2017 Q3 Form 10-Q Financial Statement

#000110820517000012 Filed on August 03, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2017 Q2 2016 Q2
Revenue $2.444M $2.061M $1.680M
YoY Change 38.94% 22.68% -19.35%
Cost Of Revenue $120.0K $100.0K $100.0K
YoY Change -99.34% 0.0% 0.0%
Gross Profit $2.320M $1.970M $1.590M
YoY Change -114.22% 23.9% -19.7%
Gross Profit Margin 94.93% 95.58% 94.64%
Selling, General & Admin $3.410M $3.820M $3.440M
YoY Change -27.14% 11.05% 0.88%
% of Gross Profit 146.98% 193.91% 216.35%
Research & Development $13.38M $11.26M $8.822M
YoY Change 97.35% 27.58% 341.1%
% of Gross Profit 576.81% 571.32% 554.84%
Depreciation & Amortization $70.00K $50.00K $60.00K
YoY Change 40.0% -16.67% 50.0%
% of Gross Profit 3.02% 2.54% 3.77%
Operating Expenses $13.38M $11.26M $8.822M
YoY Change 97.35% 27.58% 341.1%
Operating Profit -$14.47M -$13.11M -$10.68M
YoY Change -47.93% 22.74% 44.93%
Interest Expense $1.109M $1.119M $729.0K
YoY Change 68.8% 53.5% -13.52%
% of Operating Profit
Other Income/Expense, Net -$986.0K -$981.0K -$610.0K
YoY Change 77.34% 60.82% -19.63%
Pretax Income -$15.46M -$14.09M -$11.29M
YoY Change -45.47% 24.8% 38.87%
Income Tax
% Of Pretax Income
Net Earnings -$15.46M -$14.09M -$11.29M
YoY Change -45.47% 24.8% 38.89%
Net Earnings / Revenue -632.45% -683.65% -672.02%
Basic Earnings Per Share
Diluted Earnings Per Share -$527.6K -$489.9K -$436.8K
COMMON SHARES
Basic Shares Outstanding 143.9M shares 143.8M shares 129.2M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q3 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $69.20M $51.00M $61.70M
YoY Change 29.59% -17.34% -37.8%
Cash & Equivalents $49.84M $26.68M $8.643M
Short-Term Investments $19.40M $24.40M $53.00M
Other Short-Term Assets $1.400M $1.200M $1.000M
YoY Change 0.0% 20.0% 25.0%
Inventory
Prepaid Expenses
Receivables $2.456M $2.231M $1.869M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $73.00M $54.38M $64.52M
YoY Change 28.86% -15.7% -36.79%
LONG-TERM ASSETS
Property, Plant & Equipment $384.0K $426.0K $451.0K
YoY Change -5.42% -5.54% 39.58%
Goodwill $8.982M $8.982M $8.982M
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.000K $3.000K $3.000K
YoY Change 0.0% 0.0% -95.14%
Total Long-Term Assets $9.369M $9.411M $9.589M
YoY Change -1.83% -1.86% 0.73%
TOTAL ASSETS
Total Short-Term Assets $73.00M $54.38M $64.52M
Total Long-Term Assets $9.369M $9.411M $9.589M
Total Assets $82.37M $63.80M $74.10M
YoY Change 24.44% -13.91% -33.58%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.519M $8.202M $3.875M
YoY Change 28.94% 111.66% 62.45%
Accrued Expenses $2.528M $2.480M $2.012M
YoY Change 8.78% 23.26% 10.67%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $5.116M $3.931M $5.429M
YoY Change 0.24% -27.59% 12.02%
Total Short-Term Liabilities $14.16M $14.61M $11.32M
YoY Change 13.45% 29.14% 25.04%
LONG-TERM LIABILITIES
Long-Term Debt $37.76M $39.95M $16.54M
YoY Change 139.0% 141.57% -24.1%
Other Long-Term Liabilities $0.00 $0.00 $62.00K
YoY Change -100.0% -100.0% -60.89%
Total Long-Term Liabilities $37.76M $39.95M $16.60M
YoY Change 138.39% 140.67% -24.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.16M $14.61M $11.32M
Total Long-Term Liabilities $37.76M $39.95M $16.60M
Total Liabilities $51.92M $54.57M $27.92M
YoY Change 83.32% 95.46% -9.94%
SHAREHOLDERS EQUITY
Retained Earnings -$944.2M -$928.8M -$859.3M
YoY Change 6.38% 8.09% 4.85%
Common Stock $976.2M $939.5M $906.9M
YoY Change 5.31% 3.6% 0.59%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.524M $1.524M $1.524M
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares 1.223M shares 1.223M shares 1.223M shares
Shareholders Equity $30.45M $9.228M $46.19M
YoY Change
Total Liabilities & Shareholders Equity $82.37M $63.80M $74.10M
YoY Change 24.44% -13.91% -33.58%

