Date of Report (Date of earliest event reported): February 24, 2015 |
GENMARK DIAGNOSTICS, INC. |
(Exact name of registrant as specified in its charter) Commission File Number: 001-34753 |
Delaware | 27-2053069 | |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
5964 La Place Court Carlsbad, California |
(Address of principal executive offices, including zip code) |
760-448-4300 |
(Registrant’s telephone number, including area code) |
(Former Name or Former Address, if Changed Since Last Report) |
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): |
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | The following exhibit is furnished with this Current Report: |
99.1 | Press release dated February 24, 2015. |
GENMARK DIAGNOSTICS, INC. | ||
Date: | February 24, 2015 | /s/ Eric Stier |
Eric Stier | ||
Senior Vice President, General Counsel and Secretary | ||
Exhibit Number | Description | |
99.1 | Press release dated February 24, 2015. |
As of December 31, | |||||||
2014 | 2013 | ||||||
Current assets | (Unaudited) | ||||||
Cash and cash equivalents | $ | 36,855 | $ | 35,723 | |||
Marketable securities | 33,651 | 69,866 | |||||
Accounts receivable - net of allowances of $2,702 and $2,736, respectively | 4,889 | 2,859 | |||||
Inventories | 2,137 | 2,102 | |||||
Prepaid expenses and other current assets | 575 | 552 | |||||
Total current assets | 78,107 | 111,102 | |||||
Property and equipment, net | 11,052 | 8,591 | |||||
Intangible assets, net | 1,870 | 1,197 | |||||
Restricted cash | 758 | 758 | |||||
Other long-term assets | 183 | 106 | |||||
Total assets | $ | 91,970 | $ | 121,754 | |||
Current liabilities | |||||||
Accounts payable | $ | 3,468 | $ | 3,863 | |||
Accrued compensation | 5,172 | 3,375 | |||||
Loan payable | — | 37 | |||||
Other current liabilities | 3,653 | 2,962 | |||||
Total current liabilities | 12,293 | 10,237 | |||||
Long-term liabilities | |||||||
Deferred rent | 1,445 | 1,601 | |||||
Other noncurrent liabilities | 208 | 748 | |||||
Total liabilities | 13,946 | 12,586 | |||||
Stockholders’ equity | |||||||
Preferred stock, $0.0001 par value; 5,000 authorized, none issued | — | — | |||||
Common stock, $0.0001 par value; 100,000 authorized; 41,859 and 41,520 shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 4 | 4 | |||||
Additional paid-in capital | 340,502 | 333,363 | |||||
Accumulated deficit | (262,472 | ) | (224,209 | ) | |||
Accumulated other comprehensive income (loss) | (10 | ) | 10 | ||||
Total stockholders’ equity | 78,024 | 109,168 | |||||
Total liabilities and stockholders’ equity | $ | 91,970 | $ | 121,754 |
Three Months Ended December 31 | Twelve Month Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Product revenue | $ | 9,735 | $ | 6,577 | $ | 30,328 | $ | 27,204 | |||||||
License and other revenue | 91 | (125 | ) | 266 | 200 | ||||||||||
Total revenue | 9,826 | 6,452 | 30,594 | 27,404 | |||||||||||
Cost of revenues | 3,827 | 3,420 | 13,127 | 15,570 | |||||||||||
Gross profit | 5,999 | 3,032 | 17,467 | 11,834 | |||||||||||
Operating expenses | |||||||||||||||
Sales and marketing | 3,112 | 2,988 | 12,629 | 12,818 | |||||||||||
General and administrative | 3,018 | 4,041 | 12,069 | 11,836 | |||||||||||
Research and development | 8,526 | 6,274 | 31,823 | 22,060 | |||||||||||
Total operating expenses | 14,656 | 13,303 | 56,521 | 46,714 | |||||||||||
Loss from operations | (8,657 | ) | (10,271 | ) | (39,054 | ) | (34,880 | ) | |||||||
Other income (expense) | |||||||||||||||
Interest income | 37 | 124 | 244 | 403 | |||||||||||
Interest expense | (1 | ) | (2 | ) | (20 | ) | (19 | ) | |||||||
Other income (expense) | 27 | (469 | ) | (6 | ) | 897 | |||||||||
Total other income (expense) | 63 | (347 | ) | 218 | 1,281 | ||||||||||
Loss before income taxes | (8,594 | ) | (10,618 | ) | (38,836 | ) | (33,599 | ) | |||||||
Income tax expense (benefit) | 18 | 14 | (573 | ) | 44 | ||||||||||
Net loss | $ | (8,612 | ) | $ | (10,632 | ) | $ | (38,263 | ) | $ | (33,643 | ) | |||
