Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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, 2023


☐			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: 000-30347

CURIS, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware						04-3505116
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

128 Spring Street, Building C - Suite 500, Lexington, Massachusetts 02421
(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 503-6500

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, Par Value $0.01 per share

CRIS

Nasdaq Capital 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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of October 26, 2023, there were 5,883,063 shares of the registrant’s common stock, par value $0.01 per share, outstanding.

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CURIS, INC. AND SUBSIDIARIES QUARTERLY REPORT ON FORM 10-Q

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		Page Number
PART I.	FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements	6

	Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	6

	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2023 and 2022	7

	Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended Se ptember 30, 2023 and 2022	8

	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022	10

	Notes to Condensed Consolidated Financial Statements	11

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

PART II.	OTHER INFORMATION

Item 1A.	Risk Factors	29

Item 6.	Exhibits	31

Signatures		32

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Cautionary Note Regarding Forward-Looking Statements and Industry Data

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements other than statements of historical fact contained in this report are statements that could be deemed forward-looking statements, including without limitation any statements with respect to the plans, strategies and objectives of management for future operations; statements concerning product research, development and commercialization plans, timelines and anticipated results; statements of expectation or belief; statements with respect to clinical trials and studies; statements with respect to royalties and milestones; statements with respect to the therapeutic potential of drug candidates; expectations of revenue, expenses, earnings or losses from operations, or other financial results; and statements of assumptions underlying any of the foregoing. Without limiting the foregoing, the words “anticipate(s)”, “believe(s)”, “focus(es)”, “could”, “estimate(s)”, “expect(s)”, “intend(s)”, “may”, “plan(s)”, “seek(s)”, “will”, “strategy”, “mission”, “potential”, “should”, “would” and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements may include, but are not limited to, statements about:

•the initiation, timing, progress and results of future preclinical studies and clinical trials, and our research and development programs, including our lead clinical stage drug candidate emavusertib;

•our estimates of the period in which we anticipate that existing cash and cash equivalents will enable us to fund our current and planned operations;

•our ability to obtain additional financing;

•our ability to establish and maintain collaborations;

•our plans to develop and commercialize our drug candidates;

•the timing or likelihood of regulatory filings and approvals;

•the implementation of our business model and strategic plans for our business, drug candidates and technology;

•our estimates regarding expenses, future revenue and capital requirements;

•developments and projections relating to our competitors and our industry;

•our commercialization, marketing and manufacturing capabilities and strategy;

•the rate and degree of market acceptance and clinical utility of our products;

•our competitive position; and

•our intellectual property position.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. We therefore caution you against relying on any of these forward-looking statements. Important factors that could cause actual results to differ materially from those in these forward-looking statements include the factors discussed below under the heading “Risk Factor Summary” and the risk factors detailed further in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by the risk factors discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and those included under Part II, Item 1A of this Quarterly Report on Form 10-Q.

This report includes statistical and other industry and market data that we obtained from industry publications and research, surveys, and studies conducted by third parties as well as our own estimates. All of the market data used in this report involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. Industry publications and third-party research, surveys, and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our estimates of the potential market opportunities for our drug candidates include several key assumptions based on our industry knowledge, industry publications, third-party research, and other surveys, which may be based on a small sample size and may fail to accurately reflect market opportunities. While we believe that our internal assumptions are reasonable, no independent source has verified such assumptions.

The forward-looking statements included in this report represent our estimates as of the filing date of this report. We specifically disclaim any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing our estimates or views as of any date subsequent to the date of this report.

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Risk Factor Summary

Investment in our securities involves risk. You should carefully consider the following summary of what we believe to be the principal risks facing our business, in addition to the risks described more fully in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by the risk factors discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and those included under Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q and other information included in this report. The risks and uncertainties described below are not the only risks and uncertainties we face. Additional risks and uncertainties not presently known to us or that we presently deem less significant may also impair our business operations.

If any of the following risks occurs, our business, financial condition, and results of operations and future growth prospects could be materially and adversely affected, and the actual outcomes of matters as to which forward-looking statements are made in this report could be materially different from those anticipated in such forward-looking statements.

•We have incurred substantial losses, expect to incur substantial losses for the foreseeable future and may never generate significant revenue or achieve or maintain profitability.

•We will require substantial additional funding, and if we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or commercialization efforts.

•We are dependent on the success of our most advanced drug candidate emavusertib, for which we are conducting the TakeAim Leukemia and TakeAim Lymphoma clinical trials. If we are unable to continue and complete the clinical development, obtain marketing approval and successfully commercialize emavusertib, either alone or with a collaborator, or if we experience significant delays in doing so, our business will be materially harmed.

•If clinical trials of any drug candidates that we, or any collaborators, may develop fail to satisfactorily demonstrate safety and efficacy to the U.S. Food and Drug Administration, or FDA, and other regulators, we, or any collaborators, may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of these drug candidates.

•Adverse events or undesirable side effects caused by, or other unexpected properties of, drug candidates that we develop may be identified during development and could delay or prevent their marketing approval or limit their use.

•We rely in part on third parties to conduct clinical trials of our product candidates and for the research, development and commercialization of certain programs, and those third parties may not perform satisfactorily, including by failing to meet deadlines for the completion of such trials, research or testing.

•We face substantial competition, and our competitors may discover, develop or commercialize drugs before or more successfully than we do.

•If we are unable to obtain and maintain sufficient patent protection for our technologies and drugs, or if our licensors are unable to obtain and maintain sufficient patent protection for the technologies or drugs that we license from them, or if the scope of such patent protection is not sufficiently broad, our competitors could develop and commercialize drugs similar or identical to ours, and our ability to successfully commercialize our drug candidates may be adversely affected.

•If we or our collaborators are not able to obtain, or if there are delays in obtaining, required regulatory approvals, we or they will not be able to commercialize, or will be delayed in commercializing, our drug candidates, and our ability to generate revenue will be materially impaired.

•In the event of a default by us or Curis Royalty under the Oberland Purchase Agreement, as defined below, we could, among other consequences, lose our retained rights to future royalty and royalty related payments on commercial sales of Erivedge, be required to repurchase the Purchased Receivables, as defined below, at a price that is a multiple of the payments we have received, and our ability to enter into future arrangements may be inhibited, all of which could have a material adverse effect on our business, financial condition and stock price. In March 2023, Curis and Curis Royalty received a letter from counsel to Oberland Capital Management, LLC, the Purchasers, as defined below, and the Agent, as defined below, alleging defaults under Sections 4.04 and 6.04(b) of the Oberland Purchase Agreement and demanding cure of the asserted default under Section 6.04(b) of the Oberland Purchase Agreement. The letter further alleges that these alleged defaults are events of default under the Oberland Purchase Agreement and that each alleged default separately entitles the Purchasers to exercise the put option, which would require Curis Royalty to repurchase the Purchased Receivables at a price, referred to as the Put/Call Price, equal to 250% of the sum of the upfront purchase price and any portion of the milestone payments paid in a lump sum by the Purchasers, if any, minus certain

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payments previously received by the Purchasers with respect to the Purchased Receivables. As of September 30, 2023, the estimated amount of the Put/Call Price is up to $63.0 million. Curis and Curis Royalty dispute these allegations. However, if Oberland elects to pursue these claims, and if Curis and Curis Royalty are unsuccessful in defending against these claims, it could have a material adverse impact on Curis and Curis Royalty, including their ability to continue as a going concern.

•If we are not able to attract and retain key management and scientific personnel and advisors, we may not successfully develop our drug candidates or achieve our other business objectives.

•If we cannot access a portion of our existing cash, cash equivalents and investments due to conditions affecting the banking system and financial markets, it could have a material adverse effect on our business and financial condition.

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PART I—FINANCIAL INFORMATION

Item 1. UNAUDITED FINANCIAL STATEMENTS

CURIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	September 30, 2023		December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	24,468	$	19,658

Short-term investments	44,030		65,965
Accounts receivable	2,848		2,975
Prepaid expenses and other current assets	2,080		3,521
Total current assets	73,426		92,119

Property and equipment, net	497		689
Restricted cash, long-term	544		635
Operating lease right-of-use asset	3,402		4,401
Other assets	3,124		2,022
Goodwill	8,982		8,982

Total assets	$	89,975	$	108,848
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,221	$	3,193
Accrued liabilities	7,225		5,679
Current portion of operating lease liability	1,262		1,141

Total current liabilities	13,708		10,013
Long-term operating lease liability	1,831		2,800
Liability related to the sale of future royalties, net	44,845		49,483

Total liabilities	60,384		62,296
Stockholders’ equity:
Preferred stock, $0.01 par value—5,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and December 31, 2022	—		—
Common stock, $0.01 par value—22,781,250 shares authorized; 5,885,313 shares issued and outstanding at September 30, 2023; 11,390,625 shares authorized; 4,830,464 shares issued and outstanding at December 31, 2022	59		48
Additional paid-in capital	1,214,127		1,195,687
Accumulated deficit	(1,184,698)		(1,148,997)
Accumulated other comprehensive income (loss)	103		(186)
Total stockholders’ equity	29,591		46,552
Total liabilities and stockholders’ equity	$	89,975	$	108,848

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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CURIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022




Revenues, net	$	2,833	$	2,825	$	7,327	$	7,275
Costs and expenses:
Cost of royalties	60		62		158		186
Research and development	10,380		10,813		29,532		34,571
General and administrative	4,761		4,556		13,770		15,318
Total operating expenses	15,201		15,431		43,460		50,075
Loss from operations	(12,368)		(12,606)		(36,133)		(42,800)
Other income (expense):

Interest income	806		335		2,273		577
Expense related to the sale of future royalties	(619)		(1,023)		(1,841)		(3,120)


Total other income (expense)	187		(688)		432		(2,543)
Net loss	$	(12,181)	$	(13,294)	$	(35,701)	$	(45,343)
Net loss per common share (basic and diluted)	$	(2.13)	$	(2.83)	$	(6.96)	$	(9.82)
Weighted average common shares (basic and diluted)	5,720,789		4,689,559		5,131,904		4,618,518

Net loss	$	(12,181)	$	(13,294)	$	(35,701)	$	(45,343)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	101		76		289		(370)
Comprehensive loss	$	(12,080)	$	(13,218)	$	(35,412)	$	(45,713)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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CURIS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)

(Unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Stockholders’ Equity
	Shares	Amount
December 31, 2022	4,830,464	$	48	$	1,195,687	$	(1,148,997)	$	(186)	$	46,552
Stock-based compensation	—	—		1,395		—		—		1,395

Issuance of common stock under employee benefit plans	516	1		7		—		—		8
Unrealized gain on marketable securities	—	—		—		—		195		195
Net loss	—	—		—		(11,559)		—		(11,559)
March 31, 2023	4,830,980	$	49	$	1,197,089	$	(1,160,556)	$	9	$	36,591
Stock-based compensation	—	—		1,424		—		—		1,424
Issuance of common stock under employee benefit plans, including restricted stock awards	136,345	1		177		—		—		178

Unrealized loss on marketable securities	—	—		—		—		(7)		(7)
Net loss	—	—		—		(11,961)		—		(11,961)
June 30, 2023	4,967,325	$	50	$	1,198,690	$	(1,172,517)	$	2	$	26,225
Issuance of shares in connection with July Registered Direct, net of fees of $1.3 million for issuance of shares	920,488	9		13,805		—		—		13,814
Stock-based compensation	—	—		1,633		—		—		1,633
Cancellation of restricted stock awards	(2,500)	—		(1)		—		—		(1)
Unrealized gain on marketable securities	—	—		—		—		101		101
Net loss	—	—		—		(12,181)		—		(12,181)
September 30, 2023	5,885,313	$	59	$	1,214,127	$	(1,184,698)	$	103	$	29,591

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	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Stockholders’ Equity
	Shares	Amount
December 31, 2021	4,582,353	$	46	$	1,183,095	$	(1,092,325)	$	(109)	$	90,707
Stock-based compensation	—	—		1,718		—		—		1,718

Unrealized loss on marketable securities	—	—		—		—		(342)		(342)
Net loss	—	—		—		(16,109)		—		(16,109)
March 31, 2022	4,582,353	$	46	$	1,184,813	$	(1,108,434)	$	(451)	$	75,974
Stock-based compensation	—	—		1,966		—				1,966
Issuance of common stock under employee benefit plans	8,465	—		149		—		—		149
Unrealized loss on marketable securities	—	—		—		—		(104)		(104)
Net loss	—	—		—		(15,940)		—		(15,940)
June 30, 2022	4,590,818	$	46	$	1,186,928	$	(1,124,374)	$	(555)	$	62,045
Issuance of shares in connection with 2021 Sales Agreement, net of fees of $0.7 million for issuance of shares	229,185	2		5,592		—		—		5,594
Recognition of stock-based compensation	—	—		1,324		—		—		1,324
Unrealized gain on marketable securities	—	—		—		—		76		76
Net loss	—	—		—		(13,294)		—		(13,294)
September 30, 2022	4,820,003	$	48	$	1,193,844	$	(1,137,668)	$	(479)	$	55,745

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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CURIS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities:
Net loss	$	(35,701)	$	(45,343)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	191		141
Non-cash lease expense	999		840

Stock-based compensation expense	4,452		5,008

Non-cash expense related to the sale of future royalties	(336)		28
Net amortization of premiums and discounts on marketable securities	(1,044)		651




Changes in operating assets and liabilities:
Accounts receivable	127		338
Prepaid expenses and other assets	338		(2,897)

Accounts payable and accrued liabilities	3,574		(187)
Operating lease liability	(848)		(648)
Total adjustments	7,453		3,274
Net cash used in operating activities	(28,248)		(42,069)
Cash flows from investing activities:
Purchase of investments	(64,656)		(49,419)
Sales and maturities of investments	87,925		79,395
Purchases of property and equipment	—		(416)
Net cash provided by investing activities	23,269		29,560
Cash flows from financing activities:

Proceeds from July Registered Direct, net of issuance costs	13,814		—


Proceeds from issuance of common stock associated with 2021 Sales Agreement, net of issuance costs	—		5,663



Proceeds from issuance of common stock under employee benefit plans	185		149
Payment of liability of future royalties, net of imputed interest	(4,301)		(3,557)


Net cash provided by financing activities	9,698		2,255
Net increase (decrease) in cash and cash equivalents and restricted cash	4,719		(10,254)
Cash and cash equivalents and restricted cash, beginning of period	20,293		40,740
Cash and cash equivalents and restricted cash, end of period	$	25,012	$	30,486
Supplemental cash flow data:
Issuance costs in accrued expenses and accounts payable	$	—	$	69

Cash paid for interest	$	2,177	$	3,093
Decrease in right-of-use assets and operating lease liabilities resulting from lease modification	$	—	$	(191)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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CURIS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands, except share and per share data)

1. Nature of Business

Curis, Inc. is a biotechnology company seeking to develop and commercialize innovative drug candidates to treat cancer. Throughout these Condensed Consolidated Financial Statements, Curis, Inc. and its wholly owned subsidiaries are collectively referred to as “the Company,” “Curis,” “we,” “us,” or “our.”

The Company conducts its research and development programs both internally and through strategic collaborations. The Company has prioritized its lead clinical stage drug candidate emavusertib, an orally available small molecule inhibitor of Interleukin-1 receptor associated kinase 4 (“IRAK4”).

The Company is party to a collaboration with Genentech Inc. (“Genentech”), a member of the Roche Group, under which Genentech and F. Hoffmann-La Roche Ltd (“Roche”) are commercializing Erivedge® (vismodegib), a first-in-class orally administered small molecule Hedgehog signaling pathway antagonist. Erivedge is approved for the treatment of advanced basal cell carcinoma (“BCC”).

The Company is party to an exclusive collaboration agreement with Aurigene Discovery Technologies Limited (“Aurigene”) for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and precision oncology.

The Company is subject to risks common to companies in the biotechnology industry as well as risks that are specific to the Company’s business, including, but not limited to: the Company’s ability to obtain adequate financing to fund its operations; the Company’s ability to advance and expand its research and development programs; the Company’s ability to execute on its overall business strategies; the Company’s ability to obtain and maintain necessary intellectual property protection; development by the Company’s competitors of new or better technological innovations; the Company’s ability to comply with regulatory requirements; the Company’s ability to obtain and maintain applicable regulatory approvals and commercialize any approved product candidates; and the ability of the Company and its wholly owned subsidiary, Curis Royalty, LLC (“Curis Royalty”), to satisfy the terms of the royalty interest purchase agreement (the “Oberland Purchase Agreement”) with entities managed by Oberland Capital Management, LLC (the “Purchasers”), and Lind SA LLC (the “Agent”), as collateral agent for the Purchasers.

The Company’s future operating results will largely depend on the progress of drug candidates currently in its development pipeline and the magnitude of payments that it may receive and make under its current and potential future collaborations. The results of the Company’s operations have varied and will likely continue to vary significantly from year to year and quarter to quarter and depend on a number of factors, including, but not limited to the timing, outcome and cost of the Company’s preclinical studies and clinical trials for its drug candidates.

The Company will require substantial funds to maintain research and development programs and support operations. The Company has incurred losses and negative cash flows from operations since its inception. As of September 30, 2023, the Company had an accumulated deficit of $1.2 billion, and for the nine months ended September 30, 2023, the Company incurred a net loss of $35.7 million and used $28.2 million of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company anticipates that its $68.5 million of existing cash, cash equivalents and investments at September 30, 2023 should be sufficient to fund operations for at least 12 months from the date of filing this Quarterly Report on Form 10-Q.

The Company’s ability to raise additional funds will depend, among other factors, on financial, economic and market conditions, many of which are outside of its control and it may be unable to raise financing when needed, or on terms favorable to the Company. If necessary funds are not available, the Company will have to delay, reduce the scope of, or eliminate some of its development of emavusertib, potentially delaying the time to market for or preventing the marketing of any of its product candidates.

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2. Summary of Significant Accounting Policies

(a)Basis of Presentation and Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These statements, however, are condensed and do not include all disclosures required by accounting principles generally accepted in the U.S. (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (“SEC”) on March 13, 2023.

