Delaware | 001-34705 | 71-0872999 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statement and Exhibits |
CODEXIS, INC. | ||
By: | /s/ Gordon Sangster | |
Name: | Gordon Sangster | |
Title: | Senior Vice President and Chief Financial Officer |
• | In July, Codexis granted GlaxoSmithKline (GSK) a license to use its proprietary CodeEvolver® protein engineering platform technology in the field of human healthcare, as summarized in the Form 8-K filed by Codexis on July 14, 2014. Codexis received $6 million in upfront fees and anticipates receiving an additional $5 million by the end of 2014, subject to milestone completion. There is also the potential for Codexis to receive approximately $14 million in further milestone payments over the next two years. |
• | The Company received three significant biocatalyst orders from major pharmaceutical accounts, two of which are follow-on orders from an existing customer. The third is for a new biocatalyst aimed at supplanting the customer’s traditional, non-biocatalytic method. |
• | The Company added another major food ingredient client and completed the delivery of the first substantial shipment of enzymes to an existing major food ingredients customer. |
• | Biocatalyst product revenues, which consist primarily of sales of biocatalyst intermediates, APIs and Codex® Biocatalyst Panels and Kits, were $2.6 million, an increase of 138% compared with $1.1 million a year ago. This was primarily attributable to an increase in sales of enzymes for food-related products. |
• | Biocatalyst research and development revenues, which include license, technology access and exclusivity fees, FTE payments, milestones, royalties, and optimization and screening fees, totaled $3.4 million, an increase of 66%, compared with $2.0 million in the third quarter of 2013. |
• | Revenue sharing arrangement sales were $1.5 million, an increase of 84%, compared to the third quarter of 2013 and relate to the license to Exela PharmSci, Inc. for the anticoagulant drug argatroban. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Biocatalyst products | $ | 2,562 | $ | 1,076 | $ | 8,323 | $ | 15,161 | |||||||
Biocatalyst research and development | 3,364 | 2,028 | 7,176 | 4,936 | |||||||||||
Revenue sharing arrangement | 1,546 | 839 | 5,617 | 2,300 | |||||||||||
Total revenues | 7,472 | 3,943 | 21,116 | 22,397 | |||||||||||
Costs and operating expenses: | |||||||||||||||
Cost of biocatalyst product revenues | 1,532 | 494 | 6,179 | 9,790 | |||||||||||
Research and development | 5,038 | 6,831 | 17,708 | 22,776 | |||||||||||
Selling, general and administrative | 5,157 | 5,832 | 16,791 | 21,126 | |||||||||||
Total costs and operating expenses | 11,727 | 13,157 | 40,678 | 53,692 | |||||||||||
Loss from operations | (4,255 | ) | (9,214 | ) | (19,562 | ) | (31,295 | ) | |||||||
Interest income | 3 | 9 | 15 | 53 | |||||||||||
Other expenses | (57 | ) | (22 | ) | (183 | ) | (288 | ) | |||||||
Loss before income taxes | (4,309 | ) | (9,227 | ) | (19,730 | ) | (31,530 | ) | |||||||
Income tax provision (benefit) | 253 | 35 | (314 | ) | (41 | ) | |||||||||
Net loss | $ | (4,562 | ) | $ | (9,262 | ) | $ | (19,416 | ) | $ | (31,489 | ) | |||
Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.24 | ) | $ | (0.51 | ) | $ | (0.83 | ) | |||
Weighted average common shares used in computing net loss per share, basic and diluted | 38,450 | 38,102 | 38,063 | 38,002 |
September 30, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 21,522 | $ | 22,130 | |||
Marketable securities, current | — | 3,005 | |||||
Accounts receivable, net of allowances of $513 at September 30, 2014 and $460 at December 31, 2013 | 3,088 | 5,413 | |||||
Inventories, net | 1,943 | 1,487 | |||||
Prepaid expenses and other current assets | 1,652 | 1,567 | |||||
