UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-28006 MICROCIDE PHARMACEUTICALS, INC. (Exact name of registrant as specified in its charter) Delaware 94-3186021 (State or other jurisdiction (I.R.S. Employer of incorporation of organization) Identification Number) 850 Maude Avenue, Mountain View, California 94043 (Address of principal executive offices) (ZIP Code) Registrant's telephone number, including area code: 650-428-1550 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___ Number of shares of Common Stock, no par value, outstanding as of July 31, 2000: 11,343,381 MICROCIDE PHARMACEUTICALS, INC. INDEX FOR FORM 10-Q JUNE 30, 2000 PAGE NUMBER PART I FINANCIAL INFORMATION Item 1. Financial Statements and Notes Condensed Balance Sheets as of June 30, 2000 3 and December 31, 1999 Condensed Statements of Operations for the three and six months ended June 30, 2000 and June 30, 1999 4 Condensed Statements of Cash Flows for the six months ended June 30, 2000 and June 30, 1999 5 Notes to Condensed Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3. Quantitative and Qualitative Disclosures about Market Risk 12 PART II OTHER INFORMATION 13 Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults in Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K SIGNATURES 15 2 MICROCIDE PHARMACEUTICALS, INC. CONDENSED BALANCE SHEETS (in thousands) June 30, December 31, 2000 1999 ----------- ------------ (Unaudited) (Note) ASSETS Current assets: Cash and cash equivalents $ 4,209 $ 5,660 Short-term investments 14,914 19,208 Receivables, prepaid expenses and other current assets 1,071 443 -------- -------- Total current assets 20,194 25,311 Property and equipment, net 6,711 7,592 Other assets 921 928 -------- -------- Total assets $ 27,826 $ 33,831 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 478 $ 358 Accrued compensation 976 984 Current portion of notes payable 1,522 1,440 Deferred revenue 1,043 387 Other accrued liabilities 718 695 -------- -------- Total current liabilities 4,737 3,864 Long-term portion of notes payable 1,127 1,907 Accrued rent 226 257 Stockholders' equity: Common stock 68,010 67,112 Accumulated deficit (46,214) (39,243) Accumulated other comprehensive loss (60) (66) -------- -------- Total stockholders' equity 21,736 27,803 -------- -------- Total liabilities and stockholders' equity $ 27,826 $ 33,831 ======== ======== <FN> NOTE: The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See Notes to Condensed Financial Statements. </FN> 3 MICROCIDE PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, ------------------------------- ------------------------------ 2000 1999 2000 1999 -------------- ------------- ------------- ------------- Revenues: Research revenues $ 1,521 $ 1,545 $ 2,654 $ 3,938 Other revenues -- -- -- 299 -------- -------- -------- -------- Total revenues 1,521 1,545 2,654 4,237 Operating expenses: Research and development 4,112 4,457 8,169 9,205 General and administrative 1,083 979 1,925 1,984 -------- -------- -------- -------- Total operating expenses 5,195 5,436 10,094 11,189 -------- -------- -------- -------- Loss from operations (3,674) (3,891) (7,440) (6,952) Interest and other income, net 223 248 469 587 -------- -------- -------- -------- Net loss $ (3,451) $ (3,643) $ (6,971) $ (6,365) ======== ======== ======== ======== Basic and diluted net loss per share $ (0.31) $ (0.33) $ (0.62) $ (0.58) ======== ======== ======== ======== Shares used in computing basic and diluted net loss per share 11,309 11,078 11,261 11,052 <FN> See Notes to Condensed Financial Statements. </FN> 4 MICROCIDE PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) Increase (decrease) in cash and cash equivalents (unaudited) Six Months Ended June 30, --------------------------------------- 2000 1999 ---------------- --------------- Cash flows used in operating activities: Net loss $ (6,971) $ (6,365) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,260 1,396 Amortization of deferred compensation -- 251 Accrued rent (31) 102 Changes in assets and liabilities: Receivables, prepaid expenses and other current assets (628) (1,831) Other assets 7 42 Accounts payable 120 (482) Accrued compensation and other accrued liabilities 15 (71) Deferred revenue 656 37 -------- -------- Net cash used in operating activities (5,572) (6,921) -------- -------- Cash flows used in investing activities: Purchase of short-term investments (6,700) (16,212) Maturities of short-term investments 11,000 25,907 Capital expenditures (379) (403) -------- -------- Net cash provided by investing activities 3,921 9,292 -------- -------- Cash flows from financing activities: Principal payments on notes payable (698) (513) Net proceeds from issuance of common stock 898 91 -------- -------- Net cash provided by (used in) financing activities 200 (422) -------- -------- Net increase (decrease) in cash and cash equivalents (1,451) 1,949 Cash and cash equivalents, beginning of period 5,660 7,794 -------- -------- Cash and cash equivalents, end of period $ 4,209 $ 9,743 ======== ======== Supplemental disclosure of cash flow information: Interest paid $ 143 $ 189 ======== ======== <FN> See Notes to Condensed Financial Statements. </FN> 5 MICROCIDE PHARMACEUTICALS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 2000 (Unaudited) 1. Summary of Significant Accounting Policies Organization and Basis of Presentation Microcide Pharmaceuticals, Inc. (the "Company") is a biopharmaceutical company whose mission is to discover, develop and commercialize novel antimicrobials for the improved treatment of serious bacterial, fungal and viral infections. The Company's discovery and