424B3

 

Filed pursuant to Rule 424(b)(3)

Registration Statement No. 333-262339

 

Prospectus Supplement No. 13

(To Prospectus dated March 21, 2022)

eFFECTOR Therapeutics, Inc.

 

https://cdn.kscope.io/fe7a59b46834fc6b9a0469d35e966e0b-img207245737_0.jpg 

This prospectus supplement updates, amends and supplements the prospectus dated March 21, 2022 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-262339). Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with the information contained in our Current Report on Form 10-Q (the “Quarterly Report”), filed with the SEC on November 7, 2022. Accordingly, we have attached the Quarterly Report to this prospectus supplement.

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus.

Our common stock and warrants are listed on the Nasdaq Capital Market under the symbols “EFTR” and “EFTRW.” On November 4, 2022, the closing price of our common stock was $0.53 and the closing price of our warrants was $0.22.

We are an “emerging growth company” under federal securities laws and are subject to reduced public company reporting requirements. Investing in our securities involves certain risks. See “Risk Factors” beginning on page 7 of the Prospectus.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus supplement is November 7, 2022.

 


 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

2

 

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit)

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Unaudited Condensed Consolidated Financial Statements

6

Item 2.

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

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

36

Item 4.

Controls and Procedures

36

 

 

 

PART II.

OTHER INFORMATION

37

 

 

 

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

37

Item 3.

Defaults Upon Senior Securities

37

Item 4.

Mine Safety Disclosures

37

Item 5.

Other Information

38

Item 6.

Exhibits

38

Signatures

40

 


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

eFFECTOR THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(in thousands, except share par value data)

(Unaudited)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,903

 

 

$

49,702

 

Short-term investments

 

 

21,053

 

 

 

 

Prepaid expenses and other current assets

 

 

2,565

 

 

 

3,194

 

Total current assets

 

 

35,521

 

 

 

52,896

 

Property and equipment, net

 

 

246

 

 

 

91

 

Operating lease right-of-use assets

 

 

125

 

 

 

166

 

Other assets

 

 

759

 

 

 

903

 

Total assets

 

$

36,651

 

 

$

54,056

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,214

 

 

$

516

 

Accrued expenses

 

 

3,615

 

 

 

3,418

 

Current term loans, net

 

 

18,985

 

 

 

 

Accrued final payment on term loans, current

 

 

1,100

 

 

 

 

Lease liabilities, current portion

 

 

54

 

 

 

44

 

Total current liabilities

 

 

24,968

 

 

 

3,978

 

Earn-out liability

 

 

6

 

 

 

12,130

 

Non-current term loans, net

 

 

 

 

 

18,760

 

Accrued final payment on term loans, non-current

 

 

 

 

 

1,100

 

Non-current warrant liability

 

 

40

 

 

 

678

 

Non-current lease liabilities

 

 

77

 

 

 

126

 

Total liabilities

 

 

25,091

 

 

 

36,772

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 100,000,000 and zero shares authorized at September 30, 2022
     and December 31, 2021 respectively; zero shares issued and outstanding as of
     September 30, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value; 1,000,000,000 shares authorized at September 30, 2022
     and December 31, 2021; 41,648,308 shares issued and 41,348,308 shares issued and
     outstanding as of September 30, 2022; 40,689,975 shares issued and 40,389,975 shares
     issued and outstanding as of December 31, 2021

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

145,931

 

 

 

138,181

 

Accumulated other comprehensive loss

 

 

(69

)

 

 

 

Accumulated deficit

 

 

(134,306

)

 

 

(120,901

)

Total stockholders' equity

 

 

11,560

 

 

 

17,284

 

Total liabilities and stockholders' equity

 

$

36,651

 

 

$

54,056

 

 

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

 

1


 

eFFECTOR THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Grant revenue

 

$

867

 

 

$

427

 

 

$

2,878

 

 

$

1,119

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

6,632

 

 

 

5,022

 

 

 

16,663

 

 

 

13,562

 

General and administrative

 

 

3,486

 

 

 

4,119

 

 

 

9,895

 

 

 

7,052

 

Total operating expenses

 

 

10,118

 

 

 

9,141

 

 

 

26,558

 

 

 

20,614

 

Operating loss

 

 

(9,251

)

 

 

(8,714

)

 

 

(23,680

)

 

 

(19,495

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

142

 

 

 

1

 

 

 

230

 

 

 

2

 

Interest expense

 

