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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 June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 001-36310
_____________________ 
CONCERT PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
 
Delaware20-4839882
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
65 Hayden Avenue, Suite 3000N 02421
Lexington, Massachusetts (Zip Code)
(Address of principal executive offices)
(781860-0045
(Registrant’s telephone number, including area code) 

(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareCNCENasdaq Global 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 filerAccelerated filer
Non-accelerated filerSmaller 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  
The number of shares outstanding of the registrant’s common stock as of July 31, 2020: 29,678,072



TABLE OF CONTENTS
 
  Page No.
Item 1.
Item 2.
Item 3.
Item 4.
Item 1A.
Item 6.
3



REFERENCES TO CONCERT
Throughout this Quarterly Report on Form 10-Q, “Concert,” “the Company,” “we,” “us” and “our,” except where the context requires otherwise, refer to Concert Pharmaceuticals, Inc. and its consolidated subsidiary, and “our board of directors” refers to the board of directors of Concert Pharmaceuticals, Inc.

FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:
ongoing and planned clinical trials for our product candidates, whether conducted by us or by our collaborators, including the timing of initiation, enrollment and completion of these trials and of the anticipated results;
our plans to identify, develop and commercialize novel small molecule drugs based on our knowledge of deuterium chemistry;
our plans to enter into collaborations for the development and commercialization of product candidates;
our expected benefits from our current and any future collaboration, development or license arrangements;
our ability to receive research and development funding and achieve anticipated milestones under our collaborations;
our expectations regarding any future milestone payments we may receive as part of our asset purchase agreement with Vertex Pharmaceuticals, Inc. with respect to VX-561 and payments from our other collaboration and license arrangements;
the timing of and our ability to obtain and maintain marketing approvals for our product candidates;
the rate and degree of market acceptance and clinical utilization of our products;
our commercialization, marketing and manufacturing capabilities and strategy;
our intellectual property position and strategy;
the outcome of our inter partes review proceeding regarding U.S. Patent No. 9,249,149 covering CTP-543;
our freedom to operate with respect to third-party patents;
our expectations regarding our DCE Platform® and the potential advantages of our product candidates;
our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;
risks associated with the COVID-19 pandemic, which may adversely impact our business, clinical trials and supply chain;
developments relating to our competitors and our industry; and
the impact of government laws and regulations.
We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in Part II, Item 1A. Risk Factors, that could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, collaborations or investments that we may make.
You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to this Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from
4


what we expect. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
5


PART I. FINANCIAL INFORMATION
 
Item 1.Financial Statements.

CONCERT PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Amounts in thousands, except share and per share data)
June 30,December 31,
 20202019
Assets
Current assets:
Cash and cash equivalents$27,094  $53,043  
Investments, available for sale117,623  53,395  
Marketable equity securities2,688  5,375  
Interest receivable244  260  
Deferred offering costs43  143  
Accounts receivable50  72  
Income taxes receivable, current2,446    
Prepaid expenses and other current assets4,397  4,567  
Total current assets154,585  116,855  
Property and equipment, net7,070  7,753  
Restricted cash1,157  1,157  
Other assets69  96  
Income taxes receivable  2,358  
Operating lease right-of-use assets, long-term9,118  9,252  
Total assets$171,999  $137,471  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$352  $881  
Accrued expenses and other liabilities7,022  8,336  
Deferred revenue, current portion1,413  7,783  
Lease liability, current portion831  268  
Total current liabilities9,618  17,268  
Deferred revenue, net of current portion2,750  2,750  
Lease liability, net of current portion15,546  15,996  
Total liabilities27,914  36,014  
Commitments (Note 11)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and December 31, 2019
    
Common stock, $0.001 par value per share; 100,000,000 shares authorized; 29,878,673 and 24,065,676 shares issued and 29,678,072 and 23,865,075 shares outstanding as of June 30, 2020 and December 31, 2019, respectively
29  24  
Additional paid-in capital372,029  296,145  
Accumulated other comprehensive gain (loss)176  (31) 
Accumulated deficit(228,149) (194,681) 
Total stockholders’ equity144,085  101,457  
Total liabilities and stockholders’ equity$171,999  $137,471  
See accompanying notes.
6


