10-Q
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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 June 30, 2023

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: 001-39269

 

ORIC PHARMACEUTICALS, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

47-1787157

(State or other jurisdiction of incorporation or organization)

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

240 E. Grand Ave, 2nd Floor

South San Francisco, CA

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 388-5600

 

Not applicable

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

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, $0.0001 par value per share

 

ORIC

 

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 August 3, 2023, the registrant had 54,532,614 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

3

Balance Sheets

3

Statements of Operations and Comprehensive Loss

4

 

Statements of Stockholders’ Equity

5

Statements of Cash Flows

6

Notes to Unaudited 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

19

Item 4.

Controls and Procedures

20

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

21

Item 1A.

Risk Factors

21

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

72

Item 3.

Defaults Upon Senior Securities

72

Item 4.

Mine Safety Disclosures

72

Item 5.

Other Information

72

Item 6.

Exhibits

73

SIGNATURES

74

 

 

 

i


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this quarterly report on Form10-Q, including statements regarding our future results of operations and financial position, business strategy, development plans, planned preclinical studies and clinical trials, future results of clinical trials, expected research and development costs, regulatory strategy, timing and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “would,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this quarterly report on Form 10-Q include, but are not limited to, statements about:

the ability of our clinical trials to demonstrate safety and efficacy of our product candidates, and other positive results;
the timing, progress and results of preclinical studies and clinical trials for ORIC-114, ORIC-533, ORIC-944 and other product candidates we may develop, including statements regarding the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the trials will become available, and our research and development programs;
the timing, scope and likelihood of regulatory filings and approvals, including timing of Investigational New Drug, or IND, or Clinical Trial Application, or CTA, applications and final Food and Drug Administration, or FDA, approval of ORIC-114, ORIC-533, ORIC-944 and any other future product candidates;
the potential benefits of and activity under the company’s collaboration, licenses and other third-party agreements;
the timing, scope or likelihood of foreign regulatory filings and approvals;
our ability to develop and advance our current product candidates and programs into, and successfully complete, clinical studies;
our manufacturing, commercialization, and marketing capabilities and strategy;
our plans relating to commercializing our product candidates, if approved, including the geographic areas of focus and sales strategy;
the need to hire additional personnel and our ability to attract and retain such personnel;
our expectations regarding the impact of a global pandemic or other public health emergencies on our business;
the size of the market opportunity for our product candidates, including our estimates of the number of patients who suffer from the diseases we are targeting;
our expectations regarding the approval and use of our product candidates in combination with other drugs;
our competitive position and the success of competing therapies that are or may become available;
our estimates of the number of patients that we will enroll in our clinical trials;
the beneficial characteristics, safety, efficacy and therapeutic effects of our product candidates;
our ability to obtain and maintain regulatory approval of our product candidates;
our plans relating to the further development of our product candidates, including additional indications we may pursue;
existing regulations and regulatory developments in the United States, Europe and other jurisdictions;
our intellectual property position, including the scope of protection we are able to establish and maintain for intellectual property rights covering ORIC-114, ORIC-533, ORIC-944 and other product candidates we may develop, including the extensions of existing patent terms where available, the validity of intellectual property rights held by third parties, and our ability not to infringe, misappropriate or otherwise violate any third-party intellectual property rights;
our continued reliance on third parties to conduct additional clinical trials of our product candidates, and for the manufacture of our product candidates for preclinical studies and clinical trials;
our ability to obtain, and negotiate favorable terms of, any collaboration, licensing or other arrangements that may be necessary or desirable to develop, manufacture or commercialize our product candidates;

1


 

the pricing and reimbursement of ORIC-114, ORIC-533, ORIC-944 and other product candidates we may develop, if approved;
the rate and degree of market acceptance and clinical utility of ORIC-114, ORIC-533, ORIC-944 and other product candidates we may develop;
our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;
our financial performance;
the period over which we estimate our existing cash, cash equivalents and investments will be sufficient to fund our operating plan;
the impact of laws and regulations;
our expectations regarding the period during which we will qualify as an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (JOBS Act); and
our anticipated use of our existing resources.

We have based these forward-looking statements largely on our current expectations and projections about our business, the industry in which we operate and financial trends that we believe may affect our business, financial condition, results of operations and prospects, and these forward-looking statements are not guarantees of future performance or development. These forward-looking statements speak only as of the date of this quarterly report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described in the section titled “Risk factors” and elsewhere in this quarterly report on Form 10-Q. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, 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. 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 or otherwise.

