pnt-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022


☐			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: 001-39311

POINT BIOPHARMA GLOBAL INC.

(Exact name of registrant as specified in its charter)


Delaware		85-0800493
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

4850 West 78th Street
Indianapolis	IN	46268
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (317) 543-9957

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

PNT

The

Nasdaq

Capital 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 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 ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, par value $0.0001 per share – 90,124,283 shares outstanding as of May 9, 2022.


PART I. FINANCIAL INFORMATION			1
Item 1. Unaudited Interim Condensed Consolidated Financial Statements:			1
Interim Condensed Consolidated Balance Sheets – March 31, 2022 (unaudited) and December 31, 2021			1
Unaudited Interim Condensed Consolidated Statements of Operations – Three Months ended March 31, 2022 and March 31, 2021			2
Unaudited Interim Condensed Consolidated Statements of Stockholders’ Equity - Three Months ended March 3 1 , 202 2 and March 3 1 , 2021			3
Unaudited Interim Condensed Consolidated Statements of Cash Flows – Three Months ended March 31, 2022 and March 31, 2021			4
Notes to Unaudited Interim Condensed Consolidated Financial Statements			5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			15
Item 3. Quantitative and Qualitative Disclosures about Market Risk			23
Item 4. Controls and Procedures			23
PART II. OTHER INFORMATION			25
Item 1. Legal Proceedings			25
Item 1A. Risk Factors			25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 3. Defaults Upon Senior Securities			25
Item 4. Mine Safety Disclosures			25
Item 5. Other Information			25
Item 6. Exhibits			26
SIGNATURES			27


	March 31, 2022
	(Unaudited)	December 31, 2021
	$	$
ASSETS
Current assets
Cash and cash equivalents	227,385,398	238,815,991
Prepaid expenses and other current assets	5,228,394	5,030,565
Total current assets	232,613,792	243,846,556

Property, plant and equipment, net	20,368,465	19,412,086
Total assets	252,982,257	263,258,642

LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	6,119,722	1,738,470
Accrued liabilities	7,194,136	5,990,516
Income taxes payable	328,903	250,978
Total current liabilities	13,642,761	7,979,964

Deferred tax liability	65,592	65,592
Total liabilities	13,708,353	8,045,556

Commitments and contingencies (note 11)

Stockholders’ equity
Common Stock, par value $0.0001 per share, 430,000,000 authorized, 90,122,472 and 90,121,794 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	9,012	9,012
Additional paid-in capital	314,930,174	314,488,782
Accumulated deficit	(75,665,282)	(59,284,708)
Total stockholders’ equity	239,273,904	255,213,086

Total liabilities and stockholders’ equity	252,982,257	263,258,642


	For the three months ended
	March 31, 2022		March 31, 2021
	$		$
Operating expenses
Research and development	12,500,848		4,269,298
General and administrative	3,807,942		1,464,692
Total operating expenses	16,308,790		5,733,990
Loss from operations	(16,308,790)		(5,733,990)

Other income (expenses)
Finance income (costs)	47,973		(2,799)
Foreign currency loss	(31,641)		(7,207)
Total other income (expenses)	16,332		(10,006)

Loss before provision for income taxes	(16,292,458)		(5,743,996)
Provision for income taxes	(88,116)		(40,425)
Net loss	(16,380,574)		(5,784,421)

Net loss per basic and diluted common share:
Basic and diluted net loss per common share	$	(0.18)	$	(0.10)
Basic and diluted weighted average common shares outstanding	90,122,269		56,673,734


	POINT Biopharma Inc. common shares		Common Stock		Additional Paid-in Capital	Accumulated Deficit	Total Equity
	Number	Amount	Number	Amount
	#	$	#	$	$	$	$
Balance at December 31, 2021	—	—	90,121,794	9,012	314,488,782	(59,284,708)	255,213,086
Issuance of shares of Common Stock in connection with stock option exercises	—	—	678	—	942	—	942
Stock-based compensation	—	—	—	—	440,450	—	440,450
Net loss	—	—	—	—	—	(16,380,574)	(16,380,574)
Balance at March 31, 2022	—	—	90,122,472	9,012	314,930,174	(75,665,282)	239,273,904


