2018 Q4 Form 10-Q Financial Statement

#000162828018013802 Filed on November 06, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q4
Revenue $1.822M $1.355M $2.120M
YoY Change -14.06% 63.65% 5335.9%
Cost Of Revenue $1.300M $680.0K $650.0K
YoY Change 100.0% 256.02%
Gross Profit $524.0K $675.0K $1.470M
YoY Change -64.35% 5.97% 3669.23%
Gross Profit Margin 28.76% 49.82% 69.34%
Selling, General & Admin $13.38M $12.15M $11.47M
YoY Change 16.65% 4.77% 12.23%
% of Gross Profit 2553.44% 1800.44% 780.27%
Research & Development $6.900M $7.891M $6.140M
YoY Change 12.38% 24.25% 16.95%
% of Gross Profit 1316.79% 1169.04% 417.69%
Depreciation & Amortization $830.0K $700.0K $580.0K
YoY Change 43.1% 27.27% -1.69%
% of Gross Profit 158.4% 103.7% 39.46%
Operating Expenses $20.28M $20.04M $17.60M
YoY Change 15.23% 215.6% 9.59%
Operating Profit -$19.76M -$19.37M -$16.14M
YoY Change 22.45% 11.86% 0.7%
Interest Expense -$2.650M $3.357M $290.0K
YoY Change -1013.79% 81.25%
% of Operating Profit
Other Income/Expense, Net $0.00 -$2.582M -$180.0K
YoY Change -100.0% -1005.96%
Pretax Income -$22.41M -$21.95M -$16.02M
YoY Change 39.89% 28.9% 0.95%
Income Tax -$220.0K $147.0K $270.0K
% Of Pretax Income
Net Earnings -$22.19M -$22.10M -$16.30M
YoY Change 36.17% 29.42% 1.0%
Net Earnings / Revenue -1217.95% -1630.85% -768.68%
Basic Earnings Per Share
Diluted Earnings Per Share -$409.4K -$408.1K -$293.8K
COMMON SHARES
Basic Shares Outstanding 54.20M shares 54.15M shares 55.40M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $166.5M $180.6M $109.2M
YoY Change 52.47% 48.89% 40.36%
Cash & Equivalents $66.26M $61.62M $28.51M
Short-Term Investments $100.2M $119.0M $80.60M
Other Short-Term Assets $576.0K $494.0K $468.0K
YoY Change 23.08% 7.39% 155.74%
Inventory $7.746M $9.406M $8.063M
Prepaid Expenses $980.0K $850.0K
Receivables $1.900M $1.400M $1.900M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $177.6M $192.9M $120.5M
YoY Change 47.43% 46.93% 53.59%
LONG-TERM ASSETS
Property, Plant & Equipment $7.303M $7.412M $4.890M
YoY Change 49.35% 58.04% 14.84%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $322.0K $241.0K $0.00
YoY Change
Total Long-Term Assets $7.625M $7.772M $5.024M
YoY Change 51.77% 61.01% 14.08%
TOTAL ASSETS
Total Short-Term Assets $177.6M $192.9M $120.5M
Total Long-Term Assets $7.625M $7.772M $5.024M
Total Assets $185.3M $200.7M $125.5M
YoY Change 47.61% 47.43% 51.49%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.322M $1.559M $2.080M
YoY Change -36.44% 13.88% 109.68%
Accrued Expenses $4.962M $3.700M $3.636M
YoY Change 36.47% 0.0% 21.2%
Deferred Revenue $217.0K $202.0K $1.071M
YoY Change -79.74%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $7.763M $5.470M $6.787M
YoY Change 14.38% -11.53% 68.16%
LONG-TERM LIABILITIES
Long-Term Debt $120.1M $117.8M $0.00
YoY Change
Other Long-Term Liabilities $53.00K $26.00K $21.00K
YoY Change 152.38%
Total Long-Term Liabilities $53.00K $26.00K $21.00K
YoY Change 152.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.763M $5.470M $6.787M
Total Long-Term Liabilities $53.00K $26.00K $21.00K
Total Liabilities $127.9M $123.3M $6.808M
YoY Change 1778.53% 1893.37% 35.19%
SHAREHOLDERS EQUITY
Retained Earnings -$330.3M -$308.2M -$242.0M
YoY Change 36.52% 36.55% 36.48%
Common Stock $432.9M $430.7M $360.6M
YoY Change 20.04% 21.18% 41.28%
Preferred Stock
YoY Change
Treasury Stock (at cost) $45.07M $45.07M $0.00
YoY Change
Treasury Stock Shares
Shareholders Equity $57.38M $77.41M $118.7M
YoY Change
Total Liabilities & Shareholders Equity $185.3M $200.7M $125.5M
YoY Change 47.61% 47.43% 51.49%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q4
OPERATING ACTIVITIES
Net Income -$22.19M -$22.10M -$16.30M
YoY Change 36.17% 29.42% 1.0%
Depreciation, Depletion And Amortization $830.0K $700.0K $580.0K
YoY Change 43.1% 27.27% -1.69%
Cash From Operating Activities -$14.33M -$18.01M -$13.25M
YoY Change 8.15% 24.98% 3.52%
INVESTING ACTIVITIES
Capital Expenditures -$160.0K -$140.0K -$910.0K
YoY Change -82.42% -66.67% 727.27%
Acquisitions
YoY Change
Other Investing Activities $19.00M $11.86M $6.090M
YoY Change 211.99% -181.91% 121.45%
Cash From Investing Activities $18.84M $11.72M $5.180M
YoY Change 263.71% -178.66% 95.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 170.0K 1.130M 2.130M
YoY Change -92.02% 9.71% 173.08%
NET CHANGE
Cash From Operating Activities -14.33M -18.01M -13.25M
Cash From Investing Activities 18.84M 11.72M 5.180M
Cash From Financing Activities 170.0K 1.130M 2.130M
Net Change In Cash 4.680M -5.160M -5.940M
YoY Change -178.79% -81.75% -36.61%
FREE CASH FLOW
Cash From Operating Activities -$14.33M -$18.01M -$13.25M
Capital Expenditures -$160.0K -$140.0K -$910.0K
Free Cash Flow -$14.17M -$17.87M -$12.34M
YoY Change 14.83% 27.73% -2.76%

