2024 Q1 Form 10-K Financial Statement

#000110820524000010 Filed on February 08, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $2.086M $2.696M $10.02M
YoY Change -9.19% -6.62% -1.37%
Cost Of Revenue $47.00K $54.00K $212.0K
YoY Change 95.83% -23.94% -17.51%
Gross Profit $2.039M $2.642M $9.811M
YoY Change -10.29% -6.18% -0.95%
Gross Profit Margin 97.75% 98.0% 97.88%
Selling, General & Admin $4.891M $4.877M $18.65M
YoY Change 2.75% 12.63% -5.09%
% of Gross Profit 239.87% 184.6% 190.06%
Research & Development $9.617M $9.964M $39.50M
YoY Change 5.22% 14.45% -8.74%
% of Gross Profit 471.65% 377.14% 402.57%
Depreciation & Amortization $64.00K $65.00K $255.0K
YoY Change 0.0% -29.35% 9.44%
% of Gross Profit 3.14% 2.46% 2.6%
Operating Expenses $9.617M $14.84M $39.50M
YoY Change 5.22% 13.85% -8.74%
Operating Profit -$12.47M -$12.20M -$48.33M
YoY Change 7.24% 19.36% -8.84%
Interest Expense $515.0K $665.0K $2.938M
YoY Change -21.01% 22.69% 162.56%
% of Operating Profit
Other Income/Expense, Net $593.0K -$178.0K $919.0K
YoY Change 772.06% -89.22% -125.16%
Pretax Income -$11.88M -$11.71M -$47.41M
YoY Change 2.74% 3.38% -16.34%
Income Tax
% Of Pretax Income
Net Earnings -$11.90M -$11.71M -$47.40M
YoY Change 2.59% 3.38% -16.4%
Net Earnings / Revenue -570.47% -434.42% -472.91%
Basic Earnings Per Share -$2.05 -$8.96
Diluted Earnings Per Share -$2.05 -$2.03 -$8.96
COMMON SHARES
Basic Shares Outstanding 5.894M shares 5.883M shares 5.293M shares
Diluted Shares Outstanding 5.784M shares 5.293M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $40.72M $56.33M $56.33M
YoY Change -43.25% -34.21% -34.21%
Cash & Equivalents $29.96M $26.68M $26.68M
Short-Term Investments $10.76M $29.65M $29.65M
Other Short-Term Assets $3.192M $1.780M $1.780M
YoY Change -18.92% -49.45% -49.45%
Inventory
Prepaid Expenses
Receivables $2.154M $2.794M $2.794M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $46.07M $60.91M $60.91M
YoY Change -40.95% -33.88% -33.88%
LONG-TERM ASSETS
Property, Plant & Equipment $370.0K $434.0K $3.490M
YoY Change -40.8% -37.01% -31.43%
Goodwill $8.982M $9.000M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.358M $3.358M $3.902M
YoY Change 51.53% 66.07% 46.86%
Total Long-Term Assets $15.96M $16.37M $16.37M
YoY Change -3.48% -2.12% -2.12%
TOTAL ASSETS
Total Short-Term Assets $46.07M $60.91M $60.91M
Total Long-Term Assets $15.96M $16.37M $16.37M
Total Assets $62.02M $77.28M $77.28M
YoY Change -34.4% -29.0% -29.0%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.628M $3.172M $3.172M
YoY Change 37.32% -0.66% -0.66%
Accrued Expenses $6.326M $9.040M $10.35M
YoY Change 48.99% 59.18% 51.69%
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 $11.30M $13.52M $13.52M
YoY Change 40.08% 34.99% 34.99%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $41.26M $44.10M $44.10M
YoY Change -17.29% -15.66% -15.66%
Total Long-Term Liabilities $41.26M $44.10M $44.10M
YoY Change -17.29% -15.66% -15.66%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.30M $13.52M $13.52M
Total Long-Term Liabilities $41.26M $44.10M $44.10M
Total Liabilities $52.56M $57.61M $57.61M
YoY Change -9.3% -7.52% -7.52%
SHAREHOLDERS EQUITY
Retained Earnings -$1.200B -$1.200B
YoY Change 0.0% 9.09%
Common Stock $1.217B $1.216B
YoY Change 1.69% 1.68%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.462M $19.67M $19.67M
YoY Change
Total Liabilities & Shareholders Equity $62.02M $77.28M $77.28M
YoY Change -34.4% -29.0% -29.0%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$11.90M -$11.71M -$47.40M
YoY Change 2.59% 3.38% -16.4%
Depreciation, Depletion And Amortization $64.00K $65.00K $255.0K
YoY Change 0.0% -29.35% 9.44%
Cash From Operating Activities -$13.20M -$10.18M -$38.40M
YoY Change 8.2% -16.99% -29.28%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $18.91M $14.52M $37.79M
YoY Change -27.93% 319.17% 13.0%
Cash From Investing Activities $18.91M $14.52M $37.79M
YoY Change -27.93% 319.17% 14.42%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $14.12M
YoY Change 152.36%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$2.406M -2.120M $7.580M
YoY Change 19.94% 52.74% 774.28%
NET CHANGE
Cash From Operating Activities -$13.20M -10.18M -$38.40M
Cash From Investing Activities $18.91M 14.52M $37.79M
Cash From Financing Activities -$2.406M -2.120M $7.580M
Net Change In Cash $3.275M 2.212M $6.932M
YoY Change -72.79% -121.7% -133.9%
FREE CASH FLOW
Cash From Operating Activities -$13.20M -$10.18M -$38.40M
Capital Expenditures $0.00 $0.00
Free Cash Flow -$10.18M -$38.40M
YoY Change -16.99% -29.82%

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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023 us-gaap Nature Of Operations
