Washington | 000-5513 | 02-0592619 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |
¨ | Written communications 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)) |
• | A base annual salary of $270,300 per year; |
• | Participation in the Company’s bonus plan at a target of 35% of base salary; |
• | An option to purchase up to 40,000 shares of the Company’s common stock at a per share exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant, which shall vest as to 1/5 of the shares subject to the option on each anniversary of the date of grant; and |
• | A restricted stock unit (“RSU”) award covering 20,000 shares of the Company’s common stock, which shall vest as to 1/5 of the shares subject to the RSU on each anniversary of the date of grant. |
Exhibits | Description |
10.01 | Letter Agreement, between Acucela Inc. and Dewey H. Blocker, Jr. |
99.1 | English Translation of Difference Between the Earnings Forecasts and the Results for the Fiscal Year 2014. |
99.2 | English Translation of Tanshin, dated March 26, 2015 |
ACUCELA INC. | ||
By: | /s/ Dewey H. Blocker, Jr. | |
Dewey H. Blocker, Jr. | ||
Date: March 25, 2015 | Vice President Finance |
Exhibit Number | Description |
10.01 | Letter Agreement, between Acucela Inc. and Dewey H. Blocker, Jr. |
99.1 | English Translation of Difference Between the Earnings Forecasts and the Results for the Fiscal Year 2014. |
99.2 | English Translation of Tanshin, dated March 26, 2015 |
EXHIBIT 10.01 |
• | The promotion will be effective as of March 24, 2015. |
• | The title is Vice President of Finance. You will work with HR and me to have a job description in place no later than July 31, 2015. |
• | Until a CFO is hired, you will oversee all Finance operations. |
• | Your executive status will be as Named Executive Officer (“NEO”). As such, your new role will be detailed in the annual Proxy Statement and 10-K, and any compensation approved will be disclosed to the SEC and/or the TSE as applicable. |
Company name | Acucela Inc. |
Representative | Brian O'Callaghan |
Title: Chief Executive Officer and President | |
Code number | 4589, TSE Mothers |
Contact | Tomomi Sukagawa, Director of Investor Relations and Communications |
Japan Office, Acucela Inc. | |
(Telephone: 03-5789-5872) | |
Attorney-in-fact | Baker & McKenzie (Gaikokuho Joint Enterprise) |
Ken Takahashi (Telephone: 03-6271-9900) |
Revenue from collaborations (Note 1) | Operating income (loss) | Income before income tax | Net income (loss) | Net income (loss) per share (Note 2) | |||||||||||
Previous 2014 Forecast (A) | $ | 34,739 | $ | 693 | $ | 250 | $ | (1,997 | ) | $ | (0.06 | ) | |||
¥ | 4,187,786 | ¥ | 83,541 | ¥ | 30,138 | ¥ | (240,738 | ) | ¥ | (7 | ) | ||||
2014 Expected Results (B) | $ | 35,396 | $ | (188 | ) | $ | 353 | $ | (2,006 | ) | $ | (0.06 | ) | ||
¥ | 4,266,988 | ¥ | (22,663 | ) | ¥ | 42,554 | ¥ | (241,823 | ) | ¥ | (7 | ) | |||
Change (B-A) | $ | 657 | $ | (881 | ) | $ | 103 | $ | (9 | ) | $ | — | |||
¥ | 79,202 | ¥ | (106,204 | ) | ¥ | 12,416 | ¥ | (1,085 | ) | ¥ | — | ||||
Percentage Change (%) - omitted where not meaningful | |||||||||||||||
2 | % | NA | 41 | % | — | % | — | % | |||||||
2013 Results (for reference) | $ | 52,947 | $ | 6,994 | $ | 7,182 | $ | 4,299 | $ | 0.10 | |||||
¥ | 6,382,761 | ¥ | 843,127 | ¥ | 865,790 | ¥ | 518,244 | ¥ | 12 |
(Translation) | ![]() |
Company name | Acucela Inc. |
Stock exchange listing | Tokyo Stock Exchange Mothers Market (Foreign Stocks) |
Code number | 4589 |
URL | http://www.acucela.jp/ |
Representative | Brian O'Callaghan |
Title: Chief Executive Officer and President | |
Attorney-in-fact | Baker & McKenzie (Gaikokuho Joint Enterprise) |
Ken Takahashi (Telephone: 03-6271-9900) | |
Contact | Tomomi Sukagawa, Director of Investor Relations and Communications |
Japan Office, Acucela Inc. | |
(Telephone: 03-5789-5872) | |
Scheduled date of general shareholders meeting | June 8, 2015 |
Scheduled date of annual securities report submission | May 15, 2015 |
Scheduled date of dividend payment commencement | — |
Supplementary materials for financial results | No |
Earnings announcement for financial results | No |
Revenue from collaborations (Note 1) | Income (loss) from operations | Income before income tax | Net income (loss) | |||||||||||||||||
