0001178253 --12-31 2021 Q2 false 0.1 true 2021-03-31 true true 0.1 0 0.1 P5Y 0.1 P4Y P8Y1M2D P8Y7M2D P7Y8M15D P8Y4M13D P6Y9M14D P8Y4M13D 0001178253 2021-01-01 2021-06-30 xbrli:shares 0001178253 2021-08-01 iso4217:USD 0001178253 2021-06-30 0001178253 2020-12-31 iso4217:USD xbrli:shares 0001178253 2021-04-01 2021-06-30 0001178253 2020-04-01 2020-06-30 0001178253 2020-01-01 2020-06-30 0001178253 2019-12-31 0001178253 2020-06-30 xbrli:pure 0001178253 2020-07-15 2020-07-16 0001178253 2020-07-16 0001178253 2020-07-17 0001178253 us-gaap:NewJerseyDivisionOfTaxationMember 2021-04-01 2021-06-30 0001178253 us-gaap:NewJerseyDivisionOfTaxationMember 2021-01-01 2021-06-30 0001178253 scyx:December2020PublicOfferingMember scyx:PrefundedWarrantsMember 2021-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2020-04-01 2020-06-30 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:June2016PublicOfferingMember 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:June2016PublicOfferingMember 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:June2016PublicOfferingMember 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:June2016PublicOfferingMember 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:March2018PublicOfferingSeries2Member 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:March2018PublicOfferingSeries2Member 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:March2018PublicOfferingSeries2Member 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:March2018PublicOfferingSeries2Member 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:DecemberTwoThousandAndNineteenPublicOfferingMember 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:DecemberTwoThousandAndNineteenPublicOfferingMember 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:DecemberTwoThousandAndNineteenPublicOfferingMember 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:DecemberTwoThousandAndNineteenPublicOfferingMember 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingSeries2Member 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingSeries2Member 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingSeries2Member 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingSeries2Member 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantsAssociatedWithLoanAgreementMember 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantsAssociatedWithLoanAgreementMember 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantsAssociatedWithLoanAgreementMember 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantsAssociatedWithLoanAgreementMember 2020-01-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantAssociatedWithSolarLoanAgreementMember 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantAssociatedWithSolarLoanAgreementMember 2020-04-01 2020-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantAssociatedWithSolarLoanAgreementMember 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:WarrantAssociatedWithSolarLoanAgreementMember 2020-01-01 2020-06-30 0001178253 scyx:CommonStockAssociatedWithMarchTwoThousandNineteenNotesMember 2021-04-01 2021-06-30 0001178253 scyx:CommonStockAssociatedWithMarchTwoThousandNineteenNotesMember 2020-04-01 2020-06-30 0001178253 scyx:CommonStockAssociatedWithMarchTwoThousandNineteenNotesMember 2021-01-01 2021-06-30 0001178253 scyx:CommonStockAssociatedWithMarchTwoThousandNineteenNotesMember 2020-01-01 2020-06-30 0001178253 scyx:CommonStockAssociatedWithAprilTwoThousandTwentyNotesMember 2021-04-01 2021-06-30 0001178253 scyx:CommonStockAssociatedWithAprilTwoThousandTwentyNotesMember 2020-04-01 2020-06-30 0001178253 scyx:CommonStockAssociatedWithAprilTwoThousandTwentyNotesMember 2021-01-01 2021-06-30 0001178253 scyx:CommonStockAssociatedWithAprilTwoThousandTwentyNotesMember 2020-01-01 2020-06-30 0001178253 us-gaap:AccountingStandardsUpdate201912Member 2021-06-30 0001178253 scyx:TermLoanMember scyx:LoanAndSecurityAgreementMember scyx:HerculesCapitalIncorporatedAndSiliconValleyBankMember 2021-05-13 scyx:Tranche 0001178253 scyx:TermLoanMember scyx:LoanAndSecurityAgreementMember scyx:HerculesCapitalIncorporatedAndSiliconValleyBankMember 2021-05-13 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:InitialTrancheOfTermLoanMember 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:SecondTrancheOfTermLoanMember 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:ThirdTrancheOfTermLoanMember 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:FourthTrancheOfTermLoanMember 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:FourthTrancheOfTermLoanMember 2021-05-13 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember 2021-06-30 0001178253 scyx:LoanAndSecurityAgreementMember us-gaap:MeasurementInputCreditSpreadMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 scyx:LoanAndSecurityAgreementMember us-gaap:MeasurementInputRiskFreeInterestRateMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 