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:10.84pt">Nature of Business</span><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:112%">Curis, Inc. is a biotechnology company focused on the development of emavusertib (CA-4948), an orally available, small molecule inhibitor of Interleukin-1 receptor associated kinase, or IRAK4. Throughout these consolidated financial statements, Curis, Inc. and its wholly owned subsidiaries are collectively referred to as “the Company,” “Curis,” “we,” “us,” or “our.”</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 agreement 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%">The Company is party to 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, including emavusertib.</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 continue as a going concern; the Company’s ability to advance and expand its research and development program for emavusertib; the Company’s ability to execute on its overall business strategies; 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 drug candidates; and 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 entities managed by Oberland Capital Management, LLC (the “Purchasers”), and Lind SA LLC (the “Agent”), as collateral agent for the Purchasers.</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 emavusertib 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 candidate.</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 its research and development program and support operations. The Company has incurred losses and cash outflows from operations since its inception. The Company had an accumulated deficit of approximately $1.2 billion as of December 31, 2023 and incurred a net loss of $47.4 million and used $38.4 million of cash in operations for the year ended December 31, 2023. The Company expects to continue to generate operating losses in the foreseeable future. </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 accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has concluded there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. Based on the Company's $56.3 million of existing cash, cash equivalents and investments at December 31, 2023, recurring losses and cash outflows from operations since inception, an expectation of continuing losses and cash outflows from operations for the foreseeable future and the need to raise additional capital to finance our future operations, the Company concluded it does not have sufficient cash on hand to support current operations within the next 12 months from the date of filing this Annual Report on Form 10-K. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. </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 plans to seek additional funding through a number of potential avenues, including private or public equity financings, collaborations, or other strategic transactions as needed. The Company may not be able to obtain funding on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s stockholders. 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 its development of emavusertib, potentially delaying the time to market for or preventing the marketing of emavusertib, which may have a material adverse effect on the Company’s operations and future prospects.</span></div>
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:10.84pt">Use of Estimates and Assumptions</span>The preparation of the Company’s consolidated financial statements in conformity with GAAP 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 the performance obligations under the Company’s collaboration agreements; the collectability of receivables; and the value of certain investments and liabilities. Actual results may differ from such estimates.
CY2023Q4 us-gaap Restricted Cash
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:10.84pt">Concentrations and Significant Customer Information</span><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. </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's focus is primarily on the development of emavusertib, a small molecule IRK4 inhibitor. The Company's customer, Genentech, accounted for 99% and 100% of the total gross revenues for the years ended December 31, 2023 and 2022, 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, 2023 and December 31, 2022 represents amounts due from royalties earned on sales of Erivedge by Genentech and Roche.</span></div>The Company relies on third parties to manufacture and supply emavusertib. In addition, there are a small number of suppliers for certain raw materials that the Company uses to manufacture emavusertib.
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