2016 Form 10-K Financial Statement

#000119312517085519 Filed on March 16, 2017

View on sec.gov

Income Statement

Concept 2016 2015 Q4 2015 Q3
Revenue $174.8M $0.00 $0.00
YoY Change
Cost Of Revenue $17.12M $51.80M $8.115M
YoY Change -73.56%
Gross Profit $157.6M -$51.80M -$8.115M
YoY Change -343.47%
Gross Profit Margin 90.2%
Selling, General & Admin $46.93M $8.300M $11.55M
YoY Change 14.57% -33.6% -39.54%
% of Gross Profit 29.77%
Research & Development $14.92M $6.200M $6.341M
YoY Change -49.73% -64.77% -66.94%
% of Gross Profit 9.46%
Depreciation & Amortization $2.400M $3.190M $3.165M
YoY Change -78.18% 5.98% 29.24%
% of Gross Profit 1.52%
Operating Expenses $61.85M $14.50M $26.00M
YoY Change -82.06% -51.83% -32.05%
Operating Profit $67.26M -$66.30M -$26.00M
YoY Change -119.52% -32.05%
Interest Expense -$9.600M -$4.100M -$4.900M
YoY Change -139.83% -35.94% -20.97%
% of Operating Profit -14.27%
Other Income/Expense, Net $58.40M -$100.0K $67.00K
YoY Change -345.5% -99.15%
Pretax Income $125.7M -$277.0M -$31.86M
YoY Change -134.11% 660.99% -12.77%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings $125.7M -$277.0M -$31.86M
YoY Change -134.11% 660.23% -12.77%
Net Earnings / Revenue 71.91%
Basic Earnings Per Share $1.37 -$0.08
Diluted Earnings Per Share $1.36 -$3.302M -$0.08
COMMON SHARES
Basic Shares Outstanding 92.05M 409.5M shares 405.2M shares
Diluted Shares Outstanding 92.09M 405.2M shares

Balance Sheet

Concept 2016 2015 Q4 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $22.90M $59.10M $32.90M
YoY Change -61.25% -51.08% -80.93%
Cash & Equivalents $22.90M $59.07M $32.93M
Short-Term Investments
Other Short-Term Assets $21.40M $17.50M $13.20M
YoY Change 22.29% -13.37% -34.98%
Inventory $2.300M $0.00 $23.40M
Prepaid Expenses $15.00M
Receivables $300.0K $23.00K $1.679M
Other Receivables $30.60M $0.00 $0.00
Total Short-Term Assets $77.50M $76.65M $71.24M
YoY Change 1.04% -61.89% -63.19%
LONG-TERM ASSETS
Property, Plant & Equipment $28.90M $48.75M $191.4M
YoY Change -40.66% -74.63% 0.25%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $600.0K $1.009M $1.831M
YoY Change -40.0% 18.99% -13.39%
Total Long-Term Assets $29.60M $49.76M $206.8M
YoY Change -40.44% -74.26% 6.97%
TOTAL ASSETS
Total Short-Term Assets $77.50M $76.65M $71.24M
Total Long-Term Assets $29.60M $49.76M $206.8M
Total Assets $107.1M $126.4M $278.0M
YoY Change -15.27% -67.95% -28.13%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.300M $15.60M $4.444M
YoY Change -78.85% 110.97% -74.44%
Accrued Expenses $7.600M $7.929M $14.08M
YoY Change 20.63% -69.74% -48.36%
Deferred Revenue
YoY Change
Short-Term Debt $71.30M $74.60M $74.20M
YoY Change -4.42% 2.19%
Long-Term Debt Due $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $92.10M $268.3M $267.3M
YoY Change -65.67% -33.48% -9.01%
LONG-TERM LIABILITIES
Long-Term Debt $77.20M $139.5M $120.8M
YoY Change -44.66% 165.21% -1.06%
Other Long-Term Liabilities $121.4M $15.23M $14.50M
YoY Change 76.2% 23.77% 25.26%
Total Long-Term Liabilities $198.6M $15.23M $14.50M
YoY Change -4.7% 23.77% 25.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $92.10M $268.3M $267.3M
Total Long-Term Liabilities $198.6M $15.23M $14.50M
Total Liabilities $290.7M $476.7M $402.6M
YoY Change -39.02% 1.82% -5.83%
SHAREHOLDERS EQUITY
Retained Earnings -$2.863B -$2.586B
YoY Change 14.77%
Common Stock $2.513B $2.462B
YoY Change 3.8% 1.82%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$183.6M -$350.3M -$124.6M
YoY Change
Total Liabilities & Shareholders Equity $107.1M $126.4M $278.0M
YoY Change -15.27% -67.95% -28.13%

Cashflow Statement

Concept 2016 2015 Q4 2015 Q3
OPERATING ACTIVITIES
Net Income $125.7M -$277.0M -$31.86M
YoY Change -134.11% 660.23% -12.77%
Depreciation, Depletion And Amortization $2.400M $3.190M $3.165M
YoY Change -78.18% 5.98% 29.24%
Cash From Operating Activities -$78.09M -$22.55M -$19.89M
YoY Change 36.45% -36.91% -119.84%
INVESTING ACTIVITIES
Capital Expenditures $1.144M -$320.0K -$1.230M
YoY Change -88.88% -93.56% -87.0%
Acquisitions
YoY Change
Other Investing Activities $20.00K $0.00 $80.00K
YoY Change -75.0% -100.0% -99.14%
Cash From Investing Activities -$1.127M -$310.0K -$1.150M
YoY Change -88.95% -97.82% 447.62%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $893.0K
YoY Change -96.85%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 43.04M 49.01M -53.21M
YoY Change 659.05% -3034.73% -270.38%
NET CHANGE
Cash From Operating Activities -78.09M -22.55M -19.89M
Cash From Investing Activities -1.127M -310.0K -1.150M
Cash From Financing Activities 43.04M 49.01M -53.21M
Net Change In Cash -36.18M 26.15M -74.25M
YoY Change -41.42% -150.65% -156.57%
FREE CASH FLOW
Cash From Operating Activities -$78.09M -$22.55M -$19.89M
Capital Expenditures $1.144M -$320.0K -$1.230M
Free Cash Flow -$79.23M -$22.23M -$18.66M
YoY Change 17.36% -27.75% -117.01%

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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
36400000
CY2014 mnkd Income Tax Expense Benefit Net
IncomeTaxExpenseBenefitNet
0
CY2014 mnkd Write Off Of Commitment Asset
WriteOffOfCommitmentAsset
1753000
CY2014 mnkd Write Off Of Derivative Liability
WriteOffOfDerivativeLiability
363000