In the opinion of the management of the Company, the unaudited Condensed Consolidated Financial Statements contain all adjustments (all of which were considered normal and recurring) necessary for a fair statement of the Company’s financial position at September 30, 2023; the results of operations for the three and nine-month period ended September 30, 2023 and 2022; stockholders' equity for the three and nine-month period ended September 30, 2023 and 2022; and the cash flows for the nine-month period ended September 30, 2023 and 2022. The Condensed Consolidated Balance Sheet at December 31, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

On September 28, 2023, the Company effected a 1-for-20 reverse stock split of its common stock (“the Reverse Stock Split”). All references to shares of common stock outstanding, average number of shares outstanding and per share amounts in these condensed consolidated financial statements and notes to condensed consolidated financial statements have been restated to reflect the Reverse Stock Split on a retroactive basis.

(b)Use of Estimates and Assumptions

The preparation of the Company’s Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosure of revenue, expenses and certain assets and liabilities at the balance sheet date. Such estimates include the performance obligations under the Company’s collaboration agreements; the collectability of receivables; the carrying value of goodwill; and the value of certain investments and liabilities. Actual results may differ from such estimates. These interim results are not necessarily indicative of results to be expected for a full year or subsequent interim periods.

Cash equivalents consist of highly liquid investments purchased with original maturities of three months or less. All other investments are marketable securities.

The Company classified $0.5 million and $0.6 million of its cash as restricted cash as of September 30, 2023 and December 31, 2022, respectively. These amounts represent the security deposit associated with the Company’s Lexington, Massachusetts headquarters.

The Company’s short-term investments are marketable debt securities with original maturities of greater than three months from the date of purchase, but less than twelve months from the balance sheet date. Marketable securities consist of commercial paper, corporate bonds and notes, and/or government obligations. All of the Company’s investments have been designated available-for-sale and are stated at fair value. Unrealized gains and losses on investments are included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses, dividends and interest income are included in other income (expense) in the period during which the securities are sold. Any premium or discount arising at purchase is amortized and/or accreted to interest income.

(d)Leases

The Company determines if an arrangement is a lease at contract inception. The Company made an accounting policy election to not recognize leases with an initial term of 12 months or less within its Consolidated Balance Sheets and to recognize those lease payments on a straight-line basis in its Consolidated Statements of Operations and Comprehensive Loss over the lease term. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

As the Company’s lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate, which is based on rates that would be incurred to borrow on a collateralized basis over a term equal to the lease payments in a similar economic environment, in determining the present value of lease payments.

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The Company’s operating lease is reflected in operating lease right-of-use asset and operating lease liability in the Condensed Consolidated Balance Sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

(e)Other Assets

Other assets consist of long-term prepayments and deposits.

(f)Revenue Recognition

The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Codification Topic 606, Revenue from Contracts with Customers. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred and title has passed, the price is fixed or determinable, and collectability is reasonably assured.

The Company recognizes royalty revenues related to Genentech’s and Roche’s sales of Erivedge. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and where the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company expects to continue recognizing royalty revenue from Genentech’s sales of Erivedge in the U.S. and in other markets where Genentech and Roche successfully obtain marketing approval, if any (see Note 8, Research and Development Collaborations). However, a substantial portion of potential Erivedge royalties will be paid to the Purchasers pursuant to the Oberland Purchase Agreement (see Note 7, Liability Related to the Sale of Future Royalties).

(g)Segment Reporting

The Company has determined that it operates in a single reportable segment, which is the research and development of innovative drug candidates for the treatment of human cancer.

(h)New Accounting Pronouncements

The Company assesses the applicability and impact of any recent Accounting Standards Updates (“ASUs”) issued by the FASB. Based on this assessment, recently issued ASUs were either not applicable or expected to have an immaterial impact on the Company’s Condensed Consolidated Financial Statements.

3. Fair Value of Financial Instruments

The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”), for its financial assets and liabilities that are re-measured and reported at fair value each reporting period and the non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Financial assets and liabilities are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:


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

Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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In accordance with the fair value hierarchy, the following table shows the fair value as of September 30, 2023 and December 31, 2022 of those financial assets and liabilities that are measured at fair value on a recurring basis, according to the valuation techniques the Company used to determine their fair value.


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of September 30, 2023:
Cash equivalents:
Money market funds	$	18,927	$	—	$	—	$	18,927
U.S. treasury securities and government agency obligations	—		1,471		—		1,471
Short-term investments:
Corporate debt securities and commercial paper	—		13,805		—		13,805
U.S. treasury securities and government agency obligations	—		30,225		—		30,225


Total	$	18,927	$	45,501	$	—	$	64,428


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of December 31, 2022:
Cash equivalents:
Money market funds	$	15,215	$	—	$	—	$	15,215
U.S. treasury securities and government agency obligations	—		2,998		—		2,998
Short-term investments:
Corporate debt securities and commercial paper	—		42,071		—		42,071
U.S. treasury securities and government agency obligations	—		23,894		—		23,894



Total	$	15,215	$	68,963	$	—	$	84,178

4. Investments

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of September 30, 2023 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	13,807	$	—	$	(2)	$	13,805
U.S. treasury securities and government agency obligations	30,142		84		(1)		30,225

Total investments	$	43,949	$	84	$	(3)	$	44,030

Short-term investments have maturities ranging from one to twelve months with a weighted-average maturity of 0.3 years at September 30, 2023.

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of December 31, 2022 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	42,109	$	2	$	(40)	$	42,071
U.S. treasury securities and government agency obligations	24,042		—		(148)		23,894



Total investments	$	66,151	$	2	$	(188)	$	65,965

The weighted average maturity of short-term investments was 0.3 years at December 31, 2022.

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No credit losses on available-for-sale securities were recognized during the three and nine months ended September 30, 2023 or 2022. In its evaluation to determine expected credit losses, management considered all available historical and current information, expectations of future economic conditions, the type of security, the credit rating of the security, and the size of the loss position, as well as other relevant information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before their effective maturity or market price recovery.

As of September 30, 2023, the Company held no investments that have been in a continuous unrealized loss position for 12 months or longer. The aggregate fair value of available-for-sale investments in a continuous unrealized loss position for 12 months or longer was $27.4 million as of December 31, 2022.

5. Accrued Liabilities

Accrued liabilities consisted of the following:


(in thousands)	September 30, 2023		December 31, 2022
Headcount related costs	$	3,157	$	3,152
Research and development costs	3,329		1,727
Professional and legal fees	685		762


Other	54		38
Total	$	7,225	$	5,679

6. Lease

The Company has a single lease for real estate, including laboratory and office space, and certain equipment, in Lexington, Massachusetts which commenced on May 1, 2020. A portion of the Company’s leased space is subject to an early termination option that becomes effective on the lease commencement date of a new lease for larger premises within the landlord’s commercial real estate portfolio (“New Lease”), and the Company may exercise its early termination option by providing the landlord with written notice of such election to terminate the lease agreement concurrently with the execution of the New Lease. The landlord has the option to early terminate the lease agreement by providing written notice to the Company by June 30, 2024. The Company expects the lease to end on December 31, 2025.

As of September 30, 2023, the Company had an operating lease liability of $3.1 million and related right-of-use asset of $3.4 million related to its operating lease. As of December 31, 2022, the Company had an operating lease liability of $3.9 million and related right-of-use asset of $4.4 million related to its operating lease.

The Company recorded lease cost of $0.4 million for the three months ended September 30, 2023 and 2022. The Company recorded lease cost of $1.2 million for the nine months ended September 30, 2023 and 2022.

The Company paid $0.4 million and $1.1 million during the three and nine months ended September 30, 2023, respectively. The Company paid $0.4 million and $1.0 million during the three and nine months ended September 30, 2022, respectively. The discount rate associated with the Company’s right-of-use asset is 10%.

7. Liability Related to the Sale of Future Royalties

In March 2019, the Company and Curis Royalty entered into the royalty interest purchase agreement (“Oberland Purchase Agreement”) with TPC Investments I LP and TPC Investments II LP (the “Purchasers”), each of which is a Delaware limited partnership managed by Oberland Capital Management, LLC, and Lind SA LLC (the “Agent”), a Delaware limited liability company managed by Oberland Capital Management, LLC, as collateral agent for the Purchasers. The Company sold to the Purchasers a portion of its rights to receive royalties from Genentech on potential net sales of Erivedge.

The Oberland Purchase Agreement provides that after the occurrence of an event of default as defined under the security agreement by Curis Royalty, the Purchasers shall have the option, for a period of 180 days, to require Curis Royalty to repurchase a portion of certain royalty and royalty related payments, excluding a portion of non U.S. royalties retained by Curis Royalty (referred to as the “Purchased Receivables”), at a price (referred to as the “Put/Call Price”), equal to 250% of the sum of the upfront purchase price and any portion of the milestone payments paid in a lump sum by the Purchasers, if any, minus certain payments previously received by the Purchasers with respect to the Purchased Receivables. The Company concluded the

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put option is an embedded derivative that requires bifurcation from the deferred royalty obligation and evaluates the fair value of the put option each reporting period. The estimated fair value of the put option is immaterial as of September 30, 2023 and December 31, 2022, respectively. Additionally, Curis Royalty shall have the option at any time to repurchase the Purchased Receivables at the Put/Call Price as of the date of such repurchase. No events of default occurred as of September 30, 2023.

As a result of the obligation to pay future royalties to the Purchasers, the Company recorded the proceeds as a liability on its Condensed Consolidated Balance Sheets. It accounts for the liability and interest expense using the interest method over the expected life of the Oberland Purchase Agreement. As a result, the Company imputes interest on the transaction and records imputed interest expense at the estimated interest rate, which the Company has included within Expense related to the sale of future royalties in the accompanying statement of operations and comprehensive loss. The Company’s estimate of the interest rate under the Oberland Purchase Agreement is based on the amount of royalty payments expected to be received by the Purchasers over the life of the Oberland Purchase Agreement. The projected amount of royalty payments expected to be paid to the Purchasers involves the use of significant estimates and assumptions with respect to the revenue growth rate in the Company’s projections of sales of Erivedge. The Company periodically assesses the expected royalty payments to Curis Royalty from Genentech using a combination of historical results and forecasts from market data sources. To the extent such payments are greater or less than its initial estimates or the timing of such payments is materially different than its original estimates, the Company will prospectively adjust the amortization of the liability.

The Company determined the fair value of the liability related to the sale of future royalties at the time of the Oberland Purchase Agreement to be $65.0 million, with a current effective annual imputed interest rate of 6.1%. The Company incurred $0.6 million of transaction costs in connection with the Oberland Purchase Agreement. These transaction costs will be amortized to imputed interest expense over the estimated term of the Oberland Purchase Agreement. The carrying value of the liability related to the sale of future royalties approximates fair value as of September 30, 2023 and is based on the Company’s current estimates of future royalties expected to be paid the Purchasers over the life of the arrangement, which are considered Level 3 inputs.

The following table shows the activity with respect to the liability related to the sale of future royalties during the nine months ended September 30, 2023.


(in thousands)
Carrying value of liability related to the sale of future royalties at January 1, 2023	$	49,483
Other	(127)
Imputed interest expense	1,968
Less: payments to the Purchasers	(6,479)
Carrying value of liability related to the sale of future royalties at September 30, 2023	$	44,845

In March 2023, Curis and Curis Royalty received a letter from counsel to Oberland Capital Management, LLC, the Purchasers and the Agent alleging defaults under Sections 4.04 and 6.04(b) of the Oberland Purchase Agreement and demanding cure of the asserted default under Section 6.04(b) of the Oberland Purchase Agreement. The asserted basis for the alleged defaults is that Curis and Curis Royalty were required to disclose, and failed to disclose, certain information prior to execution of the Oberland Purchase Agreement and that Curis and Curis Royalty have since failed to disclose certain information that has been requested by the Purchasers pursuant to Section 6.04(b) of the Oberland Purchase Agreement. The letter further alleges that these alleged defaults are events of default under the Oberland Purchase Agreement and that each alleged default separately entitles the Purchasers to exercise the put option described above, which would require Curis Royalty to repurchase the Purchased Receivables at the Put/Call Price. The Purchasers have not attempted to exercise that put option but have purported to reserve their alleged right to exercise it without further notice. As of September 30, 2023, the estimated amount of the Put/Call Price is up to $63.0 million. The Purchasers have also reserved other asserted rights in respect of the alleged defaults, including the asserted right to seek judicial remedies, including for damages and rescission, and to assert alleged claims against Curis and Curis Royalty for indemnification on the basis of material breach and fraud in the inducement. Curis and Curis Royalty dispute these allegations.

However, if Oberland elects to pursue these claims, and if Curis and Curis Royalty are unsuccessful in defending against these claims, it could have a material adverse impact on Curis and Curis Royalty, including their ability to continue as a going concern.

8. Research and Development Collaborations

(a)Genentech

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In June 2003, the Company licensed its proprietary Hedgehog pathway antagonist technologies to Genentech for human therapeutic use. The primary focus of the collaborative research plan has been to develop molecules that inhibit the Hedgehog pathway for the treatment of various cancers. The collaboration is currently focused on the development of Erivedge, which is being commercialized by Genentech in the U.S. and by Genentech’s parent company, Roche, outside of the U.S. for the treatment of advanced BCC.

In addition to these payments and pursuant to the collaboration agreement, the Company is entitled to a royalty on net sales of Erivedge that ranges from 5% to 7.5%. The royalty rate applicable to Erivedge may be decreased by 2% on a country-by-country basis in certain specified circumstances.

The Company recognized $2.7 million and $2.8 million in royalty revenue under the Genentech collaboration during the three months ended September 30, 2023 and 2022, respectively. The Company recognized $7.2 million and $7.4 million in royalty revenue under the Genentech collaboration during the nine months ended September 30, 2023 and 2022, respectively.

Cost of royalties comprises payments to university licensors and was immaterial for the three and nine months ended September 30, 2023 and 2022.

The Company has accounts receivables from Genentech under this collaboration of $2.8 million and $3.0 million as of September 30, 2023 and December 31, 2022, respectively, in its Condensed Consolidated Balance Sheets.

As previously discussed in Note 7, Liability Related to the Sale of Future Royalties, a significant portion of royalty revenues received from Genentech on net sales of Erivedge will be paid to the Purchasers pursuant to the Oberland Purchase Agreement.

(b)Aurigene

The Company is party to an exclusive collaboration agreement with Aurigene for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and selected precision oncology targets. Under the collaboration agreement, Aurigene granted the Company an option to obtain exclusive, royalty-bearing licenses to relevant Aurigene technology to develop, manufacture and commercialize products containing certain of such compounds anywhere in the world, except for India and Russia, which are territories retained by Aurigene. Additionally, Aurigene retains the rights to develop and commercialize CA-170 in Asia, and the Company is entitled to receive royalty payments on potential future sales of CA-170 in Asia at percentage rates ranging from the high single digits up to 10% subject to specified reductions.

As of September 30, 2023, the Company has exercised its option to license the following four programs under the collaboration:

1.IRAK4 Program - a precision oncology program of small molecule inhibitors of IRAK4. The development candidate is emavusertib (CA-4948).

2.PD1/VISTA Program - an immuno-oncology program of small molecule antagonists of PD1 and VISTA immune checkpoint pathways. The development candidate is CA-170.

3.PD1/TIM3 Program - an immuno-oncology program of small molecule antagonists of PD1 and TIM3 immune checkpoint pathways. The development candidate is CA-327.

4.The Company exercised its option to license a fourth program, which is an immuno-oncology program.

For each of the licensed programs (as described above) the Company is obligated to use commercially reasonable efforts to develop, obtain regulatory approval for, and commercialize at least one product in each of the U.S., specified countries in the European Union and Japan, and Aurigene is obligated to use commercially reasonable efforts to perform its obligations under the development plan for such licensed program in an expeditious manner.

For each of the IRAK4, PD1/VISTA, PD1/TIM3 programs, and the fourth immuno-oncology program, the Company has remaining unpaid or unwaived payment obligations of $42.5 million per program, related to regulatory approval and commercial sales milestones, plus specified additional payments for approvals for additional indications, if any. No obligations have been met or are probable and as such no amounts are accrued as of September 30, 2023.

(c)ImmuNext

The Company is party to an option and license agreement with ImmuNext (the “ImmuNext Agreement”). Under the terms of the ImmuNext Agreement, the Company agreed to engage in a collaborative effort with ImmuNext, and to conduct a Phase 1 clinical trial of CI-8993. In exchange, ImmuNext granted the Company an exclusive option, exercisable until the earlier of (a) January 2024 or (b) 90 days after database lock for the first Phase 1 trial in which the endpoints are satisfied, to obtain an exclusive, worldwide license to develop and commercialize certain VISTA antagonizing compounds and products containing these compounds in the field of oncology. The Company is not planning to exercise its option and expects the rights to the VISTA antagonizing compounds to revert to ImmuNext in January 2024.

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9. Common Stock

All common share amounts and per share amounts have been adjusted to reflect the Reverse Stock Split.

Charter Amendments

In September 2023, the Company's stockholders approved an increase to the number of authorized shares of its common stock from 11,390,625 shares to 22,781,250 shares.

2021 Sales Agreement with Cantor Fitzgerald & Co. and JonesTrading Institutional Services LLC

The Company is party to a sales agreement (the “2021 Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) and JonesTrading Institutional Services LLC (“JonesTrading”) to sell from time to time up to $100.0 million of the Company’s common stock through an “at the market offering” program under which Cantor and JonesTrading act as sales agents. Subject to the terms and conditions of the 2021 Sales Agreement, Cantor and JonesTrading can sell the common stock by any method deemed to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended.

Pursuant to the terms of the 2021 Sales Agreement, the aggregate compensation payable to each of Cantor and JonesTrading is 3% of the gross proceeds from sales of the common stock sold by Cantor or JonesTrading, as applicable. The Company did not sell any shares of common stock under the 2021 Sales Agreement during the three and nine months ended September 30, 2023. As of September 30, 2023, $93.7 million remained available for sale under the 2021 Sales Agreement.

