2020 Q1 Form 10-K Financial Statement

#000156459020010890 Filed on March 16, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2019 Q4 2019 Q3
Revenue $7.152M $11.31M $12.28M
YoY Change -17.12% -40.77% 56.67%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $8.710M $8.700M $8.120M
YoY Change 12.82% 14.93% 51.78%
% of Gross Profit
Research & Development $17.62M $17.39M $16.90M
YoY Change 16.07% 17.58% 33.66%
% of Gross Profit
Depreciation & Amortization $1.099M $1.220M $1.230M
YoY Change -3.34% 7.02% 10.81%
% of Gross Profit
Operating Expenses $17.62M $26.09M $25.01M
YoY Change -23.04% 16.68% 39.01%
Operating Profit -$12.74M
YoY Change 25.38%
Interest Expense -$420.0K -$10.00K -$180.0K
YoY Change -2200.0% -101.41% -143.37%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$19.60M -$14.79M -$12.91M
YoY Change 37.54% 892.62% 26.07%
Income Tax
% Of Pretax Income
Net Earnings -$19.60M -$14.79M -$12.91M
YoY Change 37.51% 890.56% 26.13%
Net Earnings / Revenue -273.98% -130.82% -105.17%
Basic Earnings Per Share -$0.84 -$0.56
Diluted Earnings Per Share -$0.84 -$640.5K -$0.56
COMMON SHARES
Basic Shares Outstanding 23.10M 22.95M
Diluted Shares Outstanding 22.95M

Balance Sheet

Concept 2020 Q1 2019 Q4 2019 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $115.4M $117.9M $125.2M
YoY Change -32.36% -42.35% 1.79%
Cash & Equivalents $43.57M $4.960M $11.95M
Short-Term Investments $71.80M $112.9M $113.2M
Other Short-Term Assets $3.000M $4.400M $2.900M
YoY Change 15.38% 46.67% 45.0%
Inventory
Prepaid Expenses
Receivables $9.100M $6.298M $7.531M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $127.5M $128.6M $135.6M
YoY Change -27.76% -38.76% 6.43%
LONG-TERM ASSETS
Property, Plant & Equipment $9.500M $9.633M $8.522M
YoY Change -4.04% -11.9% -26.99%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $14.20M $15.60M $25.20M
YoY Change 3.65%
Other Assets $2.700M $2.545M $2.351M
YoY Change 20.81% 13.41% -60.59%
Total Long-Term Assets $26.40M $27.80M $36.11M
YoY Change 1.7% 110.73% 104.55%
TOTAL ASSETS
Total Short-Term Assets $127.5M $128.6M $135.6M
Total Long-Term Assets $26.40M $27.80M $36.11M
Total Assets $153.9M $156.4M $171.7M
YoY Change -23.98% -29.92% 18.38%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.800M $5.584M $4.549M
YoY Change 70.84% 82.42% -0.98%
Accrued Expenses $2.900M $6.017M $4.628M
YoY Change 15.91% -3.22% 13.29%
Deferred Revenue $19.47M $20.25M
YoY Change -9.78%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $1.000M $5.800M
YoY Change -100.0% -78.72% 81.25%
Total Short-Term Liabilities $32.00M $32.97M $35.86M
YoY Change 2.79% -9.49% -2.83%
LONG-TERM LIABILITIES
Long-Term Debt $24.20M $8.876M $5.500M
YoY Change 184.71% -11.24% -52.17%
Other Long-Term Liabilities $15.60M $134.0K $129.0K
YoY Change -51.4% 31.37% -80.57%
Total Long-Term Liabilities $39.80M $9.010M $5.629M
YoY Change -1.97% -10.81% -53.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $32.00M $32.97M $35.86M
Total Long-Term Liabilities $39.80M $9.010M $5.629M
Total Liabilities $71.80M $58.58M $61.77M
YoY Change 0.14% -36.05% -37.74%
SHAREHOLDERS EQUITY
Retained Earnings -$215.3M -$195.7M -$181.0M
YoY Change 39.58% 30.21% 21.58%
Common Stock $297.4M $293.4M $290.6M
YoY Change 4.38% 4.06% 3812.75%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $82.09M $97.79M $109.9M
YoY Change
Total Liabilities & Shareholders Equity $153.9M $156.4M $171.7M
YoY Change -24.0% -29.92% 18.38%

