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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 September 30, 2024

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: 001-41989

 

BOUNDLESS BIO, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

83-0751369

(State or other jurisdiction of

incorporation or organization)

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

9880 Campus Point Drive, Suite 120

San Diego, CA 92121

92121

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (858) 766-9912

 

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 $0.0001 per share

 

BOLD

 

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 November 6, 2024, the registrant had 22,300,043 shares of common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

1

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Balance Sheets

1

 

Condensed Statements of Operations and Comprehensive Loss

2

 

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity / (Deficit)

3

 

Condensed Statements of Cash Flows

5

 

Notes to Condensed Financial Statements

6

Item 2.

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

16

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

24

Item 4.

Controls and Procedures

24

 

 

 

PART II.

OTHER INFORMATION

26

 

 

 

Item 1.

Legal Proceedings

26

Item 1A.

Risk Factors

26

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

26

Item 3.

Defaults Upon Senior Securities

26

Item 4.

Mine Safety Disclosures

26

Item 5.

Other Information

26

Item 6.

Exhibits

27

Signatures

28

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Boundless Bio, Inc.

Condensed Balance Sheets

(in thousands, except share and par value data)

 

 

September 30,
2024

 

 

December 31,
2023

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,214

 

 

$

23,706

 

Short-term investments

 

 

126,921

 

 

 

97,046

 

Prepaid expenses and other current assets

 

 

3,314

 

 

 

3,452

 

Total current assets

 

 

170,449

 

 

 

124,204

 

Property and equipment, net

 

 

3,959

 

 

 

2,573

 

Right-of-use asset, net

 

 

109

 

 

 

2,002

 

Restricted cash

 

 

560

 

 

 

560

 

Other assets

 

 

16

 

 

 

555

 

Total assets

 

$

175,093

 

 

$

129,894

 

Liabilities, convertible preferred stock, and stockholders’ equity / (deficit)

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

7,041

 

 

$

4,266

 

Accrued compensation

 

 

2,848

 

 

 

2,898

 

Lease liabilities, current portion

 

 

121

 

 

 

2,195

 

Total current liabilities

 

 

10,010

 

 

 

9,359

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; no shares authorized, issued, or
   outstanding as of September 30, 2024;
287,446,844 shares authorized, issued,
   and outstanding as of December 31, 2023; liquidation preference of $
252.1
   million as of December 31, 2023

 

 

 

 

 

247,617

 

Stockholders’ equity / (deficit):

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 70,000,000 shares
  authorized and
no shares issued and outstanding as of September 30, 2024;
  
no shares authorized and no shares issued and outstanding as of
  December 31, 2023

 

 

 

 

 

 

Common stock, $0.0001 par value; 700,000,000 shares authorized,
   
22,254,537 shares issued, and 22,254,465 shares outstanding as of
   September 30, 2024;
402,600,000 shares authorized, 1,248,493 shares
   issued, and
1,247,012 shares outstanding as of December 31, 2023

 

 

2

 

 

 

 

Additional paid-in-capital

 

 

349,869

 

 

 

8,987

 

Accumulated other comprehensive income

 

 

236

 

 

 

40

 

Accumulated deficit

 

 

(185,024

)

 

 

(136,109

)

Total stockholders’ equity / (deficit)

 

 

165,083

 

 

 

(127,082

)

Total liabilities, convertible preferred stock, and stockholders’ equity / (deficit)

 

$

175,093

 

 

$

129,894

 

 

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

1


 

Boundless Bio, Inc.

Condensed Statements of Operations and Comprehensive Loss

(unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

14,089

 

 

$

11,645

 

 

$

41,953

 

 

$

32,223

 

General and administrative

 

 

4,626

 

 

 

3,308

 

 

 

13,036

 

 

 

8,777

 

Total operating expenses

 

 

18,715

 

 

 

14,953

 

 

 

54,989

 

 

 

41,000

 

Loss from operations

 

 

(18,715

)

 

 

(14,953

)

 

 

(54,989

)

 

 

(41,000

)

Other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

2,174

 

 

 

1,748

 

 

 

5,977

 

 

 

3,662

 

Other income, net

 

 

32

 

 

 

32

 

 

 

97

 

 

 

48

 

Total other income, net

 

 

2,206

 

 

 

1,780

 

 

 

6,074

 

 

 

3,710

 

Net loss

 

