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2022-10-13

 

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 September 30, 2022

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: 001-39247

 

IMARA INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

81-1523849

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

116 Huntington Avenue, 6th Floor

Boston, Massachusetts

02116

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (617) 206-2020

 

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 $0.001 per share

 

IMRA

 

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, 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 October 20, 2022, the registrant had 26,287,264 shares of common stock, $0.001 par value per share, outstanding.

 

 


 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Quarterly Report on Form 10-Q, including statements regarding our plans to discontinue the Ardent and Forte clinical trials of tovinontrine and our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things:

 

statements related to the transactions contemplated by the Agreement and Plan of Merger, dated as of October 13, 2022, or the Merger Agreement, among us, Iguana Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of ours, or Merger Sub, and Enliven Therapeutics, Inc., a Delaware corporation, or Enliven, pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Enliven, with Enliven continuing as a wholly owned subsidiary of ours and the surviving corporation of the merger, which we refer to as the Merger;

 

statements related to the transactions contemplated by the Asset Purchase Agreement, dated as of September 6, 2022, or the Asset Purchase Agreement, between us and Cardurion Pharmaceuticals, Inc., or Cardurion, providing for the sale of tovinontrine (IMR-687) and all other assets of ours related to our PDE9 program, which we refer to as the Asset Sale;

 

anticipated cost savings in connection with our discontinuation of tovinontrine (IMR-687) and our April 2022 workforce reduction;

 

the impact of the COVID-19 pandemic and our response to it;

 

our estimates regarding expenses, future revenue, timing of any future revenue, capital requirements and need for additional financing if we decide to pursue any future product development efforts;

 

if we decide to pursue any future product development efforts, our plans to develop and, if approved, subsequently commercialize any product candidates;

 

the timing of and our ability to submit applications for, obtain and maintain regulatory approvals for any product candidates we may develop if we decide to pursue any future product development efforts;

 

our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash, cash equivalents and investments;

 

our commercialization, marketing and manufacturing capabilities and strategy if we decide to pursue any future product development and commercialization efforts;

 

our expectations regarding our ability to obtain and maintain intellectual property protection for any product candidates we may develop if we decide to pursue any future product development efforts;

 

our ability to identify products, product candidates or technologies with significant commercial potential that are consistent with our commercial objectives if we decide to pursue any future product development efforts;

 

the impact of government laws and regulations;

 

our competitive position and expectations regarding developments and projections relating to our competitors and any competing therapies that are or become available if we decide to pursue any future product development efforts;

 

our ability to maintain and establish collaborations or obtain additional funding if we decide to pursue any future product development efforts; and

 

our expectations regarding the time during which we will be an emerging growth company under the JOBS Act if we decide to pursue any future product development efforts.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.  In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make.

We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in the "Risk Factors" section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make.


You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

RISK FACTOR SUMMARY

Our business is subject to a number of risks that if realized could materially affect our business, financial condition, results of operations, cash flows and access to liquidity. These risks are discussed more fully in Part II, Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q. Our principal risks include the following:

 

The Merger with Enliven may not be consummated or may not deliver the anticipated benefits we expect.

 

Certain provisions of the Merger Agreement may discourage third parties from submitting alternative acquisition proposals, including proposals that may be superior to the arrangements contemplated by the Merger Agreement.

 

The announcement and pendency of the Merger, whether or not consummated, may adversely affect the trading price of our common stock and our business prospects.

 

The exchange ratio set forth in the Merger Agreement is not adjustable based on the market price of our common stock, so the merger consideration at the closing of the Merger may have a greater or lesser value than at the time the Merger Agreement was signed.

 

Lawsuits may be filed against us and the members of our board of directors arising out of the proposed merger, which may delay or prevent the proposed Merger.

 

Failure to consummate the Merger may result in us paying a termination fee to Enliven and could harm our common stock price and our future business and operations.

 

If we do not successfully consummate the Merger with Enliven, our board of directors may dissolve or liquidate our assets to pursue a dissolution and liquidation. In such an event, the amount of cash available for distribution to our stockholders will depend heavily on the timing of such transaction or liquidation.

 

There can be no guarantees that the Asset Sale will be completed. Failure to complete, or unexpected delays in completing, the Asset Sale or any termination of the Asset Purchase Agreement could have an adverse effect on our ability to consummate the Merger and our financial condition and results of operations.