Cashflow Statement

Concept 2020 Q1 2019 Q4 2019 Q3
OPERATING ACTIVITIES
Net Income -$19.60M -$14.79M -$12.91M
YoY Change 37.51% 890.56% 26.13%
Depreciation, Depletion And Amortization $1.099M $1.220M $1.230M
YoY Change -3.34% 7.02% 10.81%
Cash From Operating Activities -$18.73M -$13.15M -$16.12M
YoY Change -7.0% 121.38% -133.88%
INVESTING ACTIVITIES
Capital Expenditures $763.0K -$2.050M -$660.0K
YoY Change 176.45% 156.25% 83.33%
Acquisitions
YoY Change
Other Investing Activities $42.40M $9.990M $10.48M
YoY Change -154.5% 253.0% -112.87%
Cash From Investing Activities $41.64M $7.940M $9.820M
YoY Change -153.33% 291.13% -112.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 15.70M -1.780M -1.120M
YoY Change -3528.38% -102.03% -102.23%
NET CHANGE
Cash From Operating Activities -18.73M -13.15M -16.12M
Cash From Investing Activities 41.64M 7.940M 9.820M
Cash From Financing Activities 15.70M -1.780M -1.120M
Net Change In Cash 38.61M -6.990M -7.420M
YoY Change -139.12% -108.33% -146.58%
FREE CASH FLOW
Cash From Operating Activities -$18.73M -$13.15M -$16.12M
Capital Expenditures $763.0K -$2.050M -$660.0K
Free Cash Flow -$19.50M -$11.10M -$15.46M
YoY Change -4.52% 115.95% -132.25%

