freq-10q_20190930.htm

 

 

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, 2019

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: 001-39062

 

FREQUENCY THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

47-2324450

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

19 Presidential Way, 2nd Floor

Woburn, MA

01801

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (866) 389-1970

 

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, $0.001 par value per share

 

FREQ

 

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      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 October 31, 2019, the registrant had 30,784,936 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

3

Item 1.

Financial Statements (Unaudited)

3

 

Consolidated Balance Sheets

3

 

Consolidated Statements of Operations

4

 

Consolidated Statement of Comprehensive Loss

5

 

Consolidated Statement of Convertible Preferred Stock, Non-Controlling Interest and Stockholder’s Deficit

6

 

Consolidated Statements of Cash Flows

8

 

Notes to Unaudited Consolidated Financial Statements

9

Item 2.

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

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

38

Item 4.

Controls and Procedures

39

PART II.

OTHER INFORMATION

40

Item 1.

Legal Proceedings

40

Item 1A.

Risk Factors

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

78

Item 3.

Defaults Upon Senior Securities

78

Item 4.

Mine Safety Disclosures

78

Item 5.

Other Information

78

Item 6.

Exhibits

79

Signatures

80

 

 

 

i


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or Quarterly Report, contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Quarterly Report, including statements regarding our future results of operations and financial position, business strategy, product candidates, clinical development plans and expectations, prospective products, product approvals, research and development costs, timing and likelihood of success, and plans and objectives of management for future operations and results, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the risks, uncertainties and assumptions described under the sections in this Quarterly Report titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These forward looking statements are subject to numerous risks, including, without limitation, the following:

the initiation, timing, progress and results of our preclinical and clinical trials and research and development of programs, including our ongoing Phase 2a clinical trial for FX-322 and our program to develop a product candidate for the treatment of multiple sclerosis, or MS;

our ability to continue to develop our progenitor cell activation, or PCA, platform and identify additional product candidates;

our ability to successfully complete clinical trials of any product candidate and obtain regulatory approval for it;

the timing or likelihood of regulatory filings and approvals, including our planned filing of an investigational new drug application for our MS product candidate;

the commercialization, marketing and manufacture of any product candidate, if approved;

the pricing and reimbursement of any product candidate, if approved;

the rate and degree of market acceptance and clinical utility of any products for which we receive regulatory approval;

the implementation of our strategic plans for our business, product candidates, and technology;

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates, PCA platform, and technology;

estimates of our expenses, future revenues, capital requirements, and our needs for additional financing;

our ability to maintain and establish collaborations, including our License and Collaboration Agreement with Astellas Pharma Inc.;

our financial performance and the sufficiency of our financial resources; and

developments relating to our competitors and our industry, including the impact of government regulation.

 

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. As a result of these factors, we cannot assure you that the forward-looking statements in this Quarterly Report will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise.

You should read this Quarterly Report and the documents that we reference in this Quarterly Report completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

2


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Frequency Therapeutics, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

(unaudited)

 

 

September 30,

2019

 

 

December 31,

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

142,274

 

 

$

42,189

 

Short-term marketable securities

 

 

23,047

 

 

 

 

Prepaid expenses and other current assets

 

 

1,400

 

 

 

748

 

Total current assets

 

 

166,721

 

 

 

42,937

 

Property and equipment, net

 

 

1,566

 

 

 

1,511

 

Deferred financing costs

 

 

2,461

 

 

 

 

Other assets

 

 

101

 

 

 

100

 

Total assets

 

$

170,849

 

 

$

44,548

 

Liabilities, Convertible Preferred Stock, Non-Controlling Interest and

   Stockholders’ Deficit

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,574

 

 

$

1,863

 

Royalty payable

 

 

16,000

 

 

$

 

Accrued expenses

 

 

3,100

 

 

 

1,749

 

Current portion of deferred revenue

 

 

49,362

 

 

 

 

Other current liabilities

 

 

168

 

 

 

161

 

