| Delaware | | | 2836 | | | 38-3982704 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Yvan-Claude Pierre Daniel I. Goldberg Divakar Gupta Cooley LLP 1114 Avenue of the Americas New York, New York 10036 (212) 479-6000 | | | Stuart M. Cable Edwin O’Connor Goodwin Procter LLP Exchange Place 53 State Street Boston, Massachusetts 02109 (617) 570-1000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ (Do not check if a smaller reporting company) | | | Smaller reporting company ☐ | |
CALCULATION OF REGISTRATION FEE | | ||||||||||||
Title of each class of securities to be registered | | | Proposed maximum aggregate offering price(1)(2) | | | Amount of registration fee | | ||||||
Common stock, $0.01 par value per share | | | | $ | 115,000,000 | | | | | $ | 11,580.50 | | |
| | | PER SHARE | | | TOTAL | | ||||||
Public Offering Price | | | | $ | | | | | $ | | | ||
Underwriting Discounts and Commissions(1) | | | | $ | | | | | | $ | | | |
Proceeds to Oncobiologics, Inc. (Before Expenses) | | | | $ | | | | | | $ | | | |
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| | | | F-1 | | |
| | Year Ended September 30, | | Three Months Ended December 31, | | |||||||||||||||||||||||||||||||||
| | Year Ended September 30, | | | 2014 | | 2015 | | 2014 | | 2015 | | ||||||||||||||||||||||||||
| | 2014 | | 2015 | | | | | | | | | | | | | (Unaudited) | | ||||||||||||||||||||
Consolidated Statements of Operations Data: | | | | | ||||||||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||||||||||
Collaboration revenues | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | $ | 2,934,555 | | | | $ | 994,894 | | | ||||||
Operating expenses: | | | | | ||||||||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||||||||||
Research and development | | | | 14,124,631 | | | | | 38,876,040 | | | | | | 14,124,631 | | | | | 38,876,040 | | | | | 5,840,030 | | | | | 12,733,976 | | | ||||||
General and administrative | | | | 7,318,314 | | | | | 12,905,823 | | | | | | 7,318,314 | | | | | 12,905,823 | | | | | 1,237,839 | | | | | 4,674,155 | | | ||||||
| | | | 21,442,945 | | | | | 51,781,863 | | | | | | 21,442,945 | | | | | 51,781,863 | | | | | 7,077,869 | | | | | 17,408,131 | | | ||||||
Loss from operations | | | | (12,392,403) | | | | | (46,562,626) | | | | | | (12,392,403) | | | | | (46,562,626) | | | | | (4,143,314) | | | | | (16,413,237) | | | ||||||
Interest expense | | | | 901,052 | | | | | 2,297,339 | | | | | | 901,052 | | | | | 2,297,339 | | | | | 357,580 | | | | | 398,975 | | | ||||||
Loss before income taxes | | | | (13,293,455) | | | | | (48,859,965) | | | | | | (13,293,455) | | | | | (48,859,965) | | | | | (4,500,894) | | | | | (16,812,212) | | | ||||||
Income tax expense (benefit) | | | | 439,018 | | | | | (190,111) | | | | | | 439,018 | | | | | (190,111) | | | | | 406,363 | | | | | 52,000 | | | ||||||
Net loss | | | | (13,732,473) | | | | | (48,669,854) | | | | | | (13,732,473) | | | | | (48,669,854) | | | | | (4,907,257) | | | | | (16,864,212) | | | ||||||
Less: Net loss attributable to noncontrolling interests | | | | — | | | | | (1,276,571) | | | | | | — | | | | | (1,276,571) | | | | | — | | | | | — | | | ||||||
Net loss attributable to Oncobiologics, Inc. | | | | (13,732,473) | | | | | (47,393,283) | | | | | | (13,732,473) | | | | | (47,393,283) | | | | | (4,907,257) | | | | | (16,864,212) | | | ||||||
Accretion of redeemable preferred stock and noncontrolling interests | | | | (3,588,996) | | | | | (4,306,488) | | | | | | (3,588,996) | | | | | (4,306,488) | | | | | (1,071,164) | | | | | (939,539) | | | ||||||
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests | | | | (3,336,855) | | | | | (1,298,631) | | | | | | (3,336,855) | | | | | (1,298,631) | | | | | (1,230,998) | | | | | — | | | ||||||
Net loss attributable to common stockholders of Oncobiologics, Inc. | | | $ | (20,658,324) | | | | $ | (52,998,402) | | | | | $ | (20,658,324) | | | | $ | (52,998,402) | | | | $ | (7,209,419) | | | | $ | (17,803,751) | | | ||||||
Per share information:(1) | | | | | ||||||||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||||||||||
Net loss per share of common stock, basic and diluted | | | $ | (0.70) | | | | $ | (1.57) | | | | | $ | (0.70) | | | | $ | (1.57) | | | | $ | (0.22) | | | | $ | (0.40) | | | ||||||
Weighted-average shares outstanding, basic and diluted | | | | 29,358,331 | | | | | 33,650,012 | | | | | | 29,358,331 | | | | | 33,650,012 | | | | | 32,352,231 | | | | | 45,062,494 | | | ||||||
Pro forma net loss per share of common stock – basic and diluted (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | ||||||
Pro forma weighted-average shares outstanding (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | |
| | As of September 30, 2015 | | | As of December 31, 2015 | | ||||||||||||||||||||||||||
| | Actual | | Pro forma(1) | | Pro forma as adjusted(2)(3) | | | (Unaudited) | | ||||||||||||||||||||||
| | | | | | | (Unaudited) | | (Unaudited) | | | Actual | | Pro forma(1) | | Pro forma as adjusted(2)(3) | | |||||||||||||||
Consolidated Balance Sheet Data: | | | | | | | ||||||||||||||||||||||||||
Cash | | | $ | 9,070,975 | | | | $ | 29,952,480 | | | | | | | $ | 5,582,255 | | | | $ | 10,806,901 | | | | | ||||||
Working capital (deficit) | | | | (21,877,366) | | | | | (5,276,010) | | | | | | | | (25,087,988) | | | | | (22,562,819) | | | | | ||||||
Total assets | | | | 35,008,621 | | | | | 51,609,977 | | | | | | | | 31,322,869 | | | | | 33,797,518 | | | | | ||||||
Debt obligations, current and long-term | | | | 21,961,828 | | | | | 21,961,828 | | | | | | | | 15,488,800 | | | | | 15,488,800 | | | | | ||||||
Redeemable preferred stock, common stock and noncontrolling interests | | | | 27,321,311 | | | | | — | | | | | | | | 16,366,212 | | | | | — | | | | | ||||||
Total stockholders’ equity (deficit) | | | | (54,873,803) | | | | | 1,775,586 | | | | | | | | (30,914,816) | | | | | (12,023,435) | | | | |
| | As of September 30, 2015 | | | As of December 31, 2015 | | ||||||||||||||||||||||||||||||||
| | Actual | | Pro forma | | Pro forma as adjusted(1) | | | (Unaudited) | | ||||||||||||||||||||||||||||
| | | | | | | (Unaudited) | | (Unaudited) | | | Actual | | Pro forma | | Pro forma as adjusted(1) | | |||||||||||||||||||||
Cash | | | $ | 9,070,975 | | | | $ | 29,952,480 | | | | $ | | | | | $ | 5,582,255 | | | | $ | 10,806,901 | | | | $ | | | ||||||||
Debt obligations, current and long term | | | | 21,961,828 | | | | | 21,961,828 | | | | | | | | | | | 15,488,800 | | | | | 15,488,800 | | | | | | | | ||||||
Redeemable preferred stock, common stock and noncontrolling interests | | | | 27,321,311 | | | | | — | | | | | | | | | | | 16,366,212 | | | | | — | | | | | | | | ||||||
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Preferred stock, par value $0.01 per share: no shares authorized, no shares issued and outstanding actual; 50,000 shares authorized, no shares issued and outstanding pro forma; shares authorized, shares issued and outstanding pro forma as adjusted | | | | — | | | | | — | | | | | | | | ||||||||||||||||||||||
Common stock, no par value; 100,000,000 shares authorized; 32,555,266 shares issued and outstanding actual | | | | 39,844,900 | | | | | — | | | | | | | | ||||||||||||||||||||||
Common stock, par value $0.01 per share; 100,000,000 shares authorized, shares issued and outstanding pro forma; shares authorized, shares issued and outstanding pro forma as adjusted | | | | — | | | | | 96,494,289 | | | | | | | | ||||||||||||||||||||||
Series A preferred stock, par value $0.01 per share: 10,000,000 shares authorized, 11,819 shares issued and outstanding actual; no shares issued and outstanding pro forma and pro forma as adjusted | | | | 118 | | | | | — | | | | | | | | ||||||||||||||||||||||
Common stock, par value $0.01 per share; 100,000,000 shares authorized, 42,572,738 shares issued and outstanding actual and pro forma; 200,000,000 shares authorized, shares issued and outstanding pro forma as adjusted | | | | 425,727 | | | | | 488,857 | | | | | | | | ||||||||||||||||||||||
Additional paid-in capital | | | | — | | | | | — | | | | | | | | | | | 79,587,837 | | | | | 98,416,206 | | | | | | | | ||||||
Accumulated deficit | | | | (94,064,286) | | | | | (94,064,286) | | | | | | | | | | | (110,928,498) | | | | | (110,928,498) | | | | | | | | ||||||
Noncontrolling interests | | | | (654,417) | | | | | (654,417) | | | | | | | | ||||||||||||||||||||||
Total stockholders’ equity (deficit) | | | | (54,873,803) | | | | | 1,775,586 | | | | | | | | | | | (30,914,816) | | | | | (12,023,435) | | | | | | | | ||||||
Total capitalization | | | $ | (5,590,664) | | | | $ | 23,737,414 | | | | $ | | | | | | $ | 940,196 | | | | $ | 3,465,365 | | | | $ | | | | |
| Assumed initial public offering price per share | | | | | | | | | | $ | | | |||
| Historical net tangible book value (deficit) per share at | | | | $ | ( | | | | | | | | | ||
| Increase per share attributable to pro forma adjustments | | | | | | | | | | | | | | ||
| Pro forma net tangible book value (deficit) per share at | | | | | | | | | | | |||||
| Increase in pro forma net tangible book value (deficit) per share attributable to this offering | | | | | | | | | | | | | | ||
| Pro forma as adjusted net tangible book value per share after this offering | | | | | | | | | | | | | | ||
| Dilution in net tangible book value per share to new investors in this offering | | | | | | | | | | $ | | | | ||
|
| | | Shares Purchased | | | Total Consideration | | | Average Price Per Share | | ||||||||||||||||||
| | | Number | | | Percent | | | Amount | | | Percent | | |||||||||||||||
Existing Stockholders | | | | | | | | % | | | | | $ | | | | | | % | | | | | $ | | | ||
New Investors | | | | | | | | | | | | | | | | | | | | | | | ||||||
Total | | | | | | | | 100% | | | | | $ | | | | | | | 100% | | | | |||||
|
| | Year Ended September 30, | | Three Months Ended December 31, | | |||||||||||||||||||||||||||||||||
| | Year Ended September 30, | | | 2014 | | 2015 | | 2014 | | 2015 | | ||||||||||||||||||||||||||
| | 2014 | | 2015 | | | | | | | | | | | | | (Unaudited) | | ||||||||||||||||||||
Consolidated Statements of Operations Data: | | | | | ||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | ||||||||||||||||||||||||||
Collaboration revenues | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | $ | 2,934,555 | | | | $ | 994,894 | | | ||||||
Operating expenses: | | | | | ||||||||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||||||||||
Research and development | | | | 14,124,631 | | | | | 38,876,040 | | | | | | 14,124,631 | | | | | 38,876,040 | | | | | 5,840,030 | | | | | 12,733,976 | | | ||||||
General and administrative | | | | 7,318,314 | | | | | 12,905,823 | | | | | | 7,318,314 | | | | | 12,905,823 | | | | | 1,237,839 | | | | | 4,674,155 | | | ||||||
| | | | 21,442,945 | | | | | 51,781,863 | | | | | | 21,442,945 | | | | | 51,781,863 | | | | | 7,077,869 | | | | | 17,408,131 | | | ||||||
Loss from operations | | | | (12,392,403) | | | | | (46,562,626) | | | | | | (12,392,403) | | | | | (46,562,626) | | | | | (4,143,314) | | | | | (16,413,237) | | | ||||||