scyx:LoanAndSecurityAgreementMember scyx:MeasurementInputSecuredYieldMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 scyx:LoanAndSecurityAgreementMember scyx:TermLoanMember 2021-05-13 2021-05-13 0001178253 scyx:LoanAndSecurityAgreementMember scyx:TermLoanMember us-gaap:PrimeRateMember 2021-05-13 2021-05-13 0001178253 scyx:SiliconValleyBankMember 2021-05-13 2021-05-13 0001178253 scyx:AprilTwoThousandTwentyNotePurchaseAgreementMember 2020-04-09 2020-04-09 0001178253 scyx:AprilTwoThousandTwentyNotePurchaseAgreementMember 2020-04-09 0001178253 scyx:AprilTwoThousandTwentyNotePurchaseAgreementMember 2020-12-31 0001178253 scyx:AprilTwoThousandTwentyNotePurchaseAgreementMember 2021-01-01 2021-01-31 0001178253 scyx:AprilTwoThousandTwentyNotePurchaseAgreementMember 2021-01-31 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2019-03-07 2019-03-07 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2019-03-07 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2021-06-30 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2021-01-01 2021-06-30 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2021-04-01 2021-06-30 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2020-01-01 2020-06-30 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2020-04-01 2020-06-30 0001178253 scyx:SeniorConvertibleNotePurchaseAgreementMember 2020-12-31 utr:D utr:sqft 0001178253 2018-03-01 0001178253 2018-03-01 2018-03-01 0001178253 srt:MaximumMember 2021-01-01 2021-06-30 0001178253 us-gaap:CommonStockMember 2021-03-31 0001178253 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001178253 us-gaap:RetainedEarningsMember 2021-03-31 0001178253 2021-03-31 0001178253 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001178253 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001178253 us-gaap:CommonStockMember 2021-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001178253 us-gaap:RetainedEarningsMember 2021-06-30 0001178253 us-gaap:CommonStockMember 2020-12-31 0001178253 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001178253 us-gaap:RetainedEarningsMember 2020-12-31 0001178253 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001178253 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember 2021-01-01 2021-06-30 0001178253 us-gaap:CommonStockMember 2020-03-31 0001178253 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001178253 us-gaap:RetainedEarningsMember 2020-03-31 0001178253 2020-03-31 0001178253 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001178253 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember 2020-04-01 2020-06-30 0001178253 us-gaap:CommonStockMember 2020-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001178253 us-gaap:RetainedEarningsMember 2020-06-30 0001178253 us-gaap:CommonStockMember 2019-12-31 0001178253 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001178253 us-gaap:RetainedEarningsMember 2019-12-31 0001178253 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001178253 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001178253 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember 2020-01-01 2020-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2021-06-30 0001178253 us-gaap:EmployeeStockOptionMember 2020-12-31 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2020-12-31 0001178253 scyx:June2016PublicOfferingMember us-gaap:WarrantMember 2021-06-30 0001178253 scyx:June2016PublicOfferingMember us-gaap:WarrantMember 2020-12-31 0001178253 scyx:March2018PublicOfferingMember scyx:SeriesTwoWarrantMember 2021-06-30 0001178253 scyx:March2018PublicOfferingMember scyx:SeriesTwoWarrantMember 2020-12-31 0001178253 scyx:DecemberTwoThousandNineteenPublicOfferingMember us-gaap:WarrantMember 2021-06-30 0001178253 scyx:DecemberTwoThousandNineteenPublicOfferingMember us-gaap:WarrantMember 2020-12-31 0001178253 scyx:December2020PublicOfferingSeries1Member us-gaap:WarrantMember 2021-06-30 0001178253 scyx:December2020PublicOfferingSeries1Member us-gaap:WarrantMember 2020-12-31 0001178253 scyx:December2020PublicOfferingSeries2Member us-gaap:WarrantMember 2021-06-30 0001178253 scyx:December2020PublicOfferingSeries2Member us-gaap:WarrantMember 2020-12-31 0001178253 scyx:December2020PublicOfferingMember us-gaap:WarrantMember 2021-06-30 0001178253 scyx:December2020PublicOfferingMember us-gaap:WarrantMember 2020-12-31 0001178253 scyx:WarrantsAssociatedWithLoanAgreementMember us-gaap:WarrantMember 2021-06-30 0001178253 scyx:WarrantsAssociatedWithLoanAgreementMember us-gaap:WarrantMember 2020-12-31 0001178253 scyx:WarrantAssociatedWithSolarLoanAgreementMember us-gaap:WarrantMember 2021-06-30 0001178253 scyx:WarrantAssociatedWithSolarLoanAgreementMember us-gaap:WarrantMember 2020-12-31 0001178253 scyx:SixPercentConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember 2021-06-30 0001178253 scyx:SixPercentConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember 2020-12-31 