$ | 35,396 | $ | (188 | ) | $ | 353 | $ | (2,006 | ) | |||||||||||
FY2014 | ¥ | 4,266,987 | (33.1 | )% | ¥ | (22,664 | ) | (102.7 | )% | ¥ | 42,553 | (95.1 | )% | ¥ | (241,824 | ) | (146.7 | )% | ||
$ | 52,947 | $ | 6,994 | $ | 7,182 | $ | 4,299 | |||||||||||||
FY2013 | ¥ | 6,382,760 | 14.1 | % | ¥ | 843,126 | (0.6 | )% | ¥ | 865,790 | 5.2 | % | ¥ | 518,244 | 2.9 | % |
Basic earnings per share | Diluted earnings per share | Net income (loss) to equity ratio | Ratio of income before income tax to total assets | Ratio of operating income to revenues from collaborations | |||||||||
$ | (0.06 | ) | $ | (0.06 | ) | ||||||||
FY2014 | ¥ | (7 | ) | ¥ | (7 | ) | (1.1 | )% | 0.2 | % | (0.5 | )% | |
$ | 0.10 | $ | 0.09 | ||||||||||
FY2013 | ¥ | 12 | ¥ | 10 | 13.8 | % | 13.3 | % | 13.2 | % |
Total assets | Net assets | Shareholders’ equity | Shareholders’ equity ratio | Shareholders' equity per share | |||||||||||
$ | 196,966 | $ | 184,363 | $ | 184,363 | $ | 5.15 | ||||||||
As of December 31, 2014 | ¥ | 23,744,249 | ¥ | 22,224,958 | ¥ | 22,224,958 | 94 | % | ¥ | 620 | |||||
$ | 54,048 | $ | 31,124 | $ | 31,124 | $ | 2.60 | ||||||||
As of December 31, 2013 | ¥ | 6,515,482 | ¥ | 3,751,997 | ¥ | 3,751,997 | 58 | % | ¥ | 313 |
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents—end of year | |||||||||
$ | 8,844 | $ | (152,334 | ) | $ | 148,274 | $ | 18,778 | ||||
FY2014 | ¥ | 1,066,144 | ¥ | (18,363,863 | ) | ¥ | 17,874,431 | ¥ | 2,263,688 | |||
$ | 7,246 | $ | (6,581 | ) | $ | (3,310 | ) | $ | 13,994 | |||
FY2013 | ¥ | 873,506 | ¥ | (793,340 | ) | ¥ | (399,021 | ) | ¥ | 1,686,976 |
Annual dividend per share | Total Dividend Paid | Payout Ratio | Ratio of Total Amount of Dividends to Net Assets | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Year-end | Total | ||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | — | % | |||||||
FY2013 | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | — | % | — | % | ||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | — | % | |||||||
FY2014 | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | — | % | — | % | ||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | — | % | |||||||
FY2015 (forecast) | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | — | % | — | % |
Revenue from collaborations (low) | Revenue from collaborations (high) | Loss from operations (low) | Loss from operations (high) | Income (loss) before income tax (low) | Income (loss) before income tax (high) | Net loss (low) | Net loss (high) | |||||||||||||||||
$ | 33,200 | $ | 35,700 | $ | (9,575 | ) | $ | (12,000 | ) | $ | (9,225 | ) | $ | (11,575 | ) | $ | (9,350 | ) | $ | (11,650 | ) | |||
Full Year 2015 Forecast | ¥ | 4,002,260 | ¥ | 4,303,635 | ¥ | (1,154,266 | ) | ¥ | (1,446,600 | ) | ¥ | (1,112,073 | ) | ¥ | (1,395,366 | ) | ¥ | (1,127,142 | ) | ¥ | (1,404,407 | ) | ||
$ | 35,396 | $ | 35,396 | $ | (188 | ) | $ | (188 | ) | $ | 353 | $ | 353 | $ | (2,006 | ) | $ | (2,006 | ) | |||||
Full Year 2014 Results | ¥ | 4,266,987 | ¥ | 4,266,987 | ¥ | (22,663 | ) | ¥ | (22,663 | ) | ¥ | 42,554 | ¥ | 42,554 | ¥ | (241,823 | ) | ¥ | (241,823 | ) | ||||
Percentage Change (%) - omitted where not meaningful | (6.2 | )% | 0.9 | % | NA | NA | NA | NA | 366.1 | % | 480.8 | % |
Net loss per share (low)¹ | Net loss per share (high)¹ | |||||
$ | (0.26 | ) | $ | (0.33 | ) | |
Full Year 2015 Forecast | ¥ | (31 | ) | ¥ | (39 | ) |
$ | (0.06 | ) | $ | (0.06 | ) | |
Full Year 2014 Results | ¥ | (7 | ) | ¥ | (7 | ) |
Percentage Change (%) - omitted where not meaningful | 333.3 | % | 450.0 | % |
Number of Common Shares (in thousands) | ||
As of December 31, 2014 | 35,809 | |
As of December 31, 2013 | 11,971 |
Number of Treasury Shares (in thousands) | |
As of December 31, 2014 | none |
As of December 31, 2013 | none |
Average Number of Common Shares (in thousands) | ||
FY 2014 | 32,869 | |
FY 2013 | 11,964 |
(1) Balance Sheets | |
Years Ended December 31, | 2013 to 2014 $ Change | 2013 to 2014 % Change | ||||||||||||
2014 | 2013 | |||||||||||||
Emixustat | $ | 35,364 | $ | 39,186 | $ | (3,822 | ) | (9.8 | )% | |||||
Rebamipide | 25 | 12,271 | (12,246 | ) | (99.8 | )% | ||||||||
OPA-6566 | 7 | 1,490 | (1,483 | ) | (99.5 | )% | ||||||||
Total | $ | 35,396 | $ | 52,947 | $ | (17,551 | ) | (33.1 | )% |
Years Ended December 31, | 2013 to 2014 $ Change | 2013 to 2014 % Change | ||||||||||||
