2017 Q2 Form 10-Q Financial Statement

#000117825317000015 Filed on August 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q4 2016 Q2
Revenue $64.00K $65.00K $64.00K
YoY Change 0.0% 1.56% 0.0%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.361M $1.910M $1.673M
YoY Change 41.12% -24.8% -48.92%
% of Gross Profit
Research & Development $4.448M $3.780M $6.659M
YoY Change -33.2% -36.15% 102.89%
% of Gross Profit
Depreciation & Amortization $40.00K $20.00K $10.00K
YoY Change 300.0% -91.94%
% of Gross Profit
Operating Expenses $6.809M $5.700M $8.332M
YoY Change -18.28% -32.54% 27.07%
Operating Profit -$6.745M -$5.631M -$8.268M
YoY Change -18.42% -32.86% 27.34%
Interest Expense $360.0K $2.180M $0.00
YoY Change -100.0%
% of Operating Profit
Other Income/Expense, Net $2.546M $0.00 $140.0K
YoY Change 1718.57% 13900.0%
Pretax Income -$4.200M -$3.450M -$8.130M
YoY Change -48.34% -58.88% 25.27%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$4.199M -$3.449M -$8.128M
YoY Change -48.34% -58.88% -14.42%
Net Earnings / Revenue -6560.94% -5306.15% -12700.0%
Basic Earnings Per Share -$0.56
Diluted Earnings Per Share -$1.628M -$1.426M -$5.568M
COMMON SHARES
Basic Shares Outstanding 25.80M shares 23.99M shares 23.42M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2016 Q4 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $49.30M $58.60M $50.30M
YoY Change -1.99% 24.68% -11.91%
Cash & Equivalents $7.450M $35.66M $37.87M
Short-Term Investments $41.90M $22.90M $12.50M
Other Short-Term Assets $24.00K $41.00K $60.00K
YoY Change -60.0% 7.89% -92.28%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $50.85M $59.33M $52.74M
YoY Change -3.57% 22.48% -18.42%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $652.0K $120.0K $426.0K
YoY Change 53.05% -71.36% 1190.91%
Total Long-Term Assets $981.0K $465.0K $786.0K
YoY Change 24.81% -44.38% 2281.82%
TOTAL ASSETS
Total Short-Term Assets $50.85M $59.33M $52.74M
Total Long-Term Assets $981.0K $465.0K $786.0K
Total Assets $51.84M $59.79M $53.52M
YoY Change -3.16% 21.35% -17.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.738M $2.192M $1.136M
YoY Change 52.99% 254.12% 138.16%
Accrued Expenses $1.329M $1.268M $2.910M
YoY Change -54.33% -59.73% 2.65%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.349M $0.00
YoY Change
Total Short-Term Liabilities $4.673M $3.717M $4.523M
YoY Change 3.32% -44.22% -35.85%
LONG-TERM LIABILITIES
Long-Term Debt $13.10M $14.25M $0.00
YoY Change
Other Long-Term Liabilities $2.400M $7.000M $5.100M
YoY Change -52.94% 900.0% 466.67%
Total Long-Term Liabilities $13.10M $14.25M $5.100M
YoY Change 156.92% 466.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.673M $3.717M $4.523M
Total Long-Term Liabilities $13.10M $14.25M $5.100M
Total Liabilities $20.18M $24.97M $9.649M
YoY Change 109.13% 240.97% 22.05%
SHAREHOLDERS EQUITY
Retained Earnings -$189.3M -$180.1M -$165.4M
YoY Change 14.39% 19.97% 24.03%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $31.66M $34.82M $43.88M
YoY Change
Total Liabilities & Shareholders Equity $51.84M $59.79M $53.52M
YoY Change -3.16% 21.35% -17.25%

Cashflow Statement

Concept 2017 Q2 2016 Q4 2016 Q2
OPERATING ACTIVITIES
Net Income -$4.199M -$3.449M -$8.128M
YoY Change -48.34% -58.88% -14.42%
Depreciation, Depletion And Amortization $40.00K $20.00K $10.00K
YoY Change 300.0% -91.94%
Cash From Operating Activities -$7.380M -$4.550M -$8.990M
YoY Change -17.91% -24.04% 8.71%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$10.00K $0.00
YoY Change -75.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities -$6.970M $5.620M -$12.47M
YoY Change -44.11% -1618.92%
Cash From Investing Activities -$6.970M $5.630M -$12.48M
YoY Change -44.15% -1473.17% 3366.67%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.880M 4.780M 21.31M
YoY Change -91.18% -1357.89% -44.01%
NET CHANGE
Cash From Operating Activities -7.380M -4.550M -8.990M
Cash From Investing Activities -6.970M 5.630M -12.48M
Cash From Financing Activities 1.880M 4.780M 21.31M
Net Change In Cash -12.47M 5.860M -160.0K
YoY Change 7693.75% -186.43% -100.54%
FREE CASH FLOW
Cash From Operating Activities -$7.380M -$4.550M -$8.990M
Capital Expenditures $0.00 -$10.00K $0.00
Free Cash Flow -$7.380M -$4.540M -$8.990M
YoY Change -17.91% -23.7% 13.65%

