Print Page      Close Window     

SEC Filings

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

 

Net cash used in operating activities was $33.0 million for the three months ended March 31, 2019. This resulted primarily from our net loss of $36.2 million, adjusted for non-cash charges of $3.4 million, and by cash used by our operating assets and liabilities of $0.2 million. Our operating assets increased $7.6 million for accounts receivable mainly related to the increase sales of our specialty products, API and 503B products in the current year, and $11.9 million for prepaid and accrued expenses related to Dunkirk construction. Inventory decreased by $3.6 million primarily related to the sale of specialty drugs. Our operating liabilities increased by $16.4 million mainly due to an increase in accrued license fees and accrued inventory purchases. Our net non-cash charges during the three months ended March 31, 2019 primarily consisted of $1.8 million of stock-based compensation expense, $0.9 million depreciation and amortization expense and $0.5 million of deferred income tax expense.      

Net cash used in operating activities was $12.7 million for the three months ended March 31, 2018. This resulted principally from our net loss of $7.3 million, adjusted for non-cash charges of $3.3 million, and by cash used in our operating assets and liabilities of $8.7 million. Our operating assets decreased $0.6 million for accounts receivable related to API product sales, and $0.5 million for prepaid expenses primarily related to our ERP system, while inventory for API products and 503B increased by $2.0 million. Our operating liabilities decreased by $7.8 million mainly due to a decrease in accrued license fees and accrued inventory purchases. Our net non-cash charges during the three months ended March 31, 2018 primarily consisted of $2.7 million of stock-based compensation expense and $0.9 million depreciation and amortization expense.   

Net Cash Provided by (Used in) Investing Activities

Net cash provided by investing activities was $52.2 million for the three months ended March 31, 2019, compared to $56.8 million net cash used in the three months ended March 31, 2018. This was primarily due to cash obtained by the maturities of short-term investments, including commercial paper, corporate notes, and U.S. government bonds.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $1.0 million for the three months ended March 31, 2019, which was primarily consisted of net proceeds of $0.7 million from the issuance of debt to fund our Chinese operations and $0.3 million from the exercise of employee stock options.  

Contractual Obligations

A summary of our contractual obligations as of March 31, 2019 is as follows:

 

 

 

Payments Due by Period

 

 

 

 

 

 

 

Within

1 Year

 

 

1 to 3

years

 

 

3 to 5

years

 

 

More than

5 years

 

 

Total Amounts

Committed

 

 

 

(in thousands)

 

Operating leases

 

$

2,551

 

 

$

5,504

 

 

$

4,451

 

 

$

3,952

 

 

$

16,458

 

Long-term debt

 

 

1,535

 

 

 

 

 

 

50,000

 

 

 

 

 

 

51,535

 

Finance lease obligations

 

 

161

 

 

 

428

 

 

 

20

 

 

 

 

 

 

609

 

Licensing fees

 

 

654

 

 

 

 

 

 

 

 

 

 

 

 

654

 

 

 

$

4,901

 

 

$

5,932

 

 

$

54,471

 

 

$

3,952

 

 

$

69,256

 

 

The above table includes the Company’s operating leases and the amounts committed under those leases by each location: (1) The rental of our global headquarters in the Conventus Center for Collaborative Medicine in Buffalo, NY; (2) the rental of our research and development facility in the IC Development Centre in Hong Kong; (3) the rental of the Commercial Platform headquarters in Chicago, IL; (4) the rental of our clinical research and development facility in Cranford, NJ; (5) the rental of our clinical data management center in Taipei, Taiwan; (6) the rental of our Global Supply Chain distribution office in Houston, TX; (7) the rental of our Global Supply Chain API manufacturing facility in Chongqing, China; and (8) the rental of various other facilities and equipment located mainly in Buffalo, NY.

Off Balance Sheet Arrangements

We do not maintain any off-balance sheet partnerships, arrangements, or other relationships with unconsolidated entities or others, often referred to as structured finance or special purpose entities, which are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

31