2023 Q3 Form 10-Q Financial Statement

#000121390023065678 Filed on August 10, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2
Revenue $674.0K
YoY Change 0.0%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.936M $2.644M
YoY Change -45.06% -9.2%
% of Gross Profit
Research & Development $957.0K $1.821M
YoY Change -82.1% -80.16%
% of Gross Profit
Depreciation & Amortization $50.00K $52.00K
YoY Change 233.33% 246.67%
% of Gross Profit
Operating Expenses $2.893M $4.465M
YoY Change -67.39% -63.07%
Operating Profit -$2.893M -$3.791M
YoY Change -64.67% -66.8%
Interest Expense $826.0K $2.478M
YoY Change -20.27% 608.0%
% of Operating Profit
Other Income/Expense, Net $435.0K $2.478M
YoY Change -58.01%
Pretax Income -$3.284M -$1.313M
YoY Change -54.09% -88.14%
Income Tax
% Of Pretax Income
Net Earnings -$3.222M -$1.194M
YoY Change -55.58% -89.21%
Net Earnings / Revenue -177.15%
Basic Earnings Per Share $0.08 $0.03
Diluted Earnings Per Share $0.08 $0.03
COMMON SHARES
Basic Shares Outstanding 40.28M shares 40.03M shares
Diluted Shares Outstanding 40.45M shares 40.23M shares

Balance Sheet

Concept 2023 Q3 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $175.0M $7.101M
YoY Change 365.49% -80.39%
Cash & Equivalents $5.468M $6.767M
Short-Term Investments $169.6M $334.0K
Other Short-Term Assets $700.0K $769.0K
YoY Change 12.36% -19.73%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $175.7M $151.0M
YoY Change 9.7% 11.94%
LONG-TERM ASSETS
Property, Plant & Equipment $923.0K $945.0K
YoY Change 72.52% 120.28%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $53.50M $3.531M
YoY Change 1880.01% -86.36%
Other Assets $0.00 $26.00K
YoY Change -100.0% 13.04%
Total Long-Term Assets $55.19M $5.344M
YoY Change 1193.97% -80.51%
TOTAL ASSETS
Total Short-Term Assets $175.7M $151.0M
Total Long-Term Assets $55.19M $5.344M
Total Assets $230.9M $156.3M
YoY Change 40.41% -3.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.600M $828.0K
YoY Change -38.17% -76.21%
Accrued Expenses $300.0K $236.0K
YoY Change 31.58% 1.29%
Deferred Revenue
YoY Change
Short-Term Debt $75.36M $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $78.18M $1.067M
YoY Change 1098.08% -83.37%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $4.500M $4.592M
YoY Change -5.56% 61.92%
Total Long-Term Liabilities $4.488M $4.592M
YoY Change -5.81% 61.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $78.18M $1.067M
Total Long-Term Liabilities $4.488M $4.592M
Total Liabilities $82.66M $5.659M
YoY Change 632.18% -38.85%
SHAREHOLDERS EQUITY
Retained Earnings -$170.9M -$167.7M
YoY Change 10.58% 13.69%
Common Stock $320.0M $484.0K
YoY Change 67990.21% 4.54%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $149.1M $151.5M
YoY Change
Total Liabilities & Shareholders Equity $230.9M $156.3M
YoY Change 40.41% -3.68%

Cashflow Statement

Concept 2023 Q3 2023 Q2
OPERATING ACTIVITIES
Net Income -$3.222M -$1.194M
YoY Change -55.58% -89.21%
Depreciation, Depletion And Amortization $50.00K $52.00K
YoY Change 233.33% 246.67%
Cash From Operating Activities -$700.0K -$2.634M
YoY Change -68.76% -68.98%
INVESTING ACTIVITIES
Capital Expenditures $30.00K $20.00K
YoY Change -124.79% -200.0%
Acquisitions
YoY Change
Other Investing Activities -$75.09M -$14.69M
YoY Change -5662.22% -241.48%
Cash From Investing Activities -$75.13M -$14.71M
YoY Change -6213.1% -241.95%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 74.55M 0.000
YoY Change 1628.5% -100.0%
NET CHANGE
Cash From Operating Activities -700.0K -2.634M
Cash From Investing Activities -75.13M -14.71M
Cash From Financing Activities 74.55M 0.000
Net Change In Cash -1.280M -17.34M
YoY Change -138.78% -1026.5%
FREE CASH FLOW
Cash From Operating Activities -$700.0K -$2.634M
Capital Expenditures $30.00K $20.00K
Free Cash Flow -$730.0K -$2.654M
YoY Change -65.57% -68.67%