CY2014 mnkd Common Stock Loaned Under Share Lending Agreement Shares
CommonStockLoanedUnderShareLendingAgreementShares
1800000 shares
CY2014 mnkd Stock Issued During Period Value For Debt Exchange
StockIssuedDuringPeriodValueForDebtExchange
93501000
CY2014 mnkd Effective Income Tax Rate Reconciliation Permanent Items
EffectiveIncomeTaxRateReconciliationPermanentItems
0.009 pure
CY2014 mnkd Stock Issued During Period Value Warrant Exercises
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27779000
CY2014 mnkd Proceeds From Issuance Of Common Stock And Warrants Net
ProceedsFromIssuanceOfCommonStockAndWarrantsNet
12341000
CY2014 mnkd Payments For Use Of Aircrafts
PaymentsForUseOfAircrafts
79000
CY2014 mnkd Milestone Payments
MilestonePayments
3150000
CY2014 mnkd Interest On Note Payable To Principal Stockholder
InterestOnNotePayableToPrincipalStockholder
2894000
CY2014 mnkd Nominal Lending Fee
NominalLendingFee
0.05
CY2016 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
16788281 shares
CY2016 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2016 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2016
CY2016 dei Document Type
DocumentType
10-K
CY2016 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.36
CY2016 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.350 pure
CY2016 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-0.340 pure
CY2016 dei Entity Central Index Key
EntityCentralIndexKey
0000899460
CY2016 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2016 us-gaap Incremental Common Shares Attributable To Contingently Issuable Shares
IncrementalCommonSharesAttributableToContingentlyIssuableShares
32000 shares
CY2016 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-78090000
CY2016 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Reclassifications</i> &#x2014; Certain amounts from previous periods have been reclassified to conform to the 2016 presentation. Specifically, accrued interest &#x2014; note payable to principal stockholder has been reclassified from the previously reported classification of other liabilities in the accompanying consolidated balance sheets. Additionally, the remaining balance from the previously reported classification of other liabilities is now identified as milestone rights liability, and is disclosed as a separate line item on the consolidated statements of cash flows. Additionally, on the consolidated statement of operations, product manufacturing has been renamed to cost of goods sold. The Company also reclassified (gain) loss on foreign currency translation from the previously reported classification of product manufacturing in the accompanying consolidated statements of operations. Additionally, certain balances from prepaid expenses and other current assets were reclassed to (gain) loss on foreign currency translation in the consolidated statements of cash flows.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
0.8275 pure
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
199890 shares
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
8.45
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
23.65
CY2016 dei Trading Symbol
TradingSymbol
MNKD
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
92085000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
92053000 shares
CY2016 dei Amendment Flag
AmendmentFlag
false
CY2016 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Concentration of Credit Risk</i> &#x2014; Financial instruments which potentially subject the Company to concentration of credit risk consist of cash and cash equivalents. Cash and cash equivalents are held in high credit quality institutions. Cash equivalents consist of interest-bearing money market accounts, which are regularly monitored by management.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
292488 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.00 pure
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
0.7757 pure
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0118 pure
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P5Y3M22D
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
407161 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
3.05
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
13.60
CY2016 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
4.50
CY2016 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
CY2016 dei Document Period End Date
DocumentPeriodEndDate
2016-12-31
CY2016 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.37
CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
EffectiveIncomeTaxRateReconciliationOtherAdjustments
0.009 pure
CY2016 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2016 dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
CY2016 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
43672 shares