Total current liabilities

 

 

72,204

 

 

 

3,773

 

Deferred revenue - net of current portion

 

 

6,400

 

 

 

 

Long-term liabilities

 

 

222

 

 

 

349

 

Total liabilities

 

 

78,826

 

 

 

4,122

 

Series C convertible preferred stock, $0.001 par value; 39,493,348 shares authorized

   at September 30, 2019: 39,492,960 shares issued and outstanding at September

   30, 2019; no shares authorized, issued or outstanding at December 31, 2018

 

 

62,701

 

 

 

 

Series B convertible preferred stock, $0.001 par value; 44,319,839 shares

   authorized at September 30, 2019 and December 31, 2018; 42,145,996

   and 41,857,005 shares issued and outstanding at September 30, 2019

   and December 31, 2018, respectively

 

 

38,490

 

 

 

38,224

 

Series B-1 convertible preferred stock, $0.001 par value; 10,000 shares

   authorized, issued and outstanding at September 30, 2019 and

   December 31, 2018

 

 

9

 

 

 

9

 

Series A convertible preferred stock, $0.001 par value; 64,891,735 shares

   authorized at September 30, 2019 and December 31, 2018; 62,528,507

   shares issued and outstanding at September 30, 2019 and December 31, 2018

 

 

46,694

 

 

 

46,694

 

Series A-1 convertible preferred stock, $0.001 par value; 10,000 shares

   authorized, issued and outstanding at September 30, 2019 and

   December 31, 2018

 

 

8

 

 

 

8

 

Non-controlling interest

 

 

3,773

 

 

 

3,773

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000,000 and 165,000,000 shares authorized at

   September 30, 2019 and December 31, 2018, respectively; 2,382,309 and

   2,084,710 shares issued and outstanding at September 30, 2019

   and December 31, 2018, respectively

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

3,585

 

 

 

804

 

Accumulated other comprehensive income

 

 

116

 

 

 

 

Accumulated deficit

 

 

(63,355

)

 

 

(49,088

)

Total stockholders’ deficit

 

 

(59,652

)

 

 

(48,282

)

Total liabilities, convertible preferred stock, non-controlling interest

   and stockholders’ deficit

 

$

170,849

 

 

$

44,548

 

 

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

3


 

Frequency Therapeutics, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

24,238

 

 

$

 

 

$

24,238

 

 

$

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty

 

 

16,000

 

 

 

 

 

 

16,000

 

 

 

 

Research and development

 

 

5,221

 

 

 

3,550

 

 

 

12,588

 

 

 

8,959

 

General and administrative

 

 

4,269

 

 

 

1,507

 

 

 

9,837

 

 

 

4,660

 

Total operating expenses

 

 

25,490

 

 

 

5,057

 

 

 

38,425

 

 

 

13,619

 

Loss from operations

 

 

(1,252

)

 

 

(5,057

)

 

 

(14,187

)

 

 

(13,619

)

Interest income

 

 

624

 

 

 

 

 

 

842

 

 

 

 

Interest expense

 

 

 

 

 

(63

)

 

 

 

 

 

(95

)

Realized gain on investments

 

 

62

 

 

 

 

 

 

88

 

 

 

 

Foreign exchange gain (loss)

 

 

(9

)

 

 

(16

)

 

 

4

 

 

 

(7

)

Net loss

 

 

(575

)

 

 

(5,136

)

 

 

(13,253

)

 

 

(13,721

)

Cumulative Series C convertible preferred stock

   dividends

 

 

(1,014

)

 

 

 

 

 

(1,014

)

 

 

 

Net loss attributable to common stockholders

 

$

(1,589

)

 

$

(5,136

)

 

$

(14,267

)

 

$

(13,721

)

Net loss per share attributable to common

   stockholders-basic and diluted

 

$

(0.73

)

 

$

(3.26

)

 

$

(7.17

)

 

$

(9.29

)

Weighted average shares outstanding-basic and

   diluted

 

 

2,163,289

 

 

 

1,575,728

 

 

 

1,990,106

 

 

 

1,476,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 


4


 

Frequency Therapeutics, Inc.