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember 2021-06-30 0001178253 scyx:SixPointZeroPercentageSeniorConvertibleNotesDueTwoThousandAndTwentySixMember 2020-12-31 0001178253 scyx:TwoThousandAndFourteenEquityIncentivePlanMember 2021-06-30 0001178253 scyx:TwoThousandAndFourteenEquityIncentivePlanMember 2020-12-31 0001178253 scyx:TwoThousandAndFourteenEmployeeStockPurchasePlanMember 2021-06-30 0001178253 scyx:TwoThousandAndFourteenEmployeeStockPurchasePlanMember 2020-12-31 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2021-06-30 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2020-12-31 0001178253 scyx:AspireCapitalFundLimitedLiabilityCompanyMember scyx:CommonStockPurchaseAgreementMember srt:MaximumMember 2020-04-10 2020-04-10 0001178253 scyx:AspireCapitalFundLimitedLiabilityCompanyMember scyx:CommonStockPurchaseAgreementMember 2020-04-10 2020-04-10 0001178253 scyx:AspireCapitalFundLimitedLiabilityCompanyMember scyx:CommonStockPurchaseAgreementMember 2020-04-10 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingMember 2021-04-01 2021-06-30 0001178253 us-gaap:WarrantMember scyx:December2020PublicOfferingMember 2021-01-01 2021-06-30 0001178253 scyx:LoanAndSecurityAgreementMember scyx:HerculesCapitalIncorporatedAndSiliconValleyBankMember 2021-05-31 0001178253 scyx:WarrantAssociatedWithSolarLoanAgreementMember 2016-09-30 0001178253 scyx:WarrantAssociatedWithSolarLoanAgreementMember 2016-09-29 2016-09-30 0001178253 scyx:TwoThousandAndFourteenEquityIncentivePlanMember 2021-01-01 2021-01-01 0001178253 scyx:TwoThousandAndFourteenEquityIncentivePlanMember 2020-01-01 2020-01-01 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2021-01-01 2021-06-30 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2020-01-01 2020-06-30 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2021-04-29 0001178253 scyx:TwoThousandAndFifteenInducementAwardPlanMember 2021-04-30 0001178253 2020-01-01 2020-12-31 0001178253 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001178253 us-gaap:ResearchAndDevelopmentExpenseMember 2021-04-01 2021-06-30 0001178253 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0001178253 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-06-30 0001178253 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-06-30 0001178253 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-04-01 2021-06-30 0001178253 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-06-30 0001178253 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-06-30 0001178253 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-06-30 0001178253 us-gaap:CashMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 scyx:RestrictedCashMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001178253 us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2021-06-30 0001178253 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2021-06-30 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2021-06-30 0001178253 us-gaap:CashMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:CashMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 scyx:RestrictedCashMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 scyx:RestrictedCashMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001178253 us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:WarrantMember 2020-12-31 0001178253 us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2020-12-31 0001178253 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:DerivativeMember 2020-12-31 0001178253 us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputPriceVolatilityMember srt:WeightedAverageMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputPriceVolatilityMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputCreditSpreadMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputExpectedDividendRateMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001178253 us-gaap:MeasurementInputDiscountForLackOfMarketabilityMember us-gaap:FairValueInputsLevel3Member scyx:SixPercentConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember 2021-06-30 0001178253 us-gaap:WarrantMember 2020-12-31 0001178253 us-gaap:WarrantMember 2021-01-01 2021-06-30 0001178253 us-gaap:WarrantMember 2021-06-30 0001178253 us-gaap:DerivativeMember 2020-12-31 0001178253 us-gaap:DerivativeMember 2021-01-01 2021-06-30 0001178253 us-gaap:DerivativeMember 2021-06-30 0001178253 scyx:ExclusiveLicenseAndCollaborationAgreementMember 2021-01-01 2021-06-30 0001178253 scyx:ExclusiveLicenseAndCollaborationAgreementMember srt:MaximumMember 2021-02-28 0001178253 scyx:AssetPurchaseAgreementMember scyx:CypralisLimitedMember 2021-01-01 2021-06-30 0001178253 scyx:AssetPurchaseAgreementMember scyx:CypralisLimitedMember 2021-04-01 2021-06-30 0001178253 scyx:LicenseAgreementMember scyx:WaterstonePharmaceuticalHKLimitedMember 2021-01-01 2021-06-30 0001178253 scyx:LicenseAgreementMember scyx:WaterstonePharmaceuticalHKLimitedMember 2021-04-01 2021-06-30

