.
As an organization, we have never conducted later-stage clinical trials or submitted a New Drug Application (“NDA”), and may be unable to do so for any of our product candidates.
The marketing approval processes of the U.S. Food and Drug Administration (“FDA”) and applicable foreign authorities are lengthy, time consuming, expensive and inherently unpredictable, and if we are ultimately unable to obtain marketing approval for our product candidates, our business will be substantially harmed.
We have conducted, or plan to conduct, our initial clinical studies for GSBR-1290, ANPA-0073, LTSE-2578, and our other product candidates outside of the United States. However, the FDA and other foreign equivalents may not accept data from such trials, in which case our development plans will be delayed, which could materially harm our business.
We rely on third parties for the manufacture of our product candidates for preclinical and clinical development and expect to continue to do so for the foreseeable future. This reliance on third parties increases the risk that we will not have sufficient quantities of our product candidates or products or such quantities at an acceptable cost, which could delay, prevent or impair our development or commercialization efforts.
Our current and anticipated future dependence upon others for the manufacture of our product candidates or drugs may adversely affect our future profit margins and our ability to commercialize any product candidates that receive marketing approval on a timely and competitive basis.
We intend to rely on third parties to conduct, supervise and monitor our discovery research, preclinical studies and clinical trials. If those third parties do not satisfactorily carry out their contractual duties or fail to meet expected deadlines, our development programs may be delayed or subject to increased costs, each of which may have an adverse effect on our business and prospects.
We have entered into, and may in the future enter into, collaboration agreements and strategic alliances to maximize the potential of our structure-based drug discovery platform and product candidates, and we may not realize the anticipated benefits of such collaborations or alliances. We expect to continue to form collaborations in the future with respect to our product candidates, but may be unable to do so or to realize the potential benefits of such transactions, which may cause us to alter or delay our development and commercialization plans.
Our existing discovery collaboration with Schrödinger, Inc. (“Schrödinger”) is important to our business. If we are unable to maintain this collaboration, or if this collaboration is not successful, our business could be adversely affected.
We face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than us.
We currently have no marketing and sales organization and have no experience as a company in commercializing products, and we may invest significant resources to develop these capabilities. If

6

we are unable to establish marketing and sales capabilities or enter into agreements with third parties to market and sell our products, we may not be able to generate product revenue.
We conduct certain research and development operations through our Australian wholly-owned subsidiaries. If we lose our ability to operate in Australia, or if any of our subsidiaries are unable to receive the research and development tax credit allowed by Australian regulations, or are required to refund any research and development tax credit previously received or reserve for such credit in our financial statements, our business and results of operations could suffer.
Changes in the political and economic policies of the Chinese government or in relations between China and the United States may affect our business, financial condition, results of operations and the market price of our ADSs.
If we are unable to obtain and maintain sufficient intellectual property protection for our platform technologies and product candidates, or if the scope of the intellectual property protection is not sufficiently broad, our competitors could develop and commercialize products similar or identical to ours, and our ability to successfully commercialize our products may be adversely affected.
We may rely on one or more in-licenses from third parties. If we lose these rights, our business may be materially adversely affected, and if disputes arise with one or more licensors, we may be subjected to future litigation as well as the potential loss of or limitations on our ability to develop and commercialize products and technologies covered by these license agreements.

7

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

STRUCTURE THERAPEUTICS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

JUNE 30, 

DECEMBER 31, 

   

2023

   

2022

   

Assets

Current assets:

 

  

 

  

 

Cash and cash equivalents

$

40,591

$

26,091

Short-term investments

 

183,996

 

64,750

Prepaid expenses and other current assets

 

3,635

 

2,248

Total current assets

 

228,222

 

93,089

Property and equipment, net

 

1,078

 

1,031

Operating right-of-use assets

 

90

 

262

Other non-current assets

 

38

 

3,463

Total assets

$

229,428

$

97,845

Liabilities, redeemable convertible preferred shares and shareholders’ equity (deficit)

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

5,699

$

6,009

Accrued expenses and other current liabilities

 

9,241

 

6,741

Operating lease liabilities, current portion

 

73

 

260

Total current liabilities

 

15,013

 

13,010

Total liabilities

 

15,013

 

13,010

Commitments and contingencies (Note 5)

 

  

 

  

Series A redeemable convertible preferred shares – $0.0001 par value, 0 and 19,200 shares authorized, issued and outstanding as of June 30, 2023 and December 31, 2022, respectively (liquidation preference of $0 and $32,001 as of June 30, 2023 and December 31, 2022, respectively)

 

 

32,001

Series A+ redeemable convertible preferred shares – $0.0001 par value, 0 and 12,800 shares authorized, issued and outstanding as of June 30, 2023 and December 31, 2022, respectively (liquidation preference of $0 and $26,000 as of June 30, 2023 and December 31, 2022, respectively )

 

 

26,000

Series B redeemable convertible preferred stock – $0.0001 par value, 0 and 32,857 shares authorized, issued and outstanding as of June 30, 2023 and December 31, 2022, respectively (liquidation preference of $0 and $133,015 as of June 30, 2023 and December 31, 2022, respectively)