2014 | 2013 | |||||||||||||
Emixustat | ¥ | 4,263,130 | ¥ | 4,723,872 | ¥ | (460,742 | ) | (9.8 | )% | |||||
Rebamipide | 3,013 | 1,479,269 | (1,476,256 | ) | (99.8 | )% | ||||||||
OPA-6566 | 844 | 179,619 | (178,775 | ) | (99.5 | )% | ||||||||
Total | ¥ | 4,266,987 | ¥ | 6,382,760 | ¥ | (2,115,773 | ) | (33.1 | )% |
Years Ended December 31, | 2013 to 2014 $ Change | 2013 to 2014 % Change | ||||||||||||
2014 | 2013 | |||||||||||||
Emixustat | $ | 24,509 | $ | 25,537 | $ | (1,028 | ) | (4.0 | )% | |||||
Rebamipide | 15 | 7,081 | (7,066 | ) | (99.8 | )% | ||||||||
OPA-6566 | 8 | 1,232 | (1,224 | ) | (99.4 | )% | ||||||||
Internal Research | 1,050 | 2,555 | (1,505 | ) | (58.9 | )% | ||||||||
Total | $ | 25,582 | $ | 36,405 | $ | (10,823 | ) | (29.7 | )% |
Years Ended December 31, | 2013 to 2014 $ Change | 2013 to 2014 % Change | ||||||||||||
2014 | 2013 | |||||||||||||
Emixustat | ¥ | 2,954,560 | ¥ | 3,078,485 | ¥ | (123,925 | ) | (4.0 | )% | |||||
Rebamipide | 1,808 | 853,614 | (851,806 | ) | (99.8 | )% | ||||||||
OPA-6566 | 964 | 148,517 | (147,553 | ) | (99.4 | )% | ||||||||
Internal Research | 126,578 | 308,006 | (181,428 | ) | (58.9 | )% | ||||||||
Total | ¥ | 3,083,910 | ¥ | 4,388,622 | ¥ | (1,304,712 | ) | (29.7 | )% |
FY2013 | FY2014 | ||||||
Numerator: | |||||||
$ | 1,161 | $ | (2,006 | ) | |||
Net income (loss) attributable to common shareholders | ¥ | 139,959 | ¥ | (241,824 | ) | ||
Denominator: | |||||||
Weighted-average shares outstanding—basic (shares) | 11,964 | 32,869 | |||||
Dilutive effect of stock options and RSUs (shares) | 391 | — | |||||
Diluted weighted average shares of common stock outstanding (shares) | 12,355 | 32,869 | |||||
$ | 0.10 | $ | (0.06 | ) | |||
Basic net income (loss) per share (common stock) | ¥ | 12 | ¥ | (7 | ) | ||
$ | 0.09 | $ | (0.06 | ) | |||
Diluted net income (loss) per share (common stock) | ¥ | 10 | ¥ | (7 | ) |
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents—end of year | |||||||||
$ | 8,844 | $ | (152,334 | ) | $ | 148,274 | $ | 18,778 | ||||
FY2014 | ¥ | 1,066,144 | ¥ | (18,363,863 | ) | ¥ | 17,874,431 | ¥ | 2,263,688 | |||
$ | 7,246 | $ | (6,581 | ) | $ | (3,310 | ) | $ | 13,994 | |||
FY2013 | ¥ | 873,506 | ¥ | (793,340 | ) | ¥ | (399,021 | ) | ¥ | 1,686,976 |
FY2013 | FY2014 | ||||
Shareholders’ equity ratio (%) | 57.6 | % | 93.6 | % | |
Shareholders’ equity ratio based on market prices (%) | 221.5 | % | 107.1 | % | |
Debt to annual cash flow ratio (%) | 1.66 | — | |||
Interest coverage ratio (times) | — | — |
• | Work collaboratively with Otsuka on the development of emixustat. The emixustat Phase 2b/3 clinical trial is continuing as scheduled. In addition, our co-development partner, Otsuka, is currently evaluating next steps for OPA-6566, an adenosine A2a receptor agonist for the potential treatment of glaucoma. |
• | Initiate partnering efforts for emixustat in Acucela’s territories. In anticipation of topline data from the emixustat Phase 2b/3 study in mid-2016, we plan to initiate our out-licensing efforts under the Emixustat Agreement, primarily for Europe. |
• | Leverage expertise in VCM. Our VCM-based molecules are designed to specifically target rod photoreceptor cells within the retina to potentially treat and slow the progression of certain retinal diseases. We are evaluating the potential to develop emixustat for additional indications such as diabetic retinopathy (DR) or diabetic macular edema (DME). We are planning to initiate and complete preclinical animal model studies in 2015 to evaluate the potential for development of emixustat in DR. In addition, we are committed to further enhancing our patent portfolio. |
• | Build an ophthalmic product pipeline through internal research, M&A, and additional partnering or in-licensing opportunities. We intend to deploy capital in 2015 to fund our internal drug discovery and development efforts, as well as license or otherwise acquire the rights to potential new ophthalmic product candidates. |
• | design and develop products that are superior to other products in the market; |
• | attract and retain qualified scientific, product development and commercial personnel; |
• | obtain patent and/or other intellectual property protection for our product candidates and technologies; |
• | obtain required regulatory approvals; and |
