2015 Q1 Form 10-K Financial Statement

#000156459015002008 Filed on March 26, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2013 Q4 2013 Q3
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.920M $1.860M $290.0K
YoY Change -5.88% 933.33%
% of Gross Profit
Research & Development $3.960M $160.0K $190.7K
YoY Change 575.84% 33.33%
% of Gross Profit
Depreciation & Amortization $9.711K $0.00
YoY Change 3496.67%
% of Gross Profit
Operating Expenses $5.878M $2.030M $482.5K
YoY Change 903.27% 600.0%
Operating Profit -$5.878M -$2.043M -$482.0K
YoY Change 124.09%
Interest Expense -$230.7K -$80.00K -$10.00K
YoY Change -27.9%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$6.090M -$2.130M -$490.0K
YoY Change 107.14% 610.0%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$6.093M -$2.127M -$488.0K
YoY Change 107.39% 609.0%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$313.6K -$116.5K -$119.8K
COMMON SHARES
Basic Shares Outstanding 24.72M
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q1 2013 Q4 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $52.20M $1.800M $1.100M
YoY Change 2385.71% 800.0%
Cash & Equivalents $52.20M $1.818M $1.100M
Short-Term Investments
Other Short-Term Assets $500.0K $0.00 $0.00
YoY Change
Inventory
Prepaid Expenses $852.00
Receivables
Other Receivables
Total Short-Term Assets $52.70M $1.819M $1.100M
YoY Change 2295.45% 809.58%
LONG-TERM ASSETS
Property, Plant & Equipment $0.00 $3.232K
YoY Change
Goodwill $7.918M
YoY Change
Intangibles $19.00M
YoY Change
Long-Term Investments
YoY Change
Other Assets $400.0K
YoY Change
Total Long-Term Assets $49.10M $27.36M $0.00
YoY Change -3.54%
TOTAL ASSETS
Total Short-Term Assets $52.70M $1.819M $1.100M
Total Long-Term Assets $49.10M $27.36M $0.00
Total Assets $101.8M $29.17M $1.100M
YoY Change 91.71% 14487.39%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.000M $523.0K
YoY Change -64.29%
Accrued Expenses $3.200M $815.2K $400.0K
YoY Change 77.78% 307.62%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $100.0K $0.00
YoY Change -100.0%
Long-Term Debt Due -$158.3K
YoY Change
Total Short-Term Liabilities $4.400M $1.407M $400.0K
YoY Change -18.52% 603.29%
LONG-TERM LIABILITIES
Long-Term Debt $9.547M $0.00 $0.00
YoY Change
Other Long-Term Liabilities $5.129K $0.00
YoY Change
Total Long-Term Liabilities $9.552M $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $4.400M $1.407M $400.0K
Total Long-Term Liabilities $9.552M $0.00 $0.00
Total Liabilities $27.41M $8.995M $400.0K
YoY Change 43.52% 4397.59%
SHAREHOLDERS EQUITY
Retained Earnings -$80.82M -$17.83M
YoY Change
Common Stock $155.3M $38.01M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $74.44M $20.18M $700.0K
YoY Change
Total Liabilities & Shareholders Equity $101.8M $29.17M $1.100M
YoY Change 91.8% 14487.39%

Cashflow Statement

Concept 2015 Q1 2013 Q4 2013 Q3
OPERATING ACTIVITIES
Net Income -$6.093M -$2.127M -$488.0K
YoY Change 107.39% 609.0%
Depreciation, Depletion And Amortization $9.711K $0.00
YoY Change 3496.67%
Cash From Operating Activities -$4.910M -$1.210M -$380.0K
YoY Change 295.97% 426.09% -44.12%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 38.57M 1.930M 0.000
YoY Change 9789.74% 543.33% -100.0%
NET CHANGE
Cash From Operating Activities -4.910M -1.210M -380.0K
Cash From Investing Activities 0.000 0.000 0.000
Cash From Financing Activities 38.57M 1.930M 0.000
Net Change In Cash 33.66M 720.0K -380.0K
YoY Change 10418.75% 928.57% 375.0%
FREE CASH FLOW
Cash From Operating Activities -$4.910M -$1.210M -$380.0K
Capital Expenditures $0.00 $0.00
Free Cash Flow -$1.210M -$380.0K
YoY Change 426.09%

