Print Page      Close Window     

SEC Filings

10-Q
ATHENEX, INC. filed this Form 10-Q on 05/09/2019
Entire Document
 

 

7. Accrued Expenses

Accrued expenses consist of the following (in thousands):

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Accrued wages and benefits

 

$

6,508

 

 

$

5,061

 

Accrued clinical expenses

 

 

1,888

 

 

 

2,653

 

Accrued operating expenses

 

 

3,646

 

 

 

8,128

 

Deferred revenue

 

 

131

 

 

 

190

 

Accrued R&D licensing fees

 

 

654

 

 

 

4,827

 

Accrued tax withholdings

 

 

192

 

 

 

 

Accrued selling fees and rebates

 

 

1,910

 

 

 

423

 

Accrued construction costs

 

 

27,642

 

 

 

16,436

 

Total accrued expenses

 

$

42,571

 

 

$

37,718

 

 

The accrued construction costs relate to the building of the manufacturing facility in Dunkirk, NY. Of this amount, the Company expects $27.1 million to be reimbursed by New York State. This amount is recorded within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet as of March 31, 2019.

8. Income Taxes

The Company did not record a provision for federal income taxes for the three months ended March 31, 2019 because it expects to generate a loss for the year ending December 31, 2019 and the Company’s net deferred tax assets continue to be fully offset by a valuation allowance. Tax expense to date is the result of recording a valuation allowance against the deferred tax asset related to foreign tax benefits on losses in the Peoples Republic of China (“PRC”).

9. Debt and Lease Obligations

Debt

The Company’s debt as of March 31, 2019 and December 31, 2018, consists of the following (in thousands):

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Current portion of mortgage

 

$

792

 

 

$

779

 

Current portion of bank loan

 

 

743

 

 

 

 

Current portion of finance and capital lease obligation

 

 

185

 

 

 

182

 

Long-term portion of finance and capital lease obligation

 

 

374

 

 

 

422

 

Senior

secured loan, net of debt discount and financing fees

   of $4,362 and $4,619, respectively

 

 

45,638

 

 

 

45,381

 

Total

 

$

47,732

 

 

$

46,764

 

 

The mortgage payments, assumed in connection with the acquisition of CDE, extend through July 30, 2019.  

 

During 2018, the Company issued a senior secured loan with a principal value of $50.0 million and a maturity date of June 30, 2023. The loan bears interest at a floating per annum rate equal to LIBOR (with a floor of 2.0%) plus 9.0%. The Company is required to make monthly interest-only payments with a bullet payment of the principal at maturity. 

 

During the first quarter of 2019, the Company was issued an unsecured, subordinated bank loan to fund operations in China. This loan has a principal value of $0.7 million, a maturity date of December 11, 2019, and bears interest at a fixed rate of 5.7% annually. 

11