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 JUNE 30, 2021

OR

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

FOR THE TRANSITION PERIOD FROM                  TO                 

Commission File Number 001-36365

 

SCYNEXIS, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

56-2181648

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1 Evertrust Plaza, 13th Floor

Jersey City, New Jersey

 

07302-6548

(Address of principal executive offices)

 

(Zip Code)

 

(201)-884-5485

(Registrant’s telephone number, including area code)

 

 

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

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

SCYX

Nasdaq Global Market

 

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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  

As of August 1, 2021, there were 23,217,909 shares of the registrant’s Common Stock outstanding.

 

 

 


Table of Contents

 

 

SCYNEXIS, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

PART I FINANCIAL INFORMATION

 

1

 

 

 

 

 

Item 1.

 

Financial Statements

 

1

 

 

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020

 

1

 

 

Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020

 

2

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020

 

3

 

 

Notes to the Condensed Consolidated Financial Statements (unaudited)

 

4

Item 2.

 

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

 

19

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

28

Item 4.

 

Controls and Procedures

 

28

 

 

 

PART II OTHER INFORMATION

 

29

 

 

 

 

 

Item 1A.

 

Risk Factors

 

29

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

29

Item 6.

 

Exhibits

 

30

 

 

 

Signatures

 

31

 

 

 

 


Table of Contents

 

 

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements.

SCYNEXIS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112,445

 

 

$

93,041

 

Prepaid expenses and other current assets

 

 

3,039

 

 

 

5,165

 

Inventory

 

 

92

 

 

 

 

Restricted cash

 

 

55

 

 

 

 

Total current assets

 

 

115,631

 

 

 

98,206

 

Other assets

 

 

1,413

 

 

 

573

 

Deferred offering costs

 

 

179

 

 

 

187

 

Restricted cash

 

 

218

 

 

 

273

 

Property and equipment, net

 

 

219

 

 

 

298

 

Intangible assets

 

 

572

 

 

 

 

Operating lease right-of-use asset (See Note 6)

 

 

2,899

 

 

 

2,999

 

Total assets

 

$

121,131

 

 

$

102,536

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,946

 

 

$

4,639

 

Accrued expenses

 

 

3,374

 

 

 

4,141

 

Warrant liabilities

 

 

10,499

 

 

 

17,564

 

Operating lease liability, current portion (See Note 6)

 

 

60

 

 

 

52

 

Total current liabilities

 

 

19,879

 

 

 

26,396

 

Other liabilities

 

 

838

 

 

 

 

Warrant liabilities

 

 

24,452

 

 

 

33,592

 

Convertible debt and derivative liability (See Note 5)

 

 

11,996

 

 

 

16,516

 

Loan payable

 

 

28,376

 

 

 

 

Operating lease liability (See Note 6)

 

 

3,270

 

 

 

3,274

 

Total liabilities

 

 

88,811

 

 

 

79,778

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, authorized 5,000,000 shares as of June 30, 2021 and December 31, 2020; 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 23,147,552 and 19,663,698 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

 

 

26

 

 

 

20

 

Additional paid-in capital

 

 

361,925

 

 

 

349,351

 

Accumulated deficit

 

 

(329,631

)

 

 

(326,613

)

Total stockholders’ equity

 

 

32,320

 

 

 

22,758

 

Total liabilities and stockholders’ equity

 

$

121,131

 

 

$

102,536

 

 

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

1


Table of Contents

 

SCYNEXIS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

 

 

$

 

 

$

12,050

 

 

$

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,734

 

 

 

8,469

 

 

 

11,682

 

 

 

18,335

 

Selling, general and administrative

 

 

12,774

 

 

 

3,357

 

 

 

19,468

 

 

 

5,966

 

Total operating expenses

 

 

17,508

 

 

 

11,826

 

 

 

31,150

 

 

 

24,301

 

Loss from operations

 

 

(17,508

)

 

 

(11,826

)

 

 

(19,100

)

 

 

(24,301

)

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

806

 

 

 

2,725

 

 

 

806

 

Amortization of debt issuance costs and discount

 

 

269

 

 

 

321

 

 

 

525

 

 

 

599

 

Interest income

 

 

(6

)

 

 

(36

)

 

 

(12

)

 

 

(183

)

Interest expense

 

 

445

 

 

 

319

 

 

 

659

 

 

 

529

 

Other income

 

 

(3

)

 

 

(60

)

 

 

(2

)

 

 

(405

)

Other expense

 

 

 

 

 

602

 

 

 

 

 

 

602

 

Warrant liabilities fair value adjustment

 

 

(15,271

)

 

 

(3,560

)

 

 

(16,567

)

 

 

(8,329

)

Derivative liabilities fair value adjustment

 

 

(462

)

 

 

(693

)

 

 

(372

)

 

 

(1,393

)

Total other income

 

 

(15,028

)

 

 

(2,301

)

 

 

(13,044

)

 

 

(7,774

)

Loss before taxes

 

 

(2,480

)

 

 

(9,525

)

 

 

(6,056

)

 

 

(16,527

)

Income tax benefit

 

 

(4,138

)

 

 

(3,144

)

 

 

(3,038

)

 

 

(3,144

)

Net income (loss)

 

$

1,658

 

 

$

(6,381

)

 

$

(3,018

)

 

$

(13,383

)