$

(16,509

)

 

$

(13,173

)

 

$

(48,915

)

 

$

(37,290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(16,509

)

 

$

(13,173

)

 

$

(48,915

)

 

$

(37,290

)

Unrealized gain on short-term investments

 

 

300

 

 

 

26

 

 

 

196

 

 

 

284

 

Comprehensive loss

 

$

(16,209

)

 

$

(13,147

)

 

$

(48,719

)

 

$

(37,006

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.74

)

 

$

(10.71

)

 

$

(3.22

)

 

$

(30.89

)

Shares used in calculation

 

 

22,254

 

 

 

1,230

 

 

 

15,204

 

 

 

1,207

 

 

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

2


 

Boundless Bio, Inc.

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity / (Deficit)

(unaudited)

(in thousands, except share data)

 

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Additional
paid-in

 

 

Accumulated
other
comprehensive

 

 

Accumulated

 

 

Total
stockholders'
equity /

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

income/ (loss)

 

 

deficit

 

 

(deficit)

 

Balance at December 31, 2023

 

 

287,446,844

 

 

$

247,617

 

 

 

 

1,247,012

 

 

$

 

 

$

8,987

 

 

$

40

 

 

$

(136,109

)

 

$

(127,082

)

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

522

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

15,104

 

 

 

 

 

 

59

 

 

 

 

 

 

 

 

 

59

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,328

 

 

 

 

 

 

 

 

 

1,328

 

Unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(61

)

 

 

 

 

 

(61

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,430

)

 

 

(15,430

)

Balance at March 31, 2024

 

 

287,446,844

 

 

$

247,617

 

 

 

 

1,262,638

 

 

$

 

 

$

10,376

 

 

$

(21

)

 

$

(151,539

)

 

$

(141,184

)

Issuance of common stock in initial public offering, net of $12,305 in discounts and offering costs

 

 

 

 

 

 

 

 

 

6,250,000

 

 

 

1

 

 

 

87,694

 

 

 

 

 

 

 

 

 

87,695

 

Conversion of convertible preferred stock into common stock upon initial public offering

 

 

(287,446,844

)

 

 

(247,617

)

 

 

 

14,740,840

 

 

 

1

 

 

 

247,616

 

 

 

 

 

 

 

 

 

247,617

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

524

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,135

 

 

 

 

 

 

 

 

 

2,135

 

Unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(43

)

 

 

 

 

 

(43

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,976

)

 

 

(16,976

)

Balance at June 30, 2024

 

 

 

 

$

-

 

 

 

 

22,254,102

 

 

$

2

 

 

$

347,823

 

 

$

(64

)

 

$

(168,515

)

 

$

179,246

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

363

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,045

 

 

 

 

 

 

 

 

 

2,045

 

Unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300

 

 

 

 

 

 

300

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,509

)

 

 

(16,509

)

Balance at September 30, 2024

 

 

 

 

$

 

 

 

 

22,254,465

 

 

$

2

 

 

$

349,869

 

 

$

236

 

 

$

(185,024

)

 

$

165,083

 

 

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

3


 

Boundless Bio, Inc.

Condensed Statements of Convertible Preferred Stock and Stockholders’ Equity / (Deficit) - Continued

(unaudited)

(in thousands, except share data)

 

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Additional
paid-in

 

 

Accumulated
other
comprehensive

 

 

Accumulated

 

 

Total
stockholders'

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

income/ (loss)

 

 

deficit

 

 

deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

144,589,706

 

 

$

147,946

 

 

 

 

1,167,240

 

 

$

 

 

$

5,377

 

 

$

(398

)

 

$

(86,675

)

 

 

(81,696

)

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

17,505

 

 

 

 

 

 

52

 

 

 

 

 

 

 

 

 

52

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

9,195

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

31

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

615

 

 

 

 

 

 

 

 

 

615

 

Unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

278

 

 

 

 

 

 

278

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,719

)

 

 

(11,719

)

Balance at March 31, 2023

 

 

144,589,706

 

 

$

147,946

 

 

 

 

1,193,940

 

 

$

 

 

$

6,075

 

 

$

(120

)

 

$

(98,394

)

 

$

(92,439

)

Issuance of Series C convertible preferred stock, net of $329 in issuance costs

 

 

142,857,138

 

 

 

99,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

12,164

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

36

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

7,209

 

 

 

 

 

 