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CY2019 us-gaap Nature Of Operations
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<p style="margin-top:13pt;margin-bottom:0pt;text-indent:2.86%;font-weight:bold;font-family:Arial;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1.Organization and Principal Activities</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:2.86%;font-weight:bold;font-style:italic;font-family:Arial;font-size:10pt;text-transform:none;font-variant: normal;">Description of Business </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Sutro Biopharma, Inc. (the “Company”) is a clinical stage drug discovery, development and manufacturing company focused on leveraging its integrated cell-free protein synthesis and site-specific conjugation platform, XpressCF<sup style="font-size:85%;line-height:120%;vertical-align:top">®</sup>, to create a broad variety of optimally designed, next-generation protein therapeutics for cancer and autoimmune disorders. The Company was incorporated on April 21, 2003, and is headquartered in South San Francisco, California. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company operates in one business segment, the development of biopharmaceutical products. <span style="font-size:12pt;">    </span> <span style="font-size:12pt;">   </span></p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:2.86%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Arial;text-transform:none;font-variant: normal;">Liquidity </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company has incurred significant losses and has negative cash flows from operations. As of December 31, 2019, there was an accumulated deficit of $195.7 million. Management expects to continue to incur additional substantial losses in the foreseeable future as a result of the Company’s research and development activities. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">As of December 31, 2019, the Company had unrestricted cash, cash equivalents and marketable securities of $133.5 million, which is available to fund future operations. The Company will need to raise additional capital to support the completion of its research and development activities and its operations.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:2.86%;font-family:Arial;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">On February 28, 2020, the Company entered into a loan and security agreement (the “Loan and Security Agreement”) with Oxford Finance LLC (“Oxford”), as the collateral agent and a lender, and Silicon Valley Bank, as a lender (together with Oxford, the “Lenders”), pursuant to which the Lenders have agreed to lend the Company up to an aggregate of $25.0 million in a series of term loans (the “Term A Loan”). Upon entering into the Loan and Security Agreement, the Company borrowed $25.0 million from the Lenders, with approximately $9.6 million of such amount applied to the repayment of the outstanding principal, interest and final payment fees owed pursuant to a prior loan and security agreement dated August 4, 2017 with the Lenders. Under the terms of the Loan and Security Agreement, the Company may, at its sole discretion, borrow from the Lenders up to an additional $5.0 million upon the closing of a new collaboration agreement that includes an upfront payment of at least $50.0 million to the Company<span style="color:#000000;">, as determined by Oxford in its sole and absolute discretion</span>.  The proceeds from the Term Loans under the Loan and Security Agreement may be used to satisfy the Company’s future working capital needs and to fund its general business requirements.  Please see an expanded discussion on the Loan and Security Agreement in Note 15 Subsequent Events.</p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company believes that its unrestricted cash, cash equivalents and marketable securities as of December 31, 2019 will enable the Company to maintain its operation for a period of at least 12 months following the filing date of its financial statements. </p>
CY2019 dei Entity Incorporation Date Of Incorporation
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<p style="margin-bottom:0pt;margin-top:0pt;text-indent:2.86%;font-weight:bold;font-style:italic;font-size:10pt;font-family:Arial;text-transform:none;font-variant: normal;">Concentrations of Credit Risk </p> <p style="margin-bottom:0pt;margin-top:6pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Cash and cash equivalents and marketable securities consist of financial instruments that potentially subject the Company to a concentration of credit risk, to the extent of the amounts recorded on the balance sheets. The Company minimizes the amount of credit exposure by investing cash that is not required for immediate operating needs in money market funds, government obligations and/or commercial paper with short maturities. </p> <p style="margin-bottom:0pt;margin-top:12pt;text-indent:3.64%;font-size:10pt;font-family:Arial;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The Company regularly reviews the outstanding accounts receivable, including consideration of factors such as the age of the receivable balance. As of December 31, 2019 and 2018, there was no allowance for doubtful accounts deemed necessary. As of December 31, 2019 and 2018, the Company’s accounts receivable balances were entirely attributable to the Company’s collaboration agreements. </p>
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CY2019 us-gaap Operating Loss Carryforwards Limitations On Use
OperatingLossCarryforwardsLimitationsOnUse
Events which cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership change of more than 50%, as defined, over a three-year testing period.
CY2019Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
3800000
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2800000
CY2017Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2300000
CY2019 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
0
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2795000
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2305000
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1635000
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1005000
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
741000
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
670000
CY2019 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
17000
CY2018Q4 us-gaap Net Income Loss
NetIncomeLoss
-1493000
CY2019 us-gaap Net Income Loss
NetIncomeLoss
-55744000
CY2018 us-gaap Net Income Loss
NetIncomeLoss
-35317000
CY2017 us-gaap Net Income Loss
NetIncomeLoss
-19688000
CY2019 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
22958577
CY2018 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5758875
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
447946
CY2019 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-2.43
CY2018 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-6.13
CY2017 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-43.95
CY2019 stro Net Loss Per Share
NetLossPerShare
0
CY2018 stro Net Loss Per Share
NetLossPerShare
0
CY2017 stro Net Loss Per Share
NetLossPerShare
9889
CY2019 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4321697
CY2018 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
3524187
CY2017 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5995724
CY2019Q4 us-gaap Revenues
Revenues
11305000
CY2019Q3 us-gaap Revenues
Revenues
12277000
CY2019Q2 us-gaap Revenues
Revenues
10525000
CY2019Q1 us-gaap Revenues
Revenues
8629000
CY2019Q4 us-gaap Net Income Loss
NetIncomeLoss
-14789000
CY2019Q3 us-gaap Net Income Loss
NetIncomeLoss
-12912000
CY2019Q2 us-gaap Net Income Loss
NetIncomeLoss
-13793000
CY2019Q1 us-gaap Net Income Loss
NetIncomeLoss
-14250000
CY2019Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.65
CY2019Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.56
CY2019Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.60
CY2019Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.62
CY2018Q4 us-gaap Revenues
Revenues
19086000
CY2018Q3 us-gaap Revenues
Revenues
7836000
CY2018Q2 us-gaap Revenues
Revenues
5704000
CY2018Q1 us-gaap Revenues
Revenues
5793000
CY2018Q3 us-gaap Net Income Loss
NetIncomeLoss
-10237000
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
-11541000
CY2018Q1 us-gaap Net Income Loss
NetIncomeLoss
-12046000
CY2018Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.07
CY2018Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-21.26
CY2018Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-24.17
CY2018Q1 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-25.76

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