Net income (loss) per share attributable to common stockholders – basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic

 

$

0.06

 

 

$

(0.64

)

 

$

(0.12

)

 

$

(1.35

)

Net loss per share attributable to common stockholders – diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – diluted

 

$

(0.22

)

 

$

(0.64

)

 

$

(0.44

)

 

$

(1.35

)

Weighted average common shares outstanding – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

26,015,292

 

 

 

10,009,614

 

 

 

25,909,457

 

 

 

9,877,094

 

Diluted

 

 

26,487,973

 

 

 

10,009,614

 

 

 

26,505,808

 

 

 

9,877,094

 

 

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

2


Table of Contents

 

SCYNEXIS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(3,018

)

 

$

(13,383

)

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

 

 

 

 

 

 

 

 

Depreciation

 

 

85

 

 

 

54

 

Stock-based compensation expense

 

 

940

 

 

 

821

 

Accretion of investments discount

 

 

 

 

 

(23

)

Amortization of debt issuance costs and discount

 

 

525

 

 

 

599

 

Change in fair value of warrant liabilities

 

 

(16,567

)

 

 

(8,329

)

Change in fair value of derivative liabilities

 

 

(372

)

 

 

(1,393

)

Noncash operating lease expense for right-of-use asset

 

 

100

 

 

 

97

 

Loss on extinguishment of debt

 

 

2,725

 

 

 

806

 

Noncash consideration associated with common stock purchase agreement

 

 

 

 

 

602

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses, other assets, deferred costs, and other

 

 

1,914

 

 

 

1,069

 

Accounts payable, accrued expenses, and other

 

 

1,214

 

 

 

(3,833

)

Net cash used in operating activities

 

 

(12,454

)

 

 

(22,913

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Maturities of investments

 

 

 

 

 

17,142

 

Purchases of property and equipment

 

 

 

 

 

(4

)

Purchase of intangible assets

 

 

(251

)

 

 

 

Purchases of investments

 

 

 

 

 

(14,235

)

Net cash (used in) provided by investing activities

 

 

(251

)

 

 

2,903

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from common stock issued

 

 

3,431

 

 

 

2,751

 

Payments of offering costs and underwriting discounts and commissions

 

 

(78

)

 

 

(123

)

Proceeds from loan payable

 

 

30,000

 

 

 

 

Payments of loan payable issuance costs

 

 

(1,253

)

 

 

 

Proceeds from common stock issuance under employee stock purchase plan

 

 

9

 

 

 

18

 

Repurchase of shares to satisfy tax withholdings

 

 

 

 

 

(73

)

Proceeds from senior convertible notes

 

 

 

 

 

10,000

 

Payments of senior convertible notes issuance costs

 

 

 

 

 

(462

)

Net cash provided by financing activities

 

 

32,109

 

 

 

12,111

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

19,404

 

 

 

(7,899

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

93,314

 

 

 

42,193

 

Cash, cash equivalents, and restricted cash at end of period

 

$

112,718

 

 

$

34,294

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

511

 

 

$

420

 

Cash received for interest

 

$

11

 

 

$

173

 

Noncash financing and investing activities:

 

 

 

 

 

 

 

 

Common stock issued for settlement of senior convertible notes

 

$

7,452

 

 

$

2,784

 

Purchased intangible assets included in accounts payable and accrued expenses

 

$

321

 

 

$

 

Deferred offering and issuance costs included in accounts payable and accrued expenses

 

$

 

 

$

106

 

Common stock issued for commitment shares

 

$

 

 

$

602

 

Reclass of warrant liability to additional paid in capital

 

$

298

 

 

$

 

Reclass of deferred asset associated with issuance of loan payable to debt discount

 

$

390

 

 

$

 

 

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

3


Table of Contents

 

SCYNEXIS, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.

Description of Business and Basis of Preparation

Organization

SCYNEXIS, Inc. (“SCYNEXIS” or the “Company”) is a Delaware corporation formed on November 4, 1999. SCYNEXIS is a biotechnology company, headquartered in Jersey City, New Jersey, pioneering innovative medicines to overcome and prevent difficult-to-treat and drug-resistant infections.  The Company is developing its lead product candidate, ibrexafungerp, as a broad-spectrum, intravenous (IV)/oral agent for multiple fungal indications in both the community and hospital settings. In June 2021, the Company announced that the U.S. Food and Drug Administration (“FDA”) approved BREXAFEMME (ibrexafungerp 150mg tablets) for oral use in patients with vulvovaginal candidiasis (“VVC”), also known as vaginal yeast infection, and the Company has commenced the commercialization of BREXAFEMME in the U.S.  