Registered Direct Offering

In July 2023, the Company sold and issued, in a registered direct offering (the “July Registered Direct”) to certain institutional investors, an aggregate of 920,488 shares of common stock at a purchase price per share of $16.40 per share for net proceeds of approximately $13.8 million.

10. Stock Plans and Stock-Based Compensation

As of September 30, 2023, the Company had two stockholder-approved, stock-based compensation plans: (i) the Fourth Amended and Restated 2010 Stock Incentive Plan (“2010 Plan”) and (ii) the Amended and Restated 2010 Employee Stock Purchase Plan (“ESPP”). New employees are typically issued options as an inducement equity award under Nasdaq Listing Rule 5635(c)(4) outside of the 2010 Plan (“Inducement Awards”). The number of shares of common stock available for issuance under the plans and the number of shares of common stock issuable upon the exercise of then outstanding options have been adjusted to reflect the Reverse Stock Split.

The Fourth Amended and Restated 2010 Stock Incentive Plan

The 2010 Plan permits the granting of incentive and non-qualified stock options and stock awards to employees, officers, directors, and consultants of the Company and its subsidiaries at prices determined by the Company’s board of directors. The Company can issue up to 1,159,500 shares of its common stock pursuant to awards granted under the 2010 Plan. Options vest and become exercisable based on a schedule determined by the board of directors and expire up to ten years from the date of grant. The 2010 Plan uses a “fungible share” concept under which each share of stock subject to awards granted as options and stock appreciation rights (“SARs”), will cause one share per share under the award to be removed from the available share pool, while each share of stock subject to awards granted as restricted stock, restricted stock units, other stock-based awards or performance awards where the price charged for the award is less than 100% of the fair market value of the Company’s common stock will cause 1.3 shares per share under the award to be removed from the available share pool. As of September 30, 2023, 274,661 shares remained available for grant under the 2010 Plan.

During the nine months ended September 30, 2023, the Company’s board of directors granted options to purchase 220,180 shares of the Company’s common stock to the officers and employees of the Company under the 2010 Plan. These options vest and become exercisable as to 25% of the shares underlying the award after the first year and as to an additional 6.25% of the shares underlying the award in each subsequent quarter, based upon continued employment over a four year period, and are exercisable at a price equal to the closing market price of the Company’s common stock on the grant date.

During the nine months ended September 30, 2023, the Company’s board of directors granted options to its non-employee directors to purchase 21,250 shares of common stock under the 2010 Plan, which will vest and become exercisable in one year from the date of grant. These options were granted at an exercise price that equaled the closing market price of the Company’s common stock on the grant date.

Inducement Awards

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For certain new employees, the Company issues Inducement Awards. These options generally vest as to 25% of the shares underlying the option on the first anniversary of the grant date, and as to an additional 6.25% of the shares underlying the option on each successive quarter thereafter. During the nine months ended September 30, 2023, the Company’s board of directors granted Inducement Awards to purchase 31,772 shares of common stock. These options are granted at an exercise price that equals the closing market price of the Company’s common stock on the grant date.

Stock Options

A summary of stock option activity under the 2010 Plan and Inducement Awards are summarized as follows:


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, December 31, 2022	683,666	$	64.72	6.51
Granted	273,202	14.27
Exercised	(515)	13.40
Canceled/Forfeited	(115,987)	66.10
Outstanding, September 30, 2023	840,366	$	48.16	7.34	$	—
Exercisable at September 30, 2023	434,527	$	62.90	5.94	$	—
Vested and unvested expected to vest at September 30, 2023	840,366	$	48.16	7.34	$	—

The weighted average grant date fair values of the stock options granted during the nine months ended September 30, 2023 and 2022 were $12.00 and $43.60, respectively, and were calculated using the following estimated assumptions under the Black-Scholes option pricing model:


	Nine Months Ended September 30,
	2023	2022
Expected term (years)	5.5	5.5


Risk free interest rate	3.5% - 3.6%	1.4% - 2.9%
Expected volatility	115% - 116%	110% - 114%
Expected dividends	None	None

As of September 30, 2023, there was approximately $9.4 million of unrecognized compensation cost related to unvested employee stock option awards outstanding, which is expected to be recognized as expense over a weighted average period of 2.65 years. The intrinsic value of employee stock options exercised during the nine months ended September 30, 2023 was immaterial. There were no employee stock options exercised during the nine months ended September 30, 2022.

Restricted Stock Awards

During the nine months ended September 30, 2023, the Company’s board of directors granted restricted stock awards ("RSAs"), for an aggregate amount of 117,000 shares to the employees of the Company, excluding officers, under the 2010 Plan. These RSAs vest as to 50% of the shares underlying the award on the first anniversary of the date of the grant and 50% after the second anniversary, based upon continued employment.

The following table presents a summary of unvested RSAs under the 2010 Plan as of September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, December 31, 2022	—	$	—
Awarded	117,000	18.2
Vested	—	—
Forfeited	(2,500)	—
Unvested, September 30, 2023	114,500	$	18.2

As of September 30, 2023, there were 114,500 shares outstanding covered by RSAs that are expected to vest. The weighted average grant date fair value of these shares of restricted stock was $18.20 per share and the aggregate fair value of these shares of restricted stock was $2.1 million. As of September 30, 2023, there was $1.7 million of unrecognized

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compensation costs related to RSAs, which are expected to be recognized as expense over a remaining weighted average period of 1.61 years.

Amended and Restated 2010 Employee Stock Purchase Plan

The Company has reserved 100,000 shares of common stock for issuance under the ESPP. Eligible employees may purchase shares of the Company’s common stock at 85% of the lower closing market price of the common stock at the beginning of the enrollment period or ending date of the purchase period within a two-year enrollment period, as defined. The Company has four six-month purchase periods per each two-year enrollment period. If, within any one of the four purchase periods in an enrollment period, the purchase period ending stock price is lower than the stock price at the beginning of the enrollment period, the two-year enrollment resets at the new lower stock price. During the three months ended September 30, 2023, no shares were issued under the ESPP and during the nine months ended September 30, 2023, 19,345 shares were issued under the ESPP. As of September 30, 2023, there were 39,403 shares available for future purchase under the ESPP.

Stock-Based Compensation Expense

For the three and nine months ended September 30, 2023 and 2022, the Company recorded stock-based compensation expense to the following line items in its costs and expenses section of the Condensed Consolidated Statements of Operations and Comprehensive Loss:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Research and development expenses	$	776	$	505	$	2,059	$	2,084
General and administrative expenses	857		819		2,393		2,924
Total stock-based compensation expense	$	1,633	$	1,324	$	4,452	$	5,008

11. Loss Per Common Share

Basic and diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. All common share amounts and per share amounts have been adjusted to reflect the Reverse Stock Split. Diluted net loss per common share is the same as basic net loss per common share for the three and nine months ended September 30, 2023 and 2022, because the effect of the potential common stock equivalents would be antidilutive due to the Company’s net loss position for these periods. Antidilutive securities consist of stock options outstanding of 840,366 and 784,323 as of September 30, 2023 and 2022, respectively and unvested restricted stock awards of 114,500 as of September 30, 2023.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with the Condensed Consolidated Financial Statements and the related notes appearing elsewhere in this report. Some of the information contained in this discussion and analysis and set forth elsewhere in this report, including information with respect to our plans and strategy for our business, includes forward-looking statements, based on current expectations and related to future events and our future financial and operational performance, that involve risks and uncertainties. You should review the discussion above under the heading “Risk Factor Summary” and the risk factors detailed further in Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022, as supplemented by the risk factors discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and those included under Part II, Item 1A of this Quarterly Report on Form 10-Q for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. As used throughout this report, the terms “the Company,” “we,” “us,” and “our” refer to the business of Curis, Inc. and its wholly owned subsidiaries, except where the context otherwise requires, and the term “Curis” refers to Curis, Inc. Unless otherwise indicated, in this Quarterly Report on Form 10-Q, all common share amounts and per share amounts have been adjusted to reflect a 1-for-20 reverse stock split of Curis' common stock, or the Reverse Stock Split.

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Overview

We are seeking to develop and commercialize innovative drug candidates to treat cancer. We pursue our product development initiatives and conduct our research and development programs both internally and through strategic collaborations. Our product development initiatives and research and development programs are discussed in more detail below.

Our lead clinical stage drug candidate is emavusertib, an orally available small molecule inhibitor of Interleukin-1 receptor-associated kinase 4, or IRAK4. Emavusertib is currently undergoing testing in a Phase 1/2 open-label, single arm dose escalating and expansion trial in patients with relapsed or refractory, or R/R, acute myeloid leukemia, or AML, and high-risk myelodysplastic syndromes, or hrMDS, also known as the TakeAim Leukemia Phase 1/2 trial. In April 2021, emavusertib was granted Orphan Drug Designation for the treatment of R/R AML and hrMDS by the U.S. Food and Drug Administration, or FDA.

We are also conducting a separate Phase 1/2 open-label dose escalating clinical trial in patients with relapsed or refractory hematologic malignancies, such as non-Hodgkin lymphomas, or NHL, including those with Myeloid Differentiation Primary Response Protein 88, or MYD88, alterations, also known as the TakeAim Lymphoma Phase 1/2 trial.

The FDA placed partial clinical holds on our TakeAim Leukemia Phase 1/2 trial and our TakeAim Lymphoma Phase 1/2 trial after we reported a serious adverse event in the TakeAim Leukemia Phase 1/2 trial. In August 2022, the FDA lifted the partial clinical hold on the TakeAim Lymphoma Phase 1/2 trial. In July 2023, we announced that the FDA lifted the partial clinical hold on the TakeAim Leukemia Phase 1/2 trial.

In June 2022, we provided initial preliminary clinical data for patients in the combination portion of the TakeAim Lymphoma Phase 1/2 trial, and we presented initial clinical data for patients from the TakeAim Leukemia Phase 1/2 trial in January and December 2022 and July 2023.

Our pipeline also includes several compounds, including CI-8993, fimepinostat, CA-170, and CA-327, which we deprioritized to enable us to focus our available resources on the continued development of emavusertib.

We are party to a collaboration agreement with Genentech Inc., or Genentech, a member of the Roche Group, under which Genentech and F. Hoffmann-La Roche Ltd, or Roche, are commercializing Erivedge® (vismodegib), a first-in-class orally administered small molecule Hedgehog signaling pathway antagonist. Erivedge is approved for the treatment of advanced basal cell carcinoma.

We are party to an exclusive collaboration agreement with Aurigene Discovery Technologies Limited, or Aurigene, for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and precision oncology. As of September 30, 2023, we have licensed four programs under the Aurigene collaboration, including emavusertib.

In addition, we are party to an option and license agreement with ImmuNext. Pursuant to the terms of the option and license agreement, we have an option, exercisable for a specified period as set forth in the option and license agreement, to obtain an exclusive license to develop and commercialize certain VISTA antagonizing compounds, including ImmuNext's lead compound, CI-8993, and products containing these compounds in the field of oncology. We do not expect to exercise the option to the VISTA antagonizing compounds, including CI-8993 and expect the rights to revert to ImmuNext in January 2024.

Liquidity

Since our inception, we have funded our operations primarily through private and public placements of our equity securities, license fees, contingent cash payments, research and development funding from our corporate collaborators, and the monetization of certain royalty rights. We have never been profitable on an annual basis and had an accumulated deficit of $1.2 billion as of September 30, 2023. For the nine months ended September 30, 2023, we incurred a net loss of $35.7 million and used $28.2 million of cash in operations.

We expect to continue to generate operating losses in the foreseeable future. Based on our current operating plan, we believe that our $68.5 million of cash, cash equivalents and investments as of September 30, 2023 should be sufficient to fund our operations into 2025. We have based this assessment on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect.

We will need to generate significant revenues to achieve profitability, and do not expect to achieve profitability in the foreseeable future, if at all. If sufficient funds are not available, we will have to delay, reduce the scope of, or eliminate some of our research and development programs, including related clinical trials and operating expenses, potentially delaying the time to market for or preventing the marketing of any of our product candidates, which could adversely affect our business prospects and our ability to continue our operations, and would have a negative impact on our financial condition and ability to pursue our business strategies. In addition, we may seek to engage in one or more strategic alternatives, such as a strategic partnership with one or more parties, the licensing, sale or divestiture of some of our assets or proprietary technologies or the sale of our

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company, but there can be no assurance that we would be able to enter into such a transaction or transactions on a timely basis or on terms favorable to us, or at all.

Key Drivers

We believe that near term key drivers to our success will include:

•our ability to focus and successfully plan and execute current and planned clinical trials for emavusertib, and for such clinical trials to generate favorable data; and

•our ability to raise additional financing, when required, to fund operations.

In the longer term, a key driver to our success will be our ability, or that of a current or future collaborator, to successfully develop and commercialize drug candidates.

Our Collaborations and License Agreements

For information regarding our collaboration and license agreements, refer to Note 8, Research and Development Collaborations, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q and Note 11, Research and Development Collaborations, in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission, or SEC, on March 13, 2023.

Financial Operations Overview

General. Our future operating results will largely depend on the progress of emavusertib. The results of our operations will vary significantly from year to year and quarter to quarter and depend on, among other factors, the cost and outcome of any preclinical development or clinical trials then being conducted. For a discussion of our liquidity and funding requirements, see “Liquidity” and “Liquidity and Capital Resources - Funding Requirements”.

Liability Related to the Sale of Future Royalties. In March 2019, we and our wholly owned subsidiary, Curis Royalty LLC, or Curis Royalty, entered into the royalty interest purchase agreement, or Oberland Purchase Agreement, with entities managed by Oberland Capital Management, LLC, or the Purchasers. Upon closing of the Oberland Purchase Agreement, Curis Royalty received an upfront purchase price of $65.0 million, less certain transaction costs, from the Purchasers. Curis Royalty will also be entitled to receive milestone payments of $53.5 million if the Purchasers receive payments pursuant to the Oberland Purchase Agreement in excess of $117.0 million on or prior to December 31, 2026, which milestone payments may each be paid, at the option of the Purchasers, in a lump sum in cash or out of the Purchaser’s portion of future payments under the Oberland Purchase Agreement.

In March 2023, Curis and Curis Royalty received a letter from counsel to Oberland Capital Management, LLC, the Purchasers and Lind SA LLC, a Delaware limited liability company managed by Oberland Capital Management, LLC, as collateral agent for the Purchasers, or the Agent, alleging defaults under Sections 4.04 and 6.04(b) of the Oberland Purchase Agreement and demanding cure of the asserted default under Section 6.04(b) of the Oberland Purchase Agreement. The asserted basis for the alleged defaults is that Curis and Curis Royalty were required to disclose, and failed to disclose, certain information prior to execution of the Oberland Purchase Agreement and that Curis and Curis Royalty have since failed to disclose certain information that has been requested by the Purchasers pursuant to Section 6.04(b) of the Oberland Purchase Agreement. The letter further alleges that these alleged defaults are events of default under the Oberland Purchase Agreement and that each alleged default separately entitles the Purchasers to exercise the put option, which would require Curis Royalty to repurchase a portion of certain royalty and royalty related payments, excluding a portion of non U.S. royalties retained by Curis Royalty, referred to as the Purchased Receivables, at a price, referred to as the Put/Call Price, equal to 250% of the sum of the upfront purchase price and any portion of the milestone payments paid in a lump sum by the Purchasers, if any, minus certain payments previously received by the Purchasers with respect to the Purchased Receivables. The Purchasers have not attempted to exercise that put option but have purported to reserve their alleged right to exercise it without further notice. As of September 30, 2023, the estimated amount of the Put/Call Price is up to $63.0 million. The Purchasers have also reserved other asserted rights in respect of the alleged defaults, including the asserted right to seek judicial remedies, including for damages and rescission, and to assert alleged claims against Curis and Curis Royalty for indemnification on the basis of material breach and fraud in the inducement. Curis and Curis Royalty dispute these allegations. However, if Oberland elects to pursue these claims, and if Curis and Curis Royalty are unsuccessful in defending against these claims, it could have a material adverse impact on Curis and Curis Royalty, including their ability to continue as a going concern.

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For a discussion of the Oberland Purchase Agreement, see “Liquidity and Capital Resources – Royalty Interest Purchase Agreement”. A further discussion of risks related to the letter from counsel to Oberland Capital Management, LLC, the Purchasers and the Agent, is set forth under Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022.

Revenue. We do not expect to generate any revenues from our direct sale of products for several years, if ever. Substantially all of our revenues to date have been derived from license fees, research and development payments, and other amounts that we have received from our strategic collaborators and licensees, including royalty payments. We recognize royalty revenues related to Genentech’s sales of Erivedge and we expect to continue to recognize royalty revenue in future quarters from Genentech’s sales of Erivedge in the U.S. and Roche’s sales of Erivedge outside of the U.S. However, a significant portion of our royalty and royalty-related revenues under our collaboration with Genentech will be paid to the Purchasers, pursuant to the Oberland Purchase Agreement. The Oberland Purchase Agreement will terminate upon the earlier to occur of (i) the date on which Curis Royalty’s rights to receive the Purchased Receivables owed by Genentech under the Genentech collaboration agreement have terminated in their entirety or (ii) the date on which payment in full of the Put/Call Price is received by the Purchasers pursuant to the Purchasers’ exercise of their put option or Curis Royalty’s exercise of its call right. For additional information regarding the provisions of the Oberland Purchase Agreement, see Note 7, Liability Related to the Sale of Future Royalties, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q.

We could receive additional milestone payments from Genentech, provided that contractually specified development and regulatory objectives or specified royalty payment amounts are met within applicable time periods. Our only source of revenues and/or cash flows from operations for the foreseeable future will be royalty payments that are contingent upon the continued commercialization of Erivedge under our collaboration with Genentech, and contingent cash payments for the achievement of clinical, development and regulatory objectives, if any, that are met. Our receipt of additional payments under our collaboration with Genentech cannot be assured, nor can we predict the timing of any such payments, as the case may be.

