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, 2023

☐

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

Commission File Number: 001-38630

Aridis Pharmaceuticals, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware		47-2641188
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

983 University Avenue, Bldg. B
Los Gatos, California		95032
(Address of principal executive offices)		(Zip Code)

(408) 385-1742

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common Stock		ARDS		OTC

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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Small 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 7(a)(2)(B) of the Securities 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 number of shares of the registrant’s common stock, $0.0001 par value per share, outstanding at June 30, 2023 was 36,077,532.

Table of Contents

		Page

	PART I - FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2023, and 2022 (unaudited)	4

	Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three and six months ended June 30, 2023, and 2022 (unaudited)	5

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited)	6

	Notes to Condensed Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33

Item 4.	Controls and Procedures	43

	PART II OTHER INFORMATION	43

Item 1.	Legal Proceedings	43

Item 1A.	Risk Factors	44

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	44

Item 3	Default Upon Senior Securities	44

Item 4	Mine Safety Disclosures	44

Item 5.	Other Information	44

Item 6.	Exhibits	45

Signatures		46

PART I — FINANCIAL INFORMATION

Item 1. CONDENSED CONSOLIDATED FINANICAL STATEMENTS (UNADUITED)

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	June 30,			December 31,
	2023			2022
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	19		$	4,876
Restricted cash		—			183
Accounts receivable		200			1,000
Other receivables		100			240
Contract costs		—			1,986
Prepaid asset		3,565			3,341
Total current assets		3,884			11,626
Property and equipment, net		569			730
Right-of-use assets, net		1,188			1,417
Intangible assets, net		14			17
Restricted cash, non-current		500			500
Contract costs, non-current		—			78
Other assets		327			327
Total assets	$	6,482		$	14,695
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	6,237		$	2,308
Accrued liabilities		8,461			9,564
Lease liabilities		563			538
Contract liabilities		380			20,173
Note payable		—			519
Note payable (at fair value)		4,730			3,781
Other liabilities		23			15
Total current liabilities		20,394			36,898
Contract liabilities, non-current		—			737
Lease liabilities, non-current		1,002			1,292
Total liabilities		21,396			38,927
Commitments and contingencies (Note 12)		-			-
Stockholders’ deficit:
Preferred stock (par value $0.0001; 60,000,000 shares authorized; zero shares issued and outstanding as of June 30, 2023 and December 31, 2022)		—			—
Common stock (par value $0.0001; 100,000,000 shares authorized; 36,077,532 and 27,033,532 shares issued and outstanding as of June 30, 2023 and December 31, 2022)		4			3
Additional paid-in capital		168,894			166,380
Accumulated other comprehensive income		6,526			5,051
Accumulated deficit		(190,338	)		(195,666	)
Total stockholders’ deficit		(14,914	)		(24,232	)
Total liabilities and stockholders’ deficit	$	6,482		$	14,695

See accompanying notes to the condensed consolidated financial statements (unaudited).

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

	2023			2022			2023			2022
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue:
Grant revenue	$	45		$	292		$	1,127		$	1,479
License revenue		19,602			—			19,602			—
Total revenue		19,647			292			20,729			1,479
Operating expenses:
Research and development		4,668			6,348			10,199			12,798
General and administrative		1,310			1,681			3,124			3,842
Total operating expenses		5,978			8,029			13,323			16,640
Loss from operations		13,669			(7,737	)		7,406			(15,161	)
Other income (expense):
Interest income (expense), net		3			8			30			(240	)
Other income		26			23			51			45
Change in fair value of note payable		(1,554	)		(273	)		(2,159	)		(389	)
Net income (loss)	$	12,144		$	(7,979	)	$	5,328		$	(15,745	)
Earnings (net loss) per share:
Basic	$	0.34		$	(0.45	)	$	0.16		$	(0.89	)
Diluted	$	0.33		$	(0.45	)	$	0.16		$	(0.89	)

Weighted-average common shares outstanding used in computing net loss per share available to common stockholders:
Basic		36,077,532			17,701,592			33,261,841			17,701,592
Diluted		36,572,960			17,701,592			33,917,422			17,701,592

Net income (loss)	$	12,144		$	(7,979	)	$	5,328		$	(15,745	)
Other comprehensive (loss) income		614			—			1,475			1,844
Total comprehensive income (loss)	$	12,758		$	(7,979	)	$	6,803		$	(13,901	)

See accompanying notes to the condensed consolidated financial statements (unaudited).

Aridis Pharmaceuticals, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Deficit

(In thousands, except share amounts)

	Shares		Dollars		Capital		Deficit			Income		Deficit
	Three Months Ended June 30, 2023 (unaudited)
										Accumulated
	Common Stock				Additional Paid-In		Accumulated			Other Comprehensive		Total Stockholders’
	Shares		Dollars		Capital		Deficit			Income		Deficit
Balances as of March 31, 2023		36,077,532	$	4	$	168,684	$	(202,482	)	$	5,912	$	(27,882	)
Change in fair value - notes payable		—		—		—		—			614		614
Stock-based compensation		—		—		210		—			—		210
Net loss		—		—		—		12,144			—		12,144
Balances as of June 30, 2023		36,077,532	$	4	$	168,894	$	(190,338	)	$	6,526	$	(14,914	)

	Three Months Ended June 30, 2022 (unaudited)
										Accumulated
	Common Stock				Additional Paid-In		Accumulated			Other Comprehensive		Total Stockholders’
	Shares		Dollars		Capital		Deficit			Income		Deficit
Balances as of March 31, 2022		17,701,592	$	2	$	152,650	$	(173,061	)	$	—	$	(20,409	)
Stock-based compensation		—		—		348		—			—		348
Stock issued in exchange for accrued liability		—		—		107		—			—		107
Net loss		—		—		—		(7,979	)				(7,979	)
Balances as of June 30, 2022		17,701,592	$	2	$	153,105	$	(181,040	)	$	—	$	(27,933	)

Six Months Ended June 30, 2023 (unaudited)

Accumulated

Common Stock

Additional

Paid-In

Accumulated

Other Comprehensive

Total

Stockholders’

Dollars

Capital

SEC Form 10-Q filed by Aridis Pharmaceuticals Inc.