2018 Form 10-K Financial Statement

#000114420418053849 Filed on October 15, 2018

View on sec.gov

Income Statement

Concept 2018 2017 Q2 2017
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $8.780M $3.060M $7.900M
YoY Change 11.14% 161.54% 50.76%
% of Gross Profit
Research & Development $17.28M $3.090M $12.09M
YoY Change 42.87% 16.6% 28.01%
% of Gross Profit
Depreciation & Amortization $1.058M $280.0K $1.107M
YoY Change -4.38% 7.69% 48.78%
% of Gross Profit
Operating Expenses $28.73M $6.220M $20.32M
YoY Change 41.38% 60.72% 35.94%
Operating Profit -$28.73M -$20.32M
YoY Change 41.38% 35.94%
Interest Expense $689.2K $0.00 $1.595K
YoY Change 43109.28% -68.35%
% of Operating Profit
Other Income/Expense, Net -$1.128M $30.00K $46.92K
YoY Change -2503.38% 197.92%
Pretax Income -$29.86M -$6.190M -$20.28M
YoY Change 47.24% 59.95% 35.74%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$29.86M -$6.190M -$20.28M
YoY Change 47.27% 59.95% 35.76%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share -$26.90M -$6.585M -$24.43M
COMMON SHARES
Basic Shares Outstanding 47.68M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 2017 Q2 2017
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.650M $4.490M $4.490M
YoY Change -63.25% 10.59% 10.59%
Cash & Equivalents $1.650M $4.490M $4.490M
Short-Term Investments
Other Short-Term Assets $360.0K $442.0K $440.0K
YoY Change -18.18% 2.77% 2.33%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $2.010M $4.929M $4.930M
YoY Change -59.23% 9.72% 9.8%
LONG-TERM ASSETS
Property, Plant & Equipment $370.0K $5.325M $5.330M
YoY Change -93.06% -11.02% -10.87%
Goodwill
YoY Change
Intangibles $44.32K
YoY Change -14.13%
Long-Term Investments
YoY Change
Other Assets $90.00K $330.0K $330.0K
YoY Change -72.73% -13.16%
Total Long-Term Assets $490.0K $5.700M $5.700M
YoY Change -91.4% -11.09% -11.08%
TOTAL ASSETS
Total Short-Term Assets $2.010M $4.929M $4.930M
Total Long-Term Assets $490.0K $5.700M $5.700M
Total Assets $2.500M $10.63M $10.63M
YoY Change -76.48% -2.52% -2.48%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.710M $1.650M $1.650M
YoY Change 3.64% 10.0% 10.0%
Accrued Expenses $920.0K $0.00 $0.00
YoY Change -100.0% -100.0%
Deferred Revenue
YoY Change
Short-Term Debt $3.430M $10.00K $10.00K
YoY Change 34200.0% -83.33% -83.33%
Long-Term Debt Due $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $6.250M $1.771M $1.770M
YoY Change 253.11% 2.36% 2.31%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $220.0K $304.6K $330.0K
YoY Change -33.33% -23.86% -17.5%
Total Long-Term Liabilities $220.0K $329.6K $330.0K
YoY Change -33.33% -17.6% -17.5%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.250M $1.771M $1.770M
Total Long-Term Liabilities $220.0K $329.6K $330.0K
Total Liabilities $6.460M $2.101M $2.100M
YoY Change 207.62% -1.39% -1.41%
SHAREHOLDERS EQUITY
Retained Earnings -$64.32M
YoY Change 46.04%
Common Stock $49.23K
YoY Change 40.2%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$3.960M $8.528M $8.530M
YoY Change
Total Liabilities & Shareholders Equity $2.500M $10.63M $10.63M
YoY Change -76.48% -2.52% -2.48%

