2021 Q4 Form 10-K Financial Statement

#000110820522000002 Filed on February 24, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 2020 Q4
Revenue $3.135M $10.65M $3.024M
YoY Change 3.67% -1.72% -8.0%
Cost Of Revenue $157.0K $533.0K $150.0K
YoY Change 4.67% 0.57% -6.25%
Gross Profit $2.978M $10.12M $2.870M
YoY Change 3.76% -1.79% -8.31%
Gross Profit Margin 94.99% 94.99% 94.91%
Selling, General & Admin $4.773M $17.30M $3.540M
YoY Change 34.83% 42.6% 18.0%
% of Gross Profit 160.28% 170.99% 123.34%
Research & Development $10.77M $34.88M $5.610M
YoY Change 92.01% 51.22% -24.8%
% of Gross Profit 361.72% 344.84% 195.47%
Depreciation & Amortization $38.00K $158.0K $20.00K
YoY Change 90.0% 12.86% -33.33%
% of Gross Profit 1.28% 1.56% 0.7%
Operating Expenses $15.55M $34.88M $9.150M
YoY Change 69.89% 51.22% -12.52%
Operating Profit -$12.57M -$42.07M -$6.275M
YoY Change 100.27% 68.95% -14.44%
Interest Expense $53.00K $0.00 $10.00K
YoY Change 430.0% -90.0%
% of Operating Profit
Other Income/Expense, Net -$1.106M -$3.371M -$1.250M
YoY Change -11.52% -32.71% -9.42%
Pretax Income -$13.62M -$45.44M -$7.520M
YoY Change 81.12% 51.91% -12.66%
Income Tax
% Of Pretax Income
Net Earnings -$13.62M -$45.40M -$7.517M
YoY Change 81.19% 51.8% -12.68%
Net Earnings / Revenue -434.45% -426.33% -248.58%
Basic Earnings Per Share -$0.50
Diluted Earnings Per Share -$148.7K -$0.50 -$113.9K
COMMON SHARES
Basic Shares Outstanding 91.61M shares 91.57M shares 58.82M shares
Diluted Shares Outstanding 91.57M shares

Balance Sheet

Concept 2021 Q4 2021 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $115.9M $115.9M $168.5M
YoY Change -31.23% -31.23% 721.95%
Cash & Equivalents $40.01M $40.01M $129.6M
Short-Term Investments $75.87M $75.87M $38.90M
Other Short-Term Assets $3.267M $3.267M $1.200M
YoY Change 172.25% 172.25% -7.69%
Inventory
Prepaid Expenses
Receivables $3.224M $3.224M $3.043M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $122.4M $122.4M $172.8M
YoY Change -29.16% -29.18% 590.93%
LONG-TERM ASSETS
Property, Plant & Equipment $505.0K $6.254M $663.0K
YoY Change -23.83% -13.14% 330.52%
Goodwill $8.982M $9.000M
YoY Change -0.2% 0.0%
Intangibles
YoY Change
Long-Term Investments $23.96M $23.96M $14.60M
YoY Change 64.14% 64.14%
Other Assets $0.00 $726.0K $3.000K
YoY Change -100.0% -9.25% 0.0%
Total Long-Term Assets $39.93M $39.93M $31.61M
YoY Change 26.32% 26.35% 212.81%
TOTAL ASSETS
Total Short-Term Assets $122.4M $122.4M $172.8M
Total Long-Term Assets $39.93M $39.93M $31.61M
Total Assets $162.3M $162.3M $204.4M
YoY Change -20.58% -20.6% 482.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.417M $6.417M $4.166M
YoY Change 54.03% 52.79% -6.7%
Accrued Expenses $6.339M $7.021M $3.625M
YoY Change 74.87% 30.02% 89.79%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $557.0K
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $13.44M $13.44M $10.08M
YoY Change 33.33% 33.05% 54.09%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $334.0K
YoY Change -100.0% -100.0%
Other Long-Term Liabilities $0.00 $58.16M $334.0K
YoY Change -100.0% -8.13%
Total Long-Term Liabilities $0.00 $58.16M $668.0K
YoY Change -100.0% -8.56%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.44M $13.44M $10.08M
Total Long-Term Liabilities $0.00 $58.16M $668.0K
Total Liabilities $71.59M $71.59M $73.69M
YoY Change -2.84% -2.86% 6.77%
SHAREHOLDERS EQUITY
Retained Earnings -$1.092B -$1.047B
YoY Change 4.34% 2.94%
Common Stock $1.183B $1.178B
YoY Change 0.47% 19.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $90.71M $90.71M $130.7M
YoY Change
Total Liabilities & Shareholders Equity $162.3M $162.3M $204.4M
YoY Change -20.58% -20.6% 482.1%