The Company has incurred significant losses and negative cash flows from operations since its initial public offering in May 2014 and expects to continue to incur losses and negative cash flows for the foreseeable future. As a result, the Company had an accumulated deficit of $329.6 million at June 30, 2021 and limited capital resources to fund ongoing operations. These capital resources primarily comprised cash and cash equivalents of $112.4 million at June 30, 2021. While the Company believes its capital resources are sufficient to fund the Company’s on-going operations for a period of at least 12 months subsequent to the issuance of the accompanying unaudited condensed consolidated financial statements, the Company's liquidity could be materially affected over this period by, among other things: (1) its ability to raise additional capital through equity offerings, debt financings, or other non-dilutive third-party funding; (2) costs associated with new or existing strategic alliances, or licensing and collaboration arrangements; (3) negative regulatory events or unanticipated costs related to its development of ibrexafungerp; (4) its ability to commercialize ibrexafungerp for the treatment of vaginal yeast infections and; (5) any other unanticipated material negative events or costs.  One or more of these events or costs could materially affect the Company’s liquidity.  If the Company is unable to meet its obligations when they become due, the Company may have to delay expenditures, reduce the scope of its research and development programs, or make significant changes to its operating plan.  The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary.  Intercompany balances and transactions are eliminated in consolidation.

Reverse Stock Split

On July 16, 2020, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation (the “Amendment”), which became effective on Friday, July 17, 2020, (a) implementing a 1-for-10 reverse stock split of the Company’s common stock and (b) decreasing the number of authorized shares of the Company’s common stock from 250,000,000 shares to 100,000,000 shares.  All share and per share amounts presented in these unaudited condensed consolidated financial statements have been retroactively adjusted for the reverse stock split and certain items in the prior period financial statements have been revised to conform to the current presentation.  The reverse stock split affected all shares of the Company’s common stock outstanding immediately prior to the effective time of the reverse stock split, as well as the number of shares of common stock available for issuance under the Company’s equity incentive plans. In addition, the reverse stock split effected a reduction in the number of shares of common stock issuable upon the conversion of outstanding convertible notes or upon the exercise of stock options or warrants outstanding.

New Jersey Technology Business Tax Certificate Transfer (NOL) Program

The New Jersey Technology Business Tax Certificate Transfer (NOL) program, administered by the New Jersey Economic Development Authority, enables approved biotechnology companies to sell their unused net operating losses (“NOLs”) and research and development tax credits to unaffiliated, profitable corporate taxpayers in the State of New Jersey.  For the three and six months ended June 30, 2021, the Company recognized a $4.1 million income tax benefit for the sale of a portion of the Company’s unused New Jersey NOLs and research and development credits.  

Unaudited Interim Condensed Consolidated Financial Information

The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”), as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification” or “ASC”) for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the results of operations, financial position, and cash flows.  The results of operations

4


Table of Contents

 

for the three and six months ended June 30, 2021, are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes set forth in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC) on March 29, 2021.  

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates include: determination of the fair value of stock-based compensation grants; the estimate of services and effort expended by third-party research and development service providers used to recognize research and development expense; and the estimates and assumptions utilized in measuring the fair values of the warrant and derivative liabilities each reporting period.

2.

Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements and notes follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2020, except as described below.

Inventory

Inventory is stated at the lower of cost or net realizable value. Costs include amounts related to third party manufacturing.  Prior to the regulatory approval of an investigational drug, the Company recognizes as research and development expense costs related to the manufacture of an investigational drug when incurred.  Upon regulatory approval, the Company begins capitalizing such manufacturing expenses as inventory.  For BREXAFEMME, capitalization of costs as inventory began upon regulatory approval on June 2, 2021.

Revenue Recognition

The Company has entered into arrangements involving the sale or license of intellectual property and the provision of other services.  When entering into any arrangement involving the sale or license of intellectual property rights and other services, the Company determines whether the arrangement is subject to accounting guidance in ASC 606, Revenue from Contracts with Customers (“Topic 606”), as well as ASC 808, Collaborative Arrangements ("Topic 808"). If the Company determines that an arrangement includes goods or services that are central to the Company’s business operations for consideration, the Company will then identify the performance obligations in the contract using the unit-of-account guidance in Topic 606.  For a distinct unit-of-account that is within the scope of Topic 606, the Company applies all of the accounting requirements in Topic 606 to that unit-of-account, including the recognition, measurement, presentation and disclosure requirements.  For a distinct unit-of-account that is not within the scope of Topic 606, the Company will recognize and measure the distinct unit-of-account based on other authoritative ASC Topics or on a reasonable, rational, and consistently applied policy election.

Analyzing the arrangement to identify performance obligations requires the use of judgment. In arrangements that include the sale or license of intellectual property and other promised services, the Company first identifies if the licenses are distinct from the other promises in the arrangement.  If the license is not distinct, the license is combined with other services into a single performance obligation. Factors that are considered in evaluating whether a license is distinct from other promised services include, for example, whether the counterparty can benefit from the license without the promised service on its own or with other readily available resources and whether the promised service is expected to significantly modify or customize the intellectual property.

