2015 Q4 Form 10-Q Financial Statement

#000119312515371270 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $2.092M $2.045M $1.765M
YoY Change 4.98% 15.87% -75.5%
Cost Of Revenue $100.0K $120.0K $90.00K
YoY Change 11.11% 33.33% 80.0%
Gross Profit $1.990M $1.930M $1.680M
YoY Change 4.74% 14.88% -76.5%
Gross Profit Margin 95.12% 94.38% 95.19%
Selling, General & Admin $2.940M $2.770M $2.720M
YoY Change -3.92% 1.84% -4.56%
% of Gross Profit 147.74% 143.52% 161.9%
Research & Development $12.29M $4.001M $3.705M
YoY Change 236.71% 7.98% -11.16%
% of Gross Profit 617.59% 207.31% 220.56%
Depreciation & Amortization $40.00K $40.00K $40.00K
YoY Change -20.0% 0.0% 33.33%
% of Gross Profit 2.01% 2.07% 2.38%
Operating Expenses $15.24M $4.001M $3.705M
YoY Change 127.12% 7.98% -11.16%
Operating Profit -$13.25M -$4.844M -$4.753M
YoY Change 175.32% 1.91% -3745.86%
Interest Expense -$760.0K $827.0K $933.9K
YoY Change -13.64% -11.45% -3.18%
% of Operating Profit
Other Income/Expense, Net $550.0K -$699.0K -$827.1K
YoY Change -15.49% -58.61%
Pretax Income -$13.46M -$5.540M -$5.580M
YoY Change 136.56% -0.72% 198.4%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$13.46M -$5.543M -$5.580M
YoY Change 136.62% -0.67% 198.75%
Net Earnings / Revenue -643.45% -271.05% -316.18%
Basic Earnings Per Share
Diluted Earnings Per Share -$523.5K -$215.7K -$324.4K
COMMON SHARES
Basic Shares Outstanding 128.4M shares 129.6M shares 86.00M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $82.20M $93.50M $54.60M
YoY Change 65.06% 71.25% -13.61%
Cash & Equivalents $33.09M $28.66M $7.933M
Short-Term Investments $49.10M $64.80M $46.70M
Other Short-Term Assets $1.200M $800.0K $700.0K
YoY Change 140.0% 14.29% 40.0%
Inventory
Prepaid Expenses
Receivables $2.106M $2.318M $1.839M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $85.50M $96.61M $57.11M
YoY Change 63.75% 69.17% -12.0%
LONG-TERM ASSETS
Property, Plant & Equipment $278.0K $315.5K $407.4K
YoY Change -31.82% -22.56% -12.86%
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 $1.500M
YoY Change -100.0% -100.0% -61.54%
Other Assets $51.00K $56.03K $77.56K
YoY Change -24.49% -27.76% -33.66%
Total Long-Term Assets $9.464M $9.506M $11.10M
YoY Change -8.99% -14.37% -18.7%
TOTAL ASSETS
Total Short-Term Assets $85.50M $96.61M $57.11M
Total Long-Term Assets $9.464M $9.506M $11.10M
Total Assets $94.97M $106.1M $68.21M
YoY Change 51.67% 55.57% -13.16%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.217M $2.569M $2.371M
YoY Change 79.51% 8.34% 3.52%
Accrued Expenses $1.934M $1.874M $1.942M
YoY Change -3.67% -3.5% -1.77%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.607M $4.860M $5.522M
YoY Change -19.32% -11.97% 280.81%
Total Short-Term Liabilities $10.76M $9.303M $9.835M
YoY Change 6.87% -5.4% 72.01%
LONG-TERM LIABILITIES
Long-Term Debt $19.56M $20.67M $23.54M
YoY Change -13.42% -12.2% -19.19%
Other Long-Term Liabilities $139.0K $148.7K $187.4K
YoY Change -20.12% -20.64% -5.3%
Total Long-Term Liabilities $19.70M $20.82M $23.73M
YoY Change -13.47% -12.27% -19.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.76M $9.303M $9.835M
Total Long-Term Liabilities $19.70M $20.82M $23.73M
Total Liabilities $30.46M $30.12M $33.56M
YoY Change -7.23% -10.26% -9.23%
SHAREHOLDERS EQUITY
Retained Earnings -$838.5M -$825.1M -$773.9M
YoY Change 7.57% 6.62% 2.28%
Common Stock $904.5M $902.5M $872.3K
YoY Change 11.55% 103369.27% 2.2%
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 $64.51M $75.99M $34.65M
YoY Change
Total Liabilities & Shareholders Equity $94.97M $106.1M $68.21M
YoY Change 51.67% 55.57% -13.16%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income -$13.46M -$5.543M -$5.580M
YoY Change 136.62% -0.67% 198.75%
Depreciation, Depletion And Amortization $40.00K $40.00K $40.00K
YoY Change -20.0% 0.0% 33.33%
Cash From Operating Activities -$10.86M -$4.480M -$2.080M
YoY Change 131.56% 115.38% -870.37%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$40.00K -$10.00K
YoY Change -100.0% 300.0% -90.0%
Acquisitions
YoY Change
Other Investing Activities $15.66M $2.800M $690.0K
YoY Change 196.59% 305.8% -111.58%
Cash From Investing Activities $15.66M $2.760M $680.0K
YoY Change 198.29% 305.88% -111.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -370.0K -1.110M -820.0K
YoY Change -50.0% 35.37% -108.35%
NET CHANGE
Cash From Operating Activities -10.86M -4.480M -2.080M
Cash From Investing Activities 15.66M 2.760M 680.0K
Cash From Financing Activities -370.0K -1.110M -820.0K
Net Change In Cash 4.430M -2.830M -2.220M
YoY Change -2561.11% 27.48% -155.09%
