2018 Q1 Form 10-Q Financial Statement

#000114420418027689 Filed on May 11, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $78.00K $37.00K
YoY Change 110.81% -90.24%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.610M $2.840M
YoY Change -8.1% 18.33%
% of Gross Profit
Research & Development $966.0K $1.136M
YoY Change -14.96% 8.4%
% of Gross Profit
Depreciation & Amortization $341.0M $337.0K
YoY Change 101086.94% 29.12%
% of Gross Profit
Operating Expenses $3.571M $3.973M
YoY Change -10.12% 15.13%
Operating Profit -$3.493M -$3.936M
YoY Change -11.26% 28.13%
Interest Expense $478.0K $481.0K
YoY Change -0.62% 48.92%
% of Operating Profit
Other Income/Expense, Net -$470.0K -$469.0K
YoY Change 0.21% 49.84%
Pretax Income -$3.960M -$4.410M
YoY Change -10.2% 30.09%
Income Tax
% Of Pretax Income
Net Earnings -$3.962M -$3.913M
YoY Change 1.25% 28.89%
Net Earnings / Revenue -5079.49% -10575.68%
Basic Earnings Per Share
Diluted Earnings Per Share -$343.2K -$438.8K
COMMON SHARES
Basic Shares Outstanding 89.11M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.400M $12.42M
YoY Change -72.62% -43.26%
Cash & Equivalents $3.398M $12.42M
Short-Term Investments
Other Short-Term Assets $410.0K $370.0K
YoY Change 10.81% 15.63%
Inventory $0.00 $60.00K
Prepaid Expenses
Receivables $180.0K $130.0K
Other Receivables $0.00 $0.00
Total Short-Term Assets $3.990M $12.98M
YoY Change -69.26% -42.87%
LONG-TERM ASSETS
Property, Plant & Equipment $25.34M $25.79M
YoY Change -1.78% 0.07%
Goodwill
YoY Change
Intangibles $1.687M $1.895M
YoY Change -10.98% -11.41%
Long-Term Investments
YoY Change
Other Assets $30.00K $30.00K
YoY Change 0.0% 0.0%
Total Long-Term Assets $27.04M $27.72M
YoY Change -2.43% -0.81%
TOTAL ASSETS
Total Short-Term Assets $3.990M $12.98M
Total Long-Term Assets $27.04M $27.72M
Total Assets $31.03M $40.70M
YoY Change -23.75% -19.67%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $940.0K $1.390M
YoY Change -32.37% -10.38%
Accrued Expenses $750.0K $960.0K
YoY Change -21.88% 47.69%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $190.0K $180.0K
YoY Change 5.56% 5.88%
Total Short-Term Liabilities $1.950M $2.621M
YoY Change -25.6% 7.37%
LONG-TERM LIABILITIES
Long-Term Debt $24.94M $25.13M
YoY Change -0.76% -0.71%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $24.94M $25.13M
YoY Change -0.76% -0.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.950M $2.621M
Total Long-Term Liabilities $24.94M $25.13M
Total Liabilities $26.88M $27.75M
YoY Change -3.14% 0.0%
SHAREHOLDERS EQUITY
Retained Earnings -$67.79M
YoY Change
Common Stock $116.0K $80.77M
YoY Change -99.86% 27.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.150M $12.95M
YoY Change
Total Liabilities & Shareholders Equity $31.03M $40.70M
YoY Change -23.76% -19.68%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$3.962M -$3.913M
YoY Change 1.25% 28.89%
Depreciation, Depletion And Amortization $341.0M $337.0K
YoY Change 101086.94% 29.12%
Cash From Operating Activities -$3.500M -$3.560M
YoY Change -1.69% 45.9%
INVESTING ACTIVITIES
Capital Expenditures -$490.0K -$300.0K
YoY Change 63.33%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$490.0K -$300.0K
YoY Change 63.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 70.00K -50.00K
YoY Change -240.0% -100.28%
NET CHANGE
Cash From Operating Activities -3.500M -3.560M
Cash From Investing Activities -490.0K -300.0K
Cash From Financing Activities 70.00K -50.00K
Net Change In Cash -3.920M -3.910M
YoY Change 0.26% -125.79%
FREE CASH FLOW
Cash From Operating Activities -$3.500M -$3.560M
Capital Expenditures -$490.0K -$300.0K
Free Cash Flow -$3.010M -$3.260M
YoY Change -7.67% 33.61%

Facts In Submission

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CY2018Q1 us-gaap Due To Related Parties Current
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CY2017Q2 us-gaap Due To Related Parties Current
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650000 USD
CY2018Q1 us-gaap Preferred Stock No Par Value
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0.001
CY2017Q2 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
0.001
CY2018Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2017Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.001
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2017Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
1000000 shares
CY2018Q1 us-gaap Preferred Stock Shares Issued
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1 shares
CY2017Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
1 shares
CY2018Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
1 shares
CY2017Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
1 shares
CY2018Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
275000000 shares
CY2017Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
175000000 shares
CY2018Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
115918510 shares
CY2018Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
115918510 shares
CY2017Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
89118510 shares
CY2017Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
89118510 shares
