2020 Q4 Form 10-Q Financial Statement

#000144702820000150 Filed on November 05, 2020

View on sec.gov

Income Statement

Concept 2020 Q4 2020 Q3 2019 Q4
Revenue $2.390M $1.523M $1.618M
YoY Change 47.71% -50.25% -3.58%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $3.540M $4.070M $1.880M
YoY Change 88.3% 25.23% -68.3%
% of Gross Profit
Research & Development $14.54M $12.07M $12.42M
YoY Change 17.07% -31.96% 12.3%
% of Gross Profit
Depreciation & Amortization $490.0K $490.0K $510.0K
YoY Change -3.92% -3.35% 2.0%
% of Gross Profit
Operating Expenses $18.56M $16.74M $14.80M
YoY Change 25.41% -82.21% -15.43%
Operating Profit -$15.22M -$13.09M
YoY Change -83.28% -22.58%
Interest Expense -$870.0K $1.074M -$11.57M
YoY Change -92.48% -2.36% 386.13%
% of Operating Profit
Other Income/Expense, Net -$3.538M
YoY Change -14.42%
Pretax Income -$17.04M -$18.76M -$24.65M
YoY Change -30.87% -80.29% 35.07%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$17.04M -$18.76M -$24.65M
YoY Change -30.88% -77.27% 35.1%
Net Earnings / Revenue -712.97% -1231.45% -1523.73%
Basic Earnings Per Share -$0.27 -$0.46
Diluted Earnings Per Share -$197.4K -$0.27 -$418.0K
COMMON SHARES
Basic Shares Outstanding 84.91M shares 79.49M shares 56.85M shares
Diluted Shares Outstanding 79.49M shares

Balance Sheet

Concept 2020 Q4 2020 Q3 2019 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $123.3M $118.3M $90.83M
YoY Change 35.71% 31.29% -27.1%
Cash & Equivalents $52.25M $96.92M $31.80M
Short-Term Investments $71.02M $21.38M $59.04M
Other Short-Term Assets $3.100M $1.900M $1.800M
YoY Change 72.22% 5.56% -35.71%
Inventory
Prepaid Expenses
Receivables $1.312M $1.075M $1.204M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $127.7M $121.2M $93.83M
YoY Change 36.1% 28.51% -27.39%
LONG-TERM ASSETS
Property, Plant & Equipment $6.927M $7.262M $8.676M
YoY Change -20.16% -20.63% -14.48%
Goodwill $0.00
YoY Change -100.0%
Intangibles $0.00
YoY Change -100.0%
Long-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Other Assets $44.00K $109.0K $293.0K
YoY Change -84.98%
Total Long-Term Assets $9.376M $9.862M $11.71M
YoY Change -19.91% -57.0% -88.14%
TOTAL ASSETS
Total Short-Term Assets $127.7M $121.2M $93.83M
Total Long-Term Assets $9.376M $9.862M $11.71M
Total Assets $137.1M $131.1M $105.5M
YoY Change 29.89% 11.79% -53.69%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.000M $900.0K $2.400M
YoY Change 25.0% -35.71% -25.0%
Accrued Expenses $6.300M $6.400M $5.200M
YoY Change 21.15% -12.33% -31.58%
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 $9.541M $7.608M $7.828M
YoY Change 21.88% -13.71% -30.35%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $25.60M $26.20M $25.00M
YoY Change 2.4% 5.65% 557.89%
Total Long-Term Liabilities $25.60M $26.20M $25.00M
YoY Change 2.4% 5.65% 557.89%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.541M $7.608M $7.828M
Total Long-Term Liabilities $25.60M $26.20M $25.00M
Total Liabilities $35.11M $33.76M $32.79M
YoY Change 7.08% 0.35% 18.5%
SHAREHOLDERS EQUITY
Retained Earnings -$1.046B -$1.026B -$970.1M
YoY Change 7.82% 8.83% 20.48%
Common Stock $985.9M $965.4M $898.5M
YoY Change 9.73% 9.13% 2.18%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $102.0M $97.35M $72.74M
YoY Change
Total Liabilities & Shareholders Equity $137.1M $131.1M $105.5M
YoY Change 29.89% 11.79% -53.69%

Cashflow Statement

Concept 2020 Q4 2020 Q3 2019 Q4
OPERATING ACTIVITIES
Net Income -$17.04M -$18.76M -$24.65M
YoY Change -30.88% -77.27% 35.1%
Depreciation, Depletion And Amortization $490.0K $490.0K $510.0K
YoY Change -3.92% -3.35% 2.0%
Cash From Operating Activities -$15.01M -$12.18M -$13.35M
YoY Change 12.43% -48.1% -21.84%
INVESTING ACTIVITIES
Capital Expenditures -$150.0K -$10.00K -$60.00K
YoY Change 150.0% -103.92% -73.91%
Acquisitions
YoY Change
Other Investing Activities -$49.82M $14.10M -$58.76M
YoY Change -15.21% -14.08% -230.55%
Cash From Investing Activities -$49.98M $14.10M -$58.82M
YoY Change -15.03% -12.72% -231.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 20.21M 49.10M 13.90M
YoY Change 45.4% 164.7% 12536.36%
NET CHANGE
Cash From Operating Activities -15.01M -12.18M -13.35M
Cash From Investing Activities -49.98M 14.10M -58.82M
Cash From Financing Activities 20.21M 49.10M 13.90M
Net Change In Cash -44.78M 51.02M -58.27M
YoY Change -23.15% 355.13% -309.53%
FREE CASH FLOW
Cash From Operating Activities -$15.01M -$12.18M -$13.35M
Capital Expenditures -$150.0K -$10.00K -$60.00K
Free Cash Flow -$14.86M -$12.17M -$13.29M
YoY Change 11.81% -48.7% -21.13%