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us-gaap Proceeds From Interest Received
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us-gaap Proceeds From Interest Received
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CY2017Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Common Stock
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us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans
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5000 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlans
18000 USD
CY2013Q3 us-gaap Proceeds From License Fees Received
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1500000 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
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0 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
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25497000 USD
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0 USD
us-gaap Proceeds From Stock Options Exercised
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0 USD
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0 USD
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0 USD
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0 USD
CY2016Q2 us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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8467000 USD
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CY2016Q2 us-gaap Revenues
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64000 USD
us-gaap Revenues
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129000 USD
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129000 USD
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2361000 USD
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4420000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
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2000 USD
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0 USD
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CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Exercise Price
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2000 USD
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
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2802174 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
5.96
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0.00
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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3.07
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ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
1819444 shares
CY2017Q2 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
2200000 USD
CY2016 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y11M23D
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us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P5Y8M27D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P7Y1M24D
us-gaap Stock Granted During Period Value Sharebased Compensation Forfeited
StockGrantedDuringPeriodValueSharebasedCompensationForfeited
0 USD
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
18000 USD
us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
5056000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
34819000 USD
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:normal;text-decoration:none;">Concentration of Credit Risk</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Financial instruments, which potentially expose the Company to concentrations of credit risk, consist principally of cash on deposit and cash equivalents held with </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">one</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> bank which exceed FDIC insured limits and certain short-term investments. Ongoing credit evaluations of the customer&#8217;s financial condition are performed and independent credit ratings for the associated counterparties are reviewed by the Company and collateral is not required. The Company's money market fund investment (recognized as cash and cash equivalents) is with what the Company believes to be a high quality issuer. The Company has not experienced any losses in such account.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;font-weight:normal;text-decoration:none;">Revenue Recognition and Deferred Revenue</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company has entered into arrangements involving intellectual property rights, some of which include multiple elements, such as the sale or license of intellectual property and the provision of development services. Under these arrangements, the Company may be entitled to receive development milestone payments and royalties in the form of a designated percentage of product sales. </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company assesses these contractual arrangements, and presents costs incurred and payments received in accordance with ASC 808, </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;">Collaborative Arrangements </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">("Topic 808"), when the Company determines that the contractual arrangement includes a joint operating activity, has active participation by both parties, and both parties are subject to significant risks and rewards under the arrangement. When reimbursement payments are due to the Company under a collaborative arrangement within the scope of Topic 808, the Company determines the appropriate classification for each specific reimbursement payment in the statements of operations by considering (i) the nature of the arrangement, (ii) the nature of the Company&#8217;s business operations, and (iii) the contractual terms of the arrangement. The Company's August 2013 development, license, and supply agreement with R- Pharm, CJSC (&#8220;R-Pharm&#8221;), combined with the supplemental arrangement in November 2014, is a collaborative arrangement pursuant to Topic 808.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">When entering into any arrangement involving intellectual property rights, the Company also determines whether the arrangement includes multiple deliverables and is subject to accounting guidance in ASC subtopic 605-25, </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:italic;">Multiple-Element Arrangements</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">. If the Company determines that an arrangement includes multiple elements, it determines whether the arrangement should be divided into separate units of accounting and how the arrangement consideration should be measured and allocated among the separate units of accounting. An element qualifies as a separate unit of accounting when the delivered element has standalone value to the customer. The Company&#8217;s arrangements do not include a general right of return relative to delivered elements. Any delivered elements that do not qualify as separate units of accounting are combined with other undelivered elements within the arrangement as a single unit of accounting. If the arrangement constitutes a single combined unit of accounting, the Company determines the revenue recognition method for the combined unit of accounting and recognizes the revenue over the period from inception through the date the last deliverable within the single unit of accounting is delivered.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Non-refundable upfront license fees are recorded as deferred revenue and recognized into revenue on a straight-line basis over the estimated period of the Company&#8217;s substantive performance obligations. If the Company does not have substantive performance obligations, the Company recognizes non-refundable upfront fees into revenue through the date the deliverable is satisfied. Analyzing the arrangement to identify deliverables requires the use of judgment and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. In arrangements that include license rights and other non-contingent deliverables, such as participation in a steering committee, these deliverables do not have standalone value because the non-contingent deliverables are dependent on the license rights. That is, the non-contingent deliverables would not have value without the license rights, and only the Company can perform the related services. Upfront license rights and non-contingent deliverables, such as participation in a steering committee, do not have standalone value as they are not sold separately and they cannot be resold. In addition, when non-contingent deliverables are sold with upfront license rights, the license rights do not represent the culmination of a separate earnings process. As such, the Company accounts for the license and the non-contingent deliverables as a single combined unit of accounting. In such instances, the license revenue in the form of non-refundable upfront payments is deferred and recognized over the applicable relationship period, which historically has been the estimated period of the Company&#8217;s substantive performance obligations or the period the rights granted are in effect. The Company recognizes contingent event-based payments under license agreements when the payments are received. The Company has not received any royalty payments to date.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company will recognize a milestone payment when earned if it is substantive and the Company has </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">no</font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;"> ongoing performance obligations related to the milestone. A milestone payment is considered substantive if it: 1)&#160;is commensurate with either the Company&#8217;s performance to achieve the milestone or the enhanced value of the delivered item as a result of a specific outcome from the Company&#8217;s performance to achieve the milestone; 2)&#160;relates solely to past performance;&#160;and 3)&#160;is reasonable relative to all of the deliverables and payment terms, including other potential milestone consideration, within the arrangement.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">Amounts received prior to satisfying all revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;">The Company&#8217;s deferred revenue includes non-refundable upfront payments received under certain licensing and collaboration arrangements that contain substantive performance obligations that the Company is providing over respective defined service or estimated relationship periods. Such non-refundable upfront payments are recognized over these defined service or estimated relationship periods.</font></div></div>

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0001178253-17-000015.txt Edgar Link pending
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