2015 Q3 Form 10-Q Financial Statement

#000119312515280043 Filed on August 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2014 Q2
Revenue $2.045M $2.083M $4.801M
YoY Change 15.87% -56.62% -11.16%
Cost Of Revenue $120.0K $100.0K $90.00K
YoY Change 33.33% 11.11% 125.0%
Gross Profit $1.930M $1.980M $4.710M
YoY Change 14.88% -57.96% -12.13%
Gross Profit Margin 94.38% 95.06% 98.1%
Selling, General & Admin $2.770M $3.410M $2.930M
YoY Change 1.84% 16.38% 1.03%
% of Gross Profit 143.52% 172.22% 62.21%
Research & Development $4.001M $2.000M $3.329M
YoY Change 7.98% -39.92% 5.13%
% of Gross Profit 207.31% 101.01% 70.68%
Depreciation & Amortization $40.00K $40.00K $30.00K
YoY Change 0.0% 33.33% -25.0%
% of Gross Profit 2.07% 2.02% 0.64%
Operating Expenses $4.001M $2.000M $3.329M
YoY Change 7.98% -39.92% 5.13%
Operating Profit -$4.844M -$7.369M -$1.545M
YoY Change 1.91% 377.02% 118.75%
Interest Expense $827.0K $843.0K $949.7K
YoY Change -11.45% -11.24% -0.84%
% of Operating Profit
Other Income/Expense, Net -$699.0K -$759.0K -$351.0K
YoY Change -15.49% 116.24% -40.27%
Pretax Income -$5.540M -$8.130M -$1.900M
YoY Change -0.72% 327.89% 47.29%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$5.543M -$8.129M -$1.896M
YoY Change -0.67% 328.79% 46.52%
Net Earnings / Revenue -271.05% -390.25% -39.48%
Basic Earnings Per Share
Diluted Earnings Per Share -$215.7K -$316.7K -$110.5K
COMMON SHARES
Basic Shares Outstanding 129.6M shares 128.3M shares 85.95M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $93.50M $99.20M $55.80M
YoY Change 71.25% 77.78% -2.28%
Cash & Equivalents $28.66M $31.49M $10.16M
Short-Term Investments $64.80M $67.70M $45.60M
Other Short-Term Assets $800.0K $800.0K $400.0K
YoY Change 14.29% 100.0% 0.0%
Inventory
Prepaid Expenses
Receivables $2.318M $2.093M $4.843M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $96.61M $102.1M $60.99M
YoY Change 69.17% 67.33% 4.39%
LONG-TERM ASSETS
Property, Plant & Equipment $315.5K $323.1K $439.4K
YoY Change -22.56% -26.46% -12.28%
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 $3.300M
YoY Change -100.0% -100.0%
Other Assets $56.03K $61.72K $78.31K
YoY Change -27.76% -21.19% -39.66%
Total Long-Term Assets $9.506M $9.519M $12.91M
YoY Change -14.37% -26.26% 32.01%
TOTAL ASSETS
Total Short-Term Assets $96.61M $102.1M $60.99M
Total Long-Term Assets $9.506M $9.519M $12.91M
Total Assets $106.1M $111.6M $73.90M
YoY Change 55.57% 50.98% 8.35%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.569M $2.385M $2.849M
YoY Change 8.34% -16.28% 10.51%
Accrued Expenses $1.874M $1.818M $1.510M
YoY Change -3.5% 20.43% 6.37%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.860M $4.846M $5.499M
YoY Change -11.97% -11.86% 302.06%
Total Short-Term Liabilities $9.303M $9.050M $9.925M
YoY Change -5.4% -8.82% 85.0%
LONG-TERM LIABILITIES
Long-Term Debt $20.67M $21.79M $24.37M
YoY Change -12.2% -10.59% -16.04%
Other Long-Term Liabilities $148.7K $158.5K $191.1K
YoY Change -20.64% -17.03% -4.03%
Total Long-Term Liabilities $20.82M $21.95M $24.56M
YoY Change -12.27% -10.64% -15.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.303M $9.050M $9.925M
Total Long-Term Liabilities $20.82M $21.95M $24.56M
Total Liabilities $30.12M $31.00M $34.49M
YoY Change -10.26% -10.12% -2.7%
SHAREHOLDERS EQUITY
Retained Earnings -$825.1M -$819.5M -$768.3M
YoY Change 6.62% 6.67% 1.79%
Common Stock $902.5M $901.6M $872.3K
YoY Change 103369.27% 103265.65% 5.21%
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 $75.99M $80.58M $39.41M
YoY Change
Total Liabilities & Shareholders Equity $106.1M $111.6M $73.90M
YoY Change 55.57% 50.98% 8.35%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$5.543M -$8.129M -$1.896M
YoY Change -0.67% 328.79% 46.52%
Depreciation, Depletion And Amortization $40.00K $40.00K $30.00K
YoY Change 0.0% 33.33% -25.0%
Cash From Operating Activities -$4.480M -$6.790M -$4.730M
YoY Change 115.38% 43.55% -15866.67%
INVESTING ACTIVITIES
Capital Expenditures -$40.00K $0.00 -$60.00K
YoY Change 300.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $2.800M $15.73M $6.960M
YoY Change 305.8% 126.01% -340.83%
Cash From Investing Activities $2.760M $15.73M $6.900M
YoY Change 305.88% 127.97% -338.75%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.110M -920.0K 80.00K
YoY Change 35.37% -1250.0% -97.23%
NET CHANGE
Cash From Operating Activities -4.480M -6.790M -4.730M
Cash From Investing Activities 2.760M 15.73M 6.900M
Cash From Financing Activities -1.110M -920.0K 80.00K
Net Change In Cash -2.830M 8.020M 2.250M
YoY Change 27.48% 256.44% 7400.0%
FREE CASH FLOW
Cash From Operating Activities -$4.480M -$6.790M -$4.730M
Capital Expenditures -$40.00K $0.00 -$60.00K
Free Cash Flow -$4.440M -$6.790M -$4.670M
YoY Change 114.49% 45.4% -15666.67%

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<div> <table style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman'; BORDER-COLLAPSE: collapse; TEXT-TRANSFORM: none; WORD-SPACING: 0px; WIDOWS: 1; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><b>1.</b></td> <td valign="top" align="left"><b><u>Nature of Business</u></b></td> </tr> </table> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> 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 &#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; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company conducts its research and development programs both internally and through strategic collaborations. The Company&#x2019;s most advanced drug candidate is CUDC-907, an orally-available, small molecule inhibitor of histone deacetylase, or HDAC, and phosphatidylinositol-3-kinase, or PI3K enzymes.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> In January 2015, the Company entered into an exclusive collaboration agreement focused on immuno-oncology and selected precision oncology targets with Aurigene Discovery Technologies Limited, or Aurigene (see Note 4(b)). The collaboration provides for inclusion of multiple programs, with Curis having the option to exclusively license compounds once a development candidate is nominated within each respective program. The first two programs under the collaboration are focused on the development of orally-available small molecule antagonists of programmed death ligand-1 (PD-L1) in the immuno-oncology field and orally-available small molecule inhibitors of Interleukin-1 receptor-associated kinase 4 (IRAK4) in the precision oncology field.