Cashflow Statement

Concept 2018 2017 Q2 2017
OPERATING ACTIVITIES
Net Income -$29.86M -$6.190M -$20.28M
YoY Change 47.27% 59.95% 35.76%
Depreciation, Depletion And Amortization $1.058M $280.0K $1.107M
YoY Change -4.38% 7.69% 48.78%
Cash From Operating Activities -$14.11M -$3.640M -$13.31M
YoY Change 6.02% 15.56% 26.9%
INVESTING ACTIVITIES
Capital Expenditures -$10.00K -$110.0K -$410.0K
YoY Change -97.56% -65.63% -80.38%
Acquisitions
YoY Change
Other Investing Activities $1.740M $20.00K $210.0K
YoY Change 728.57% -67.19%
Cash From Investing Activities $1.732M -$90.00K -$195.4K
YoY Change -986.3% -70.97% -86.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $9.541M 3.770M $13.93M
YoY Change -31.52% -34.89% 29.84%
NET CHANGE
Cash From Operating Activities -$14.11M -3.640M -$13.31M
Cash From Investing Activities $1.732M -90.00K -$195.4K
Cash From Financing Activities $9.541M 3.770M $13.93M
Net Change In Cash -$2.841M 40.00K $424.5K
YoY Change -769.14% -98.28% -135.08%
FREE CASH FLOW
Cash From Operating Activities -$14.11M -$3.640M -$13.31M
Capital Expenditures -$10.00K -$110.0K -$410.0K
Free Cash Flow -$14.10M -$3.530M -$12.90M
YoY Change 9.31% 24.73% 53.59%

