2021 Form 10-K Financial Statement

#000183128322000014 Filed on March 31, 2022

View on sec.gov

Income Statement

Concept 2021 2020 Q4 2020
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $36.88M $6.490M $13.98M
YoY Change 163.72% 716.35%
% of Gross Profit
Research & Development $158.7M $2.710M $120.9M
YoY Change 31.28% 434.32%
% of Gross Profit
Depreciation & Amortization $500.0K $50.00K $100.0K
YoY Change 400.0%
% of Gross Profit
Operating Expenses $195.6M $9.200M $134.9M
YoY Change 45.01% 454.17%
Operating Profit -$195.6M -$134.9M
YoY Change 45.01%
Interest Expense $243.0K -$3.570M -$4.854M
YoY Change -105.01% -44227.27%
% of Operating Profit
Other Income/Expense, Net -$455.0K $40.00K $123.0K
YoY Change -469.92% -12400.0%
Pretax Income -$195.8M -$12.74M -$139.6M
YoY Change 40.24% 473.85%
Income Tax $518.0K $0.00 $4.000K
% Of Pretax Income
Net Earnings -$196.3M -$12.74M -$139.6M
YoY Change 40.61% 473.77%
Net Earnings / Revenue
Basic Earnings Per Share -$5.71 -$11.58
Diluted Earnings Per Share -$5.71 -$121.0K -$11.58
COMMON SHARES
Basic Shares Outstanding 34.39M shares 12.05M shares
Diluted Shares Outstanding 34.39M shares 12.05M shares

Balance Sheet

Concept 2021 2020 Q4 2020
SHORT-TERM ASSETS
Cash & Short-Term Investments $383.2M $254.4M
YoY Change 50.68% 487.41%
Cash & Equivalents $228.2M $254.4M $254.4M
Short-Term Investments $155.1M
Other Short-Term Assets $9.178M $1.065M
YoY Change 761.78%
Inventory
Prepaid Expenses
Receivables
Other Receivables $20.00M
Total Short-Term Assets $399.6M $276.7M $276.7M
YoY Change 44.41% 538.44%
LONG-TERM ASSETS
Property, Plant & Equipment $6.645M $822.0K $2.528M
YoY Change 162.86% 375.19%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $20.05M $12.00K $12.00K
YoY Change 166991.67%
Total Long-Term Assets $26.70M $2.540M $2.540M
YoY Change 951.02% 377.44%
TOTAL ASSETS
Total Short-Term Assets $399.6M $276.7M $276.7M
Total Long-Term Assets $26.70M $2.540M $2.540M
Total Assets $426.3M $279.3M $279.3M
YoY Change 52.65% 536.49%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.231M $4.329M $4.329M
YoY Change -25.36%
Accrued Expenses $11.10M $998.0K $1.537M
YoY Change 622.25% 207.4%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $15.09M $6.226M $6.226M
YoY Change 142.4% 86.13%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $23.92M $0.00 $21.34M
YoY Change 12.06% 5997.43%
Total Long-Term Liabilities $23.92M $0.00 $21.34M
YoY Change 12.06% 5997.43%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.09M $6.226M $6.226M
Total Long-Term Liabilities $23.92M $0.00 $21.34M
Total Liabilities $72.78M $27.57M $62.34M
YoY Change 16.75% 1228.08%
SHAREHOLDERS EQUITY
Retained Earnings -$163.9M
YoY Change
Common Stock $31.13M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $353.6M -$132.8M $216.9M
YoY Change
Total Liabilities & Shareholders Equity $426.3M $279.3M $279.3M
YoY Change 52.65% 536.49%

Cashflow Statement

Concept 2021 2020 Q4 2020
OPERATING ACTIVITIES
Net Income -$196.3M -$12.74M -$139.6M
YoY Change 40.61% 473.77%
Depreciation, Depletion And Amortization $500.0K $50.00K $100.0K
YoY Change 400.0%
Cash From Operating Activities -$164.0M -$48.87M -$98.14M
YoY Change 67.06% 738.82%
INVESTING ACTIVITIES
Capital Expenditures $947.0K -$555.0K $886.0K
YoY Change 6.88%
Acquisitions
YoY Change
Other Investing Activities -$155.0M
YoY Change
Cash From Investing Activities -$155.9M -$555.0K -$886.0K
YoY Change 17500.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $313.3M 294.8M $309.8M
YoY Change 1.14% 463.19%
NET CHANGE
Cash From Operating Activities -$164.0M -48.87M -$98.14M
Cash From Investing Activities -$155.9M -555.0K -$886.0K
Cash From Financing Activities $313.3M 294.8M $309.8M
Net Change In Cash -$6.168M 245.4M $211.1M
YoY Change -102.92% 387.41%
FREE CASH FLOW
Cash From Operating Activities -$164.0M -$48.87M -$98.14M
Capital Expenditures $947.0K -$555.0K $886.0K
Free Cash Flow -$164.9M -$48.31M -$99.03M
YoY Change 66.52% 746.39%

