abos-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

___________________________

FORM 10-Q

___________________________

(Mark One)


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

For the quarterly period ended June 30, 2023


o			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: 001-40551

___________________________

Acumen Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in its Charter)

___________________________


Delaware						36-4108129
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

427 Park St., Charlottesville, Virginia						22902
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (434) 297-1000

___________________________

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 $0.0001 per share

ABOS

The Nasdaq Global Select 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 x No o

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x

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. o

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

As of August 4, 2023, the registrant had 57,868,512 shares of common stock, $0.0001 par value per share, outstanding.


		Page
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (Unaudited)	4
	Condensed Balance Sheets	4
	Condensed Statements of Operations and Comprehensive Loss	5
	Condensed Statements of Changes in Stockholders’ Equity	7

	Condensed Statements of Cash Flows	8
	Notes to Condensed Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
PART II.	OTHER INFORMATION	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28
Signatures		29


	June 30, 2023		December 31, 2022
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	77,248	$	130,101
Marketable securities, short-term	67,633		47,504
Prepaid expenses and other current assets	4,657		2,724
Total current assets	149,538		180,329
Marketable securities, long-term	27,311		15,837
Property and equipment, net	136		165
Deferred offering costs	183		—
Right-of-use asset	29		105
Other assets	208		151
Total assets	$	177,405	$	196,587
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,026	$	1,640
Accrued clinical trial expenses	4,102		2,717
Accrued expenses and other current liabilities	2,374		3,350
Operating lease liability	29		105
Total current liabilities	8,531		7,812
Total liabilities	8,531		7,812
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and no shares issued and outstanding as of June 30, 2023 and December 31, 2022	—		—
Common stock, $0.0001 par value; 300,000,000 shares authorized and 41,025,062 shares issued and outstanding as of June 30, 2023 and December 31, 2022	4		4
Additional paid-in capital	362,860		359,949
Accumulated deficit	(193,344)		(170,427)
Accumulated other comprehensive loss	(646)		(751)
Total stockholders’ equity	168,874		188,775
Total liabilities and stockholders’ equity	$	177,405	$	196,587


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Operating expenses
Research and development	$	9,133	$	7,321	$	17,846	$	13,306
General and administrative	4,345		3,090		8,767		6,312
Total operating expenses	13,478		10,411		26,613		19,618
Loss from operations	(13,478)		(10,411)		(26,613)		(19,618)
Other income (expense)
Interest income, net	1,884		260		3,716		337
Other income (expense), net	(16)		—		(20)		1
Total other income	1,868		260		3,696		338
Net loss	(11,610)		(10,151)		(22,917)		(19,280)
Other comprehensive gain (loss)
Unrealized gain (loss) on marketable securities	(122)		(151)		105		(734)
Comprehensive loss	$	(11,732)	$	(10,302)	$	(22,812)	$	(20,014)
Net loss per common share, basic and diluted	$	(0.28)	$	(0.25)	$	(0.56)	$	(0.48)
Weighted-average shares outstanding, basic and diluted	41,025,062		40,497,087		41,025,062		40,485,244


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance as of March 31, 2023	41,025,062	$	4	$	361,339	$	(181,734)	$	(524)	$	179,085
Unrealized gain on marketable securities	—	—		—		—		(122)		(122)
Stock-based compensation	—	—		1,521		—		—		1,521
Net loss	—	—		—		(11,610)		—		(11,610)
Balance as of June 30, 2023	41,025,062	$	4	$	362,860	$	(193,344)	$	(646)	$	168,874


	June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities, short-term
Corporate debt securities	$	45,410	$	—	$	(238)	$	45,172
Asset-backed securities	3,002		—		(29)		2,973
U.S. treasury securities	19,609		—		(121)		19,488
Total available-for-sale securities, short-term	68,021		—		(388)		67,633
Available-for-sale securities, long-term
Corporate debt securities	27,569		—		(258)		27,311
Total available-for-sale securities, long-term	27,569		—		(258)		27,311
Total available-for-sale securities	$	95,590	$	—	$	(646)	$	94,944


	June 30, 2023
	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities	$	65,895	$	(449)	$	5,609	$	(47)	$	71,504	$	(496)
Asset-backed securities	—		—		2,973		(29)		2,973		(29)
U.S. treasury securities	7,577		(26)		11,910		(95)		19,487		(121)
Total	$	73,472	$	(475)	$	20,492	$	(171)	$	93,964	$	(646)


	Fair value measurements at reporting date using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at June 30, 2023
Assets included in:
Cash and cash equivalents
Money market securities	$	75,423	$	—	$	—	$	75,423
Marketable securities
Corporate debt securities	—		72,483		—		72,483
Asset-backed securities	—		2,973		—		2,973
U.S. treasury securities	—		19,488		—		19,488
Total fair value	$	75,423	$	94,944	$	—	$	170,367


	June 30, 2023		December 31, 2022
Prepaid raw materials	$	2,678	$	199
Research and development service agreements	1,509		1,077
Dues and subscriptions	227		105
Prepaid insurance	35		1,106
Other	208		237
Total prepaid expenses and other current assets	$	4,657	$	2,724


	June 30, 2023		December 31, 2022
Compensation and other employee liabilities	$	1,365	$	2,008
Research and development	904		1,211
Legal	85		—

Other	20		131
Total accrued expenses and other current liabilities	$	2,374	$	3,350


	Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2023	5,610,893	$	3.36
Granted	1,793,600	$	5.90

Forfeited	(12,000)	$	3.23
Expired	(2,104)	$	22.39
Outstanding at June 30, 2023	7,390,389	$	3.97	8.1	$	12,580
Vested and exercisable at June 30, 2023	3,285,716	$	2.80	7.2	$	8,819


	Six Months Ended June 30,
	2023	2022
Risk-free interest rate	3.47% - 4.13%	1.71% - 3.38%
Expected term (in years)	5.5 - 6.1	5.8 - 6.1
Expected volatility	90%	90%
Expected dividend yield	0%	0%


	Six Months Ended June 30,
	2023	2022
Shares issuable upon exercise of stock options	7,390,389	5,228,037
Unvested RSUs	328,500	—
Total	7,718,889	5,228,037


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested as of January 1, 2023	—	$	—
Granted	328,500	$	6.11
Unvested at June 30, 2023	328,500	$	6.11


	Three Months Ended June 30,				Change
	2023		2022		$		%
Operating expenses
Research and development	$	9,133	$	7,321	$	1,812	25	%
General and administrative	4,345		3,090		1,255		41	%
Total operating expenses	13,478		10,411		3,067		29	%
Loss from operations	(13,478)		(10,411)		(3,067)		(29)	%
Other income (expense)
Interest income, net	1,884		260		1,624		*
Other expense, net	(16)		—		(16)		*
Total other income	1,868		260		1,608		*
Net loss	$	(11,610)	$	(10,151)	$	(1,459)	(14)	%

SEC Form 10-Q filed by Acumen Pharmaceuticals Inc.