CY2016 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Deferred Costs from Collaboration &#x2014;</i> Deferred costs from collaboration represents the costs of product manufactured and sold to Sanofi, as well as certain direct costs associated with a firm purchase commitment entered into in connection with the collaboration with Sanofi. During the third quarter of 2016, the costs related to the Sanofi product sales were recognized as costs of revenue &#x2014; collaboration in the consolidated statements of operations, as related revenue was recognized at that time.</p> <p style="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Deferred Costs from Commercial Product Sales &#x2014;</i> Deferred costs from commercial product sales represents the cost of product (including labor, overhead and costs to ship to third party logistics) shipped to ICS and wholesale distributors, but not yet dispensed by pharmacies to patients.</p> </div>
CY2016 us-gaap Revenue Recognition Discounts
RevenueRecognitionDiscounts
<div> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Prompt Pay Discounts &#x2014;</i> The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. The Company accounts for cash discounts by reducing accounts receivable by the prompt pay discount amount and recognizes the discount as a reduction of revenue in the same period the related revenue is recognized.</p> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Rebates &#x2014;</i> The Company participates in federal and state government-managed Medicare and Medicaid rebate programs and intends to pursue participation in certain other qualifying federal and state government programs whereby discounts and rebates are provided to participating federal and state government entities. Rebates provided through these other qualifying programs are included in the Medicaid and Medicare rebate accrual. The Company accounts for these rebates by establishing an accrual equal to the estimate of rebate claims attributable to a sale and determines its estimate of the rebates accrual based on historical payor data provided by a third-party vendor along with additional data including a forecasted participation rate for Medicare and Medicaid. From that data, as well as input received from MannKind&#x2019;s commercial team, an estimated participation rate for Medicare and Medicaid is determined and applied at the mandated rate for those sales. Any new information regarding changes in the programs&#x2019; regulations and guidelines or any changes in the Company&#x2019;s government price reporting calculations that would impact the amount of the rebates will also be taken into account in determining or modifying the appropriate reserve. The time period between the date the product is sold into the channel and the date such rebates are paid ranges from approximately six to nine months. As such, continuous monitoring of these estimates are performed on a periodic basis and if necessary, adjusted to reflect new facts and circumstances. Rebates are recognized as a reduction of revenue in the period the related revenue is recognized.</p> </div>
CY2016 us-gaap Revenue Recognition Multiple Element Arrangements
RevenueRecognitionMultipleElementArrangements
<div> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Revenue Recognition &#x2014; Net Revenue &#x2014; Collaborations &#x2014;</i> The Company enters into collaborations under which we must perform certain obligations and we receive periodic payments. We evaluate the collaborations under the multiple element revenue recognition accounting guidance. Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered elements have stand-alone value to the customer. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price of each deliverable and the appropriate revenue recognition principles are applied to each unit.</p> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> The assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that, or periods over which, revenue should be recognized. The terms of and the accounting for the Company&#x2019;s collaborations are described more fully in Note 8 &#x2014; Collaboration Arrangements.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
2236693 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue
11.60
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
4.50
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0180 pure
CY2016 us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
104758 shares
CY2016 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
55231 shares
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Financial Statement Estimates</i> &#x2014; The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies, and in developing the estimates and assumptions that are used in the preparation of the financial statements. Management must apply significant judgment in this process. The more significant estimates reflected in these accompanying consolidated financial statements include revenue recognition, assessing long-lived assets for impairment, accrued expenses, including clinical study expenses, inventory recoverability, valuation of the facility financing obligation, loss on purchase commitment, warrant liability, milestone rights, stock-based compensation and the determination of the provision for income taxes and corresponding deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets.</p> </div>
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.00 pure
CY2016 dei Entity Registrant Name
EntityRegistrantName
MANNKIND CORP
CY2016 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2016 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P2Y10M24D
