2020 Q1 Form 10-Q Financial Statement

#000144702820000049 Filed on May 11, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q4 2019 Q1
Revenue $1.491M $1.618M $679.0K
YoY Change 119.59% -3.58% -52.72%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $3.550M $1.880M $4.410M
YoY Change -19.5% -68.3% 20.16%
% of Gross Profit
Research & Development $10.42M $12.42M $14.71M
YoY Change -29.2% 12.3% 5.47%
% of Gross Profit
Depreciation & Amortization $500.0K $510.0K $509.0K
YoY Change -1.77% 2.0% -15.45%
% of Gross Profit
Operating Expenses $14.64M $14.80M $19.88M
YoY Change -26.35% -15.43% 0.17%
Operating Profit -$13.15M -$13.09M -$19.20M
YoY Change -31.51% -22.58% 4.3%
Interest Expense $1.041M -$11.57M $12.00K
YoY Change 8575.0% 386.13% -88.46%
% of Operating Profit
Other Income/Expense, Net -$714.0K -$4.055M
YoY Change -82.39% -515.47%
Pretax Income -$13.86M -$24.65M -$23.25M
YoY Change -40.39% 35.07% 33.4%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$13.86M -$24.65M -$23.25M
YoY Change -40.39% 35.1% 33.4%
Net Earnings / Revenue -929.64% -1523.73% -3424.3%
Basic Earnings Per Share -$0.25 -$0.46 -$0.47
Diluted Earnings Per Share -$0.25 -$418.0K -$417.1K
COMMON SHARES
Basic Shares Outstanding 67.68M shares 56.85M shares 56.12M shares
Diluted Shares Outstanding 67.68M shares

Balance Sheet

Concept 2020 Q1 2019 Q4 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $84.90M $90.83M $110.6M
YoY Change -23.24% -27.1% -35.88%
Cash & Equivalents $26.42M $31.80M $83.97M
Short-Term Investments $58.50M $59.04M $26.60M
Other Short-Term Assets $2.400M $1.800M $700.0K
YoY Change 242.86% -35.71% -53.33%
Inventory
Prepaid Expenses
Receivables $1.072M $1.204M $923.0K
Other Receivables $0.00 $0.00 $300.0K
Total Short-Term Assets $88.33M $93.83M $112.5M
YoY Change -21.47% -27.39% -35.79%
LONG-TERM ASSETS
Property, Plant & Equipment $8.176M $8.676M $9.667M
YoY Change -15.42% -14.48% -18.28%
Goodwill $0.00 $22.47M
YoY Change -100.0% -7.77%
Intangibles $0.00 $43.84M
YoY Change -100.0% -25.25%
Long-Term Investments $3.200M $0.00 $17.68M
YoY Change -81.9% -100.0%
Other Assets $233.0K $293.0K
YoY Change
Total Long-Term Assets $14.28M $11.71M $96.73M
YoY Change -85.24% -88.14% 1.99%
TOTAL ASSETS
Total Short-Term Assets $88.33M $93.83M $112.5M
Total Long-Term Assets $14.28M $11.71M $96.73M
Total Assets $102.6M $105.5M $209.2M
YoY Change -50.95% -53.69% -22.52%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.600M $2.400M $2.300M
YoY Change 56.52% -25.0% 155.56%
Accrued Expenses $400.0K $5.200M $6.100M
YoY Change -93.44% -31.58% -4.69%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $4.031M $7.828M $8.823M
YoY Change -54.31% -30.35% -15.13%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $25.30M $25.00M $6.500M
YoY Change 289.23% 557.89% -36.89%
Total Long-Term Liabilities $25.30M $25.00M $6.500M
YoY Change 289.23% 557.89% -36.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.031M $7.828M $8.823M
Total Long-Term Liabilities $25.30M $25.00M $6.500M
Total Liabilities $29.36M $32.79M $28.01M
YoY Change 4.82% 18.5% -25.53%
SHAREHOLDERS EQUITY
Retained Earnings -$986.9M -$970.1M -$831.2M
YoY Change 18.74% 20.48% 9.68%
Common Stock $911.1M $898.5M $882.1M
YoY Change 3.28% 2.18% 0.67%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $73.26M $72.74M $181.2M
YoY Change
Total Liabilities & Shareholders Equity $102.6M $105.5M $209.2M
YoY Change -50.95% -53.69% -22.52%