The Company classifies non-refundable upfront payments, milestone payments and royalties received for the sale or license of intellectual property as revenues within its statements of operations because the Company views such activities as being central to its business operations. For the sale of intellectual property that is distinct, fixed consideration and variable consideration are included in the transaction price and recognized in revenue immediately to the extent that it is probable that there would not be a significant reversal of cumulative revenue in the future.  For the license of intellectual property that is distinct, fixed and variable consideration (to the extent there will not be a significant reversal in the future) are also recognized immediately in income, except for consideration received in the form of royalty or sales-based milestones, which is recorded when the customer’s subsequent sales or usages occur.  If the sale or license of intellectual property is not distinct, revenue is deferred and recognized over the estimated period of the Company’s combined performance obligation.  For contractual arrangements that meet the definition of a collaborative arrangement under Topic 808, consideration received for any units-of-account that are outside the scope of Topic 606 are recognized in the statements of operations by considering (i) the nature of the arrangement, (ii) the nature of the Company’s business operations, and (iii) the contractual terms of the arrangement. 

5


Table of Contents

 

Basic and Diluted Net Income (Loss) per Share of Common Stock

The Company calculates net income (loss) per common share in accordance with ASC 260, Earnings Per Share. Basic net income (loss) per common share for the three and six months ended June 30, 2021 and 2020 was determined by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period.  Per ASC 260, Earnings Per Share, the weighted average number of common shares outstanding utilized for determining the basic net income (loss) per common share for the three and six months ended June 30, 2021 includes the pre-funded warrants to purchase 5,260,000 shares of common stock issued in the December 2020 Public Offering.  Diluted net loss per common share for the three and six months ended June 30, 2021 and 2020 was determined as follows (in thousands, except share and per share amounts):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss)

$

1,658

 

 

$

(6,381

)

 

$

(3,018

)

 

$

(13,383

)

Dilutive effect of warrant liability

 

(7,415

)

 

 

 

 

 

(8,739

)

 

 

 

Net loss allocated to common shares

$

(5,757

)

 

$

(6,381

)

 

$

(11,757

)

 

$

(13,383

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

26,015,292

 

 

 

10,009,614

 

 

 

25,909,457

 

 

 

9,877,094

 

Dilutive effect of warrant liability

 

472,681

 

 

 

 

 

 

596,351

 

 

 

 

Weighted average common shares outstanding – diluted

 

26,487,973

 

 

 

10,009,614

 

 

 

26,505,808

 

 

 

9,877,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – diluted

$

(0.22

)

 

$

(0.64

)

 

$

(0.44

)

 

$

(1.35

)

 

The following potentially dilutive shares of common stock have not been included in the computation of diluted net loss per share for the three and six months ended June 30, 2021 and 2020, as the result would be anti-dilutive:

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Outstanding stock options

 

1,607,080

 

 

 

781,685

 

 

 

1,607,080

 

 

 

781,685

 

Outstanding restricted stock units

 

134,774

 

 

 

84,929

 

 

 

134,774

 

 

 

84,929

 

Warrants to purchase common stock associated with June 2016 public offering

 

 

 

 

421,867

 

 

 

 

 

 

421,867

 

Warrants to purchase common stock associated with March 2018 public offering – Series 2

 

798,810

 

 

 

798,810

 

 

 

798,810

 

 

 

798,810

 

Warrants to purchase common stock associated with December 2019 Public Offering

 

4,472,205

 

 

 

4,472,205

 

 

 

4,472,205

 

 

 

4,472,205

 

Warrants to purchase common stock associated with December 2020 Public Offering - Series 2

 

6,800,000

 

 

 

 

 

 

6,800,000

 

 

 

 

Warrants to purchase common stock associated with Loan Agreement

 

170,410

 

 

 

 

 

 

170,410

 

 

 

 

Warrants to purchase common stock associated with Solar loan agreement

 

12,243

 

 

 

12,243

 

 

 

12,243

 

 

 

12,243

 

Common stock associated with March 2019 Notes

 

1,138,200

 

 

 

1,138,200

 

 

 

1,138,200

 

 

 

1,138,200

 

Common stock associated with April 2020 Notes

 

 

 

 

1,622,138

 

 

 

 

 

 

1,622,138

 

Total

 

15,133,722

 

 

 

9,332,077

 

 

 

15,133,722

 

 

 

9,332,077

 

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) (“ASU 2019-10”), which revised the effective dates for ASU 2016-13 for public business entities that meet the SEC definition of a smaller reporting company to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted.  As a smaller reporting company, the Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. 