• | successfully collaborate in the design, development and commercialization of new products. |
December 31, 2013 | December 31, 2014 | ||||||||||||||
Assets | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 13,994 | ¥ | 1,686,976 | $ | 18,778 | ¥ | 2,263,688 | |||||||
Investments | 14,947 | 1,801,860 | 85,008 | 10,247,714 | |||||||||||
Accounts receivable from collaborations | 10,262 | 1,237,084 | 5,285 | 637,106 | |||||||||||
Deferred tax asset | 1,114 | 134,292 | 61 | 7,353 | |||||||||||
Prepaid expenses and other current assets | 1,964 | 236,760 | 2,582 | 311,260 | |||||||||||
Total current assets | 42,281 | 5,096,972 | 111,714 | 13,467,121 | |||||||||||
Property and equipment, net | 1,112 | 134,051 | 742 | 89,448 | |||||||||||
Long-term investments | 3,478 | 419,272 | 84,033 | 10,130,178 | |||||||||||
Long-term deferred tax asset | 1,280 | 154,304 | 42 | 5,063 | |||||||||||
Deferred offering costs | 5,548 | 668,811 | — | — | |||||||||||
Other assets | 349 | 42,072 | 435 | 52,439 | |||||||||||
Total assets | $ | 54,048 | ¥ | 6,515,482 | $ | 196,966 | ¥ | 23,744,249 | |||||||
Liabilities and shareholders’ equity | |||||||||||||||
Current liabilities: | |||||||||||||||
Current maturities of contingently convertible debt, related party | $ | 12,000 | 1,446,600 | $ | — | ¥ | — | ||||||||
Accounts payable | 754 | 90,894 | 441 | 53,163 | |||||||||||
Accrued liabilities | 6,579 | 793,098 | 4,176 | 503,417 | |||||||||||
Accrued compensation | 3,269 | 394,077 | 1,683 | 202,885 | |||||||||||
Deferred revenue from collaborations | — | — | 6,231 | 751,147 | |||||||||||
Deferred rent and lease incentives | 267 | 32,186 | 25 | 3,013 | |||||||||||
Total current liabilities | 22,869 | 2,756,855 | 12,556 | 1,513,625 | |||||||||||
Commitments and contingencies | |||||||||||||||
Long-term deferred rent, lease incentives, and others | 55 | 6,630 | 47 | 5,666 | |||||||||||
Total long-term liabilities | 55 | 6,630 | 47 | 5,666 | |||||||||||
Shareholders’ equity: | |||||||||||||||
Convertible preferred stock | |||||||||||||||
Series A, no par value, no shares authorized as of December 31, 2014 and 2,734 shares authorized as of December 31, 2013; issued and outstanding, no shares as of December 31, 2014 and 2,734 shares as of December 31, 2013 | 2,051 | 247,248 | — | — | |||||||||||
Series B, no par value, no shares authorized as of December 31, 2014 and 17,900 shares authorized as of December 31, 2013; issued and outstanding, no shares as of December 31, 2014 and 17,900 shares as of December 31, 2013 | 13,387 | 1,613,802 | — | — | |||||||||||
Series C, no par value, no shares authorized as of December 31, 2014 and 31,818 shares authorized as of December 31, 2013; issued and outstanding, no shares as of December 31, 2014 and 11,807 shares as of December 31, 2013 | 12,771 | 1,539,544 | — | — | |||||||||||
Common stock, no par value, 100,000 shares authorized as of December 31, 2014 and 60,000 shares authorized as of December 31, 2013; issued and outstanding, 35,809 shares as of December 31, 2014 and 11,971 shares as of December 31, 2013 | 3,654 | 440,489 | 186,589 | 22,493,303 | |||||||||||
Additional paid-in capital | 2,728 | 328,860 | 3,601 | 434,100 | |||||||||||
Accumulated other comprehensive loss | (7 | ) | (843 | ) | (361 | ) | (43,518 | ) | |||||||
Accumulated deficit | (3,460 | ) | (417,103 | ) | (5,466 | ) | (658,927 | ) | |||||||
Total shareholders’ equity | 31,124 | 3,751,997 | 184,363 | 22,224,958 | |||||||||||
Total liabilities and shareholders’ equity | $ | 54,048 | ¥ | 6,515,482 | $ | 196,966 | ¥ | 23,744,249 |
Year Ended December 31, 2013 | Year Ended December 31, 2014 | ||||||||||||||
Revenue from collaborations | $ | 52,947 | ¥ | 6,382,760 | $ | 35,396 | ¥ | 4,266,987 | |||||||
Expenses: | |||||||||||||||
Research and development | 36,405 | 4,388,623 | 25,582 | 3,083,910 | |||||||||||
General and administrative | 9,548 | 1,151,011 | 10,002 | 1,205,741 | |||||||||||
Total expenses | 45,953 | 5,539,634 | 35,584 | 4,289,651 | |||||||||||
Income (loss) from operations | 6,994 | 843,126 | (188 | ) | (22,664 | ) | |||||||||
Other income (expense), net: | |||||||||||||||
Interest income | 122 | 14,707 | 519 | 62,565 | |||||||||||
Interest expense | (116 | ) | (13,983 | ) | (15 | ) | (1,808 | ) | |||||||