FREE CASH FLOW
Cash From Operating Activities -$10.86M -$4.480M -$2.080M
Capital Expenditures $0.00 -$40.00K -$10.00K
Free Cash Flow -$10.86M -$4.440M -$2.070M
YoY Change 132.55% 114.49% -659.46%

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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: 62px; 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 condensed 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: 62px; 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, that is being investigated in clinical studies in patients with lymphomas and solid tumors.</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: 62px; 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&#xA0;precision oncology targets with Aurigene Discovery Technologies Limited, or Aurigene (see Note 4(b)). The collaboration is comprised of multiple programs, in which Curis has the option to exclusively license compounds once a development candidate is nominated within each respective program. In October 2015, the Company exercised options to license&#xA0;the first two programs under this collaboration. The first licensed program is focused on the development of orally-available small&#xA0;molecule antagonists of programmed death -1 (PD-1) and V-domain Ig suppressor of T cell activation (VISTA) in the immuno-oncology field. The Company has named CA-170, a PD-L1/VISTA antagonist, as the development candidate from this program. The second licensed program is focused on orally-available small molecule inhibitors of Interleukin-1&#xA0;<font style="WHITE-SPACE: nowrap">receptor-associated</font>&#xA0;kinase 4 (IRAK4) in the precision oncology field. In addition, in October 2015 the Company selected a second preclinical program within the immuno-oncology part of the collaboration, the third overall collaboration program, that is focused on evaluating small molecule antagonists with dual PD-1 and T-cell immunoglobulin and mucin domain containing protein-3 (TIM-3) targeting properties.</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: 62px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company is also party to a collaboration with F. Hoffmann-La Roche Ltd, or Roche, and Genentech Inc., or Genentech, a member of the Roche Group, under which Roche and Genentech are commercializing Erivedge&#xAE; (vismodegib), a first-in-class orally-administered small molecule Hedgehog signaling pathway inhibitor, in advanced basal cell carcinoma, or BCC. Roche and Genentech are continuing to develop Erivedge in less severe forms of BCC and have communicated plans to develop Erivedge 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: 62px; 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 it licenses under the collaboration with Aurigene. As such, the Company 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: 62px; 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: 62px; 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 ability to advance and expand its research and development programs; 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 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: 62px; 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 progress of drug candidates currently in its development pipeline and the magnitude of payments that it receives and makes under its current and potential future corporate collaborations. The results of the Company&#x2019;s operations may 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&#x2019;s preclinical studies and clinical trials for its drug candidates; 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; 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: 0pt; WHITE-SPACE: normal; TEXT-TRANSFORM: none; WORD-SPACING: 0px; COLOR: rgb(0,0,0); FONT: 10pt 'Times New Roman'; MARGIN-LEFT: 62px; WIDOWS: 1; MARGIN-TOP: 6pt; LETTER-SPACING: normal; TEXT-INDENT: 4%; -webkit-text-stroke-width: 0px"> The Company anticipates that existing cash, cash equivalents and investments at September&#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, its ability to control expenses and its ability to raise additional funds through equity or debt financings, the success of its collaboration with Genentech, including its receipt of additional contingent cash payments under this collaboration, 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>
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The term of the collaboration agreement began 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.
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