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. These statements are inherently uncertain and you are cautioned not to unduly rely upon these statements.

 

2


 

Part I – FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

ORIC PHARMACEUTICALS, INC.

BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

(unaudited)

 

 

 

 

Assets

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

103,683

 

 

$

66,840

 

Short-term investments

 

 

160,476

 

 

 

139,432

 

Prepaid expenses and other current assets

 

 

4,199

 

 

 

4,185

 

Total current assets

 

 

268,358

 

 

 

210,457

 

 

 

 

 

 

 

Long-term investments

 

 

9,575

 

 

 

21,951

 

Property and equipment, net

 

 

3,250

 

 

 

3,253

 

Other assets

 

 

10,633

 

 

 

11,517

 

Total assets

 

$

291,816

 

 

$

247,178

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

3,191

 

 

$

1,320

 

Accrued liabilities

 

 

11,343

 

 

 

14,068

 

Total current liabilities

 

 

14,534

 

 

 

15,388

 

 

 

 

 

 

 

Other long-term liabilities

 

 

8,483

 

 

 

9,439

 

Total liabilities

 

 

23,017

 

 

 

24,827

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 200,000,000 shares authorized; no shares issued and outstanding at June 30, 2023 and December 31, 2022

 

 

 

 

 

 

Common stock, $0.0001 par value; 1,000,000,000 shares authorized; 54,532,171 and 45,089,537 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively

 

 

6

 

 

 

5

 

Additional paid-in capital

 

 

650,479

 

 

 

557,867

 

Accumulated deficit

 

 

(381,119

)

 

 

(334,230

)

Accumulated other comprehensive loss

 

 

(567

)

 

 

(1,291

)

Total stockholders' equity

 

 

268,799

 

 

 

222,351

 

Total liabilities and stockholders' equity

 

$

291,816

 

 

$

247,178

 

 

See accompanying notes to unaudited financial statements.

3


 

ORIC PHARMACEUTICALS, INC.

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except share and per share amounts)

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

18,787

 

 

$

13,834

 

 

$

38,303

 

 

$

30,662

 

General and administrative

 

6,205

 

 

 

6,862

 

 

 

12,367

 

 

 

13,292

 

Total operating expenses

 

24,992

 

 

 

20,696

 

 

 

50,670

 

 

 

43,954

 

Loss from operations

 

(24,992

)

 

 

(20,696

)

 

 

(50,670

)

 

 

(43,954

)

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

2,048

 

 

 

409

 

 

 

3,781

 

 

 

508

 

Net loss

$

(22,944

)

 

$

(20,287

)

 

$

(46,889

)

 

$

(43,446

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 Unrealized (loss) gain on investments

 

(68

)

 

 

(429

)

 

 

724

 

 

 

(1,128

)

Comprehensive loss

$

(23,012

)

 

$

(20,716

)

 

$

(46,165

)

 

$

(44,574

)

Net loss per share, basic and diluted

$

(0.50

)

 

$

(0.51

)

 

$

(1.03

)

 

$

(1.10

)

Weighted-average shares outstanding, basic and diluted

 

45,654,208

 

 

 

39,481,628

 

 

 

45,373,745

 

 

 

39,456,812

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited financial statements.

 

4


 

ORIC PHARMACEUTICALS, INC.

STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share amounts)

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Gain (Loss)

 

 

Equity

 

Balance at December 31, 2022

 

 

45,089,537

 

 

$

5

 

 

$

557,867

 

 

$

(334,230

)

 

$

(1,291

)

 

$

222,351

 

Exercise of common stock options

 

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon vesting of RSUs

 

 

1,662

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,614

 

 

 

 

 

 

 

 

 

3,614

 

Unrealized gain on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

792

 

 

 

792

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(23,945

)

 

 

 

 

 

(23,945

)

Balance at March 31, 2023

 

 

45,091,215

 

 

$

5

 

 

$

561,481

 

 

$

(358,175

)

 

$

(499

)

 

$

202,812

 

Issuance of common stock and pre-funded warrants, net

 

 

9,285,710

 

 

 

1

 

 

 

84,773

 

 

 

 

 

 

 

 

 

84,774

 