development programs address the growing problem of bacterial drug resistance and the need for improved antifungal and antiviral agents through two principal themes: (i) Targeted Antibiotics, which focuses on developing novel antibiotics and antibiotic potentiators to directly address existing bacterial and fungal resistance problems, and (ii) Targeted Genomics, which utilizes bacterial, fungal and viral genetics to discover new classes of antimicrobials and other novel treatments for infectious diseases. The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the interim periods shown herein are not necessarily indicative of operating results for the entire year. This unaudited financial data should be read in conjunction with the financial statements and footnotes contained in the Company's annual report on Form 10-K for the year ended December 31, 1999. 2. Net Loss per Share Basic earnings (loss) per share is calculated using the weighted average number of common shares outstanding. Because the Company is in a net loss position, diluted earnings per share is calculated using the weighted average number of common shares outstanding and excludes the effects of options which are antidilutive. Had the Company been in a net income position, diluted earnings per share would have included the shares used in the computation of basic net loss per share as well as an additional 1,706,304 and 1,513,148 shares for 2000 and 1999, respectively, related to outstanding options not included above (as determined using the treasury stock method at the estimated average market value). 3. Comprehensive Loss Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes certain changes in equity that are excluded from net income (loss). Specifically, unrealized holding gains and losses on our available-for-sale securities, which were reported separately in stockholders' equity, is included in accumulated other comprehensive income (loss). Comprehensive income (loss) for years ended December 31, 1999, 1998 and 1997 has been reflected in the Statement of Stockholders' Equity. 6 4. Revenue Recognition In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial Statements." SAB 101 summarizes certain areas of the staff's views in applying generally accepted accounting principles to revenue recognition. SAB 101 is required to be adopted by December 31, 2000. The Company is in the process of assessing the impact of SAB 101 and does not expect that the implementation of SAB 101 will have a material effect. 5. Subsequent Events In August 2000, Iconix Pharmaceuticals, Inc. ("Iconix"), a biotechnology company in which Microcide held approximately a 32% interest, announced that it had entered into a strategic relationship with Motorola's BioChip Systems unit to enable the creation of a next-generation chemical genomic database. The partnership includes a multiyear agreement under which Iconix will validate the beta release of Motorola's new CodeLink(TM) Expression System and then become one of the first high volume users of the system. As part of the relationship, Motorola has made an equity investment in Iconix and received rights to distribute the resulting Iconix ChemExpress(TM) product, a large-scale database that connects gene expression profiles, chemicals and biological activities within a flexible informatics system, as a part of future BioChip System solutions. This investment reduced Microcide's holdings in Iconix to approximately 29%. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview As part of the Company's strategy to enhance its research and development capabilities and to fund, in part, its capital requirements, Microcide entered into collaborative agreements with three major pharmaceutical companies. Pursuant to the Company's collaborative agreements with Johnson & Johnson ("J&J"), Daiichi and Pfizer (the "Collaborative Agreements"), the Company has received license fees, milestone payments and research support payments, and can potentially receive additional research support payments, milestone payments and royalty payments. License payments are typically nonrefundable up-front payments for licenses to develop, manufacture and market products, if any, that are developed as a result of the collaboration. Research support payments are typically contractually obligated payments to fund research and development over the term of the collaboration. Milestone payments are payments contingent upon the achievement of specified milestones, such as selection of candidates for drug development, the commencement of clinical trials or receipt of regulatory approvals. If drugs are successfully developed and commercialized as a result of the Collaborative Agreements, the Company will receive royalty payments based upon the net sales of such drugs. In addition, the Company has derived other revenues principally through the sale of molecular diversity to other pharmaceutical and biotechnology companies for use in their research programs, and through short-term contract research. Through June 30, 2000, the Company had received in the aggregate $52.0 million in license fees, milestone payments and research support payments under the Collaborative Agreements. The funded research portion of the Collaborative Agreements with Daiichi and J&J concluded at the end of the first and fourth quarters of 1999, respectively. In November 1999, J&J commenced Phase I clinical trials of the cephalosporin compound developed during the Microcide-J&J Gram-positive research collaboration. In February 2000, the November 1995 Daiichi agreement was amended to focus on advancing a particular class of efflux pump inhibitor