tcda-20210930
false2021Q30001595585December 31.3333.027800015955852021-01-012021-09-30xbrli:shares00015955852021-10-29iso4217:USDxbrli:shares00015955852021-09-30iso4217:USD00015955852020-12-3100015955852021-07-012021-09-3000015955852020-07-012020-09-3000015955852020-01-012020-09-300001595585us-gaap:CommonStockMember2020-12-310001595585us-gaap:AdditionalPaidInCapitalMember2020-12-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001595585us-gaap:RetainedEarningsMember2020-12-310001595585us-gaap:CommonStockMember2021-01-012021-03-310001595585us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100015955852021-01-012021-03-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001595585us-gaap:RetainedEarningsMember2021-01-012021-03-310001595585us-gaap:CommonStockMember2021-03-310001595585us-gaap:AdditionalPaidInCapitalMember2021-03-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001595585us-gaap:RetainedEarningsMember2021-03-3100015955852021-03-310001595585us-gaap:CommonStockMember2021-04-012021-06-300001595585us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000015955852021-04-012021-06-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001595585us-gaap:RetainedEarningsMember2021-04-012021-06-300001595585us-gaap:CommonStockMember2021-06-300001595585us-gaap:AdditionalPaidInCapitalMember2021-06-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001595585us-gaap:RetainedEarningsMember2021-06-3000015955852021-06-300001595585us-gaap:CommonStockMember2021-07-012021-09-300001595585us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001595585us-gaap:RetainedEarningsMember2021-07-012021-09-300001595585us-gaap:CommonStockMember2021-09-300001595585us-gaap:AdditionalPaidInCapitalMember2021-09-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001595585us-gaap:RetainedEarningsMember2021-09-300001595585us-gaap:CommonStockMember2019-12-310001595585us-gaap:AdditionalPaidInCapitalMember2019-12-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001595585us-gaap:RetainedEarningsMember2019-12-3100015955852019-12-310001595585us-gaap:CommonStockMember2020-01-012020-03-310001595585us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100015955852020-01-012020-03-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001595585us-gaap:RetainedEarningsMember2020-01-012020-03-310001595585us-gaap:CommonStockMember2020-03-310001595585us-gaap:AdditionalPaidInCapitalMember2020-03-310001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001595585us-gaap:RetainedEarningsMember2020-03-3100015955852020-03-310001595585us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000015955852020-04-012020-06-300001595585us-gaap:CommonStockMember2020-04-012020-06-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001595585us-gaap:RetainedEarningsMember2020-04-012020-06-300001595585us-gaap:CommonStockMember2020-06-300001595585us-gaap:AdditionalPaidInCapitalMember2020-06-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001595585us-gaap:RetainedEarningsMember2020-06-3000015955852020-06-300001595585us-gaap:CommonStockMember2020-07-012020-09-300001595585us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001595585us-gaap:RetainedEarningsMember2020-07-012020-09-300001595585us-gaap:CommonStockMember2020-09-300001595585us-gaap:AdditionalPaidInCapitalMember2020-09-300001595585us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001595585us-gaap:RetainedEarningsMember2020-09-3000015955852020-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2021-09-300001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-09-300001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2021-09-300001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMemberus-gaap:CashAndCashEquivalentsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-12-310001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2020-12-310001595585us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2020-12-310001595585us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2020-12-310001595585us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InvestmentsMember2020-12-310001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-12-310001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2019-12-310001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-01-012020-09-300001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-01-012021-09-300001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2021-09-300001595585us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsLiabilitiesMember2020-09-300001595585us-gaap:FairValueInputsLevel3Memberus-gaap:ConvertibleNotesPayableMember2021-09-30xbrli:pure0001595585us-gaap:FairValueInputsLevel3Memberus-gaap:ConvertibleNotesPayableMemberus-gaap:MeasurementInputDiscountRateMember2021-09-300001595585us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMemberus-gaap:ConvertibleNotesPayableMember2021-09-300001595585tcda:TermLoanTrancheFiveMembertcda:FifthAmendmentToTermLoanMember2021-03-122021-03-120001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2020-05-22utr:Rate0001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2020-05-222020-05-220001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2021-09-300001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2021-01-012021-09-300001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2021-07-012021-09-300001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2020-07-012020-09-300001595585us-gaap:SeniorNotesMembertcda:ThreePointFiveZeroPercentDue2027Member2020-01-012020-09-300001595585us-gaap:SeniorNotesMember2021-09-300001595585tcda:ThirdQuarter2020RestructuringMember2020-09-182020-09-180001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:EmployeeSeveranceMember2019-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2019-12-310001595585tcda:ThirdQuarter2020RestructuringMember2019-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:EmployeeSeveranceMember2020-01-012020-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2020-01-012020-12-310001595585tcda:ThirdQuarter2020RestructuringMember2020-01-012020-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:EmployeeSeveranceMember2020-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2020-12-310001595585tcda:ThirdQuarter2020RestructuringMember2020-12-310001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:EmployeeSeveranceMember2021-01-012021-09-300001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2021-01-012021-09-300001595585tcda:ThirdQuarter2020RestructuringMember2021-01-012021-09-300001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:EmployeeSeveranceMember2021-09-300001595585tcda:ThirdQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2021-09-300001595585tcda:ThirdQuarter2020RestructuringMember2021-09-300001595585tcda:FourthQuarter2020RestructuringMember2020-10-282020-10-280001595585us-gaap:EmployeeSeveranceMembertcda:FourthQuarter2020RestructuringMember2019-12-310001595585tcda:FourthQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2019-12-310001595585us-gaap:OtherRestructuringMembertcda:FourthQuarter2020RestructuringMember2019-12-310001595585tcda:FourthQuarter2020RestructuringMember2019-12-310001595585us-gaap:EmployeeSeveranceMembertcda:FourthQuarter2020RestructuringMember2020-01-012020-12-310001595585tcda:FourthQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2020-01-012020-12-310001595585us-gaap:OtherRestructuringMembertcda:FourthQuarter2020RestructuringMember2020-01-012020-12-310001595585tcda:FourthQuarter2020RestructuringMember2020-01-012020-12-310001595585us-gaap:EmployeeSeveranceMembertcda:FourthQuarter2020RestructuringMember2020-12-310001595585tcda:FourthQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2020-12-310001595585us-gaap:OtherRestructuringMembertcda:FourthQuarter2020RestructuringMember2020-12-310001595585tcda:FourthQuarter2020RestructuringMember2020-12-310001595585us-gaap:EmployeeSeveranceMembertcda:FourthQuarter2020RestructuringMember2021-01-012021-09-300001595585tcda:FourthQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2021-01-012021-09-300001595585us-gaap:OtherRestructuringMembertcda:FourthQuarter2020RestructuringMember2021-01-012021-09-300001595585tcda:FourthQuarter2020RestructuringMember2021-01-012021-09-300001595585us-gaap:EmployeeSeveranceMembertcda:FourthQuarter2020RestructuringMember2021-09-300001595585tcda:FourthQuarter2020RestructuringMemberus-gaap:ContractTerminationMember2021-09-300001595585us-gaap:OtherRestructuringMembertcda:FourthQuarter2020RestructuringMember2021-09-300001595585tcda:FourthQuarter2020RestructuringMember2021-09-300001595585us-gaap:WarrantMember2021-01-012021-09-300001595585us-gaap:WarrantMember2020-01-012020-09-300001595585us-gaap:ConvertibleDebtMember2021-01-012021-09-300001595585us-gaap:ConvertibleDebtMember2020-01-012020-09-300001595585us-gaap:CommonStockSubjectToMandatoryRedemptionMember2021-01-012021-09-300001595585us-gaap:CommonStockSubjectToMandatoryRedemptionMember2020-01-012020-09-300001595585us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001595585us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001595585tcda:StockOptionExchangeProgramMember2021-01-012021-09-3000015955852020-01-012020-12-310001595585us-gaap:RestrictedStockUnitsRSUMember2020-12-310001595585us-gaap:RestrictedStockUnitsRSUMember2021-09-300001595585us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001595585tcda:The2018EquityPlanMember2021-07-160001595585us-gaap:EmployeeStockOptionMembertcda:The2018EquityPlanMember2021-08-160001595585us-gaap:EmployeeStockOptionMembertcda:StockOptionExchangeProgramMember2021-08-162021-08-160001595585us-gaap:EmployeeStockOptionMembertcda:StockOptionExchangeProgramMember2021-08-160001595585us-gaap:EmployeeStockOptionMembertcda:The2018EquityPlanMember2021-08-162021-08-160001595585us-gaap:EmployeeStockOptionMember2021-08-162021-08-160001595585tcda:EmployeeStockPurchaseProgramESPPMemberus-gaap:EmployeeStockMember2018-06-300001595585tcda:EmployeeStockPurchaseProgramESPPMemberus-gaap:EmployeeStockMember2018-06-012018-06-3000015955852018-06-012018-06-300001595585tcda:EmployeeStockPurchaseProgramESPPMemberus-gaap:EmployeeStockMember2021-06-012021-06-30tcda:purchasePeriod0001595585tcda:EmployeeStockPurchaseProgramESPPMemberus-gaap:EmployeeStockMember2019-01-010001595585tcda:EmployeeStockPurchaseProgramESPPMemberus-gaap:EmployeeStockMember2021-01-012021-09-300001595585us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001595585us-gaap:ResearchAndDevelopmentExpenseMember2020-07-012020-09-300001595585us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001595585us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-09-300001595585us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001595585us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001595585us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001595585us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001595585us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001595585us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001595585us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001595585us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001595585us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001595585us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001595585us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001595585tcda:EmployeeStockPurchaseProgramESPPMember2021-07-012021-09-300001595585tcda:EmployeeStockPurchaseProgramESPPMember2020-07-012020-09-300001595585tcda:EmployeeStockPurchaseProgramESPPMember2021-01-012021-09-300001595585tcda:EmployeeStockPurchaseProgramESPPMember2020-01-012020-09-300001595585us-gaap:ShareBasedCompensationAwardTrancheOneMember2021-08-162021-08-160001595585us-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-08-162021-08-16