Interest expense | | | | 901,052 | | | | | 2,297,339 | | | | | | 901,052 | | | | | 2,297,339 | | | | | 357,580 | | | | | 398,975 | | | ||||||
Loss before income taxes | | | | (13,293,455) | | | | | (48,859,965) | | | | | | (13,293,455) | | | | | (48,859,965) | | | | | (4,500,894) | | | | | (16,812,212) | | | ||||||
Income tax expense (benefit) | | | | 439,018 | | | | | (190,111) | | | | | | 439,018 | | | | | (190,111) | | | | | 406,363 | | | | | 52,000 | | | ||||||
Net loss | | | | (13,732,473) | | | | | (48,669,854) | | | | | | (13,732,473) | | | | | (48,669,854) | | | | | (4,907,257) | | | | | (16,864,212) | | | ||||||
Less: Net loss attributable to noncontrolling interests | | | | — | | | | | (1,276,571) | | | | | | — | | | | | (1,276,571) | | | | | — | | | | | — | | | ||||||
Net loss attributable to Oncobiologics, Inc. | | | | (13,732,473) | | | | | (47,393,283) | | | | | | (13,732,473) | | | | | (47,393,283) | | | | | (4,907,257) | | | | | (16,864,212) | | | ||||||
Accretion of redeemable preferred stock and noncontrolling interests | | | | (3,588,996) | | | | | (4,306,488) | | | | | | (3,588,996) | | | | | (4,306,488) | | | | | (1,071,164) | | | | | (939,539) | | | ||||||
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests | | | | (3,336,855) | | | | | (1,298,631) | | | | | | (3,336,855) | | | | | (1,298,631) | | | | | (1,230,998) | | | | | — | | | ||||||
Net loss attributable to common stockholders of Oncobiologics, Inc. | | | $ | (20,658,324) | | | | $ | (52,998,402) | | | | | $ | (20,658,324) | | | | $ | (52,998,402) | | | | $ | (7,209,419) | | | | $ | (17,803,751) | | | ||||||
Per share information:(1) | | | | | ||||||||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||||||||||
Net loss per share of common stock, basic and diluted | | | $ | (0.70) | | | | $ | (1.57) | | | | | $ | (0.70) | | | | $ | (1.57) | | | | $ | (0.22) | | | | $ | (0.40) | | | ||||||
Weighted-average shares outstanding, basic and diluted | | | | 29,358,331 | | | | | 33,650,012 | | | | | | 29,358,331 | | | | | 33,650,012 | | | | | 32,352,231 | | | | | 45,062,494 | | | ||||||
Pro forma net loss per share of common stock – basic and diluted (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | ||||||
Pro forma weighted-average shares outstanding (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | |
| | As of September 30, | | | As of December 31, 2015 | | ||||||||||||||||||||||||||
| | As of September 30, | | | 2014 | | 2015 | | ||||||||||||||||||||||||
| | 2014 | | 2015 | | | | | | | | | | | | | (Unaudited) | | ||||||||||||||
Consolidated Balance Sheet Data: | | | | | ||||||||||||||||||||||||||||
Cash | | | $ | 2,349,313 | | | | $ | 9,070,975 | | | | | $ | 2,349,313 | | | | $ | 9,070,975 | | | | $ | 5,582,255 | | | |||||
Working capital (deficit) | | | | (17,063,539) | | | | | (21,877,366) | | | | | | (17,063,539) | | | | | (21,877,366) | | | | | (25,087,988) | | | |||||
Total assets | | | | 11,603,707 | | | | | 35,008,621 | | | | | | 11,603,707 | | | | | 35,008,621 | | | | | 31,322,869 | | | |||||
Debt obligations, current and long-term | | | | 15,168,532 | | | | | 21,961,828 | | | | | | 15,168,532 | | | | | 21,961,828 | | | | | 15,488,800 | | | |||||
Redeemable preferred stock, common stock and noncontrolling interests | | | | 24,704,011 | | | | | 27,321,311 | | | | | | 24,704,011 | | | | | 27,321,311 | | | | | 16,366,212 | | | |||||
Total stockholders’ equity (deficit) | | | | (45,151,218) | | | | | (54,873,803) | | | | | | (45,151,218) | | | | | (54,873,803) | | | | | (30,914,816) | | |
| | Year ended September 30, | | | Year ended September 30, | | Three months ended December 31, | | ||||||||||||||||||||||||||||||
| | 2014 | | 2015 | | | 2014 | | 2015 | | 2014 | | 2015 | | ||||||||||||||||||||||||
IPCA Collaboration | | | $ | 1,439,472 | | | | $ | 1,702,377 | | | | | $ | 1,439,472 | | | | $ | 1,702,377 | | | | $ | 586,078 | | | | $ | 105,433 | | | ||||||
Liomont Collaboration | | | | 34,091 | | | | | 341,280 | | | | | | 34,091 | | | | | 341,280 | | | | | 54,582 | | | | | 595,566 | | | ||||||
Huahai Collaboration | | | | 7,576,979 | | | | | 3,175,580 | | | | | | 7,576,979 | | | | | 3,175,580 | | | | | 2,293,895 | | | | | 293,895 | | | ||||||
| | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | $ | 2,934,555 | | | | $ | 994,894 | | | |
| | Year ended September 30, | | | Year ended September 30, | | Three months ended December 31, | | ||||||||||||||||||||||||||||||
| | 2014 | | 2015 | | | 2014 | | 2015 | | 2014 | | 2015 | | ||||||||||||||||||||||||
Milestone payments | | | $ | 7,000,000 | | | | $ | 2,500,000 | | | | | $ | 7,000,000 | | | | $ | 2,500,000 | | | | $ | 2,500,000 | | | | $ | 500,000 | | | ||||||
Recognition of deferred revenues | | | | 1,300,542 | | | | | 1,919,237 | | | | | | 1,300,542 | | | | | 1,919,237 | | | | | 434,555 | | | | | 494,894 | | | ||||||
Research and development payments | | | | 750,000 | | | | | 800,000 | | | | | | 750,000 | | | | | 800,000 | | | | | — | | | | | — | | | ||||||
| | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | | $ | 9,050,542 | | | | $ | 5,219,237 | | | | $ | 2,934,555 | | | | $ | 994,894 | | | |
| | | Year Ended September 30, | | | |||||||||||||||||
| | | 2014 | | | 2015 | | | Change | | ||||||||||||
Collaboration revenues | | | | $ | 9,050,542 | | | | | $ | 5,219,237 | | | | | $ | (3,831,305) | | | |||
Operating expenses: | | | | | ||||||||||||||||||
Research and development | | | | | 14,124,631 | | | | | | 38,876,040 | | | | | | 24,751,409 | | | |||
General and administrative | | | | | 7,318,314 | | | | | | 12,905,823 | | | | | | 5,587,509 | | | |||
| | | | | 21,442,945 | | | | | | 51,781,863 | | | | | | 30,338,918 | | | |||
Loss from operations | | | | | (12,392,403) | | | | | | (46,562,626) | | | | | | (34,170,223) | | | |||
Interest expense | | | | | 901,052 | | | | | | 2,297,339 | | | | | | 1,396,287 | | | |||
Loss before income taxes | | | | | (13,293,455) | | | | | | (48,859,965) | | | | | | (35,566,510) | | | |||
Income tax expense (benefit) | | | | | 439,018 | | | | | | (190,111) | | | | | | (629,129) | | | |||
Net loss | | | | $ | (13,732,473) | | | | | $ | (48,669,854) | | | | | $ | (34,937,381) | | | |||
|
| | | Year ended September 30, | | | Period from January 5, 2010 (inception) through September 30, 2015 | | |||||||||||||||
| | | 2014 | | | 2015 | | |||||||||||||||
Preclinical and clinical development | | | | $ | 6,715,346 | | | | | $ | 21,714,405 | | | | | $ | 33,167,123 | | | |||
Compensation and related benefits | | | | | 6,424,884 | | | | | | 10,202,065 | | | | | | 23,477,173 | | | |||
Stock-based compensation | | | | | 671,745 | | | | | | 5,817,830 | | | | | | 6,625,385 | | | |||
Regulatory filings and other | | | | | 312,656 | ��� | | | | | 1,141,740 | | | | | | 2,209,872 | | | |||
Total research and development expenses | | | | $ | 14,124,631 | | | | | $ | 38,876,040 | | | | | $ | 65,479,553 | | | |||
|
| | | Year ended September 30, | | | Period from January 5, 2010 (inception) through September 30, 2015 | | |||||||||||||||
| | | 2014 | | | 2015 | | |||||||||||||||
ONS-3010 | | | | $ | 4,641,138 | | | | | $ | 6,942,002 | | | | | $ | 15,197,201 | | | |||
ONS-1045 | | | | | 1,819,446 | | | | | | 12,763,886 | | | | | | 14,911,274 | | | |||
Other research and development | | | | | 567,418 | | | | | | 3,150,257 | | | | | | 5,268,520 | | | |||
Personnel related and stock-based compensation | | | | | 7,096,629 | | | | | | 16,019,895 | | | | | | 30,102,558 | | | |||
Total research and development expenses | | | | $ | 14,124,631 | | | | | $ | 38,876,040 | | | | | $ | 65,479,553 | | | |||
|
| | | Three Months Ended December 31, | | | | | | | | ||||||||||||
| | | 2014 | | | 2015 | | | Change | | ||||||||||||
| | | (Unaudited) | | | | | | | | ||||||||||||
Collaboration revenues | | | | $ | 2,934,555 | | | | | $ | 994,894 | | | | | $ | (1,939,661) | | | |||
Operating expenses: | | | | | ||||||||||||||||||
Research and development | | | | | 5,840,030 | | | | | | 12,733,976 | | | | | | 6,893,946 | | | |||
General and administrative | | | | | 1,237,839 | | | | | | 4,674,155 | | | | | | 3,436,316 | | | |||
| | | | | 7,077,869 | | | | | | 17,408,131 | | | | | | 10,330,262 | | | |||
Loss from operations | | | | | (4,143,314) | | | | | | (16,413,237) | | | | | | (12,269,923) | | | |||
Interest expense | | | | | 357,580 | | | | | | 398,975 | | | | | | 41,395 | | | |||
Loss before income taxes | | | | | (4,500,894) | | | | | | (16,812,212) | | | | | | (12,311,318) | | | |||
Income tax expense | | | | | 406,363 | | | | | | 52,000 | | | | | | (354,363) | | | |||
Net loss | | | | $ | (4,907,257) | | | | | $ | (16,864,212) | | | | | $ | (11,956,955) | | | |||
|
| | Three months ended December 31, | | | Period from January 5, 2010 (inception) through December 31, 2015 | | ||||||||||||||||
| | 2014 | | | 2015 | | ||||||||||||||||
| | | (Unaudited) | | | | | | | | ||||||||||||
Preclinical and clinical development | | | | $ | 3,524,528 | | | | | $ | 7,007,033 | | | | | $ | 40,174,156 | | | |||
Compensation and related benefits | | | | | 2,193,204 | | | | | | 3,815,357 | | | | | | 27,366,937 | | | |||
Stock-based compensation | | | | | 84,275 | | | | | | 1,356,408 | | | | | | 7,907,386 | | | |||
Regulatory filings and other | | | | | 38,023 | | | | | | 555,178 | | | | | | 2,765,050 | | | |||
Total research and development expenses | | | | $ | 5,840,030 | | | | | $ | 12,733,976 | | | | | $ | 78,213,529 | | | |||
|
| | Three months ended December 31, | | | Period from January 5, 2010 (inception) through December 31, 2015 | | ||||||||||||||||
| | 2014 | | | 2015 | | ||||||||||||||||
| | | (Unaudited) | | | | | | | | ||||||||||||
ONS-3010 | | | | $ | 1,547,912 | | | | | $ | 4,208,306 | | | | | $ | 19,405,507 | | | |||
ONS-1045 | | | | | 1,718,730 | | | | | | 2,740,735 | | | | | | 17,652,009 | | | |||
Other research and development | | | | | 295,909 | | | | | | 613,169 | | | | | | 5,881,689 | | | |||
Personnel related and stock-based compensation | | | | | 2,277,479 | | | | | | 5,171,766 | | | | | | 35,274,324 | | | |||
Total research and development expenses | | | | $ | 5,840,030 | | | | | $ | 12,733,976 | | | | | $ | 78,213,529 | | | |||
|
| | | Year Ended September 30, | | | |||||||||||||||||
| | | 2014 | | | 2015 | | | Change | | ||||||||||||
Collaboration revenues | | | | $ | 9,050,542 | | | | | $ | 5,219,237 | | | | | $ | (3,831,305) | | | |||
Operating expenses: | | | | | ||||||||||||||||||
Research and development | | | | | 14,124,631 | | | | | | 38,876,040 | | | | | | 24,751,409 | | | |||
General and administrative | | | | | 7,318,314 | | | | | | 12,905,823 | | | | | | 5,587,509 | | | |||
| | | | | 21,442,945 | | | | | | 51,781,863 | | | | | | 30,338,918 | | | |||
Loss from operations | | | | | (12,392,403) | | | | | | (46,562,626) | | | | | | (34,170,223) | | | |||
Interest expense | | | | | 901,052 | | | | | | 2,297,339 | | | | | | 1,396,287 | | | |||
Loss before income taxes | | | | | (13,293,455) | | | | | | (48,859,965) | | | | | | (35,566,510) | | | |||
Income tax expense (benefit) | | | | | 439,018 | | | | | | (190,111) | | | | | | (629,129) | | | |||