compounds for pre-clinical development. The March 1996 Pfizer agreement was amended effective March 2000, and funding for the fifth year is at a reduced amount. In May 2000, the Company and Daiichi signed a new joint research agreement for a one year term whereby Daiichi will provide research support payments for discovering and developing inhibitors that will overcome the effect of efflux pumps in Pseudomonas aeruginosa. The Company also signed an agreement with Coelacanth Corporation for joint research, in which Coelacanth will provide novel libraries of compounds for screening in a broad range of Microcide assays directed at the identification of innovative antiviral, antifungal and antibacterial therapeutic agents. The agreement gives the Company worldwide rights to develop compounds that emerge from the collaboration, while Coelacanth will receive development milestone payments and royalties on product sales. Assuming that the Daiichi and Pfizer Agreements are not terminated prior to their scheduled expiration dates, the Company will be entitled to receive an additional $2.9 million in research support payments. In the event that the Company and its collaborators achieve the specified research and product development milestones, it will be entitled to receive milestone payments as follows: up to $16.5 million for the first product and up to $15.5 million for each additional product developed pursuant to the J&J Agreements, up to $13.0 million for each product developed pursuant to the Daiichi Agreements and up to $32.5 million for each product developed pursuant to the Pfizer Agreements. The Pfizer Animal Health collaboration provides for a lower level of milestone payments than those applicable to human health applications. Receipt of these milestone payments is contingent upon achieving specified research and product development milestones, a number of which may not be achieved for several years, if ever. While the Collaborative Agreements provide for royalty payments on future products that may result, the Company does not expect to receive royalties based upon net sales of drugs for a significant number of years, if at all. The Company has incurred substantial losses in the past and expects to continue to incur operating losses over the next several years. Quarterly results of operations are subject to significant fluctuations based on the timing and amount of certain revenues earned under the Collaborative Agreements. Fluctuations in the Company's operating results 8 and market conditions for biotechnology stocks in general could have a significant impact on the volatility of the market price for the common stock and on the future price of the common stock. The stock market has experienced significant price and volume fluctuations that are often unrelated to the operating performance of particular companies. The market price of the common stock, like that of the securities of many other biopharmaceutical companies, has been and is likely to continue to be highly volatile. The biotechnology industry is highly competitive, and new developments are occurring at an increasing pace. Competition from biotechnology and pharmaceutical companies, joint ventures, academic and other research institutions and others is intense and is expected to increase. Many competitors have substantially greater financial, technical and personnel resources than the Company has. Although the Company believes that it has identified new and distinct approaches to drug discovery, there are other companies with drug discovery programs, at least some of the objectives of which are the same as or similar to the Company's. Competing technologies may be developed which would render the Company's technologies obsolete or non-competitive. This Form 10-Q contains forward-looking statements based upon current expectations, including statements with regard to the potential receipt of additional research support payments, milestone payments and royalties from the Company's collaborative partners, the successful development and commercialization of drugs and the receipt of royalties thereon or sales revenue therefrom, and the period of time for which the Company's existing financial resources, interest income and future payments under Collaborative Agreements will be sufficient to enable the Company to maintain current and planned operations, the continuation of the Company's Collaborative Agreements with its strategic partners, the potential impact of any latent Year 2000 issues and the market risk of the Company's investments. Such forward-looking statements involve risks and uncertainties, including, without limitation, the following. There is no assurance that any compounds discovered will successfully proceed through pre-clinical development and clinical trials, obtain requisite regulatory approvals for marketing or result in a commercially useful product. There is no assurance that the Company will successfully continue existing corporate collaborations. There is no assurance that any development candidates will be identified, that any selected development candidates will proceed through pre-clinical trials or will prove safe and effective for treatment of humans or animals in clinical trials. There is no assurance that the identification, selection, manufacture, pre-clinical testing, and clinical testing of development candidates will not take substantially longer or not be substantially more expensive than contemplated by the Company. There is no assurance that the Company will be able to obtain on a timely basis government regulatory clearance required for clinical testing, manufacturing, and