Consolidated Statement of Comprehensive Loss

(in thousands)

(unaudited)

 

 

 

 

Three Months Ended

September 30,

 

 

Nine Month Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net loss

 

$

(575

)

 

$

(5,136

)

 

$

(13,253

)

 

$

(13,721

)

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Unrealized gain (loss) on marketable securities

 

 

(34

)

 

 

 

 

 

116

 

 

 

 

Total comprehensive gain (loss)

 

 

(34

)

 

 

 

 

 

116

 

 

 

 

Comprehensive loss

 

$

(609

)

 

$

(5,136

)

 

$

(13,137

)

 

$

(13,721

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5


 

Frequency Therapeutics, Inc.

Consolidated Statement of Convertible Preferred Stock, Non-controlling Interest and Stockholders’ Deficit

(in thousands, except share and per share amounts) (unaudited) 

 

Series C

convertible

preferred

shares

issued

 

Series C

convertible

preferred

value

 

Series B

convertible

preferred

shares

issued

 

Series B

convertible

preferred

value

 

Series B-1

convertible

preferred

shares

issued

 

Series B-1

convertible

preferred

value

 

Series A

convertible

preferred

shares

issued

 

Series A

convertible

preferred

value

 

Series A-1

convertible

preferred

shares

issued

 

Series A-1

convertible

preferred

value

 

Non-

controlling

interest

 

Common

shares

issued

 

Common

par

value

 

Additional

paid-in

capital

 

Accumulated

other

comprehensive

income

 

Accumulated

deficit

 

Total

stock-

holders’

deficit

 

Balance,

   December 31, 2018

 

 

$

 

 

41,857,005

 

$

38,224

 

 

10,000

 

$

9

 

 

62,528,507

 

$

46,694

 

 

10,000

 

$

8

 

$

3,773

 

 

2,084,710

 

$

2

 

$

804

 

 

 

$

(49,088

)

$

(48,282

)

Stock-based

   compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,456

 

 

 

 

 

 

2,456

 

Issuance of common

   stock upon exercise

   of options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

297,599

 

 

 

 

325

 

 

 

 

 

 

325

 

Issuance of Series B

   convertible preferred

   stock

 

 

 

 

 

288,991

 

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series C

   convertible preferred

   stock

 

39,492,960

 

 

61,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accretion of Series C

   preferred dividend

 

 

 

1,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,014

)

 

(1,014

)

Accumulated other

   Comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116

 

 

 

 

116

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,253

)

 

(13,253

)

Balance,

   September 30,

   2019

 

39,492,960

 

$

62,701

 

 

42,145,996

 

$

38,490

 

 

10,000

 

$

9

 

 

62,528,507

 

$

46,694

 

 

10,000

 

$

8

 

$

3,773

 

 

2,382,309

 

$

2

 

$

3,585

 

$

116

 

$

(63,355

)

$

(59,652

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series C

convertible

preferred

shares

issued

 

Series C

convertible

preferred

value

 

Series B

convertible

preferred

shares

issued

 

Series B

convertible

preferred

value

 

Series B-1

convertible

preferred

shares

issued

 

Series B-1

convertible

preferred

value

 

Series A

convertible

preferred

shares

issued

 

Series A

convertible

preferred

value

 

Series A-1

convertible

preferred

shares

issued

 

Series A-1

convertible

preferred

value

 

Non-

controlling

interest

 

Common

shares

issued

 

Common

par

value

 

Additional

paid-in

capital

 

Accumulated

other

comprehensive

income

 

Accumulated

deficit

 

Total

stock-

holders’

deficit

 

Balance,

   June 30, 2019

 

 

 

 

 

42,145,996

 

$

38,490

 

 

10,000

 

$

9

 

 

62,528,507

 

$

46,694

 

 

10,000

 

$

8

 

$

3,773

 