CONCERT PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
(Amounts in thousands, except per share data)
 Three Months Ended
June 30,
Six Months Ended 
June 30,
 2020201920202019
Revenue:
License and research and development revenue6,387  49  6,394  1,054  
Operating expenses:
Research and development14,788  14,496  28,774  30,286  
General and administrative4,731  4,978  9,403  10,587  
Total operating expenses19,519  19,474  38,177  40,873  
Loss from operations(13,132) (19,425) (31,783) (39,819) 
Investment income355  883  918  1,750  
Unrealized loss on marketable equity securities(299) (126) (2,688) (2,425) 
Loss before income taxes(13,076) (18,668) (33,553) (40,494) 
Income tax benefit(85)   (85)   
Net loss$(12,991) $(18,668) $(33,468) $(40,494) 
Other comprehensive income:
Unrealized (loss) gain on investments, available for sale(316) 44  207  141  
Comprehensive loss$(13,307) $(18,624) $(33,261) $(40,353) 
Net loss per share applicable to common stockholders - basic and diluted$(0.41) $(0.78) $(1.11) $(1.71) 
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted31,455  23,790  30,283  23,650  
See accompanying notes.
7


CONCERT PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
Six Months Ended June 30, 2020
 Common StockAdditional paid-in capitalAccumulated other comprehensive incomeAccumulated deficitTotal stockholders’ equity
 IssuedIn TreasuryAmount
 (in thousands)
Balance at December 31, 201924,066  200  $24  $296,145  $(31) $(194,681) $101,457  
Exercise of stock options51  —  —  435  —  —  435  
Unrealized gain on short-term investments—  —  —  —  523  —  523  
Stock-based compensation expense—  —  —  2,477  —  —  2,477  
Sale of common stock and pre-funded warrants, net of underwriters' discount and costs5,735  —  5  70,059  —  —  70,064  
Net loss—  —  —  —  —  (20,477) (20,477) 
Balance at March 31, 202029,852  200  $29  $369,116  $492  $(215,158) $154,479  
Exercise of stock options27  —  —  109  —  —  109  
Unrealized loss on short-term investments—  —  —  —  (316) —  (316) 
Stock-based compensation expense—  —  —  2,804  —  —  2,804  
Net loss—  —  —  —  —  (12,991) (12,991) 
Balance at June 30, 202029,879  200  $29  $372,029  $176  $(228,149) $144,085  
8


CONCERT PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
Six Months Ended June 30, 2019
 Common StockAdditional paid-in capitalAccumulated other comprehensive incomeAccumulated deficitTotal stockholders’ equity
 IssuedIn TreasuryAmount
 (in thousands)
Balance at December 31, 201823,519  81  $23  $284,369  $(137) $(116,515) $167,740  
Exercise of stock options154  47  —  805  —  —  805  
Release of restricted stock units202  61  —  (741) —  —  (741) 
Unrealized gain on short-term investments—  —  —  —  97  —  97  
Stock-based compensation expense—  —  —  2,929  —  —  2,929  
Exercise of stock warrants71  —  —  1,000  —  —  1,000  
Offering expenses incurred—  —  —  (206) —  —  (206) 
Net loss—  —  —  —  —  (21,826) (21,826) 
Balance at March 31, 201923,946  189  $23  $288,156  $(40) $(138,341) $149,798  
Exercise of stock options40  —  —  165  —  —  165  
Unrealized gain on short-term investments—  —  —  —  —  44  —  44  
Stock-based compensation expense—  —  —  2,362  —  —  2,362  
Net loss—  —  —  —  —  (18,668) (18,668) 
Balance at June 30, 201923,986  189  $23  $290,683  $4  $(157,009) $133,701  
See accompanying notes.
9


CONCERT PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
 Six Months Ended
June 30,
 20202019
Operating activities
Net loss$(33,468) (40,494) 
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization805  849  
Stock-based compensation expense5,281  5,291  
Accretion of premiums and discounts on investments(114) (606) 
Unrealized loss on marketable equity securities2,688  2,425  
Loss on disposal of asset4  4  
Non-cash lease expense133  102  
Changes in operating assets and liabilities:
Accounts receivable22  (23) 
Deferred offering costs(30)   
Interest receivable16  120  
Prepaid expenses and other current assets170  (365) 
Contract asset  16,000  
Other assets27  (20) 
Accounts payable(529) (508) 
Accrued expenses and other liabilities(1,184) (83) 
Income taxes receivable(88) (36) 
Income taxes payable  (390) 
Deferred revenue(6,370)   
Operating lease liability113  (291) 
Net cash used in operating activities(32,524) (18,025) 
Investing activities
Purchases of property and equipment(126) (472) 
Purchases of investments(145,152) (49,208) 
Maturities of investments81,245  92,576  
Net cash (used in) provided by investing activities(64,033) 42,896  
Financing activities
Proceeds from exercises of stock options544  970  
Proceeds from exercise of warrants  1,000  
Repurchase of common stock pursuant to share surrender  (741) 
Proceeds from common stock and pre-funded warrants sold, net of underwriters' discount and costs70,064  (156) 
Net cash provided by financing activities70,608  1,073  
Net (decrease) increase in cash and cash equivalents and restricted cash(25,949) 25,944  
Cash, cash equivalents and restricted cash at beginning of period54,200  18,927  
Cash, cash equivalents and restricted cash at end of period$28,251  $44,871  
Supplemental cash flow information:
Cash paid for income taxes$  $444  
Purchases of property and equipment unpaid at period end$  $24  
Public offering costs unpaid at period end$13  $50  
Cash paid included in measurement of lease liabilities$965  $1,388  
Pre-funded stock warrants issued$16,736  $  
See accompanying notes.
10