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<div> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">NOTE&#160;1&#160;&#8212; NATURE OF OPERATIONS AND LIQUIDITY </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Nature of Operations </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Minerva Neurosciences,&#160;Inc. (&#8220;Minerva&#8221; or the &#8220;Company&#8221;), formerly known as Cyrenaic Pharmaceuticals&#160;Inc. (&#8220;Cyrenaic&#8221;) was incorporated on April&#160;23, 2007. The Company is a biopharmaceutical company focused on the development of an experimental drug for the treatment of schizophrenia (discussed further in Note&#160;6&#160;&#8212; License Agreement). On November&#160;12, 2013, Sonkei Pharmaceuticals,&#160;Inc. (&#8220;Sonkei&#8221;), a biopharmaceutical company focused on the development of an experimental drug for the treatment of depression and an affiliated company through certain common ownership, was merged into Cyrenaic with Cyrenaic being the surviving company. Subsequent to the merger, Cyrenaic changed its name to Minerva Neurosciences,&#160;Inc. In 2014 the Company formed Minerva Neurosciences Securities Corporation, a wholly-owned subsidiary.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On February&#160;11, 2014, the Company acquired Mind-NRG (discussed further in Note&#160;3&#160;&#8212; Business Combinations).&#160;&#160;Mind-NRG is a Swiss development stage biopharmaceutical company focused on the development and commercialization of an experimental drug for the treatment of Parkinson&#8217;s disease. The Company acquired 100% of the share capital of Mind-NRG largely to obtain the intellectual property estate which underpins Mind-NRG&#8217;s lead product candidate, renamed MIN-301.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On February&#160;12, 2014, subject to the completion of an initial public offering (&#8220;IPO&#8221;), the Company entered into a co-development and license agreement (discussed further in Note&#160;8&#160;&#8212; Co-Development and License Agreement) pursuant to which the licensor granted the Company an exclusive license, in certain territories, under certain patent and patent applications to sell products containing any orexin 2 compound, controlled by the licensor and claimed in a licensor patent right, as an active ingredient, or MIN-202, for any use in humans. The license became effective on July 7, 2014 at the closing of the IPO and the payment of the $22.0&#160;million license fee was made at that date.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Times New Roman;text-transform:none;font-variant: normal;">Going Concern </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has limited capital resources and has incurred recurring operating losses and negative cash flows from operations since inception. As of December 31, 2014, the Company has an accumulated deficit of approximately $74.7&#160;million. Management expects to continue to incur operating losses and negative cash flows from operations. The Company has financed its business to date from proceeds from the sale of common stock, loans and convertible promissory notes. On July 7, 2014, the Company sold shares in an IPO and two private placements resulting in proceeds to the Company of approximately $55.0 million.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In January 2015 the Company entered into a loan and security agreement and drew down on $10.0 million in term loans.&nbsp;&nbsp;In March 2015 the Company closed the sale of 6,281,661 shares of common stock and warrants to purchase an equal number of shares of common stock in a private placement resulting in net proceeds to the Company of $28.8 million (both discussed further in Note 15 &#8211; Subsequent Events).&nbsp;&nbsp;The Company believes that based on its operating plan, cash on hand at December 31, 2014 and the proceeds from the term loans and the private placement in March 2015 will be sufficient to fund the Company&#8217;s operations through the end of 2016.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company will need to raise additional capital in order to continue to fund operations and fully fund its clinical development programs. The Company believes that it will be able to obtain additional working capital through equity financings or other arrangements to fund operations; however, there can be no assurance that such additional financing, if available, can be obtained on terms acceptable to the Company.&#160;&#160;If the Company is unable to obtain such additional financing, future operations would need to be scaled back or discontinued.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;color:#;font-size:10pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The accompanying financial statements have been prepared as though the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:0%;font-size:9pt;">&nbsp;</p></div>
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CY2014 us-gaap Concentration Risk Credit Risk
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