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CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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CY2018Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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axdx License Agreement
LicenseAgreement
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;color:#000000;font-style:normal;font-weight:bold;text-decoration:none;">NOTE 9. LICENSE AGREEMENTS AND GRANTS</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">National Institute of Health Grant</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In February 2015, the National Institute of Health awarded Denver Health and the Company a </font><font style="font-family:Arial;font-size:10pt;">five</font><font style="font-family:Arial;font-size:10pt;">-year, </font><font style="font-family:Arial;font-size:10pt;">$5.0 million</font><font style="font-family:Arial;font-size:10pt;"> grant to develop a fast and reliable identification and categorical susceptibility test for carbepenem-resistant Enterobacteriaceae directly from whole blood. The cumulative amount awarded to date under these subawards is </font><font style="font-family:Arial;font-size:10pt;">$1.1 million</font><font style="font-family:Arial;font-size:10pt;">. The amounts invoiced for the </font><font style="font-family:Arial;font-size:10pt;">three months ended</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> were </font><font style="font-family:Arial;font-size:10pt;">$69,000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$180,000</font><font style="font-family:Arial;font-size:10pt;">, respectively, and for the </font><font style="font-family:Arial;font-size:10pt;">nine months ended</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2017</font><font style="font-family:Arial;font-size:10pt;"> were </font><font style="font-family:Arial;font-size:10pt;">$167,000</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$183,000</font><font style="font-family:Arial;font-size:10pt;">, respectively.</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">Arizona Commerce Authority</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In August 2012, the Company entered into a Grant Agreement (the &#8220;Grant Agreement&#8221;) with the Arizona Commerce Authority, an agency of the State of Arizona (the &#8220;Authority&#8221;), pursuant to which the Authority provided certain state and county sponsored incentives for the Company relocating its corporate headquarters to, and expanding its business within, the State of Arizona (the &#8220;Project&#8221;). Pursuant to the Grant Agreement, the Authority provided a total grant in the amount of </font><font style="font-family:Arial;font-size:10pt;">$1.0 million</font><font style="font-family:Arial;font-size:10pt;"> (the &#8220;Grant&#8221;). The Grant was paid in </font><font style="font-family:Arial;font-size:10pt;">four</font><font style="font-family:Arial;font-size:10pt;"> installments, upon the achievement of the following milestones:</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;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:Arial;font-size:10pt;">Milestone 1 &#8211; Relocation of Company&#8217;s operations and corporate headquarters to Arizona and creation of </font><font style="font-family:Arial;font-size:10pt;">15</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (as defined below).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;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:Arial;font-size:10pt;">Milestone 2 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">30</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestone 1).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;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:Arial;font-size:10pt;">Milestone 3 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">40</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestones 1 and 2).</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:0px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:72px;" 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:48px;"><font style="font-family:Arial;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:Arial;font-size:10pt;">Milestone 4 &#8211; Creation of </font><font style="font-family:Arial;font-size:10pt;">65</font><font style="font-family:Arial;font-size:10pt;"> Qualified Jobs (including Qualified Jobs under Milestones 1, 2 and 3) and capital investment of at least </font><font style="font-family:Arial;font-size:10pt;">$4.5 million</font><font style="font-family:Arial;font-size:10pt;">.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:72px;text-indent:-24px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">For purposes of the Grant Agreement, a &#8220;Qualified Job&#8221; was a job which was permanent, full-time, new to Arizona and for which the Company paid an average annual wage of at least </font><font style="font-family:Arial;font-size:10pt;">$63,000</font><font style="font-family:Arial;font-size:10pt;"> and included health insurance benefits, for which the Company paid at least </font><font style="font-family:Arial;font-size:10pt;">65%</font><font style="font-family:Arial;font-size:10pt;"> of the premiums. The Grant Agreement also contained other customary provisions, including representations, warranties and covenants of both parties. As of </font><font style="font-family:Arial;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:Arial;font-size:10pt;">, the full amount was collected and recorded in current deferred revenue and income.</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">In January 2018, the full amount was recognized due to the economic development provisions of the grant being satisfied in full, and the &#8220;claw-back&#8221; provisions expiring. The </font><font style="font-family:Arial;font-size:10pt;">$1.0 million</font><font style="font-family:Arial;font-size:10pt;"> was recognized as an offset to expense. Further details are included in </font><font style="font-family:Arial;font-size:10pt;">Note 10, Deferred Revenue, Income and Remaining Performance Obligations</font><font style="font-family:Arial;font-size:10pt;">.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;text-decoration:none;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of the Company&#8217;s consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to accounts receivable, inventories, property and equipment, intangible assets, accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ materially from those estimates.</font></div></div>

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