marketing of its products. There is no assurance that any latent Year 2000 issues will not have a material impact on the Company. For a discussion of other risks and uncertainties affecting the Company's business, see the Company's annual report on Form 10-K for the year ended December 31, 1999. The Company's actual results and timing of certain events may differ significantly from the results discussed in such forward-looking statements as a result of these or other factors. Results of Operations Three Months Ended June 30, 2000 and June 30, 1999 Revenues. Total revenues for the second quarter of 2000 were $1.5 million, the same as in the second quarter of 1999. Revenues were largely derived from the corporate collaborations with Pfizer and Daiichi. The decline in comparative revenues from J&J and Pfizer is offset by an increase in research support revenues from the new joint research agreement with Daiichi and contract research revenues from other companies funding exploratory research. Research and Development Expenses. Research and development expenses for the second quarter decreased from $4.5 million in 1999 to $4.1 million in 2000. The decrease was due primarily to lower compensation expenses resulting from a reduction in headcount and lower spending for outside services. Research and development expenses are not expected to materially change in the third quarter. General and Administrative Expenses. General and administrative expenses for the second quarter were $1.1 million, approximately the same as the first quarter of 1999. 9 Interest Income, net. Interest income for the second quarter decreased from $365,000 in 1999 to $288,000 in 2000, primarily due to a decrease in average cash balances. Interest expense for the second quarter of 2000 decreased from $117,000 in the second quarter of 1999 to $66,000 in the second quarter of 2000 primarily due to the declining balance on an equipment financing loan. Six Months Ended June 30, 2000 and June 30, 1999 Revenues. Total revenues for the first half of 2000 were $2.7 million, a decrease from $4.2 million in revenues recognized in the first half of 1999. Revenues were largely derived from the corporate collaborations with Pfizer and Daiichi. The decline in comparative revenues from Daiichi, J&J and Pfizer is offset by an increase in research support revenues from the new joint research agreement with Daiichi and contract research revenues from other companies funding exploratory research. Research and Development Expenses. Research and development expenses for the first half of 2000 decreased from $9.2 million in 1999 to $8.2 million in 2000. The decrease was due primarily to lower compensation expenses resulting from a reduction in headcount, lower research support expenses associated with the Company's antiviral discovery program with Iconix and lower spending for research supplies and outside services. General and Administrative Expenses. General and administrative expenses for the first half of 2000 decreased from $2.0 million in 1999 to $1.9 million in 2000. The decrease was due primarily to lower compensation expenses resulting from a reduction in headcount. Interest Income, net. Interest income for the first half of 2000 decreased from $770,000 in 1999 to $610,000 in 2000, primarily due to a decrease in average cash balances. Interest expense for the first half of 2000 decreased from $188,000 in 1999 to $143,000 in 2000 primarily due to the declining balance on an equipment financing loan. Liquidity and Capital Resources The Company has financed its operations since inception primarily through the sale of equity securities, through funds provided under the Collaborative Agreements, through other revenues principally consisting of sales of molecular diversity and contract research and through equipment financing. As of June 30, 2000, the Company had received $65.7 million from the sale of equity and $52.0 million in cash from license and milestone fees and research support payments under the Collaborative Agreements. Cash, cash equivalents and short-term investments at June 30, 2000 were $19.1 million compared to $24.9 million at December 31, 1999. The decrease during the first half of 2000 was due primarily to cash used by operations of $5.6 million, $379,000 in capital expenditures and $698,000 utilized in financing activities, mainly principal payments on the Company's equipment financing arrangement. This was partially offset by $898,000 in net proceeds from the issuance of common stock from the exercise of stock options. The Company expects that its existing capital resources, interest income and future payments due under the Collaborative Agreements will enable the Company to maintain current and planned operations at least through 2001. In the event that the Company requires additional funding at any point in the future, the Company will seek to raise such additional funding from other sources, including other collaborative arrangements, and through public or private financings, including sales of equity or debt securities. Any such collaborative or licensing arrangement could result in limitations on the Company's ability to control the commercialization of resulting drugs, if any, and could limit profits, if any, therefrom. Any such equity financing could result in dilution to the Company's then-existing stockholders. There can be no assurance that additional funds will be available on favorable terms or at all, or that such funds, if raised, would be sufficient to permit the Company to continue to conduct its operations. If adequate funds are not available, the Company may be required to curtail significantly or eliminate one or more of its research programs. 