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
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: 001-38558
https://cdn.kscope.io/d93a6e10fe180ed83f9a263ceb4b9715-tcda-20210930_g1.jpg
TRICIDA, INC.
(Exact name of registrant as specified in its charter)
Delaware46-3372526
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
7000 Shoreline Court, Suite 201, South San Francisco, CA 94080
(Address of principal executive offices, including zip code)
(415) 429-7800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of exchange on which registered
Common stock, par value $0.001 per shareTCDAThe Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated 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
On October 29, 2021, the registrant had 50,447,578 shares of common stock, par value $0.001 per share, outstanding.




TABLE OF CONTENTS
Note Regarding Forward-Looking Statements
Part I. Financial Information
Item 1.Financial Statements (Unaudited):
Condensed Balance Sheets as of September 30, 2021 and December 31, 2020
Condensed Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2021 and 2020
Condensed Statements of Stockholders’ Equity for the three and nine months ended September 30, 2021 and 2020
Condensed Statements of Cash Flows for the nine months ended September 30, 2021 and 2020
Notes to Condensed Financial Statements
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
Signatures





NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements generally can be identified by words such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:
estimates of our expenses, capital requirements and our needs for additional financing;
the prospects of veverimer (also known as TRC101), our only investigational drug candidate, which is still in development;
our ability to obtain approval of our New Drug Application, or NDA, for veverimer from the U.S. Food and Drug Administration, or FDA, under either traditional approval or the Accelerated Approval Program, if at all;
our ability to resolve the deficiencies identified by the FDA in the Complete Response Letter and issues raised in the Appeal Denied Letter related to our NDA for veverimer;
our expectations regarding the timing of the completion or early termination of the VALOR-CKD trial and any other nonclinical or clinical study or trial;
the design of our renal outcomes trial, VALOR-CKD (also known as TRCA-303), including the sample size, trial duration, endpoint definition, event rate assumptions and eligibility criteria;
our expectations regarding the timing and location of the enrollment, distribution of enrollment across geographic regions, endpoint accrual, continuation, completion, outcome and reporting of results of our ongoing VALOR-CKD trial;
the outcome and results of our ongoing VALOR-CKD trial;
the market acceptance or commercial success of veverimer, if approved, and the degree of acceptance among physicians, patients, patient advocacy groups, health care payers and the medical community;
our expectations regarding competition, potential market size and the size of the patient population for veverimer, if approved for commercial use;
our expectations regarding the safety, efficacy and clinical benefit of veverimer;
our ability to achieve and maintain regulatory approval of veverimer, and any related requirements, restrictions, limitations and/or warnings in the label of veverimer;
our sales, marketing or distribution capabilities and our ability to commercialize veverimer, if we obtain regulatory approval;
our current and future agreements with third parties in connection with the manufacturing, commercialization, packaging and distribution of veverimer;
our expectations regarding the ability of our contract manufacturing partners to produce veverimer in the quantities and timeframe that we will require;
our expectations regarding our future costs of goods;
our ability to attract, retain and motivate key personnel;
the scope of protection we are able to establish and maintain for intellectual property rights covering veverimer;

1



potential claims relating to our intellectual property and third-party intellectual property;
the duration of our intellectual property estate that will provide protection for veverimer;
our ability to establish collaborations in lieu of obtaining additional financing;
the potential impact of pandemics, including COVID-19, on the health care system, financial markets and economy generally and on our business in particular; and
our financial performance.
These forward-looking statements are based on management’s current expectations, estimates, forecasts, and projections about our business and the industry in which we operate and management’s beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this Quarterly Report on Form 10-Q may turn out to be inaccurate. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under Part II, Item 1A. “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Investors in our securities are urged to consider these factors carefully in evaluating the forward-looking statements. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. Investors in our securities should, however, review the factors and risks we describe in the reports we will file from time to time with the Securities and Exchange Commission after the date of this Quarterly Report on Form 10-Q.

2



PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRICIDA, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents$16,988 $137,857 
Short-term investments129,782 171,670 
Prepaid expenses and other current assets4,404 4,488 
Total current assets151,174 314,015 
Long-term investments 22,757 
Property and equipment, net836 1,112 
Operating lease right-of-use assets12,576 13,801 
Total assets$164,586 $351,685 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$3,261 $3,508 
Current operating lease liabilities2,716 2,079 
Accrued expenses and other current liabilities19,754 28,671 
Total current liabilities25,731 34,258 
Term Loan, net 76,638 
Convertible Senior Notes, net125,194 118,670 
Non-current operating lease liabilities11,759 13,046 
Other long-term liabilities 202 
Total liabilities162,684 242,814 
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 40,000,000 shares authorized, no shares issued or outstanding as of September 30, 2021 and December 31, 2020
  
Common stock, $0.001 par value; 400,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 50,447,578 and 50,210,779 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
50 50 
Additional paid-in capital762,317 742,555 
Accumulated other comprehensive income (loss)(77)64 
Accumulated deficit(760,388)(633,798)
Total stockholders’ equity1,902 108,871 
Total liabilities and stockholders’ equity$164,586 $351,685 
See accompanying notes to condensed financial statements (unaudited).