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CY2018 rzlt Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Warrants Issued For Consulting Services
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CY2018 rzlt Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercise Price Warrants Issued For Consulting Services
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747953 USD
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390076 USD
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788788 USD
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1903649 USD
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27000 sqft
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28939 USD
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34381 USD
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750000 USD
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562500 USD
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CY2017 rzlt Warrant Value Recorded As Issuance Cost
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753079 USD
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0 USD
CY2017 us-gaap Noncash Or Part Noncash Acquisition Fixed Assets Acquired1
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770976 USD
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701438 USD
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73904 USD
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3267639 USD
CY2018 us-gaap Amortization Of Debt Discount Premium
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505465 USD
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0 USD
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0 USD
CY2017 us-gaap Payments For Proceeds From Deposit On Loan
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0 USD
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0 USD
CY2017 rzlt Warrant Modification Deemed Dividend
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-23684064 USD
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-3406932 USD
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59517 USD
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4570000 USD
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0 USD
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1691391 USD
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0 USD
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4570000 USD
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0 USD
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1550000 USD
CY2017 us-gaap Proceeds From Sale Of Property Plant And Equipment
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0 USD
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7000 USD
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7000 USD
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7000 USD
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7000 USD
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7000 USD
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P1Y
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0.95 pure
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1550000 USD
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663017 USD
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0.001
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1.51
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4.50
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CY2017 rzlt Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercise Price Warrants Issued To Private Placement
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1.54
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CY2018 rzlt Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Warrants Issued To Placement Agent
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsWarrantsIssuedToPlacementAgent
289000 shares
CY2018 rzlt Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercise Price Warrants Issued To Placement Agent
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0.54
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500000 USD
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700000 USD
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0 USD
CY2017 us-gaap Current Federal Tax Expense Benefit
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0 USD
CY2018 us-gaap Current State And Local Tax Expense Benefit
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0 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
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0 USD
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0 USD
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0 USD
CY2018 us-gaap Deferred Federal Income Tax Expense Benefit
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1410582 USD
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5542631 USD
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-1326566 USD
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618192 USD
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84016 USD
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6160823 USD
CY2018 us-gaap Income Tax Expense Benefit
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0 USD
CY2017 us-gaap Income Tax Expense Benefit
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0 USD
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15358843 USD
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333868 USD
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540221 USD
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4161916 USD
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5111766 USD
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529096 USD
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21041254 USD
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21539926 USD
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0 USD
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349346 USD
CY2018Q2 us-gaap Deferred Tax Liabilities Tax Deferred Income
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798221 USD
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863531 USD
CY2017Q2 us-gaap Deferred Income Tax Liabilities
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1212877 USD
CY2018Q2 us-gaap Deferred Tax Assets Valuation Allowance
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20243033 USD
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20327049 USD
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0 USD
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0 USD
CY2018Q1 us-gaap Stock Issued During Period Value Other
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5000000 USD
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7000000 shares
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7000000 USD
CY2018Q1 us-gaap Stock Issued During Period Value Issued For Services
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8500000 USD
CY2018 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
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-8078305 USD
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-6894226 USD
CY2018 us-gaap Income Tax Reconciliation State And Local Income Taxes
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-984553 USD
CY2017 us-gaap Income Tax Reconciliation State And Local Income Taxes
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-617139 USD
CY2018 us-gaap Income Tax Reconciliation Deductions Other
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0 USD
CY2017 us-gaap Income Tax Reconciliation Deductions Other
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205794 USD
CY2018 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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12406 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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18150 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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644780 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
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1538186 USD
CY2017 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
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6160823 USD
CY2018Q2 us-gaap Severance Costs1
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575000 USD
CY2018 rzlt Operating Loss Carry Forwards Expiration Year
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2031
CY2018Q2 us-gaap Operating Loss Carryforwards
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6281000 USD
CY2018Q2 us-gaap Proceeds From Convertible Debt
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15000000 USD
CY2018Q2 us-gaap Proceeds From Convertible Debt
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15000000 USD
CY2018Q2 us-gaap Deposit Liabilities Accrued Interest
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25000 USD
CY2018 us-gaap Gains Losses On Extinguishment Of Debt
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-602193 USD