Net loss per share, basic and diluted | $ | (0.21 | ) | $ | (0.26 | ) | $ | (0.93 | ) | $ | (0.95 | ) | |||
Weighted average number of shares outstanding, basic and diluted | 41,569 | 40,957 | 41,346 | 35,253 | |||||||||||
Other comprehensive loss | |||||||||||||||
Net loss | $ | (8,612 | ) | $ | (10,632 | ) | $ | (38,263 | ) | $ | (33,643 | ) | |||
Net unrealized losses on marketable securities, net of tax | (14 | ) | (16 | ) | (20 | ) | (4 | ) | |||||||
Comprehensive loss | $ | (8,626 | ) | $ | (10,648 | ) | $ | (38,283 | ) | $ | (33,647 | ) |
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Operating activities: | (Unaudited) | ||||||||||
Net loss | $ | (38,263 | ) | $ | (33,643 | ) | $ | (22,103 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 2,656 | 2,530 | 1,198 | ||||||||
Amortization of premiums on marketable securities | 702 | 314 | — | ||||||||
Stock-based compensation | 5,796 | 3,893 | 2,352 | ||||||||
Provision for bad debt | — | 2,721 | (24 | ) | |||||||
Non-cash inventory adjustments | 450 | 1,779 | (482 | ) | |||||||
Gain on sales of investment in preferred stock | — | (1,392 | ) | — | |||||||
Elimination of cumulative foreign currency translation adjustments upon liquidation of foreign subsidiary | — | 450 | — | ||||||||
Impairment of intangible asset | — | 1,624 | — | ||||||||
Other non-cash adjustments | 185 | — | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (2,030 | ) | (2,390 | ) | (2,068 | ) | |||||
Inventories | (229 | ) | (1,313 | ) | 880 | ||||||
Prepaid expenses and other assets | (184 | ) | (119 | ) | 68 | ||||||
Accounts payable | 85 | 1,343 | 728 | ||||||||
Accrued compensation | 1,797 | 951 | 1,811 | ||||||||
Other liabilities | (537 | ) | (544 | ) | 1,397 | ||||||
Net cash used in operating activities | (29,572 | ) | (23,796 | ) | (16,243 | ) | |||||
Investing activities | |||||||||||
Change in restricted cash | — | 585 | (1,343 | ) | |||||||
Purchase of marketable securities | (28,054 | ) | (76,190 | ) | (1,000 | ) | |||||
Payments for intellectual property licenses | (350 | ) | (882 | ) | (1,327 | ) | |||||
Purchases of property and equipment | (5,726 | ) | (4,270 | ) | (3,476 | ) | |||||
Proceeds from sales of marketable securities | 7,497 | 6,643 | — | ||||||||
Maturities of marketable securities | 56,050 | 1,550 | 5,000 | ||||||||
Net cash provided by (used in) investing activities | 29,417 | (72,564 | ) | (2,146 | ) | ||||||
Financing activities | |||||||||||
Proceeds from issuance of common stock | 812 | 86,547 | 48,300 | ||||||||
Cost incurred in conjunction with public offering | — | (5,510 | ) | (3,211 | ) | ||||||
Proceeds from borrowings | — | 166 | 991 | ||||||||
Principal repayment of borrowings | (56 | ) | (766 | ) | (1,984 | ) | |||||
Proceeds from stock option exercises | 531 | 396 | 223 | ||||||||
Net cash provided by financing activities | 1,287 | 80,833 | 44,319 | ||||||||
Net (decrease) increase in cash and cash equivalents | 1,132 | (15,527 | ) | 25,930 | |||||||
Cash and cash equivalents at beginning of period | 35,723 | 51,250 | 25,320 | ||||||||
Cash and cash equivalents at end of period | $ | 36,855 | $ | 35,723 | $ | 51,250 | |||||
Non-cash investing and financing activities: | |||||||||||
Property and equipment purchased with capital lease | $ | — | $ | — | $ | 109 | |||||
Transfer of systems from property and equipment into inventory | $ | 256 | $ | 575 | $ | 223 | |||||
Property and equipment costs incurred but not paid included in accounts payable | $ | 124 | $ | 603 | $ | 592 | |||||
Leasehold improvements related to lease incentives | $ | — | $ | — | $ | 1,359 | |||||
Intellectual property acquisition included in other noncurrent liabilities | $ | 550 | $ | 450 | $ | — |
Offering costs incurred but not paid included in other liabilities | — | 65 | — | ||||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | $ | 20 | $ | 19 | $ | 90 | |||||
Cash received for interest | $ | 244 | $ | 403 | $ | 42 | |||||
Cash paid for income taxes, net | $ | 24 | $ | 21 | $ | 91 |