 

2,304,268

 

$

2

 

$

2,499

 

$

150

 

$

(61,766

)

$

(59,115

)

Stock-based

   compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

925

 

 

 

 

 

 

925

 

Issuance of common

   stock upon exercise

   of options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,041

 

 

 

 

161

 

 

 

 

 

 

161

 

Issuance of Series C

   convertible preferred

   stock

 

39,492,960

 

 

61,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accretion of Series C

   preferred dividend

 

 

 

1,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,014

)

 

(1,014

)

Accumulated other

   Comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

 

 

 

(34

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(575

)

 

(575

)

Balance,

   September 30,

   2019

 

39,492,960

 

$

62,701

 

 

42,145,996

 

$

38,490

 

 

10,000

 

$

9

 

 

62,528,507

 

$

46,694

 

 

10,000

 

$

8

 

$

3,773

 

 

2,382,309

 

$

2

 

$

3,585

 

$

116

 

$

(63,355

)

$

(59,652

)

 

 

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

6


 

Frequency Therapeutics, Inc.

Consolidated Statement of Convertible Preferred Stock, Non-controlling Interest and Stockholders’ Deficit – (continued)

(in thousands, except share and per share amounts) (unaudited) 

 

 

Series A

convertible

preferred

shares

issued

 

Series A

convertible

preferred

value

 

Non-

controlling

interest

 

Common

shares

issued

 

Common

par

value

 

Additional

paid-in

capital

 

Accumulated

other

comprehensive

income

 

Accumulated

deficit

 

Total

stock-

holders’

deficit

 

Balance,

   December 31,

   2017

 

62,528,507

 

$

46,694

 

$

 

 

1,954,235

 

$

2

 

$

276

 

 

 

$

(29,920

)

$

(29,642

)

Stock-based

   compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

267

 

 

 

 

 

 

267

 

Issuance of common

   stock upon exercise

   of options

 

 

 

 

 

 

 

113,402

 

 

 

 

70

 

 

 

 

 

 

70

 

Non-controlling interest

 

 

 

 

 

1,772

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other

   Comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,721

)

 

(13,721

)

Balance,

   September 30,

   2018

 

62,528,507

 

$

46,694

 

$

1,772

 

 

2,067,637

 

$

2

 

$

613

 

$

 

$

(43,641

)

$

(43,026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A

convertible

preferred

shares

issued

 

Series A

convertible

preferred

value

 

Non-

controlling

interest

 

Common

shares

issued

 

Common

par

value

 

Additional

paid-in

capital

 

Accumulated

other

comprehensive

income

 

Accumulated

deficit

 

Total

stock-

holders’

deficit

 

Balance,

   June 30, 2018

 

62,528,507

 

$

46,694

 

$

1,772

 

 

2,016,966

 

$

2

 

$

480

 

$

 

$

(38,505

)

$

(38,023

)

Stock-based

   compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

102

 

 

 

 

 

 

102

 

Issuance of common

   stock upon exercise

   of options

 

 

 

 

 

 

 

50,671

 

 

 

 

31

 

 

 

 

 

 

31

 

Issuance of Series C

   convertible preferred

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accretion of Series C

   preferred dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other

   Comprehensive

   income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,136

)

 

(5,136

)

Balance,

   September 30,

   2018

 

62,528,507

 

$

46,694

 

$

1,772

 

 

2,067,637

 

$

2

 

$

613

 

$

 

$

(43,641

)

$

(43,026

)

 

 

 

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

 

 

7


 

Frequency Therapeutics, Inc.

Consolidated Statements of Cash Flows

(in thousands) (unaudited)

 

 

 

Nine Months Ended,

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(13,253

)

 

$

(13,721

)

Adjustments to reconcile net loss to net cash provided in operating

   activities:

 

 

 

 

 

 

 

 

Stock based compensation

 

 

2,456

 

 

 

267

 

Depreciation expense

 

 

588

 

 

 

444

 

Deferred lease incentives