Net loss | | | | $ | (13,732,473) | | | | | $ | (48,669,854) | | | | | $ | (34,937,381) | | | |||
|
| | | Year ended September 30, | | | Period from January 5, 2010 (inception) through September 30, 2015 | | |||||||||||||||
| | | 2014 | | | 2015 | | |||||||||||||||
Preclinical and clinical development | | | | $ | 6,715,346 | | | | | $ | 21,714,405 | | | | | $ | 33,167,123 | | | |||
Compensation and related benefits | | | | | 6,424,884 | | | | | | 10,202,065 | | | | | | 23,477,173 | | | |||
Stock-based compensation | | | | | 671,745 | | | | | | 5,817,830 | | | | | | 6,625,385 | | | |||
Regulatory filings and other | | | | | 312,656 | | | | | | 1,141,740 | | | | | | 2,209,872 | | | |||
Total research and development expenses | | | | $ | 14,124,631 | | | | | $ | 38,876,040 | | | | | $ | 65,479,553 | | | |||
|
| | | Year ended September 30, | | | Period from January 5, 2010 (inception) through September 30, 2015 | | |||||||||||||||
| | | 2014 | | | 2015 | | |||||||||||||||
ONS-3010 | | | | $ | 4,641,138 | | | | | $ | 6,942,002 | | | | | $ | 15,197,201 | | | |||
ONS-1045 | | | | | 1,819,446 | | | | | | 12,763,886 | | | | | | 14,911,274 | | | |||
Other research and development | | | | | 567,418 | | | | | | 3,150,257 | | | | | | 5,268,520 | | | |||
Personnel related and stock-based compensation | | | | | 7,096,629 | | | | | | 16,019,895 | | | | | | 30,102,558 | | | |||
Total research and development expenses | | | | $ | 14,124,631 | | | | | $ | 38,876,040 | | | | | $ | 65,479,553 | | | |||
|
| | Year Ended September 30, | | Three months ended December 31, | | |||||||||||||||||||||||||||||||||
| | Year Ended September 30, | | | 2014 | | 2015 | | 2014 | | 2015 | | ||||||||||||||||||||||||||
| | 2014 | | 2015 | | | | | | | | | | | | | (Unaudited) | | ||||||||||||||||||||
Net cash used in operating activities | | | $ | (7,020,469) | | | | $ | (27,476,200) | | | | | $ | (7,020,469) | | | | $ | (27,476,200) | | | | $ | (3,666,423) | | | | $ | (12,012,281) | | | ||||||
Net cash used in investing activities | | | | (2,366,772) | | | | | (8,804,244) | | | | | | (2,366,772) | | | | | (8,804,244) | | | | | (527,877) | | | | | (364,242) | | | ||||||
Net cash provided by financing activities | | | | 11,474,146 | | | | | 43,002,106 | | | | | | 11,474,146 | | | | | 43,002,106 | | | | | 3,670,527 | | | | | 8,887,803 | | | ||||||
Net increase in cash | | | $ | 2,086,905 | | | | $ | 6,721,662 | | | |||||||||||||||||||||||||||
Net increase (decrease) in cash | | | $ | 2,086,905 | | | | $ | 6,721,662 | | | | $ | (523,773) | | | | $ | (3,488,720) | | | |
| | Payments Due by Period | | | Payments Due by Period | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Total | | Less Than 1 Year | | 1 − 3 Years | | 3 – 5 Years | | More Than 5 Years | | | Total | | Less Than 1 Year | | 1 − 3 Years | | 3 – 5 Years | | More Than 5 Years | | ||||||||||||||||||||||||||||||||||||||||
Operating lease commitments | | | $ | 5,027,353 | | | | $ | 888,710 | | | | $ | 1,731,526 | | | | $ | 1,763,368 | | | | $ | 643,749 | | | | | $ | 5,027,353 | | | | $ | 888,710 | | | | $ | 1,731,526 | | | | $ | 1,763,368 | | | | $ | 643,749 | | | ||||||||||
Debt obligations(2) | | | | 19,953,059 | | | | | 14,956,852 | | | | | 3,355,272 | | | | | 1,032,926 | | | | | 608,008 | | | | | | 19,953,048 | | | | | 14,956,842 | | | | | 3,355,273 | | | | | 1,032,926 | | | | | 608,007 | | | ||||||||||
Capital leases(3) | | | | 2,082,222 | | | | | 862,849 | | | | | 1,219,373 | | | | | — | | | | | — | | | | | | 2,082,222 | | | | | 862,849 | | | | | 1,219,373 | | | | | — | | | | | — | | | ||||||||||
Total(4) | | | $ | 27,062,634 | | | | $ | 16,708,411 | | | | $ | 6,306,171 | | | | $ | 2,796,294 | | | | $ | 1,251,757 | | | | | $ | 27,062,623 | | | | $ | 16,708,401 | | | | $ | 6,306,172 | | | | $ | 2,796,294 | | | | $ | 1,251,756 | | | |
| | | Year ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Research and development | | | | $ | 671,745 | | | | | $ | 5,817,830 | | | ||
General and administrative | | | | | 3,286,735 | | | | | | 5,360,028 | | | ||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | ||
|
| | | Year ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Equity-classified compensation | | | | $ | 2,764,878 | | | | | $ | 8,925 | | | ||
Liability-classified compensation | | | | | 1,193,602 | | | | | | 11,168,933 | | | ||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | ||
|
| | | Year ended September 30, | | | Three months ended December 31, | | ||||||||||||||||||||||
| | | 2014 | | | 2015 | | | 2014 | | | 2015 | | ||||||||||||||||
Research and development | | | | $ | 671,745 | | | | | $ | 5,817,830 | | | | | $ | 84,275 | | | | | $ | 1,356,408 | | | ||||
General and administrative | | | | | 3,286,735 | | | | | | 5,360,028 | | | | | | 61,399 | | | | | | 1,133,626 | | | ||||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | | | $ | 145,674 | | | | | $ | 2,490,034 | | | ||||
|
| | | Year ended September 30, | | | Three months ended December 31, | | ||||||||||||||||||||||
| | | 2014 | | | 2015 | | | 2014 | | | 2015 | | ||||||||||||||||
Equity-classified compensation | | | | $ | 2,764,878 | | | | | $ | 8,925 | | | | | $ | 2,231 | | | | | $ | 98,172 | | | ||||
Liability-classified compensation | | | | | 1,193,602 | | | | | | 11,168,933 | | | | | | 143,443 | | | | | | 2,391,862 | | | ||||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | | | $ | 145,674 | | | | | $ | 2,490,034 | | | ||||
|
| | | |
Adverse Event | | | ONS-3010 N (%) | | | EU-Humira N (%) | | | U.S.-Humira N (%) | | |||||||||
Burning sensation | | | | | 12 (18.2) | | | | | | 29 (43.9) | | | | | | 31 (47.0) | | |
Headache | | | | | 29 (43.9) | | | | | | 20 (30.3) | | | | | | 27 (39.4) | | |
Nasopharyngitis | | | | | 12 (18.2) | | | | | | 19 (28.8) | | | | | | 12 (18.2) | | |
Name | | | Age | | | Position(s) | | |||
Executive Officers | | | | | | | | | | |
Pankaj Mohan, Ph.D. | | | | | 51 | | | | Chairman, President and Chief Executive Officer | |
Kenneth M. Bahrt, M.D. | | | | | 62 | | | | Chief Medical Officer | |
Kogan Bao, Ph.D. | | | | | 46 | | | | Vice President, Analytical Sciences | |
Scott A. Gangloff | | | | | 42 | | | | Senior Vice President, Development & Manufacturing | |
Lawrence A. Kenyon | | | | | 50 | | | | Chief Financial Officer and Secretary | |
Stephen J. McAndrew, Ph.D. | | | | | 61 | | | | Senior Vice President, Business Strategy & Development | |
Elizabeth A. Yamashita | | | | | 55 | | | | Vice President, Regulatory Affairs | |
Non-Employee Directors | | | | | | | | | | |
Todd C. Brady, M.D., Ph.D.(1)(3) | | | | | 44 | | | | Director | |
Scott Canute(2) | | | | | 55 | | | | Director | |
Albert D. Dyrness(2)(3) | | | | | 53 | | | | Director | |
Donald J. Griffith | | | | | 67 | | | | Director | |
Kurt J. Hilzinger(1)(2) | | | | | 55 | | | | Director | |
Robin Smith Hoke(1)(3) | | | | | 53 | | | | Director | |
Name | | | Fees Earned or Paid in Cash(1) ($) | | | Total ($) | | ||||||
Todd C. Brady, M.D., Ph.D. | | | | | 100,000 | | | | | | 100,000 | | |
Scott Canute | | | | | 100,000 | | | | | | 100,000 | | |
Board Committee | | Chairperson Fee | | Member Fee | | | Chairperson Fee | | Member Fee | | ||||||||||||||||
Audit Committee | | | $ | 15,000 | | | | $ | 7,500 | | | | | $ | 15,000 | | | | $ | 7,500 | | | ||||
Compensation Committee | | | | 10,000 | | | | | 5,000 | | | | | | 10,000 | | | | | 5,000 | | | ||||
Nominating, Disclosure and Corporate Governance Committee | | | | 8,000 | | | | | 4,000 | | | |||||||||||||||
Nominating and Corporate Governance Committee | | | | 8,000 | | | | | 4,000 | | |
Name and Principal Position | | Year | | Salary ($) | | Bonus ($)(1) | | Equity Plan Awards ($)(2) | | All Other Compensation ($)(3) | | Total ($) | | | Year | | Salary ($) | | Bonus ($)(1) | | Equity Plan Awards ($)(2) | | All Other Compensation ($)(3) | | Total ($) | | ||||||||||||||||||||||||||||||||||||||||||
Pankaj Mohan, Ph.D. President and Chief Executive Officer | | | | 2015 | | | | | 290,004 | | | | | | | — | | | | | 29,839 | | | | | 319,843 | | | ||||||||||||||||||||||||||||||||||||||||
Pankaj Mohan, Ph.D. Chairman, President and Chief Executive Officer | | | | 2015 | | | | | 290,004 | | | | | | | — | | | | | 29,839 | | | | | 319,843 | | | ||||||||||||||||||||||||||||||||||||||||
Kenneth M. Bahrt, M.D.(4) Chief Medical Officer | | | | 2015 | | | | | 65,542 | | | | | | | 644,000 | | | | | 6,881 | | | | | 716,423 | | | | | | 2015 | | | | | 65,542 | | | | | | | 644,000 | | | | | 6,881 | | | | | 716,423 | | | ||||||||||||
Elizabeth A. Yamashita Vice President, Regulatory Affairs | | | | 2015 | | | | | 235,746 | | | | | | | — | | | | | 15,809 | | | | | 251,555 | | | | | | 2015 | | | | | 235,746 | | | | | | | — | | | | | 15,809 | | | | | 251,555 | | |
| | | | | | | | | Equity Awards(1) | | |||||||||||||||||||||
| | | Grant Date | | | Number of Securities Underlying Unexercised PSUs Exercisable (#) | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned PSUs (#) | | | Exercise Price ($) | | | Expiration Date | | |||||||||||||||
Pankaj Mohan, Ph.D. | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Kenneth M. Bahrt, M.D. | | | | | 6/22/2015 | | | | | | 100,000(2) | | | | | | — | | | | | | 1.00 | | | | | | 6/22/2025 | | |
Elizabeth A. Yamashita | | | | | 6/30/2015 | | | | | | 168,000(3) | | | | | | — | | | | | | 1.00 | | | | | | 6/30/2024 | | |
Related Party | | | # of Shares of Series A Redeemable Preferred Stock Converted | | | # of Shares of Common Stock Received Upon Conversion | | | # of Shares of DE Series A Preferred Stock Received Upon Conversion | |
Mr. Canute | | | 250 shares | | | 250,000 shares | | | 351 shares | |
Dr. Brady | | | 100 shares | | | 100,000 shares | | | 141 shares | |
Dr. Mohan’s immediate family | | | 150 shares | | | 150,000 shares | | | 212 shares | |
Mr. Gangloff’s immediate family | | | 55 shares | | | 55,000 shares | | | 79 shares | |
Mr. Griffith’s immediate family | | | 35 shares | | | 35,000 shares | | | 50 shares | |
Related Party | | | # of Series A Redeemable Preferred Stock Repurchased | | | Cash Received | | | Principal Amount of 4% Promissory Notes Received | | |||||||||
Dr. Mohan | | | | | 175 | | | | | $ | — | | | | | $ | 423,003 | | |
Mr. Canute | | | | | 900 | | | | | $ | 500,000 | | | | | $ | 1,511,384 | | |
Mr. Griffith and his immediate family | | | | | 165 | | | | | $ | 130,000 | | | | | $ | 247,068 | | |
Mr. Gangloff’s immediate family | | | | | 45 | | | | | $ | 90,000 | | | | | $ | 12,580 | | |
Mr. Dyrness’ affiliate | | | | | 100 | | | | | $ | 200,000 | | | | | $ | 35,107 | | |
Related Party | | | Restricted Stock | | | PSUs | | ||||||
Mr. Gangloff | | | | | 400,000 | | | | | | 448,000 | | |
Mr. Griffith | | | | | 500,000 | | | | | | 560,000 | | |
Dr. McAndrew | | | | | 200,000 | | | | | | 224,000 | | |
Ms. Yamashita | | | | | 150,000 | | | | | | 168,000 | | |
| | | | | | | Percentage of Shares Beneficially Owned | | | | | | | | Percentage of Shares Beneficially Owned | | ||||||||||||||||
Name of Beneficial Owner | | Number | | Before Offering | | After Offering | | | Number | | Before Offering | | After Offering | | ||||||||||||||||||
