2020 Q1 Form 10-Q Financial Statement

#000157056220000087 Filed on May 11, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1
Revenue $10.50M $0.00
YoY Change
Cost Of Revenue $4.219M $0.00
YoY Change
Gross Profit $6.277M $0.00
YoY Change
Gross Profit Margin 59.8%
Selling, General & Admin $31.30M $17.52M
YoY Change 78.66% 404.87%
% of Gross Profit 498.65%
Research & Development $507.0K $2.353M
YoY Change -78.45% 40.23%
% of Gross Profit 8.08%
Depreciation & Amortization $1.749M $484.0K
YoY Change 261.36%
% of Gross Profit 27.86%
Operating Expenses $23.67M $25.27M
YoY Change -6.32% 318.01%
Operating Profit -$17.40M -$25.27M
YoY Change -31.16% 318.01%
Interest Expense -$2.080M -$230.0K
YoY Change 804.35% -314.95%
% of Operating Profit
Other Income/Expense, Net -$2.458M -$618.0K
YoY Change 297.73% 477.57%
Pretax Income -$19.48M -$25.50M
YoY Change -23.61% 314.47%
Income Tax $256.0K -$14.52M
% Of Pretax Income
Net Earnings -$19.74M -$10.98M
YoY Change 79.82% 78.11%
Net Earnings / Revenue -188.02%
Basic Earnings Per Share -$0.59
Diluted Earnings Per Share -$0.59 -$401.8K
COMMON SHARES
Basic Shares Outstanding 33.72M shares 27.27M shares
Diluted Shares Outstanding 33.72M shares

Balance Sheet

Concept 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $99.64M $133.7M
YoY Change -25.48% 169.56%
Cash & Equivalents $34.65M $54.40M
Short-Term Investments $64.99M $79.30M
Other Short-Term Assets $3.600M $2.800M
YoY Change 28.57% 460.0%
Inventory $12.54M $2.578M
Prepaid Expenses
Receivables $10.41M
Other Receivables $0.00
Total Short-Term Assets $126.1M $139.1M
YoY Change -9.31% 177.55%
LONG-TERM ASSETS
Property, Plant & Equipment $1.433M $800.0K
YoY Change 79.13%
Goodwill $21.21M $21.21M
YoY Change 0.0% 0.0%
Intangibles $59.17M $58.78M
YoY Change 0.67% 4.83%
Long-Term Investments
YoY Change
Other Assets $2.295M $1.045M
YoY Change 119.62%
Total Long-Term Assets $88.01M $81.85M
YoY Change 7.53% 5.9%
TOTAL ASSETS
Total Short-Term Assets $126.1M $139.1M
Total Long-Term Assets $88.01M $81.85M
Total Assets $214.2M $220.9M
YoY Change -3.07% 73.42%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.70M $1.863M
YoY Change 474.29% 240.59%
Accrued Expenses $9.403M $6.735M
YoY Change 39.61% 186.35%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $22.61M $9.400M
YoY Change 140.56% 159.02%
LONG-TERM LIABILITIES
Long-Term Debt $73.84M $72.56M
YoY Change 1.77% 350.66%
Other Long-Term Liabilities $36.60M $45.90M
YoY Change -20.26% 13.05%
Total Long-Term Liabilities $73.84M $72.56M
YoY Change 1.77% 27.97%
TOTAL LIABILITIES
Total Short-Term Liabilities $22.61M $9.400M
Total Long-Term Liabilities $73.84M $72.56M
Total Liabilities $151.5M $145.6M
YoY Change 4.1% 93.03%
SHAREHOLDERS EQUITY
Retained Earnings -$232.8M -$134.0M
YoY Change 73.73% 62.78%
Common Stock $1.000K $1.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $62.61M $75.36M
YoY Change
Total Liabilities & Shareholders Equity $214.2M $220.9M
YoY Change -3.07% 73.42%

Cashflow Statement

Concept 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income -$19.74M -$10.98M
YoY Change 79.82% 78.11%
Depreciation, Depletion And Amortization $1.749M $484.0K
YoY Change 261.36%
Cash From Operating Activities -$27.95M -$19.20M
YoY Change 45.56% 772.33%
INVESTING ACTIVITIES
Capital Expenditures $565.0K $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$44.69M -$79.20M
YoY Change -43.57%
Cash From Investing Activities -$46.19M -$80.03M
YoY Change -42.28%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $0.00
YoY Change -100.0%
Debt Paid & Issued, Net $522.0K $0.00
YoY Change
Cash From Financing Activities -$1.105M $60.43M
YoY Change -101.83% 16.73%
NET CHANGE
Cash From Operating Activities -$27.95M -$19.20M
Cash From Investing Activities -$46.19M -$80.03M
Cash From Financing Activities -$1.105M $60.43M
Net Change In Cash -$75.24M -$38.80M
YoY Change 93.94% -178.26%
FREE CASH FLOW
Cash From Operating Activities -$27.95M -$19.20M
Capital Expenditures $565.0K $0.00
Free Cash Flow -$28.51M -$19.20M
YoY Change 48.5%