3



TRICIDA, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except share and per share amounts)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Operating expenses:
Research and development$26,635 $42,996 $78,591 $121,134 
General and administrative9,052 29,273 28,497 81,217 
Total operating expenses35,687 72,269 107,088 202,351 
Loss from operations(35,687)(72,269)(107,088)(202,351)
Other income (expense), net6 907 155 4,395 
Interest expense(3,994)(6,267)(13,533)(12,043)
Loss on early extinguishment of Term Loan  (6,124) 
Loss before income taxes(39,675)(77,629)(126,590)(209,999)
Income tax benefit (expense) (36) 50 
Net loss(39,675)(77,665)(126,590)(209,949)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale investments, net of tax(15)(431)(141)239 
Total comprehensive loss$(39,690)$(78,096)$(126,731)$(209,710)
Net loss per share, basic and diluted$(0.79)$(1.55)$(2.52)$(4.20)
Weighted-average number of shares outstanding, basic and diluted50,434,879 50,120,086 50,326,474 49,974,388 
See accompanying notes to condensed financial statements (unaudited).

4



TRICIDA, INC.
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands, except share amounts)
 Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders’ Equity
 SharesAmount
Balance at December 31, 202050,210,779 $50 $742,555 $64 $(633,798)$108,871 
Issuance of common stock under equity incentive plans61,946 — 115 — — 115 
Stock-based compensation— — 6,042 — — 6,042 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (105)— (105)
Net loss— — — — (53,362)(53,362)
Balance at March 31, 202150,272,725 50 748,712 (41)(687,160)61,561 
Issuance of common stock under equity incentive plans156,009 — 333 — — 333 
Stock-based compensation— — 6,609 — — 6,609 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (21)— (21)
Net loss— — — — (33,553)(33,553)
Balance at June 30, 202150,428,734 50 755,654 (62)(720,713)34,929 
Issuance of common stock under equity incentive plans18,844 — 14 — — 14 
Stock-based compensation— — 6,649 — — 6,649 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (15)— (15)
Net loss— — — — (39,675)(39,675)
Balance at September 30, 202150,447,578 $50 $762,317 $(77)$(760,388)$1,902 













5




 Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTotal Stockholders’ Equity
 SharesAmount
Balance at December 31, 201949,763,176 $50 $632,647 $193 $(369,007)$263,883 
Issuance of common stock under equity incentive plans150,056 — 550 — — 550 
Stock-based compensation— — 8,374 — — 8,374 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (232)— (232)
Net loss— — — — (74,114)(74,114)
Balance at March 31, 202049,913,232 50 641,571 (39)(443,121)198,461 
Equity component of Convertible Senior Notes, net of underwriter discounts and issuance costs— — 79,498 — — 79,498 
Issuance of warrants in connection with Term Loan— — 112 — — 112 
Issuance of common stock under equity incentive plans126,355 — 1,098 — — 1,098 
Stock-based compensation— — 9,079 — — 9,079 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — 902 — 902 
Net loss— — — — (58,170)(58,170)
Balance at June 30, 202050,039,587 50 731,358 863 (501,291)230,980 
Issuance of common stock upon exercises of warrants in connection with Term Loan68,816 — — — — — 
Issuance of common stock under equity incentive plans75,837 — 234 — — 234 
Stock-based compensation— — 7,655 — — 7,655 
Net unrealized gain (loss) on available-for-sale investments, net of tax— — — (431)— (431)
Net loss— — — — (77,665)(77,665)
Balance at September 30, 202050,184,240 $50 $739,247 $432 $(578,956)$160,773 
See accompanying notes to condensed financial statements (unaudited).

6



TRICIDA, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
 Nine Months Ended
September 30,
 20212020
Operating activities:
Net loss$(126,590)$(209,949)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization351 716 
Non-cash operating lease costs574 597 
Amortization of premiums and accretion of discounts on investments, net440 (264)
Accretion of Term Loan and Convertible Senior Notes7,047 5,246 
Loss on early extinguishment of Term Loan6,124  
Stock-based compensation19,300 25,108 
Changes in compound derivative liability(202)(699)
Other non-cash items(29)(50)
Changes in operating assets and liabilities:
Prepaid expenses and other assets105 (3,341)
Accounts payable(245)(4,113)
Accrued expenses and other liabilities(8,871)(2,069)
Net cash used in operating activities(101,996)(188,818)
Investing activities:
Purchases of investments(136,345)(276,958)
Proceeds from maturities of investments200,409 268,015 
Purchases of property and equipment(76)(1,197)
Net cash provided by (used in) investing activities63,988 (10,140)
Financing activities:
Proceeds from issuance of common stock under equity incentive plans462 1,897 
Proceeds from Convertible Senior Notes, net 193,285 
Repayment of leasehold improvement loan(38)(57)
Cash paid for early extinguishment of Term Loan(83,285) 
Proceeds from Term Loan, net 14,971 
Net cash provided by (used in) financing activities(82,861)210,096 
Net increase (decrease) in cash and cash equivalents(120,869)11,138 
Cash and cash equivalents at beginning of period137,857 18,574 
Cash and cash equivalents at end of period$16,988 $29,712 
Supplemental disclosures
Cash paid for interest$5,274 $4,137 
Supplemental disclosures of non-cash investing and financing activities
Right-of-use assets obtained in exchange for lease obligations$ $5,820 
Issuance of warrants related to Term Loan$ $112 
Purchases of property and equipment included in accounts payable and accrued expenses$ $644 
See accompanying notes to condensed financial statements (unaudited).