CONCERT PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1. Nature of Business

Concert Pharmaceuticals, Inc., or the Company, was incorporated on April 12, 2006 as a Delaware corporation and has its operations based in Lexington, Massachusetts. The Company is a clinical stage biopharmaceutical company that is developing small molecule drugs that it discovered through the application of its deuterated chemical entity platform, or DCE Platform®. Selective incorporation of deuterium into known molecules has the potential, on a case-by-case basis, to provide better pharmacokinetic or metabolic properties, thereby enhancing their clinical safety, tolerability or efficacy. The Company’s pipeline consists of clinical stage candidates targeting autoimmune and central nervous system, or CNS, disorders, and a number of preclinical compounds that it is currently assessing.
The Company had cash and cash equivalents and investments of $144.7 million as of June 30, 2020. The Company believes that its cash and cash equivalents and investments as of June 30, 2020 will be sufficient to allow the Company to fund its current operating plan for at least the next twelve months from the date of issuance of the financial statements. The Company may pursue additional cash resources through public or private financings, by establishing collaborations with or licensing its technology to other companies and through other arrangements.
Since its inception, the Company has generated an accumulated deficit of $228.1 million through June 30, 2020. The Company's operating results may fluctuate significantly from year to year, depending on the timing and magnitude of clinical trial and other development activities under its current development programs. Substantially all of the Company's net losses have resulted from costs incurred in connection with its research and development programs and from general and administrative costs associated with its operations. The Company expects to continue to incur significant expenses and increasing operating losses for at least the next several years.

The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, risks of failure or unsatisfactory results of nonclinical studies and clinical trials, the need to obtain additional financing to fund the future development of its pipeline, the need to obtain marketing approval for its product candidates, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products.

Unless otherwise indicated, all amounts in the following tables are in thousands except share and per share amounts.

2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals and revisions of estimates, considered necessary for a fair presentation of the condensed consolidated financial statements have been included. Interim results for the six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020 or any other future period.
The accompanying condensed consolidated financial statements reflect the accounts of the Company and its subsidiaries. All intercompany transactions between the Company and its subsidiaries have been eliminated. Management has determined that the Company operates in one segment: the development of pharmaceutical products on its own behalf or in collaboration with others. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the Securities and Exchange Commission, or SEC, on February 27, 2020.
Use of Estimates and Summary of Significant Accounting Policies

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenue, expenses and the disclosure of contingent assets and liabilities and the Company's ability to continue as a going concern. In preparing the consolidated financial statements, management used estimates in the following areas, among others: revenue recognition; prepaid and accrued research and development expenses; stock-based compensation expense; and the
11

CONCERT PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

evaluation of the existence of conditions and events that raise substantial doubt regarding the Company’s ability to continue as a going concern. Actual results could differ from those estimates.
During the six months ended June 30, 2020, there have been no material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2018-15, Intangible-Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This standard aligns the requirements for capitalizing implementation costs in a cloud computing arrangement service contract with the requirements for capitalizing implementation costs incurred for internal-use software. The new guidance also prescribes the balance sheet, income statement and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. The Company adopted this new standard effective January 1, 2020, on a prospective basis, and it did not have a material effect on the consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard includes removal of certain exceptions to the general principles of Accounting Standards Codification 740, Income Taxes, and simplification in several other areas. ASU 2019-12 is effective for public business entities for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods, and early adoption is permitted. The Company adopted this new standard effective January 1, 2020, and it did not have a material effect on the consolidated financial statements and related disclosures. For a detailed discussion of the adoption of ASU 2019-12, refer to Note 7.
Pending Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. This standard requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. As a smaller reporting company, ASU 2016-13 will become effective for the Company for fiscal years beginning after December 15, 2022, and early adoption is permitted. The Company is currently evaluating the impact that ASU 2016-13 will have on its financial statements and related disclosures.