 

Our decision to discontinue development of tovinontrine and the related reduction in our workforce may not result in the anticipated savings and could disrupt our business.

 

We have incurred significant losses since our inception, and we expect to incur losses over the next several years.

 

If the Merger is not completed, we will reconsider our strategic alternatives, including dissolving and liquidating our assets, pursuing another strategic transaction, or operating our business. Our future capital requirements depend on many factors, and adequate additional financing may not be available to us on acceptable terms, or at all.

 

Our limited operating history may make it difficult for you to evaluate the success and operations of our business to date and to assess our future viability or strategy with respect to conducting ongoing operations or liquidations.

 

Our business and operations have been and may continue to be adversely affected by the ongoing COVID-19 pandemic as may the operations of our suppliers and manufacturers and other third-party service providers.

 

Clinical drug development involves a lengthy and expensive process, with an uncertain outcome. If we decide to pursue any future product development efforts, we may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of any product candidates.

 

If we decide to pursue any future product development efforts, we expect to face substantial competition, which may result in others discovering, developing or commercializing products before or more successfully than we do.

 

If we fail to comply with our obligations under our existing license agreements, or under any future intellectual property licenses, or otherwise experience disruptions to our business relationships with our current or any future licensors, we could lose intellectual property rights that are important to our business.

 

If we are unable to obtain, maintain, enforce and protect patent protection for our technology and any product candidates we may seek to develop or if the scope of the patent protection obtained is not sufficiently broad, our competitors could develop and commercialize technology and products similar or identical to product candidates we may seek to develop, and our ability to successfully develop and commercialize our technology and any product candidates we may seek to develop may be adversely affected.

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2022 and 2021

2

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021

3

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

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

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

Item 4.

Controls and Procedures

29

PART II.

OTHER INFORMATION

30

Item 1A.

Risk Factors

30

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

73

Item 6.

Exhibits

74

Signatures

75

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

IMARA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

September 30,

2022

 

 

December 31,

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

49,491

 

 

$

48,309

 

Short-term investments

 

 

6,813

 

 

 

41,969

 

Prepaid expenses and other current assets

 

 

2,800

 

 

 

2,418

 

Total current assets

 

 

59,104

 

 

 

92,696

 

Property and equipment, net

 

 

 

 

 

250

 

Right of use assets - operating leases

 

 

 

 

 

525

 

Other assets

 

 

 

 

 

175

 

Total assets

 

$

59,104

 

 

$

93,646

 

LIABILITIES & STOCKHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

767

 

 

$

2,360

 

Accrued expenses and other current liabilities

 

 

1,051

 

 

 

4,604

 

Operating lease liability, current

 

 

 

 

 

246

 

Total current liabilities

 

 

1,818

 

 

 

7,210

 

Operating lease liability, non-current

 

 

 

 

 

406

 

Total liabilities

 

 

1,818

 

 

 

7,616

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares

   issued or outstanding as of September 30, 2022; no shares authorized, issued or

   outstanding as of December 31, 2021

 

 

 

 

 

 

Common stock, $0.001 par value per share; 200,000,000 shares

   authorized as of September 30, 2022 and December 31, 2021, respectively;

   26,287,264 shares issued and outstanding as of September 30, 2022 and

   December 31, 2021, respectively

 

27

 

 

 

27

 

Additional paid-in capital

 

 

235,457

 

 

 

233,516

 

Accumulated other comprehensive income

 

 

(4

)

 

 

(16

)

Accumulated deficit

 

 

(178,194

)

 

 

(147,497

)

Total stockholders’ equity

 

 

57,286

 

 

 

86,030

 

Total liabilities and stockholders’ equity

 

$

59,104

 

 

$

93,646

 

 

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

1


IMARA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

182

 

 

$

10,397

 

 

$

18,760

 

 

$

27,586

 

General and administrative

 

 

4,649

 

 

 

3,262

 

 

 

12,253

 

 

 

9,522

 

Total operating expenses

 

 

4,831

 

 

 

13,659

 

 

 

31,013

 

 

 

37,108

 

Loss from operations

 

 

(4,831

)

 

 

(13,659

)

 

 

(31,013

)

 

 

(37,108

)

Total other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

242

 

 

 

30

 

 

 

430

 

 

 

161

 

Other expense

 

 

(20

)

 

 

(18

)

 

 

(114

)

 

 

(118

)

