2014 Q4 Form 10-Q Financial Statement

#000119312514395314 Filed on November 04, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q4
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.490M $990.0K $690.0K
YoY Change 115.94% 153.85% 25.45%
% of Gross Profit
Research & Development $6.330M $5.323M $2.750M
YoY Change 130.18% 75.84% 235.37%
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $7.820M $6.310M $3.440M
YoY Change 127.33% 84.66% 145.71%
Operating Profit
YoY Change
Interest Expense -$10.00K $2.000K -$50.00K
YoY Change -80.0% 21.73% 400.0%
% of Operating Profit
Other Income/Expense, Net -$260.0K $26.00K -$50.00K
YoY Change 420.0% -41.62% 400.0%
Pretax Income -$8.090M -$6.284M -$3.540M
YoY Change 128.53% 86.33% 147.55%
Income Tax $0.00 -$222.00 $0.00
% Of Pretax Income
Net Earnings -$8.090M -$6.284M -$3.540M
YoY Change 128.53% 86.61% 147.55%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$754.7K -$586.9K -$11.80M
COMMON SHARES
Basic Shares Outstanding 10.70M shares 10.70M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.10M $40.00M $13.80M
YoY Change 183.33% 151.57% 590.0%
Cash & Equivalents $14.91M $15.87M $11.01M
Short-Term Investments $24.20M $24.10M $2.800M
Other Short-Term Assets $100.0K $300.0K $1.500M
YoY Change -93.33% 200.0%
Inventory
Prepaid Expenses $283.9K $63.98K
Receivables $100.0K $100.0K $0.00
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $39.30M $40.36M $15.30M
YoY Change 156.93% 152.27% 628.4%
LONG-TERM ASSETS
Property, Plant & Equipment $105.0K $97.58K $75.47K
YoY Change 39.14% -2.42% -62.27%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $2.000M $8.100M
YoY Change
Other Assets $13.00K $13.86K $277.3K
YoY Change -95.31% -86.14%
Total Long-Term Assets $2.121M $8.251M $352.8K
YoY Change 501.27% 4025.75% 76.38%
TOTAL ASSETS
Total Short-Term Assets $39.30M $40.36M $15.30M
Total Long-Term Assets $2.121M $8.251M $352.8K
Total Assets $41.42M $48.62M $15.65M
YoY Change 164.69% 200.09% 580.4%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.200M $4.600M $600.0K
YoY Change 766.67% 318.18% 200.0%
Accrued Expenses $1.700M
YoY Change 1600.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $300.0K
YoY Change
Total Short-Term Liabilities $5.203M $4.572M $2.620M
YoY Change 98.58% 117.7% 555.03%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $2.000M
YoY Change -100.0%
Other Long-Term Liabilities $72.00K $100.0K $8.560K
YoY Change 741.12% -96.3% -99.22%
Total Long-Term Liabilities $72.00K $100.0K $8.560K
YoY Change 741.12% -96.3% -99.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.203M $4.572M $2.620M
Total Long-Term Liabilities $72.00K $100.0K $8.560K
Total Liabilities $5.275M $4.635M $7.484M
YoY Change -29.52% -3.43% 398.94%
SHAREHOLDERS EQUITY
Retained Earnings -$89.42M -$81.33M -$65.69M
YoY Change 36.11%
Common Stock $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $36.15M $43.98M -$65.69M
YoY Change
Total Liabilities & Shareholders Equity $41.42M $48.62M $15.65M
YoY Change 164.69% 200.09% 580.4%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q4
OPERATING ACTIVITIES
Net Income -$8.090M -$6.284M -$3.540M
YoY Change 128.53% 86.61% 147.55%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$6.700M -$4.180M -$3.740M
YoY Change 79.14% 140.23% 233.93%
INVESTING ACTIVITIES
Capital Expenditures -$20.00K -$20.00K $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $6.080M $2.220M -$2.810M
YoY Change -316.37% 11000.0%
Cash From Investing Activities $6.050M $2.210M -$2.810M
YoY Change -315.3% 10950.0% 28000.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -50.00K 1.800M
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -6.700M -4.180M -3.740M
Cash From Investing Activities 6.050M 2.210M -2.810M
Cash From Financing Activities 0.000 -50.00K 1.800M
Net Change In Cash -650.0K -2.020M -4.750M
YoY Change -86.32% 17.44% 320.35%
FREE CASH FLOW
Cash From Operating Activities -$6.700M -$4.180M -$3.740M
Capital Expenditures -$20.00K -$20.00K $0.00
Free Cash Flow -$6.680M -$4.160M -$3.740M
YoY Change 78.61% 139.08% 236.94%

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AQUINOX PHARMACEUTICALS, INC
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<div> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> <b>1. Nature of operations</b></p> <p style="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Aquinox Pharmaceuticals, Inc. and its wholly owned subsidiary, Aquinox Pharmaceuticals (Canada) Inc., (consolidated and combined the &#x201C;Company&#x201D;&#x2014;see Note&#xA0;2 Basis of presentation) is a clinical stage pharmaceutical company discovering and developing oral drug candidates to treat inflammation and cancer. The Company&#x2019;s primary focus is the development of anti-inflammatory product candidates targeting SHIP1, which is a key regulator of a cellular signaling pathway in immune cells. Aquinox Pharmaceuticals (USA) Inc. was incorporated on May&#xA0;31, 2007 in the State of Delaware, United States. On January&#xA0;27, 2014, Aquinox Pharmaceuticals (USA) Inc. changed its name to Aquinox Pharmaceuticals, Inc. (&#x201C;Aquinox USA&#x201D;).</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Aquinox Pharmaceuticals (Canada) Inc. (&#x201C;AQXP Canada&#x201D;), was originally incorporated under the name of 6175813 Canada Inc. on December&#xA0;26, 2003 under the Canada Business Corporations Act. In May 2014, after a corporate restructuring, the name was changed to Aquinox Pharmaceuticals (Canada) Inc.</p> <p style="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> The Company operates in Vancouver, British Columbia, Canada.</p> </div>