7



TRICIDA, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Organization—Tricida, Inc., or the Company, was incorporated in the state of Delaware on May 22, 2013. The Company is focused on the development and commercialization of its investigational drug candidate, veverimer (also known as TRC101), a non-absorbed, orally-administered polymer designed to treat metabolic acidosis and slow chronic kidney disease, or CKD, progression in patients with CKD.
The Company has sustained operating losses and expects such annual losses to continue over the next several years. The Company’s ultimate success depends on the outcome of its research and development and commercialization activities for veverimer, for which it expects to incur additional losses in the future. Through September 30, 2021, the Company has relied primarily on the proceeds from equity offerings and debt financing to finance its operations.
The Company believes that its existing cash, cash equivalents and investments are sufficient to fund its operations for the twelve-month period following the filing of this Quarterly Report on Form 10-Q. However, its existing cash, cash equivalents and investments are not likely to be sufficient to fund the operations of the Company following the end of 2022. The Company recognizes that it will need to raise additional capital to fully implement its business plan, and if market conditions are favorable or if the Company identifies specific strategic opportunities or needs, intends to do so through the issuance of equity, borrowings, or strategic alliances with partner companies. However, if such financing is not available at adequate levels, on reasonable terms or within a reasonable time frame, the Company will need to reevaluate its operating plans and could be required to significantly reduce operating expenses and delay, reduce the scope of or eliminate some of its development programs or its future commercialization efforts, out-license intellectual property rights to its investigational drug candidates and sell unsecured assets, or a combination of the above, any of which may have a material adverse effect on its business, results of operations, financial condition and/or its ability to fund its scheduled obligations on a timely basis or at all.
Basis of Presentation—The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed financial statements as of and for the three and nine months ended September 30, 2021 and 2020 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed balance sheet as of December 31, 2020 has been derived from audited financial statements.
Although the Company believes that the disclosures in these condensed financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.
Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
There have been no material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Recent Accounting Pronouncements
Adopted Standards
Effective January 1, 2021, the Company adopted, on a prospective basis, Accounting Standards Update, or ASU, No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12,

8



which simplifies the accounting for income taxes. The adoption of ASU 2019-12 did not have a significant impact on the Company's condensed financial statements.
Standards Not Yet Effective
In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06. ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in Accounting Standards Codification, or ASC, 470-20, Debt – Debt with Conversion and Other Options, or ASC 470-20, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features are not required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the scope exception from derivative accounting in ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity, for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting from the host contract. The amendments in ASU 2020-06 further revise the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share, or EPS, for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. ASU 2020-06 is effective for public business entities for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2021 on a prospective basis, and early adoption is permitted. The Company will adopt ASU 2020-06 effective January 1, 2022, and expects to use the modified retrospective method. On adoption, the Company expects to account for the Convertible Senior Notes as a single liability measured at amortized cost resulting in reduced non-cash interest expense due to the de-recognition of the remaining debt discount associated with the equity component.
NOTE 3. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of the Company’s financial assets and liabilities are determined in accordance with the fair value hierarchy established in the FASB's ASC Topic 820, Fair Value Measurements and Disclosures, or Topic 820. Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy of Topic 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:
Level 1—Observable inputs, such as quoted prices in active markets;
Level 2—Inputs, other than the quoted prices in active markets, which are observable either directly or indirectly 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 instrument’s anticipated life; and
Level 3—Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term investments, accounts payable and the Convertible Senior Notes.
Cash, cash equivalents and investments are reported at their respective fair values on the Company's condensed balance sheets. Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds and U.S. Treasury securities as Level 1. When quoted market prices are not available for a specific security, then the Company estimates fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models incorporate expected future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third-party data providers, including but not limited to benchmark yields, reported trades and broker/dealer quotes. Where applicable the market approach utilizes prices and information from market transactions for similar or identical