CY2016 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
-48100000
CY2016 us-gaap Revenue Recognition Sales Of Goods
RevenueRecognitionSalesOfGoods
<div> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> <i>Revenue Recognition &#x2014; Net Revenue &#x2014; Commercial Product Sales &#x2014;</i> Between July&#xA0;1, 2016 and December&#xA0;15, 2016, the Company sold Afrezza to Integrated Commercialization Solutions Direct (ICS) and title and risk of loss transferred to ICS upon shipment. After December&#xA0;15, 2016, ICS became a third party logistics provider and stopped taking title and risk of loss upon shipment of Afrezza to ICS. The Company sells Afrezza in the United States to wholesale pharmaceutical distributors through ICS, and ultimately to retail pharmacies, which are collectively referred to as &#x201C;customers&#x201D;.</p> <p style="font-size:1px;margin-top:6px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> The Company provides the right of return to ICS (through December&#xA0;15, 2016) and its wholesale distributors and, through them, to its retail pharmacy customers for unopened product for a period beginning six months prior to and ending twelve months after its expiration date. Once the product has been prescribed and dispensed to the patient, any right of return ceases to exist.</p> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> Given the Company&#x2019;s limited sales history for Afrezza, the Company cannot reliably estimate expected returns of the product at the time of shipment into the distribution channel. Accordingly, the Company defers recognition of revenue on Afrezza product shipments until the right of return no longer exists, which occurs at the earlier of the time Afrezza is dispensed from pharmacies to patients or expiration of the right of return. The Company recognizes revenue based on Afrezza patient prescriptions dispensed as estimated by syndicated data provided by a third party. The Company also analyzes additional data points to ensure that such third-party data is reasonable including data related to inventory movements within the channel and ongoing prescription demand.</p> <p style="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"> For the year ended December&#xA0;31, 2016, net revenue from commercial product sales consisted of $1.9&#xA0;million of net sales of Afrezza dispensed to patients. As of December&#xA0;31, 2016, the Company recorded $3.4&#xA0;million in deferred revenue on its consolidated balance sheet, of which $1.6&#xA0;million (net of estimated <font style="white-space:nowrap"><font style="white-space:nowrap">gross-to-net</font></font> adjustments) represents product shipped to the Company&#x2019;s third-party logistics provider and wholesale distributors, but not yet dispensed to patients. The difference represents deferred revenue from bulk insulin sales, which is described more fully under the heading <i>Revenue Recognition &#x2014; Revenue &#x2014; Bulk Insulin Sales</i> below.</p> </div>
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
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P4Y
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue
21.70
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
800530 shares
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod
131000 shares
CY2016 us-gaap Sales Revenue Net
SalesRevenueNet
174758000
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
1144000
CY2016 us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
2690000
CY2016 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-4000
CY2016 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
72024000
CY2016 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-600000
CY2016 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
3433000
CY2016 us-gaap Construction In Progress Expenditures Incurred But Not Yet Paid
ConstructionInProgressExpendituresIncurredButNotYetPaid
588000
CY2016 us-gaap Adjustments To Additional Paid In Capital Share Based Compensation Restricted Stock Units Requisite Service Period Recognition
AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationRestrictedStockUnitsRequisiteServicePeriodRecognition
-165000
CY2016 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
426000
CY2016 us-gaap Sales Revenue Goods Net
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1895000
CY2016 us-gaap Operating Income Loss
OperatingIncomeLoss
67260000
CY2016 us-gaap Net Income Loss
NetIncomeLoss
125664000
CY2016 us-gaap Long Term Purchase Commitment Amount
LongTermPurchaseCommitmentAmount
93000000
CY2016 us-gaap Loans Assumed1
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5174000
CY2016 us-gaap Interest Paid
InterestPaid
8991000
CY2016 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-361000
CY2016 us-gaap Increase Decrease In Inventories
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2331000
CY2016 us-gaap Increase Decrease In Deferred Charges
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-13539000
CY2016 us-gaap Increase Decrease In Accounts Receivable
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302000
CY2016 us-gaap Comprehensive Income Net Of Tax