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<div> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 18pt"> <b><i>(b) Use of estimates</i></b></p> <p style="MARGIN-BOTTOM: 0pt; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman; MARGIN-TOP: 6pt"> The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring management estimates are the valuation of stock options and warrants, amortization and depreciation, accrual of expenses, valuation allowance for deferred income taxes, and contingencies. Actual results could differ from those estimates.</p> </div>
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
7984052 shares
dei Document Period End Date
DocumentPeriodEndDate
2014-09-30
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 Segment
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2014
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-1.97
dei Entity Central Index Key
EntityCentralIndexKey
0001404644
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.08 pure
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
824721 shares
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-15936739
us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
5312
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-15929216
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1380123
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
2982940
us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
53130000
us-gaap Proceeds From Repurchase Of Redeemable Preferred Stock
ProceedsFromRepurchaseOfRedeemablePreferredStock
-590
us-gaap Proceeds From Sale And Maturity Of Available For Sale Securities
ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
6920438
us-gaap Share Based Compensation
ShareBasedCompensation
585111
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
36474883
us-gaap Foreign Currency Transaction Gain Loss Unrealized
ForeignCurrencyTransactionGainLossUnrealized
-107754
us-gaap Line Of Credit Facility Increase Accrued Interest
LineOfCreditFacilityIncreaseAccruedInterest
9844
us-gaap Repayments Of Debt
RepaymentsOfDebt
2600000
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
2609844
us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
4943
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
125082
us-gaap Increase Decrease In Accounts And Other Receivables
IncreaseDecreaseInAccountsAndOtherReceivables
48297
us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
957818
us-gaap Available For Sale Debt Securities Gross Unrealized Gain
AvailableForSaleDebtSecuritiesGrossUnrealizedGain
7301
us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
5251288
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
86322
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-15730777
us-gaap Net Income Loss
NetIncomeLoss
-15936517
us-gaap Interest Paid
InterestPaid
31719
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
7301
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
115490
us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationTransfersIntoLevel3
0
us-gaap Interest Expense
InterestExpense
458651
us-gaap Operating Expenses
OperatingExpenses
14556616
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
11753749
us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
319635
us-gaap Available For Sale Debt Securities Gross Unrealized Loss
AvailableForSaleDebtSecuritiesGrossUnrealizedLoss
0
us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
4862842
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-222
us-gaap Noncash Or Part Noncash Acquisition Intangible Assets Acquired1
NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1
186356
us-gaap Temporary Equity Accretion To Redemption Value Adjustment
TemporaryEquityAccretionToRedemptionValueAdjustment
19551
us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
45278582
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
16534
us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-29624233
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
460
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
2802867
CY2014Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
10695042 shares
CY2014Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
us-gaap Proceeds From Interest Received
ProceedsFromInterestReceived
80167
aqxp Amortization Of Preferred Stock Discount
