2024 Q1 Form 10-K Financial Statement

#000095017024036158 Filed on March 26, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $7.089M $7.075M $27.93M
YoY Change 2.13% 5.88% 30.28%
% of Gross Profit
Research & Development $14.33M $16.78M $60.93M
YoY Change 3.56% 37.66% 28.43%
% of Gross Profit
Depreciation & Amortization $113.0K $109.0K $399.0K
YoY Change 85.25% 419.05% 600.0%
% of Gross Profit
Operating Expenses $21.42M $23.86M $88.87M
YoY Change 3.08% 26.41% 29.01%
Operating Profit -$21.42M -$88.87M
YoY Change 3.08% 29.01%
Interest Expense $1.477M $1.681M $6.241M
YoY Change 49.95% 294.6% 901.77%
% of Operating Profit
Other Income/Expense, Net $1.475M $2.000K -$13.00K
YoY Change 50.51% -122.22% -102.25%
Pretax Income -$19.94M -$22.17M -$82.64M
YoY Change 0.73% 20.15% 20.98%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$19.94M -$22.17M -$82.64M
YoY Change 0.73% 20.15% 20.98%
Net Earnings / Revenue
Basic Earnings Per Share -$0.50 -$2.13
Diluted Earnings Per Share -$0.50 -$0.57 -$2.14
COMMON SHARES
Basic Shares Outstanding 36.88M 35.88M 38.71M
Diluted Shares Outstanding 39.86M 38.71M

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $101.6M $117.9M $117.9M
YoY Change -38.2% -36.8% -36.8%
Cash & Equivalents $51.76M $51.99M $51.99M
Short-Term Investments $49.88M $65.95M $65.95M
Other Short-Term Assets $910.0K $3.967M $3.967M
YoY Change -33.04% 531.69% -64.58%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $106.5M $121.9M $121.9M
YoY Change -38.13% -38.37% -38.37%
LONG-TERM ASSETS
Property, Plant & Equipment $1.637M $17.94M $17.94M
YoY Change -14.47% 1415.29% 1186.09%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $126.0K $1.010M $1.010M
YoY Change -86.41% 279.7% -15.34%
Total Long-Term Assets $18.54M $18.95M $18.95M
YoY Change -7.99% 632.26% 632.26%
TOTAL ASSETS
Total Short-Term Assets $106.5M $121.9M $121.9M
Total Long-Term Assets $18.54M $18.95M $18.95M
Total Assets $125.1M $140.9M $140.9M
YoY Change -34.98% -29.71% -29.71%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.491M $1.946M $1.946M
YoY Change -31.16% 0.21% 0.21%
Accrued Expenses $7.112M $9.715M $9.715M
YoY Change 36.43% 3.94% 3.94%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $8.603M $11.66M $11.66M
YoY Change 16.4% 3.09% 3.09%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $12.69M $12.95M $12.95M
YoY Change -6.87%
Total Long-Term Liabilities $12.69M $12.95M $12.95M
YoY Change -6.87%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.603M $11.66M $11.66M
Total Long-Term Liabilities $12.69M $12.95M $12.95M
Total Liabilities $21.30M $24.61M $24.61M
YoY Change 1.31% 117.52% 117.52%
SHAREHOLDERS EQUITY
Retained Earnings -$242.7M -$222.8M
YoY Change 51.78% 59.03%
Common Stock $346.5M $339.0M
YoY Change 4.64% 2.98%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $103.8M $116.3M $116.3M
YoY Change
Total Liabilities & Shareholders Equity $125.1M $140.9M $140.9M
YoY Change -34.98% -29.71% -29.71%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$19.94M -$22.17M -$82.64M
YoY Change 0.73% 20.15% 20.98%
Depreciation, Depletion And Amortization $113.0K $109.0K $399.0K
YoY Change 85.25% 419.05% 600.0%
Cash From Operating Activities -$21.88M -$15.51M -$70.36M
YoY Change -1.37% -9.21% 8.0%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $14.00K $674.0K
YoY Change -100.0% -94.85% -26.82%
Acquisitions
YoY Change
Other Investing Activities $16.47M $10.67M -$64.46M
YoY Change -124.03%
Cash From Investing Activities $16.47M $10.65M -$65.14M
YoY Change -123.86% -4016.18% 6972.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $911.0K
YoY Change -98.2%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 5.184M 48.00K 888.0K
YoY Change 2453.69% -52.48% -99.45%
NET CHANGE
Cash From Operating Activities -21.88M -15.51M -70.36M
Cash From Investing Activities 16.47M 10.65M -65.14M
Cash From Financing Activities 5.184M 48.00K 888.0K
Net Change In Cash -231.0K -4.813M -134.6M
YoY Change -99.75% -72.11% -241.42%
FREE CASH FLOW
Cash From Operating Activities -$21.88M -$15.51M -$70.36M
Capital Expenditures $0.00 $14.00K $674.0K
Free Cash Flow -$21.88M -$15.53M -$71.04M
YoY Change -3.51% -10.55% 7.52%

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<p style="margin-left:4.533%;font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Use of Estimates</span><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"> </span></p><p style="text-indent:4.533%;font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, research and development expenses and related prepaid or accrued costs and stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p>
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<p style="margin-left:4.533%;font-size:10pt;margin-top:18pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;">Concentrations of Credit Risk and Off-Balance Sheet Risk</span><span style="color:#000000;white-space:pre-wrap;font-weight:bold;font-size:10pt;font-family:Times New Roman;font-style:italic;min-width:fit-content;"> </span></p><p style="text-indent:4.533%;font-size:10pt;margin-top:6pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash and cash equivalents with high quality, accredited financial institutions and, accordingly, such funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts or other hedging arrangements.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="text-indent:4.533%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company is dependent on third-party organizations to manufacture and process its therapeutic candidates for its development programs. In particular, the Company relies on a single third-party contract manufacturer, Fujifilm Diosynth Biotechnologies U.S.A., Inc. and Fujifilm Diosynth Biotechnologies Texas, LLC (collectively, “FUJIFILM”), to produce clinical supply and process its current product candidate, VGL101 ("iluzanebart"). The Company expects to continue to be dependent on a small number of manufacturers to supply it with its requirements for all products. The Company’s research and development programs, including any associated potential commercialization efforts, could be adversely affected by a significant interruption in the supply of the necessary materials.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p><p style="text-indent:4.533%;font-size:10pt;margin-top:12pt;font-family:Times New Roman;margin-bottom:0;text-align:justify;"><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;">The Company is dependent on a limited number of third parties that provide license rights used by the Company in the development and potential commercialization of its therapeutic candidates and programs. From inception through December 31, 2023, the Company’s research and development programs primarily relate to rights conveyed by Amgen, Inc. (“Amgen”) (see Note 12). The Company could experience delays in the development and potential commercialization of its therapeutic candidates and programs if the Amgen license arrangement or any other license agreement utilized in the Company’s research and development activities is terminated, if the Company fails to meet the obligations required under its arrangements, or if the Company is unable to successfully secure new strategic alliances or licensing agreements.</span><span style="color:#000000;white-space:pre-wrap;font-size:10pt;font-family:Times New Roman;min-width:fit-content;"> </span></p>
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