26

 

 

 

 

 

 

 

 

 

26

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

927

 

 

 

 

 

 

 

 

 

927

 

Unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20

)

 

 

 

 

 

(20

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,398

)

 

 

(12,398

)

Balance as of June 30, 2023

 

 

287,446,844

 

 

$

247,617

 

 

 

 

1,213,313

 

 

$

 

 

$

7,064

 

 

$

(140

)

 

$

(110,792

)

 

$

(103,868

)

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

842

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

20,623

 

 

 

 

 

 

86

 

 

 

 

 

 

 

 

 

86

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

883

 

 

 

 

 

 

 

 

 

883

 

Unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,173

)

 

 

(13,173

)

Balance as of September 30, 2023

 

 

287,446,844

 

 

$

247,617

 

 

 

 

1,234,778

 

 

$

 

 

$

8,036

 

 

$

(114

)

 

$

(123,965

)

 

$

(116,043

)

 

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

4


 

Boundless Bio, Inc.

Condensed Statements of Cash Flows

(unaudited)

(in thousands)

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(48,915

)

 

$

(37,290

)

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

 

 

 

 

 

 

Stock-based compensation

 

 

5,508

 

 

 

2,425

 

Depreciation and amortization

 

 

790

 

 

 

710

 

Accretion of investments, net

 

 

(4,003

)

 

 

(2,093

)

Non-cash lease expense

 

 

1,894

 

 

 

1,673

 

Other

 

 

 

 

 

25

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(1,299

)

 

 

(2

)

Accounts payable and accrued liabilities

 

 

2,821

 

 

 

1,114

 

Operating lease liabilities

 

 

(2,074

)

 

 

(1,731

)

Net cash used in operating activities

 

 

(45,278

)

 

 

(35,169

)

Cash flows from investing activities

 

 

 

 

 

 

Purchases of investments

 

 

(161,029

)

 

 

(132,703

)

Maturities of investments

 

 

135,175

 

 

 

78,996

 

Purchases of property and equipment

 

 

(2,070

)

 

 

(365

)

Net cash used in investing activities

 

 

(27,924

)

 

 

(54,072

)

Cash flows from financing activities

 

 

 

 

 

 

Proceeds from the issuance of common stock from initial public offering, net of discounts

 

 

93,000

 

 

 

 

Payments of common stock offering costs

 

 

(3,349

)

 

 

(533

)

Proceeds from the issuance of convertible preferred stock

 

 

 

 

 

100,000

 

Convertible preferred stock issuance costs

 

 

 

 

 

(329

)

Proceeds from the exercise of stock options

 

 

59

 

 

 

143

 

Net cash provided by financing activities

 

 

89,710

 

 

 

99,281

 

Net increase in cash and cash equivalents

 

 

16,508

 

 

 

10,040

 

Cash, cash equivalents, and restricted cash at beginning of period

 

 

24,266

 

 

 

11,484

 

Cash, cash equivalents, and restricted cash at end of period

 

$

40,774

 

 

$

21,524

 

Components of cash, cash equivalents, and restricted cash

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,214

 

 

$

20,964

 

Restricted cash

 

 

560

 

 

 

560

 

Cash, cash equivalents, and restricted cash at end of period

 

$

40,774

 

 

$

21,524

 

Non-cash investing and financing activities

 

 

 

 

 

 

Change in unpaid common stock issuance costs

 

$

(197

)

 

$

1,304

 

Addition to ROU assets

 

$

 

 

$

282

 

Increase to ROU assets due to remeasurement of lease obligation

 

$

 

 

$

645

 

Vesting of early exercised stock options

 

$

5

 

 

$

91

 

Unpaid property and equipment purchases

 

$

106

 

 

$

65

 

 

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

5


 

Boundless Bio, Inc.

Notes to Condensed Financial Statements (Unaudited)

1.
Organization and Basis of Presentation

Description of Business

Boundless Bio, Inc. (the Company) is a clinical-stage precision oncology company dedicated to unlocking a new paradigm in cancer therapeutics to address the significant unmet need in patients with oncogene amplified tumors by targeting extrachromosomal DNA (ecDNA). The Company is focused on designing and developing small molecule drugs called ecDNA directed therapeutic candidates (ecDTx). The Company was incorporated in the state of Delaware on April 10, 2018 and is headquartered in San Diego, California.