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125660000
CY2016 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
5135000
CY2016 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
165000
CY2016 us-gaap Investment Income Interest
InvestmentIncomeInterest
85000
CY2016 us-gaap Increase Decrease In Accounts And Notes Receivable
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30534000
CY2016 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
467000
CY2016 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-597000
CY2016 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-19000
CY2016 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
58404000
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
346000
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
125664000
CY2016 us-gaap Gain Loss On Disposition Of Assets
GainLossOnDispositionOfAssets
-1259000
CY2016 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
3433000
CY2016 us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
12750000
CY2016 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
5135000
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-43814000
CY2016 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
48125000
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-4311000
CY2016 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
2400000
CY2016 us-gaap Impairment Of Long Lived Assets Held For Use
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1259000
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
0
CY2016 us-gaap Increase Decrease In Customer Advances And Deposits
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-134056000
CY2016 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
348000
CY2016 us-gaap Increase Decrease In Accounts Payable
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-12118000
CY2016 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-1127000
CY2016 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
17000
CY2016 us-gaap Related Party Transaction Expenses From Transactions With Related Party
RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty
2901000
CY2016 us-gaap Share Based Compensation
ShareBasedCompensation
5135000
CY2016 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
0
CY2016 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
0
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
0
CY2016 us-gaap Deferred Other Tax Expense Benefit
DeferredOtherTaxExpenseBenefit
-48125000
CY2016 us-gaap Defined Benefit Plan Contributions By Employer
DefinedBenefitPlanContributionsByEmployer
418000
CY2016 us-gaap Depreciation And Amortization
DepreciationAndAmortization
4158000
CY2016 us-gaap Increase Decrease In Deferred Revenue
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3419000
CY2016 us-gaap Inventory Write Down
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200000
CY2016 us-gaap Paid In Kind Interest
PaidInKindInterest
4478000
CY2016 us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
50000000
CY2016 us-gaap Research And Development Expense Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseExcludingAcquiredInProcessCost
14917000
CY2016 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
19854000
CY2016 us-gaap Selling General And Administrative Expense
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46928000
CY2016 us-gaap Costs And Expenses
CostsAndExpenses
107498000
CY2016 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
27074000
CY2016 us-gaap Interest Expense Debt
InterestExpenseDebt
15576000
CY2016 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
43038000
CY2016 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
373000
CY2016 us-gaap Proceeds From Warrant Exercises
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0
CY2016 us-gaap Proceeds From Repayments Of Notes Payable
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-5000000
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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100000
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value Vested
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600000
CY2016 us-gaap Cash And Cash Equivalents Period Increase Decrease
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-36179000
CY2016 us-gaap Cost Of Goods Sold
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17121000
CY2016 us-gaap Current State And Local Tax Expense Benefit
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0
CY2016 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
0
CY2016 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationCashReceivedFromExerciseOfStockOptions
500000
CY2016 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
0
CY2016 us-gaap Restructuring Charges
RestructuringCharges
2035000
CY2016 us-gaap Restructuring Reserve Settled Without Cash2
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3687000
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
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2600000
CY2016 mnkd Income Tax Expense Benefit Net
IncomeTaxExpenseBenefitNet
0
CY2016 mnkd Longterm Purchase Commitment Renewal Time Period
LongtermPurchaseCommitmentRenewalTimePeriod
P2Y