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity’s Own Equity: Accounting for Convertible Instruments and Contracts in and Entity’s Own Equity (“ASU 2020-06”). The amendments in ASU 2020-06 reduce the number of accounting models for convertible debt

6


Table of Contents

 

instruments and revises certain guidance relating to the derivative scope exception and earnings per share.  The amendments in ASU 2020-06 are effective for public business entities that meet the definition of a SEC filer and a smaller reporting company for fiscal years beginning after December 15, 2023, and interim periods within those years.  As a smaller reporting company, the Company is currently evaluating the impact ASU 2020-06 will have on its consolidated financial statements.

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This guidance was adopted by the Company in the first quarter of 2021 and it did not have a material impact on its unaudited condensed consolidated financial statements.

3.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

 

 

June 30, 2021

 

 

December 31, 2020

 

Prepaid research and development services

 

$

1,428

 

 

$

1,535

 

Prepaid insurance

 

 

761

 

 

 

362

 

Other prepaid expenses

 

 

481

 

 

 

19

 

Other receivables

 

 

 

 

 

2,876

 

Other current assets

 

 

369

 

 

 

373

 

Total prepaid expenses and other current assets

 

$

3,039

 

 

$

5,165

 

 

4.

Accrued Expenses

Accrued expenses consisted of the following (in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Accrued research and development expenses

 

$

1,045

 

 

$

991

 

Accrued employee bonus compensation

 

 

935

 

 

 

2,190

 

Other accrued expenses

 

 

1,394

 

 

 

960

 

Total accrued expenses

 

$

3,374

 

 

$

4,141

 

 

5.

Borrowings

Loan Agreement

On May 13, 2021 (the “Closing Date”), the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Hercules Capital, Inc. (“Hercules”), as administrative agent and collateral agent (in such capacity, the “Agent”) and a lender, and Silicon Valley Bank, as a lender (“SVB,” and collectively with Hercules, the “Lenders”) for an aggregate principal amount of $60.0 million (the “Term Loan”). Pursuant to the Loan Agreement, the Term Loan is available to the Company in four tranches, subject to certain terms and conditions.

Under the terms of the Loan Agreement, the Company received an initial tranche of $20.0 million from the Lenders on the Closing Date. The second tranche of the Term Loan, consisting of up to an additional $10.0 million, became available to the Company upon receipt of approval from the FDA of ibrexafungerp for the treatment of vaginal yeast infections (the “First Performance Milestone”) and was fully funded in June 2021.  The third tranche of the Term Loan, consisting of an additional $5.0 million, will be available to the Company upon (a) the First Performance Milestone and (b) the achievement of the primary endpoint from the Phase 3 study of ibrexafungerp in patients with recurrent vulvovaginal candidiasis, and will be available, if specified conditions are met, from September 30, 2021 through June 30, 2022. The fourth tranche of the Term Loan, consisting of up to an additional $25.0 million, will be available to the Company from January 1, 2022 through December 31, 2023 in $5.0 million increments, subject to certain terms and conditions, including in maintaining a ratio of total outstanding Term Loan principal to net product revenues for ibrexafungerp below a certain specified level for a given draw period.  The Company estimated the fair value of the loan payable using a credit spread valuation model and Level 3 inputs which included an implied secured spread, risk free rate, and secured yield of 9.45%, 0.54%, and 9.99%, respectively.  At June 30, 2021, the fair value of the loan payable is $29.2 million.

The Term Loan will mature on March 3, 2025 (the “Maturity Date”); provided that, the Maturity Date shall be automatically extended to May 1, 2025 subject to the occurrence of certain conditions set forth in the Loan Agreement. The Term Loan bears interest at a variable annual rate equal to the greater of (a) 9.05% and (b) the Prime Rate (as reported in the Wall Street Journal) plus 5.80% (the “Interest Rate”). The Company may make payments of interest only through November 1,

7


Table of Contents

 

2023, which may be extended to May 1, 2024 upon the achievement of the First Performance Milestone prior to November 1, 2023, and which is further extendable in quarterly increments until the Maturity Date, subject to continued compliance with the financial covenant of the Loan Agreement (the “interest-only period”). After the interest-only period, the principal balance and related interest will be required to be repaid in equal monthly installments and continuing until the Maturity Date.

The Loan Agreement contains customary closing fees, prepayment fees and provisions, events of default, and representations, warranties and covenants, including a financial covenant requiring the Company to maintain certain levels of trailing three-month net product revenue solely from the sale of ibrexafungerp commencing on June 30, 2022. The financial covenant will be waived at any time in which the Company maintains unrestricted and unencumbered cash in accounts maintained with SVB equal to at least 50.0% of the total outstanding Term Loan principal amount, subject to certain requirements.  

Future principal debt payments on the currently outstanding loan payable as of June 30, 2021 are as follows (in thousands):

2021

 

$

 

2022

 

 

 

2023

 

 

 

2024