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Nature of business and future operations<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Arbutus Biopharma Corporation (the “Company” or “Arbutus”) is a clinical-stage biopharmaceutical company primarily focused on developing a cure for people with chronic hepatitis B virus (“HBV”) infection. The Company is advancing multiple drug product candidates that may be combined into a potentially curative regimen for chronic HBV infection. Arbutus has also initiated a drug discovery and development effort for treating coronaviruses, including COVID-19.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s pipeline includes: </span></div><div style="text-align:justify"><span><br/></span></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:115%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:14.15pt">AB-729, a subcutaneously-delivered RNA interference (“RNAi”) product candidate currently in a Phase 1a/1b clinical trial. Preliminary positive safety data in single-dose cohorts of healthy subjects and safety and efficacy data in the 60 mg and 180 mg single-dose cohorts in subjects with chronic HBV infection were reported in March 2020 and additional follow-on week 12 data for the 60 mg single-dose cohort were reported in May 2020. Week 12 data for the 90 mg single-dose cohort were reported in September 2020. The Company is dosing two 60 mg multi-dose cohorts of subjects with chronic HBV infection with dosing intervals of every four and eight weeks, respectively. Results from the 60 mg multi-dose cohort with a dosing interval of every four weeks and additional follow-up data on the 60 mg and 90 mg single-dose cohorts are expected to be disclosed as part of an oral presentation at the upcoming American Association for the Study of Liver Disease Conference (“AASLD”) in November. Separately, results from the 60 mg multi-dose cohort with a dosing interval of every eight weeks and a 90 mg single-dose cohort in HBV positive subjects are expected in the fourth quarter of 2020. Additionally, the Company is dosing two 90 mg multi-dose cohorts with chronic HBV infection with dosing intervals of every eight and twelve weeks, respectively;</span></div><div style="margin-top:6pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">AB-836, a next-generation capsid inhibitor product candidate currently advancing through CTA/IND-enabling studies, which the Company expects to be completed by the end of 2020; and</span></div><div style="margin-top:6pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">other compounds early in the development process, including oral compounds that inhibit PD-L1 and a next-generation oral HBV RNA destabilizer.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s research and development activities and the commercialization of its products are dependent on its ability to successfully obtain adequate financing through a combination of financing activities and operations. The success of the Company is dependent on progressing its pipeline and subsequently obtaining the necessary regulatory approvals to bring its products to market and achieving profitable operations. It is not possible to predict either the outcome of the Company’s existing or future research and development programs or the Company’s ability to continue to fund these programs in the future, nor to predict whether it will be successful in obtaining the necessary regulatory approvals to bring its products to market.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">COVID-19</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) was identified in Wuhan, China. The virus continues to spread globally, has been declared a pandemic by the World Health Organization and has spread to nearly every country in the world. The impact of the 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 in an attempt to slow the spread of the virus.  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.  Despite the challenges of COVID-19, the Company has not had to alter its objectives for 2020.  However, future disruptions related to the COVID-19 </span></div>pandemic could negatively impact the Company’s plans and timelines, including enrolling and monitoring subjects in the Company’s clinical trials.While Arbutus’ core mission is to find a cure for hepatitis B, the magnitude of the coronavirus pandemic is undeniable. Given the Company’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’ 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 joined 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’ 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 nsp5 viral protease. The Company is actively screening multiple new oral molecular entities. These targets are essential viral proteins which Arbutus has experience in targeting.
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MaximumContributionForProduct
7200000 USD
abus Maximum Contribution For Product
MaximumContributionForProduct
9300000 CAD
abus Cumulative Contributionfor Product
CumulativeContributionforProduct
2700000 USD
abus Cumulative Contributionfor Product
CumulativeContributionforProduct
3700000 CAD
abus Royalty Guarantees Commitments Percentage
RoyaltyGuaranteesCommitmentsPercentage
0.025
CY2020Q3 us-gaap Loss Contingency Estimate Of Possible Loss
LossContingencyEstimateOfPossibleLoss
400000 USD
CY2020Q3 us-gaap Revenues
Revenues
1523000 USD
CY2019Q3 us-gaap Revenues
Revenues
3061000 USD
us-gaap Revenues
Revenues
4528000 USD
us-gaap Revenues
Revenues
4393000 USD
CY2020Q3 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
2.25
CY2019Q3 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
1.57
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
3.21
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
3.41
CY2020Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1688000 USD
CY2019Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1516000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
4730000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6822000 USD
CY2020Q3 us-gaap Employee Benefits And Share Based Compensation
EmployeeBenefitsAndShareBasedCompensation
300000 USD
us-gaap Employee Benefits And Share Based Compensation
EmployeeBenefitsAndShareBasedCompensation
300000 USD
CY2020Q2 us-gaap Employee Stock Ownership Plan Esop Shares In Esop
EmployeeStockOwnershipPlanESOPSharesInESOP
1500000 shares
us-gaap Employee Stock Ownership Plan Esop Compensation Expense
EmployeeStockOwnershipPlanESOPCompensationExpense
100000 USD
CY2020Q2 us-gaap Common Stock Discount On Shares
CommonStockDiscountOnShares
0.15 USD
CY2020Q3 us-gaap Employee Stock Ownership Plan Esop Shares In Esop
EmployeeStockOwnershipPlanESOPSharesInESOP
1500000 shares
CY2020Q3 us-gaap Employee Stock Ownership Plan Esop Compensation Expense
EmployeeStockOwnershipPlanESOPCompensationExpense
100000 USD
CY2020Q3 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
2500000 USD

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