CY2018Q1 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
227000 USD
CY2017Q1 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
225000 USD
us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
600000 USD
us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
670000 USD
CY2017Q1 us-gaap Revenue From Grants
RevenueFromGrants
44000 USD
us-gaap Revenue From Grants
RevenueFromGrants
44000 USD
us-gaap Revenue From Grants
RevenueFromGrants
84000 USD
CY2018Q1 us-gaap Related Party Transaction Selling General And Administrative Expenses From Transactions With Related Party
RelatedPartyTransactionSellingGeneralAndAdministrativeExpensesFromTransactionsWithRelatedParty
186000 USD
CY2017Q1 us-gaap Related Party Transaction Selling General And Administrative Expenses From Transactions With Related Party
RelatedPartyTransactionSellingGeneralAndAdministrativeExpensesFromTransactionsWithRelatedParty
191000 USD
us-gaap Related Party Transaction Selling General And Administrative Expenses From Transactions With Related Party
RelatedPartyTransactionSellingGeneralAndAdministrativeExpensesFromTransactionsWithRelatedParty
573000 USD
us-gaap Related Party Transaction Selling General And Administrative Expenses From Transactions With Related Party
RelatedPartyTransactionSellingGeneralAndAdministrativeExpensesFromTransactionsWithRelatedParty
533000 USD
CY2018Q1 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
478000 USD
CY2017Q1 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
481000 USD
us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
1437000 USD
us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
1447000 USD
us-gaap Stock Issued1
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0 USD
us-gaap Stock Issued1
StockIssued1
12499000 USD
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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-2000 USD
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
0 USD
CY2017Q1 us-gaap Assets
Assets
40698000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
25794000 USD
CY2017Q1 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
1895000 USD
CY2018Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
28259000 USD
CY2017Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
27493000 USD
CY2018Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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2924000 USD
CY2017Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
1904000 USD
CY2018Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
5566000 USD
CY2017Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
5446000 USD
CY2018Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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3879000 USD
CY2017Q2 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
3623000 USD
ibio Capital Lease Obligation Description
CapitalLeaseObligationDescription
the base rent, iBio CDMO is required to pay, for each calendar year during the term, a portion of the total gross sales for products manufactured or processed at the facility, equal to 7% of the first $5,000,000 of gross sales, 6% of gross sales between $5,000,001 and $25,000,000, 5% of gross sales between $25,000,001 and $50,000,000, 4% of gross sales between $50,000,001 and $100,000,000, and 3% of gross sales between $100,000,001 and $500,000,000. However, if for any calendar year period from January 1, 2018 through December 31, 2019, iBio CDMO's applicable gross sales are less than $5,000,000, or for any calendar year period from and after January 1, 2020, its applicable gross sales are less than $10,000,000, then iBio CDMO is required to pay the amount that would have been payable if it had achieved such minimum gross sales and shall pay no less than the applicable percentage for the minimum gross sales for each subsequent calendar year. Percentage rent amounted to approximately $87,500 and $29,000 for the three months ended March 31, 2018 and 2017, respectively, and $112,000 and $75,000 for the nine months ended March 31, 2018 and 2017, respectively.
CY2018Q1 us-gaap Royalty Guarantees Commitments Amount
RoyaltyGuaranteesCommitmentsAmount
200000 USD
us-gaap Use Of Estimates
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><i>Use of Estimates</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates include the valuation of intellectual property, legal and contractual contingencies and share-based compensation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ from these estimates.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
ibio Long Term Purchase Commitment Expire Date
LongTermPurchaseCommitmentExpireDate
2015-12-31
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0223 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.0310 pure
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P9Y
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Other Increases Decreases In Period Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOtherIncreasesDecreasesInPeriodDescription
Plan was amended to increase the number of shares reserved for awards under the Plan from 10 million to 15 million.