 

 

133,015

Series B1 redeemable convertible preferred stock – $0.0001 par value, 0 and 2,161 shares authorized, issued and outstanding as of June 30, 2023 and December 31, 2022, respectively (liquidation preference of $0 and $7,000 as of June 30, 2023 and December 31, 2022, respectively)

 

 

8,959

Shareholders’ equity (deficit):

 

 

  

Undesignated shares – $0.0001 par value; 100,000 and 0 shares authorized as of June 30, 2023 and December 31, 2022, respectively

Non-voting ordinary shares – $0.0001 par value; 7,411 and 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

1

Ordinary shares – $0.0001 par value; 500,000 and 432,982 shares authorized as of June 30, 2023 and December 31, 2022, respectively; 107,387 and 10,527 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively

 

10

 

1

Additional paid-in capital

 

373,001

 

1,921

Accumulated other comprehensive loss

 

(390)

 

(110)

Accumulated deficit

 

(158,207)

 

(116,952)

Total shareholders’ equity (deficit)

 

214,415

 

(115,140)

Total liabilities, redeemable convertible preferred shares and shareholders’ equity (deficit)

$

229,428

$

97,845

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

STRUCTURE THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

THREE MONTHS ENDED

SIX MONTHS ENDED

JUNE 30, 

JUNE 30, 

    

2023

    

2022

    

2023

    

2022

    

NOT
REVIEWED1

NOT
REVIEWED1

Operating expenses:

  

Research and development

$

19,411

$

10,181

$

32,546

$

18,673

General and administrative

 

6,576

 

3,779

 

13,090

 

8,239

Total operating expenses

 

25,987

 

13,960

 

45,636

 

26,912

Loss from operations

 

(25,987)

 

(13,960)

 

(45,636)

 

(26,912)

Interest and other income (expense), net

 

2,825

 

76

 

4,524

 

7

Loss before provision for income taxes

 

(23,162)

 

(13,884)

 

(41,112)

(26,905)

Provision for income taxes

 

118

 

64

 

143

 

124

Net loss

 

(23,280)

 

(13,948)

 

(41,255)

 

(27,029)

Less: Accretion of redeemable convertible preferred shares to their redemption value

 

 

(1,515)

 

 

(1,515)

Net loss attributable to ordinary shareholders

$

(23,280)

$

(15,463)

$

(41,255)

$

(28,544)

Net loss per share attributable to ordinary shareholders, basic and diluted

$

(0.20)

$

(1.64)

$

(0.44)

$

(3.09)

Weighted-average ordinary shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted

 

114,759

 

9,435

 

93,325

 

9,250

Other comprehensive loss:

 

  

 

  

 

  

 

  

Unrealized loss on investments, net

 

(537)

 

(50)

 

(280)

 

(85)

Total other comprehensive loss

 

(537)

 

(50)

 

(280)

 

(85)

Comprehensive loss

$

(23,817)

$

(13,998)

$

(41,535)

$

(27,114)

The accompanying notes are an integral part of these condensed consolidated financial statements.

___________________________

1 A review, pursuant to PCAOB AS 4105, Reviews of Interim Financial Information, by an independent registered public accounting firm has not been completed for the indicated period.

9

STRUCTURE THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ EQUITY (DEFICIT)

(IN THOUSANDS)

(UNAUDITED)

  

  

  

  

  

  

  

  

ACCUMULATED

REDEEMABLE CONVERTIBLE PREFERRED SHARES

ORDINARY

NON-VOTING

ADDITIONAL

OTHER

TOTAL

SERIES A

SERIES A+

SERIES B

SERIES B-1

SHARES

ORDINARY SHARES

PAID-IN

COMPREHENSIVE

ACCUMULATED

SHAREHOLDERS’

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

CAPITAL

  

INCOME (LOSS)

  

DEFICIT

  

EQUITY (DEFICIT)

Balance at December 31, 2022

19,200

$

32,001

12,800

$

26,000

32,857

$

133,015

2,161

$

8,959

10,527

$

1

$

$

1,921

$

(110)

$

(116,952)

$

(115,140)

Conversion of redeemable convertible preferred shares into ordinary shares upon initial public offering

 

(19,200)

 

(32,001)

 

(12,800)

 

(26,000)

 

(32,857)

 

(133,015)

 

(2,161)

 

(8,959)

 

 

67,018

 

7

 

 

 

199,968

 

 

 

199,975

Issuance of ordinary shares upon initial public offering, net of issuance costs and underwriting discount of $18,586

 

 

 

 

 

 

 

 

 

 

37,053

 

3

 

 

 

166,667

 

 

 

166,670

Net exercise of ordinary share warrants

 

 

 

 

 

 

 

 

 

 

106

 

 

 

 

 

 

 

Issuance of ordinary shares upon exercise of vested share options

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

31

 

 

 

31

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,533

 

 

 

2,533

Unrealized gain on investments, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