Other income, net | 182 | 21,940 | 37 | 4,460 | |||||||||||
Total other income, net | 188 | 22,664 | 541 | 65,217 | |||||||||||
Income before income tax | 7,182 | 865,790 | 353 | 42,553 | |||||||||||
Income tax expense | (2,883 | ) | (347,546 | ) | (2,359 | ) | (284,377 | ) | |||||||
Net income (loss) | 4,299 | 518,244 | (2,006 | ) | (241,824 | ) | |||||||||
Net income attributable to participating securities | 3,138 | 378,285 | — | — | |||||||||||
Net income (loss) attributable to common shareholders | $ | 1,161 | ¥ | 139,959 | $ | (2,006 | ) | ¥ | (241,824 | ) | |||||
Net income (loss) per share attributable to common shareholders | |||||||||||||||
Basic | $ | 0.10 | ¥ | 12 | $ | (0.06 | ) | ¥ | (7 | ) | |||||
Diluted | $ | 0.09 | ¥ | 10 | $ | (0.06 | ) | ¥ | (7 | ) | |||||
Weighted average shares used to compute net income (loss) per share attributable to common shareholders: | |||||||||||||||
Basic | 11,964 | 11,964 | 32,869 | 32,869 | |||||||||||
Diluted | 12,355 | 12,355 | 32,869 | 32,869 |
Year Ended December 31, 2013 | Year Ended December 31, 2014 | ||||||||||||||
Net income (loss) | $ | 4,299 | ¥ | 518,244 | $ | (2,006 | ) | ¥ | (241,824 | ) | |||||
Other comprehensive loss: | |||||||||||||||
Net unrealized loss on securities, net of tax | (7 | ) | (843 | ) | (354 | ) | (42,675 | ) | |||||||
Comprehensive income (loss) | $ | 4,292 | ¥ | 517,401 | $ | (2,360 | ) | ¥ | (284,499 | ) |
Convertible Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||
Series A | Series B | Common Stock | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 2,734 | $ | 2,051 | 17,900 | $ | 13,387 | 11,807 | $ | 12,771 | 11,910 | $ | 3,192 | $ | 1,965 | $ | — | $ | (7,759 | ) | $ | 25,607 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | 667 | — | — | 667 | |||||||||||||||||||||||||||||||
Excess net tax benefit related to share-based awards | — | — | — | — | — | — | — | — | 96 | — | — | 96 | |||||||||||||||||||||||||||||||
Common stock issued in connection with stock option exercises | — | — | — | — | — | — | 30 | 6 | — | — | — | 6 | |||||||||||||||||||||||||||||||
Common stock issued in connection with the restricted stock purchase agreement | — | — | — | — | — | — | 31 | 456 | — | — | — | 456 | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | 4,299 | 4,299 | |||||||||||||||||||||||||||||||
Unrealized loss on marketable securities available for sale | — | — | — | — | — | — | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 2,734 | 2,051 | 17,900 | 13,387 | 11,807 | 12,771 | 11,971 | 3,654 | 2,728 | (7 | ) | (3,460 | ) | 31,124 | |||||||||||||||||||||||||||||
Common stock issued in connection with IPO offering, net of issuance costs | — | — | — | — | — | — | 9,200 | 142,044 | — | — | — | 142,044 | |||||||||||||||||||||||||||||||
Common stock issued in connection with conversion of convertible preferred stock upon IPO | (2,734 | ) | (2,051 | ) | (17,900 | ) | (13,387 | ) | (11,807 | ) | (12,771 | ) | 10,814 | 28,209 | — | — | — | — | |||||||||||||||||||||||||
Common stock issued in connection with conversion of contingently convertible notes upon IPO | — | — | — | — | — | — | 3,636 | 12,000 | — | — | — | 12,000 | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | 516 | — | — | 516 | |||||||||||||||||||||||||||||||
Excess net tax benefit related to IPO costs | — | — | — | — | — | — | — | — | 421 | — | — | 421 | |||||||||||||||||||||||||||||||
Excess net tax provision related to share-based awards | — | — | — | — | — | — | — | — | (64 | ) | — | — | (64 | ) | |||||||||||||||||||||||||||||
Common stock issued in connection with stock option exercises | — | — | — | — | — | — | 188 | 682 | — | — | — | 682 | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (2,006 | ) | (2,006 | ) | |||||||||||||||||||||||||||||
Unrealized loss on marketable securities available for sale | — | — | — | — | — | — | — | — | — | (354 | ) | — | (354 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2014 | — | $ | — | — | $ | — | — | $ | — | 35,809 | $ | 186,589 | $ | 3,601 | $ | (361 | ) | $ | (5,466 | ) | $ | 184,363 |
Convertible Preferred Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series C | Common Stock | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 2,734 | ¥ | 247,248 | 17,900 | ¥ | 1,613,802 | 11,807 | ¥ | 1,539,544 | 11,910 | ¥ | 384,795 | ¥ | 236,880 | ¥ | — | ¥ | (935,347 | ) | ¥ | 3,086,922 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | 80,407 | — | — | 80,407 | |||||||||||||||||||||||||||||||