us-gaap Nature Of Operations
NatureOfOperations
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="center"></div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <table style="BORDER-BOTTOM: 0px solid; BORDER-LEFT: 0px solid; WIDTH: 100%; BORDER-COLLAPSE: collapse; FONT: 10pt Times New Roman, Times, Serif; BORDER-TOP: 0px solid; BORDER-RIGHT: 0px solid" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="TEXT-ALIGN: justify; WIDTH: 0%"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="WIDTH: 4%"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> <b>1.</b></font></div> </td> <td style="TEXT-ALIGN: justify; WIDTH: 96%"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-SIZE: 10pt"> <b>Nature of Business</b></font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;&#160;&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">iBio, Inc. and Subsidiaries (&#8220;iBio&#8221; or the &#8220;Company&#8221;) is a biotechnology company focused on using our proprietary technologies and production facilities to provide product development and manufacturing services to clients, collaborators and third-party customers as well as developing and commercializing our own product candidates.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">iBio was established as a public company in August 2008 as the result of a spin-off from Integrated BioPharma, Inc. The Company operates in one business segment under the direction of its Executive Chairman. The Company's wholly-owned and majority-owned subsidiaries are as follows:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>iBIO DO BRASIL BIOFARMAC&#202;UTICA LTDA</b> ("iBio Brazil") &#150; iBio Brazil is a subsidiary organized in Brazil in which the Company has a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 99</font>% interest. iBio Brazil was formed to manage and expand the Company's business activities in Brazil. The activities of iBio Brazil are intended to include coordination and expansion of the Company's existing relationship with Fundacao Oswaldo Cruz/Fiocruz ("Fiocruz") beyond the current Yellow Fever Vaccine program (see Note 7) and development of additional products with private sector participants for the Brazilian market. iBio Brazil commenced operations during the first quarter of the fiscal year ended June 30, 2015.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 1in; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0in; MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify"><strong>iBio</strong> <strong>Manufacturing LLC</strong> ("iBio Manufacturing") &#150; iBio Manufacturing, a wholly-owned subsidiary, is a Delaware limited liability company formed in November 2015. iBio Manufacturing has not commenced any activities to date.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN-LEFT: 0.5in"> <strong>iBio CDMO LLC</strong> ("iBio CDMO") &#150; iBio CDMO is a Delaware limited liability company formed on December 16, 2015 as iBio CMO, LLC to develop and manufacture plant-made pharmaceuticals. Effective July 1, 2017, iBio CMO changed its name to iBio CDMO. As of December 31, 2015, the Company owned <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 100</font>% of iBio CDMO. On January 13, 2016, the Company entered into a contract manufacturing joint venture with an affiliate of Eastern Capital Limited (&#8220;Eastern&#8221;), a stockholder of the Company (the &#8220;Eastern Affiliate&#8221;). The Eastern Affiliate contributed $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">15</font> million in cash for a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 30</font>% interest in iBio CDMO. The Company retained a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 70</font>% interest in iBio CDMO and contributed a royalty-bearing license which grants iBio CDMO a non-exclusive license to use the Company&#8217;s proprietary technologies for research purposes and an exclusive U.S. license for manufacturing purposes. The Company retained the exclusive right to grant product licenses to those who wish to sell or distribute products made using the Company&#8217;s technologies.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify">On February 23, 2017, the Company entered into an exchange agreement with the Eastern Affiliate, pursuant to which the Company acquired substantially all of the interest in iBio CDMO held by the Eastern Affiliate in exchange for one share of the Company&#8217;s iBio CMO Preferred Tracking Stock, par value $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.001</font> per share. After giving effect to the transaction, the Company owns <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 99.99</font>% of iBio CDMO. See Note 9 for a further discussion.<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 1in; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px 0px 0px 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify">iBio CDMO&#8217;s operations take place in Bryan, Texas in a facility controlled by another affiliate of Eastern (the &#8220;Second Eastern Affiliate&#8221;) as sublandlord. The facility is a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 139,000</font>-square foot Class A life sciences building on the campus of Texas A&#38;;M University, designed and equipped for plant-made manufacture of biopharmaceuticals. The Second Eastern Affiliate granted iBio CDMO a <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 34</font>-year capital lease for the facility as well as certain equipment (see Note 8). Commercial operations commenced in January 2016. iBio CDMO expects to operate on the basis of three parallel lines of business: (1) development and manufacturing of third-party products; (2) development and production of iBio&#8217;s proprietary product(s) for treatment of fibrotic diseases and/or other proprietary iBio products; and (3) commercial technology transfer services including facility design, as needed.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

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