 

(570

)

 

 

(488

)

 

 

(1,554

)

 

 

(1,274

)

Other income (expense), net

 

 

38

 

 

 

290

 

 

 

(525

)

 

 

218

 

Change in fair value of earn-out liability

 

 

82

 

 

 

17,790

 

 

 

12,124

 

 

 

17,790

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

(492

)

Total other income (expense)

 

 

(308

)

 

 

17,593

 

 

 

10,275

 

 

 

16,244

 

Net income (loss)

 

$

(9,559

)

 

$

8,879

 

 

$

(13,405

)

 

$

(3,251

)

Comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

(9,559

)

 

 

8,879

 

 

 

(13,405

)

 

 

(3,251

)

Other comprehensive income (loss)

 

 

13

 

 

 

 

 

 

(69

)

 

 

 

Comprehensive income (loss):

 

$

(9,546

)

 

$

8,879

 

 

$

(13,474

)

 

$

(3,251

)

Net income (loss) per share attributable to common shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.23

)

 

$

0.53

 

 

$

(0.33

)

 

$

(0.49

)

Diluted

 

$

(0.23

)

 

$

0.42

 

 

$

(0.33

)

 

$

(0.49

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

41,171,990

 

 

 

16,701,967

 

 

 

41,047,533

 

 

 

6,588,282

 

Diluted

 

 

41,171,990

 

 

 

20,067,715

 

 

 

41,047,533

 

 

 

6,588,282

 

 

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

2


 

eFFECTOR THERAPEUTICS, INC.

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

(in thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Series A

Series B

 

 

Series C

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Convertible Preferred Stock

 

 

Convertible Preferred Stock

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

40,389,975

 

 

$

4

 

 

$

138,181

 

 

$

 

 

$

(120,901

)

 

$

17,284

 

Stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,828

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Issuance of common stock, net of issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

700,549

 

 

 

 

 

 

3,791

 

 

 

 

 

 

 

 

 

3,791

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,137

 

 

 

 

 

 

 

 

 

1,137

 

Unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50

)

 

 

 

 

 

(50

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,069

 

 

 

3,069

 

Balance at March 31, 2022

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

41,095,352

 

 

$

4

 

 

$

143,112

 

 

$

(50

)

 

$

(117,832

)

 

$

25,234

 

Issuance of common stock, net of issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,438

 

 

 

 

 

 

94

 

 

 

 

 

 

 

 

 

94

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,242

 

 

 

 

 

 

 

 

 

1,242

 

Unrealized loss on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(32

)

 

 

 

 

 

(32

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,915

)

 

 

(6,915

)

Balance at June 30, 2022

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

41,152,790

 

 

$

4

 

 

$

144,448

 

 

$

(82

)

 

$

(124,747

)

 

$

19,623

 

Issuance of common stock, net of issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

195,518

 

 

 

 

 

 

(85

)

 

 

 

 

 

 

 

 

(85

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,568

 

 

 

 

 

 

 

 

 

1,568

 

Unrealized gain on short-term investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

 

13

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,559

)

 

 

(9,559

)

Balance at September 30, 2022

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

 

$

 

 

 

 

41,348,308

 

 

$

4

 

 

$

145,931

 

 

$

(69

)

 

$

(134,306

)

 

$

11,560

 

 

3


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Series A

 

 

Series B

 

 

Series C

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Convertible Preferred Stock

 

 

Convertible Preferred Stock

 

 

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Deficit

 

Balance at December 31, 2020

 

 

11,563,819

 

 

$

46,567

 

 

 

10,154,819

 

 

$

51,084

 

 

 

6,734,590

 

 

$

35,573

 

 

 

 

1,445,065

 

 

$

 

 

$

4,454

 

 

$

 

 

$

(136,699

)

 

$

(132,245

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

188

 

 

 

 

 

 

 

 

 

188

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,582

)

 

 

(6,582

)

Balance at March 31, 2021

 

 

11,563,819

 

 

$

46,567

 

 

 

10,154,819

 

 

$

51,084

 

 

 

6,734,590

 

 

$

35,573

 

 

 

 

1,445,065

 

 

$

 

 

$

4,642

 

 

$

 

 

$

(143,281

)

 

$

(138,639

)

Stock option exercises

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,451

 

 

 

 

 

 

15

 

 

 

 

 

 

 

 

 

15

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

161

 

 

 

 

 

 

 

 

 

161

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,548

)