Cashflow Statement

Concept 2021 Q4 2021 2020 Q4
OPERATING ACTIVITIES
Net Income -$13.62M -$45.40M -$7.517M
YoY Change 81.19% 51.8% -12.68%
Depreciation, Depletion And Amortization $38.00K $158.0K $20.00K
YoY Change 90.0% 12.86% -33.33%
Cash From Operating Activities -$8.171M -$37.60M -$5.720M
YoY Change 42.85% 46.08% 2.14%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$20.00K
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities -$3.523M -$47.90M -$53.45M
YoY Change -93.41% -0.98% -3570.78%
Cash From Investing Activities -$3.523M -$47.90M -$53.47M
YoY Change -93.41% -2.35% -3549.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.312M -$4.172M 165.2M
YoY Change -100.79% -102.21% -15687.74%
NET CHANGE
Cash From Operating Activities -8.171M -$37.60M -5.720M
Cash From Investing Activities -3.523M -$47.90M -53.47M
Cash From Financing Activities -1.312M -$4.172M 165.2M
Net Change In Cash -13.01M -$89.69M 106.0M
YoY Change -112.27% -178.65% -2175.15%
FREE CASH FLOW
Cash From Operating Activities -$8.171M -$37.60M -$5.720M
Capital Expenditures $0.00 $0.00 -$20.00K
Free Cash Flow -$8.171M -$37.60M -$5.700M
YoY Change 43.35% 42.34% 1.79%