Initial Public Offering

On April 2, 2024, the Company completed its initial public offering (IPO), pursuant to which it sold 6,250,000 shares of its common stock at a public offering price of $16.00 per share, resulting in net proceeds of approximately $87.7 million, after deducting underwriting discounts, commissions, and other offering expenses. Immediately prior to the closing of the IPO, the Company’s outstanding convertible preferred stock automatically converted into 14,740,840 shares of common stock. Following the closing of the IPO, no shares of convertible preferred stock were authorized or outstanding.

In connection with the closing of its IPO, on April 2, 2024, the Company’s certificate of incorporation was amended and restated to authorize 700,000,000 shares of common stock, par value $0.0001 per share, and 70,000,000 shares of undesignated preferred stock, par value of $0.0001 per share.

Reverse Stock Split

On March 19, 2024, the Company effected a one-for-19.5 reverse stock split of its issued and outstanding shares of common stock. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split and adjustment of the conversion ratios for each series of the Company’s convertible preferred stock. The par value and the number of authorized shares of the convertible preferred stock and common stock were not adjusted in connection with the reverse stock split.

Liquidity

Since the Company commenced operations in 2018, it has devoted substantially all of its efforts and resources to organizing and staffing the Company, business planning, raising capital, building its proprietary Spyglass platform, discovering its ecDTx, developing its ecDNA diagnostic candidate, establishing its intellectual property portfolio, conducting research, preclinical studies, and clinical trials, establishing arrangements with third parties for the manufacture of its ecDTx and related raw materials, and providing other general and administrative support for these operations.

Since inception, the Company has incurred significant operating losses and negative cash flows from its operations and expects that it will continue to do so into the foreseeable future as it continues its development of, seeks regulatory approval for, and potentially commercializes any of its ecDTx and seeks to discover and develop additional ecDTx, utilizes third parties to manufacture its ecDTx and related raw materials, seeks to develop its ecDNA diagnostic candidate, hires additional personnel, and expands and protects its intellectual property. If the Company obtains regulatory approval for any of its ecDTx, it expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution. As of September 30, 2024, the Company had an accumulated deficit of $185.0 million and cash, cash equivalents, and short-term investments of $167.1 million. The Company believes that its existing cash, cash equivalents, and short-term investments will be sufficient to fund its operations for at least 12 months from the issuance date of these unaudited condensed financial statements.

Basis of Presentation

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial statements are presented in U.S. dollars. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) promulgated by the Financial Accounting Standards Board (FASB).

6


Boundless Bio, Inc.

Notes to Condensed Financial Statements (Unaudited)

 

2.
Summary of Significant Accounting Policies

Unaudited Condensed Interim Financial Information

The condensed balance sheet as of September 30, 2024, the condensed statements of operations and comprehensive loss for the three and nine months ended September 30, 2024 and 2023, the condensed statements of convertible preferred stock and stockholders’ equity / (deficit) for the three and nine months ended September 30, 2024 and 2023, and the condensed statements of cash flows for the nine months ended September 30, 2024 and 2023 are unaudited. These unaudited condensed financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company’s financial position, results of operations, and cash flows for the interim period presented. The financial data and the other financial information contained in these notes to the condensed financial statements related to the three and nine months ended September 30, 2024 and 2023 are also unaudited. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period.

The condensed balance sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date. These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s prospectus (the Prospectus) dated March 27, 2024 related to its IPO filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, with the SEC on March 28, 2024.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.

On an ongoing basis, management evaluates its estimates, primarily related to stock-based compensation, the fair value of its investments and common stock, and accrued research and development costs. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company’s estimates relating to the valuation of stock options require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts.

The balance reflected in these financial statements as restricted cash represents a deposit account pledged as collateral to secure a standby letter of credit required as a security deposit on one of the Company’s leased facilities. The Company has classified the restricted cash as a noncurrent asset on its balance sheets as of September 30, 2024 and December 31, 2023.

Concentration of Credit Risk

Financial instruments, which potentially subject the Company to the concentration of credit risk, consist primarily of cash, cash equivalents, and investments. The Company maintains deposits in federally insured financial institutions which exceeded federally insured limits by $3.4 million as of September 30, 2024. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company’s investment policy includes guidelines for the quality of the related institutions and financial instruments and defines allowable investments that the Company may invest in, which the Company believes minimizes its exposure to concentration of credit risk.