Assets held for sale | — | 2,179 | |||||
Total current assets | 28,205 | 35,781 | |||||
Restricted cash | 711 | 711 | |||||
Marketable securities, non-current | 1,031 | 795 | |||||
Property and equipment, net | 4,374 | 8,446 | |||||
Intangible assets, net | 7,029 | 9,560 | |||||
Goodwill | 3,241 | 3,241 | |||||
Other non-current assets | 201 | 306 | |||||
Total assets | $ | 44,792 | $ | 58,840 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,542 | $ | 3,961 | |||
Accrued compensation | 2,376 | 3,625 | |||||
Other accrued liabilities | 2,050 | 1,612 | |||||
Deferred revenues | 4,036 | 2,001 | |||||
Total current liabilities | 11,004 | 11,199 | |||||
Deferred revenues, net of current portion | 4,368 | 1,114 | |||||
Other long-term liabilities | 4,213 | 5,044 | |||||
Total liabilities | 19,585 | 17,357 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued and outstanding | — | — | |||||
Common stock, $0.0001 par value; 100,000 shares authorized at September 30, 2014 and December 31, 2013; 39,510 and 38,351 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 4 | 4 | |||||
Additional paid-in capital | 301,365 | 298,370 | |||||
Accumulated other comprehensive income (loss) | 113 | (32 | ) | ||||
Accumulated deficit | (276,275 | ) | (256,859 | ) | |||
Total stockholders’ equity | 25,207 | 41,483 | |||||
Total liabilities and stockholders’ equity | $ | 44,792 | $ | 58,840 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(i) Research and development expenses | |||||||||||||||
Research and development expenses - GAAP | $ | 5,038 | $ | 6,831 | $ | 17,708 | $ | 22,776 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Impairment of excess lab equipment and change in fair value of assets held for sale(a) | (130 | ) | — | (2,727 | ) | — | |||||||||
Gain on sale of Hungarian subsidiary(b) | — | — | 760 | — | |||||||||||
Depreciation expense(c) | (338 | ) | (1,417 | ) | (1,843 | ) | (4,132 | ) | |||||||
Intangible asset amortization(d) | (844 | ) | (844 | ) | (2,531 | ) | (2,531 | ) | |||||||
Employee stock-based compensation(e) | (227 | ) | (97 | ) | (734 | ) | (989 | ) | |||||||
Research and development expenses - Non-GAAP | $ | 3,499 | $ | 4,473 | $ | 10,633 | $ | 15,124 | |||||||
(ii) Selling, general and administrative expenses | |||||||||||||||
Selling, general and administrative expenses - GAAP | $ | 5,157 | $ | 5,832 | $ | 16,791 | $ | 21,126 | |||||||
Non-GAAP adjustments: | |||||||||||||||
Depreciation expense(c) | (263 | ) | (349 | ) | (836 | ) | (1,175 | ) | |||||||
Employee stock-based compensation(e) | (828 | ) | (529 | ) | (2,896 | ) | (2,372 | ) | |||||||
Selling, general and administrative expenses - Non-GAAP | $ | 4,066 | $ | 4,954 | $ | 13,059 | $ | 17,579 | |||||||
(iii) Net loss | |||||||||||||||
Net loss - GAAP | $ | (4,562 | ) | $ | (9,262 | ) | $ | (19,416 | ) | $ | (31,489 | ) | |||
Non-GAAP adjustments: | |||||||||||||||
Impairment of excess lab equipment and change in fair value of assets held for sale (a) | 130 | — | 2,727 | — | |||||||||||
Gain on sale of Hungarian subsidiary (b) | — | — | (760 | ) | — | ||||||||||
Depreciation expense(c) | 601 | 1,766 | 2,679 | 5,307 | |||||||||||
Intangible asset amortization(d) | 844 | 844 | 2,531 | 2,531 | |||||||||||
Employee stock-based compensation(e) | 1,055 | 626 | 3,630 | 3,361 | |||||||||||
Net loss - Non-GAAP | $ | (1,932 | ) | $ | (6,026 | ) | $ | (8,609 | ) | $ | (20,290 | ) | |||
(iv) Net loss per share | |||||||||||||||
Net loss - Non-GAAP | $ | (1,932 | ) | $ | (6,026 | ) | $ | (8,609 | ) | $ | (20,290 | ) | |||
Basic and diluted shares - GAAP | 38,450 | 38,102 | 38,063 | 38,002 | |||||||||||
Basic and diluted net loss per share - Non-GAAP | $ | (0.05 | ) | $ | (0.16 | ) | $ | (0.23 | ) | $ | (0.53 | ) | |||
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