Five Percent Stockholders (other than directors and officers): | | | | | | | ||||||||||||||||||||||||||
Strides Pharma Limited(1) | | | | 6,000,000 | | | | | 12.3% | | | | | | | | 6,000,000 | | | | | 12.3% | | | | | ||||||
Named Executive Officers and Directors: | | | | | | | ||||||||||||||||||||||||||
Pankaj Mohan, Ph.D., President, Chief Executive Officer and Director(2) | | | | 25,775,000 | | | | | 52.7% | | | | | |||||||||||||||||||
Pankaj Mohan, Ph.D., Chairman, President and Chief Executive Officer(2) | | | | 25,775,000 | | | | | 52.7% | | | | | |||||||||||||||||||
Kenneth M. Bahrt, M.D., Chief Medical Officer(3) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
Elizabeth A. Yamashita, Vice President, Regulatory Affairs(4) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
Todd C. Brady, M.D., Ph.D., Director(5) | | | | 200,000 | | | | | * | | | | | | | | 200,000 | | | | | * | | | | | ||||||
Scott Canute, Director(6) | | | | 250,000 | | | | | * | | | | | | | | 250,000 | | | | | * | | | | | ||||||
Albert D. Dyrness, Director(7) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
Donald J. Griffith, Director(8) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
Kurt J. Hilzinger, Director(9) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
Robin Smith Hoke, Director(10) | | | | — | | | | | — | | | | | | | | — | | | | | — | | | | | ||||||
All executive officers and directors as a group (12 persons) | | | | 26,225,000 | | | | | 53.6% | | | | | |||||||||||||||||||
All executive officers and directors as a group (13 persons) | | | | 26,225,000 | | | | | 53.6% | | | | |
Approximate Number of Shares | | | First Date Available for Sale into Public Market | |
shares | | | 181 days after the date of this prospectus, or longer if the lock-up period is extended, upon expiration of the lock-up agreements referred to below, subject in some cases to applicable volume, manner of sale and other limitations under Rule 144 and Rule 701 | |
Underwriter | | | Number of Shares | |
Jefferies LLC | | | | |
Barclays Capital Inc. | | | | |
Cantor Fitzgerald & Co. | | | | |
Total | | | | |
|
| | | | | | | | | Total | | |||||||||
| | | Per Share | | | Without Option to Purchase Additional Shares | | | With Option to Purchase Additional Shares | | |||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions paid by us | | | | $ | | | | | | $ | | | | | | $ | | | |
Proceeds to us, before expenses | | | | $ | | | | | | $ | | | | | | $ | | | |
| | | Page | | |||
Audited Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
Unaudited Interim Financial Statements | | | | | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-30 | | | |
| | | | F-31 | | | |
| | | | F-32 | | |
| | September 30, | | | Pro Forma September 30, 2015 | ||||||||||||||||||||||||||
| | 2014 | | 2015 | | | September 30, | | |||||||||||||||||||||||
| | | | | | | | | | | | (Unaudited) | | 2014 | | 2015 | | ||||||||||||||
Assets | | | | | | ||||||||||||||||||||||||||
Current assets: | | | | | |||||||||||||||||||||||||||
Cash | | | $ | 2,349,313 | | | | $ | 9,070,975 | | | | $ | 29,952,480 | | | $ | 2,349,313 | | | | $ | 9,070,975 | | | ||||||
Accounts receivable | | | | — | | | | | 20,000 | | | | | 20,000 | | | | — | | | | | 20,000 | | | ||||||
Stock subscription receivable | | | | — | | | | | 4,280,149 | | | | | — | | | | — | | | | | 4,280,149 | | | ||||||
Prepaid and other current assets | | | | 797,279 | | | | | 1,793,109 | | | | | 1,793,109 | | | | 797,279 | | | | | 1,793,109 | | | ||||||
Total current assets | | | | 3,146,592 | | | | | 15,164,233 | | | | | 31,765,589 | | | | 3,146,592 | | | | | 15,164,233 | | | ||||||
Property and equipment, net | | | | 8,009,564 | | | | | 17,759,938 | | | | | 17,759,938 | | | | 8,009,564 | | | | | 17,759,938 | | | ||||||
Restricted cash | | | | 211,452 | | | | | 213,663 | | | | | 213,663 | | | | 211,452 | | | | | 213,663 | | | ||||||
Deferred offering costs | | | | — | | | | | 960,563 | | | | | 960,563 | | | | — | | | | | 960,563 | | | ||||||
Other assets | | | | 236,099 | | | | | 910,224 | | | | | 910,224 | | | | 236,099 | | | | | 910,224 | | | ||||||
Total assets | | | $ | 11,603,707 | | | | $ | 35,008,621 | | | | $ | 51,609,977 | | | $ | 11,603,707 | | | | $ | 35,008,621 | | | ||||||
Liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders’ equity (deficit) | | | | | | ||||||||||||||||||||||||||
Current liabilities: | | | | | | ||||||||||||||||||||||||||
Current portion of debt | | | $ | 725,706 | | | | $ | 742,646 | | | | $ | 742,646 | | | $ | 725,706 | | | | $ | 742,646 | | | ||||||
Current portion of capital lease obligations | | | | 132,090 | | | | | 862,849 | | | | | 862,849 | | | | 132,090 | | | | | 862,849 | | | ||||||
Current portion of stockholder notes | | | | 10,624,784 | | | | | 14,214,196 | | | | | 14,214,196 | | | | 10,624,784 | | | | | 14,214,196 | | | ||||||
Accounts payable | | | | 3,101,445 | | | | | 11,563,055 | | | | | 11,563,055 | | | | 3,101,445 | | | | | 11,563,055 | | | ||||||
Accrued expenses | | | | 2,560,279 | | | | | 5,924,648 | | | | | 5,924,648 | | | | 2,560,279 | | | | | 5,924,648 | | | ||||||
Income taxes payable | | | | 1,564,411 | | | | | 1,754,629 | | | | | 1,754,629 | | | | 1,564,411 | | | | | 1,754,629 | | | ||||||
Deferred revenue | | | | 1,501,416 | | | | | 1,979,576 | | | | | 1,979,576 | | | | 1,501,416 | | | | | 1,979,576 | | | ||||||
Total current liabilities | | | | 20,210,131 | | | | | 37,041,599 | | | | | 37,041,599 | | | | 20,210,131 | | | | | 37,041,599 | | | ||||||
Long-term debt | | | | 3,653,038 | | | | | 2,922,764 | | | | | 2,922,764 | | | | 3,653,038 | | | | | 2,922,764 | | | ||||||
Capital lease obligations | | | | 32,914 | | | | | 1,219,373 | | | | | 1,219,373 | | | | 32,914 | | | | | 1,219,373 | | | ||||||
Stockholder notes | | | | — | | | | | 2,000,000 | | | | | 2,000,000 | | | | — | | | | | 2,000,000 | | | ||||||
Deferred revenue | | | | 6,313,342 | | | | | 6,365,945 | | | | | 6,365,945 | | | | 6,313,342 | | | | | 6,365,945 | | | ||||||
Stock-based compensation liability | | | | 1,557,789 | | | | | 12,726,722 | | | | | — | | | | 1,557,789 | | | | | 12,726,722 | | | ||||||
Other liabilities | | | | 283,700 | | | | | 284,710 | | | | | 284,710 | | | | 283,700 | | | | | 284,710 | | | ||||||
Total liabilities | | | | 32,050,914 | | | | | 62,561,113 | | | | | 49,834,391 | | | | 32,050,914 | | | | | 62,561,113 | | | ||||||
Commitments (Note 9) | | | | | | ||||||||||||||||||||||||||
Redeemable preferred stock, common stock and noncontrolling interests: | | | | | | ||||||||||||||||||||||||||
Redeemable preferred stock, no par value: | | | | | | ||||||||||||||||||||||||||
Series A – 8,000 shares authorized; 3,681 and 3,568 shares issued and outstanding at September 30, 2014 and 2015, respectively; (liquidation preference of $5,072,653 at September 30, 2015) | | | | 4,787,996 | | | | | 5,072,653 | | | | | — | | | | 4,787,996 | | | | | 5,072,653 | | | ||||||
Series B – 4,000 shares authorized; 4,000 shares issued and outstanding; (liquidation preference of $5,118,208 at September 30, 2015) | | | | 4,589,872 | | | | | 5,118,208 | | | | | — | | | | 4,589,872 | | | | | 5,118,208 | | | ||||||
Redeemable common stock – 6,000,000 shares issued and outstanding | | | | 12,225,096 | | | | | 15,426,673 | | | | | — | | | | 12,225,096 | | | | | 15,426,673 | | | ||||||
Redeemable noncontrolling interests | | | | 3,101,047 | | | | | 1,703,777 | | | | | — | | | | 3,101,047 | | | | | 1,703,777 | | | ||||||
Total redeemable preferred stock, common stock and noncontrolling interests | | | | 24,704,011 | | | | | 27,321,311 | | | | | — | | | | 24,704,011 | | | | | 27,321,311 | | | ||||||
Stockholders’ equity (deficit): | | | | | | ||||||||||||||||||||||||||
Preferred stock, par value $0.01 per share: 50,000 shares authorized pro forma, no shares issued and outstanding | | | | — | | | | | — | | | | | — | |||||||||||||||||
Common stock, par value $0.01 per share; 100,000,000 shares authorized, shares issued and outstanding pro forma September 30, 2015 | | | | — | | | | | — | | | | | 96,494,289 | |||||||||||||||||
Common stock, no par value; 100,000,000 shares authorized; 26,464,231 and 32,555,266 shares issued and outstanding at September 30, 2014 and 2015, respectively; actual | | | | — | | | | | 39,844,900 | | | | | — | | | | — | | | | | 39,844,900 | | | ||||||
Additional paid-in capital | | | | — | | | | | — | | | | | — | | | | — | | | | | — | | | ||||||
Accumulated deficit | | | | (45,151,218) | | | | | (94,064,286) | | | | | (94,064,286) | | | | (45,151,218) | | | | | (94,064,286) | | | ||||||
Total Oncobiologics, Inc. stockholders’ equity (deficit) | | | | (45,151,218) | | | | | (54,219,386) | | | | | 2,430,003 | | | | (45,151,218) | | | | | (54,219,386) | | | ||||||
Noncontrolling interests | | | | — | | | | | (654,417) | | | | | (654,417) | | | | — | | | | | (654,417) | | | ||||||
Total stockholders’ equity (deficit) | | | | (45,151,218) | | | | | (54,873,803) | | | | | 1,775,586 | | | | (45,151,218) | | | | | (54,873,803) | | | ||||||
Total liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders’ equity (deficit) | | | $ | 11,603,707 | | | | $ | 35,008,621 | | | | $ | 51,609,977 | | | $ | 11,603,707 | | | | $ | 35,008,621 | | | |
| | | Year Ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Collaboration revenues | | | | $ | 9,050,542 | | | | | $ | 5,219,237 | | | ||
Operating expenses: | | | | ||||||||||||
Research and development | | | | | 14,124,631 | | | | | | 38,876,040 | | | ||
General and administrative | | | | | 7,318,314 | | | | | | 12,905,823 | | | ||
| | | | | 21,442,945 | | | | | | 51,781,863 | | | ||
Loss from operations | | | | | (12,392,403) | | | | | | (46,562,626) | | | ||
Interest expense | | | | | 901,052 | | | | | | 2,297,339 | | | ||
Loss before income taxes | | | | | (13,293,455) | | | | | | (48,859,965) | | | ||
Income tax expense (benefit) | | | | | 439,018 | | | | | | (190,111) | | | ||
Net loss | | | | | (13,732,473) | | | | | | (48,669,854) | | | ||
Less: Net loss attributable to noncontrolling interests | | | | | — | | | | | | (1,276,571) | | | ||
Net loss attributable to Oncobiologics, Inc. | | | | | (13,732,473) | | | | | | (47,393,283) | | | ||
Accretion of redeemable preferred stock and noncontrolling interests | | | | | (3,588,996) | | | | | | (4,306,488) | | | ||
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests | | | | | (3,336,855) | | | | | | (1,298,631) | | | ||
Net loss attributable to common stockholders of Oncobiologics, Inc. | | | | $ | (20,658,324) | | | | | $ | (52,998,402) | | | ||
Per share information: | | | | ||||||||||||
Net loss per share of common stock, basic and diluted | | | | $ | (0.70) | | | | | $ | (1.57) | | | ||
Weighted-average shares outstanding, basic and diluted | | | | | 29,358,331 | | | | | | 33,650,012 | | | ||
Pro forma net loss per share of common stock – basic and diluted (unaudited) | | | | | | | | | | | | | | ||
Pro forma weighted average shares outstanding (unaudited) | | | | | | | | | | | | | | ||
|