257

 

 

257

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,975)

 

(17,975)

Balance at March 31, 2023

 

 

 

 

 

114,730

11

 

371,120

147

(134,927)

 

236,351

Exchange of ordinary shares to non-voting ordinary shares

 

 

 

 

 

 

 

(7,411)

(1)

7,411

1

Issuance of ordinary shares upon exercise of vested share options

 

 

 

 

 

 

 

68

179

179

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

1,702

 

 

1,702

Unrealized loss on investments, net

 

 

 

 

 

 

 

 

 

 

 

(537)

 

(537)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

(23,280)

(23,280)

Balance at June 30, 2023

$

$

$

$

107,387

$

10

7,411

$

1

$

373,001

$

(390)

$

(158,207)

$

214,415

10

  

  

  

  

  

  

ACCUMULATED

REDEEMABLE CONVERTIBLE PREFERRED SHARES

ORDINARY

ADDITIONAL

OTHER

TOTAL

SERIES A

SERIES A+

SERIES B

SERIES B-1

SHARES

PAID-IN

COMPREHENSIVE

ACCUMULATED

SHAREHOLDERS’

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

SHARES

  

AMOUNT

  

  

SHARES

  

AMOUNT

  

CAPITAL

  

LOSS

  

DEFICIT

  

DEFICIT

Balance at December 31, 2021

 

19,200

$

32,001

 

12,800

$

26,000

 

24,702

$

100,000

 

2,161

$

8,959

 

10,894

$

1

 

$

$

$

(64,736)

 

$

(64,735)

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

620

 

 

 

 

620

Unrealized loss on investments, net

 

 

 

 

 

 

 

 

 

 

 

 

 

(35)

 

 

 

(35)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,081)

 

 

(13,081)

Balance at March 31, 2022

 

19,200

$

32,001

 

12,800

$

26,000

 

24,702

$

100,000

 

2,161

$

8,959

 

10,894

$

1

 

$

620

$

(35)

$

(77,817)

 

$

(77,231)

Issuance of Series B redeemable convertible preferred shares, net of issuance costs of $1,515

 

 

 

 

8,155

 

31,500

 

 

 

 

 

 

Accretion of Series B redeemable convertible preferred shares to their redemption value

 

 

 

 

 

1,515

 

 

 

 

(620)

 

 

(895)

(1,515)

Repurchase of restricted stock awards

 

 

 

 

 

 

 

(450)

(6)

(6)

Issuance of ordinary shares upon exercise of vested share options

 

 

 

 

 

 

 

8

4

4

Share-based compensation expense

 

 

 

 

 

 

 

643

643

Unrealized loss on investments, net

 

 

 

 

 

 

 

(50)

(50)

Net loss

 

 

 

 

 

 

 

(13,948)

(13,948)

Balance at June 30, 2022 (NOT REVIEWED)1

19,200

$

32,001

12,800

$

26,000

32,857

$

133,015

2,161

$

8,959

10,452

$

1

$

641

$

(85)

$

(92,660)

$

(92,103)

The accompanying notes are an integral part of these condensed consolidated financial statements.

___________________________

1 A review, pursuant to PCAOB AS 4105, Reviews of Interim Financial Information, by an independent registered public accounting firm has not been completed for the indicated period.

11

STRUCTURE THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

SIX MONTHS ENDED

June 30, 

    

2023

    

2022

    

NOT
REVIEWED1

Cash flows from operating activities

Net loss

$

(41,255)

$

(27,029)

Adjustments to reconcile net loss to net cash used in operating activities:

Share-based compensation

 

4,235

 

1,263

Depreciation

 

144

 

129

Non-cash lease expense

 

172

 

178

Amortization (accretion) of net investment premiums (discounts)

 

(1,990)

 

(147)

Changes in operating assets and liabilities:

 

Prepaid expenses and other current assets

 

(1,387)

 

(990)

Other non-current assets

 

22

 

Accounts payable

 

122

 

12

Accrued expenses and other current liabilities

 

2,922

 

3,027

Operating lease liabilities

 

(187)

 

(177)

Deferred tax liability

121

Net cash used in operating activities

 

(37,202)

 

(23,613)

Cash flows from investing activities

 

  

 

  

Purchases of short-term investments

 

(165,836)

 

(68,280)

Maturities of short-term investments

 

48,300

 

12,500

Purchases of property and equipment

 

(191)

 

(12)

Net cash used in investing activities

 

(117,727)

 

(55,792)

Cash flows from financing activities

 

  

 

  

Proceeds from issuance of common stock in initial public offering, net of underwriting discount and commissions

 

172,296

 

Payments of deferred offering costs

(3,077)

(1,909)

Proceeds from issuance of Series B redeemable convertible preferred shares, net of issuance costs

31,500

Repurchases of restricted shares

(6)

Proceeds from exercise of share options

 

210

 

4

Net cash provided by financing activities

 

169,429

 

29,589

Net change in cash and cash equivalents

 

14,500

 

(49,816)

Cash and cash equivalents