Total other income, net

 

 

222

 

 

 

12

 

 

 

316

 

 

 

43

 

Net loss

 

$

(4,609

)

 

$

(13,647

)

 

$

(30,697

)

 

$

(37,065

)

Net loss attributable to common stockholders—basic and diluted

 

$

(4,609

)

 

$

(13,647

)

 

$

(30,697

)

 

$

(37,065

)

Weighted-average common shares outstanding—basic and diluted

 

 

26,287,264

 

 

 

24,898,346

 

 

 

26,287,264

 

 

 

20,099,976

 

Net loss per share attributable to common stockholders—basic and

   diluted

 

$

(0.18

)

 

$

(0.55

)

 

$

(1.17

)

 

$

(1.84

)

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,609

)

 

$

(13,647

)

 

$

(30,697

)

 

$

(37,065

)

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on investments

 

 

31

 

 

 

(2

)

 

 

12

 

 

 

(6

)

Comprehensive loss

 

$

(4,578

)

 

$

(13,649

)

 

$

(30,685

)

 

$

(37,071

)

 

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

 

2


 

 

IMARA INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except share and per share data)

(Unaudited)

 

 

 

COMMON

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCK

$0.001 PAR

VALUE

 

 

ADDITIONAL

PAID-IN

 

 

ACCUMULATED

OTHER

COMPREHENSIVE

 

 

ACCUMULATED

 

 

TOTAL

STOCKHOLDERS’

 

 

 

SHARES

 

 

AMOUNT

 

 

CAPITAL

 

 

INCOME (LOSS)

 

 

DEFICIT

 

 

EQUITY

 

Balance at December 31, 2020

 

 

17,548,263

 

 

$

18

 

 

$

180,526

 

 

$

4

 

 

$

(96,113

)

 

$

84,435

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

947

 

 

 

 

 

 

 

 

 

947

 

Exercise of stock options

 

 

68,279

 

 

 

 

 

 

472

 

 

 

 

 

 

 

 

 

472

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,257

)

 

 

(10,257

)

Balance at March 31, 2021

 

 

17,616,542

 

 

$

18

 

 

$

181,945

 

 

$

1

 

 

$

(106,370

)

 

$

75,594

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

917

 

 

 

 

 

 

 

 

 

917

 

Issuance of common stock under ATM offering, net of

   issuance costs of $357

 

 

231,291

 

 

 

1

 

 

 

1,344

 

 

 

 

 

 

 

 

 

1,345

 

Exercise of stock options and issuance of stock under the

   Employee Stock Purchase Plan

 

 

63,104

 

 

 

 

 

 

273

 

 

 

 

 

 

 

 

 

273

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

(1

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,161

)

 

 

(13,161

)

Balance at June 30, 2021

 

 

17,910,937

 

 

$

19

 

 

$

184,479

 

 

 

 

 

 

(119,531

)

 

 

64,967

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,003

 

 

 

 

 

 

 

 

 

1,003

 

Issuance of common stock under ATM and July 2021 offering,

   net of issuance costs of $210

 

 

8,333,333

 

 

 

8

 

 

 

46,899

 

 

 

 

 

 

 

 

 

46,907

 

Exercise of stock options and issuance of stock under the

   Employee Stock Purchase Plan

 

 

31,452

 

 

 

 

 

 

145

 

 

 

 

 

 

 

 

 

145

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,647

)

 

 

(13,647

)

Balance at September 30, 2021

 

 

26,275,722

 

 

$

27

 

 

$

232,526

 

 

$

(2

)

 

$

(133,178

)

 

$

99,373

 

3


 

 

 

 

 

COMMON

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCK

$0.001 PAR

VALUE

 

 

ADDITIONAL

PAID-IN

 

 

ACCUMULATED

OTHER

COMPREHENSIVE

 

 

ACCUMULATED

 

 

TOTAL STOCKHOLDERS’

 

 

 

SHARES

 

 

AMOUNT

 

 

CAPITAL

 

 

INCOME (LOSS)

 

 

DEFICIT

 

 

EQUITY

 

Balance at December 31, 2021

 

 

26,287,264

 

 

$

27

 

 

$

233,516

 

 

$

(16

)

 

$

(147,497

)

 

$

86,030

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,056

 

 

 

 

 

 

 

 

 

1,056

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(35

)

 

 

 

 

 

(35

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,639

)