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CY2021 us-gaap Nature Of Operations
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Nature of Business <div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">LianBio (“LianBio” or the “Company”) is a global, science-driven biopharmaceutical company dedicated to developing and commercializing innovative medicines for patients with unmet medical needs, with an initial focus on in-licensing assets for Greater China and other Asian markets.</span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company was incorporated in the Cayman Islands in July 2019 and maintains its Chinese headquarters in Shanghai, China. The Company conducts its corporate activities at its United States headquarters located in Princeton, New Jersey. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On November 3, 2021, the Company completed its initial public offering (“IPO”) through an underwritten sale of 20,312,500 American Depositary Shares (“ADSs") representing 20,312,500 ordinary shares at a price of $16.00 per share. Following the close of the IPO, on December 1, 2021, the underwriters partially exercised their option to purchase additional shares and purchased an additional 593,616 ADSs at the initial public offering price of $16.00 per ADS. The Company received gross proceeds of $334.5 million in connection with the IPO and subsequent exercise of the underwriters’ option and aggregate net proceeds of $304.8 million after deducting underwriting discounts, commissions and other offering expenses. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Concurrent with the IPO, all of the Company’s convertible preferred shares then-outstanding (see Note 10) were automatically converted into an aggregate of 64,467,176 ordinary shares and were reclassified into permanent equity. Following the IPO, there were no preferred shares outstanding.</span></div>
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CY2021 us-gaap Use Of Estimates
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">(B) Use of Estimates </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported financial position at the date of the financial statements and the reported results of operations during the reporting period. Such estimates and assumptions affect the reported amounts of assets, liabilities, and expenses, and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. The only material estimates in the accompanying financial statements are the fair value of warrants, share-based compensation, and share options. Actual results could differ from those used in evaluating these accounting estimates.</span></div>
CY2021 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">(i) Concentration of Credit Risk and Other Risks and Uncertainties </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In March 2020, the World Health Organization declared the global novel coronavirus disease 2019 (“COVID-19”) outbreak a pandemic. The Company’s operations have not been significantly impacted by the COVID-19 pandemic. However, the Company cannot at this time predict the specific extent, duration, or full impact that the COVID-19 pandemic will have on its financial condition and operations, including planned clinical trials. The impact of the COVID-19 pandemic on the Company’s financial performance will depend on future developments, including the duration and spread of the pandemic and related governmental advisories and restrictions. These developments and the impact of the COVID-19 pandemic on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy continue to be impacted for an extended period, the Company’s results may be materially adversely affected. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents in deposits at financial institutions that exceed federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to material credit risk due to the financial position of the banking institutions. The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s results of operations involve numerous risks and uncertainties. Factors that could affect the Company’s operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials, uncertainty of regulatory approval of the Company’s potential product candidates, uncertainty of market acceptance of its product candidates, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. </span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Each of the Company’s product candidates require approvals from the National Medical Products Administration (“NMPA”) in China and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approval for any product candidate, such events could have a materially adverse impact on the Company’s business. </span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">(I) Concentration of credit risk</span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s financial instruments that are exposed to credit risks consist primarily of cash and cash equivalents, available-for-sale marketable securities and accounts receivable. The Company maintains its cash and cash equivalents in bank accounts, which, at times, exceed federally insured limits. The Company has not experienced any credit losses in these accounts and does not believe it is exposed to any significant credit risk on these funds. The Company’s investment policy includes guidelines on the specific credit quality standards and limits the credit exposure of any single issuer the Company is allowed to invest in, which the Company believes minimizes the exposure to concentration of credit risk.</span></div><div style="margin-top:6pt;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is subject to credit risk from its accounts receivable related to its product sales. The payment terms are predetermined and the Company evaluates the creditworthiness of each customer or distributor on a regular basis. The Company reserves all uninsured amounts billed directly to a patient until the time of cash receipt as collectability is not reasonably assured at the time the product is received. To date, the Company has not incurred any material credit losses.</span></div>
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">(V) Reclassification</span></div><div style="margin-top:6pt;text-indent:27pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain reclassifications of prior year information have been made to conform to the current year's presentation.</span></div>
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CY2020 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
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CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
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CY2020 us-gaap Effective Income Tax Rate Continuing Operations
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0
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0.2106
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CY2020 adr Effective Income Tax Rate Reconciliation License Transfers Percent
EffectiveIncomeTaxRateReconciliationLicenseTransfersPercent
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CY2021 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2020 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2021 us-gaap Effective Income Tax Rate Continuing Operations
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785000 USD
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34900000 USD
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87000 USD
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0 USD
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11000 USD
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CY2020 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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0 USD
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566000 USD
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0 USD
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566000 USD

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