2020 Q1 Form 10-Q Financial Statement

#000143774920010432 Filed on May 12, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q1 2018 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 $460.0K $300.0K $330.0K
YoY Change 53.33% -54.55% -71.79%
% of Gross Profit
Research & Development $598.0K $350.0K $310.0K
YoY Change 70.86% -39.66% -51.56%
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $598.0K $350.0K $640.0K
YoY Change 70.86% -39.66% -64.64%
Operating Profit -$1.066M -$653.0K
YoY Change 63.25% -47.25%
Interest Expense $4.000K $1.033M -$50.00K
YoY Change -99.61% 118.39% -89.36%
% of Operating Profit
Other Income/Expense, Net -$824.0K -$999.0K -$140.0K
YoY Change -17.52% 83.98% -450.0%
Pretax Income -$1.890M -$1.652M -$830.0K
YoY Change 14.41% -7.24% -62.95%
Income Tax -$92.00K -$71.00K -$90.00K
% Of Pretax Income
Net Earnings -$1.798M -$1.581M -$740.0K
YoY Change 13.73% -9.81% -65.74%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$268.3K -$311.6K -$145.7K
COMMON SHARES
Basic Shares Outstanding 6.631M 5.070M
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2019 Q1 2018 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.300M $1.380M $1.410M
YoY Change -5.8% 17.95% 840.0%
Cash & Equivalents $1.296M $1.379M $1.405M
Short-Term Investments
Other Short-Term Assets $390.0K $70.00K $110.0K
YoY Change 457.14% -53.33% -45.0%
Inventory
Prepaid Expenses $389.0K $73.00K $110.0K
Receivables
Other Receivables
Total Short-Term Assets $2.091M $1.860M $1.847M
YoY Change 12.42% 5.14% 140.81%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $45.00K $51.00K $51.00K
YoY Change -11.76% -8.93%
Total Long-Term Assets $45.00K $51.00K $51.00K
YoY Change -11.76% -8.93%
TOTAL ASSETS
Total Short-Term Assets $2.091M $1.860M $1.847M
Total Long-Term Assets $45.00K $51.00K $51.00K
Total Assets $2.136M $1.911M $1.898M
YoY Change 11.77% 4.71% 147.46%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $271.0K $905.0K $1.064M
YoY Change -70.06% -25.94% -11.04%
Accrued Expenses $308.0K $200.0K $216.0K
YoY Change 54.0% 112.77% -82.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $830.0K $259.0K $286.0K
YoY Change 220.46% 418.0% 1942.86%
Total Short-Term Liabilities $1.412M $2.499M $1.630M
YoY Change -43.5% -35.84% -60.91%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00
YoY Change -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.412M $2.499M $1.630M
Total Long-Term Liabilities $0.00 $0.00
Total Liabilities $1.410M $2.500M $1.630M
YoY Change -43.6% -39.69% -63.42%
SHAREHOLDERS EQUITY
Retained Earnings -$43.06M -$36.64M -$35.06M
YoY Change 17.51% 18.55% 20.26%
Common Stock $7.000K $5.000K $5.000K
YoY Change 40.0% 25.0% 25.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $724.0K -$588.0K $268.0K
YoY Change
Total Liabilities & Shareholders Equity $2.136M $1.911M $1.898M
YoY Change 11.77% 4.71% 147.46%

Cashflow Statement

Concept 2020 Q1 2019 Q1 2018 Q4
OPERATING ACTIVITIES
Net Income -$1.798M -$1.581M -$740.0K
YoY Change 13.73% -9.81% -65.74%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$1.120M -$783.0K -$160.0K
YoY Change 43.04% 33.16% -79.75%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $26.00K $27.00K
YoY Change -3.7%
Cash From Financing Activities -26.00K 758.0K 1.330M
YoY Change -103.43% -52.95%
NET CHANGE
Cash From Operating Activities -1.120M -783.0K -160.0K
Cash From Investing Activities
Cash From Financing Activities -26.00K 758.0K 1.330M
Net Change In Cash -1.153M -25.00K 1.170M
YoY Change 4512.0% -102.44% -248.1%
FREE CASH FLOW
Cash From Operating Activities -$1.120M -$783.0K -$160.0K
Capital Expenditures
Free Cash Flow
YoY Change