Excess net tax benefit related to share-based awards | — | — | — | — | — | — | — | — | 11,573 | — | — | 11,573 | |||||||||||||||||||||||||||||||
Common stock issued in connection with stock option exercises | — | — | — | — | — | — | 30 | 723 | — | — | — | 723 | |||||||||||||||||||||||||||||||
Common stock issued in connection with the restricted stock purchase agreement | — | — | — | — | — | — | 31 | 54,971 | — | — | — | 54,971 | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | 518,244 | 518,244 | |||||||||||||||||||||||||||||||
Unrealized loss on marketable securities available for sale | — | — | — | — | — | — | — | — | — | (843 | ) | — | (843 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 2,734 | 247,248 | 17,900 | 1,613,802 | 11,807 | 1,539,544 | 11,971 | 440,489 | 328,860 | (843 | ) | (417,103 | ) | 3,751,997 | |||||||||||||||||||||||||||||
Common stock issued in connection with IPO offering, net of issuance costs | — | — | — | — | — | — | 9,200 | 17,123,405 | — | — | — | 17,123,405 | |||||||||||||||||||||||||||||||
Common stock issued in connection with conversion of convertible preferred stock upon IPO | (2,734 | ) | (247,248 | ) | (17,900 | ) | (1,613,802 | ) | (11,807 | ) | (1,539,544 | ) | 10,814 | 3,400,594 | — | — | — | — | |||||||||||||||||||||||||
Common stock issued in connection with conversion of contingently convertible notes upon IPO | — | — | — | — | — | — | 3,636 | 1,446,600 | — | — | — | 1,446,600 | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | 62,204 | — | — | 62,204 | |||||||||||||||||||||||||||||||
Excess net tax benefit related to IPO costs | — | — | — | — | — | — | — | — | 50,751 | — | — | 50,751 | |||||||||||||||||||||||||||||||
Excess net tax provision related to share-based awards | — | — | — | — | — | — | — | — | (7,715 | ) | — | — | (7,715 | ) | |||||||||||||||||||||||||||||
Common stock issued in connection with stock option exercises | — | — | — | — | — | — | 188 | 82,215 | — | — | — | 82,215 | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | (241,824 | ) | (241,824 | ) | |||||||||||||||||||||||||||||
Unrealized loss on marketable securities available for sale | — | — | — | — | — | — | — | — | — | (42,675 | ) | — | (42,675 | ) | |||||||||||||||||||||||||||||
Balance at December 31, 2014 | — | $ | — | — | ¥ | — | — | ¥ | — | 35,809 | ¥ | 22,493,303 | ¥ | 434,100 | ¥ | (43,518 | ) | ¥ | (658,927 | ) | ¥ | 22,224,958 |
Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||
Net income (loss) | $ | 4,299 | ¥ | 518,244 | $ | (2,006 | ) | ¥ | (241,824 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 531 | 64,012 | 501 | 60,395 | |||||||||||
Stock-based compensation | 1,123 | 135,379 | 516 | 62,204 | |||||||||||
Amortization of premium/discount on marketable securities | 332 | 40,022 | 1,175 | 141,646 | |||||||||||
Deferred taxes | 2,274 | 274,130 | 2,349 | 283,171 | |||||||||||
Excess net tax provision related to share-based awards | — | — | (64 | ) | (7,715 | ) | |||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable from collaborations | (1,562 | ) | (188,299 | ) | 4,977 | 599,978 | |||||||||
Prepaid expenses and other current assets | (443 | ) | (53,403 | ) | (197 | ) | (23,749 | ) | |||||||
Accounts payable | (102 | ) | (12,296 | ) | (313 | ) | (37,732 | ) | |||||||
Accrued liabilities | 2,650 | 319,457 | (2,403 | ) | (289,681 | ) | |||||||||
Accrued compensation | 856 | 103,190 | (1,586 | ) | (191,192 | ) | |||||||||
Deferred rent and lease incentives | (264 | ) | (31,825 | ) | (250 | ) | (30,137 | ) | |||||||
Deferred revenue from collaborations | (2,570 | ) | (309,813 | ) | 6,231 | 751,147 | |||||||||
Other assets | 122 | 14,708 | (86 | ) | (10,367 | ) | |||||||||
Net cash provided by operating activities | 7,246 | 873,506 | 8,844 | 1,066,144 | |||||||||||
Cash flows from investing activities | |||||||||||||||
Purchases of marketable securities available for sale | (23,217 | ) | (2,798,809 | ) | (201,134 | ) | (24,246,703 | ) | |||||||
Maturities of marketable securities available for sale | 17,136 | 2,065,744 | 48,931 | 5,898,632 | |||||||||||
Additions to property and equipment | (500 | ) | (60,275 | ) | (131 | ) | (15,792 | ) | |||||||