9



assets. The Company classifies U.S. government agency securities, commercial paper and corporate debt securities as Level 2. The Company's short-term and long-term investments are classified as available-for-sale.
The following tables set forth the value of the Company's financial assets remeasured on a recurring basis based on the three-tier fair value hierarchy by significant investment category as of September 30, 2021 and December 31, 2020.
September 30, 2021
Reported as:
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and Cash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$1,332 $— $— $1,332 $1,332 $— $— 
Level 1:
Money market funds12,656 — — 12,656 12,656 — — 
U.S. Treasury securities6,020 1  6,021  6,021  
Subtotal18,676 1  18,677 12,656 6,021  
Level 2:
U.S. government agency securities 29,068 2  29,070  29,070  
Commercial paper
97,679 14 (2)97,691 3,000 94,691  
Subtotal126,747 16 (2)126,761 3,000 123,761  
Total assets measured at fair value
$146,755 $17 $(2)$146,770 $16,988 $129,782 $ 
December 31, 2020
Reported as:
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and Cash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$2,011 $— $— $2,011 $2,011 $— $— 
Level 1:
Money market funds25,862 — — 25,862 25,862 — — 
U.S. Treasury securities8,157 1 (1)8,157  8,157  
Subtotal34,019 1 (1)34,019 25,862 8,157  
Level 2:
U.S. government agency securities64,370 15 (3)64,382  41,625 22,757 
Commercial paper
159,183 16 (6)159,193 97,989 61,204  
Corporate debt securities
72,546 134 (1)72,679 11,995 60,684  
Subtotal296,099 165 (10)296,254 109,984 163,513 22,757 
Total assets measured at fair value
$332,129 $166 $(11)$332,284 $137,857 $171,670 $22,757 
There were no gross realized gains and gross realized losses for the three and nine months ended September 30, 2021 and 2020. All available-for-sale investments held as of September 30, 2021 have a maturity of one year of less.
The following table presents a reconciliation of financial liabilities related to the compound derivative liability associated with the Loan and Security Agreement, or Term Loan, with Hercules Capital Inc., or Hercules, measured at fair value on a recurring basis using Level 3 unobservable inputs for the nine months ended September 30, 2021 and 2020. The key valuation assumptions used were the discount rate and the probability of the occurrence of certain events. In conjunction with early extinguishment of the Term Loan on March 12, 2021, the Company extinguished the compound derivative liability associated with the Term Loan.
Nine Months Ended September 30,
(in thousands)20212020
Fair value at beginning of period$202 $977 
Change in fair value— (699)
Extinguishment of compound derivative liability upon extinguishment of Term Loan(202)— 
Fair value at end of period$ $278 
The estimated fair value of the Convertible Senior Notes was $90.7 million as of September 30, 2021 measured using Level 3 inputs. The key valuation assumptions used consist of the discount rate of 21.8% and volatility of 87.0%.
NOTE 4. BORROWINGS
Term Loan
On March 12, 2021, the Company repaid the outstanding principal of $75.0 million and fees in the amount of $8.3 million to Hercules under the Term Loan. The Company recognized a loss on early debt extinguishment of $6.1 million which represents the remaining unamortized issuance costs. In conjunction with early extinguishment of the Term Loan on March 12, 2021, the Company extinguished the compound derivative liability associated with the Term Loan.
Convertible Senior Notes
On May 22, 2020, the Company issued $200.0 million aggregate principal amount of 3.50% convertible senior notes due 2027, or the Convertible Senior Notes. The Convertible Senior Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock at the Company’s election at an initial conversion rate of 30.0978 shares of the Company’s common stock per $1,000 principal amount of the Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $33.23 per share of the Company’s common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture. It is the Company’s current intent to settle conversions through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. As of September 30, 2021, the “if-converted value” did not exceed the remaining principal amount of the Convertible Senior Notes.
At issuance, the Convertible Senior Notes were bifurcated into liability and equity components and accounted for separately. The carrying amount of the liability component was calculated to be $117.7 million by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes. The carrying amount of the equity component was calculated to be $82.3 million and was recorded in additional paid-in capital. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The allocation of proceeds into the equity component resulted in a debt discount for the Convertible Senior Notes that is amortized to interest expense at an effective interest rate of 13.5% over the effective life of the Convertible Senior Notes of 7.0 years, using the effective interest method.
The following table presents the carrying amount of the liability and equity components of the Convertible Senior Notes as of September 30, 2021.
(in thousands)September 30,
2021
Liability component:
Principal $200,000 
Unamortized discount - equity component(71,170)
Unamortized underwriter discounts and issuance costs(3,636)
Net carrying amount$125,194 
Equity component, net of underwriter discounts and issuance costs$79,498 

10



The remaining unamortized debt discount is being amortized over approximately 5.7 years which is also the remaining life of the Senior Convertible Notes.
The following table presents the interest expense related to the Convertible Senior Notes for the three and nine months ended September 30, 2021 and 2020.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2021202020212020
Contractual interest expense$1,750 $1,750 $5,250 $2,508 
Amortization of debt discount2,175 1,930 6,334 2,767 
Amortization of underwriter discounts and issuance costs69 50 192 72 
Total interest expense$3,994 $3,730 $11,776 $5,347 
NOTE 5. COMMITMENTS AND CONTINGENCIES
The Company has contractual obligations relating to its Convertible Senior Notes, operating lease, manufacturing and service contracts, and other research and development activities. The following table aggregates the Company’s material expected contractual obligations and commitments as of September 30, 2021.
September 30, 2021
(in thousands)Total
2021(4)
2022 - 20232024 - 2025Thereafter
Convertible Senior Notes(1)
$242,000 $3,500 $14,000 $14,000 $210,500 
Lease obligations(2)
17,999 705 5,780 6,131 5,383 
Manufacturing and service contracts(3)
591,046 20,428 82,164 114,930 373,524 
Total contractual obligations and commitments$851,045 $24,633 $101,944 $135,061 $589,407 
(1)Comprised of interest payable and principal repayment due under the Convertible Senior Notes' Indenture.
(2)Comprised of rent payments under the amended lease for the Company's offices and laboratory space executed on August 14, 2019.
(3)The purchase obligations are comprised of the Company's non-cancelable purchase commitments under the Supply Agreement with Patheon. These amounts are based on forecasts that may include estimates of future market demand, quantity discounts and manufacturing efficiencies.
(4)Remaining three months.
Other Commitments 
On October 4, 2019, the Company and Patheon Austria GmbH & Co KG, or Patheon, entered into a multi-year Manufacturing and Commercial Supply Agreement as amended by Amendment No. 1 dated March 30, 2021, and Amendment No. 2 dated August 26, 2021, collectively the Supply Agreement, under which Patheon agreed to manufacture and supply veverimer to support the Company's commercialization efforts. Patheon has also agreed to manufacture and supply veverimer to support the Company’s drug development and clinical trial activities. Under the Supply Agreement, the Company is obligated to make certain purchases of API. The Company and Patheon are also parties to a Master Development/Validation Services and Clinical/Launch Supply Agreement, or the MDA, pursuant to which Patheon agreed to manufacture and supply veverimer. Certain manufacturing activities previously governed by the MDA are now subject to the Supply Agreement, whereas other ongoing manufacturing activities under the MDA will continue to be governed by the MDA until such activities are complete.
The Supply Agreement may be terminated by either party following an uncured material breach by the other party, in the event the other party becomes insolvent or subject to bankruptcy proceedings, or in connection with a force majeure event that continues beyond 12 months. In addition, the Supply Agreement may be terminated by the Company upon the occurrence of certain regulatory events or actions, including: (i) if the Company does not obtain regulatory approval for veverimer by a specified date or (ii) if the Company terminates its commercialization of veverimer or fails to launch veverimer by a specified date. The Company’s obligation to purchase veverimer is subject to minimum and maximum annual commitments, with the minimum commitments subject to modest reduction in certain circumstances. Patheon has agreed to make facility improvements under the Supply Agreement and will be the exclusive owner of the purchased equipment and facility improvements. Patheon may manufacture other products with the facility improvements when not occupied by manufacturing veverimer. Under the Supply Agreement, the Company has agreed to reimburse Patheon up to a specified amount for plant modifications. These payments will be expensed to research and development prior to FDA approval of veverimer.