	POINT Biopharma Inc. common shares		Common Stock		Additional Paid-in Capital	Accumulated Deficit	Total Equity
	Number	Amount	Number	Amount
	#	$	#	$	$	$	$
Balance at December 31, 2020 (as previously reported)	15,233,884	15,234	—	—	26,847,271	(13,382,227)	13,480,278
Retroactive application of the recapitalization due to the Business Combination (refer to Note 3)	(15,233,884)	(15,234)	54,647,656	5,465	9,769	—	—
Balance at December 31, 2020, effect of the Business Combination (refer to Note 3)	—	—	54,647,656	5,465	26,857,040	(13,382,227)	13,480,278
Issuance of shares of Common Stock in connection with exercise of warrants	—	—	2,869,799	287	19,999,713	—	20,000,000
Issuance of shares of Common Stock in connection with stock option exercises	—	—	64,570	6	449,994	—	450,000
Stock-based compensation	—	—	—	—	477,245	—	477,245
Net loss	—	—	—	—	—	(5,784,421)	(5,784,421)
Balance at March 31, 2021, effect of the Business Combination (refer to Note 3)	—	—	57,582,025	5,758	47,783,992	(19,166,648)	28,623,102


	For the three months ended
	March 31, 2022	March 31, 2021
	$	$
Cash flows from operating activities
Net loss:	(16,380,574)	(5,784,421)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation on property, plant and equipment	224,234	—
Stock-based compensation expense	440,450	477,245
Amortization of debt issuance costs	—	2,799
Changes in operating assets and liabilities
Prepaid expenses and other current assets	(197,829)	(2,704,890)
Deferred financing costs	—	(1,553,499)
Accounts payable	3,920,227	(2,914,505)
Accrued liabilities	1,407,823	1,469,950
Income taxes payable	77,925	40,425
Amount due to related party within accrued liabilities	17,140	—
Net cash used in operating activities	(10,490,604)	(10,966,896)

Cash flows from investing activities
Purchase of property, plant and equipment	(940,931)	(186,801)
Net cash used in investing activities	(940,931)	(186,801)

Cash flows from financing activities
Issuance of shares of Common Stock in connection with exercise of warrants	—	20,000,000
Issuance of shares of Common Stock in connection with stock option exercises	942	450,000
Net cash provided by financing activities	942	20,450,000

Net (decrease) increase in cash and cash equivalents	(11,430,593)	9,296,303
Cash and cash equivalents, beginning of period	238,815,991	10,546,749
Cash and cash equivalents, end of period	227,385,398	19,843,052

Supplemental disclosure of cash flow information:
Cash paid for income taxes	(116)	—
Cash paid for interest on mortgage payable	—	(29,143)
Non-cash investment activities:
Purchase of property, plant and equipment recorded in accounts payable and accrued liabilities	1,052,186	2,713,921


			Recapitalization
Cash - RACA Trust and cash (net of redemptions)			121,770,367
Cash - PIPE Financing			165,000,000
Less: Underwriting fees, costs incurred by RACA and other direct and incremental costs			(21,887,685)
Net proceeds from the Business Combination, net of costs incurred by RACA and direct and incremental costs paid per the statement of cash flows			264,882,682


			Number of Shares
RACA Class A and Class B shares outstanding prior to the Business Combination			16,039,769
Class A shares issued pursuant to the PIPE Financing			16,500,000
Business Combination and PIPE Financing shares as converted into Common Stock			32,539,769
Conversion of POINT Biopharma Inc. common shares into Common Stock			57,582,025
Total shares of POINT Biopharma Global Inc. Common Stock outstanding immediately following the Business Combination			90,121,794


	As of March 31, 2022	As of December 31, 2021
	$	$
Insurance	1,301,003	2,175,379
Clinical trial expenses	2,059,566	1,973,609
Deposit on production equipment	1,505,890	703,461
Canadian harmonized sales tax receivable	90,026	72,666
Other	271,909	105,450
Total	5,228,394	5,030,565


