2016 Q4 Form 10-Q Financial Statement

#000162828016020671 Filed on November 03, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $2.362M $1.759M $2.045M
YoY Change 12.91% -13.99% 15.87%
Cost Of Revenue $120.0K $18.08M $120.0K
YoY Change 20.0% 14966.67% 33.33%
Gross Profit $2.240M -$16.32M $1.930M
YoY Change 12.56% -945.6% 14.88%
Gross Profit Margin 94.83% -927.8% 94.38%
Selling, General & Admin $3.610M $4.680M $2.770M
YoY Change 22.79% 68.95% 1.84%
% of Gross Profit 161.16% 143.52%
Research & Development $9.390M $6.781M $4.001M
YoY Change -23.6% 69.48% 7.98%
% of Gross Profit 419.2% 207.31%
Depreciation & Amortization $50.00K $50.00K $40.00K
YoY Change 25.0% 25.0% 0.0%
% of Gross Profit 2.23% 2.07%
Operating Expenses $13.01M $6.781M $4.001M
YoY Change -14.63% 69.48% 7.98%
Operating Profit -$10.76M -$27.79M -$4.844M
YoY Change -18.75% 473.68% 1.91%
Interest Expense -$570.0K $657.0K $827.0K
YoY Change -25.0% -20.56% -11.45%
% of Operating Profit
Other Income/Expense, Net $0.00 -$556.0K -$699.0K
YoY Change -100.0% -20.46% -15.49%
Pretax Income -$11.33M -$28.35M -$5.540M
YoY Change -15.82% 411.73% -0.72%
Income Tax
% Of Pretax Income
Net Earnings -$11.34M -$28.35M -$5.543M
YoY Change -15.79% 411.37% -0.67%
Net Earnings / Revenue -479.89% -1611.43% -271.05%
Basic Earnings Per Share
Diluted Earnings Per Share -$402.5K -$1.073M -$215.7K
COMMON SHARES
Basic Shares Outstanding 140.5M shares 129.5M shares 129.6M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $44.50M $53.40M $93.50M
YoY Change -45.86% -42.89% 71.25%
Cash & Equivalents $26.04M $20.67M $28.66M
Short-Term Investments $18.40M $32.70M $64.80M
Other Short-Term Assets $1.300M $1.400M $800.0K
YoY Change 8.33% 75.0% 14.29%
Inventory
Prepaid Expenses
Receivables $2.459M $1.857M $2.318M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $48.20M $56.65M $96.61M
YoY Change -43.63% -41.36% 69.17%
LONG-TERM ASSETS
Property, Plant & Equipment $413.0K $406.0K $315.5K
YoY Change 48.56% 28.7% -22.56%
Goodwill $9.000M $8.982M $8.982M
YoY Change 0.2% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $0.00
YoY Change -100.0%
Other Assets $3.000K $3.000K $56.03K
YoY Change -94.12% -94.65% -27.76%
Total Long-Term Assets $9.551M $9.544M $9.506M
YoY Change 0.92% 0.4% -14.37%
TOTAL ASSETS
Total Short-Term Assets $48.20M $56.65M $96.61M
Total Long-Term Assets $9.551M $9.544M $9.506M
Total Assets $57.75M $66.19M $106.1M
YoY Change -39.19% -37.62% 55.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.883M $5.056M $2.569M
YoY Change 39.51% 96.81% 8.34%
Accrued Expenses $2.725M $2.324M $1.874M
YoY Change 40.9% 24.02% -3.5%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $4.939M $5.104M $4.860M
YoY Change 7.21% 5.01% -11.97%
Total Short-Term Liabilities $13.55M $12.48M $9.303M
YoY Change 25.92% 34.19% -5.4%
LONG-TERM LIABILITIES
Long-Term Debt $14.92M $15.80M $20.67M
YoY Change -23.71% -23.56% -12.2%
Other Long-Term Liabilities $18.00K $41.00K $148.7K
YoY Change -87.05% -72.44% -20.64%
Total Long-Term Liabilities $14.94M $15.84M $20.82M
YoY Change -24.16% -23.91% -12.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.55M $12.48M $9.303M
Total Long-Term Liabilities $14.94M $15.84M $20.82M
Total Liabilities $28.49M $28.32M $30.12M
YoY Change -6.47% -5.97% -10.26%
SHAREHOLDERS EQUITY
Retained Earnings -$898.9M -$887.6M -$825.1M
YoY Change 7.2% 7.58% 6.62%
Common Stock $929.7M $927.0M $902.5M
YoY Change 2.79% 2.71% 103369.27%
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 $29.45M $37.87M $75.99M
YoY Change
Total Liabilities & Shareholders Equity $57.75M $66.19M $106.1M
YoY Change -39.19% -37.62% 55.57%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income -$11.34M -$28.35M -$5.543M
YoY Change -15.79% 411.37% -0.67%
Depreciation, Depletion And Amortization $50.00K $50.00K $40.00K
YoY Change 25.0% 25.0% 0.0%
Cash From Operating Activities -$9.390M -$7.580M -$4.480M
YoY Change -13.54% 69.2% 115.38%
INVESTING ACTIVITIES
Capital Expenditures -$60.00K -$10.00K -$40.00K
YoY Change -75.0% 300.0%
Acquisitions
YoY Change
Other Investing Activities $14.12M $20.24M $2.800M
YoY Change -9.83% 622.86% 305.8%
Cash From Investing Activities $14.06M $20.22M $2.760M
YoY Change -10.22% 632.61% 305.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 690.0K -620.0K -1.110M
YoY Change -286.49% -44.14% 35.37%
NET CHANGE
Cash From Operating Activities -9.390M -7.580M -4.480M
Cash From Investing Activities 14.06M 20.22M 2.760M
Cash From Financing Activities 690.0K -620.0K -1.110M
Net Change In Cash 5.360M 12.02M -2.830M
YoY Change 20.99% -524.73% 27.48%
FREE CASH FLOW
Cash From Operating Activities -$9.390M -$7.580M -$4.480M
Capital Expenditures -$60.00K -$10.00K -$40.00K
Free Cash Flow -$9.330M -$7.570M -$4.440M
YoY Change -14.09% 70.5% 114.49%