Cashflow Statement

Concept 2020 Q1 2019 Q4 2019 Q1
OPERATING ACTIVITIES
Net Income -$13.86M -$24.65M -$23.25M
YoY Change -40.39% 35.1% 33.4%
Depreciation, Depletion And Amortization $500.0K $510.0K $509.0K
YoY Change -1.77% 2.0% -15.45%
Cash From Operating Activities -$15.45M -$13.35M -$16.58M
YoY Change -6.8% -21.84% -16.96%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$60.00K $31.00K
YoY Change -100.0% -73.91% -87.5%
Acquisitions
YoY Change
Other Investing Activities -$2.400M -$58.76M $61.06M
YoY Change -103.93% -230.55% -180.96%
Cash From Investing Activities -$2.401M -$58.82M $61.03M
YoY Change -103.93% -231.35% -180.66%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $12.32M $2.248M
YoY Change 447.82% -96.61%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $12.48M 13.90M $2.536M
YoY Change 392.15% 12536.36% -95.34%
NET CHANGE
Cash From Operating Activities -$15.45M -13.35M -$16.58M
Cash From Investing Activities -$2.401M -58.82M $61.03M
Cash From Financing Activities $12.48M 13.90M $2.536M
Net Change In Cash -$5.383M -58.27M $47.03M
YoY Change -111.45% -309.53% -212.42%
FREE CASH FLOW
Cash From Operating Activities -$15.45M -$13.35M -$16.58M
Capital Expenditures $0.00 -$60.00K $31.00K
Free Cash Flow -$15.45M -$13.29M -$16.61M
YoY Change -6.97% -21.13% -17.83%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of business and future operations</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Arbutus Biopharma Corporation (the &#8220;Company&#8221; or &#8220;Arbutus&#8221;) is a clinical-stage biopharmaceutical company dedicated to discovering, developing and commercializing a cure for people with chronic hepatitis B virus (&#8220;HBV&#8221;) infection. The Company is advancing multiple drug product candidates that may be combined into a potentially curative regimen for chronic HBV infection.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s pipeline includes: </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">AB-729, a subcutaneously-delivered RNA interference (&#8220;RNAi&#8221;) product candidate currently in a Phase 1a/1b clinical trial with preliminary results announced in March 2020. Additional Week 12 single-dose results for the 60 mg dose cohort are expected in the second quarter of 2020. Results from a single-dose 90 mg cohort and a multi-dose 60 mg cohort are expected in the second half of 2020;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">AB-836, a next-generation capsid inhibitor product candidate currently advancing through IND-enabling studies; and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">other compounds early in the development process, including oral compounds that inhibit PD-L1 and next-generation oral HBV RNA destabilizers.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The success of the Company is dependent on obtaining the necessary regulatory approvals to bring its products to market and achieving profitable operations. The Company&#8217;s research and development activities and commercialization of its products are dependent on its ability to successfully complete these activities and to obtain adequate financing through a combination of financing activities and operations. It is not possible to predict either the outcome of the Company&#8217;s existing or future research and development programs or the Company&#8217;s ability to continue to fund these programs in the future.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">COVID-19</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In&#160;December 2019,&#160;an outbreak of a novel strain of coronavirus (COVID-19) was identified in&#160;Wuhan, China. This virus continues to spread globally, has been declared a pandemic by the&#160;World Health Organization&#160;and has spread to nearly every country in the world. The impact of this pandemic has been, and will likely continue to be, extensive in many aspects of society. The pandemic has resulted in and will likely continue to result in significant disruptions to businesses. A number of countries and other jurisdictions around the world have implemented extreme measures to try and slow the spread of the virus.&#160; These measures include the closing of businesses and requiring people to stay in their homes, the latter of which raises uncertainty regarding the ability to travel to hospitals in order to participate in clinical trials. Additional measures that have had, and will likely continue to have, a major impact on clinical development, at least in the near-term, include shortages and delays in the supply chain, and prohibitions in certain countries on enrolling subjects in new clinical trials.&#160; Despite the challenges of COVID-19, we have not had to alter our objectives for 2020.&#160; However, future disruptions related to the COVID-19 pandemic could negatively impact our plans and timelines, including enrolling and monitoring subjects in the trial.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">While Arbutus&#8217; core mission is to find a cure for hepatitis B, the magnitude of the coronavirus pandemic is undeniable. Given the Company&#8217;s proven expertise in the discovery of new antiviral therapies, Arbutus feels compelled to work towards the discovery of a new treatment. To that end, the Company has assembled an internal team of expert scientists under the direction of Arbutus&#8217; Chief Scientific Officer, Dr. Michael Sofia, to identify novel small molecule therapies to treat COVID-19 and future coronavirus outbreaks. Dr. Sofia, who was awarded the Lasker-DeBakey Award for his discovery of sofosbuvir, brings extensive antiviral drug discovery experience to this new program. The Company has also recently joined forces with the COVID R&amp;D consortium to further support and expedite efforts to address the SARS-CoV-2 pandemic and any future coronavirus outbreaks. At this time, Arbutus&#8217; COVID-19 research program will focus on the discovery and development of new molecular entities that address specific viral targets including the nsp12 viral polymerase and the viral protease. These targets are essential viral proteins which Arbutus has experience in targeting. The establishment of the COVID-19 effort does not impact the Company&#8217;s belief that its cash, cash equivalents and investments as of March 31, 2020 are sufficient to fund its operations into the middle of 2021.</font></div></div>

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