10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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 March 31, 2021


☐	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: 001-39971

Landos Biopharma, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware	81-5085535
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1800 Kraft Drive, Suite 216 Blacksburg, Virginia	24060
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (540) 218-2232

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

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

LABP

The Nasdaq Stock Market LLC

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 May 17, 2021, the registrant had 40,117,598 shares of common stock, $0.01 par value per share, outstanding.

Table of Contents


		Page

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss	4
	Condensed Consolidated Statements of Cash Flows	5
	Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

PART II.	OTHER INFORMATION	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 6.	Exhibits	24
Signatures		26

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements. (Unaudited)

Landos Biopharma, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)


	March 31,			December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	8,572		$	2,416
Marketable securities, available for sale		97,786			25,718
Incentive and tax receivables		1			154
Prepaid expenses and other current assets		3,386			202
Deferred offering costs		—			1,398
Total current assets		109,745			29,888
Property, plant and equipment-net		465			444
Total assets	$	110,210		$	30,332
Liabilities, convertible preferred stock and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	8,200		$	8,606
Accrued liabilities		364			1,939
Other current liabilities		255			489
Total current liabilities		8,819			11,034
Other liabilities		212			276
Total liabilities		9,031			11,310

Commitments and Contingencies		—			—
Convertible preferred stock, $0.01 par value; no shares authorized, issued or outstanding as of March 31, 2021; 11,260,608 shares authorized, issued and outstanding as of December 31, 2020: aggregate liquidation preference of $70,254 as of December 31, 2020		—			73,037

Stockholders’ equity (deficit):
Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued or outstanding as of March 31, 2021; no shares authorized, issued or outstanding as of December 31, 2020 Common stock, $0.01 par value; 200,000,000 shares authorized, 39,866,669 shares issued and outstanding as of March 31, 2021; 37,410,450 shares authorized, 12,767,909 shares issued and outstanding as of December 31, 2020		399			71
Additional paid-in-capital		166,429			1,633
Accumulated other comprehensive (loss) gain		(102	)		10
Accumulated deficit		(65,547	)		(55,729	)
Total stockholders' equity (deficit)		101,179			(54,015	)
Total liabilities, convertible preferred stock and stockholders’ equity	$	110,210		$	30,332

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

Landos Biopharma, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended
	March 31,
	2021			2020
Operating expenses:
Research and development	$	7,254		$	4,690
General and administrative		2,646			1,080
Total operating expenses		9,900			5,770
Loss from operations		(9,900	)		(5,770	)
Other income (expenses):
Interest expense		—			(1	)
Gain/(loss) from foreign exchange		18			(222	)
Other income, net		64			197
Other income (expense), net		82			(26	)
Net loss		(9,818	)		(5,796	)
Net loss per share, basic and diluted		(0.38	)		(0.49	)
Weighted-average shares used to compute net loss per share, basic and diluted		26,070,455			11,874,723
Net loss		(9,818	)		(5,796	)
Unrealized gain/(loss) on available-for-sale securities		(112	)		(686	)
Comprehensive loss		(9,930	)		(6,482	)

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

Landos Biopharma, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)


	Three Months Ended
	March 31,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	9,818		$	5,796
Adjustments to reconcile net earnings to net cash used in operating activities:
Compensation expense related to vesting of common stock issued to Xontogeny		—			13
Depreciation of property and equipment		43			29
Accrued interest on marketable securities		426			12
Stock-based compensation expense		1,023			—
Net realized gain/(loss) on sale of marketable securities		—			28
Net (accretion of discount) amortization of premium on marketable securities		(196	)		36
Gain/(loss) from foreign exchange		18			(223	)
Changes in operating assets and liabilities:
Incentive and tax receivables		153			—
Prepaid expenses and other assets		(2,212	)		56
Accounts payable		(422	)		2,792
Other liabilities		(1,575	)		(315	)
Net cash (used in) operating activities		(12,560	)		(3,368	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(64	)		(20	)
Purchase of available-for-sale marketable securities		(81,379	)		(1,251	)
Proceeds from sales and maturities of marketable securities		9,395			2,978
Net cash provided by (used in) investing activities		(72,048	)		1,707
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from initial public offering		90,506
Proceeds from exercise of stock options		258			—
Net cash provided by (used in) financing activities		90,764			—
Net change in cash and cash equivalents		6,156			(1,661	)
Cash and cash equivalents at beginning of period		2,416			9,808
Cash and cash equivalents at end of period	$	8,572		$	8,147

Supplemental non-cash disclosure: NONCASH INVESTING AND FINANCING ACTIVITY:
Deferred offering costs included in accounts payable and accrued liabilities	$	—		$	59
Purchases of fixed assets in accounts payable		—			23
Reclassification of par to additional paid-in-capital		2			—
Reclassification of series A and B convertible preferred stock to common stock		72,925			—
Unrealized loss on available-for-sale marketable securities		112			686

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

Landos Biopharma, Inc.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity

(Unaudited)

(in thousands, except share amounts)


	Convertible preferred stock				Convertible preferred stock				Common stock
	Shares		Amounts		Shares		Amounts		Shares		Amounts		Additional paid-in capital		Tranche right		Accumulated deficit			Accumulated other comprehensive loss			Total stockholders’ deficit
Balance at December 31, 2019		11,260,608		73,037		—		—		11,784,148	$	63	$	16		—	$	(25,585	)	$	(77	)	$	(25,583	)
Compensation expense related to vesting of common stock issued to Xontogeny		—		—		—		—		193,182		2		12		—		—			—			14
Unrealized gain / (loss) on available-for-sale securities		—		—		—		—		—		—		—		—		—			(686	)		(686	)
Net loss		—		—		—		—		—		—		—		—		(5,796	)		—			(5,796	)
Balance at March 31, 2020		11,260,608		73,037						11,977,330		65		28		—		(31,381	)		(763	)		(32,051	)

SEC Form 10-Q filed by Landos Biopharma Inc.