11



The Company also enters into other contracts in the normal course of business with contract research organizations, contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on short notice and are cancellable contracts and accordingly, are not included in the contractual obligations and disclosures summarized above.
Contingencies
On January 6, 2021, a putative securities class action was filed in the U.S. District Court for the Northern District of California against the Company and its CEO and CFO, Pardi v. Tricida, Inc., et al., 21-cv-00076 (the "Securities Class Action"). In April 2021, the court appointed Jeffrey Fiore as lead plaintiff and Block & Leviton LLP as lead plaintiffs’ counsel. In June 2021, the lead plaintiff filed an amended complaint which alleges that during the period between June 28, 2018 through February 25, 2021, the Company and its senior officers violated federal securities laws, including under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, through alleged public misrepresentations and/or omissions of material facts concerning the Company's NDA for veverimer and the likelihood and timing of approval of veverimer by the FDA. The amended complaint makes claims against the Company and its CEO. In July 2021, the defendants filed a motion to dismiss the amended complaint and a hearing on the defendants' motion is currently scheduled for December 2021. No damages amount is specified in the Securities Class Action.
On February 15, 2021, a derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Ricks v. Alpern et al., Case No, 1:21-cv-000205 (the "Ricks Derivative Case"). The Ricks Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties and wasted corporate assets. Additionally, the complaint asserts claims against the senior officers for violation of Sections 10(b) and 21D of the Securities Exchange Act of 1934. No damages amount is specified in the Ricks Derivative Case.
On April 8, 2021 a second derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Goodman v. Klaerner et al., Case No, 1:21-cv-00510 (the “Goodman Derivative Case”). As with the Ricks Derivative Case, the Goodman Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties. Additionally, the complaint asserts claims against the senior officers for violation of Sections 10(b) and 21D of the Securities Exchange Act of 1934. No damages amount is specified in the Goodman Derivative Case.
On May 27, 2021, a third derivative action was filed in the District of Delaware, brought by and on behalf of Tricida, Inc. as a Nominal Defendant, against the Company’s directors as well as its CEO and CFO, Verica v. Veitinger et al., Case No, 1:21-cv-00759 (the "Verica Derivative Case" and collectively with the Goodman Derivative Case and Ricks Derivative Case, the "Derivative Cases"). As with the Goodman Derivative Case and Ricks Derivative Case, the Verica Derivative Case is based on the allegations of the Securities Class Action and asserts that by allowing the Company and senior executives to make the allegedly false and misleading statements at issue in the Securities Class Action, the defendants breached their fiduciary duties. Additionally, the complaint asserts claims for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and for unjust enrichment and waste of corporate assets. No damages amount is specified in the Verica Derivative Case.
The Derivative Cases have been consolidated by order of the District of Delaware Court and lead plaintiffs' counsel has been appointed. Pursuant to an agreement between the parties, the Delaware court issued an order on October 12, 2021 staying the consolidated derivative case pending final resolution of any motions to dismiss filed in the Securities Class Action. A consolidated derivative complaint has not yet been filed.
As of September 30, 2021, the Company has not provided for a loss contingency in its condensed financial statements relating to the Securities Class Action and the Derivative Cases since it is not probable that a loss has been incurred.
The Company does not believe that any ultimate liability resulting from any of these claims will have a material adverse effect on its results of operations, financial position, or liquidity. However, the Company cannot give any assurance regarding the ultimate outcome of these claims, and their resolution could be material to operating results for any particular period. Further, while there are no other material legal proceedings that the Company is

