2016 Q2 Form 10-Q Financial Statement

#000147929016000049 Filed on August 05, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $75.00K $75.00K
YoY Change 0.0% 0.0%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $7.018M $6.360M
YoY Change 10.35% 30.95%
% of Gross Profit
Research & Development $2.000M $10.30M
YoY Change -80.59% 27.04%
% of Gross Profit
Depreciation & Amortization $360.0K $550.0K
YoY Change -34.55% 10.0%
% of Gross Profit
Operating Expenses $24.16M $16.66M
YoY Change 44.99% 28.5%
Operating Profit -$24.08M -$16.59M
YoY Change 45.19% 28.67%
Interest Expense $286.0K $279.0K
YoY Change 2.51% 4.49%
% of Operating Profit
Other Income/Expense, Net -$143.0K -$76.00K
YoY Change 88.16% 11.76%
Pretax Income -$24.60M -$16.81M
YoY Change 46.34% 26.39%
Income Tax
% Of Pretax Income
Net Earnings -$24.60M -$16.81M
YoY Change 46.4% 26.33%
Net Earnings / Revenue -32802.67% -22406.67%
Basic Earnings Per Share -$0.88 -$0.71
Diluted Earnings Per Share -$0.88 -$0.71
COMMON SHARES
Basic Shares Outstanding 28.09M shares 23.58M shares
Diluted Shares Outstanding 28.09M shares 23.58M shares

