PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Balance Sheets
(unaudited)
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| December 31, | ||||
(in thousands, except per share amounts) | 2015 |
| 2014 | ||
Assets |
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Current assets |
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Cash and cash equivalents | $ | 33,629 |
| $ | 36,449 |
Investments |
| 48,641 |
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| 64,899 |
Accounts receivable |
| 5,245 |
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| 3,406 |
Inventory |
| 10,955 |
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| 11,335 |
Prepaid expenses and other current assets |
| 12,071 |
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| 1,671 |
Total current assets |
| 110,541 |
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| 117,760 |
Property and equipment, net |
| 8,548 |
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| 6,601 |
Long-term restricted cash |
| 4,500 |
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| — |
Other long-term assets |
| 7,518 |
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| 29 |
Total assets | $ | 131,107 |
| $ | 124,390 |
Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable | $ | 4,749 |
| $ | 5,608 |
Accrued expenses |
| 15,551 |
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| 11,441 |
Deferred service revenue, current |
| 6,815 |
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| 6,121 |
Deferred contractual revenue, current |
| 10,822 |
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| 6,785 |
Other liabilities, current |
| 241 |
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| 1,534 |
Total current liabilities |
| 38,178 |
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| 31,489 |
Deferred service revenue, non-current |
| 1,143 |
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| 1,129 |
Deferred contractual revenue, non-current |
| 1,312 |
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| 19,735 |
Other liabilities, non-current |
| 1,386 |
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| 2,153 |
Notes payable |
| 14,948 |
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| 13,991 |
Financing derivative |
| 600 |
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| 944 |
Total liabilities |
| 57,567 |
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| 69,441 |
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Commitments and contingencies |
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Stockholders’ equity |
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Preferred Stock, $0.001 par value: |
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Authorized 50,000 shares; No shares issued or outstanding |
| — |
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| — |
Common Stock, $0.001 par value: |
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Authorized 1,000,000 shares; Issued and outstanding 79,983 and 73,927 shares at December 31, 2015 and 2014, respectively |
| 80 |
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| 74 |
Additional paid-in-capital |
| 786,636 |
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| 736,339 |
Accumulated other comprehensive income (loss) |
| (7) |
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| 9 |
Accumulated deficit |
| (713,169) |
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| (681,473) |
Total stockholders’ equity |
| 73,540 |
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| 54,949 |
Total liabilities and stockholders’ equity | $ | 131,107 |
| $ | 124,390 |
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
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| Years ended December 31, | |||||||
(in thousands, except per share amounts) | 2015 |
| 2014 |
| 2013 | |||
Revenue: |
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Product revenue | $ | 37,502 |
| $ | 35,299 |
| $ | 20,039 |
Service and other revenue |
| 10,896 |
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| 8,511 |
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| 6,446 |
Contractual revenue |
| 44,384 |
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| 16,784 |
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| 1,696 |
Total revenue |
| 92,782 |
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| 60,594 |
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| 28,181 |
Cost of Revenue: |
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Cost of product revenue |
| 30,704 |
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| 29,626 |
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| 15,706 |
Cost of service and other revenue |
| 8,628 |
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| 7,566 |
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| 6,056 |
Total cost of revenue |
| 39,332 |
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| 37,192 |
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| 21,762 |
Gross profit |
| 53,450 |
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| 23,402 |
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| 6,419 |
Operating Expense: |
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Research and development |
| 60,440 |
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| 48,230 |
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| 45,217 |
Sales, general and administrative |
| 45,187 |
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| 38,026 |
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| 38,745 |
Gain on lease amendments |
| (23,043) |
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| — |
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| — |
Total operating expense |
| 82,584 |
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| 86,256 |
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| 83,962 |
Operating loss |
| (29,134) |
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| (62,854) |
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| (77,543) |
Interest expense |
| (2,926) |
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| (2,828) |
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| (2,478) |
Other income (expense), net |
| 364 |
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| (478) |
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| 728 |
Net loss |
| (31,696) |
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| (66,160) |
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| (79,293) |
Other comprehensive loss: |
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Unrealized loss on investments |