Issuance of common stock upon vesting of RSUs

 

 

9,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock from ESPP

 

 

145,938

 

 

 

 

 

 

400

 

 

 

 

 

 

 

 

 

400

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,825

 

 

 

 

 

 

 

 

 

3,825

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(68

)

 

 

(68

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(22,944

)

 

 

 

 

 

(22,944

)

Balance at June 30, 2023

 

 

54,532,171

 

 

$

6

 

 

$

650,479

 

 

$

(381,119

)

 

$

(567

)

 

$

268,799

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Gain (Loss)

 

 

Equity

 

Balance at December 31, 2021

 

 

39,430,120

 

 

$

4

 

 

$

518,183

 

 

$

(245,108

)

 

$

(103

)

 

$

272,976

 

Exercise of common stock options

 

 

8,482

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

16

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,945

 

 

 

 

 

 

 

 

 

3,945

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(699

)

 

 

(699

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(23,159

)

 

 

 

 

 

(23,159

)

Balance at March 31, 2022

 

 

39,438,602

 

 

$

4

 

 

$

522,144

 

 

$

(268,267

)

 

$

(802

)

 

$

253,079

 

Exercise of common stock options

 

 

38,407

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

61

 

Issuance of common stock from ESPP

 

 

98,445

 

 

 

 

 

 

354

 

 

 

 

 

 

 

 

 

354

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,092

 

 

 

 

 

 

 

 

 

4,092

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(429

)

 

 

(429

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(20,287

)

 

 

 

 

 

(20,287

)

Balance at June 30, 2022

 

 

39,575,454

 

 

$

4

 

 

$

526,651

 

 

$

(288,554

)

 

$

(1,231

)

 

$

236,870

 

 

See accompanying notes to unaudited financial statements.

5


 

ORIC PHARMACEUTICALS, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

 

Six Months Ended
June 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(46,889

)

 

$

(43,446

)

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

 

 

 

 

 

 

Depreciation

 

 

512

 

 

 

498

 

Stock-based compensation expense

 

 

7,439

 

 

 

8,037

 

Loss on fixed asset disposals

 

 

9

 

 

 

 

Accretion of discount on investments, net

 

 

(2,124

)

 

 

(52

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

892

 

 

 

(2,112

)

Accounts payable and accrued other liabilities

 

 

(1,612

)

 

 

(3,419

)

Net cash used in operating activities

 

 

(41,773

)

 

 

(40,494

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Acquisitions of property and equipment

 

 

(715

)

 

 

(1,390

)

Purchases of investments

 

 

(99,285

)

 

 

(145,473

)

Maturities of investments

 

 

93,465

 

 

 

10,000

 

Net cash used in investing activities

 

 

(6,535

)

 

 

(136,863

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from issuance of common stock and pre-funded warrants, net

 

 

84,774

 

 

 

 

Proceeds from issuance of common stock under ESPP

 

 

400

 

 

 

354

 

Proceeds from stock option exercises

 

 

 

 

 

77

 

Net cash provided by financing activities

 

 

85,174

 

 

 

431

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

36,866

 

 

 

(176,926

)

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

67,308

 

 

 

226,474

 

Cash, cash equivalents and restricted cash at end of period

 

$

104,174

 

 

$

49,548

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the balance sheets to the amounts shown in the statements of cash flows above, in thousands:

 

 

June 30,

 

 

 

2023

 

 

2022

 

Cash and cash equivalents

 

$

103,683

 

 

$

49,080

 

Restricted cash included in other assets

 

 

491

 

 

 

468

 

Total cash, cash equivalents and restricted cash

 

$

104,174

 

 

$

49,548

 

 

See accompanying notes to unaudited financial statements.

6


 

ORIC PHARMACEUTICALS, INC.

NOTES TO UNAUDITED FINANCIAL STATEMENTS

1. Description of the Business

ORIC Pharmaceuticals, Inc. (ORIC or the Company) is a clinical-stage biopharmaceutical company dedicated to improving patients’ lives by Overcoming Resistance In Cancer. The Company was incorporated in Delaware in August 2014 and has offices in South San Francisco and San Diego, California. The Company’s principal operations are in the United States and the Company operates in one segment.