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company&#x2019;s collaborators, F. Hoffmann-La Roche Ltd, or Roche, and Genentech Inc., or Genentech, a member of the Roche Group, are commercializing Erivedge&#xAE; (vismodegib), a first-in-class orally-administered small molecule Hedgehog pathway inhibitor, in advanced basal cell carcinoma, or BCC. Roche and Genentech are also continuing Erivedge&#x2019;s clinical development in less severe forms of BCC as well as planned development in other non-oncology indications.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company&#x2019;s proprietary pipeline also includes CUDC-427, an orally-available, small molecule antagonist of inhibitor of apoptosis, or IAP proteins, and CUDC-305, a Heat Shock Protein 90, or HSP90, inhibitor. The Company currently intends to utilize its available resources for the continued development of CUDC-907 and drug candidates under a collaboration with Aurigene. As such, Curis is seeking to collaborate with third parties for the further development of CUDC-427 and CUDC-305.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> 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&#xA0;States by the Food and Drug Administration, or FDA, and in overseas markets by similar regulatory authorities.</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company is subject to risks common to companies in the biotechnology industry as well as risk 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 in the approved indication of advanced BCC and to progress its clinical development in indications other than BCC; the Company&#x2019;s reliance on Aurigene to successfully discover and preclinically develop drug candidates under the parties&#x2019; collaboration agreement; 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; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company&#x2019;s future operating results will largely depend on the magnitude of payments that it receives and makes under its current and potential future corporate collaborations 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 Roche and Genentech&#x2019;s ongoing clinical trials; Aurigene&#x2019;s ability to successfully discover and develop preclinical programs under the Company&#x2019;s collaboration with Aurigene, as well as the Company&#x2019;s decision to exclusively license and further develop programs under this collaboration; 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 outlicensing or collaboration agreements for its proprietary drug candidates.</p> <p style="MARGIN-BOTTOM: 0px; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 1px 'Times New Roman'; WIDOWS: 1; MARGIN-TOP: 6px; LETTER-SPACING: normal; TEXT-INDENT: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 56px; WIDOWS: 1; MARGIN-TOP: 0pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company anticipates that existing cash, cash equivalents and investments at June&#xA0;30, 2015 should enable it to maintain current and planned operations into 2017. 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 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>
us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
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dei Document Fiscal Year Focus
DocumentFiscalYearFocus
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dei Amendment Flag
AmendmentFlag
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us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
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AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
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dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0001108205
dei Entity Filer Category
EntityFilerCategory
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dei Entity Registrant Name
EntityRegistrantName
CURIS INC
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dei Document Period End Date
DocumentPeriodEndDate
2015-06-30
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dei Trading Symbol
TradingSymbol
CRIS
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WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Revenue Recognition Milestone Method Milestone
RevenueRecognitionMilestoneMethodMilestone
The Company has agreed to make each of the following one-time payments to Debiopharm (i) $3,000,000 within 30 days after the first dosing of the first patient in the first Phase 3 clinical trial of Debio 0932; and (ii) $10,000,000 within 30 days after receipt of the first marketing approval for Debio 0932 in the United States of America or any specified major European market (whichever occurs first).
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
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us-gaap Number Of Reportable Segments
NumberOfReportableSegments
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CostsAndExpenses
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us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
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cris Class Of Warrant Expired
ClassOfWarrantExpired
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cris Royalties Terms Of Collaboration Agreement
RoyaltiesTermsOfCollaborationAgreement
The term of the collaboration agreement begins upon signing and, unless earlier terminated, will expire upon either (i) 90 days after the completion by Aurigene of its obligations under all research plans if the Company has not exercised the option with respect to at least one program by such time; or (ii) expiration of the last-to-expire royalty term for any and all products.
cris Share Based Compensation Plans
ShareBasedCompensationPlans
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cris Issuance Of Common Stock To Licensees
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cris Compensation Expenses Related To Agreement
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cris Class Of Warrant Or Right Expiration Date
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EarningsPerShareBasicAndDiluted
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