| | | Redeemable Preferred Stock, Common Stock and Noncontrolling Interests | | | | Stockholders’ Equity (Deficit) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock | | | Common Stock | | | Noncontrolling Interests | | | | Common Stock | | | Accumulated Deficit | | | Noncontrolling Interests | | | Total Stockholders’ Equity (Deficit) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Series A | | | Series B | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2013 | | | | | 6,995 | | | | | $ | 8,226,922 | | | | | | 3,600 | | | | | $ | 3,067,039 | | | | | | — | | | | | $ | — | | | | | $ | 2,829,733 | | | | | | | 33,347,000 | | | | | $ | — | | | | | $ | (22,608,182) | | | | | $ | — | | | | | $ | (22,608,182) | | |
Sale of redeemable common stock, net of issuance costs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,000,000 | | | | | | 10,895,000 | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Sale of Series B redeemable preferred stock and common stock, net of issuance costs | | | | | — | | | | | | — | | | | | | 400 | | | | | | 252,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | | 400,000 | | | | | | 148,000 | | | | | | — | | | | | | — | | | | | | 148,000 | | |
Issuance of restricted stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 313,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Repurchase of restricted stock in exchange for notes payable | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (2,195,500) | | | | | | (148,000) | | | | | | (949,750) | | | | | | — | | | | | | (1,097,750) | | |
Exchange of restricted stock for performance-based stock units | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (2,078,500) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reclassification of equity classified stock-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (364,187) | | | | | | — | | | | | | (364,187) | | |
Employee tax witholdings related to the vesting of restricted stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (9,769) | | | | | | — | | | | | | (23,153) | | | | | | — | | | | | | (23,153) | | |
Repurchase of common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (3,312,500) | | | | | | — | | | | | | (3,312,500) | | | | | | — | | | | | | (3,312,500) | | |
Repurchase of Series A redeemable preferred stock and deemed dividends | | | | | (3,314) | | | | | | (4,155,679) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (3,336,855) | | | | | | — | | | | | | (3,336,855) | | |
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | 2,764,878 | | | | | | — | | | | | | — | | | | | | 2,764,878 | | |
Accretion of redeemable preferred stock, common stock and noncontrolling interests | | | | | — | | | | | | 716,753 | | | | | | — | | | | | | 1,270,833 | | | | | | — | | | | | | 1,330,096 | | | | | | 271,314 | | | | | | | — | | | | | | (2,764,878) | | | | | | (824,118) | | | | | | — | | | | | | (3,588,996) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (13,732,473) | | | | | | — | | | | | | (13,732,473) | | |
Balance at September 30, 2014 | | | | | 3,681 | | | | | | 4,787,996 | | | | | | 4,000 | | | | | | 4,589,872 | | | | | | 6,000,000 | | | | | | 12,225,096 | | | | | | 3,101,047 | | | | | | | 26,464,231 | | | | | | — | | | | | | (45,151,218) | | | | | | — | | | | | | (45,151,218) | | |
| | | Redeemable Preferred Stock, Common Stock and Noncontrolling Interests | | | | Stockholders’ Equity (Deficit) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock | | | Common Stock | | | Noncontrolling Interests | | | | Common Stock | | | Accumulated Deficit | | | Noncontrolling Interests | | | Total Stockholders’ Equity (Deficit) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Series A | | | Series B | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution of common stock in Sonnet Biotherapeutics, Inc. to stockholders | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (221,154) | | | | | | 221,154 | | | | | | — | | | ||||||||||||
Contributions to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 401,000 | | | | | | 401,000 | | | ||||||||||||
Repurchase of Series A redeemable preferred stock and deemed dividends | | | | | (113) | | | | | | (142,370) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (83,631) | | | | | | — | | | | | | (83,631) | | | ||||||||||||
Repurchase of redeemable noncontrolling interests and deemed dividends | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,546,818) | | | | | | | — | | | | | | — | | | | | | (1,215,000) | | | | | | — | | | | | | (1,215,000) | | | ||||||||||||
Forfeitures of restricted stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||||||||||||
Sale of common stock, net of issuance costs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 6,091,035 | | | | | | 44,142,463 | | | | | | — | | | | | | — | | | | | | 44,142,463 | | | ||||||||||||
Accretion of redeemable preferred stock, common stock and noncontrolling interests | | | | | — | | | | | | 427,027 | | | | | | — | | | | | | 528,336 | | | | | | — | | | | | | 3,201,577 | | | | | | 149,548 | | | | | | | — | | | | | | (4,306,488) | | | | | | — | | | | | | — | | | | | | (4,306,488) | | | ||||||||||||
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | 8,925 | | | | | | — | | | | | | — | | | | | | 8,925 | | | ||||||||||||
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (47,393,283) | | | | | | (1,276,571) | | | | | | (48,669,854) | | | ||||||||||||
Balance at September 30, 2015 | | | | | 3,568 | | | | | $ | 5,072,653 | | | | | | 4,000 | | | | | $ | 5,118,208 | | | | | | 6,000,000 | | | | | $ | 15,426,673 | | | | | $ | 1,703,777 | | | | | | | 32,555,266 | | | | | $ | 39,844,900 | | | | | $ | (94,064,286) | | | | | $ | (654,417) | | | | | $ | (54,873,803) | | | ||||||||||||
|
| | | Year Ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Operating activities: | | | | ||||||||||||
Net loss | | | | $ | (13,732,473) | | | | | $ | (48,669,854) | | | ||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | ||||||||||||
Depreciation and amortization | | | | | 878,477 | | | | | | 1,824,600 | | | ||
Non-cash interest expense | | | | | 12,264 | | | | | | 12,264 | | | ||
Stock-based compensation | | | | | 3,958,480 | | | | | | 11,177,858 | | | ||
Changes in operating assets and liabilities: | | | | ||||||||||||
Accounts receivable | | | | | — | | | | | | (20,000) | | | ||
Prepaid expenses and other current assets | | | | | (719,302) | | | | | | (1,021,852) | | | ||
Other assets | | | | | (84,330) | | | | | | (322,729) | | | ||
Accounts payable | | | | | (96,403) | | | | | | 6,580,722 | | | ||
Accrued expenses | | | | | 598,266 | | | | | | 2,240,800 | | | ||
Income taxes payable | | | | | 1,084,921 | | | | | | 190,218 | | | ||
Deferred revenue | | | | | 949,458 | | | | | | 530,763 | | | ||
Other liabilities | | | | | 130,173 | | | | | | 1,010 | | | ||
Net cash used in operating activities | | | | | (7,020,469) | | | | | | (27,476,200) | | | ||
Investing activities: | | | | ||||||||||||
Purchase of property and equipment | | | | | (2,366,772) | | | | | | (8,804,244) | | | ||
Net cash used in investing activities | | | | | (2,366,772) | | | | | | (8,804,244) | | | ||
Financing activities: | | | | ||||||||||||
Proceeds from the sale of Series B redeemable preferred stock | | | | | 252,000 | | | | | | — | | | ||
Repurchase of Series A redeemable preferred stock | | | | | (4,128,000) | | | | | | (226,001) | | | ||
Proceeds from the sale of redeemable common stock | | | | | 10,895,000 | | | | | | — | | | ||
Proceeds from the sale of common stock | | | | | 148,000 | | | | | | 41,249,998 | | | ||
Proceeds from the sale of equity in noncontrolling interest | | | | | — | | | | | | 401,000 | | | ||
Payments of capital leases obligations | | | | | (193,973) | | | | | | (686,676) | | | ||
Proceeds from debt | | | | | 2,460,434 | | | | | | — | | | ||
Repayment of debt | | | | | (753,531) | | | | | | (725,598) | | | ||
Proceeds from stockholder notes | | | | | 6,000,000 | | | | | | 10,880,252 | | | ||
Repayment of stockholder notes | | | | | (3,125,000) | | | | | | (7,888,658) | | | ||
Change in restricted cash | | | | | (3,383) | | | | | | (2,211) | | | ||
Payment of employee tax witholdings related to the vesting of restricted stock | | | | | (23,153) | | | | | | — | | | ||
Payment of financing costs | | | | | (54,248) | | | | | | — | | | ||
Net cash provided by financing activities | | | | | 11,474,146 | | | | | | 43,002,106 | | | ||
Net increase in cash | | | | | 2,086,905 | | | | | | 6,721,662 | | | ||
Cash at beginning of year | | | | | 262,408 | | | | | | 2,349,313 | | | ||
Cash at end of year | | | | $ | 2,349,313 | | | | | $ | 9,070,975 | | | ||
Supplemental disclosure of cash flow information | | | | | | | | | | | | | | ||
Cash paid for interest | | | | $ | 817,965 | | | | | $ | 1,402,209 | | | ||
Cash paid for taxes | | | | $ | 1,750 | | | | | $ | 2,250 | | | ||
Supplemental schedule of noncash investing activities: | | | | ||||||||||||
Purchases of property and equipment in accounts payable and accrued expenses | | | | $ | (215,907) | | | | | $ | (2,770,730) | | | ||
Supplemental schedule of noncash financing activities: | | | | ||||||||||||
Accretion of redeemable preferred stock | | | | $ | 3,588,996 | | | | | $ | 4,306,488 | | | ||
Deemed dividend upon repurchase of Series A redeemable preferred stock in excess of carrying value | | | | $ | (3,336,855) | | | | | $ | (1,298,631) | | | ||
Reclassification of equity classified stock-based compensation | | | | $ | (364,187) | | | | | $ | — | | | ||
Issuance of notes upon repurchase of restricted stock and common stock | | | | $ | 4,410,250 | | | | | $ | — | | | ||
Issuance of subscription receivable upon sale of common stock | | | | $ | — | | | | | $ | (4,280,149) | | | ||
Distribution of common stock in Sonnet Biotherapeutics Inc. to stockholders | | | | $ | — | | | | | $ | (221,154) | | | ||
Issuance of capital lease obligations in connection with purchase of property and equipment | | | | $ | 215,908 | | | | | $ | 2,603,894 | | | ||
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses | | | | $ | — | | | | | $ | 2,310,961 | | | ||
|
| | | September 30, | | |||||||||
| | | 2014 | | | 2015 | | ||||||
Series A redeemable preferred stock | | | | | 3,681,000 | | | | | | 3,568,000 | | |
Series B redeemable preferred stock | | | | | 4,000,000 | | | | | | 4,000,000 | | |
Unvested shares of restricted common stock | | | | | 112,000 | | | | | | — | | |
Convertible stockholder note | | | | | — | | | | | | 333,333 | | |
| Numerator: | | | ||||||
| Net loss applicable to common stockholders of Oncobiologics, Inc. | | | | $ | (52,998,402) | | | |
| Effect of pro forma adjustments: | | | ||||||
| Accretion of redeemable preferred stock and noncontrolling interests | | | | | 4,306,488 | | | |
| Deemed dividends | | | | | 1,298,631 | | | |
| Pro forma net loss attributable to common stockholders of Oncobiologics, Inc. | | | | $ | (47,393,283) | | | |
| Denominator: | | | ||||||
| Weighted-average common shares outstanding | | | | | | | | |
| Effect of pro forma adjustments: | | | ||||||
| Exchange of Series A and Series B redeemable preferred stock | | | | | | | | |
| Exchange of Parilis Preferred Units | | | | | | | | |