Research and Development. Research and development expense consists of costs incurred to develop our drug candidates. These expenses consist primarily of:

•salaries and related expenses for personnel, including stock-based compensation expense;

•costs of conducting clinical trials, including amounts paid to clinical centers, clinical research organizations and consultants, among others;

• other outside service costs including costs of contract manufacturing;

•sublicense payments;

•the costs of supplies and reagents;

•occupancy and depreciation charges; and

•certain payments that we make to Aurigene and ImmuNext under our collaboration agreements, including, for example, milestone payments.

We anticipate that in the near term, our research and development expense will be primarily related to our continued development of emavusertib.

We expense research and development costs as incurred.

Research and development activities are central to our business model. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages, primarily due to the increased size and duration of later-stage clinical trials. As a result, we expect that our research and development expenses will increase substantially over the next several years as we conduct our clinical trials for emavusertib; prepare regulatory filings for emavusertib and any other product candidates we may pursue; potentially develop additional product candidates; and potentially advance our product candidates into later stages of clinical development.

The successful development and commercialization of our product candidates is highly uncertain. At this time, we cannot reasonably estimate or know the nature, timing and costs of the efforts that will be necessary to complete the preclinical and clinical development of emavusertib and any other product candidates we may pursue. This uncertainty is due to the numerous risks and uncertainties associated with product development and commercialization, including the uncertainty of:

•our ability to successfully enroll our current and future clinical trials and our ability to initiate future clinical trials;

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•the scope, quality of data, rate of progress and cost of clinical trials and other research and development activities undertaken by us or our collaborators;

•the cost and timing of regulatory approvals and maintaining compliance with regulatory requirements;

•the results of future preclinical studies and clinical trials;

•the cost of establishing clinical and commercial supplies of our drug candidates and any products that we may develop;

•the cost and timing of establishing sales, marketing and distribution capabilities;

•our ability to become and remain profitable, which requires that we, either alone or with collaborators, must develop and eventually commercialize one or more drug candidates with significant market potential and successfully launch a product for commercial sale;

•the effect of competing technological and market developments; and

•the cost and effectiveness of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights.

Any changes in the outcome of any of these variables with respect to the development of our product candidates could mean a significant change in the costs and timing associated with the development of these product candidates. For example, if the FDA or another regulatory authority delays our clinical trials or requires us to conduct clinical trials or other testing beyond those that we currently expect, or if we experience significant delays in enrollment in any of our clinical trials, we could be required to expend significant additional financial resources and time to complete clinical development of that product candidate. We may never obtain regulatory approval for any of our product candidates. If we do obtain regulatory approval for our product candidates, drug commercialization will take several years and millions of dollars in development costs.

A further discussion of some of the risks and uncertainties associated with completing our research and development programs on schedule, or at all, and some consequences of failing to do so, are set forth under Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022 , as supplemented by the risk factors discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, and those included under Part II, Item 1A of this Quarterly Report on Form 10-Q.

General and Administrative. General and administrative expense consists primarily of salaries and related expenses, including stock-based compensation expense for personnel in executive, finance, accounting, business development, legal, information technology, corporate communications and human resource functions. Other costs include facility costs not otherwise included in research and development expense, insurance, and professional fees for legal, patent and accounting services. Patent costs include certain patents covered under collaborations, a portion of which is reimbursed by collaborators and a portion of which is borne by us.

Critical Accounting Policies and Estimates

The preparation of our Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires that we make estimates and assumptions that affect the reported amounts and disclosure of certain assets and liabilities at our balance sheet date. Such estimates and judgments include the carrying value of goodwill, revenue recognition, the value of certain liabilities, debt classification and stock-based compensation. We base our estimates on historical experience and on various other factors that we believe to be appropriate 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. Actual results may differ from these estimates under different assumptions or conditions.

During the nine months ended September 30, 2023, there were no material changes to our critical accounting policies and estimates as reported in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 13, 2023.

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Results of Operations

Three and Nine Months Ended September 30, 2023 and 2022

The following table summarizes our results of operations for the three and nine months ended September 30, 2023 and 2022:


	For the Three Months Ended September 30,				Percentage Increase (Decrease)		For the Nine Months Ended September 30,				Percentage Increase (Decrease)
	2023		2022				2023		2022
	(in thousands)						(in thousands)
Revenues, net:	$	2,833	$	2,825	—	%	$	7,327	$	7,275	1	%
Costs and expenses:
Cost of royalties	60		62		(3)	%	158		186		(15)	%
Research and development	10,380		10,813		(4)	%	29,532		34,571		(15)	%
General and administrative	4,761		4,556		4	%	13,770		15,318		(10)	%
Other income (expense)	187		(688)		(127)	%	432		(2,543)		(117)	%
Net loss	$	(12,181)	$	(13,294)	(8)	%	$	(35,701)	$	(45,343)	(21)	%

Revenues, net

Revenues, net remained consistent for the three and nine months ended September 30, 2023 as compared to the same period in 2022.

Cost of Royalties

Cost of royalties is comprised of amounts due to third-party university patent licensors in connection with Genentech and Roche's Erivedge net sales.

Research and Development Expenses. Research and development expenses are summarized as follows:


	For the Three Months Ended September 30,				Percentage Increase (Decrease)		For the Nine Months Ended September 30,				Percentage Increase (Decrease)
	2023		2022				2023		2022
	(in thousands)						(in thousands)
Direct research and development costs	$	6,388	$	4,976	28	%	$	17,094	$	16,719	2	%
Employee related costs	3,549		5,279		(33)	%	10,840		15,900		(32)	%

Facility related costs	443		558		(21)	%	1,598		1,952		(18)	%
Total research and development expenses	$	10,380	$	10,813	(4)	%	$	29,532	$	34,571	(15)	%

Research and development expenses were $10.4 million for the three months ended September 30, 2023 as compared to $10.8 million in the same period in 2022, a decrease of approximately $0.4 million, or 4%. The decrease was primarily attributable to lower employee related costs due to a reduction in headcount, partially offset by increased clinical costs.

Research and development expenses were $29.5 million for the nine months ended September 30, 2023 as compared to $34.6 million in the same period in 2022, a decrease of approximately $5.0 million, or 15%. The decrease was primarily attributable to lower employee related costs due to a reduction in headcount.

We expect that a majority of our research and development expenses for the foreseeable future will be incurred in connection with our efforts to advance emavusertib, including clinical and preclinical development costs, manufacturing, and payments to our collaborators and/or licensors.

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General and Administrative Expenses. General and administrative expenses are summarized as follows:


	For the Three Months Ended September 30,				Percentage Increase (Decrease)		For the Nine Months Ended September 30,				Percentage Increase (Decrease)
	2023		2022				2023		2022
	(in thousands)						(in thousands)
Employee related costs	$	2,294	$	2,356	(3)	%	$	6,876	$	8,182	(16)	%


Professional, legal, and consulting services	1,444		1,178		23	%	4,053		4,091		(1)	%
Facility related costs	774		703		10	%	2,024		1,922		5	%
Insurance costs	249		319		(22)	%	817		1,123		(27)	%

Total general and administrative expenses	$	4,761	$	4,556	5	%	$	13,770	$	15,318	(10)	%

General and administrative expenses were $4.8 million for the three months ended September 30, 2023, as compared to $4.6 million in the same period in 2022, an increase of $0.2 million, or 5%. The increase was primarily attributable to higher professional, legal, and consulting services costs.

General and administrative expenses were $13.8 million for the nine months ended September 30, 2023, as compared to $15.3 million in the same period in 2022, a decrease of $1.5 million, or 10%. The decrease was primarily attributable to lower employee related costs due to a reduction in headcount.

Other Income and Expense

Other income and expense increased for the three months ended September 30, 2023 as compared to other expense for the same period in 2022. The change was attributable to increased interest income partially offset by a decrease in the non-cash expense related to the sale of future royalties.

Other income and expense increased for the nine months ended September 30, 2023 as compared to other expense for the same period in 2022. The change was attributable to increased interest income partially offset by a decrease in the non-cash expense related to the sale of future royalties.

Liquidity and Capital Resources

We have financed our operations primarily through private and public placements of our equity securities, license fees, contingent cash payments and research and development funding from our corporate collaborators, and the monetization of certain royalty rights. See “Funding Requirements” below and Note 1 to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for a further discussion of our liquidity.

As of September 30, 2023, our principal sources of liquidity consisted of cash, cash equivalents and investments of $68.5 million, excluding restricted cash of $0.5 million. Our cash and cash equivalents are highly liquid investments with a maturity of three months or less at date of purchase. Our short-term investments primarily include U.S. Treasury securities, U.S. agency bonds, commercial paper and corporate debt securities. We maintain cash balances with financial institutions in excess of insured limits.

Equity Offerings

We are party to a sales agreement, or the 2021 Sales Agreement, with Cantor Fitzgerald & Co., or Cantor, and JonesTrading Institutional Services LLC , or JonesTrading, to sell from time to time up to $100.0 million of our common stock through an “at-the-market offering” program under which Cantor and JonesTrading act as sales agents. To date, we have sold 229,185 shares, representing gross proceeds of $6.3 million. We did not sell any shares of common stock under the 2021 Sales Agreement during the three and nine months ended September 30, 2023. As of September 30, 2023, $93.7 million remained available for sale under the 2021 Sales Agreement.

In July 2023, we sold and issued, in a registered direct offering, or the July Registered Direct, to certain institutional investors an aggregate of 920,488 shares of our common stock at a purchase price of $16.40 per share for net proceeds of approximately $13.8 million.

Royalty Interest Purchase Agreement

In March 2019, we and Curis Royalty entered into the Oberland Purchase Agreement with the Purchasers. We sold to the Purchasers a portion of our rights to receive royalties from Genentech on potential net sales of Erivedge.

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As upfront consideration for the purchase of the royalty rights, at closing the Purchasers paid to Curis Royalty $65.0 million less certain transaction expenses. Curis Royalty will also be entitled to receive up to $53.5 million in milestone payments based on sales of Erivedge if the Purchasers receive payments pursuant to the Oberland Purchase Agreement in excess of $117.0 million on or prior to December 31, 2026. For further discussion please refer to Note 7, Liability Related to the Sale of Future Royalties, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q.

In March 2023, Curis and Curis Royalty received a letter from counsel to Oberland Capital Management, LLC, the Purchasers and the Agent alleging defaults under the Oberland Purchase Agreement. The letter further alleges that these alleged defaults are events of default under the Oberland Purchase Agreement and that each alleged default separately entitles the Purchasers to exercise the put option, which would require Curis Royalty to repurchase the Purchased Receivables at the Put/Call Price. The Purchasers have not attempted to exercise that put option but have purported to reserve their alleged right to exercise it without further notice. As of September 30, 2023, the estimated amount of the Put/Call Price is up to $63.0 million. The Purchasers have also reserved other asserted rights in respect of the alleged defaults, including the asserted right to seek judicial remedies, including for damages and rescission, and to assert alleged claims against Curis and Curis Royalty for indemnification on the basis of material breach and fraud in the inducement. Curis and Curis Royalty dispute these allegations. However, if Oberland elects to pursue these claims, and if Curis and Curis Royalty are unsuccessful in defending against these claims, it could have a material adverse impact on Curis and Curis Royalty, including their ability to continue as a going concern.

A further discussion of risks related to the letter from counsel to Oberland Capital Management, LLC, the Purchasers and the Agent, is set forth under Item 1A, “Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2022.

Milestone Payments and Monetization of Royalty Rights

We began receiving royalty revenues in 2012 in connection with Genentech’s sales of Erivedge in the U.S. and Roche’s sales of Erivedge outside of the U.S. Erivedge royalty revenues received after December 2012 have been used to repay Curis Royalty’s outstanding principal and interest under credit agreements. A substantial portion of Erivedge royalty and royalty-related revenue payments will be paid to the Purchasers pursuant to the Oberland Purchase Agreement. We also remain entitled to receive any contingent payments upon achievement of clinical development objectives and royalty payments related to sales of Erivedge pursuant to our collaboration agreement with Genentech and certain contingent payments upon achievement of contractually specified royalty revenue payment amounts related to sales of Erivedge pursuant to the Oberland Purchase Agreement. Upon receipt of any such payments, as well as on royalties received, we are required to make payments to certain university licensors totaling 5% of these amounts, subject to expiration of our obligations.

Cash Flows from Operating Activities

Cash flows from operating activities consist of our net loss adjusted for various non-cash items and changes in operating assets and liabilities. Cash used in operating activities during the nine months ended September 30, 2023 and 2022 was $28.2 million and $42.1 million, respectively. Net cash used in operations decreased by $13.8 million due to decreased employee related costs and timing of payments.

Cash Flows from Investing Activities

Cash provided by investing activities during the nine months ended September 30, 2023 and 2022 was $23.3 million and $29.6 million, respectively. Cash provided by investing activities during both periods was primarily due to net investment activity from purchases and sales or maturities of investments for the respective periods.

Cash Flows from Financing Activities

Cash provided by financing activities was $9.7 million and $2.3 million during the nine months ended September 30, 2023 and 2022, respectively Cash provided by financing activities during the nine months ended September 30, 2023 was primarily due to proceeds from the July Registered Direct, partially offset by payments related to the royalty interest for the Oberland Purchase Agreement. Cash provided by financing activities during the nine months ended September 30, 2022 was primarily due to proceeds from the 2021 Sales Agreement, partially offset by the payment of our liability under the Oberland Purchase Agreement.

Funding Requirements

We have incurred significant losses since our inception. As of September 30, 2023, we had an accumulated deficit of $1.2 billion. We will require substantial funds to continue our research and development programs and to fulfill our planned operating goals. Our planned operating and capital requirements currently include the support of our current and future research and development activities for emavusertib as well as development candidates we have and continue to license under our

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collaboration with Aurigene. We will require substantial additional capital to fund the further development of these programs, as well as to fund our general and administrative costs and expenses. Moreover, our agreements with collaborators impose significant potential financial obligations on us. For example, under our collaboration, license and option agreement with Aurigene, we are required to make milestone, royalty and option fee payments for discovery, research and preclinical development programs that will be performed by Aurigene, which impose significant potential financial obligations on us.

Based on our current operating plan, we believe that our existing cash, cash equivalents and investments of $68.5 million as of September 30, 2023 should be sufficient to fund our operations into 2025. We have based this assessment on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect. If we are unable to obtain sufficient funding, we will be forced to delay, reduce in scope or eliminate some of our research and development programs, including related clinical trials and operating expenses, potentially delaying the time to market for, or preventing the marketing of, any of our product candidates, which could adversely affect our business prospects and our ability to continue operations, and would have a negative impact on our financial condition and our ability to pursue our business strategies. Our resources are focused on the emavusertib programs. Our ability to raise additional funds will depend on financial, economic and market conditions, many of which are outside of our control, and we may be unable to raise financing when needed, or on terms favorable to us, or at all. In addition, we may seek to engage in one or more strategic alternatives, such as a strategic partnership with one or more parties, the licensing, sale or divestiture of some of our assets or proprietary technologies or the sale of our company, but there can be no assurance that we would be able to enter into such a transaction or transactions on a timely basis or on terms favorable to us, or at all. Our failure to raise capital through a financing or strategic alternative as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy. If we are unable to obtain sufficient capital we would be unable to fund our operations and may be required to evaluate alternatives, which could include dissolving and liquidating our assets or seeking protection under the bankruptcy laws, and a determination to file for bankruptcy could occur at a time that is earlier than when we would otherwise exhaust our cash resources. If we decide to dissolve and liquidate our assets or to seek protection under the bankruptcy laws, it is unclear to what extent we would be able to pay our obligations, and, accordingly, it is further unclear whether and to what extent any resources would be available for distributions to stockholders.

Furthermore, there are a number of factors that may affect our future capital requirements and further accelerate our need for additional working capital, many of which are outside our control, including the following:

•unanticipated costs in our research and development programs;

•the timing and cost of obtaining regulatory approvals for our drug candidates and maintaining compliance with regulatory requirements;

•payments due to licensors, including Aurigene, for patent rights and technology used in our drug development programs;

•the costs of commercialization activities for any of our drug candidates that receive marketing approval, to the extent such costs are our responsibility, including the costs and timing of establishing drug sales, marketing, distribution and manufacturing capabilities;

•unplanned costs to prepare, file, prosecute, defend and enforce patent claims and other patent-related costs, including litigation costs and technology license fees;

•unexpected losses in our cash investments or an inability to otherwise liquidate or access our cash investments due to unfavorable conditions in the capital markets, including volatility and instability in the capital markets; and

•our ability to continue as a going concern.

To become and remain profitable, we, either alone or with collaborators, must develop and eventually commercialize one or more drug candidates with significant market potential. This will require us to be successful in a range of challenging activities, including completing preclinical testing and clinical trials of our drug candidates, obtaining marketing approval for these drug candidates, manufacturing, marketing and selling those drugs for which we may obtain marketing approval and satisfying any post marketing requirements. We may never succeed in these activities and, even if we do, may never generate revenues that are significant or large enough to achieve profitability. Other than Erivedge, which is being commercialized by Genentech and Roche, our most advanced drug candidates are currently only in early clinical testing.

For the foreseeable future, we will need to spend significant capital in an effort to develop and commercialize products and we expect to incur substantial operating losses. Our failure to become and remain profitable would, among other things, depress the market price of our common stock and could impair our ability to raise capital, expand our business, diversify our research and development programs or continue our operations.

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New Accounting Pronouncements

For detailed information regarding recently issued accounting pronouncements and the expected impact on our Condensed Consolidated Financial Statements, see Note 2h, New Accounting Pronouncements, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q.