12



aware of, the Company may become party to various claims and complaints arising in the ordinary course of business.
NOTE 6. RESTRUCTURING
Third Quarter 2020 Restructuring
In August 2020, the Company received a Complete Response Letter, or CRL, from the FDA related to its NDA for veverimer. Due to the resulting delay in regulatory approval and commercialization of veverimer, on September 10, 2020, the Compensation Committee of the Board of Directors approved the Tricida, Inc. 2020 Reduction in Force Severance Benefit Plan, or 2020 Restructuring Plan. On September 18, 2020, the Company implemented a restructuring, or Third Quarter 2020 Restructuring, under the 2020 Restructuring Plan to streamline the organization and preserve capital that included the elimination of approximately 21.5% of the Company's workforce and other cost reductions.
Following is a summary of accrued restructuring costs related to the Third Quarter 2020 Restructuring as of September 30, 2021 and December 31, 2020.
(in thousands)Severance and Benefits Costs Contract Termination Costs Total
Balance at January 1, 2020$ $ $ 
Charges2,524 136 2,660 
Cash payments made(2,456)(137)(2,593)
Non-cash and other adjustments(6)1 (5)
Balance at December 31, 202062  62 
Non-cash and other adjustments(62) (62)
Balance at September 30, 2021$ $ $ 
Fourth Quarter 2020 Restructuring
On October 25, 2020, the Company's Board of Directors approved and on October 28, 2020, the Company implemented a restructuring under the 2020 Restructuring Plan, or Fourth Quarter 2020 Restructuring, to reduce operating costs and better align its workforce with the needs of its business following the completion of the Type A meeting with the FDA in October 2020. The Fourth Quarter 2020 Restructuring resulted in the elimination of approximately 60.0% of the Company's workforce and included one-time termination severance payments and other employee-related costs, and exit costs including contract termination costs and accelerated depreciation of capitalized software.
Following is a summary of accrued restructuring costs related to the Fourth Quarter 2020 Restructuring as of September 30, 2021 and December 31, 2020.
(in thousands)Severance and Benefits Costs Contract Termination Costs Other Associated CostsTotal
Balance at January 1, 2020$ $ $ $ 
Charges7,338 3,077 679 11,094 
Cash payments made(3,555)(2,032) (5,587)
Non-cash and other adjustments (34)(679)(713)
Balance at December 31, 20203,783 1,011  4,794 
Cash payments made(4,013)(727) (4,740)
Non-cash and other adjustments230 (84) 146 
Balance at September 30, 2021$ $200 $ $200 
Restructuring costs of $0.1 million were recorded in operating expenses in our condensed statements of operations and comprehensive loss for the nine months ended September 30, 2021.

13



NOTE 7. NET LOSS PER SHARE
The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2021 and 2020.
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 (In thousands, except share and per share amounts)2021202020212020
Numerator:
Net loss$(39,675)$(77,665)$(126,590)$(209,949)
Denominator:
Weighted-average common shares outstanding50,434,879 50,121,784 50,326,474 49,977,339 
Less: weighted-average shares subject to repurchase (1,698) (2,951)
Weighted-average number of shares used in basic and diluted net loss per share50,434,879 50,120,086 50,326,474 49,974,388 
Net loss per share, basic and diluted$(0.79)$(1.55)$(2.52)$(4.20)
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive.
The following weighted-average outstanding common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive.
September 30,
20212020
Warrants to purchase common stock31,352 31,352 
Assumed conversion of Convertible Senior Notes6,019,560 6,019,560 
Common stock subject to repurchase 1,260 
Stock options and RSUs issued and outstanding11,142,994 9,894,957 
Total potential common shares excluded from the computation of diluted net loss per share17,193,906 15,947,129 

NOTE 8. STOCK-BASED COMPENSATION
Equity Incentive Plans
The following table summarizes stock option activity under the 2013 Equity Incentive Plan and the 2018 Equity Incentive Plan, or 2018 Plan, for the nine months ended September 30, 2021.
 SharesWeighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
(thousands)
Balance at December 31, 20208,030,415 $19.25 7.1$10,137 
Granted4,792,580 6.71
Granted due to Exchange Offer621,406 3.88
Exercised(125,431)1.43 
Forfeited or canceled(908,212)25.92
Canceled due to Exchange Offer(1,419,182)30.25 
Balance at September 30, 202110,991,576 $11.15 7.9$5,721 
Vested and expected to vest at September 30, 20219,725,705 $11.20 7.8$5,682 
Exercisable at September 30, 20214,921,902 $16.17 6.8$5,243 


14



The following table summarizes restricted stock units, or RSUs, activity under the 2018 Plan for the nine months ended September 30, 2021.
 SharesWeighted-
Average
Grant Date
Fair Value
Unvested balance at December 31, 202090,020 $16.88 
Granted98,418 4.92 
Vested(34,020)25.40 
Forfeited(3,000)11.71 
Unvested balance at September 30, 2021151,418 $7.30 
Stock Option Exchange Program
On July 16, 2021, the Company commenced a tender offer to its employees, excluding executive officers, to exchange eligible stock options for replacement stock options with modified terms, or Exchange Offer. Pursuant to the Exchange Offer, the Company offered employees who held outstanding stock options under the 2018 Plan with an exercise price equal to or greater than $20.00 per share, or eligible options, the opportunity to tender each eligible option in exchange for a new replacement stock option with modified terms, or new options.
The Exchange Offer expired on August 12, 2021. Pursuant to the Exchange Offer, employees elected to exchange outstanding stock options to purchase an aggregate of 1,419,182 shares of common stock for new options to purchase 621,406 shares of common stock. The new options have an exercise price of $3.88 per share, which was the closing price per share of the Company’s common stock on the grant date of August 16, 2021. As a result,