	As of March 31, 2022	As of December 31, 2021
	$	$
Land and building	16,745,615	—
Property in development	—	16,561,032
Machinery and equipment	3,096,412	2,132,768
Furniture and fixtures	600,781	590,545
Computer equipment	149,891	127,741
	20,592,699	19,412,086
Less: Accumulated depreciation	(224,234)	—
Property, plant and equipment, net	20,368,465	19,412,086


Asset Category			Estimated Useful Life
Computer equipment			5 years
Machinery and equipment			7 years
Furniture and fixtures			7 years
Building			20 years


	Number of Shares	Weighted Average Exercise Price	Weighted- Average Remaining Contractual Term (in years)
Outstanding as of December 31, 2021	3,825,751	4.78
Granted	1,705,197	8.02
Exercised	(678)	1.39
Forfeited	(7,200)	7.03
Outstanding as of March 31, 2022	5,523,070	5.77	5.30
Vested and expected to vest as of March 31, 2022	5,523,070	5.77	5.30
Options exercisable as of March 31, 2022	1,452,389	3.64	5.20


	Three months ended March 31, 2022	Three months ended March 31, 2021
Risk-free interest rate	1.24% - 2.51%	0.72%
Expected term (in years)	4.25	5.37
Expected volatility	72% - 73%	65%
Expected dividend yield	—%	—%


	For the three months Ended March 31, 2022	For the three months Ended March 31, 2021	Change
(In U.S. dollars)	$	$	$	%
Salaries and benefits	3,738,530	1,018,370	2,720,160	267.1	%
Sponsored research & product licenses	750,000	922,287	(172,287)	(18.7)	%
Clinical trials	4,729,141	1,793,779	2,935,362	163.6	%
Contract manufacturing	2,709,583	363,093	2,346,490	646.3	%
Regulatory consulting	65,373	171,769	(106,396)	(61.9)	%
Depreciation and overhead	508,221	—	508,221	100.0	%
Total	12,500,848	4,269,298	8,231,550	192.8	%


	As of March 31, 2022	As of December 31, 2021
	$	$
Accrued personnel costs	4,789,580	3,440,558
Accrued research and development costs	1,302,147	1,142,056
Accrued corporate legal fees and other professional services	531,480	654,945
Accrued costs for purchases of property, plant and equipment	423,170	648,196
Other accrued costs	147,759	104,761
Total	7,194,136	5,990,516


	Three months ended March 31, 2022		Three months ended March 31, 2021
Net loss attributable to common stockholders	$	16,380,574	$	5,784,421
Weighted-average common shares outstanding-basic and diluted	90,122,269		56,673,734
Net loss per share attributable to common stockholders-basic and diluted	$	0.18	$	0.10


	Three months ended March 31, 2022	Three months ended March 31, 2021
	$	$
Consulting fees on business activities to Board member	66,696	29,986
Reimbursement to Board member for occupancy costs	17,778	17,235
Total	84,474	47,221


	As of March 31, 2022	As of December 31, 2021	Change
(In U.S. dollars)	$	$	$	%
Current assets	232,613,792	243,846,556	(11,232,764)	(4.6)	%
Current liabilities	13,642,761	7,979,964	5,662,797	71.0	%
Total working capital	218,971,031	235,866,592	(16,895,561)	(7.2)	%


Exhibit Number						Description
3.1						Certificate of Incorporation of POINT Biopharma Global Inc. (incorporated by reference to Exhibit 3.1 to the Form 8-K filed by the Company on July 1, 2021).
3.2						By-laws of POINT Biopharma Global Inc. (incorporated by reference to Exhibit 3.2 to the Form 8-K filed by the Company on July 1, 2021).
31.1*						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a).
31.2*						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a).
32*						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) or Rule 15d-14(b).
101.INS*						XBRL Instance Document
101.SCH*						XBRL Taxonomy Extension Schema Document
101.CAL*						XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*						XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*						XBRL Taxonomy Extension Label Linkbase Document
101.PRE*						XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


		POINT BIOPHARMA GLOBAL INC.

Date: May 13, 2022

	By:	/s/Joe McCann.
		Dr. Joe McCann, Ph.D.
		Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/Bill Demers
		Bill Demers
		Chief Financial Officer
		(Principal Financial Officer)

SEC Form 10-Q filed by POINT Biopharma Global Inc.