Contractual Obligations

There have been no material changes to our contractual obligations set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Contractual Obligations” in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls & Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2023. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2023, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended September 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1A. RISK FACTORS

The following information updates, and should be read in conjunction with, the risk factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, or the 2022 10-K, which was filed with the SEC on March 13, 2023, as supplemented by the risk factor discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, or the Q1 2023 10-Q, which was filed with the SEC on May 4, 2023, and the risk factor discussed in Part II, Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, or the Q2 2023 10-Q, which was filed with the SEC on August 3, 2023. Any of the risk factors contained in this Quarterly Report on Form 10-Q, the Q1 2023 10-Q, the Q2 2023 10-Q and the 2022 10-K could materially affect our business, financial condition or future results, and such risk factors may not be the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

If we fail to meet the requirements for continued listing on the Nasdaq Capital Market, our common stock could be delisted from trading, which would decrease the liquidity of our common stock and our ability to raise additional capital.

Our common stock is currently listed on the Nasdaq Capital Market. We are required to meet specified requirements to maintain our listing on the Nasdaq Capital Market, including a minimum bid price of $1.00 per share for our common stock and standards relative to minimum stockholders’ equity, minimum market value of publicly held shares and various additional requirements.

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On October 13, 2023, we received a notice from Nasdaq indicating that we have regained compliance with the minimum bid price requirement of the Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(a)(2).

Although we currently comply with the minimum bid requirement following the Reverse Stock Split, our bid price could fall below $1.00 per share again in the future, in which event we would receive another deficiency notice from Nasdaq advising us that we have 180 days to regain compliance by maintaining a minimum bid price of at least $1.00 for a minimum of 10 consecutive business days. Under certain circumstances, Nasdaq could require that the minimum bid price be $1.00 per share or greater for more than 10 consecutive days before determining that a company complies. If we fail to satisfy the Nasdaq Capital Market’s continued listing requirements and we are delisted from Nasdaq, we may transfer to and commence trading on the OTC Markets or another quotation medium. As a result, an investor would likely find it more difficult to trade or obtain accurate price quotations for our shares. Delisting would likely also reduce the visibility, liquidity, and value of our common stock, reduce institutional investor interest in our company, and may increase the volatility of our common stock. Delisting could also cause a loss of confidence of potential industry partners, lenders, and employees, which could further harm our business and our future prospects. Some or all of these material adverse consequences may contribute to a further decline in our stock price.

Our September 2023 Reverse Stock Split may decrease the liquidity of our common stock.

On September 28, 2023, we effected a 1-for-20 reverse stock split of our common stock, or the Reverse Stock Split. The liquidity of our common stock may be adversely affected by the Reverse Stock Split given the reduced number of shares that are outstanding following the Reverse Stock Split, which may lead to reduced trading and a smaller number of market makers for our common stock, particularly if the per-share trading price does not increase as a result of the Reverse Stock Split. In addition, the Reverse Stock Split may have increased the number of stockholders who own “odd lots” of less than 100 shares of our common stock. Odd lot shares may be more difficult to sell, and brokerage commissions and other costs of transactions in odd lots may be higher than the costs of transactions in “round lots” of even multiples of 100 shares.

Following the Reverse Stock Split, the resulting per-share trading price of our common stock may nevertheless fail to attract institutional investors and may not satisfy the investing guidelines of such investors and, consequently, the trading liquidity of our common stock may not improve. Accordingly, the Reverse Stock Split may not achieve the desired results of increasing marketability of our common stock.

Any delay or inability to continue or complete our clinical trials of emavusertib could materially adversely affect our business, prospects, financial condition and operations.

We may experience delays in opening new trial sites and enrolling patients in our TakeAim Leukemia Phase 1/2 trial, TakeAim Lymphoma Phase 1/2 trial, or in any trial of ours. Any delay in enrolling patients or our inability to continue or complete our clinical trials of emavusertib will delay or may cause us to terminate our clinical development plans for emavusertib, may require us to incur additional clinical development costs, may slow down our product candidate development and approval process, and could impair our ability to ultimately obtain FDA approval for emavusertib and commence product sales and generate revenue, any of which could materially adversely affect our business, prospects, financial condition and operations. Further, we cannot assure you that we will not observe safety events in our clinical trials, similar to that which resulted in partial clinical holds and subsequent removal of the partial clinical holds in our TakeAim Leukemia Phase 1/2 trial and TakeAim Lymphoma Phase 1/2 trial, which may lead to future clinical holds, or necessitate additional or amended trials, any of which could have a material adverse effect on our business, prospects, financial condition and operations.

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Item 6. Exhibits


Exhibit Number			Description



3.1 *			Restated Certificate of Incorporation of Curis, Inc., as amended.

10.1			Form of Securities Purchase Agreement, dated July 5 , 2023, by and among Curis, Inc. and the Purchasers named therein (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed on July 6 , 2023)

31.1 *			Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
31.2 *			Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
32.1 *			Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350
32.2 *			Certification of the Principal Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350

101.INS *			InLine XBRL Instance Document

101.SCH *			InLine XBRL Taxonomy Extension Schema Document

101.CAL *			InLine XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF *			InLine XBRL Taxonomy Extension Definition Linkbase Document

101.LAB *			InLine XBRL Taxonomy Extension Label Linkbase Document

101.PRE *			InLine XBRL Taxonomy Extension Presentation Linkbase Document

104			Cover Page Interactive Data File

* Filed herewith

Table of Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		CURIS, INC.

Dated:	November 2, 2023	By:	/S/ JAMES E. DENTZER
			James E. Dentzer
			President and Chief Executive Officer
			(Principal Executive Officer)


		CURIS, INC.

		By:	/S/ DIANTHA DUVALL
			Diantha Duvall
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

EXHIBIT 3.1

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

CURIS, INC. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware (the “General Corporation Law”), hereby certifies as follows:

The name of the Corporation is Curis, Inc. A Certificate of Incorporation of the Corporation was filed with the Secretary of State of the State of Delaware on February 14, 2000.

This Restated Certificate of Incorporation restates and integrates and further amends the Certificate of Incorporation of the Corporation, was duly adopted by the Board of Directors of the Corporation in accordance with the provisions of Sections 141 and 245 of the Delaware General Corporation Law, and was approved by written consent of the stockholders of the Corporation given in accordance with the provisions of Section 228 and Section 242 of the Delaware General Corporation Law (prompt notice of such action having been given to those stockholders who did not consent in writing).

The text of the Certificate of Incorporation of the Corporation is hereby restated and amended to read in its entirety as follows:

FIRST: The name of this corporation (the “Corporation”) is Curis, Inc.

SECOND: The address of the registered office of the Corporation in the State of Delaware is 1209 Orange Street, Wilmington, Delaware 19801, County of New Castle, and the name of its registered agent at such address is The Corporation Trust Company.

THIRD: The purpose for which the Corporation is organized is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware.

FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share (“Common Stock”), and the other of which is designated as preferred stock, $.01 par value per share (“Preferred Stock”). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 130,000,000 shares, consisting of 125,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation.

(a)Common Stock

(1) General. The voting, dividend and liquidation rights of holders of Common Stock are subject to and qualified by the rights of holders of Preferred Stock of any series as may be designated in any resolution or resolutions providing for the issue of such series as may be adopted by the board of directors as hereinafter provided.

STATE OF DELAWARE
SECRETARY OF STATE
DIVISION OF CORPORATIONS
FILED 01:30 PM 06/19/2000
001309790 - 3152050

(2) Voting. Holders of Common Stock are entitled to one vote for each share held at all meetings of stockholders. The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the capital stock of the Corporation entitled to vote, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law of the State of Delaware.

(3) Dividends. Dividends may be declared and paid on Common Stock from funds lawfully available therefor, as and when determined by the board of directors and subject to any preferential dividend rights of any series of Preferred Stock then outstanding.

(4) Liquidation. Upon the dissolution or liquidation of the Corporation, whether voluntary or involuntary, holders of Common Stock will be entitled to receive all assets of the Corporation available for distribution to stockholders of the Corporation, subject to any preferential rights of any series of Preferred Stock then outstanding.

(b)Preferred Stock

(1) Issuance. Preferred Stock may be issued from time to time in one or more series, each of which series shall have such terms as are set forth herein and in any resolution or resolutions providing for the issue of such series as may be adopted by the board of directors as hereinafter provided. Any shares of Preferred Stock that may be redeemed, purchased or acquired by the Corporation may be reissued except as otherwise expressly provided in this Certificate of Incorporation or provided by law. Different series of Preferred Stock shall not be construed to constitute different classes of capital stock for the purposes of voting by classes unless expressly provided.

(2) Authority of Board. Authority is hereby expressly granted to the board of directors to provide for the issuance of Preferred Stock from time to time in one or more series, and in connection with the creation of any such series, to determine and fix such voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights thereof, and qualifications, limitations or restrictions applicable thereto, as shall be stated and expressed in such resolutions, all to the full extent now or hereafter permitted by the General Corporation Law of the State of Delaware. Without limiting the generality of the foregoing, a resolution or resolutions providing for issuance of any series of Preferred Stock may provide for dividend rights, conversion rights, redemption privileges and liquidation preferences applicable to such series and may provide that such series shall rank superior, equal or junior to the Preferred Stock of any other series, in each case except as otherwise expressly provided in this Certificate of Incorporation or as provided by law. Except as otherwise provided in this Certificate of Incorporation, no vote of holders of Common Stock or holders of Preferred Stock shall be a prerequisite to the designation or issuance of any shares of any series of Preferred Stock authorized by and complying with the conditions of this Certificate of Incorporation.

FIFTH: Special meetings of stockholders may be called at any time by the Chairman of the Board, the Chief Executive Officer (or if there is no Chief Executive Officer, the President) or the board of directors. Business transacted at any special meeting of stockholders shall be limited to matters relating to the purpose or purposes stated in the notice of the general meeting. From and after the effective date of the Form 8-A Registration Statement under the Securities Exchange Act of 1934, as amended, the stockholders of the Corporation shall not be permitted to take any action otherwise required to be taken at any annual meeting or special meeting of the stockholders of the Corporation by a consent in writing in lieu of any such meeting.

SIXTH: No director shall be personally liable to the Corporation or to any of its stockholders for monetary damages arising out of such director’s breach of fiduciary duty as a director of the Corporation, except to the extent that the elimination or limitation of such liability is not permitted by the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended. No amendment to or repeal of the provisions of this Article SIXTH shall deprive any director of the Corporation of the benefit of the provisions of this Article SIXTH with respect to any act or failure to act of any director occurring prior to such amendment or repeal.

SEVENTH: In furtherance of and not in limitation of powers conferred by statute, it is further provided that:

(a)Amendment of By-Laws

Subject to the limitations and exceptions, if any, contained in the by-laws of the Corporation, the by-laws may be adopted, amended or repealed by the board of directors.

(b)Election of Directors

Elections of directors need not be by written ballot unless otherwise provided in the by-laws of the Corporation.

(c)Location of Corporate Books

Subject to any applicable requirements of the General Corporation Law of the State of Delaware, the books of the Corporation may be kept outside the State of Delaware at such location or locations as may be designated from time to time by the board of directors or in the by-laws of the Corporation.

EIGHTH: The Corporation shall indemnify each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Corporation), by reason of the fact that such person is or was, or has agreed to become, a

director or officer of the Corporation, or is or was serving or has agreed to serve, at the request of the Corporation, as a director, officer or trustee of, or in a similar capacity with, another corporation (including any partially or wholly owned subsidiary of the Corporation), partnership, joint venture, trust or other enterprise (including any employee benefit plan), against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any such action, suit or proceeding to the maximum extent permitted by the General Corporation Law of Delaware. The foregoing right of indemnification shall in no way be exclusive of any other rights of indemnification to which any such director or officer may be entitled, under any by-law, agreement, vote of directors or stockholders or otherwise. No amendment to or repeal of the provisions of this paragraph shall deprive a person of the benefit of this paragraph with respect to any act or failure to act of such person occurring prior to such amendment or repeal.

NINTH: Whenever a compromise or arrangement is proposed between the Corporation and its creditors or any class of them or between the Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of the Corporation or of any creditor or stockholder thereof or on the application of any receiver or receivers appointed for the Corporation under Section 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or of any receiver or receivers appointed for the Corporation under Section 279 of Title 8 of the Delaware Code, order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case my be, to be summoned in such manner as the said court directs. If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of the Corporation as a consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders, of the Corporation, as the case may be, and also on the Corporation.

TENTH: The Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation in the manner now or hereafter prescribed by the General Corporation Law of the State of Delaware and this Certificate of Incorporation, and all rights conferred upon stockholders herein are granted subject to this reservation. Notwithstanding any provision of law, any other provision of this Certificate of Incorporation or any provision of the by-laws of the Corporation, the affirmative vote of the holders of three-fourths of the shares of capital stock of the Corporation issued and outstanding and entitled to vote shall be required to amend or repeal, or to adopt any provision inconsistent with, any provision of Article FIFTH or this Article TENTH.

ELEVENTH: The name of the sole incorporator of the Corporation is Jonathan H. Hulbert and his mailing address is c/o Foley, Hoag & Eliot LLP, One Post Office Square, Boston, Massachusetts 02109.

IN WITNESS WHEREOF, the Corporation has caused this Restated Certificate of Incorporation to be executed by the undersigned as of the 16 th day June, 2000.



CURIS, INC.

By:						/s/ Doros Platika
						Doros Platika President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 02:45 PM 05/30/2013

FILED 02:36 PM 05/30/2013

SRV 130697723 - 3152050 FILE

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, 1nc. (the "Corporation"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

FIRST: That the Board of Directors of the Corporation has duly adopted resolutions authorizing and approving an amendment to the Restated Certificate of Incorporation of the Corporation to (i) increase the number of authorized shares of capital stock of the Corporation and (ii) increase the number of authorized shares of Common Stock of the Corporation.

SECOND: That the amendment to the Restated Certificate of Incorporation of the Corporation set forth in this Certificate of Amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of Delaware by the Board of Directors and holders of a majority of the outstanding stock of the Corporation entitled to vote thereon.

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of Incorporation is hereby amended and restated as follows:

“FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share (“Common Stock”), and the other of which is designated as preferred stock, $.01 par value per share (“Preferred Stock”). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 230,000,000 shares, consisting of 225,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation.”

* * *

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 30 th day of May, 2013.



By:						/s/ Dan Passeri
						Dan Passeri Title: Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 10:46 AM 05/15/2018

FILED 10:46 AM 05/15/2018

SR 20183757772 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of 1ncorporation is hereby amended and restated as follows:

"FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share ("Common Stock"), and the other of which is designated as preferred stock, $.01 par value per share ("Preferred Stock"). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 342,500,000 shares, consisting of 337,500,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation."

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 15 th day of May, 2018.


						/s/ Ali Fattaey
By:						Ali Fattaey, Ph.D.
Title:						President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 08:05 AM 0512912018

FILED 08:05 AM 0512912018

SR 20184453936 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, 1nc. (the "Corporation"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

FIRST: That the Board of Directors of the Corporation has duly adopted resolutions authorizing and approving an amendment to the Restated Certificate of Incorporation of the Corporation.

THIRD: That upon the effectiveness of this Certificate of Amendment, Article FOURTH of the Restated Certificate of Incorporation is hereby amended by adding the following two paragraphs as the first two paragraphs in lieu of the existing first paragraph of such Article FOURTH:

"Effective at 5:00 p.m., Eastern Time, on the date of filing of this Certificate of Amendment to the Restated Certificate of Incorporation with the Secretary of State of the State of Delaware (the "Effective Time"), a one-for-five reverse stock split of the Corporation's common stock, $0.01 par value per share (the "Common Stock"), shall become effective, pursuant to which each five shares of Common Stock issued or outstanding (including treasury shares) immediately prior to the Effective Time shall be reclassified and combined into one validly issued, fully paid and nonassessable share of Common Stock automatically and without any action by the holder thereof upon the Effective Time and shall represent one share of Common Stock from and after the Effective Time (such reclassification and combination of shares, the "Reverse Stock Split"). The par value of the Common Stock following the Reverse Stock Split shall remain at $0.01 par value per share. No fractional shares of Common Stock shall be issued as a result of the Reverse Stock Split and, in lieu thereof, upon surrender after the Effective Time of a certificate which formerly represented shares of Common Stock that were issued and outstanding immediately prior to the Effective Time, any person who would otherwise be entitled to a fractional share of Common Stock as a result of the Reverse Stock Split, following the Effective Time, shall be entitled to receive a cash payment equal to the fraction of a share of Common Stock to which such holder would otherwise be entitled multiplied by the fair value per share of the Common Stock immediately prior to the Effective Time as determined by the Board of Directors of the Corporation.

Each stock certificate that, immediately prior to the Effective Time, represented shares of Common Stock that were issued and outstanding immediately prior to the Effective Time shall, from and after the Effective Time, automatically and without the necessity of presenting the same for exchange, represent that number of whole shares of Common Stock after the Effective Time into which the shares formerly represented by such certificate have been reclassified (as well as the right to receive cash in lieu of fractional shares of Common Stock after the Effective Time); provided, however, that each person of record holding a certificate that represented shares of Common Stock that were issued and outstanding immediately prior to the Effective Time shall receive, upon surrender of such certificate, a new certificate evidencing and representing the number of whole shares of Common Stock after the Effective Time into which the shares of Common Stock formerly represented by such certificate shall have been reclassified. The Corporation is authorized to issue two classes of capital stock, one of which is designated as Common Stock, and the other of which is designated as preferred stock, $.01 par value per share ("Preferred Stock"). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 72,500,000 shares, consisting of 67,500,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the

designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation."

* * *

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 29 th day of May, 2018.


						/s/ Ali Fattaey
By:						Ali Fattaey, Ph.D.
Title:						President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 02:54 Pi\I 05123/2019

FILED 02:54 Pi\! 05123/2019

SR 20194444435 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the "Corporation"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

THIRD: That upon the effectiveness of this Certificate of Amendment, the first two paragraphs of Article FOURTH of the Restated Certificate of Incorporation are hereby amended and restated as follows:

"FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share ("Common Stock"), and the other of which is designated as preferred stock, $.01 par value per share ("Preferred Stock"). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 106,250,000 shares, consisting of 101,250,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation."

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 23rd day of May, 2019.


