2014 Q2 Form 10-Q Financial Statement

#000119312514191561 Filed on May 09, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2014 Q1 2013 Q1
Revenue $4.801M $1.285M $871.4K
YoY Change -11.16% 47.42% -91.59%
Cost Of Revenue $90.00K $70.00K $30.00K
YoY Change 125.0% 133.33% -72.73%
Gross Profit $4.710M $1.220M $840.0K
YoY Change -12.13% 45.24% -91.8%
Gross Profit Margin 98.1% 94.97% 96.39%
Selling, General & Admin $2.930M $2.830M $2.570M
YoY Change 1.03% 10.12% -8.21%
% of Gross Profit 62.21% 231.97% 305.95%
Research & Development $3.329M $3.146M $2.628M
YoY Change 5.13% 19.69% -49.84%
% of Gross Profit 70.68% 257.86% 312.91%
Depreciation & Amortization $30.00K $40.00K $30.00K
YoY Change -25.0% 33.33% 0.0%
% of Gross Profit 0.64% 3.28% 3.57%
Operating Expenses $3.329M $3.146M $2.628M
YoY Change 5.13% 19.69% -67.35%
Operating Profit -$1.545M -$4.753M -$4.357M
YoY Change 118.75% 9.09% -298.97%
Interest Expense $949.7K $951.0K $947.8K
YoY Change -0.84% 0.33% 3059.34%
% of Operating Profit
Other Income/Expense, Net -$351.0K -$810.6K -$604.9K
YoY Change -40.27% 34.0%
Pretax Income -$1.900M -$5.560M -$4.960M
YoY Change 47.29% 12.1% -322.42%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$1.896M -$5.564M -$4.962M
YoY Change 46.52% 12.12% -322.95%
Net Earnings / Revenue -39.48% -433.11% -569.44%
Basic Earnings Per Share
Diluted Earnings Per Share -$110.5K -$323.6K -$309.6K
COMMON SHARES
Basic Shares Outstanding 85.95M shares 85.95M shares 80.10M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q2 2014 Q1 2013 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $55.80M $57.80M $50.50M
YoY Change -2.28% 14.46% 12.22%
Cash & Equivalents $10.16M $7.908M $9.719M
Short-Term Investments $45.60M $49.90M $40.80M
Other Short-Term Assets $400.0K $500.0K $400.0K
YoY Change 0.0% 25.0% 0.0%
Inventory
Prepaid Expenses
Receivables $4.843M $1.369M $800.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $60.99M $59.65M $51.70M
YoY Change 4.39% 15.37% 13.13%
LONG-TERM ASSETS
Property, Plant & Equipment $439.4K $408.6K $400.0K
YoY Change -12.28% 2.16% 0.0%
Goodwill $8.982M $8.982M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments $3.300M $6.100M $3.700M
YoY Change 64.86%
Other Assets $78.31K $91.17K $300.0K
YoY Change -39.66% -69.61% 50.0%
Total Long-Term Assets $12.91M $15.72M $13.40M
YoY Change 32.01% 17.28% 39.58%
TOTAL ASSETS
Total Short-Term Assets $60.99M $59.65M $51.70M
Total Long-Term Assets $12.91M $15.72M $13.40M
Total Assets $73.90M $75.36M $65.10M
YoY Change 8.35% 15.77% 17.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.849M $2.545M $2.200M
YoY Change 10.51% 15.68% -15.38%
Accrued Expenses $1.510M $1.246M $1.200M
YoY Change 6.37% 3.85% 9.09%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $5.499M $3.392M $300.0K
YoY Change 302.06% 1030.81%
Total Short-Term Liabilities $9.925M $7.809M $3.600M
YoY Change 85.0% 116.91% -5.26%
LONG-TERM LIABILITIES
Long-Term Debt $24.37M $26.82M $30.00M
YoY Change -16.04% -10.59%
Other Long-Term Liabilities $191.1K $194.7K $1.200M
YoY Change -4.03% -83.77% -70.0%
Total Long-Term Liabilities $24.56M $27.02M $31.20M
YoY Change -15.96% -13.41% 680.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.925M $7.809M $3.600M
Total Long-Term Liabilities $24.56M $27.02M $31.20M
Total Liabilities $34.49M $34.83M $34.80M
YoY Change -2.7% 0.08% 351.95%
SHAREHOLDERS EQUITY
Retained Earnings -$768.3M -$766.4M
YoY Change 1.79%
Common Stock $872.3K $871.7K
YoY Change 5.21%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.524M $1.524M
YoY Change 0.0%
Treasury Stock Shares 1.223M shares 1.223M shares
Shareholders Equity $39.41M $40.54M $30.20M
YoY Change
Total Liabilities & Shareholders Equity $73.90M $75.36M $65.10M
YoY Change 8.35% 15.77% 17.72%

