What Maze Therapeutics, Inc. told the SEC could break it.

With a $489.5M accumulated deficit and no product revenue, Maze needs substantial additional capital; its Hercules Loan Agreement places a first-lien security interest on substantially all assets (except IP) and imposes restrictive covenants.

“All of our obligations under the Hercules Loan Agreement are secured by a first lien perfected security interest on substantially all of our existing assets and after-acquired assets, except for intellectual property, subject to customary exceptions.”

Proposed U.S. legislation such as the BIOSECURE Act could restrict or prohibit Maze from working with Chinese biotechnology companies and CMOs, disrupting the supply of material to the company.

“certain Chinese biotechnology companies may become subject to trade restrictions, sanctions, other regulatory requirements, or proposed legislation by the U.S. government, which could restrict or even prohibit our ability to work with such entities, thereby potentially disrupting the supply of material to us.”

Maze relies on third-party contract manufacturers located in China for some of its manufacturing and expects to continue doing so, exposing it to product supply disruption and cost increases from U.S.–China policy changes.

“Further, we rely on third parties located in China for some of our contract manufacturing, and we expect to continue to use such third-party manufacturers for such purposes.”