						/s/ James E. Dentzer
By:						James E. Dentzer
Title:						President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 04:32 PM 06/04/2020

FILED 04:32 PM 06/04/2020

SR 20205507455 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the "Corporation"), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

SECOND: That the amendment to the Restated Certificate of Incorporation of the Corporation set faith in this Certificate of Amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of Delaware by the Board of Directors and holders of a majority of the outstanding stock of the Corporation entitled to vote thereon.

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of Incorporation is hereby amended and restated as follows:

"FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share ("Common Stock"), and the other of which is designated as preferred stock, $.01 par value per share ("Preferred Stock"). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 156,875,000 shares, consisting of 151,875,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation."

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 4th day of June, 2020.


			/s/ James E. Dentzer
By: Title:			James E. Dentzer President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 08:28 PM 05/28/2021

FILED 08:28 PM 05/28/2021

SR 20212231164 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of Incorporation is hereby amended and restated as follows:

“FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $.01 par value per share (“Common Stock”), and the other of which is designated as preferred stock, $.01 par value per share (“Preferred Stock”). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 232,812,500 shares, consisting of 227,812,500 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation.”

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 28th day of May, 2021.


			/s/ James E. Dentzer
By: Title:			James E. Dentzer President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 12:09 PM 09/26/2023

FILED 12:09 PM 09/26/2023

SR 20233579476 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

SECOND: That the amendment to the Restated Certificate of Incorporation of the Corporation set forth in this Certificate of Amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of Delaware by the Board of Directors and stockholders of the Corporation.

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of Incorporation is hereby amended and restated as follows:

“FOURTH: The Corporation is authorized to issue two classes of capital stock, one of which is designated as common stock, $0.01 par value per share (“Common Stock”), and the other of which is designated as preferred stock, $0.01 par value per share (“Preferred Stock”). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 460,625,000 shares, consisting of 455,625,000 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation.”

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 26th day of September, 2023.

CURIS, INC.


			/s/ James E. Dentzer
By: Title:			James E. Dentzer President and Chief Executive Officer

State of Delaware

Secretary of State

Division of Corporations

Delivered 08:01 AM 09/28/2023

FILED 08:01 AM 09/28/2023

SR 20233598364 - File Number 3152050

CERTIFICATE OF AMENDMENT

RESTATED CERTIFICATE OF INCORPORATION

CURIS, INC.

Curis, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify:

FIRST: That the Board of Directors of the Corporation has duly adopted resolutions authorizing and approving an amendment to the Restated Certificate of Incorporation of the Corporation.

THIRD: That upon the effectiveness of this Certificate of Amendment, the first paragraph of Article FOURTH of the Restated Certificate of Incorporation is hereby amended and restated as follows:

“FOURTH: At 5:00 p.m., Eastern Time, on the date of filing of this Certificate of Amendment to the Restated Certificate of Incorporation with the Secretary of State of the State of Delaware (the “Effective Time”), a one-for-twenty reverse stock split of the Corporation’s common stock, $0.01 par value per share (the “Common Stock”), shall become effective, pursuant to which each twenty shares of Common Stock issued and outstanding and held of record by each stockholder of the Corporation or issued and held by the Corporation in treasury immediately prior to the Effective Time shall be reclassified and combined into one validly issued, fully paid and nonassessable share of Common Stock automatically and without any action by the holder thereof upon the Effective Time and shall represent one share of Common Stock from and after the Effective Time (such reclassification and combination of shares, the “Reverse Stock Split”). The par value of the Common Stock following the Reverse Stock Split shall remain at $0.01 par value per share. If, upon aggregating all of the Common Stock held by a holder of Common Stock immediately following the Reverse Stock Split a holder of Common Stock would otherwise be entitled to a fractional share of Common Stock, the Corporation shall issue to such holder such fractions of a share of Common Stock as are necessary to round the number of shares of Common Stock held by such holder up to the nearest whole share.

Each stock certificate or book entry position that, immediately prior to the Effective Time, represented shares of Common Stock that were issued and outstanding immediately prior to the Effective Time shall, from and after the Effective Time, automatically and without the necessity of presenting the same for exchange, represent that number of whole shares of Common Stock after the Effective Time into which the shares formerly represented by such certificate or book entry position have been reclassified (including those fractional shares issued by the Corporation in connection with the Reverse Stock Split to round the number of shares held by such holder at the Effective Time up to the nearest whole share); provided, however, that each stockholder of record holding a certificate or book entry position that represented shares of Common Stock that were issued and outstanding immediately prior to the Effective Time shall receive, upon surrender of such certificate or book entry position, a new certificate or book entry position evidencing and representing the number of whole shares of Common Stock after the Effective Time into which the shares of Common Stock formerly represented by such certificate or book entry position shall have been reclassified (including those fractional shares issued by the Corporation in connection with the Reverse Stock Split to round the number of shares held by such holder at the Effective

Time up to the nearest whole share). The Corporation is authorized to issue two classes of capital stock, one of which is designated as Common Stock, and the other of which is designated as preferred stock, $0.01 par value per share (“Preferred Stock”). The total number of shares of both classes of capital stock that the Corporation shall have authority to issue is 27,781,250 shares, consisting of 22,781,250 shares of Common Stock and 5,000,000 shares of Preferred Stock. The Preferred Stock may be issued from time to time in one or more series as set forth in Section (b) of this Article FOURTH. The following is a statement of the designations and the powers, preferences and rights of, and the qualifications, limitations or restrictions applicable to, each class of capital stock of the Corporation.”

IN WITNESS WHEREOF, this Certificate of Amendment of Restated Certificate of Incorporation has been executed by a duly authorized officer of the Corporation on this 28th day of September, 2023.

CURIS, INC.


			/s/ James E. Dentzer
By: Title:			James E. Dentzer President and Chief Executive Officer

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a) OF THE EXCHANGE ACT

I, James E. Dentzer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Curis, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:	November 2, 2023	/S/ JAMES E. DENTZER
		James E. Dentzer
		President and Chief Executive Officer
		(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) OF THE EXCHANGE ACT

I, Diantha Duvall, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Curis, Inc.;

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:	November 2, 2023	/S/ DIANTHA DUVALL
		Diantha Duvall
		Chief Financial Officer
		(Principal Financial Officer)

EXHIBIT 32.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(b) OF THE EXCHANGE ACT AND 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Curis, Inc. (the “Company”) for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, James E. Dentzer, President and Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	November 2, 2023	/S/ JAMES E. DENTZER
		James E. Dentzer
		President and Chief Executive Officer
		(Principal Executive Officer)

EXHIBIT 32.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14(b) OF THE EXCHANGE ACT AND 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Curis, Inc. (the “Company”) for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Diantha Duvall, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	November 2, 2023	/S/ DIANTHA DUVALL
		Diantha Duvall
		Chief Financial Officer
		(Principal Financial Officer)

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Oct. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	000-30347
Entity Registrant Name	CURIS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3505116
Entity Address, Address Line One	128 Spring Street
Entity Address, Address Line Two	Building C - Suite 500
Entity Address, City or Town	Lexington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02421
City Area Code	617
Local Phone Number	503-6500
Title of 12(b) Security	Common Stock, Par Value $0.01 per share
Trading Symbol	CRIS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,883,063
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001108205
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 24,468	$ 19,658
Short-term investments	44,030	65,965
Accounts receivable	2,848	2,975
Prepaid expenses and other current assets	2,080	3,521
Total current assets	73,426	92,119
Property and equipment, net	497	689
Restricted cash, long-term	544	635
Operating lease right-of-use asset	3,402	4,401
Other assets	3,124	2,022
Goodwill	8,982	8,982
Total assets	89,975	108,848
Current liabilities:
Accounts payable	5,221	3,193
Accrued liabilities	7,225	5,679
Current portion of operating lease liability	1,262	1,141
Total current liabilities	13,708	10,013
Long-term operating lease liability	1,831	2,800
Liability related to the sale of future royalties, net	44,845	49,483
Total liabilities	60,384	62,296
Stockholders’ equity:
Preferred stock, $0.01 par value—5,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and December 31, 2022	0	0
Common stock, $0.01 par value—22,781,250 shares authorized; 5,885,313 shares issued and outstanding at September 30, 2023; 11,390,625 shares authorized; 4,830,464 shares issued and outstanding at December 31, 2022	59	48
Additional paid-in capital	1,214,127	1,195,687
Accumulated deficit	(1,184,698)	(1,148,997)
Accumulated other comprehensive income (loss)	103	(186)
Total stockholders’ equity	29,591	46,552
Total liabilities and stockholders’ equity	$ 89,975	$ 108,848

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock authorized (in shares)	5,000,000	5,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	22,781,250	11,390,625
Common stock issued (in shares)	5,885,313	4,830,464
Common stock outstanding (in shares)	5,885,313	4,830,464

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues, net:
Revenues, net	$ 2,833	$ 2,825	$ 7,327	$ 7,275
Costs and expenses:
Cost of royalties	60	62	158	186
Research and development	10,380	10,813	29,532	34,571
General and administrative	4,761	4,556	13,770	15,318
Total operating expenses	15,201	15,431	43,460	50,075
Loss from operations	(12,368)	(12,606)	(36,133)	(42,800)
Other income (expense):
Interest income	806	335	2,273	577
Expense related to the sale of future royalties	(619)	(1,023)	(1,841)	(3,120)
Total other income (expense)	187	(688)	432	(2,543)
Net loss	$ (12,181)	$ (13,294)	$ (35,701)	$ (45,343)
Net loss per common share (basic ) (in dollars per share)	$ (2.13)	$ (2.83)	$ (6.96)	$ (9.82)
Net loss per common share (diluted) (in dollars per share)	$ (2.13)	$ (2.83)	$ (6.96)	$ (9.82)
Weighted average common shares (basic) (in shares)	5,720,789	4,689,559	5,131,904	4,618,518
Weighted average common shares (diluted) (in shares)	5,720,789	4,689,559	5,131,904	4,618,518
Net loss	$ (12,181)	$ (13,294)	$ (35,701)	$ (45,343)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	101	76	289	(370)
Comprehensive loss	$ (12,080)	$ (13,218)	$ (35,412)	$ (45,713)

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2021		4,582,353
Beginning balance at Dec. 31, 2021	$ 90,707	$ 46	$ 1,183,095	$ (1,092,325)	$ (109)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,718		1,718
Unrealized gain (loss) on marketable securities	(342)				(342)
Net loss	(16,109)			(16,109)
Ending balance (in shares) at Mar. 31, 2022		4,582,353
Ending balance at Mar. 31, 2022	75,974	$ 46	1,184,813	(1,108,434)	(451)
Beginning balance (in shares) at Dec. 31, 2021		4,582,353
Beginning balance at Dec. 31, 2021	90,707	$ 46	1,183,095	(1,092,325)	(109)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(45,343)
Ending balance (in shares) at Sep. 30, 2022		4,820,003
Ending balance at Sep. 30, 2022	55,745	$ 48	1,193,844	(1,137,668)	(479)
Beginning balance (in shares) at Mar. 31, 2022		4,582,353
Beginning balance at Mar. 31, 2022	75,974	$ 46	1,184,813	(1,108,434)	(451)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,966		1,966
Issuance of common stock under employee benefit plans, including restricted stock awards (in shares)		8,465
Issuance of common stock under employee benefit plans, including restricted stock awards	149	$ 0	149
Unrealized gain (loss) on marketable securities	(104)				(104)
Net loss	(15,940)			(15,940)
Ending balance (in shares) at Jun. 30, 2022		4,590,818
Ending balance at Jun. 30, 2022	62,045	$ 46	1,186,928	(1,124,374)	(555)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,324		1,324
Issuance of shares in connection with 2021 Sales Agreement, net of fees for issuance of shares (in shares)		229,185
Issuance of shares in connection with July Registered Direct, net of fees of $1.3 million for issuance of shares	5,594	$ 2	5,592
Unrealized gain (loss) on marketable securities	76				76
Net loss	(13,294)			(13,294)
Ending balance (in shares) at Sep. 30, 2022		4,820,003
Ending balance at Sep. 30, 2022	55,745	$ 48	1,193,844	(1,137,668)	(479)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Fees for issuance of shares	$ 700
Beginning balance (in shares) at Dec. 31, 2022	4,830,464	4,830,464
Beginning balance at Dec. 31, 2022	$ 46,552	$ 48	1,195,687	(1,148,997)	(186)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,395		1,395
Issuance of common stock under employee benefit plans, including restricted stock awards (in shares)		516
Issuance of common stock under employee benefit plans, including restricted stock awards	8	$ 1	7
Unrealized gain (loss) on marketable securities	195				195
Net loss	(11,559)			(11,559)
Ending balance (in shares) at Mar. 31, 2023		4,830,980
Ending balance at Mar. 31, 2023	$ 36,591	$ 49	1,197,089	(1,160,556)	9
Beginning balance (in shares) at Dec. 31, 2022	4,830,464	4,830,464
Beginning balance at Dec. 31, 2022	$ 46,552	$ 48	1,195,687	(1,148,997)	(186)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (35,701)
Ending balance (in shares) at Sep. 30, 2023	5,885,313	5,885,313
Ending balance at Sep. 30, 2023	$ 29,591	$ 59	1,214,127	(1,184,698)	103
Beginning balance (in shares) at Mar. 31, 2023		4,830,980
Beginning balance at Mar. 31, 2023	36,591	$ 49	1,197,089	(1,160,556)	9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,424		1,424
Issuance of common stock under employee benefit plans, including restricted stock awards (in shares)		136,345
Issuance of common stock under employee benefit plans, including restricted stock awards	178	$ 1	177
Unrealized gain (loss) on marketable securities	(7)				(7)
Net loss	(11,961)			(11,961)
Ending balance (in shares) at Jun. 30, 2023		4,967,325
Ending balance at Jun. 30, 2023	26,225	$ 50	1,198,690	(1,172,517)	2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 1,633		1,633
Cancellation of restricted stock awards (in shares)	(2,500)
Cancellation of restricted stock awards	$ (1)
Issuance of shares in connection with 2021 Sales Agreement, net of fees for issuance of shares (in shares)		920,488
Issuance of shares in connection with July Registered Direct, net of fees of $1.3 million for issuance of shares	13,814	$ 9	13,805
Unrealized gain (loss) on marketable securities	101				101
Net loss	$ (12,181)			(12,181)
Ending balance (in shares) at Sep. 30, 2023	5,885,313	5,885,313
Ending balance at Sep. 30, 2023	$ 29,591	$ 59	$ 1,214,127	$ (1,184,698)	$ 103
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Fees for issuance of shares	$ 1,300

Condensed Consolidated Statements of Stockholders’ Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Fees for issuance of shares	$ 1.3	$ 0.7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (35,701)	$ (45,343)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	191	141
Non-cash lease expense	999	840
Stock-based compensation expense	4,452	5,008
Non-cash expense related to the sale of future royalties	(336)	28
Net amortization of premiums and discounts on marketable securities	(1,044)	651
Changes in operating assets and liabilities:
Accounts receivable	127	338
Prepaid expenses and other assets	338	(2,897)
Accounts payable and accrued liabilities	3,574	(187)
Operating lease liability	(848)	(648)
Total adjustments	7,453	3,274
Net cash used in operating activities	(28,248)	(42,069)
Cash flows from investing activities:
Purchase of investments	(64,656)	(49,419)
Sales and maturities of investments	87,925	79,395
Purchases of property and equipment	0	(416)
Net cash provided by investing activities	23,269	29,560
Cash flows from financing activities:
Proceeds from issuance of common stock	0	5,663
Proceeds from issuance of common stock under employee benefit plans	185	149
Payment of liability of future royalties, net of imputed interest	(4,301)	(3,557)
Net cash provided by financing activities	9,698	2,255
Net increase (decrease) in cash and cash equivalents and restricted cash	4,719	(10,254)
Cash and cash equivalents and restricted cash, beginning of period	20,293	40,740
Cash and cash equivalents and restricted cash, end of period	25,012	30,486
Supplemental cash flow data:
Issuance costs in accrued expenses and accounts payable	0	69
Cash paid for interest	2,177	3,093
Decrease in right-of-use assets and operating lease liabilities resulting from lease modification	0	(191)
July Registered Direct
Cash flows from financing activities:
Proceeds from issuance of common stock	$ 13,814	$ 0