Facts In Submission

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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 72px"> </td> <td style="width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>c.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Revenue recognition</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><i>HTIT</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">On November 30, 2015, the Company entered into a Technology License Agreement (the “TLA”), with Hefei Tianhui Incubator of Technologies Co. Ltd. (“HTIT”) and on December 21, 2015, the parties entered into an Amended and Restated Technology License Agreement that was further amended by the parties on June 3, 2016 and July 24, 2016 (the “HTIT License Agreement”).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">As of June 30, 2023, an aggregate amount of $22,382 was allocated to the HTIT License Agreement, all of which were received through the balance sheet date. Through June 30, 2023, the Company recognized revenue associated with this agreement in the aggregate amount of $20,382, of which $1,340 was recognized in the six month period ended June 30, 2023, and deferred the remaining amount of $2,000, which is presented as long-term deferred revenues on the condensed consolidated balance sheet.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><i>Medicox</i></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">On November 13, 2022, the Company entered into a distribution license agreement (“Medicox License Agreement”) with Medicox Co., Ltd. (“Medicox”). The Medicox License Agreement grants Medicox an exclusive license to apply for regulatory approval and distribute ORMD-0801 in the Republic of Korea. For further details, see note 3a.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">Under ASC 606, the Company identified Medicox as a customer and the Medicox License Agreement as a contract with a customer.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company identified a performance obligation in the Medicox License Agreement to stand-ready and provide Medicox with support in its commercialization efforts in the Republic of Korea. This performance obligation includes a non-distinct distribution license for ORMD-0801, which the Company views a predominant item in the combined performance obligation. The Company concluded that the license is not distinct, as no party other than the Company is capable of providing related services to Medicox, and both the license and related services are necessary for the customer to obtain a regulatory approval in the Republic of Korea. In addition, the agreement covers the terms of future manufacturing services, that are contingent on the completion and success of the commercialization efforts.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Medicox License Agreement contains a fixed consideration of $2,000, which was received by the Company in fiscal year 2022 and is presented under long-term deferred revenues as of June 30, 2023. It also contains variable consideration of contractual milestone payments and sales-based royalties.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">The Company’s obligation to stand-ready and support Medicox will be recognized on a straight-line basis over the period the Company expects to provide support to Medicox. As of June 30, 2023, this support has not commenced, and no revenue was recognized from the Medicox License Agreement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">If Medicox proceeds with the regulatory approval process in the Republic of Korea, the Company expects most of the revenue to be recognized at a later stage. The Company notes that its Phase 3 trial did not meet its primary and secondary endpoints. If Medicox chooses to terminate the agreement as a result of the outcome of the applicable Phase 3 trials, the Company expects to accelerate revenue recognition and recognize it at such time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"><span style="font-size: 9pt"> </span></p>
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CY2023Q2 us-gaap Available For Sale Debt Securities Amortized Cost Basis
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ormp Gross Unrealized Gainslosses
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CY2023Q2 us-gaap Held To Maturity Securities Fair Value
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CY2022Q4 us-gaap Available For Sale Debt Securities Amortized Cost Basis
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CY2022 ormp Gross Unrealized Gainslosses
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CY2022Q3 ormp Aggregate Purchase Prices
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CY2022Q3 us-gaap Preferred Stock Dividend Rate Percentage
PreferredStockDividendRatePercentage
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us-gaap Dividend Income Equity Securities Operating
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CY2021Q3 us-gaap Noninterest Expense Offering Cost
NoninterestExpenseOfferingCost
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CY2021Q3 us-gaap Deferred Compensation Arrangement With Individual Cash Awards Granted Percentage
DeferredCompensationArrangementWithIndividualCashAwardsGrantedPercentage
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CY2023Q2 us-gaap Stockholders Equity Other Shares
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CY2023Q2 us-gaap Proceeds From Debt Net Of Issuance Costs
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CY2023Q3 us-gaap Proceeds From Debt Net Of Issuance Costs
ProceedsFromDebtNetOfIssuanceCosts
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CY2023Q2 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
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CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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us-gaap Costs And Expenses Related Party
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