2022 Q3 Form 10-Q Financial Statement

#000110820522000009 Filed on August 04, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $2.825M $2.393M $2.057M
YoY Change -7.04% 4.68% -6.03%
Cost Of Revenue $62.00K $42.00K $82.00K
YoY Change -58.94% -63.79% -25.45%
Gross Profit $2.763M $2.351M $1.975M
YoY Change -4.33% 8.34% -5.05%
Gross Profit Margin 97.81% 98.24% 96.01%
Selling, General & Admin $4.556M $5.089M $5.673M
YoY Change 5.12% 25.13% 37.69%
% of Gross Profit 164.89% 216.46% 287.24%
Research & Development $10.81M $12.32M $11.44M
YoY Change 25.7% 40.79% 69.23%
% of Gross Profit 391.35% 524.16% 578.99%
Depreciation & Amortization $61.00K $44.00K $36.00K
YoY Change 69.44% 0.0% -10.0%
% of Gross Profit 2.21% 1.87% 1.82%
Operating Expenses $10.81M $12.32M $11.44M
YoY Change 25.7% 40.79% 69.23%
Operating Profit -$12.61M -$15.06M -$15.13M
YoY Change 25.46% 41.42% 71.97%
Interest Expense $335.0K $162.0K $80.00K
YoY Change 520.37% 179.31% 60.0%
% of Operating Profit
Other Income/Expense, Net -$688.0K -$879.0K -$976.0K
YoY Change -31.41% 367.55% -13.4%
Pretax Income -$13.29M -$15.94M -$16.11M
YoY Change 20.3% 47.08% 62.23%
Income Tax
% Of Pretax Income
Net Earnings -$13.29M -$15.94M -$16.11M
YoY Change 20.3% 47.08% 62.27%
Net Earnings / Revenue -470.58% -666.11% -783.13%
Basic Earnings Per Share -$0.14 -$0.17 -$0.18
Diluted Earnings Per Share -$0.14 -$0.17 -$0.18
COMMON SHARES
Basic Shares Outstanding 91.81M shares 91.65M shares 91.65M shares
Diluted Shares Outstanding 93.79M shares 91.65M shares 91.65M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $98.69M $107.2M $120.7M
YoY Change -23.44% -29.74% -22.86%
Cash & Equivalents $29.85M $34.01M $18.47M
Short-Term Investments $68.84M $73.19M $102.2M
Other Short-Term Assets $4.142M $3.801M $3.426M
YoY Change 34.13% 140.11% 3.82%
Inventory
Prepaid Expenses
Receivables $2.886M $2.395M $2.060M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $105.7M $113.4M $126.1M
YoY Change -21.66% -27.56% -22.07%
LONG-TERM ASSETS
Property, Plant & Equipment $780.0K $789.0K $479.0K
YoY Change 43.65% 36.03% -22.74%
Goodwill $8.982M $8.982M $8.982M
YoY Change 0.0% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0% -100.0% -100.0%
Other Assets $2.022M $635.0K $726.0K
YoY Change
Total Long-Term Assets $17.14M $15.44M $14.60M
YoY Change -53.85% -37.4% -49.18%
TOTAL ASSETS
Total Short-Term Assets $105.7M $113.4M $126.1M
Total Long-Term Assets $17.14M $15.44M $14.60M
Total Assets $122.9M $128.8M $140.7M
YoY Change -28.61% -28.9% -26.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.756M $5.511M $4.281M
YoY Change 64.18% 36.04% 24.85%
Accrued Expenses $6.883M $5.575M $4.586M
YoY Change 29.62% 75.15% 122.41%
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 $13.74M $12.15M $9.691M
YoY Change 45.06% 54.47% 38.62%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $53.37M $54.64M $55.07M
YoY Change -10.61% -10.21% -10.74%
Total Long-Term Liabilities $53.37M $54.64M $55.07M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $13.74M $12.15M $9.691M
Total Long-Term Liabilities $53.37M $54.64M $55.07M
Total Liabilities $67.11M $66.79M $64.77M
YoY Change -2.99% -2.81% -5.7%
SHAREHOLDERS EQUITY
Retained Earnings -$1.100B -$1.100B -$1.100B
YoY Change 0.0% 0.0% 0.0%
Common Stock $1.194B $1.187B $1.185B
YoY Change 1.04% 0.58% 0.52%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $55.75M $62.05M $75.97M
YoY Change
Total Liabilities & Shareholders Equity $122.9M $128.8M $140.7M
YoY Change -28.61% -28.9% -26.16%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$13.29M -$15.94M -$16.11M
YoY Change 20.3% 47.08% 62.27%
Depreciation, Depletion And Amortization $61.00K $44.00K $36.00K
YoY Change 69.44% 0.0% -10.0%
Cash From Operating Activities -$13.12M -$12.13M -$16.80M
YoY Change 36.55% 82.22% 27.48%
INVESTING ACTIVITIES
Capital Expenditures -$52.00K -$353.0K $11.00K
YoY Change
Acquisitions
YoY Change
Other Investing Activities $4.355M $28.69M -$3.072M
YoY Change -137.77% -199.73% -24.52%
Cash From Investing Activities $4.303M $28.34M -$3.083M
YoY Change -137.32% -198.5% -24.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 4.662M -759.0K -$1.648M
YoY Change -587.66% 32.23% 24.0%
NET CHANGE
Cash From Operating Activities -13.12M -12.13M -$16.80M
Cash From Investing Activities 4.303M 28.34M -$3.083M
Cash From Financing Activities 4.662M -759.0K -$1.648M
Net Change In Cash -4.157M 15.45M -$21.55M
YoY Change -81.19% -142.91% 15.97%
FREE CASH FLOW
Cash From Operating Activities -$13.12M -$12.13M -$16.80M
Capital Expenditures -$52.00K -$353.0K $11.00K
Free Cash Flow -$13.07M -$11.78M -$16.81M
YoY Change 36.0% 76.91% 27.56%

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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 Condensed Consolidated Financial Statements, Curis, Inc. and its wholly owned subsidiaries are collectively referred to as “the Company” or “Curis.”</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. The Company's pre-clinical development candidates include CA-327, an orally available small molecule antagonist of PDL1 and TIM3.</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="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 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="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 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 continuing 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: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 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 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:22.5pt"><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 net losses and negative cash flows from operations since its inception. As of June 30, 2022, the Company had an accumulated deficit of $1.1 billion, and for the six months ended June 30, 2022, the Company incurred a net loss of $32.0 million and used $28.9 million of cash in operations. The Company expects to continue to generate operating losses in the foreseeable future. The Company anticipates that its $107.2 million of existing cash, cash equivalents and investments at June 30, 2022 will be sufficient to fund operations for at least 12 months from the date of filing this Quarterly Report on Form 10-Q.</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>
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Use of Estimates and Assumptions<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 preparation of the Company’s Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosure of certain assets and liabilities at the balance sheet date. Such estimates include 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; and 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: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%">These interim results are not necessarily indicative of results to be expected for a full year or subsequent interim periods.</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 continuing COVID-19 pandemic, the extent to which it has impacted and may 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 June 30, 2022 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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SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y6M
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.014
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.025
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.004
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.014
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
1.10
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
1.12
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.07
CY2022Q2 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
16300000 usd
us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P2Y7M20D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
0 usd
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber
0 shares
CY2022Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1966000000 usd
CY2021Q2 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1275000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
3684000000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2374000 usd

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