Nature of Business	9 Months Ended
Nature of Business	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Curis, Inc. is a biotechnology company seeking to develop and commercialize innovative drug candidates to treat cancer. Throughout these Condensed Consolidated Financial Statements, Curis, Inc. and its wholly owned subsidiaries are collectively referred to as “the Company,” “Curis,” “we,” “us,” or “our.” The Company conducts its research and development programs both internally and through strategic collaborations. The Company has prioritized its lead clinical stage drug candidate emavusertib, an orally available small molecule inhibitor of Interleukin-1 receptor associated kinase 4 (“IRAK4”). The Company is party to a collaboration with Genentech Inc. (“Genentech”), a member of the Roche Group, under which Genentech and F. Hoffmann-La Roche Ltd (“Roche”) are commercializing Erivedge® (vismodegib), a first-in-class orally administered small molecule Hedgehog signaling pathway antagonist. Erivedge is approved for the treatment of advanced basal cell carcinoma (“BCC”). The Company is party to an exclusive collaboration agreement with Aurigene Discovery Technologies Limited (“Aurigene”) for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and precision oncology. The Company is subject to risks common to companies in the biotechnology industry as well as risks that are specific to the Company’s business, including, but not limited to: the Company’s ability to obtain adequate financing to fund its operations; the Company’s ability to advance and expand its research and development programs; the Company’s ability to execute on its overall business strategies; the Company’s ability to obtain and maintain necessary intellectual property protection; development by the Company’s competitors of new or better technological innovations; the Company’s ability to comply with regulatory requirements; the Company’s ability to obtain and maintain applicable regulatory approvals and commercialize any approved product candidates; and the ability of the Company and its wholly owned subsidiary, Curis Royalty, LLC (“Curis Royalty”), to satisfy the terms of the royalty interest purchase agreement (the “Oberland Purchase Agreement”) with entities managed by Oberland Capital Management, LLC (the “Purchasers”), and Lind SA LLC (the “Agent”), as collateral agent for the Purchasers. The Company’s future operating results will largely depend on the progress of drug candidates currently in its development pipeline and the magnitude of payments that it may receive and make under its current and potential future collaborations. The results of the Company’s operations have varied and will likely continue to vary significantly from year to year and quarter to quarter and depend on a number of factors, including, but not limited to the timing, outcome and cost of the Company’s preclinical studies and clinical trials for its drug candidates. The Company will require substantial funds to maintain research and development programs and support operations. The Company has incurred losses and negative cash flows from operations since its inception. As of September 30, 2023, the Company had an accumulated deficit of $1.2 billion, and for the nine months ended September 30, 2023, the Company incurred a net loss of $35.7 million and used $28.2 million of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company anticipates that its $68.5 million of existing cash, cash equivalents and investments at September 30, 2023 should be sufficient to fund operations for at least 12 months from the date of filing this Quarterly Report on Form 10-Q. The Company’s ability to raise additional funds will depend, among other factors, on financial, economic and market conditions, many of which are outside of its control and it may be unable to raise financing when needed, or on terms favorable to the Company. If necessary funds are not available, the Company will have to delay, reduce the scope of, or eliminate some of its development of emavusertib, potentially delaying the time to market for or preventing the marketing of any of its product candidates.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (a)Basis of Presentation and Principles of Consolidation The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These statements, however, are condensed and do not include all disclosures required by accounting principles generally accepted in the U.S. (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (“SEC”) on March 13, 2023. In the opinion of the management of the Company, the unaudited Condensed Consolidated Financial Statements contain all adjustments (all of which were considered normal and recurring) necessary for a fair statement of the Company’s financial position at September 30, 2023; the results of operations for the three and nine-month period ended September 30, 2023 and 2022; stockholders' equity for the three and nine-month period ended September 30, 2023 and 2022; and the cash flows for the nine-month period ended September 30, 2023 and 2022. The Condensed Consolidated Balance Sheet at December 31, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. On September 28, 2023, the Company effected a 1-for-20 reverse stock split of its common stock (“the Reverse Stock Split”). All references to shares of common stock outstanding, average number of shares outstanding and per share amounts in these condensed consolidated financial statements and notes to condensed consolidated financial statements have been restated to reflect the Reverse Stock Split on a retroactive basis. (b)Use of Estimates and Assumptions The preparation of the Company’s Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosure of revenue, expenses and certain assets and liabilities at the balance sheet date. Such estimates include the performance obligations under the Company’s collaboration agreements; the collectability of receivables; the carrying value of goodwill; and the value of certain investments and liabilities. Actual results may differ from such estimates. These interim results are not necessarily indicative of results to be expected for a full year or subsequent interim periods. (c) Cash Equivalents, Restricted Cash, and Investments Cash equivalents consist of highly liquid investments purchased with original maturities of three months or less. All other investments are marketable securities. The Company classified $0.5 million and $0.6 million of its cash as restricted cash as of September 30, 2023 and December 31, 2022, respectively. These amounts represent the security deposit associated with the Company’s Lexington, Massachusetts headquarters. The Company’s short-term investments are marketable debt securities with original maturities of greater than three months from the date of purchase, but less than twelve months from the balance sheet date. Marketable securities consist of commercial paper, corporate bonds and notes, and/or government obligations. All of the Company’s investments have been designated available-for-sale and are stated at fair value. Unrealized gains and losses on investments are included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. Realized gains and losses, dividends and interest income are included in other income (expense) in the period during which the securities are sold. Any premium or discount arising at purchase is amortized and/or accreted to interest income. (d)Leases The Company determines if an arrangement is a lease at contract inception. The Company made an accounting policy election to not recognize leases with an initial term of 12 months or less within its Consolidated Balance Sheets and to recognize those lease payments on a straight-line basis in its Consolidated Statements of Operations and Comprehensive Loss over the lease term. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As the Company’s lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate, which is based on rates that would be incurred to borrow on a collateralized basis over a term equal to the lease payments in a similar economic environment, in determining the present value of lease payments. The lease payment used to determine the operating lease asset may include lease incentives, stated rent increases and was recognized as an operating lease right-of-use asset in the Condensed Consolidated Balance Sheets. The Company’s lease agreements may include both lease and non-lease components, which may be accounted for as a single lease component. Variable payments included in the lease agreement are expensed as incurred. The Company’s operating lease is reflected in operating lease right-of-use asset and operating lease liability in the Condensed Consolidated Balance Sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term. (e)Other Assets Other assets consist of long-term prepayments and deposits. (f)Revenue Recognition The Company applies the revenue recognition guidance in accordance with Financial Accounting Standards Board (“FASB”) Codification Topic 606, Revenue from Contracts with Customers. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred and title has passed, the price is fixed or determinable, and collectability is reasonably assured. The Company recognizes royalty revenues related to Genentech’s and Roche’s sales of Erivedge. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and where the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). The Company expects to continue recognizing royalty revenue from Genentech’s sales of Erivedge in the U.S. and in other markets where Genentech and Roche successfully obtain marketing approval, if any (see Note 8, Research and Development Collaborations). However, a substantial portion of potential Erivedge royalties will be paid to the Purchasers pursuant to the Oberland Purchase Agreement (see Note 7, Liability Related to the Sale of Future Royalties). (g)Segment Reporting The Company has determined that it operates in a single reportable segment, which is the research and development of innovative drug candidates for the treatment of human cancer. (h)New Accounting Pronouncements The Company assesses the applicability and impact of any recent Accounting Standards Updates (“ASUs”) issued by the FASB. Based on this assessment, recently issued ASUs were either not applicable or expected to have an immaterial impact on the Company’s Condensed Consolidated Financial Statements.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments


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

Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of September 30, 2023:
Cash equivalents:
Money market funds	$	18,927	$	—	$	—	$	18,927
U.S. treasury securities and government agency obligations	—		1,471		—		1,471
Short-term investments:
Corporate debt securities and commercial paper	—		13,805		—		13,805
U.S. treasury securities and government agency obligations	—		30,225		—		30,225


Total	$	18,927	$	45,501	$	—	$	64,428


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of December 31, 2022:
Cash equivalents:
Money market funds	$	15,215	$	—	$	—	$	15,215
U.S. treasury securities and government agency obligations	—		2,998		—		2,998
Short-term investments:
Corporate debt securities and commercial paper	—		42,071		—		42,071
U.S. treasury securities and government agency obligations	—		23,894		—		23,894



Total	$	15,215	$	68,963	$	—	$	84,178

Investments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of September 30, 2023 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	13,807	$	—	$	(2)	$	13,805
U.S. treasury securities and government agency obligations	30,142		84		(1)		30,225

Total investments	$	43,949	$	84	$	(3)	$	44,030

Short-term investments have maturities ranging from one to twelve months with a weighted-average maturity of 0.3 years at September 30, 2023.

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of December 31, 2022 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	42,109	$	2	$	(40)	$	42,071
U.S. treasury securities and government agency obligations	24,042		—		(148)		23,894



Total investments	$	66,151	$	2	$	(188)	$	65,965

The weighted average maturity of short-term investments was 0.3 years at December 31, 2022.

Accrued Liabilities

9 Months Ended

Sep. 30, 2023

Other Liabilities Disclosure [Abstract]

Accrued Liabilities

Accrued LiabilitiesAccrued liabilities consisted of the following:


(in thousands)	September 30, 2023		December 31, 2022
Headcount related costs	$	3,157	$	3,152
Research and development costs	3,329		1,727
Professional and legal fees	685		762


Other	54		38
Total	$	7,225	$	5,679

Lease	9 Months Ended
Lease	Sep. 30, 2023
Leases [Abstract]
Lease	Lease The Company has a single lease for real estate, including laboratory and office space, and certain equipment, in Lexington, Massachusetts which commenced on May 1, 2020. A portion of the Company’s leased space is subject to an early termination option that becomes effective on the lease commencement date of a new lease for larger premises within the landlord’s commercial real estate portfolio (“New Lease”), and the Company may exercise its early termination option by providing the landlord with written notice of such election to terminate the lease agreement concurrently with the execution of the New Lease. The landlord has the option to early terminate the lease agreement by providing written notice to the Company by June 30, 2024. The Company expects the lease to end on December 31, 2025. As of September 30, 2023, the Company had an operating lease liability of $3.1 million and related right-of-use asset of $3.4 million related to its operating lease. As of December 31, 2022, the Company had an operating lease liability of $3.9 million and related right-of-use asset of $4.4 million related to its operating lease. The Company recorded lease cost of $0.4 million for the three months ended September 30, 2023 and 2022. The Company recorded lease cost of $1.2 million for the nine months ended September 30, 2023 and 2022. The Company paid $0.4 million and $1.1 million during the three and nine months ended September 30, 2023, respectively. The Company paid $0.4 million and $1.0 million during the three and nine months ended September 30, 2022, respectively. The discount rate associated with the Company’s right-of-use asset is 10%.

Liability Related to the Sale of Future Royalties

9 Months Ended

Sep. 30, 2023

Nonmonetary Transactions [Abstract]

The following table shows the activity with respect to the liability related to the sale of future royalties during the nine months ended September 30, 2023.


(in thousands)
Carrying value of liability related to the sale of future royalties at January 1, 2023	$	49,483
Other	(127)
Imputed interest expense	1,968
Less: payments to the Purchasers	(6,479)
Carrying value of liability related to the sale of future royalties at September 30, 2023	$	44,845

Research and Development Collaborations	9 Months Ended
Research and Development Collaborations	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Research and Development Collaborations	Research and Development Collaborations (a)Genentech In June 2003, the Company licensed its proprietary Hedgehog pathway antagonist technologies to Genentech for human therapeutic use. The primary focus of the collaborative research plan has been to develop molecules that inhibit the Hedgehog pathway for the treatment of various cancers. The collaboration is currently focused on the development of Erivedge, which is being commercialized by Genentech in the U.S. and by Genentech’s parent company, Roche, outside of the U.S. for the treatment of advanced BCC. In addition to these payments and pursuant to the collaboration agreement, the Company is entitled to a royalty on net sales of Erivedge that ranges from 5% to 7.5%. The royalty rate applicable to Erivedge may be decreased by 2% on a country-by-country basis in certain specified circumstances. The Company recognized $2.7 million and $2.8 million in royalty revenue under the Genentech collaboration during the three months ended September 30, 2023 and 2022, respectively. The Company recognized $7.2 million and $7.4 million in royalty revenue under the Genentech collaboration during the nine months ended September 30, 2023 and 2022, respectively. Cost of royalties comprises payments to university licensors and was immaterial for the three and nine months ended September 30, 2023 and 2022. The Company has accounts receivables from Genentech under this collaboration of $2.8 million and $3.0 million as of September 30, 2023 and December 31, 2022, respectively, in its Condensed Consolidated Balance Sheets. As previously discussed in Note 7, Liability Related to the Sale of Future Royalties, a significant portion of royalty revenues received from Genentech on net sales of Erivedge will be paid to the Purchasers pursuant to the Oberland Purchase Agreement. (b)Aurigene The Company is party to an exclusive collaboration agreement with Aurigene for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and selected precision oncology targets. Under the collaboration agreement, Aurigene granted the Company an option to obtain exclusive, royalty-bearing licenses to relevant Aurigene technology to develop, manufacture and commercialize products containing certain of such compounds anywhere in the world, except for India and Russia, which are territories retained by Aurigene. Additionally, Aurigene retains the rights to develop and commercialize CA-170 in Asia, and the Company is entitled to receive royalty payments on potential future sales of CA-170 in Asia at percentage rates ranging from the high single digits up to 10% subject to specified reductions. As of September 30, 2023, the Company has exercised its option to license the following four programs under the collaboration: 1.IRAK4 Program - a precision oncology program of small molecule inhibitors of IRAK4. The development candidate is emavusertib (CA-4948). 2.PD1/VISTA Program - an immuno-oncology program of small molecule antagonists of PD1 and VISTA immune checkpoint pathways. The development candidate is CA-170. 3.PD1/TIM3 Program - an immuno-oncology program of small molecule antagonists of PD1 and TIM3 immune checkpoint pathways. The development candidate is CA-327. 4.The Company exercised its option to license a fourth program, which is an immuno-oncology program. For each of the licensed programs (as described above) the Company is obligated to use commercially reasonable efforts to develop, obtain regulatory approval for, and commercialize at least one product in each of the U.S., specified countries in the European Union and Japan, and Aurigene is obligated to use commercially reasonable efforts to perform its obligations under the development plan for such licensed program in an expeditious manner. For each of the IRAK4, PD1/VISTA, PD1/TIM3 programs, and the fourth immuno-oncology program, the Company has remaining unpaid or unwaived payment obligations of $42.5 million per program, related to regulatory approval and commercial sales milestones, plus specified additional payments for approvals for additional indications, if any. No obligations have been met or are probable and as such no amounts are accrued as of September 30, 2023. (c)ImmuNext The Company is party to an option and license agreement with ImmuNext (the “ImmuNext Agreement”). Under the terms of the ImmuNext Agreement, the Company agreed to engage in a collaborative effort with ImmuNext, and to conduct a Phase 1 clinical trial of CI-8993. In exchange, ImmuNext granted the Company an exclusive option, exercisable until the earlier of (a) January 2024 or (b) 90 days after database lock for the first Phase 1 trial in which the endpoints are satisfied, to obtain an exclusive, worldwide license to develop and commercialize certain VISTA antagonizing compounds and products containing these compounds in the field of oncology. The Company is not planning to exercise its option and expects the rights to the VISTA antagonizing compounds to revert to ImmuNext in January 2024.

Common Stock	9 Months Ended
Common Stock	Sep. 30, 2023
Equity [Abstract]
Common Stock	Common Stock All common share amounts and per share amounts have been adjusted to reflect the Reverse Stock Split. Charter Amendments In September 2023, the Company's stockholders approved an increase to the number of authorized shares of its common stock from 11,390,625 shares to 22,781,250 shares. 2021 Sales Agreement with Cantor Fitzgerald & Co. and JonesTrading Institutional Services LLC The Company is party to a sales agreement (the “2021 Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) and JonesTrading Institutional Services LLC (“JonesTrading”) to sell from time to time up to $100.0 million of the Company’s common stock through an “at the market offering” program under which Cantor and JonesTrading act as sales agents. Subject to the terms and conditions of the 2021 Sales Agreement, Cantor and JonesTrading can sell the common stock by any method deemed to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended. Pursuant to the terms of the 2021 Sales Agreement, the aggregate compensation payable to each of Cantor and JonesTrading is 3% of the gross proceeds from sales of the common stock sold by Cantor or JonesTrading, as applicable. The Company did not sell any shares of common stock under the 2021 Sales Agreement during the three and nine months ended September 30, 2023. As of September 30, 2023, $93.7 million remained available for sale under the 2021 Sales Agreement. Registered Direct Offering In July 2023, the Company sold and issued, in a registered direct offering (the “July Registered Direct”) to certain institutional investors, an aggregate of 920,488 shares of common stock at a purchase price per share of $16.40 per share for net proceeds of approximately $13.8 million.

Stock Plans and Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Plans and Stock-Based Compensation

The Fourth Amended and Restated 2010 Stock Incentive Plan

Inducement Awards

Stock Options

A summary of stock option activity under the 2010 Plan and Inducement Awards are summarized as follows:


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, December 31, 2022	683,666	$	64.72	6.51
Granted	273,202	14.27
Exercised	(515)	13.40
Canceled/Forfeited	(115,987)	66.10
Outstanding, September 30, 2023	840,366	$	48.16	7.34	$	—
Exercisable at September 30, 2023	434,527	$	62.90	5.94	$	—
Vested and unvested expected to vest at September 30, 2023	840,366	$	48.16	7.34	$	—


	Nine Months Ended September 30,
	2023	2022
Expected term (years)	5.5	5.5


Risk free interest rate	3.5% - 3.6%	1.4% - 2.9%
Expected volatility	115% - 116%	110% - 114%
Expected dividends	None	None

Restricted Stock Awards

The following table presents a summary of unvested RSAs under the 2010 Plan as of September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, December 31, 2022	—	$	—
Awarded	117,000	18.2
Vested	—	—
Forfeited	(2,500)	—
Unvested, September 30, 2023	114,500	$	18.2

compensation costs related to RSAs, which are expected to be recognized as expense over a remaining weighted average period of 1.61 years.

Amended and Restated 2010 Employee Stock Purchase Plan

Stock-Based Compensation Expense


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Research and development expenses	$	776	$	505	$	2,059	$	2,084
General and administrative expenses	857		819		2,393		2,924
Total stock-based compensation expense	$	1,633	$	1,324	$	4,452	$	5,008

Loss Per Common Share	9 Months Ended
Loss Per Common Share	Sep. 30, 2023
Earnings Per Share [Abstract]
Loss Per Common Share	Loss Per Common ShareBasic and diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. All common share amounts and per share amounts have been adjusted to reflect the Reverse Stock Split. Diluted net loss per common share is the same as basic net loss per common share for the three and nine months ended September 30, 2023 and 2022, because the effect of the potential common stock equivalents would be antidilutive due to the Company’s net loss position for these periods. Antidilutive securities consist of stock options outstanding of 840,366 and 784,323 as of September 30, 2023 and 2022, respectively and unvested restricted stock awards of 114,500 as of September 30, 2023.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of ConsolidationThe accompanying Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These statements, however, are condensed and do not include all disclosures required by accounting principles generally accepted in the U.S. (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (“SEC”) on March 13, 2023.

Use of Estimates and Assumptions

Use of Estimates and AssumptionsThe preparation of the Company’s Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosure of revenue, expenses and certain assets and liabilities at the balance sheet date. Such estimates include the performance obligations under the Company’s collaboration agreements; the collectability of receivables; the carrying value of goodwill; and the value of certain investments and liabilities. Actual results may differ from such estimates. These interim results are not necessarily indicative of results to be expected for a full year or subsequent interim periods.