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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">2.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risks and Uncertainties</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company operates in a highly regulated and competitive environment. The development, manufacturing and marketing of pharmaceutical products require approval from, and are subject to ongoing oversight by, the Food and Drug Administration (&#x201c;FDA&#x201d;) in the United States, the Therapeutic Goods Administration in Australia, the European Medicines Agency in the European Union, and comparable agencies in other countries. Obtaining approval for a new pharmaceutical product is never certain, <div style="display: inline; font-style: italic; font: inherit;"> may </div>take many years, and is normally expected to involve substantial expenditures.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">We have incurred losses of <div style="display: inline; font-style: italic; font: inherit;">$42.6</div> million since our inception in <div style="display: inline; font-style: italic; font: inherit;">2011.</div> For the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020, </div>we incurred a net loss of <div style="display: inline; font-style: italic; font: inherit;">$1.8</div> million, which includes a&nbsp;foreign currency loss of <div style="display: inline; font-style: italic; font: inherit;">$0.8</div> million. We also incurred negative cash flows from operating activities of <div style="display: inline; font-style: italic; font: inherit;">$1.2</div> million for this period. As we continue to pursue development activities and seek commercialization of our initial product candidate, SBP-<div style="display: inline; font-style: italic; font: inherit;">101,</div> we expect to incur substantial losses, which are likely to generate negative net cash flows from operating activities. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020, </div>we had cash of <div style="display: inline; font-style: italic; font: inherit;">$1.3</div> million, working capital of <div style="display: inline; font-style: italic; font: inherit;">$0.7</div> million, (current assets less current liabilities) and stockholders&#x2019; equity of <div style="display: inline; font-style: italic; font: inherit;">$0.7</div>&nbsp;million. The Company&#x2019;s principal sources of cash have historically included the issuance of convertible debt and equity securities.</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The condensed<div style="display: inline; font-weight: bold;"> </div>consolidated financial statements do <div style="display: inline; font-style: italic; font: inherit;">not</div> include any adjustments relating to the recoverability or classification of assets or the amounts of liabilities that might result from the outcome of these uncertainties. Our current independent registered public accounting firm included a paragraph emphasizing this going concern uncertainty in their audit report regarding our <div style="display: inline; font-style: italic; font: inherit;">2019</div> financial statements dated <div style="display: inline; font-style: italic; font: inherit;"> March 24, 2020. </div>Our ability to continue as a going concern, realize the carrying value of our assets and discharge our liabilities in the ordinary course of business is dependent upon a number of factors, including our ability to obtain additional financing, the success of our development efforts, our ability to obtain marketing approval for our SBP-<div style="display: inline; font-style: italic; font: inherit;">101</div> product candidate in the United States, Australia, the European Union or other markets and ultimately our ability to market and sell our SBP-<div style="display: inline; font-style: italic; font: inherit;">101</div> product candidate. These factors, among others, raise substantial doubt about our ability to continue operations as a going concern. See Note <div style="display: inline; font-style: italic; font: inherit;">4</div> titled &#x201c;Liquidity and Business Plan.&#x201d;</div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;">On <div style="display: inline; font-style: italic; font: inherit;"> March 11, 2020, </div>the World Health Organization declared the spread of a novel strain of coronavirus (&#x201c;COVID-<div style="display: inline; font-style: italic; font: inherit;">19&#x201d;</div>) a global pandemic and continued widespread infection in the United States is a possibility. Actions have been taken by federal, state and local governmental authorities to combat the spread of COVID-<div style="display: inline; font-style: italic; font: inherit;">19,</div> including through issuances of &#x201c;stay-at-home&#x201d; directives and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations.&nbsp; These measures, while intended to protect human life, have led to significantly reduced economic activity. The rapid development and uncertainty of the situation precludes any prediction as to the ultimate impact COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> will have on the Company's business, financial condition, results of operation and cash flows, which will depend largely on future developments directly or indirectly relating to the duration and scope of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> outbreak in the United States and Australia.&nbsp; On <div style="display: inline; font-style: italic; font: inherit;"> April 3, 2020, </div>we initiated a temporary pause in the enrollment of new patients in our ongoing clinical trial.&nbsp; We anticipate resumption of new patient enrollment in <div style="display: inline; font-style: italic; font: inherit;">Q2</div> <div style="display: inline; font-style: italic; font: inherit;">2020</div> once conditions allow.&nbsp; We continue to treat patients already enrolled.&nbsp;</div></div>
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RetainedEarningsAccumulatedDeficit
-43056000
CY2019Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-41258000
CY2020Q1 us-gaap Share Based Compensation
ShareBasedCompensation
112000
CY2019Q1 us-gaap Share Based Compensation
ShareBasedCompensation
10000
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
18549
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
19549
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
1000
CY2019Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1744811
CY2020Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1745811
CY2020Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
1346936
CY2020Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
1745811
CY2020Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2
P6Y343D
CY2020Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Exercise Price Beginning Balance1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1
6.525
CY2020Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P7Y156D
CY2020Q1 us-gaap Stockholders Equity
StockholdersEquity
724000
CY2019Q4 us-gaap Stockholders Equity
StockholdersEquity
1385000
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
268000
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
-588000
CY2020Q1 us-gaap Unsecured Debt Current
UnsecuredDebtCurrent
91000
CY2019Q4 us-gaap Unsecured Debt Current
UnsecuredDebtCurrent
116000
CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:0pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of estimates</div></div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amount of expenses during the reporting period. Actual results could differ from those estimates.</div></div></div></div></div></div></div></div></div></div></div>
CY2020Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
6631308
CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5072397

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