CY2017 us-gaap Gains Losses On Extinguishment Of Debt
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0 USD
CY2018 us-gaap Gains Losses On Extinguishment Of Debt
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-602193 USD
CY2018 rzlt Conversionofconvertiblenotespayabletocommonstock
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0 USD
CY2017 rzlt Conversionofconvertiblenotespayabletocommonstock
Conversionofconvertiblenotespayabletocommonstock
50000 USD
CY2018 rzlt Conversion Of Interest Payable Into Common Stock
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0 USD
CY2017 rzlt Conversion Of Interest Payable Into Common Stock
ConversionOfInterestPayableIntoCommonStock
9517 USD
CY2018 rzlt Fair Value Of Warrant Modifications Recorded As Deemed Dividend
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0 USD
CY2017 rzlt Fair Value Of Warrant Modifications Recorded As Deemed Dividend
FairValueOfWarrantModificationsRecordedAsDeemedDividend
3406932 USD
CY2017 rzlt Warrant Expense For Consulting Services
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0 USD
CY2018 rzlt Warrant Value Recorded As Debt Discount
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2717574 USD
CY2017 rzlt Warrant Value Recorded As Debt Discount
WarrantValueRecordedAsDebtDiscount
0 USD
CY2018 rzlt Embedded Derivative Value Recorded As Debt Discount
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100000 USD
CY2017 rzlt Embedded Derivative Value Recorded As Debt Discount
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0 USD
CY2018 us-gaap Payments Of Debt Issuance Costs
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239270 USD
CY2018 rzlt Relative Fair Value Of Warrants
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1821000 USD
CY2018 rzlt Warrant Expense For Consulting Services
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550065 USD
CY2017 us-gaap Payments Of Debt Issuance Costs
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0 USD
CY2018 us-gaap Payments Of Stock Issuance Costs
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60000 USD
CY2017 us-gaap Payments Of Stock Issuance Costs
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683194 USD
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<div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px; text-align: justify;"><div style="font-weight:bold;display:inline;"><div style="font-style:italic;display:inline;">Accounting Estimates&#160;</div></div>- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the accompanying notes. Such estimates and assumptions impact, among others, the following: the useful lives of depreciable assets and measurement of any impairment, the fair value of share-based payments and warrants, fair value of derivative instruments, estimates of the probability&#160;and potential magnitude of contingent liabilities, debt extinguishment, the valuation allowance for deferred tax assets due to continuing and expected future operating losses and going concern. Actual results could differ from those estimates.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018 us-gaap Income Tax Examination Likelihood Of Unfavorable Settlement
IncomeTaxExaminationLikelihoodOfUnfavorableSettlement
An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained
CY2018Q1 us-gaap Debt Instrument Convertible Terms Of Conversion Feature
DebtInstrumentConvertibleTermsOfConversionFeature
The notes contained an optional conversion feature in which if the Company raises $20 million then, at the investor&#8217;s option, the notes would convert into the financing at a 20% discount of the financing terms.
CY2018Q2 rzlt Warrant Exercise Price Description
WarrantExercisePriceDescription
The exercise price was set at 120% of the average closing price of the 10 trading days preceding July 1, 2019, or $0.52.
CY2018Q2 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
626797 USD
CY2018Q2 us-gaap Notes Payable Fair Value Disclosure
NotesPayableFairValueDisclosure
683737 USD
CY2018Q2 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
545257 USD
CY2018Q2 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
602193 USD
CY2017Q4 rzlt Related Party Transactiondescription Of Per Share Price To Be Issued
RelatedPartyTransactiondescriptionOfPerSharePriceToBeIssued
As contemplated by the Lincoln Park Purchase Agreement, and so long as the closing price of the Company&#8217;s common stock exceeds $0.40 per share, then the Company may direct Lincoln Park, at its sole discretion to purchase up to 65,000 shares of its common stock on any business day, provided that five business day has passed since the most recent purchase. The price per share for such purchases will be equal to the lower of: (i) the lowest sale price on the applicable purchase date and (ii) the arithmetic average of the three (3) lowest closing sale prices for the Company&#8217;s common stock during the twelve (12) consecutive business days ending on the business day immediately preceding such purchase date
CY2018Q2 rzlt Stock Issued During Period Value Common Stock Issued Pursuant To License Agreement
StockIssuedDuringPeriodValueCommonStockIssuedPursuantToLicenseAgreement
4570000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Rights
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights
The options expire no later than ten years from the date of the grant. The options vest on a monthly basis over 48 months, except for 75,000 of the options which do not begin to vest until specific events have occurred and then begin to vest over 48 months and 60,000 of the options that all vest at the end of the consulting contract. Some options are subject to a one year cliff and all options have an exercise price based on the fair value of the common stock on the date of grant.
CY2018 rzlt Warrant Exercise Price Description
WarrantExercisePriceDescription
The exercise price of the warrants was to be set at 120% of a qualified financing event or 120% of the average closing price of the 10-day period prior to July 1, 2018.
CY2018Q2 us-gaap Deferred Tax Assets Other
DeferredTaxAssetsOther
467372 USD
CY2018Q2 us-gaap Deferred Income Tax Liabilities
DeferredIncomeTaxLiabilities
798221 USD
CY2018 rzlt Tax Cuts And Jobs Act
TaxCutsAndJobsAct
8489688 USD
CY2017 rzlt Tax Cuts And Jobs Act
TaxCutsAndJobsAct
0 USD
CY2018 us-gaap Increase Decrease In Income Taxes
IncreaseDecreaseInIncomeTaxes
8.9 USD
CY2018Q2 rzlt Deferred Tax Assets Non Current Assets
DeferredTaxAssetsNonCurrentAssets
514878 USD
CY2017Q2 rzlt Deferred Tax Assets Non Current Assets
DeferredTaxAssetsNonCurrentAssets
0 USD
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.275 pure
CY2018Q2 us-gaap Operating Leases Future Minimum Payments Due In Five Years
OperatingLeasesFutureMinimumPaymentsDueInFiveYears
357279 USD
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
55654934 shares
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
41296741 shares
CY2018 rzlt Compensation And Benefits For General And Administrative
CompensationAndBenefitsForGeneralAndAdministrative
6683490 USD
CY2017 rzlt Compensation And Benefits For General And Administrative
CompensationAndBenefitsForGeneralAndAdministrative
5569426 USD
CY2018 us-gaap Professional Fees
ProfessionalFees
762389 USD
CY2017 us-gaap Professional Fees
ProfessionalFees
1100480 USD
CY2018 rzlt Investor Relations
InvestorRelations
317052 USD
CY2017 rzlt Investor Relations
InvestorRelations
327556 USD
CY2018 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
1337319 USD
CY2017 us-gaap Other General And Administrative Expense
OtherGeneralAndAdministrativeExpense
1231852 USD
CY2018 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
11454658 USD
CY2017 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
8229314 USD
CY2018 dei Document Type
DocumentType
10-K
CY2018 dei Amendment Flag
AmendmentFlag
false
CY2018 dei Document Period End Date
DocumentPeriodEndDate
2018-06-30
CY2018 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2018
CY2018 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2018 dei Entity Registrant Name
EntityRegistrantName
Rezolute, Inc.
CY2018 dei Entity Central Index Key
EntityCentralIndexKey
0001509261
CY2018 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--06-30
CY2018 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2018 dei Entity Voluntary Filers
EntityVoluntaryFilers
Yes
CY2018 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2018 dei Entity Filer Category
EntityFilerCategory
Non-accelerated Filer
CY2017Q4 dei Entity Public Float
EntityPublicFloat
47194889 USD
CY2018 dei Trading Symbol
TradingSymbol
RZLT
CY2018Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
62166309 shares
CY2018 dei Entity Shell Company
EntityShellCompany
false
CY2018 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
CY2018 dei Entity Ex Transition Period
EntityExTransitionPeriod
false
CY2018 dei Entity Small Business
EntitySmallBusiness
true

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