Cashflow Statement

Concept 2017 Q3 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income -$15.46M -$14.09M -$11.29M
YoY Change -45.47% 24.8% 38.89%
Depreciation, Depletion And Amortization $70.00K $50.00K $60.00K
YoY Change 40.0% -16.67% 50.0%
Cash From Operating Activities -$16.48M -$9.220M -$10.85M
YoY Change 117.41% -15.02% 59.79%
INVESTING ACTIVITIES
Capital Expenditures -$20.00K -$80.00K -$250.0K
YoY Change 100.0% -68.0%
Acquisitions
YoY Change
Other Investing Activities $4.960M -$5.940M $5.370M
YoY Change -75.49% -210.61% -65.86%
Cash From Investing Activities $4.930M -$6.010M $5.130M
YoY Change -75.62% -217.15% -67.39%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 34.71M -510.0K -320.0K
YoY Change -5698.39% 59.38% -65.22%
NET CHANGE
Cash From Operating Activities -16.48M -9.220M -10.85M
Cash From Investing Activities 4.930M -6.010M 5.130M
Cash From Financing Activities 34.71M -510.0K -320.0K
Net Change In Cash 23.16M -15.74M -6.040M
YoY Change 92.68% 160.6% -175.31%
FREE CASH FLOW
Cash From Operating Activities -$16.48M -$9.220M -$10.85M
Capital Expenditures -$20.00K -$80.00K -$250.0K
Free Cash Flow -$16.46M -$9.140M -$10.60M
YoY Change 117.44% -13.77% 56.11%