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CY2021 us-gaap Nature Of Operations
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Nature of Business<div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Curis, Inc. is a biotechnology company focused on the development of first-in-class and innovative therapeutics for the treatment of cancer. Throughout these consolidated financial statements, Curis, Inc. and our wholly owned subsidiaries are collectively referred to as “the Company,” “Curis,” “we,” “us,” or “our.”</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company conducts its research and development programs both internally and through strategic collaborations. The Company’s clinical stage drug candidates include emavusertib, previously CA-4948, an orally available small molecule inhibitor of Interleukin-1 receptor associated kinase 4 (“IRAK4”); CI-8993, a monoclonal antibody designed to antagonize the V-domain Ig suppressor of T cell activation (“VISTA”) signaling pathway; fimepinostat, a small molecule that potently inhibits the activity of histone deacetylase and phosphotidyl-inositol 3 kinase enzymes; and CA-170, a small molecule antagonist of VISTA and PDL1.</span></div><div style="margin-top:9pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is party to a collaboration with Genentech Inc. (“Genentech”), a member of the Roche Group, under which Genentech and F. Hoffmann-La Roche Ltd (“Roche”) are commercializing Erivedge® (vismodegib), a first-in-class orally administered small molecule Hedgehog signaling pathway antagonist. Erivedge is approved for the treatment of advanced basal cell carcinoma (“BCC”).</span></div><div style="margin-top:9pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In January 2015, the Company entered into an exclusive collaboration agreement with Aurigene Discovery Technologies Limited (“Aurigene”) for the discovery, development and commercialization of small molecule compounds in the areas of immuno-oncology and precision oncology, which was amended in September 2016 and February 2020. </span></div><div style="text-indent:22.5pt"><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In addition, the Company is a party to an option and license agreement with ImmuNext. Pursuant to the terms of the option and license agreement, the Company has an option, exercisable for a specified period as set forth in the option and license agreement, to obtain an exclusive license to develop and commercialize certain VISTA antagonizing compounds, including ImmuNext's lead compound, CI-8993, and products containing these compounds in the field of oncology.</span></div><div style="text-indent:22.5pt"><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The COVID-19 pandemic has had and may continue to have an adverse effect on the Company’s business, financial condition, results of operations, and prospects. With respect to ongoing clinical trials, the anticipated timing of enrollment and the overall timelines of the trials have experienced delays and could be further delayed to the extent the Company experiences further delays in enrollment due to the COVID-19 pandemic. The Company’s ability to collect patient data in a timely fashion may also be impacted. The Company also experienced delays in closing down its clinical trial sites related to its fimepinostat and CA-170 trials due to restrictions on non-essential workers imposed at those sites in response to COVID-19, which delayed the winding down of these trials. In addition, the Company and its collaborators, third-party contract manufacturers, contract research organizations and clinical sites could experience delays or disruptions in supply and release of product candidates and/or procuring items that are essential for its research and development activities, including, for example, raw materials used in the manufacturing of its product candidates, basic medical and laboratory supplies used in its clinical trials or preclinical studies, or animals that are used for preclinical testing, in each case, for which there may be shortages or supply chain disruptions as a result of the pandemic. The Company cannot be certain what the overall impact of the COVID-19 pandemic will be on its business.</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is subject to risks common to companies in the biotechnology industry as well as risks that are specific to the Company’s business, including, but not limited to: the Company’s ability to obtain adequate financing to fund its operations; the Company’s ability to advance and expand its research and development programs; the impacts of the COVID-19 pandemic and responsive actions related thereto; the Company’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 ability of the Company and its wholly owned subsidiary, Curis Royalty, LLC (“Curis Royalty”) to satisfy the terms of the royalty interest purchase agreement (the “Oberland Purchase Agreement”) with TPC Investments I LP and TPC Investments II LP ("the Purchasers"), each of which is a Delaware limited partnership managed by Oberland Capital Management, LLC, and Lind SA LLC ("the Agent"), a Delaware limited liability company managed by Oberland Capital Management, LLC, as collateral agent for the Purchasers; the Company’s ability to obtain and maintain necessary intellectual property protection; development by the Company’s competitors of new or better technological innovations; the Company’s ability to comply with regulatory requirements; the Company's ability to obtain and maintain applicable regulatory approvals and commercialize any approved product candidates and the Company’s ability to execute on its overall business strategies.</span></div><div style="margin-top:9pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’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 make under its current and potential future collaborations. The results of the Company’s operations have varied and will likely continue to vary significantly from year to </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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’s preclinical studies and clinical trials for its drug candidates.</span></div><div style="margin-top:9pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company will require substantial funds to maintain research and development programs and support operations. The Company has incurred losses and negative cash flows from operations since its inception. As of December 31, 2021, the Company had an accumulated deficit of approximately $1.1 billion, incurred a loss of $45.4 million and used $37.6 million of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company anticipates that its $139.8 million of existing cash, cash equivalents and investments at December 31, 2021 will be sufficient to fund operations for at least 12 months from the date of issuance of these financial statements. </span></div><div style="margin-top:9pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s ability to raise additional funds will depend, among other factors, 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. If necessary funds are not available, the Company will have to delay, reduce the scope of, or eliminate some of its development programs, potentially delaying the time to market for or preventing the marketing of any of its product candidates.</span></div>
CY2021Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2021 us-gaap Use Of Estimates
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Use of Estimates and Assumptions<div style="margin-top:9pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and disclosure of revenue, expenses and certain assets and liabilities at the balance sheet date. Such estimates include revenue recognition, including estimates related to the performance obligations under the Company’s collaboration agreements; the estimated repayment term of the Company’s debt and related short and long-term classification; the collectability of receivables; the carrying value of property and equipment and goodwill; the assumptions used in the Company’s valuation of stock-based compensation and the value of certain investments and liabilities. Actual results may differ from such estimates.</span></div><div style="margin-top:9pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The extent to which COVID-19 has had and may continue to have impacts on the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic, the extent to which it has impacted and will continue to impact worldwide macroeconomic conditions including interest rates, employment rates and health insurance coverage, the speed of the anticipated recovery, and governmental and business responses to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2021 and through the date of this report. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods.</span></div>
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CY2021 us-gaap Concentration Risk Credit Risk
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Concentrations and Significant Customer Information<div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company’s credit risk related to investments is reduced as a result of the Company’s policy to limit the amount invested in any one issue. As of December 31, 2021, the Company did not have a material concentration in any single investment. </span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company's operations are located entirely within the U.S. The Company focus is primarily on the development of first-in-class and innovative therapeutics for the treatment of cancer. The Company's customer, Genentech, accounted for 100%, 98%, and 100% of the total gross revenues for the years ending December 31, 2021, 2020, and 2019, respectively.</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s accounts receivable at December 31, 2021 and December 31, 2020 represents amounts due from collaborators, primarily for royalties earned on sales of Erivedge by Genentech and Roche.</span></div>The Company relies on third-parties to supply certain raw materials necessary to produce its drug candidates, including emavusertib (CA-4948) and CI-8993 for preclinical studies and clinical trials. There are a small number of suppliers for certain raw materials that the Company uses to manufacture its drug candidates.
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