Cash Equivalents, Restricted Cash, and Investments

Cash equivalents consist of highly liquid investments purchased with original maturities of three months or less. All other investments are marketable securities.

Leases

The lease payment used to determine the operating lease asset may include lease incentives, stated rent increases and was recognized as an operating lease right-of-use asset in the Condensed Consolidated Balance Sheets. The Company’s lease agreements may include both lease and non-lease components, which may be accounted for as a single lease component. Variable payments included in the lease agreement are expensed as incurred. The Company’s operating lease is reflected in operating lease right-of-use asset and operating lease liability in the Condensed Consolidated Balance Sheets. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Other Assets

Other AssetsOther assets consist of long-term prepayments and deposits.

Revenue Recognition

Segment Reporting

Segment ReportingThe Company has determined that it operates in a single reportable segment, which is the research and development of innovative drug candidates for the treatment of human cancer.

New Accounting Pronouncements

New Accounting PronouncementsThe Company assesses the applicability and impact of any recent Accounting Standards Updates (“ASUs”) issued by the FASB. Based on this assessment, recently issued ASUs were either not applicable or expected to have an immaterial impact on the Company’s Condensed Consolidated Financial Statements.

Fair Value of Financial Instruments


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

Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of September 30, 2023:
Cash equivalents:
Money market funds	$	18,927	$	—	$	—	$	18,927
U.S. treasury securities and government agency obligations	—		1,471		—		1,471
Short-term investments:
Corporate debt securities and commercial paper	—		13,805		—		13,805
U.S. treasury securities and government agency obligations	—		30,225		—		30,225


Total	$	18,927	$	45,501	$	—	$	64,428


(in thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Fair Value
As of December 31, 2022:
Cash equivalents:
Money market funds	$	15,215	$	—	$	—	$	15,215
U.S. treasury securities and government agency obligations	—		2,998		—		2,998
Short-term investments:
Corporate debt securities and commercial paper	—		42,071		—		42,071
U.S. treasury securities and government agency obligations	—		23,894		—		23,894



Total	$	15,215	$	68,963	$	—	$	84,178

Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Unrealized Gains and Losses and Fair Value of Investments Available-for-Sale

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of September 30, 2023 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	13,807	$	—	$	(2)	$	13,805
U.S. treasury securities and government agency obligations	30,142		84		(1)		30,225

Total investments	$	43,949	$	84	$	(3)	$	44,030

The amortized cost, including interest receivable, unrealized gains and losses and fair value of investments available-for-sale as of December 31, 2022 are as follows:


(in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
Short-term investments:
Corporate debt securities and commercial paper	$	42,109	$	2	$	(40)	$	42,071
U.S. treasury securities and government agency obligations	24,042		—		(148)		23,894



Total investments	$	66,151	$	2	$	(188)	$	65,965

Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Other Liabilities Disclosure [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following:


(in thousands)	September 30, 2023		December 31, 2022
Headcount related costs	$	3,157	$	3,152
Research and development costs	3,329		1,727
Professional and legal fees	685		762


Other	54		38
Total	$	7,225	$	5,679

Liability Related to the Sale of Future Royalties (Tables)

9 Months Ended

Sep. 30, 2023

Nonmonetary Transactions [Abstract]

Schedule of Liability Related to the Sale of Future Royalties

The following table shows the activity with respect to the liability related to the sale of future royalties during the nine months ended September 30, 2023.


(in thousands)
Carrying value of liability related to the sale of future royalties at January 1, 2023	$	49,483
Other	(127)
Imputed interest expense	1,968
Less: payments to the Purchasers	(6,479)
Carrying value of liability related to the sale of future royalties at September 30, 2023	$	44,845

Stock Plans and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option

A summary of stock option activity under the 2010 Plan and Inducement Awards are summarized as follows:


	Number of Shares	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding, December 31, 2022	683,666	$	64.72	6.51
Granted	273,202	14.27
Exercised	(515)	13.40
Canceled/Forfeited	(115,987)	66.10
Outstanding, September 30, 2023	840,366	$	48.16	7.34	$	—
Exercisable at September 30, 2023	434,527	$	62.90	5.94	$	—
Vested and unvested expected to vest at September 30, 2023	840,366	$	48.16	7.34	$	—


	Nine Months Ended September 30,
	2023	2022
Expected term (years)	5.5	5.5


Risk free interest rate	3.5% - 3.6%	1.4% - 2.9%
Expected volatility	115% - 116%	110% - 114%
Expected dividends	None	None

Schedule of Unvested Restricted Stock Shares Activity

The following table presents a summary of unvested RSAs under the 2010 Plan as of September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, December 31, 2022	—	$	—
Awarded	117,000	18.2
Vested	—	—
Forfeited	(2,500)	—
Unvested, September 30, 2023	114,500	$	18.2

Schedule of Stock-Based Compensation Expense


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Research and development expenses	$	776	$	505	$	2,059	$	2,084
General and administrative expenses	857		819		2,393		2,924
Total stock-based compensation expense	$	1,633	$	1,324	$	4,452	$	5,008

Nature of Business (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Nature of Business (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (1,184,698)						$ (1,184,698)		$ (1,148,997)
Net loss	(12,181)	$ (11,961)	$ (11,559)	$ (13,294)	$ (15,940)	$ (16,109)	(35,701)	$ (45,343)
Cash used in operations							(28,248)	$ (42,069)
Cash, cash equivalents, and investments	$ 68,500						$ 68,500

Summary of Significant Accounting Policies (Details) $ in Millions		9 Months Ended
	Sep. 28, 2023	Sep. 30, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stockholders' equity, reverse stock split	0.05
Restricted cash \| $		$ 0.5	$ 0.6
Number of reportable segments \| segment		1

Fair Value of Financial Instruments - (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-term investments:
Total	$ 64,428	$ 84,178
Corporate debt securities and commercial paper
Short-term investments:
Short-term investments:	13,805	42,071
U.S. treasury securities and government agency obligations
Short-term investments:
Short-term investments:	30,225	23,894
Money market funds
Cash equivalents:
Cash Equivalents	18,927	15,215
U.S. treasury securities and government agency obligations
Cash equivalents:
Cash Equivalents	1,471	2,998
Quoted Prices in Active Markets (Level 1)
Short-term investments:
Total	18,927	15,215
Quoted Prices in Active Markets (Level 1) \| Corporate debt securities and commercial paper
Short-term investments:
Short-term investments:	0	0
Quoted Prices in Active Markets (Level 1) \| U.S. treasury securities and government agency obligations
Short-term investments:
Short-term investments:	0	0
Quoted Prices in Active Markets (Level 1) \| Money market funds
Cash equivalents:
Cash Equivalents	18,927	15,215
Quoted Prices in Active Markets (Level 1) \| U.S. treasury securities and government agency obligations
Cash equivalents:
Cash Equivalents	0	0
Other Observable Inputs (Level 2)
Short-term investments:
Total	45,501	68,963
Other Observable Inputs (Level 2) \| Corporate debt securities and commercial paper
Short-term investments:
Short-term investments:	13,805	42,071
Other Observable Inputs (Level 2) \| U.S. treasury securities and government agency obligations
Short-term investments:
Short-term investments:	30,225	23,894
Other Observable Inputs (Level 2) \| Money market funds
Cash equivalents:
Cash Equivalents	0	0
Other Observable Inputs (Level 2) \| U.S. treasury securities and government agency obligations
Cash equivalents:
Cash Equivalents	1,471	2,998
Unobservable Inputs (Level 3)
Short-term investments:
Total	0	0
Unobservable Inputs (Level 3) \| Corporate debt securities and commercial paper
Short-term investments:
Short-term investments:	0	0
Unobservable Inputs (Level 3) \| U.S. treasury securities and government agency obligations
Short-term investments:
Short-term investments:	0	0
Unobservable Inputs (Level 3) \| Money market funds
Cash equivalents:
Cash Equivalents	0	0
Unobservable Inputs (Level 3) \| U.S. treasury securities and government agency obligations
Cash equivalents:
Cash Equivalents	$ 0	$ 0

Investments - Schedule of Amortized Cost of Unrealized Gains and Losses and Fair Value of Investments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 43,949,000	$ 66,151,000
Unrealized Gain	84,000	2,000
Unrealized Loss	(3,000)	(188,000)
Fair Value	$ 44,030,000	65,965,000
Weighted-average maturity of short-term investments	3 months 18 days
Debt securities, available-for-sale, credit loss	$ 0		$ 0
Fair value of available-for-sale investments in a continuous unrealized loss position for 12 months or longer		$ 27,400,000
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Weighted-average maturity of short-term investments		3 months 18 days
Short-term investments \| Minimum
Debt Securities, Available-for-sale [Line Items]
Range of maturities	1 month
Short-term investments \| Maximum
Debt Securities, Available-for-sale [Line Items]
Range of maturities	12 months
Corporate debt securities and commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 13,807,000	$ 42,109,000
Unrealized Gain	0	2,000
Unrealized Loss	(2,000)	(40,000)
Fair Value	13,805,000	42,071,000
U.S. treasury securities and government agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	30,142,000	24,042,000
Unrealized Gain	84,000	0
Unrealized Loss	(1,000)	(148,000)
Fair Value	$ 30,225,000	$ 23,894,000

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Headcount related costs	$ 3,157	$ 3,152
Research and development costs	3,329	1,727
Professional and legal fees	685	762
Other	54	38
Total	$ 7,225	$ 5,679

Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Lease (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Leases [Abstract]
Operating lease, liability	$ 3,100		$ 3,100		$ 3,900
Operating lease right-of-use asset	3,402		3,402		$ 4,401
Operating lease, expense	400	$ 400	1,200	$ 1,200
Operating lease payments	$ 400	$ 400	$ 1,100	$ 1,000
Weighted average discount rate	10.00%		10.00%

Liability Related to the Sale of Future Royalties - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2019	Sep. 30, 2023
Nonmonetary Transaction [Line Items]
Non-cash interest rate	6.10%
Transaction fees	$ 0.6
Oberland Capital
Nonmonetary Transaction [Line Items]
Transaction expenses	65.0
Purchaser default option period		180 days
Percentage of royalty purchase agreement		250.00%
Estimated price amount		$ 63.0
Oberland Capital \| Aggregate Net Royalties Prior to 2027
Nonmonetary Transaction [Line Items]
Cash proceeds from royalty purchase agreement	53.5
Royalty amount threshold	$ 117.0

Liability Related to the Sale of Future Royalties - Schedule of Liability Related to the Sale of Future Royalties (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Nonmonetary Transaction [Roll Forward]
Carrying value of liability related to the sale of future royalties at January 1, 2023	$ 49,483
Other	(127)
Imputed interest expense	1,968
Less: payments to the Purchasers	(6,479)
Carrying value of liability related to the sale of future royalties at September 30, 2023	$ 44,845

Research and Development Collaborations (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2003	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) program	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Feb. 29, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues, net		$ 2,833	$ 2,825	$ 7,327	$ 7,275
Accounts receivable		2,848		$ 2,848		$ 2,975
Number of program licensed \| program				4
Genentech, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of royalty rate decrease	2.00%
Accounts receivable		2,800		$ 2,800		$ 3,000
Genentech, Inc. \| Royalties
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues, net		$ 2,700	$ 2,800	7,200	$ 7,400
Genentech, Inc. \| Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of royalty on net sales	5.00%
Genentech, Inc. \| Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percentage of royalty on net sales	7.50%
Aurigene \| IRAK4, PD1/VISTA, and PD1/TIM3 Programs
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Waived payment of milestone and other payments (up to)				$ 42,500
Aurigene \| Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty fees receivable (as a percent)							10.00%

Common Stock (Details) - USD ($)	1 Months Ended	9 Months Ended
Common Stock (Details) - USD ($)	Jul. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock authorized (in shares)		22,781,250		11,390,625
Net proceeds		$ 0	$ 5,663,000
Registered Direct Offering
Class of Stock [Line Items]
Number of shares sold (in shares)	920,488
Sale price per share (in dollars per share)	$ 16.40
Net proceeds	$ 13,800,000
Common Stock \| Cantor Fitzgerald & Co
Class of Stock [Line Items]
Common stock authorized (up to)					$ 100,000,000
Compensation fee					3.00%
Sale of stock remaining authorized amount		$ 93,700,000
Minimum
Class of Stock [Line Items]
Common stock authorized (in shares)		11,390,625
Maximum
Class of Stock [Line Items]
Common stock authorized (in shares)		22,781,250

Stock Plans and Stock-Based Compensation - Narrative (Details)	1 Months Ended	3 Months Ended	9 Months Ended
	May 31, 2021 shares	Sep. 30, 2023 USD ($) shares	Sep. 30, 2023 USD ($) plan purchase_period $ / shares shares	Sep. 30, 2022 USD ($) $ / shares	Dec. 31, 2022 shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of shareholder-approved, share-based compensation plans \| plan			2
Granted (in shares)			273,202
Weighted average grant-date fair values of stock options (in dollars per share) \| $ / shares			$ 12.00	$ 43.60
Unrecognized compensation cost, net of estimated forfeitures \| $		$ 9,400,000	$ 9,400,000
Intrinsic values of employee stock options exercised \| $				$ 0
Officer
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Awarded (in shares)			31,772
Amended and Restated 2010 Stock Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares authorized (in shares)	1,159,500
Number of shares under award to be removed from share pool			274,661
2010 Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Granted (in shares)			220,180
2010 Plan \| Non-Employee Directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Granted (in shares)			21,250
Employee Stock Purchase Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Issuance of stock under ESPP (in shares)		0	19,345
Stock Options, or Stock Appreciation Rights \| Amended and Restated 2010 Stock Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Period of time options are exercisable	10 years
Shares removed from pool (in shares per share)	1
Restricted Stock, RSUs, Other Stock-Based Awards, or Performance Awards \| Amended and Restated 2010 Stock Incentive Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares removed from pool (in shares per share)	1.3
Price charged for award based on fair market value percentage (less than)	100.00%
Stock Options
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period (years)			4 years
Unrecognized compensation cost, weighted average period for recognition			2 years 7 months 24 days
Stock Options \| 2010 Plan \| Non-Employee Directors
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Vesting period (years)			1 year
Stock Options \| 2010 Plan \| Award Vesting After First Year
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Percentage of vested shares which are exercisable under stock option			25.00%
Stock Options \| 2010 Plan \| Quarterly Vesting After First Year
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Percentage of vested shares which are exercisable under stock option			6.25%
Restricted Stock
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Awarded (in shares)			117,000
Unrecognized compensation cost, weighted average period for recognition			1 year 7 months 9 days
Outstanding shares (in shares)		114,500	114,500		0
Exercise price (in dollars per share) \| $ / shares			$ 18.20
Aggregate fair value of restricted stock \| $		$ 2,100,000	$ 2,100,000
Compensation expense related to employee and director stock option grants \| $		$ 1,700,000	$ 1,700,000
Restricted Stock \| Tranche One
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Percentage of vested shares which are exercisable under stock option			50.00%
Restricted Stock \| Tranche Two
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Percentage of vested shares which are exercisable under stock option			50.00%
Restricted Stock \| 2010 Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Aggregate amount of granted restricted stock awards, or RSAs			117,000
Employee Stock \| Employee Stock Purchase Plan
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares authorized (in shares)		100,000	100,000
Price charged for award based on fair market value percentage (less than)			85.00%
Enrollment period			2 years
Number of purchase periods per year \| purchase_period			4
Term of purchase periods			6 months
Shares available for future purchase under ESPP (in shares)		39,403	39,403

Stock Plans and Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Number of Shares
Beginning balance (in shares)	683,666
Granted (in shares)	273,202
Exercised (in shares)	(515)
Canceled/Forfeited (in shares)	(115,987)
Ending balance (in shares)	840,366	683,666
Exercisable at end of period (in shares)	434,527
Vested and unvested expected to vest at end of period (in shares)	840,366
Weighted Average Exercise Price per Share
Beginning balance (in dollars per share)	$ 64.72
Granted (in dollars per share)	14.27
Exercised (in dollars per share)	13.40
Canceled/Forfeited (in dollars per share)	66.10
Ending balance (in dollars per share)	48.16	$ 64.72
Exercisable at end of period (in dollars per share)	62.90
Vested and unvested expected to vest at end of period (in dollars per share)	$ 48.16
Weighted Average Remaining Contractual Life
Outstanding at end of period	7 years 4 months 2 days	6 years 6 months 3 days
Exercisable at end of period	5 years 11 months 8 days
Vested and unvested expected to vest at end of period	7 years 4 months 2 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 0
Exercisable at end of period	0
Vested and unvested expected to vest at end of period	$ 0

Stock Plans and Stock-Based Compensation - Schedule of Estimated Assumptions Under the Black-scholes Option Pricing Model (Details)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Expected term	5 years 6 months	5 years 6 months
Risk -free Interest rate (minimum)	3.50%	1.40%
Risk -free Interest rate (maximum)	3.60%	2.90%
Expected volatility (minimum)	115.00%	110.00%
Expected volatility (maximum)	116.00%	114.00%

Stock Plans and Stock Based Compensation - Schedule of Unvested Restricted Stock Shares Activity (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	0
Awarded (in shares) \| shares	117,000
Vested (in shares) \| shares	0
Forfeited (in shares) \| shares	(2,500)
Ending balance (in shares) \| shares	114,500
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) \| $ / shares	$ 0
Awarded (in dollars per share) \| $ / shares	18.20
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Ending balance (in dollars per share) \| $ / shares	$ 18.2

Stock Plans and Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Total stock-based compensation expense	$ 1,633,000	$ 1,324	$ 4,452,000	$ 5,008
Research and development expenses
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Total stock-based compensation expense	776,000	505	2,059,000	2,084
General and administrative expenses
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Total stock-based compensation expense	$ 857,000	$ 819	$ 2,393,000	$ 2,924

Loss Per Common Share (Details) - shares	9 Months Ended
Loss Per Common Share (Details) - shares	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding shares (in shares)	114,500		0
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	840,366	784,323

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