Net cash used in investing activities | (6,581 | ) | (793,340 | ) | (152,334 | ) | (18,363,863 | ) | |||||||
Cash flows from financing activities | |||||||||||||||
Proceeds from issuance of common stock | 6 | 723 | 149,819 | 18,060,680 | |||||||||||
Excess net tax benefit related to share-based awards | 96 | 11,573 | — | — | |||||||||||
Payments for deferred offering costs | (3,412 | ) | (411,317 | ) | (1,545 | ) | (186,249 | ) | |||||||
Net cash used in financing activities | (3,310 | ) | (399,021 | ) | 148,274 | 17,874,431 | |||||||||
(Decrease) increase in cash and cash equivalents | (2,645 | ) | (318,855 | ) | 4,784 | 576,712 | |||||||||
Cash and cash equivalents—beginning of year | 16,639 | 2,005,831 | 13,994 | 1,686,976 | |||||||||||
Cash and cash equivalents—end of year | $ | 13,994 | ¥ | 1,686,976 | $ | 18,778 | ¥ | 2,263,688 | |||||||
Supplemental disclosure | |||||||||||||||
Cash paid for income taxes | $ | 828 | ¥ | 99,815 | $ | 60 | ¥ | 7,233 | |||||||
Unpaid deferred offering costs | 937 | 112,955 | 5,548 | 668,811 | |||||||||||
Restriction of investments as collateral | (5,759 | ) | (694,247 | ) | — | — | |||||||||
Conversion of convertible preferred stock upon IPO | — | — | 28,209 | 3,400,594 | |||||||||||
Conversion of contingently convertible debt, related party, upon IPO | — | — | 12,000 | 1,446,600 |
FY2013 | FY2014 | ||||||
Numerator: | |||||||
$ | 1,161 | $ | (2,006 | ) | |||
Net income (loss) attributable to common shareholders | ¥ | 139,959 | ¥ | (241,824 | ) | ||
Denominator: | |||||||
Weighted-average shares outstanding—basic (shares) | 11,964 | 32,869 | |||||
Dilutive effect of stock options and RSUs (shares) | 391 | — | |||||
Diluted weighted average shares of common stock outstanding (shares) | 12,355 | 32,869 | |||||
$ | 0.10 | $ | (0.06 | ) | |||
Basic net income (loss) per share (common stock) | ¥ | 12 | ¥ | (7 | ) | ||
$ | 0.09 | $ | (0.06 | ) | |||
Diluted net income (loss) per share (common stock) | ¥ | 10 | ¥ | (7 | ) |
US GAAP | Japanese GAAP |
Revenue Recognition In the United States, in accordance with the authoritative accounting guideline (which summarizes the views of certain of the staff of the Securities and Exchange Commission (the "SEC")) publicized and amended by the SEC, revenue shall be recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery of products has occurred or services have been rendered; (3) the seller's price to the buyer is fixed or determinable; and (4) collectibility is reasonably assured. In addition, another authoritative accounting guideline on revenue recognition has been added to arrangements in which multiple products or services are provided; the amendment has been applicable to the Company prospectively, as from November 1, 2010. In the United States, in October 2009, the FASB amended the guideline on revenue recognition with regard to multi-element arrangements. The guideline has eliminated the residual method of allocation with regard to revenue recognition and requires that if neither vendor-specific objective evidence (VSOE) nor third-party evidence (TPE) is available, management's best estimate of the selling price of each element in the relevant arrangement be used. Furthermore, in April 2010, the FASB publicized guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions; the guidance was early adopted by the Company as of December 31, 2009. | Revenue Recognition In Japan, the authoritative guidance states that revenues are recognized upon sale of goods or provision of services in accordance with the principle of realization. The authoritative guidance in Japan is not as prescriptive as US GAAP. |
Marketable Securities At each reporting period, the Company determines whether a decline in the value of marketable securities and investments is temporary, based on the criteria that include the duration and extent of the market decline, the financial position and business outlook of the issuer and the intent and ability of the Company to retain the marketable securities and investments for a sufficient period of time for anticipated recovery in fair value. If a decline in the value of marketable securities and investments is determined to be other than temporary, the difference between the book value and the fair value shall be recorded as an impairment charge in the statement of income. | Marketable Securities For securities where there is a market price or rationally calculable value, the fair value after the significant drop should be used as the new book value, unless the fair value is expected to recover. The valuation differences are treated as loss for the accounting period. |