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WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Nature of Business</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Curis, Inc. is a biotechnology company seeking to develop and commercialize innovative drug candidates for the treatment of cancers. As used throughout these consolidated financial statements, the term &#8220;the Company&#8221; refers to the business of Curis, Inc. and its wholly owned subsidiaries, except where the context otherwise requires, and the term &#8220;Curis&#8221; refers to Curis, Inc.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company conducts its research and development programs both internally and through strategic collaborations. The Company&#8217;s most advanced drug candidate is CUDC-907, which is being investigated in clinical studies in patients with diffuse large B-cell lymphoma and solid tumors.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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. In September 2016, the Company entered into an amendment to this agreement, pursuant to which Aurigene received </font><font style="font-family:inherit;font-size:10pt;">10,208,333</font><font style="font-family:inherit;font-size:10pt;"> shares of the Company's common stock in lieu of receiving up to </font><font style="font-family:inherit;font-size:10pt;">$24.5 million</font><font style="font-family:inherit;font-size:10pt;"> of milestone and other payments from Curis (see Note 4(b)). </font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The collaboration comprises multiple programs, in which Curis has the option to exclusively license each program, including data, intellectual property and compounds associated with each respective program, once a development candidate is nominated within that program. In October 2015, the Company exercised options to license the first </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> programs under this collaboration. The first licensed program is focused on the development of orally-available small molecule antagonists of programmed death-1 (PD1) and V-domain Ig suppressor of T-cell activation (VISTA) pathways in the immuno-oncology field. The Company has named CA-170, a programmed death ligand-1 (PDL1)/VISTA antagonist, as the development candidate from this program. The second licensed program is focused on orally-available small molecule inhibitors of Interleukin-1 receptor-associated kinase 4 (IRAK4) enzyme in the precision oncology field and the Company has named CA-4948 as the development candidate from this program. In addition, in October 2015, the Company selected a third program for further development under the collaboration, the second preclinical program within the immuno-oncology field, which is focused on evaluating small molecule antagonists of PD1 and T-cell immunoglobulin and mucin domain containing protein-3 (TIM3) pathways, including small molecules that target PDL1 and TIM3. In October 2016, the Company exercised its option to license this third program, and designated CA-327 as the development candidate. </font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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</font><font style="font-family:inherit;font-size:9pt;">&#174;</font><font style="font-family:inherit;font-size:10pt;"> (vismodegib), a first-in-class orally-administered small molecule Hedgehog signaling pathway inhibitor, in advanced basal cell carcinoma, or BCC. In addition to BCC, Roche and Genentech are separately conducting studies of Erivedge in other diseases, including in idiopathic pulmonary fibrosis and myelofibrosis.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s proprietary small molecule compounds also include CUDC-427, an orally-available, small molecule antagonist of inhibitor of apoptosis, or IAP proteins, and CUDC-305, an orally-available, small molecule antagonist of Heat Shock Protein 90.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">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&#160;States by the United States Food and Drug Administration, or FDA, and in overseas markets by similar regulatory authorities.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company is subject to risks common to companies in the biotechnology industry as well as risks that are specific to the Company&#8217;s business, including, but not limited to: the Company&#8217;s ability to advance and expand its research and development programs; the Company&#8217;s reliance on Aurigene to successfully discover and preclinically develop drug candidates under the parties&#8217; collaboration agreement; the Company&#8217;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&#8217;s ability to obtain adequate financing to fund its operations; the ability of the Company&#8217;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.&#224;.r.l., a Luxembourg limited liability company managed by Pharmakon Advisors, or BioPharma-II; the Company&#8217;s ability to obtain and maintain necessary intellectual property protection; development by the Company&#8217;s competitors of new or better technological innovations; dependence on key personnel; the Company&#8217;s ability to comply with regulatory requirements; and the Company&#8217;s ability to execute on its overall business strategies.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;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 collaborations. The results of the Company&#8217;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&#8217;s preclinical studies and clinical trials for its drug candidates; Aurigene&#8217;s ability to successfully discover and develop preclinical programs under the Company&#8217;s collaboration with Aurigene, as well as the Company&#8217;s decision to exclusively license and further develop programs under this collaboration; Roche and Genentech&#8217;s ability to successfully commercialize Erivedge; positive results in Roche and Genentech&#8217;s ongoing clinical trials.</font></div><div style="line-height:120%;padding-top:8px;text-indent:65px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company anticipates that its existing cash, cash equivalents and investments at </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> should enable it to maintain current and planned operations into the second half of 2017. The Company&#8217;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 such events 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.</font></div></div>

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