Facts In Submission

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us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Nature of Business</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Curis, Inc. is a biotechnology company seeking to develop and commercialize innovative drug candidates for the treatment of human cancers. As used throughout these consolidated financial statements, the term &#8220;the Company&#8221; refers to the business of Curis, Inc. and its wholly owned subsidiaries, except where the context otherwise requires, and the term &#8220;Curis&#8221; refers to Curis, Inc.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company conducts its research and development programs both internally and through strategic collaborations. The Company&#8217;s clinical stage drug candidates are CUDC-907, which is being investigated in clinical studies in patients with diffuse large B-cell lymphoma and solid tumors and CA-170, which is being investigated in a Phase 1 study in patients with advanced solid tumors and lymphomas. The Company&#8217;s pipeline includes </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> pre-Investigational New Drug, or IND, stage oncology drug candidates, CA-327 and CA-4948. The Company&#8217;s drug Erivedge&#174; (vismodegib) is approved for the treatment of advanced basal cell carcinoma, or BCC. The Company is party to a collaboration with F. Hoffmann-La Roche Ltd, or Roche, and Genentech Inc., or Genentech, a member of the Roche Group, under which Roche and Genentech are commercializing Erivedge, a first-in-class orally-administered small molecule Hedgehog signaling pathway inhibitor. In addition to BCC, Roche and Genentech are investigating Erivedge in myelofibrosis.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2015, and as amended in September 2016, the Company entered into an exclusive collaboration, option and license agreement focused on immuno-oncology and selected precision oncology targets with Aurigene Discovery Technologies Limited, or Aurigene.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The collaboration with Aurigene is comprised of multiple programs, and Curis has the option to exclusively license each program, including data, intellectual property and compounds associated therewith, once a development candidate is nominated within such program. In October 2015, the Company exercised options to license the first </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> programs under this collaboration. The first licensed program is in the immuno-oncology field and the Company has named CA-170, an orally-available small molecule antagonist of two immune checkpoints, programmed death ligand-1 (PDL1) and V domain Ig suppressor of T cell activation (VISTA), as the development candidate from this program. CA-170 is currently in Phase 1 clinical testing. The second licensed program is in the precision oncology field and the Company has named CA-4948, an orally-available small molecule inhibitor of Interleukin-1 receptor-associated kinase 4 (IRAK4), as the development candidate. In October 2016, the Company exercised its option to license a third program in the collaboration, and designated CA-327, a distinct orally available small molecule antagonist of two immune checkpoints, PDL1 and T-cell immunoglobulin and mucin domain containing protein-3 (TIM3), as the development candidate from this program. The Company expects to file IND applications with the United States Food and Drug Administration, or FDA, for clinical testing of CA-4948 in the third quarter of 2017 and CA-327 in first quarter of 2018.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company operates in a single reportable segment, which is the research and development of innovative cancer therapeutics. The Company expects that any products that are successfully developed and commercialized would be used in the health care industry and would be regulated in the United&#160;States by the FDA and in overseas markets by similar regulatory authorities.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is subject to risks common to companies in the biotechnology industry as well as risks that are specific to the Company&#8217;s business, including, but not limited to: the Company&#8217;s ability to advance and expand its research and development programs; the Company&#8217;s reliance on Aurigene to successfully discover and preclinically develop drug candidates under the parties&#8217; collaboration agreement; the Company&#8217;s reliance on Roche and Genentech to successfully commercialize Erivedge in the approved indication of advanced BCC and to progress its clinical development in indications other than BCC; the Company&#8217;s ability to obtain adequate financing to fund its operations; the ability of the Company and its wholly owned subsidiary, Curis Royalty, LLC, or Curis Royalty, to satisfy the terms of its credit agreement with HealthCare Royalty Partners III, L.P., a Delaware limited partnership managed by Healthcare Royalty Management, LLC, or HealthCare Royalty; the Company&#8217;s ability to obtain and maintain necessary intellectual property protection; development by the Company&#8217;s competitors of new or better technological innovations; dependence on key personnel; the Company&#8217;s ability to comply with regulatory requirements; and the Company&#8217;s ability to execute on its overall business strategies.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s future operating results will largely depend on the progress of drug candidates currently in its development pipeline and the magnitude of payments that it may receive and makes under its current and potential future collaborations. The results of the Company&#8217;s operations may vary significantly from year to year and quarter to quarter and depend on a number of factors, including, but not limited to: the timing, outcome and cost of the Company&#8217;s preclinical studies and clinical trials for its drug candidates; Aurigene&#8217;s ability to successfully discover and develop preclinical programs under the Company&#8217;s collaboration with Aurigene, as well as the Company&#8217;s decision to exclusively license and further develop programs under this collaboration; Roche and Genentech&#8217;s ability to successfully commercialize Erivedge; and positive results in Roche and Genentech&#8217;s ongoing clinical trials.</font></div><div style="line-height:120%;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company has incurred losses and negative cash flows from operations since its inception. As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company had an accumulated deficit of approximately </font><font style="font-family:inherit;font-size:10pt;">$928.8 million</font><font style="font-family:inherit;font-size:10pt;">. The Company anticipates that its </font><font style="font-family:inherit;font-size:10pt;">$51.0 million</font><font style="font-family:inherit;font-size:10pt;"> of existing cash, cash equivalents and investments at </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> should enable it to maintain its planned operations into 2018. In order to ensure adequate cash resources for 12 months from the issuance date of these financial statements, the Company will reduce or delay spending on its research and development programs and operating expenses to the extent it is unable to raise additional financing through its current </font><font style="font-family:inherit;font-size:10pt;">$30.0 million</font><font style="font-family:inherit;font-size:10pt;"> at-the-market sale agreement with Cowen and Company, LLC, or Cowen or other potential financing.&#160;Accordingly, the inability to obtain additional funds in the next 12 months would have a negative impact on the Company&#8217;s financial condition and ability to pursue its business strategies. The Company&#8217;s ability to raise additional funds will depend on financial, economic and market conditions, many of which are outside of its control, and it may be unable to raise financing when needed, or on terms favorable to the Company.</font></div></div>

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