Cashflow Statement

Concept 2014 Q2 2014 Q1 2013 Q1
OPERATING ACTIVITIES
Net Income -$1.896M -$5.564M -$4.962M
YoY Change 46.52% 12.12% -322.95%
Depreciation, Depletion And Amortization $30.00K $40.00K $30.00K
YoY Change -25.0% 33.33% 0.0%
Cash From Operating Activities -$4.730M -$5.310M -$4.330M
YoY Change -15866.67% 22.63% -209.9%
INVESTING ACTIVITIES
Capital Expenditures -$60.00K $34.96K
YoY Change -449.57%
Acquisitions
YoY Change
Other Investing Activities $6.960M $3.440M $1.300M
YoY Change -340.83% 164.62% -117.02%
Cash From Investing Activities $6.900M $3.440M $1.260M
YoY Change -338.75% 173.02% -116.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $180.4K $297.7K
YoY Change -39.39%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 80.00K 180.0K 40.00K
YoY Change -97.23% 350.0% -98.78%
NET CHANGE
Cash From Operating Activities -4.730M -5.310M -4.330M
Cash From Investing Activities 6.900M 3.440M 1.260M
Cash From Financing Activities 80.00K 180.0K 40.00K
Net Change In Cash 2.250M -1.690M -3.030M
YoY Change 7400.0% -44.22% 604.65%
FREE CASH FLOW
Cash From Operating Activities -$4.730M -$5.310M -$4.330M
Capital Expenditures -$60.00K $34.96K
Free Cash Flow -$4.670M -$5.310M -$4.365M
YoY Change -15666.67% 21.65% -210.51%