| Conversion of Series A Preferred Stock liquidation value | | | | | | | | |
| Issuance of common stock in December 2015 | | | | | | | | |
| Shares used in computing unaudited pro forma weighted-average basic and diluted common shares outstanding | | | | | | | | |
| Unaudited pro forma basic and diluted net loss per common share | | | | $ | | | | |
|
| | | September 30, 2014 | |||||||||||||||||
| | | (Level 1) | | | (Level 2) | | | (Level 3) | |||||||||||
Liabilities | | | | | ||||||||||||||||
Stock-based compensation liability | | | | $ | — | | | | | $ | — | | | | | $ | 1,557,789 | |||
|
| | | September 30, 2015 | |||||||||||||||||
| | | (Level 1) | | | (Level 2) | | | (Level 3) | |||||||||||
Liabilities | | | | | ||||||||||||||||
Stock-based compensation liability | | | | $ | — | | | | | $ | — | | | | | $ | 12,726,722 | |||
|
| Balance at October 1, 2013 | | | | $ | — | | | |
| Issued | | | | | 364,187 | | | |
| Change in fair value | | | | | 1,193,602 | | | |
| Balance at September 30, 2014 | | | | | 1,557,789 | | | |
| Change in fair value | | | | | 11,168,933 | | | |
| Balance at September 30, 2015 | | | | $ | 12,726,722 | | | |
|
| | | September 30, | | |||
| | | 2014 | | | 2015 | |
Risk-free interest rate | | | 1.8% | | | 1.4% | |
Derived service period | | | 5 years | | | 5 years | |
Expected volatility | | | 60% | | | 60% | |
Annual dividend yield | | | 0% | | | 0% | |
Fair value of common stock | | | $2.21 per share | | | $7.475 per share | |
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Laboratory equipment | | | | $ | 6,847,970 | | | | | $ | 10,936,364 | | | ||
Leasehold improvements | | | | | 2,756,291 | | | | | | 9,889,521 | | | ||
Computer software and hardware | | | | | 224,150 | | | | | | 402,075 | | | ||
Construction in process | | | | | — | | | | | | 175,425 | | | ||
| | | | | 9,828,411 | | | | | | 21,403,385 | | | ||
Less: accumulated depreciation and amortization | | | | | (1,818,847) | | | | | | (3,643,447) | | | ||
| | | | $ | 8,009,564 | | | | | $ | 17,759,938 | | | ||
|
| 2016 | | | | $ | 1,087,192 | | | |
| 2017 | | | | | 1,053,748 | | | |
| 2018 | | | | | 295,010 | | | |
| | | | | | 2,435,950 | | | |
| Less: amounts representing interest | | | | | (353,728) | | | |
| Less: current portion | | | | | (862,849) | | | |
| Capital lease obligations, excluding current portion | | | | $ | 1,219,373 | | | |
|
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Compensation | | | | $ | 1,907,684 | | | | | $ | 2,321,508 | | | ||
Research and development | | | | | 170,513 | | | | | | 951,759 | | | ||
Interest payable | | | | | 106,940 | | | | | | 806,475 | | | ||
Deferred offering costs | | | | | — | | | | | | 657,892 | | | ||
Professional fees | | | | | 131,668 | | | | | | 594,572 | | | ||
Director fees | | | | | 239,420 | | | | | | 414,421 | | | ||
Other accrued expenses | | | | | 4,054 | | | | | | 178,021 | | | ||
| | | | $ | 2,560,279 | | | | | $ | 5,924,648 | | | ||
|
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Series A repurchase notes | | | | $ | 3,014,534 | | | | | $ | 800,534 | | | ||
Parilis Series A repurchase notes | | | | | — | | | | | | 2,275,818 | | | ||
Restricted stock repurchase notes | | | | | 1,097,750 | | | | | | 1,097,750 | | | ||
Common stock repurchase note | | | | | 2,812,500 | | | | | | 2,812,500 | | | ||
Convertible note | | | | | — | | | | | | 2,000,000 | | | ||
Working capital notes | | | | | 3,700,000 | | | | | | 7,227,594 | | | ||
| | | | | 10,624,784 | | | | | | 16,214,196 | | | ||
Less current portion | | | | | (10,624,784) | | | | | | (14,214,196) | | | ||
Stockholder notes, excluding current portion | | | | $ | — | | | | | $ | 2,000,000 | | | ||
|
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Term loans-Bank | | | | $ | 3,935,574 | | | | | $ | 3,404,759 | | | ||
Equipment loans | | | | | 528,876 | | | | | | 334,093 | | | ||
Unamortized debt discount | | | | | (85,706) | | | | | | (73,442) | | | ||
| | | | | 4,378,744 | | | | | | 3,665,410 | | | ||
Less current portion | | | | | 725,706 | | | | | | 742,646 | | | ||
Long-term debt, excluding current portion | | | | $ | 3,653,038 | | | | | $ | 2,922,764 | | | ||
|
| 2016 | | | | $ | 742,646 | | | |
| 2017 | | | | | 717,794 | | | |
| 2018 | | | | | 637,479 | | | |
| 2019 | | | | | 509,864 | | | |
| 2020 | | | | | 523,062 | | | |
| Thereafter | | | | | 608,007 | | | |
| | | | | $ | 3,738,852 | | | |
|
| 2016 | | | | $ | 888,710 | | | |
| 2017 | | | | | 865,763 | | | |
| 2018 | | | | | 865,763 | | | |
| 2019 | | | | | 876,323 | | | |
| 2020 | | | | | 887,045 | | | |
| Thereafter | | | | | 643,749 | | | |
| | | | | $ | 5,027,353 | | | |
|
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Research and development | | | | $ | 671,745 | | | | | $ | 5,817,830 | | | ||
General and administrative | | | | | 3,286,735 | | | | | | 5,360,028 | | | ||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | ||
|
| | | September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Equity-classified compensation | | | | $ | 2,764,878 | | | | | $ | 8,925 | | | ||
Liability-classified compensation | | | | | 1,193,602 | | | | | | 11,168,933 | | | ||
| | | | $ | 3,958,480 | | | | | $ | 11,177,858 | | | ||
|
| Balance at October 1, 2013 | | | | | — | | | |
| Issued in exchange for restricted shares and stock options | | | | | 2,454,480 | | | |
| Additional issuances | | | | | 58,200 | | | |
| Forfeitures | | | | | (240,800) | | | |
| Balance at September 30, 2014 | | | | | 2,271,880 | | | |
| Grants | | | | | 138,000 | | | |
| Forfeitures | | | | | (39,600) | | | |
| Balance at September 30, 2015 | | | | | 2,370,280 | | | |
|
| | | Employees | | | Non Employees | | | Weighted Average Grant Date Fair Value | | ||||||||||||
Balance at October 1, 2013 | | | | | 2,269,000 | | | | | | 1,915,500 | | | | | $ | 0.30 | | | |||
Granted | | | | | 313,500 | | | | | | — | | | | | | 1.61 | | | |||
Vested | | | | | (102,000) | | | | | | (10,000) | | | | | | 0.20 | | | |||
Exchange for PSUs | | | | | (1,978,500) | | | | | | (100,000) | | | | | | 0.40 | | | |||
Repurchased for stockholder notes | | | | | (400,000) | | | | | | (1,795,500) | | | | | | 0.39 | | | |||
Balance at September 30, 2014 | | | | | 102,000 | | | | | | 10,000 | | | | | | 0.20 | | | |||
Vested | | | | | (102,000) | | | | | | (10,000) | | | | | | 0.20 | | | |||
Balance at September 30, 2015 | | | | | — | | | | | | — | | | | | $ | — | | | |||
|
| | | Number of Options | | | Weighted Average Exercise Price Per Share | | ||||||||
Balance at October 1, 2013 | | | | | 108,000 | | | | | $ | 1.00 | | | ||
Exchange for PSUs | | | | | (108,000) | | | | | | 1.00 | | | ||
Balance at September 30, 2014 | | | | | — | | | | | $ | — | | | ||
|
| | | Year Ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
State tax, including sale of New Jersey losses and credits | | | | $ | (833,403) | | | | | | (725,969) | | | ||
Foreign tax provision | | | | | 1,272,421 | | | | | | 535,858 | | | ||
| | | | $ | 439,018 | | | | | $ | (190,111) | | | ||
|
| | Year Ended September 30, | | | Year Ended September 30, | | ||||||||||||||||||||
| | 2014 | | 2015 | | | 2014 | | 2015 | | ||||||||||||||||
U.S. federal statutory rate | | | | (34.0)% | | | | | (34.0)% | | | | | | (34.0)% | | | | | (34.0)% | | | ||||
State taxes, net of federal benefit | | | | (5.1) | | | | | (5.5) | | | | | | (5.1) | | | | | (5.5) | | | ||||
Foreign withholding tax | | | | 9.6 | | | | | 1.1 | | | | | | 9.6 | | | | | 1.1 | | | ||||
Permanent differences | | | | 2.7 | | | | | 1.8 | | | | | | 2.7 | | | | | 1.8 | | | ||||
Foreign tax credits | | | | (9.6) | | | | | (1.1) | | | | | | (9.6) | | | | | (1.1) | | | ||||
Research and development credit | | | | (11.7) | | | | | (6.9) | | | | | | (11.7) | | | | | (6.9) | | | ||||
Change in valuation allowance | | | | 51.1 | | | | | 44.8 | | | | | | 51.1 | | | | | 44.6 | | | ||||
Other | | | | 0.3 | | | | | (0.4) | | | | | | 0.3 | | | | | (0.4) | | | ||||
Effective income tax rate | | | | 3.3% | | | | | (0.4)% | | | | | | 3.3% | | | | | (0.4)% | | | |
| | | Year Ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Current and long term deferred tax assets: | | | | ||||||||||||
Net operating loss carryforwards | | | | $ | 7,340,745 | | | | | $ | 20,164,392 | | | ||
Stock compensation | | | | | 1,853,056 | | | | | | 6,317,492 | | | ||
Deferred revenue | | | | | 3,121,214 | | | | | | 3,333,201 | | | ||
Research and development credit carryforward | | | | | 2,680,441 | | | | | | 5,979,964 | | | ||
Foreign tax credits | | | | | 2,067,091 | | | | | | 2,602,949 | | | ||
Accruals and others | | | | | 1,040,117 | | | | | | 1,072,422 | | | ||
Gross deferred tax assets | | | | | (18,102,664) | | | | | | (39,470,420) | | | ||
Less valuation allowance | | | | | (17,400,409) | | | | | | (38,694,795) | | | ||
| | | | | 702,255 | | | | | | 775,625 | | | ||
Deferred tax liability: | | | | ||||||||||||
Fixed assets | | | | | (702,255) | | | | | | (775,625) | | | ||
Net deferred tax assets | | | | $ | — | | | | | $ | — | | | ||
|
| | | Year Ended September 30, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Balance at beginning of year | | | | $ | 479,490 | | | | | $ | 1,564,411 | | | ||
Additions based on tax positions related to the current year | | | | | 1,084,921 | | | | | | 190,218 | | | ||
Balance at end of year | | | | $ | 1,564,411 | | | | | $ | 1,754,629 | | | ||
|
| | | September 30, 2015 | | | December 31, 2015 | | | Pro Forma December 31, 2015 | | ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | |||
Current assets: | | | | | ||||||||||||||||||
Cash | | | | $ | 9,070,975 | | | | | $ | 5,582,255 | | | | | $ | 10,806,901 | | | |||
Accounts receivable | | | | | 20,000 | | | | | | 103,090 | | | | | | 103,090 | | | |||
Stock subscription receivable | | | | | 4,280,149 | | | | | | 2,749,997 | | | | | | — | | | |||
Related party receivable | | | | | — | | | | | | 639,173 | | | | | | 639,173 | | | |||
Prepaid and other current assets | | | | | 1,793,109 | | | | | | 1,651,036 | | | | | | 1,651,036 | | | |||
Total current assets | | | | | 15,164,233 | | | | | | 10,725,551 | | | | | | 13,200,200 | | | |||
Property and equipment, net | | | | | 17,759,938 | | | | | | 17,504,020 | | | | | | 17,504,020 | | | |||
Restricted cash | | | | | 213,663 | | | | | | 213,663 | | | | | | 213,663 | | | |||
Deferred offering costs | | | | | 960,563 | | | | | | 1,974,844 | | | | | | 1,974,844 | | | |||
Other assets | | | | | 910,224 | | | | | | 904,791 | | | | | | 904,791 | | | |||
Total assets | | | | $ | 35,008,621 | | | | | $ | 31,322,869 | | | | | $ | 33,797,518 | | | |||
Liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders’ equity (deficit) | | | | | ||||||||||||||||||
Current liabilities: | | | | | ||||||||||||||||||
Current portion of debt | | | | $ | 742,646 | | | | | $ | 751,190 | | | | | $ | 751,190 | | | |||
Current portion of capital lease obligations | | | | | 862,849 | | | | | | 864,902 | | | | | | 864,902 | | | |||
Current portion of stockholder notes | | | | | 14,214,196 | | | | | | 10,140,813 | | | | | | 10,140,813 | | | |||
Accounts payable | | | | | 11,563,055 | | | | | | 11,667,512 | | | | | | 11,616,992 | | | |||