CY2016 mnkd Deferred Tax Asset Increase Decrease In Equity
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11600000
CY2016 mnkd Increase Decrease In Deferred Collaborative Revenue
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-17503000
CY2016 mnkd Class Of Warrants Or Rights Expiration Date
ClassOfWarrantsOrRightsExpirationDate
2016-02-08
CY2016Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.33
CY2016 mnkd Class Of Warrant Or Right Exercised
ClassOfWarrantOrRightExercised
0 shares
CY2016 mnkd Maturity Period Of Cash Equivalents
MaturityPeriodOfCashEquivalents
90 days or less at the time of purchase
CY2016 mnkd Value Of Restricted Stock Units Vested
ValueOfRestrictedStockUnitsVested
2000000
CY2016 mnkd Adjustments To Additional Paid In Capital Shares Issued In Private Placement
AdjustmentsToAdditionalPaidInCapitalSharesIssuedInPrivatePlacement
-2037000
CY2016 mnkd Percentage Of Credit Exchange Receivable
PercentageOfCreditExchangeReceivable
0.65 pure
CY2016 mnkd Long Term Purchase Commitment Expiration Date
LongTermPurchaseCommitmentExpirationDate
2023-12-31
CY2016 mnkd Change In Fair Value Of Warrant Liability
ChangeInFairValueOfWarrantLiability
5369000
CY2016 mnkd Effective Income Tax Rate Reconciliation Permanent Items
EffectiveIncomeTaxRateReconciliationPermanentItems
-0.019 pure
CY2016 mnkd Gain Loss On Purchase Commitments
GainLossOnPurchaseCommitments
2265000
CY2016 mnkd Class Of Warrant Exercisable Period
ClassOfWarrantExercisablePeriod
P5Y
CY2016 mnkd Stock Options Granted Vesting Rate
StockOptionsGrantedVestingRate
0.25 pure
CY2016 mnkd Number Of Asset Groups
NumberOfAssetGroups
2 asset_group
CY2016 mnkd Proceeds From Issuance Of Common Stock And Warrants Net
ProceedsFromIssuanceOfCommonStockAndWarrantsNet
893000
CY2016 mnkd Payments For Use Of Aircrafts
PaymentsForUseOfAircrafts
0
CY2016 mnkd Warrant Issuance Costs
WarrantIssuanceCosts
653000
CY2016 mnkd Interest On Note Payable To Principal Stockholder
InterestOnNotePayableToPrincipalStockholder
2901000
CY2016 mnkd Net Revenue From Collaboration
NetRevenueFromCollaboration
171965000
CY2016 mnkd Increase Decrease In Other Deferred Charges
IncreaseDecreaseInOtherDeferredCharges
309000
CY2016 mnkd Increase Decrease In Purchase Commitment Loss
IncreaseDecreaseInPurchaseCommitmentLoss
40566000
CY2016 mnkd Reclassification Of Property Plant And Equipment To Assets Held For Sale Noncash
ReclassificationOfPropertyPlantAndEquipmentToAssetsHeldForSaleNoncash
17294000
CY2016 mnkd Deferred Cost Related To Sale Of Raw Insulin
DeferredCostRelatedToSaleOfRawInsulin
0
CY2016 mnkd Deferred Revenue From Sale Of Raw Insulin
DeferredRevenueFromSaleOfRawInsulin
1800000
CY2016 mnkd Common Stock And Warrants Issued In Direct Placement Value
CommonStockAndWarrantsIssuedInDirectPlacementValue
50000000
CY2016 mnkd Net Revenue From Bulk Insulin
NetRevenueFromBulkInsulin
898000
CY2016 mnkd Costs Of Revenue Collaboration
CostsOfRevenueCollaboration
32971000
CY2016Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
1.32
CY2016Q3 us-gaap Sales Revenue Net
SalesRevenueNet
162354000
CY2016Q3 us-gaap Net Income Loss
NetIncomeLoss
126520000
CY2015Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
79783000 shares
CY2015Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.38
CY2015Q1 us-gaap Net Income Loss
NetIncomeLoss
-30658000
CY2015Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
80203000 shares
CY2015Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.36
CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
-28910000
CY2016Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.29
CY2016Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
85771000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
85771000 shares
CY2016Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.29
CY2016Q1 us-gaap Net Income Loss
NetIncomeLoss
-24873000
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
91061000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
91061000 shares
CY2016Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.33
CY2016Q2 us-gaap Net Income Loss
NetIncomeLoss
-29959000
CY2015Q4 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
83862000 shares
CY2015Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-3.30
CY2015Q4 us-gaap Net Income Loss
NetIncomeLoss
-277020000
CY2015Q4 us-gaap Asset Impairment Charges
AssetImpairmentCharges
242700000
CY2016Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.56
CY2016Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
96510000 shares
CY2016Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
95676000 shares
CY2016Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.56
CY2016Q4 us-gaap Sales Revenue Net
SalesRevenueNet
12404000
CY2016Q4 us-gaap Net Income Loss
NetIncomeLoss
53976000
CY2015Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
81039000 shares
CY2015Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.39
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
-31857000
CY2016Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.31
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
96548000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
95627000 shares

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