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DocumentFiscalYearFocus
2014
CY2014Q1 dei Document Type
DocumentType
10-Q
CY2014Q1 dei Document Period End Date
DocumentPeriodEndDate
2014-03-31
CY2014Q1 dei Entity Central Index Key
EntityCentralIndexKey
0001108205
CY2014Q1 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2014Q1 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2014Q1 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
-91623
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.71 pure
CY2014Q1 us-gaap Nature Of Operations
NatureOfOperations
<div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="3%" align="left"><b>1.</b></td> <td style="FONT-SIZE: 8pt" valign="top" width="1%">&#xA0;</td> <td valign="top" align="left"><b><u>Nature of Business</u></b></td> </tr> </table> <!-- xbrl,body --> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> Curis, Inc. is an oncology-focused drug development company seeking to develop novel drug candidates for the treatment of human cancers. As used throughout these consolidated financial statements, the term &#x201C;the Company&#x201D; refers to the business of Curis, Inc. and its wholly owned subsidiaries, except where the context otherwise requires, and the term &#x201C;Curis&#x201D; refers to Curis, Inc.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The Company conducts its research and development programs both internally and through strategic collaborations. The Company is leveraging its experience in targeting signaling pathways in seeking to develop drug candidates including CUDC-907, a dual histone deacetylase, or HDAC and phosphoinostide-3 kinase, or PI3K, inhibitor, and CUDC-427, a small molecule antagonist of the inhibitor of apoptosis, or IAP, proteins. Erivedge<sup style="FONT-SIZE: 85%; VERTICAL-ALIGN: top">&#xAE;</sup>, the first and only approved medicine for the treatment of advanced basal cell carcinoma, or BCC, is being commercialized by F. Hoffmann-La Roche Ltd., or Roche, and Genentech Inc., or Genentech, a member of the Roche Group, under a collaboration agreement between Curis and Genentech. The Company&#x2019;s licensee Debiopharm is advancing the clinical development of the heat shock protein 90, or HSP90, inhibitor, Debio 0932.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> 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 States by the Food and Drug Administration, or FDA, and in overseas markets by similar regulatory authorities.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The Company is subject to risks common to companies in the biotechnology industry as well as risk factors that are specific to the Company&#x2019;s business, including, but not limited to: the Company&#x2019;s reliance on Genentech and Roche to successfully commercialize Erivedge; the Company&#x2019;s ability to advance and expand its research and development programs; the Company&#x2019;s ability to obtain adequate financing to fund its operations; the ability of the Company&#x2019;s wholly owned subsidiary, Curis Royalty, LLC, or Curis Royalty, to satisfy the terms of its loan agreement with BioPharma Secured Debt Fund II Sub, S.&#xE0; r.l., a Luxembourg limited liability company managed by Pharmakon Advisors, or BioPharma-II; the Company&#x2019;s ability to obtain and maintain necessary intellectual property protection; development by the Company&#x2019;s competitors of new or better technological innovations; dependence on key personnel; the Company&#x2019;s ability to comply with regulatory requirements; and the Company&#x2019;s ability to execute on its overall business strategies.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The Company&#x2019;s future operating results will largely depend on the magnitude of payments from its current and potential future corporate collaborators and the progress of drug candidates currently in its development pipeline. The results of the Company&#x2019;s operations will vary significantly from year to year and quarter to quarter and depend on a number of factors, including, but not limited to: Roche and Genentech&#x2019;s ability to successfully commercialize Erivedge; positive results in Genentech&#x2019;s ongoing clinical trials; the timing, outcome and cost of the Company&#x2019;s preclinical studies and clinical trials for its drug candidates; and the Company&#x2019;s ability to successfully enter into one or more material licenses or collaboration agreements for its proprietary drug candidates.</p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-LEFT: 4%; MARGIN-TOP: 6pt; TEXT-INDENT: 4%"> The Company anticipates that existing cash, cash equivalents and investments at March&#xA0;31, 2014 should enable it to maintain current and planned operations into 2016. The Company&#x2019;s ability to continue funding its planned operations beyond this period is dependent upon, among other things, the success of its collaborations with Genentech, Debiopharm and the Leukemia&#xA0;&amp; Lymphoma Society, or LLS, including its receipt of additional contingent cash payments under these collaborations; its ability to control expenses and its ability to raise additional funds through equity or debt financings, new collaborations or other sources of financing. The Company may not be able to successfully raise additional funds or enter into or continue any corporate collaborations and the timing, amount and likelihood of the Company receiving payments under such collaborations is highly uncertain. If the Company is unable to obtain adequate financing, the Company may be required to reduce or delay spending on its research and/or development programs.</p> </div>
CY2014Q1 us-gaap Investment Income Interest
InvestmentIncomeInterest
48760
CY2014Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-4753343
CY2014Q1 us-gaap Costs And Expenses
CostsAndExpenses
6037976
CY2014Q1 us-gaap Repayments Of Debt
RepaymentsOfDebt
1322582
CY2014Q1 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-159130
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P60D
CY2014Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
85917592 shares
CY2014Q1 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-5305886
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.97
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
pure
CY2014Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.06
CY2014Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 Segment
CY2014Q1 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
CY2014Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
12706573 shares
CY2014Q1 us-gaap Revenues
Revenues
1284633
CY2014Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
6420
CY2014Q1 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-5559702
CY2014Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
0
CY2014Q1 us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
91623
CY2014Q1 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-108268
CY2014Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-810593
CY2014Q1 us-gaap Net Income Loss
NetIncomeLoss
-5563936
CY2014Q1 us-gaap Accretion Amortization Of Discounts And Premiums Investments
AccretionAmortizationOfDiscountsAndPremiumsInvestments
46102
CY2014Q1 us-gaap Debt Instrument Increase Accrued Interest
DebtInstrumentIncreaseAccruedInterest
968963
CY2014Q1 us-gaap Royalty Revenue
RoyaltyRevenue
1288248
CY2014Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
CY2014Q1 us-gaap Increase Decrease In Restricted Cash
IncreaseDecreaseInRestrictedCash
-13877
CY2014Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
2826898
CY2014Q1 us-gaap Paid In Kind Interest
PaidInKindInterest
-353619
CY2014Q1 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
180431
CY2014Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
88000
CY2014Q1 us-gaap Share Based Compensation
ShareBasedCompensation
743444
CY2014Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
37019
CY2014Q1 us-gaap Adjustments To Reconcile Net Income Loss To Cash Provided By Used In Operating Activities
AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities
258050
CY2014Q1 us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
-1683618
CY2014Q1 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
3441837
CY2014Q1 us-gaap Interest Expense
InterestExpense
950976
CY2014Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
180431
CY2014Q1 us-gaap Royalty Expense
RoyaltyExpense
65148
CY2014Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3145930
CY2014Q1 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
26213
CY2014Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
48011
CY2014Q1 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
16816560
CY2014Q1 cris Share Based Compensation Plans
ShareBasedCompensationPlans
2 Plans
CY2014Q1 cris Available For Sale Securities Weighted Average Maturity
AvailableForSaleSecuritiesWeightedAverageMaturity
P5Y3M18D
CY2014Q1 cris Debt Issuance Costs Gross
DebtIssuanceCostsGross
421715
CY2014Q1 cris Share Based Compensation Arrangement By Share Based Payment Award Options Issued
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsIssued
640000 shares
CY2014Q1 cris Research And Development Revenue
ResearchAndDevelopmentRevenue
-3615
CY2014Q1 cris Class Of Warrant Or Right Expiration Year And Month
ClassOfWarrantOrRightExpirationYearAndMonth
2015-01
CY2014Q1 cris Adjustments To Additional Paid In Capital Share Based Compensation Mark To Market On Stock Options To Non Employees
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationMarkToMarketOnStockOptionsToNonEmployees
55672

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