3. Fair Value Measurements

The Company has certain financial assets and liabilities that are recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements:

Level 1—quoted prices for identical instruments in active markets;
Level 2—quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
Level 3—valuations derived from valuation techniques in which one or more significant value drivers are unobservable.

The tables below present information about the Company’s financial assets and liabilities that are measured and carried at fair value as of June 30, 2020 and December 31, 2019 and indicate the level within the fair value hierarchy where each measurement is classified. The carrying amounts reflected in the condensed consolidated balance sheets for cash, prepaid expenses and other current assets, restricted cash, accounts payable and accrued expenses approximate their fair value due to their short-term nature.
12

CONCERT PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Level 1Level 2Level 3Total
June 30, 2020
Cash equivalents:
Money market funds$16,926  $  $  $16,926  
Investments, available for sale:
U.S. Treasury obligations48,724      48,724  
Government agency securities35,913  32,987    68,900  
Marketable equity securities:
Corporate equity securities (Note 8)2,688      2,688  
Total$104,251  $32,987  $  $137,238  
Level 1Level 2Level 3Total
December 31, 2019
Cash equivalents:
Money market funds$40,782  $  $  $40,782  
Government agency securities  2,000    2,000  
Investments, available for sale:
U.S. Treasury obligations34,499      34,499  
Government agency securities10,997  7,899    18,896  
Marketable equity securities:
Corporate equity securities (Note 8)5,375      5,375  
Total$91,653  $9,899  $  $101,552  

4. Cash, Cash Equivalents, Investments and Marketable Equity Securities
Cash equivalents include all highly liquid investments maturing within 90 days from the date of purchase. Investments consist of securities with original maturities greater than 90 days when purchased. The Company classifies these investments as available-for-sale and records them at fair value in the accompanying consolidated balance sheets. Unrealized gains or losses from equity securities are included in net income. Unrealized gains or losses from other investments, including debt securities, are included in accumulated other comprehensive income (loss). Premiums or discounts from par value are amortized to investment income over the life of the underlying investment.

Cash, cash equivalents, available for sale investments and marketable equity securities included the following as of June 30, 2020 and December 31, 2019:
Average MaturityAmortized CostUnrealized GainsUnrealized LossesFair Value
June 30, 2020
Cash$10,168  $—  $—  $10,168  
Money market funds16,926  —  —  16,926  
Cash and cash equivalents$27,094  $—  $—  $27,094  
U.S. Treasury obligations169 days$48,583  $142  $(1) $48,724  
Government agency securities156 days68,788  112  (1) 68,899  
Investments, available for sale$117,371  $254  $(2) $117,623  
June 30, 2020Acquisition ValueUnrealized GainsUnrealized LossesFair Value
Marketable equity securities (Note 8)$10,451  $  $(7,763) $2,688  

13

CONCERT PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Average MaturityAmortized CostUnrealized GainsUnrealized LossesFair Value
December 31, 2019
Cash$10,261  $—  $—  $10,261  
Money market funds40,782  —  —  40,782  
Government agency securities8 days2,000  —  —  2,000  
Cash and cash equivalents$53,043  $—  $—  $53,043  
U.S. Treasury obligations108 days$34,475  $24  $  $34,499  
Government agency securities74 days18,874  22    18,896  
Investments, available for sale$53,349  $46  $  $53,395  
December 31, 2019Acquisition ValueUnrealized GainsUnrealized LossesFair Value
Marketable equity securities (Note 8)$10,451  $  $(5,076) $5,375  
Although available to be sold to meet operating needs or otherwise, securities are generally held through maturity. The Company classifies all investments as current assets, as these assets are readily available for use in current operations. The cost of securities sold is determined based on the specific identification method for purposes of recording realized gains and losses. During 2020 and 2019, there were no realized gains or losses on sales of investments, and no investments were adjusted other than for temporary declines in fair value.

5. Restricted Cash
Restricted cash as of June 30, 2020 and 2019 was held as collateral for stand-by letters of credit issued by the Company to its landlord in connection with the current lease for its principal facilities located at 65 Hayden Avenue, Lexington, Massachusetts. For additional information regarding the Company's lease, refer to Note 11. Cash, cash equivalents and restricted cash consisted of the following as of June 30, 2020 and 2019:
June 30,
2020
June 30,
2019
Cash and cash equivalents$27,094  $43,714  
Restricted cash1,157  1,157  
Total cash, cash equivalents and restricted cash shown in the statements of cash flows$28,251  $44,871  

6. Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consisted of the following as of June 30, 2020 and December 31, 2019:
June 30,
2020
December 31,
2019
Accrued professional fees and other$514  $862  
Employee compensation and benefits1,741  3,222  
Research and development expenses4,767  4,252  
Total$