AmortizationOfPreferredStockDiscount
1884233
aqxp Extinguishment Of Discount On Temporary Equity
ExtinguishmentOfDiscountOnTemporaryEquity
800206
aqxp Income Tax Expense On Preferred Stock
IncomeTaxExpenseOnPreferredStock
100291
aqxp Reversal Of Income Tax Payable On Preferred Stock
ReversalOfIncomeTaxPayableOnPreferredStock
1897702
aqxp Accretion Of Warrant Discount
AccretionOfWarrantDiscount
213511
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0170 pure
CY2013Q3 us-gaap Temporary Equity Accretion To Redemption Value Adjustment
TemporaryEquityAccretionToRedemptionValueAdjustment
9602
CY2013Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
389862
CY2013Q3 us-gaap Share Based Compensation
ShareBasedCompensation
127161
aqxp Temporary Equity Accretion To Redemption Value Liquidation Preference
TemporaryEquityAccretionToRedemptionValueLiquidationPreference
1132893
aqxp Period Shares Reserved For Issuance Will Increase
PeriodSharesReservedForIssuanceWillIncrease
P10Y
aqxp Fee And Penalty On Bank Loan Repayment
FeeAndPenaltyOnBankLoanRepayment
100000
aqxp Long Term Investments Maturity Period Maximum
LongTermInvestmentsMaturityPeriodMaximum
P24M
CY2013Q3 aqxp Amortization Of Preferred Stock Discount
AmortizationOfPreferredStockDiscount
120762
CY2013Q3 aqxp Income Tax Expense On Preferred Stock
IncomeTaxExpenseOnPreferredStock
-54726
CY2013Q3 aqxp Temporary Equity Accretion To Redemption Value Liquidation Preference
TemporaryEquityAccretionToRedemptionValueLiquidationPreference
1397867
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
6.16
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.00 pure
aqxp Common Stock Reserved For Issuance Description
CommonStockReservedForIssuanceDescription
Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year for a period of up to 10 years, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4% of the total number of shares of capital outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors.
aqxp Stock Based Compensation Increase In Common Stock Issuance Percentage
StockBasedCompensationIncreaseInCommonStockIssuancePercentage
0.04 pure
aqxp Extinguishment Of Remaining Share Issuance Costs Due To Conversion Of Preferred Stock
ExtinguishmentOfRemainingShareIssuanceCostsDueToConversionOfPreferredStock
439227
CY2013 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
2500000
CY2013 aqxp Discount On Issuance Of Warrants
DiscountOnIssuanceOfWarrants
226255
CY2013 aqxp Accretion Of Warrant Discount1
AccretionOfWarrantDiscount1
12744
CY2013Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
301745 shares
CY2013Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-15.64
CY2013Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6040020 shares
CY2013Q3 us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
142071
CY2013Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-3372531
CY2013Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-3367487
CY2013Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
44537
CY2013Q3 us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
24871
CY2013Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-4720230
CY2013Q3 us-gaap Net Income Loss
NetIncomeLoss
-3367487
CY2013Q3 us-gaap Interest Expense
InterestExpense
1643
CY2013Q3 us-gaap Operating Expenses
OperatingExpenses
3417068
CY2013Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3027206
CY2013Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-5044
CY2014Q3 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
86 shares
CY2014Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.59
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.08 pure
CY2014Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
824721 shares
CY2014Q3 us-gaap Other Operating Income Expense Net
OtherOperatingIncomeExpenseNet
-1350
CY2014Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-6284302
CY2014Q3 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-6277659
CY2014Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
25583
CY2014Q3 us-gaap Gain Loss On Derivative Instruments Net Pretax
GainLossOnDerivativeInstrumentsNetPretax
29388
CY2014Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-6284080
CY2014Q3 us-gaap Net Income Loss
NetIncomeLoss
-6284080
CY2014Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
6421
CY2014Q3 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Transfers Into Level3
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationTransfersIntoLevel3
0
CY2014Q3 us-gaap Interest Expense
InterestExpense
2455
CY2014Q3 us-gaap Operating Expenses
OperatingExpenses
6309885
CY2014Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5323015
CY2014Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-222
CY2014Q3 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
986870
CY2014Q3 us-gaap Share Based Compensation
ShareBasedCompensation
232635
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
141

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