Since inception, the Company has devoted its primary efforts to raising capital, internal research and development activities and business development efforts, and has incurred significant operating losses and negative cash flows from operations. In August 2020, the Company licensed from Mirati Therapeutics, Inc. (Mirati) development and commercialization rights to an allosteric inhibitor program directed towards the polycomb repressive complex 2 (PRC2) and in October 2020, the Company licensed from Voronoi Inc. (Voronoi) development and commercialization rights to a brain penetrant, orally bioavailable, irreversible inhibitor designed to selectively target epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) with high potency against exon 20 insertion mutations.

As of June 30, 2023, the Company had an accumulated deficit of $381.1 million. Through June 30, 2023, all of the Company’s financial support has been provided by proceeds from the issuance of common stock, pre-funded warrants and convertible preferred stock.

As the Company continues its expansion, it may seek additional financing and/or strategic investments, however, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The accompanying financial statements do not include any adjustments that might be necessary if it were unable to continue as a going concern. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months from the date of the issuance of these financial statements.

Private Placement

On June 24, 2023, the Company entered into a securities purchase agreement with a select group of institutional and accredited healthcare specialist investors for the private placement of 9,285,710 shares of common stock at a price of $7.00 per share and pre-funded warrants to purchase 2,857,142 shares of common stock at a purchase price of $6.9999 per pre-funded warrant, resulting in gross proceeds of $85.0 million. The pre-funded warrants have an exercise price of $0.0001 per share of common stock, were immediately exercisable and will remain exercisable until exercised in full. The purchase price per share represents a premium to the market price at the time of sale. After deducting expenses related to the private placement of $0.2 million, the net proceeds to the Company from the private placement were $84.8 million. The private placement closed on June 27, 2023.

Registered Direct Offering

On December 21, 2022, the Company entered into a securities purchase agreement with Pfizer, Inc. (Pfizer) pursuant to which the Company sold 5,376,344 shares of common stock at a price of $4.65 per share to Pfizer for gross proceeds of $25.0 million. The Company sold the shares to Pfizer in a registered direct offering conducted without an underwriter or placement agent and pursuant to an effective shelf registration statement. After deducting offering expenses of $0.4 million, the net proceeds received from the direct offering were $24.6 million. The transaction closed on December 23, 2022. The direct offering with Pfizer was entered into concurrently with a clinical development collaboration.

At-The-Market Sales Agreement and Offering

On May 6, 2021, the Company entered into an "at the market" (ATM) sales agreement with Jefferies LLC as the Company's sales agent, under which the Company may offer and sell from time to time up to $150 million of shares of the Company's common stock in negotiated transactions or transactions that are deemed to be an ATM offering. On July 8, 2021, the Company raised gross proceeds of $50.0 million through the sale of 2,597,402 shares in an ATM offering, with participation based on unsolicited interest received from a healthcare specialist fund. The Company sold such shares at a purchase price per share of $19.25, a premium to the market price at the time of sale. After deducting commissions and other offering expenses related to the ATM offering of $1.9 million, the net proceeds to the Company from the transaction were $48.1 million.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions of the Securities and Exchange Commission (SEC) on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in

7


 

annual financial statements prepared in accordance with GAAP, have been omitted. The accompanying unaudited financial statements include all known adjustments necessary for a fair presentation of the results as required by GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Operating results for the interim period are not necessarily indicative of future results.

The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K filed with the SEC. Furthermore, the Company’s significant accounting policies are disclosed in the audited financial statements for the periods ended December 31, 2022 and 2021, included in the Company’s Annual Report on Form 10-K. Since the date of those financial statements, there have been no changes to its significant accounting policies.

Recently Issued Accounting Pronouncements

There are no recently issued accounting pronouncements that would materially impact the Company’s financial statements and related disclosures.

3. License Agreements and Clinical Development Collaboration

Pfizer collaboration

On December 21, 2022, the Company entered into a clinical development collaboration (the Pfizer Collaboration) for a potential Phase 2 study of ORIC-533 in multiple myeloma with Pfizer. Through the Pfizer Collaboration, the Company plans to potentially advance ORIC-533 into a Phase 2 combination study with elranatamab, Pfizer’s investigational B-cell maturation antigen (BCMA) CD3-targeted bispecific antibody in development for the treatment of multiple myeloma. The Company will maintain full economic ownership and control of ORIC-533.

Concurrent with the Pfizer Collaboration, the Company sold 5,376,344 shares of common stock a