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $216.9M $135.3M
YoY Change 60.31% -33.45%
Cash & Equivalents $52.65M $96.42M
Short-Term Investments $164.3M $38.90M
Other Short-Term Assets $1.600M $1.900M
YoY Change -15.79% 1317.91%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $218.6M $137.3M
YoY Change 59.23% -33.55%
LONG-TERM ASSETS
Property, Plant & Equipment $17.66M $19.13M
YoY Change -7.71% 17.21%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $0.00 $14.10M
YoY Change -100.0%
Other Assets $214.0K $374.0K
YoY Change -42.78%
Total Long-Term Assets $18.45M $33.96M
YoY Change -45.67% 102.64%
TOTAL ASSETS
Total Short-Term Assets $218.6M $137.3M
Total Long-Term Assets $18.45M $33.96M
Total Assets $237.0M $171.2M
YoY Change 38.43% -23.33%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.982M $2.211M
YoY Change 34.87% -17.71%
Accrued Expenses $5.622M $5.040M
YoY Change 11.55% 0.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $3.300M $2.900M
YoY Change 13.79% -73.64%
Total Short-Term Liabilities $11.92M $10.16M
YoY Change 17.34% -45.87%
LONG-TERM LIABILITIES
Long-Term Debt $3.700M $7.000M
YoY Change -47.14% 900.0%
Other Long-Term Liabilities $100.0K $5.200M
YoY Change -98.08% -1.89%
Total Long-Term Liabilities $100.0K $12.20M
YoY Change -99.18% 103.33%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.92M $10.16M
Total Long-Term Liabilities $100.0K $12.20M
Total Liabilities $21.23M $22.38M
YoY Change -5.1% -9.81%
SHAREHOLDERS EQUITY
Retained Earnings -$376.8M -$291.0M
YoY Change 29.47% 26.19%
Common Stock $592.4M $439.9M
YoY Change 34.68% 2.5%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $215.8M $148.8M
YoY Change
Total Liabilities & Shareholders Equity $237.0M $171.2M
YoY Change 38.43% -23.33%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income -$24.60M -$16.81M
YoY Change 46.4% 26.33%
Depreciation, Depletion And Amortization $360.0K $550.0K
YoY Change -34.55% 10.0%
Cash From Operating Activities -$16.33M -$12.48M
YoY Change 30.85% 2.72%
INVESTING ACTIVITIES
Capital Expenditures -$300.0K -$490.0K
YoY Change -38.78% -79.84%
Acquisitions
YoY Change
Other Investing Activities $29.34M -$53.08M
YoY Change -155.28%
Cash From Investing Activities $29.04M -$53.56M
YoY Change -154.22% 2104.12%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -710.0K 8.750M
YoY Change -108.11% -93.27%
NET CHANGE
Cash From Operating Activities -16.33M -12.48M
Cash From Investing Activities 29.04M -53.56M
Cash From Financing Activities -710.0K 8.750M
Net Change In Cash 12.00M -57.29M
YoY Change -120.95% -149.62%
FREE CASH FLOW
Cash From Operating Activities -$16.33M -$12.48M
Capital Expenditures -$300.0K -$490.0K
Free Cash Flow -$16.03M -$11.99M
YoY Change 33.69% 23.35%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Medicis Settlement</font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In July&#160;2009, the Company and Medicis Pharmaceutical Corporation, or Medicis, entered into a license agreement granting Medicis worldwide aesthetic and dermatological rights to the Company&#8217;s investigational, injectable botulinum toxin type A product candidate. In October 2012, the Company entered into a settlement and termination agreement with Medicis. The terms of the settlement provided for the reacquisition of the rights related to all territories of RT002 injectable and RT001 topical from Medicis and for consideration payable by the Company to Medicis of up to </font><font style="font-family:inherit;font-size:10pt;">$25.0 million</font><font style="font-family:inherit;font-size:10pt;">, comprised of (i)&#160;an upfront payment of </font><font style="font-family:inherit;font-size:10pt;">$7.0 million</font><font style="font-family:inherit;font-size:10pt;">, which was paid in 2012, (ii) a proceeds sharing arrangement payment of&#160;</font><font style="font-family:inherit;font-size:10pt;">$14.0 million</font><font style="font-family:inherit;font-size:10pt;"> due upon specified capital raising achievements by the Company, of which </font><font style="font-family:inherit;font-size:10pt;">$6.9 million</font><font style="font-family:inherit;font-size:10pt;"> was paid in 2013 and </font><font style="font-family:inherit;font-size:10pt;">$7.1 million</font><font style="font-family:inherit;font-size:10pt;"> in 2014, and (iii)&#160;</font><font style="font-family:inherit;font-size:10pt;">$4.0 million</font><font style="font-family:inherit;font-size:10pt;"> to be paid upon the achievement of regulatory approval for RT002 injectable or RT001 topical by the Company, or Product Approval Payment. Medicis was subsequently acquired by Valeant Pharmaceuticals International, Inc. in December 2012.</font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company determined that the settlement provisions related to the proceeds sharing arrangement payment in (ii) above and Product Approval Payment in (iii) above were derivative instruments that require fair value accounting as a liability and periodic fair value remeasurements until settled. </font></div><div style="line-height:120%;padding-top:16px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> The proceeds sharing arrangement payment derivative in (ii) above was settled upon completion of our IPO. As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;">, the Company determined the fair value of its liability for the Product Approval Payment was </font><font style="font-family:inherit;font-size:10pt;">$1.8 million</font><font style="font-family:inherit;font-size:10pt;">, which was measured by assuming a term of </font><font style="font-family:inherit;font-size:10pt;">3.75</font><font style="font-family:inherit;font-size:10pt;">&#160;years, a risk-free rate of </font><font style="font-family:inherit;font-size:10pt;">0.82%</font><font style="font-family:inherit;font-size:10pt;"> and a credit risk adjustment of </font><font style="font-family:inherit;font-size:10pt;">11.00%</font><font style="font-family:inherit;font-size:10pt;">. The Company&#8217;s assumption for the expected term is based on an expected Biologics License Application, or BLA, approval in 2020. The Company did not make any payments under the Product Approval Payment during </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2016</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of Condensed Consolidated Financial Statements in conformity with US&#160;GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such management estimates include accruals, stock-based compensation, the fair value of derivative liability associated with the Medicis settlement, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and also on assumptions that it believes are reasonable, however, actual results could significantly differ from those estimates.</font></div></div>

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