 

 

(14,639

)

Balance at March 31, 2022

 

 

26,287,264

 

 

$

27

 

 

$

234,572

 

 

$

(51

)

 

$

(162,136

)

 

$

72,412

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

385

 

 

 

 

 

 

 

 

 

385

 

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

16

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,449

)

 

 

(11,449

)

Balance at June 30, 2022

 

 

26,287,264

 

 

$

27

 

 

$

234,957

 

 

$

(35

)

 

$

(173,585

)

 

$

61,364

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

500

 

 

 

 

 

 

 

 

 

500

 

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

31

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,609

)

 

 

(4,609

)

Balance at September 30, 2022

 

 

26,287,264

 

 

$

27

 

 

$

235,457

 

 

$

(4

)

 

$

(178,194

)

 

$

57,286

 

 

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

 

4


 

 

IMARA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(30,697

)

 

$

(37,065

)

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

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

1,941

 

 

 

2,867

 

Depreciation expense

 

 

612

 

 

 

74

 

Amortization and accretion on investments

 

 

110

 

 

 

103

 

Non-cash lease expense

 

 

(12

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

(382

)

 

 

(975

)

Accounts payable

 

 

(1,593

)

 

 

505

 

Accrued expenses and other current liabilities

 

 

(3,553

)

 

 

229

 

Operating lease assets and liabilities, net

 

 

(114

)

 

 

(24

)

Net cash used in operating activities

 

 

(33,688

)

 

 

(34,286

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from maturities and sales of short-term investments

 

 

35,058

 

 

 

42,637

 

Purchases of short-term investments

 

 

 

 

 

(29,766

)

Purchases of property and equipment

 

 

(363

)

 

 

(12

)

Net cash provided by investing activities

 

 

34,695

 

 

 

12,859

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from July 2021 offering, net of underwriting discounts and commissions

 

 

 

 

 

47,000

 

Proceeds from ATM offering, net of underwriting discounts and commissions

 

 

 

 

 

1,818

 

Payment of issuance costs

 

 

 

 

 

(567

)

Proceeds from exercise of options

 

 

 

 

 

860

 

Net cash provided by financing activities

 

 

 

 

 

49,111

 

Net increase in cash, cash equivalents and restricted cash

 

$

1,007

 

 

$

27,684

 

Cash, cash equivalents and restricted cash, beginning of period

 

$

48,484

 

 

$

47,786

 

Cash, cash equivalents and restricted cash, end of period

 

$

49,491

 

 

$

75,470

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Right of use asset obtained in exchange for lease liabilities

 

$

1,886

 

 

$

 

Unrealized loss on investments

 

$

12

 

 

$

(6

)

 

The following table provides a reconciliation of the cash, cash equivalents, and restricted cash balances as of each of the periods shown above:

 

 

 

Nine Months Ended

September 30,

 

 

 

2022

 

 

2021

 

Cash and cash equivalents

 

$

49,491

 

 

$

75,295

 

Restricted cash (included in other assets)

 

 

 

 

 

175

 

Total cash, cash equivalents and restricted cash

 

$

49,491

 

 

$

75,470

 

 

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

5


 

IMARA INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of the Business

IMARA Inc. (“IMARA” or the “Company”) is a biopharmaceutical company that has been dedicated to developing and commercializing novel therapeutics to treat patients suffering from serious diseases. The Company was incorporated in January 2016 under the laws of the State of Delaware, and its principal offices are in Boston, Massachusetts.

On April 5, 2022, the Company announced the results from interim analyses of its Ardent Phase 2b clinical trial of tovinontrine (IMR-687) in patients with sickle cell disease (“SCD”) and Forte Phase 2b clinical trial of tovinontrine in patients with ß-thalassemia. Based on the data generated by these interim analyses, the Company decided to discontinue the Ardent and Forte trials as well as the further development of tovinontrine in SCD and ß-thalassemia.  The Company also decided to discontinue development of tovinontrine in heart failure with preserved ejection fraction, as well as its development plans with respect to IMR-261.  In connection with these events, the Company’s Board of Directors approved a reduction in workforce designed to substantially reduce the Company’s operating expenses while it undertakes a comprehensive assessment of its strategic options to maximize stockholder value. The Workforce Reduction was completed as of September 30, 2022 and the Company incurred approximately $2.1 million of expenses comprised of notice and employee severance and retention pa