10 Impact of Year 2000 In prior periods, the Company has discussed its plans and status relating to potential computer system malfunctions relating to the "Year 2000" issue, whereby computer systems would not be able to distinguish between dates in the 20th century versus the 21st century. In late 1999, the Company completed its assessment, repair, upgrade and replacement of its computer systems and research equipment, as well as an analysis of the readiness of third parties with whom the Company interacts. As a result of its planning and remediation efforts, the Company experienced no significant disruptions in its information technology and non-information technology systems and believes that those systems successfully responded to the Year 2000 date change. As of June 30, 2000, the Company is not aware of any material problems resulting from Year 2000 issues, either with its computer systems or research equipment with embedded chips or software. The Company will continue to monitor its information technology systems and those of its suppliers and vendors throughout the Year 2000 to ensure that any latent Year 2000 matters that may arise are addressed promptly. Management does not believe that any latent Year 2000 changes will have a material adverse impact on the Company's financial condition or results of operations. To date, costs related to the Year 2000 issues have not been material. 11 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The following discussion about the Company's market risk disclosure involves forward-looking statements. The Company is exposed to market risk related mainly to changes in interest rates. The Company does not invest in derivative financial instruments. Interest Rate Sensitivity The fair value of the Company's investments in marketable securities at June 30, 2000 was $17.6 million. The Company's investment policy is to manage its marketable securities portfolio to preserve principal and liquidity while maximizing the return on the investment portfolio. The Company's marketable securities portfolio is primarily invested in corporate debt securities with an average maturity of under one year and a minimum investment grade rating of A or A-1 or better to minimize credit risk. Although changes in interest rates may affect the fair value of the marketable securities portfolio and cause unrealized gains or losses, such gains or losses would not be realized unless the investments are sold prior to maturity. Foreign Currency Exchange Risk At this time, the Company does not participate in any foreign currency exchange activities; therefore, is not subject to risk of gains or losses for changes in foreign exchange rates. 12 PART II OTHER INFORMATION Item 1. Legal Proceedings None. Item 2. Changes in Securities None. Item 3. Defaults in Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders (a) The Annual Meeting of Stockholders of Microcide Pharmaceuticals, Inc. was held on June 15, 2000. (b) The following Class I Directors were elected to serve for a term of three years to expire at the Company's 2003 Annual Meeting of Stockholders: Name Position Term Expires ----------------------- ------------------- ------------ Daniel L. Kisner, M.D. Class I Director 2003 David Schnell, M.D. Class I Director 2003 Mark B. Skaletsky Class I Director 2003 The following Class II and III Directors continue to serve their respective terms which expire at the Company's Annual Meeting of Stockholders in the year as noted: Name Position Term Expires ---------------------------- -------------------------- ------------ Keith A. Bostian, Ph.D. Class III Director 2002 Hugh Y. Rienhoff, Jr., M.D. Class II Director 2001 James E. Rurka Class III Director 2002 John P. Walker Chairman, Class II Director 2001 (c) The matters voted upon at the meeting and the voting results were as follows: (i) The election of three Class I Directors for a term of three years: Name For Against Not Voted --------------------- ----------- ----------- --------- Daniel L. Kisner, M.D. 8,828,240 394,849 2,070,178 David Schnell, M.D. 8,826,696 396,393 2,070,178 Mark B. Skaletsky 8,821,009 402,080 2,070,178 (ii) Approval of amendment to the Company's 1993 Amended Incentive Stock Plan, increasing the number of shares of Common Stock reserved for issuance from 2,580,000 to 3,030,000: For Against Abstain Not Voted -------------- ------------- ------------ --------- 8,540,631 671,519 10,939 2,070,178 13 (iii)Ratification of the appointment of Ernst & Young LLP as independent auditors for the fiscal year ending December 31, 2000: For Against Abstain Not Voted -------------- ------------- ------------ --------- 9,205,342 8,187 9,560 2,070,178 Item 5. Other Information None. Item 6. Exhibits and Reports on Form 8-K (a) The following exhibits have been filed with this report: 10.31 Research Agreement by and between the Registrant and Daiichi Pharmaceutical Co., Ltd. dated May 8, 2000. 27.1 Financial Data Schedule (b) Reports on Form 8-K. No reports on Form 8-K were filed during the quarter ended June 30, 2000. 14 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: August 14, 2000 MICROCIDE PHARMACEUTICALS, INC. ------------------------------- (Registrant) /s/ James E. Rurka ------------------------------------------------ James E. Rurka President, Chief Executive Officer and Director, (principal executive officer) /s/ Donald D. Huffman ------------------------------------------------ Donald D. Huffman Vice President, Finance and Corporate Development, Chief Financial Officer (principal financial and accounting officer) 15