Accrued expenses | | | | | 5,924,648 | | | | | | 8,604,917 | | | | | | 8,604,917 | | | |||
Income taxes payable | | | | | 1,754,629 | | | | | | 1,804,629 | | | | | | 1,804,629 | | | |||
Deferred revenue | | | | | 1,979,576 | | | | | | 1,979,576 | | | | | | 1,979,576 | | | |||
Total current liabilities | | | | | 37,041,599 | | | | | | 35,813,539 | | | | | | 35,763,019 | | | |||
Long-term debt | | | | | 2,922,764 | | | | | | 2,737,227 | | | | | | 2,737,227 | | | |||
Capital lease obligations | | | | | 1,219,373 | | | | | | 994,668 | | | | | | 994,668 | | | |||
Stockholder notes | | | | | 2,000,000 | | | | | | — | | | | | | — | | | |||
Deferred revenue | | | | | 6,365,945 | | | | | | 5,871,051 | | | | | | 5,871,051 | | | |||
Stock-based compensation liability | | | | | 12,726,722 | | | | | | — | | | | | | — | | | |||
Other liabilities | | | | | 284,710 | | | | | | 454,988 | | | | | | 454,988 | | | |||
Total liabilities | | | | | 62,561,113 | | | | | | 45,871,473 | | | | | | 45,820,953 | | | |||
Redeemable preferred stock, common stock and noncontrolling interests: | | | | | ||||||||||||||||||
Redeemable preferred stock, no par value: | | | | | ||||||||||||||||||
Series A – 8,000 shares authorized; 3,568 issued and outstanding at September 30, 2015; No shares authorized, issued or outstanding at December 31, 2015 | | | | | 5,072,653 | | | | | | — | | | | | | — | | | |||
Series B – 4,000 shares authorized, issued and outstanding at September 30, 2015; No shares authorized, issued or outstanding at December 31, 2015 | | | | | 5,118,208 | | | | | | — | | | | | | — | | | |||
Redeemable common stock – 6,000,000 shares issued and outstanding at September 30, 2015 and December 31, 2015 actual | | | | | 15,426,673 | | | | | | 16,366,212 | | | | | | — | | | |||
Redeemable noncontrolling interests | | | | | 1,703,777 | | | | | | — | | | | | | — | | | |||
Total redeemable preferred stock, common stock and noncontrolling interests | | | | | 27,321,311 | | | | | | 16,366,212 | | | | | | — | | | |||
Stockholders’ equity (deficit): | | | | | ||||||||||||||||||
Series A preferred stock, par value $0.01 per share: 10,0000,000 shares authorized, 11,819 shares issued and outstanding at December 31, 2015 (liquidation prefence of $11,819,000 at December 31, 2015) | | | | | — | | | | | | 118 | | | | | | — | | | |||
Common stock, par value $0.01 per share; 100,000,000 shares authorized at December 31, 2015; 42,572,738 shares issued and outstanding at December 31, 2015 actual and shares issued and outstanding pro forma | | | | | — | | | | | | 425,727 | | | | | | 488,857 | | | |||
Common stock, no par value; 100,000,000 shares authorized; 32,555,266 shares issued and outstanding at September 30, 2015; no shares authorized issued or outstanding at December 31, 2015 | | | | | 39,844,900 | | | | | | — | | | | | | — | | | |||
Additional paid-in capital | | | | | — | | | | | | 79,587,837 | | | | | | 98,416,206 | | | |||
Accumulated deficit | | | | | (94,064,286) | | | | | | (110,928,498) | | | | | | (110,928,498) | | | |||
Total Oncobiologics, Inc. stockholders' equity (deficit) | | | | | (54,219,386) | | | | | | (30,914,816) | | | | | | (12,023,435) | | | |||
Non controlling interests | | | | | (654,417) | | | | | | — | | | | | | — | | | |||
Total stockholders' equity (deficit) | | | | | (54,873,803) | | | | | | (30,914,816) | | | | | | (12,023,435) | | | |||
Total liabilities, redeemable preferred stock, common stock, noncontrolling interests and stockholders' equity (deficit) | | | | $ | 35,008,621 | | | | | $ | 31,322,869 | | | | | $ | 33,797,518 | | | |||
|
| | | Three Months Ended December 31, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Collaboration revenues | | | | $ | 2,934,555 | | | | | $ | 994,894 | | | ||
Operating expenses: | | | | ||||||||||||
Research and development | | | | | 5,840,030 | | | | | | 12,733,976 | | | ||
General and administrative | | | | | 1,237,839 | | | | | | 4,674,155 | | | ||
| | | | | 7,077,869 | | | | | | 17,408,131 | | | ||
Loss from operations | | | | | (4,143,314) | | | | | | (16,413,237) | | | ||
Interest expense | | | | | 357,580 | | | | | | 398,975 | | | ||
Loss before income taxes | | | | | (4,500,894) | | | | | | (16,812,212) | | | ||
Income tax expense | | | | | 406,363 | | | | | | 52,000 | | | ||
Net loss | | | | | (4,907,257) | | | | | | (16,864,212) | | | ||
Accretion of redeemable preferred stock and noncontrolling interests | | | | | (1,071,164) | | | | | | (939,539) | | | ||
Deemed dividends upon the repurchase of Series A redeemable preferred stock and redeemable noncontrolling interests | | | | | (1,230,998) | | | | | | — | | | ||
Net loss attributable to common stockholders of Oncobiologics, Inc. | | | | $ | (7,209,419) | | | | | $ | (17,803,751) | | | ||
Per share information: | | | | ||||||||||||
Net loss per share of common stock, basic and diluted | | | | $ | (0.22) | | | | | $ | (0.40) | | | ||
Weighted average shares outstanding, basic and diluted | | | | | 32,352,231 | | | | | | 45,062,494 | | | ||
Pro forma net loss per share of common stock – basic and diluted | | | | | | | | | | | | | | ||
Pro forma weighted average shares outstanding | | | | | | | | | | | | | | ||
|
| | | Redeemable Preferred Stock, Common Stock and Noncontrolling Interests | | | | Stockholders’ Equity (Deficit) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Preferred Stock | | | Common Stock | | | Noncontrolling Interests | | | | Series A Preferred Stock | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Noncontrolling Interests | | | Total Stockholders’ Equity (Deficit) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Series A | | | Series B | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 1, 2015 | | | | | 3,568 | | | | | $ | 5,072,653 | | | | | | 4,000 | | | | | $ | 5,118,208 | | | | | | 6,000,000 | | | | | $ | 15,426,673 | | | | | $ | 1,703,777 | | | | | | | — | | | | | $ | — | | | | | | 32,555,266 | | | | | $ | 39,844,900 | | | | | $ | — | | | | | $ | (94,064,286) | | | | | $ | (654,417) | | | | | $ | (54,873,803) | | | |||||||||||||||
Deconsolidation of Sonnet Biotherapeutics, Inc. | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 654,417 | | | | | | 654,417 | | | |||||||||||||||
Employee tax witholdings related to the vesting of restricted stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | (9,600) | | | | | | (71,760) | | | | | | — | | | | | | — | | | | | | — | | | | | | (71,760) | | | |||||||||||||||
Reincorporation to a Delaware Corporation | | | | | (3,568) | | | | | | (5,072,653) | | | | | | (4,000) | | | | | | (5,118,208) | | | | | | — | | | | | | — | | | | | | — | | | | | | | 10,193 | | | | | | 102 | | | | | | 7,568,000 | | | | | | (39,372,004) | | | | | | 49,562,763 | | | | | | — | | | | | | — | | | | | | 10,190,861 | | | |||||||||||||||
Issuance of preferred and common stock upon the dissolution of Parilis | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,703,777) | | | | | | | 1,626 | | | | | | 16 | | | | | | 782,000 | | | | | | 7,820 | | | | | | 1,695,941 | | | | | | — | | | | | | — | | | | | | 1,703,777 | | | |||||||||||||||
Sale of common stock, net of issuance costs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,677,072 | | | | | | 16,771 | | | | | | 14,051,916 | | | | | | — | | | | | | — | | | | | | 14,068,687 | | | |||||||||||||||
Reclassification of stock-based compensation liability | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,118,584 | | | | | | — | | | | | | — | | | | | | 15,118,584 | | | |||||||||||||||
Stock-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 98,172 | | | | | | — | | | | | | — | | | | | | 98,172 | | | |||||||||||||||
Accretion of redeemable common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 939,539 | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (939,539) | | | | | | — | | | | | | — | | | | | | (939,539) | | | |||||||||||||||
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,864,212) | | | | | | — | | | | | | (16,864,212) | | | |||||||||||||||
Balance at December 31, 2015 | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 6,000,000 | | | | | $ | 16,366,212 | | | | | $ | — | | | | | | | 11,819 | | | | | $ | 118 | | | | | | 42,572,738 | | | | | $ | 425,727 | | | | | $ | 79,587,837 | | | | | $ | (110,928,498) | | | | | $ | — | | | | | $ | (30,914,816) | | | |||||||||||||||
|
| | | Three Months Ended December 31, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Operating activities: | | | | ||||||||||||
Net loss | | | | $ | (4,907,257) | | | | | $ | (16,864,212) | | | ||
Adjustments to reconcile net loss to net cash used in operating activities: | | | | ||||||||||||
Depreciation and amortization | | | | | 222,075 | | | | | | 593,977 | | | ||
Non-cash interest expense | | | | | 2,117 | | | | | | 3,065 | | | ||
Stock-based compensation | | | | | 145,674 | | | | | | 2,490,034 | | | ||
Changes in operating assets and liabilities: | | | | ||||||||||||
Accounts receivable | | | | | (2,501,360) | | | | | | (83,090) | | | ||
Prepaid expenses and other current assets | | | | | (702,599) | | | | | | 142,073 | | | ||
Other assets | | | | | — | | | | | | 5,433 | | | ||
Accounts payable | | | | | 1,594,145 | | | | | | (233,942) | | | ||
Accrued expenses | | | | | 239,224 | | | | | | 2,203,188 | | | ||
Income taxes payable | | | | | 226,113 | | | | | | 50,000 | | | ||
Deferred revenue | | | | | 2,015,445 | | | | | | (494,894) | | | ||
Other liabilities | | | | | — | | | | | | 176,087 | | | ||
Net cash used in operating activities | | | | | (3,666,423) | | | | | | (12,012,281) | | | ||
Investing activities: | | | | ||||||||||||
Purchase of property and equipment | | | | | (527,877) | | | | | | (364,242) | | | ||
Net cash used in investing activities | | | | | (527,877) | | | | | | (364,242) | | | ||
Financing activities: | | | | ||||||||||||
Repurchase of Series A redeemable preferred stock | | | | | (50,001) | | | | | | — | | | ||
Proceeds from the sale of common stock | | | | | — | | | | | | 11,318,690 | | | ||
Proceeds from subscriptions receivable | | | | | — | | | | | | 4,280,149 | | | ||
Proceeds from future stock issuance | | | | | — | | | | | | 50,520 | | | ||
Payments of capital leases obligations | | | | | (88,984) | | | | | | (222,652) | | | ||
Repayment of debt | | | | | (189,938) | | | | | | (180,058) | | | ||
Proceeds from stockholder notes | | | | | 4,000,000 | | | | | | — | | | ||
Repayment of stockholder notes | | | | | — | | | | | | (6,073,383) | | | ||
Change in restricted cash | | | | | (550) | | | | | | — | | | ||
Proceeds from related party receivable | | | | | — | | | | | | 187,388 | | | ||
Deconsolidation of Sonnet Biotherapeutics, Inc. | | | | | — | | | | | | (401,091) | | | ||
Payment of employee tax witholdings related to the vesting of restricted stock | | | | | — | | | | | | (71,760) | | | ||
Net cash provided by financing activities | | | | | 3,670,527 | | | | | | 8,887,803 | | | ||
Net decrease in cash | | | | | (523,773) | | | | | | (3,488,720) | | | ||
Cash at beginning of period | | | | | 2,349,313 | | | | | | 9,070,975 | | | ||