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565000 USD
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CY2020Q1 us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:13px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;">Risks and Uncertainties</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">In 2013, Evolus and Daewoong Pharmaceuticals Co., Ltd. (&#8220;Daewoong&#8221;) entered into an agreement (the &#8220;Daewoong Agreement&#8221;), pursuant to which, the Company has an exclusive distribution license to Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> from Daewoong for aesthetic indications in the United States, European Union, Canada, Australia, Russia, Commonwealth of Independent States, and South Africa, as well as co-exclusive distribution rights with Daewoong in Japan. Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> is manufactured by Daewoong in a facility in South Korea. The Company also has the option to negotiate first with Daewoong to secure a distribution license for any product that Daewoong directly or indirectly develops or commercializes that is classified as an injectable botulinum toxin (other than Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">) in a territory covered by the Daewoong Agreement. The Company relies on Daewoong, its exclusive and sole supplier, to manufacture Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. Any termination or loss of significant rights, including exclusivity, under the Daewoong Agreement would materially and adversely affect the Company&#8217;s commercialization of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. The Daewoong Agreement, and Daewoong&#8217;s rights relating to Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">, are subject to litigation. See </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Note 7</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;">Commitments and Contingencies</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> for additional information regarding such litigation.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company commercially launched Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> in the United States in May 2019 and in Canada through a distribution partner in October 2019 and, as such, has a limited history of sales. If any previously granted approval is retracted or the Company is denied approval or approval is delayed by any other regulators, it may have a material adverse impact on the Company&#8217;s business and its financial statements.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company is subject to risks common to companies in the pharmaceutical industry including, but not limited to, dependency on the commercial success of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">, the Company&#8217;s sole commercial product, significant competition within the medical aesthetics industry, its ability to maintain regulatory approval of Jeuveau</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">, the need for additional financing to achieve its goals, third party litigation and challenges to its intellectual property, uncertainty of broad adoption of its product by physicians and patients, its ability to in-license, acquire or develop additional product candidates and to obtain the necessary approvals for those product candidates, and the need to scale manufacturing capabilities over time.</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The recent COVID-19 outbreak and restrictions intended to slow the spread of COVID-19, including quarantines, government-mandated actions, stay-at-home orders and other restrictions,&#160;have adversely affected the Company&#8217;s business in a number of ways, which have resulted, and may continue to result, in a period of business disruption and in reduced sales and operations. In addition, any disruption and volatility in the global capital markets may increase the Company&#8217;s cost of capital and adversely affect its ability to access financing when and on terms that we desire. Any of these events could have a material adverse effect on the Company&#8217;s business, financial condition, results of operations and cash flows.</font></div><div style="line-height:120%;padding-bottom:13px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>
CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:13px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:12px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Management is required to make certain estimates and assumptions in order to prepare financial statements in conformity with GAAP. Such estimates and assumptions affect the reported financial statements. The Company&#8217;s most significant estimates relate to net revenues, allowance for doubtful accounts, fair value measurements, goodwill and long-lived asset valuations and impairment assessments, inventory valuations, income tax valuations, stock-based compensation and royalty obligations, among others. Management bases estimates on historical experience and on assumptions that management believes are reasonable. The Company&#8217;s actual results could differ materially from those estimates.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Additionally, the full impact of&#160;the COVID-19&#160;outbreak is unknown and cannot be reasonably estimated. However, where possible, management has made appropriate accounting estimates with respect to certain accounting matters, which include the fair value of royalty obligations, allowance for doubtful accounts, inventory valuation and impairment assessments of goodwill and other long-lived assets, based on the facts and circumstances available as of the reporting date. The Company&#8217;s future assessment of the magnitude and duration of&#160;the COVID-19 outbreak, as well as other factors, could result in material impacts to the Company&#8217;s financial statements in future reporting periods.</font></div><div style="line-height:120%;padding-bottom:13px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:bold;"></font></div></div>

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