Compensated Absences Under ASC Topic 710, Compensation - General 10-25, a liability for compensation for future absences is recorded if certain criteria are met. | Compensated Absences There is no requirement to record accruals for compensated absences under Japanese GAAP. |
Stock Option In the United States, stock-based compensation, including stock options, shall be accounted for in accordance with the guidance of ASC Topic 718, Compensation - Stock Compensation. The guidance, which requires the recognition of cost of all stock-based payment transactions on the financial statements, requires entities to determine fair value as a measuring object and apply a measurement method based on fair value in accounting for stock-based payment transactions. | Stock Option In Japan, in accordance with the Accounting Standards Board of Japan (ASBJ) Accounting Standard - ASBJ Statement No. 8, Accounting Standard for Stock-based Payment, with regard to stock options granted on or after May 1, 2006, such compensation costs shall be recognized based on fair appraisal value thereof as of the grant date for the period from the grant date of the stock options to the date on which the stock options become exercisable, and the corresponding amount shall be recorded as a separate item in the "net assets section" of the balance sheet. With regard to stock options granted prior to May 1, 2006, no specified accounting standard exist and generally, no compensation cost is recognized. The stock acquisition right account would be reversed when the options are expired unused and reversal gain is recognized in earnings. |
Research and Development In the United States, in accordance with ASC 730 (previously, EITF 07-3, Accounting for Nonrefundable Advance Payments for Goods or Services Received for Use in Future Research and Development Activities), nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities shall be deferred, and shall be amortized for the period during which goods or services are used or rendered, based on the evaluation of their recoverability. | Research and Development In Japan, no such accounting treatment is required. |
Fair Value In the United States, ASC Topic 820, Fair Value Measurements and Disclosures defines fair value, provides a framework for fair value measurements and expands disclosures about fair value measurements. With regard to the definition of fair value, while the guidance under Topic 820 still uses the concept of a price for exchange, it expressly provides that the price is a price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants on the measurement date. ASC Topic 820 emphasizes that fair value is a market-based value and is not an entity-specific value. It also establishes a multi-level hierarchy of fair values as a framework for fair value measurements and requires expanded disclosures of assets and liabilities measured at fair value. | Fair Value In Japan, there is no comprehensive accounting standard for fair value measurements. In the respective accounting standards for financial instruments and nonfinancial assets and liabilities, fair value is defined as a value based on a market price or if no market price is available, a reasonably assessed value. |
Subsequent Event Disclosure The scope is events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained. | Subsequent Event Disclosure “Audit Treatment for Subsequent Events” defines subsequent events, which are within the scope of the financial statements audit, as events which occur after the balance sheet date and before the reporting date. Because it includes the definition, scope and treatment of subsequent events, it is used as a practical guide for accounting. In addition, it sets the rules for the events which occur after the reporting date and before the submission date of the annual security report. |
• | Directors |
• | Officers |
• | Corporate Auditors |
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