| (16) |
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| (5) |
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| (16) |
Comprehensive loss | $ | (31,712) |
| $ | (66,165) |
| $ | (79,309) |
Net loss per share: |
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Basic and diluted net loss per share | $ | (0.42) |
| $ | (0.94) |
| $ | (1.26) |
Shares used in computing basic and diluted net loss per share |
| 75,614 |
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| 70,475 |
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| 62,784 |
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Statements of Cash Flows
(unaudited)
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| Years Ended December 31, | |||||||
(in thousands) | 2015 |
| 2014 |
| 2013 | |||
Cash flows from operating activities |
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Net loss | $ | (31,696) |
| $ | (66,160) |
| $ | (79,293) |
Adjustments to reconcile net loss to net cash used in operating activities |
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Depreciation and amortization |
| 3,677 |
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| 4,221 |
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| 5,648 |
Amortization of debt discount and financing costs |
| 957 |
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| 793 |
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| 595 |
Stock-based compensation |
| 13,840 |
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| 9,943 |
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| 9,905 |
Non-cash portion of gain on lease amendments |
| (3,043) |
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| — |
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| — |
Other items |
| (230) |
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| 507 |
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| (352) |
Changes in assets and liabilities |
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Accounts receivable |
| (1,738) |
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| (660) |
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| 76 |
Inventory |
| (2,466) |
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| (1,285) |
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| (60) |
Prepaid expenses and other assets |
| (17,889) |
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| (224) |
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| 840 |
Accounts payable |
| (716) |
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| 3,891 |
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| (1,271) |
Accrued expenses |
| 5,732 |
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| 3,536 |
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| 1,327 |
Deferred service revenue |
| 708 |
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| 2,686 |
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| 386 |
Deferred contractual revenue |
| (14,386) |
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| (6,784) |
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| 33,304 |
Other liabilities |
| (639) |
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| (1,932) |
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| (938) |
Net cash used in operating activities |
| (47,889) |
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| (51,468) |
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| (29,833) |
Cash flows from investing activities |
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Purchase of property and equipment |
| (3,009) |
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| (1,609) |
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| (909) |
Proceeds from disposal of property and equipment |
| 36 |
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| — |
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Long-term restricted cash |
| (4,500) |
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| — |
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| — |
Purchase of investments |
| (84,579) |
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| (126,413) |
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| (201,547) |
Sales of investments |
| 8,317 |
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| — |
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| 100 |
Maturities of investments |
| 92,341 |
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| 147,586 |
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| 169,239 |
Net cash provided by (used in) investing activities |
| 8,606 |
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| 19,564 |
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| (33,117) |
Cash flows from financing activities |
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Proceeds from issuance of common stock from equity plans |
| 7,363 |
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| 3,968 |
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| 3,079 |
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs |
| 29,100 |
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| 38,023 |
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| 19,927 |
Proceeds from issuance of debt agreement, net of issuance costs |
| — |
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| — |
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| 19,766 |
Net cash provided by financing activities |
| 36,463 |
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| 41,991 |
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| 42,772 |
Net increase (decrease) in cash and cash equivalents |
| (2,820) |
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| 10,087 |
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| (20,178) |
Cash and cash equivalents at beginning of period |
| 36,449 |
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| 26,362 |
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| 46,540 |
Cash and cash equivalents at end of period | $ | 33,629 |
| $ | 36,449 |
| $ | 26,362 |
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Supplemental disclosure of cash flow information |
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Interest paid | $ | 1,794 |
| $ | 1,794 |
| $ | 1,165 |
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Supplemental disclosure of non-cash investing and financing activities |
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Inventory transferred to (from) property and equipment |
| 2,846 |
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| — |
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| (558) |