Fair Value Measurements

Certain assets and liabilities are carried at fair value under U.S. GAAP. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset

7


Boundless Bio, Inc.

Notes to Condensed Financial Statements (Unaudited)

 

or liability. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

Cash, cash equivalents, and short-term investments are carried at fair value, determined according to the fair value hierarchy described above. The carrying values of the Company’s prepaid expenses, accounts payable, and accrued expenses approximate their fair value due to the short-term nature of these assets and liabilities. None of the Company’s non-financial assets or liabilities are recorded at fair value on a non-recurring basis.

Deferred Offering Costs and Common Stock Issuance Costs

The Company capitalizes certain legal, professional, accounting, and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficit) as a reduction of proceeds generated as a result of the offering. As of September 30, 2024 and December 31, 2023, there were $0 and $2.2 million of deferred offering costs, respectively. At the closing of the IPO, the amounts recorded in deferred offering costs were reclassified to additional paid-in capital within stockholders' equity.

Segments

Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment.

Convertible Preferred Stock

The Company’s convertible preferred stock is classified as temporary equity in the accompanying balance sheet as of December 31, 2023 and excluded from stockholders’ equity / (deficit) as the potential redemption of such stock was outside the Company’s control and would have required the redemption of the then-outstanding convertible preferred stock. The convertible preferred stock was not redeemable except for in the event of a liquidation, dissolution, or winding up of the Company. Costs incurred in connection with the issuance of convertible preferred stock were recorded as a reduction of gross proceeds from issuance. The Company did not accrete the carrying values of the convertible preferred stock to the redemption values since the occurrence of these events was not considered probable as of December 31, 2023. Immediately prior to the closing of the IPO on April 2, 2024, the Company’s outstanding convertible preferred stock automatically converted into 14,740,840 shares of common stock. Following the closing of the IPO, no shares of convertible preferred stock were authorized or outstanding.

Net Loss Per Share

Basic net loss per common share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock and potentially dilutive securities outstanding during the period. The Company’s potentially dilutive securities, which include its options to purchase common stock, common stock subject to repurchase related to unvested restricted stock and options early exercised, and, for periods through April 2, 2024, convertible preferred stock, have been excluded from the calculation of diluted net loss per share as the effect would reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share is the same.

Recently Adopted Accounting Pronouncements

As of September 30, 2024, several new accounting pronouncements had been issued by the FASB with future adoption dates. All applicable accounting pronouncements will be adopted by the Company by the date required. Management is reviewing the impact of

8


Boundless Bio, Inc.

Notes to Condensed Financial Statements (Unaudited)

 

adoption of all pending accounting pronouncements but is not yet in a position to determine their impact on the Company’s financial statements and the notes thereto.

3.
Fair Value Measurements

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy described in Note 2 above (in thousands):

 

 

 

 

 

Fair Value Measurements Using

 

As of September 30, 2024

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

28,991

 

 

$

28,991

 

 

$

 

 

$

 

U.S. government obligations (2)

 

 

125,980

 

 

 

 

 

 

125,980

 

 

 

 

Corporate debt securities (2)

 

 

8,399

 

 

 

 

 

 

8,399

 

 

 

 

Total fair value of assets

 

$

163,370

 

 

$

28,991

 

 

$

134,379

 

 

$

 

 

(1)
Included in cash and cash equivalents on the balance sheets.
(2)
Included in short-term investments on the balance sheets.

 

 

 

 

 

Fair Value Measurements Using

 

As of December 31, 2023

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

21,737

 

 

$

21,737

 

 

$

 

 

$

 

U.S. government obligations (2)

 

 

92,143

 

 

 

 

 

 

92,143

 

 

 

 

Corporate debt securities (2)

 

 

4,903

 

 

 

 

 

 

4,903

 

 

 

 

Total fair value of assets

 

$

118,783

 

 

$

21,737

 

 

$

97,046

 

 

$

 

 

(1)
Included in cash and cash equivalents on the balance sheets.
(2)
Included in short-term investments on the balance sheets.

The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices in active markets for identical assets. The Company’s investments consist of available-for-sale securities and are classified as Level 2 because their value is based on valuations using significant inputs derived from or corroborated by observable market data.

There were no transfers of assets between fair value levels for any period presented.

4.
Investments

The following tables summarize investments accounted for as available-for-sale securities (in thousands):