Cash at end of period | | | | $ | 1,825,540 | | | | | $ | 5,582,255 | | | ||
| | | | ||||||||||||
Supplemental disclosure of cash flow information | | | | ||||||||||||
Cash paid for interest | | | | $ | 265,078 | | | | | $ | 496,296 | | | ||
Cash paid for taxes | | | | $ | 250 | | | | | $ | 2,000 | | | ||
Supplemental schedule of noncash investing activities: | | | | ||||||||||||
Purchases of property and equipment in accounts payable and accrued expenses | | | | $ | (402,050) | | | | | $ | (200,780) | | | ||
Supplemental schedule of noncash financing activities: | | | | ||||||||||||
Accretion of redeemable preferred stock, common stock and noncontrolling interests | | | | $ | 1,071,164 | | | | | $ | 939,539 | | | ||
Deemed dividend upon repurchase of Series A redeemable preferred stock in excess of carrying value | | | | $ | 1,230,998 | | | | | $ | — | | | ||
Issuance of common stock and Series A preferred stock to redeemable preferred stockholders and noncontrolling interests upon reincorporation | | | | $ | — | | | | | $ | (11,894,638) | | | ||
Reclassification of equity classified stock-based compensation | | | | $ | — | | | | | $ | (15,118,584) | | | ||
Issuance of capital lease obligations in connection with purchase of property and equipment | | | | $ | 523,293 | | | | | $ | — | | | ||
Issuance of notes payable upon repurchase of redeemable noncontrolling interests | | | | $ | 2,761,818 | | | | | $ | — | | | ||
Issuance of subscription receivable upon sale of common stock | | | | $ | — | | | | | $ | (2,749,997) | | | ||
Deferred offering costs and common stock issuance costs in accounts payable and accrued expenses | | | | $ | — | | | | | $ | (1,014,281) | | | ||
|
| | | December 31, | | |||||||||
| | | 2014 | | | 2015 | | ||||||
Series A redeemable preferred stock | | | | | 3,656,000 | | | | | | — | | |
Series B redeemable preferred stock | | | | | 4,000,000 | | | | | | — | | |
Series A preferred stock | | | | | — | | | | | | 11,819,000 | | |
Performance share units | | | | | — | | | | | | 860,880 | | |
Restricted stock units | | | | | — | | | | | | 3,678,425 | | |
Unvested shares of restricted common stock | | | | | 112,000 | | | | | | — | | |
Convertible stockholder note | | | | | 333,333 | | | | | | 333,333 | | |
| Numerator: | | | ||||||
| Net loss applicable to common stockholders of Oncobiologics, Inc. | | | | $ | (17,803,751) | | | |
| Effect of pro forma adjustments: | | | ||||||
| Accretion of redeemable common stock | | | | | 939,539 | | | |
| Pro forma net loss attributable to common stockholders of Oncobiologics, Inc. | | | | $ | (16,864,212) | | | |
| Denominator: | | | ||||||
| Weighted-average common shares outstanding | | | ||||||
| Conversion of Series A preferred stock liquidation value | | | | | | | | |
| Shares used in computing unaudited pro forma weighted-average basic and diluted common shares outstanding | | | | | | | | |
| Unaudited pro forma basic and diluted net loss per common share | | | | $ | | | | |
|
| | | September 30, 2015 | | ||||||||||||||||||
| | | (Level 1) | | | (Level 2) | | | (Level 3) | | ||||||||||||
Liabilities | | | | | ||||||||||||||||||
Stock-based compensation liability | | | | $ | — | | | | | $ | — | | | | | $ | 12,726,722 | | | |||
|
| Balance at October 1, 2015 | | | | $ | 12,726,722 | | | |
| Change in fair value | | | | | 2,391,862 | | | |
| Reclassification to stockholders’ equity | | | | | (15,118,584) | | | |
| Balance at December 31, 2015 | | | | $ | — | | | |
|
| | | September 30, 2015 | | | December 31, 2015 | |
Risk-free interest rate | | | 1.4% | | | 1.2% | |
Derived service period | | | 5 years | | | 3 years | |
Expected volatility | | | 60% | | | 55% | |
Annual dividend yield | | | 0% | | | 0% | |
Fair value of common stock | | | $7.475 per share | | | $8.42 per share | |
| | | September 30, 2015 | | | December 31, 2015 | | ||||||||
Laboratory equipment | | | | $ | 10,936,364 | | | | | $ | 10,841,019 | | | ||
Leasehold improvements | | | | | 9,889,521 | | | | | | 9,927,614 | | | ||
Computer software and hardware | | | | | 402,075 | | | | | | 419,684 | | | ||
Construction in process | | | | | 175,425 | | | | | | 484,985 | | | ||
| | | | | 21,403,385 | | | | | | 21,673,302 | | | ||
Less: accumulated depreciation and amortization | | | | | (3,643,447) | | | | | | (4,169,282) | | | ||
| | | | $ | 17,759,938 | | | | | $ | 17,504,020 | | | ||
|
| | | September 30, 2015 | | | December 31, 2015 | | ||||||||
Compensation | | | | $ | 2,321,508 | | | | | $ | 2,535,850 | | | ||
Research and development | | | | | 951,759 | | | | | | 2,342,960 | | | ||
Interest payable | | | | | 806,475 | | | | | | 671,532 | | | ||
Deferred offering costs | | | | | 657,892 | | | | | | 1,434,973 | | | ||
Professional fees | | | | | 594,572 | | | | | | 938,426 | | | ||
Director fees | | | | | 414,421 | | | | | | 464,422 | | | ||
Other accrued expenses | | | | | 178,021 | | | | | | 216,754 | | | ||
| | | | $ | 5,924,648 | | | | | $ | 8,604,917 | | | ||
|
| | | December 31, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Research and development | | | | $ | 84,275 | | | | | $ | 1,356,408 | | | ||
General and administrative | | | | | 61,399 | | | | | | 1,133,626 | | | ||
| | | | $ | 145,674 | | | | | $ | 2,490,034 | | | ||
|
| | | December 31, | | |||||||||||
| | | 2014 | | | 2015 | | ||||||||
Equity-classified compensation | | | | $ | 2,231 | | | | | $ | 98,172 | | | ||
Liability-classified compensation | | | | | 143,443 | | | | | | 2,391,862 | | | ||
| | | | $ | 145,674 | | | | | $ | 2,490,034 | | | ||
|
| | | Number of PSUs | | | Base Price Per PSU | | ||||||||
Balance at October 1, 2015 | | | | | 2,370,280 | | | | | $ | 1.00 | | | ||
Forfeitures | | | | | (9,400) | | | | | | 1.00 | | | ||
Exchanged for restricted stock units | | | | | (1,500,000) | | | | | | 1.00 | | | ||
Balance at December 31, 2015 | | | | | 860,880 | | | | | $ | 1.84 | | | ||
|
| | | Number of RSUs | | | Grant Date Fair Value | | ||||||||
Balance at October 1, 2015 | | | | | — | | | | | $ | — | | | ||
Granted | | | | | 2,328,425 | | | | | | 8.42 | | | ||
Issued in connection with PSU exchange | | | | | 1,350,000 | | | | | | 8.42 | | | ||
Balance at December 31, 2015 | | | | | 3,678,425 | | | | | $ | 8.42 | | | ||
|
Item | | | Amount to be paid | | ||||
SEC registration fee | | | | $ | 11,580.50 | | | |
FINRA filing fee | | | | | 17,750 | | | |
NASDAQ listing fee | | | | | * | | | |
Printing and engraving expenses | | | | | * | | | |
Legal fees and expenses | | | | | * | | | |
Accounting fees and expenses | | | | | * | | | |
Transfer agent fees and expenses | | | | | * | | | |
Miscellaneous expenses | | | | | * | | | |
Total | | | | $ | * | | | |
|
| | | | ONCOBIOLOGICS, INC. | | |||
| | | | By: | | | /s/ Pankaj Mohan | |
| | | | | | | Pankaj Mohan, Ph.D. | |
| | | | | | | Chairman, President and Chief Executive Officer | |
| Signature | | | Title | | | Date | |
| /s/ Pankaj Mohan Pankaj Mohan, Ph.D. | | | Chairman, President and Chief Executive Officer (Principal Executive Officer) | | | | |
| /s/ Lawrence A. Kenyon Lawrence A. Kenyon | | | Chief Financial Officer (Principal Accounting and Financial Officer) | | | | |
| Todd C. Brady, M.D., Ph.D. | | | Director | | | | |
| Scott Canute | | | Director | | | | |
| Albert D. Dyrness | | | Director | | | | |
| Donald J. Griffith | | | Director | | | | |
| Kurt J. Hilzinger | | | Director | | | | |
| Robin Smith Hoke | | | Director | | | |
| *By: | | | /s/ Pankaj Mohan Pankaj Mohan, Ph.D. Attorney-in-fact | | | | |
Exhibit Number | | | Description | |
1.1+ | | | Form of Underwriting Agreement. | |
| | Certificate of Incorporation of Oncobiologics, Inc., as presently in effect. | | |
3.2+ | | | Certificate of Amendment of Certificate of Incorporation, dated , . | |
| | Bylaws of Oncobiologics, Inc., as presently in effect. | | |
| | Form of Amended and Restated Certificate of Incorporation of Oncobiologics, Inc., to be in effect upon the closing of this offering. | | |
| | Form of Amended and Restated Bylaws of Oncobiologics, Inc., to be in effect upon the closing of this offering. | | |
5.1+ | | | Opinion of Cooley LLP. | |
| | Investors’ Rights Agreement by and among Oncobiologics, Inc. and certain of its stockholders, dated March 10, 2014, as amended. | | |
| | 2011 Stock Incentive Plan. | | |
| | 2015 Equity Incentive Plan. | | |
| | Forms of agreements and award grant notices for 2015 Equity Incentive Plan. | | |
| | 2016 Employee Stock Purchase Plan. | | |
| | Employment Agreement between Oncobiologics, Inc. and Pankaj Mohan, Ph.D., dated January 1, 2011. | | |
| | Offer Letter between Oncobiologics, Inc. and Lawrence A. Kenyon, dated September 3, 2015. | | |
| | Offer Letter between Oncobiologics, Inc. and Elizabeth A. Yamashita, dated March 27, 2014. | | |
| | Offer Letter between Oncobiologics, Inc. and Kenneth Bahrt, M.D., dated June 14, 2015. | | |
| | Letter between Oncobiologics, Inc. and Todd Brady, dated September 12, 2014. | | |
| | Letter between Oncobiologics, Inc. and Scott Canute, dated October 10, 2011. | | |
| | Form of Indemnity Agreement, by and between Oncobiologics, Inc. and each of its directors and executive officers. | | |
10.13†* | | | Research License Agreement by and between Oncobiologics, Inc. and Selexis SA, effective as of October 3, 2011, as amended by Amendment No. 1 dated as of October 9, 2014. | |
10.14†* | | | ONS-3010 Commercial License Agreement by and between Oncobiologics, Inc. and Selexis SA effective as of April 11, 2013, as amended effective as of May 21, 2014. | |
10.15†* | | | ONS-1045 Commercial License Agreement by and between Oncobiologics, Inc. and Selexis SA effective as of April 11, 2013, as amended effective as of May 21, 2014. | |
10.16†* | | | ONS-1050 Commercial License Agreement by and between Oncobiologics, Inc. and Selexis SA effective as of April 11, 2013, as amended effective as of May 21, 2014. | |
| | Joint Participation Agreement by and between Oncobiologics, Inc. and Zhejiang Huahai Pharmaceutical Co., Ltd., effective as of May 6, 2013, as amended by that Amendment No. 1 and Mutual Termination Agreement re: Joint Participation Agreement, dated December 23, 2014. | | |
| | Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of March 18, 2011. | | |
| | First Amendment to Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of December 2013. | | |
| | Second Amendment to Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of July 18, 2014. | | |
| | Third Amendment to Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of January 16, 2015. | | |
| | Fourth Amendment to Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of February 9, 2015. | | |
| | Fifth Amendment to Lease Agreement by and between Oncobiologics, Inc. and Cedar Brook 7 Corporate Center, LP, dated as of September 26, 2015. | | |
| | Lease Agreement by and between Cedar Brook East Corporate Center, LP and Oncobiologics, Inc., dated as of August 31, 2015. | |
Exhibit Number | | | Description | |
23.1 | | | Consent of independent registered public accounting firm. | |
23.2+ | | | Consent of Cooley LLP (included in Exhibit 5.1). | |
| | Power of Attorney | |