Company Quick10K Filing
Assembly Biosciences
Price13.72 EPS-4
Shares26 P/E-4
MCap356 P/FCF-6
Net Debt-25 EBIT-97
TEV331 TEV/EBIT-3
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-04
10-Q 2019-09-30 Filed 2019-11-07
10-Q 2019-06-30 Filed 2019-08-05
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-28
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-07
10-K 2017-12-31 Filed 2018-03-08
10-Q 2017-09-30 Filed 2017-11-01
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-08
10-K 2016-12-31 Filed 2017-03-02
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-11
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-13
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-12
10-Q 2014-09-30 Filed 2014-11-17
10-Q 2014-06-30 Filed 2014-08-14
10-Q 2014-03-31 Filed 2014-05-14
10-K 2013-12-31 Filed 2014-03-31
10-Q 2013-09-30 Filed 2013-11-12
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-18
10-Q 2012-09-30 Filed 2012-11-13
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-14
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-04-13
8-K 2020-06-12
8-K 2020-06-11
8-K 2020-05-07
8-K 2020-03-04
8-K 2020-02-06
8-K 2020-01-01
8-K 2019-12-11
8-K 2019-11-11
8-K 2019-11-07
8-K 2019-10-28
8-K 2019-08-06
8-K 2019-08-05
8-K 2019-05-17
8-K 2019-05-09
8-K 2019-04-30
8-K 2019-04-17
8-K 2019-02-28
8-K 2018-11-08
8-K 2018-10-10
8-K 2018-08-08
8-K 2018-07-18
8-K 2018-07-11
8-K 2018-07-09
8-K 2018-06-20
8-K 2018-05-30
8-K 2018-05-07
8-K 2018-04-12
8-K 2018-04-02
8-K 2018-03-08
8-K 2018-01-24

ASMB 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1 - Nature of Business
Note 2 - Summary of Significant Accounting Policies and Recent Accounting Pronouncements
Note 3 - Investments in Marketable Securities
Note 4 - Property and Equipment, Net
Note 5 - Accrued Expenses
Note 6 - Stockholders' Equity
Note 7 - Stock Plans and Stock - Based Compensation
Note 8 - Collaboration Agreement
Note 9 - Milestones and Research Agreements
Note 10 - Leases
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.2 asmb-ex102_85.htm
EX-10.3 asmb-ex103_84.htm
EX-10.4 asmb-ex104_83.htm
EX-10.5 asmb-ex105_82.htm
EX-10.6 asmb-ex106_465.htm
EX-10.7 asmb-ex107_81.htm
EX-31.1 asmb-ex311_12.htm
EX-31.2 asmb-ex312_11.htm
EX-32.1 asmb-ex321_14.htm
EX-32.2 asmb-ex322_10.htm

Assembly Biosciences Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
0.30.20.20.10.10.02012201420172020
Assets, Equity
0.10.10.0-0.0-0.1-0.12016201720182020
Rev, G Profit, Net Income
0.20.10.10.0-0.0-0.12012201420172020
Ops, Inv, Fin

asmb-10q_20200331.htm
false Q1 0001426800 --12-31 P2Y3M18D P1Y9M18D P3Y P7Y P1Y P5Y P5Y P7Y4M24D P5Y7M6D 14.45 19.13 19.69 23.04 0.6638 0.8223 0.750 0.832 0.0046 0.0144 0.0224 0.0265 P5Y6M P7Y P5Y6M P7Y 0001426800 2020-01-01 2020-03-31 xbrli:shares 0001426800 2020-05-04 iso4217:USD 0001426800 2020-03-31 0001426800 2019-12-31 iso4217:USD xbrli:shares 0001426800 2019-01-01 2019-03-31 0001426800 2018-12-31 0001426800 2019-03-31 0001426800 us-gaap:CommonStockMember 2019-12-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001426800 us-gaap:RetainedEarningsMember 2019-12-31 0001426800 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001426800 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001426800 us-gaap:CommonStockMember 2020-03-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001426800 us-gaap:RetainedEarningsMember 2020-03-31 0001426800 us-gaap:CommonStockMember 2018-12-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001426800 us-gaap:RetainedEarningsMember 2018-12-31 0001426800 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001426800 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001426800 us-gaap:CommonStockMember 2019-03-31 0001426800 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001426800 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001426800 us-gaap:RetainedEarningsMember 2019-03-31 asmb:segment asmb:product 0001426800 asmb:PublicOfferingMember us-gaap:CommonStockMember 2019-12-01 2019-12-31 0001426800 asmb:PublicOfferingMember 2019-12-31 0001426800 us-gaap:WarrantMember 2020-01-01 2020-03-31 0001426800 us-gaap:WarrantMember 2019-01-01 2019-03-31 0001426800 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0001426800 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-03-31 0001426800 asmb:CommonStockSubjectToPurchaseUnderEmployeeStockPurchaseProgramMember 2020-01-01 2020-03-31 0001426800 asmb:CommonStockSubjectToPurchaseUnderEmployeeStockPurchaseProgramMember 2019-01-01 2019-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0001426800 us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2020-03-31 0001426800 us-gaap:CashEquivalentsMember 2020-03-31 0001426800 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2020-03-31 0001426800 us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember 2020-03-31 0001426800 us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember 2020-03-31 0001426800 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2020-03-31 0001426800 us-gaap:ShortTermInvestmentsMember 2020-03-31 0001426800 us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2019-12-31 0001426800 us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember 2019-12-31 0001426800 us-gaap:CommercialPaperMember us-gaap:CashEquivalentsMember 2019-12-31 0001426800 us-gaap:CashEquivalentsMember 2019-12-31 0001426800 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-12-31 0001426800 us-gaap:AssetBackedSecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-12-31 0001426800 us-gaap:USTreasurySecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-12-31 0001426800 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2019-12-31 0001426800 us-gaap:ShortTermInvestmentsMember 2019-12-31 0001426800 us-gaap:ShortTermInvestmentsMember 2020-01-01 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-03-31 0001426800 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel2Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel3Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001426800 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel1Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 asmb:USAndForeignCommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001426800 us-gaap:EquipmentMember 2020-03-31 0001426800 us-gaap:EquipmentMember 2019-12-31 0001426800 us-gaap:OfficeEquipmentMember 2020-03-31 0001426800 us-gaap:OfficeEquipmentMember 2019-12-31 0001426800 us-gaap:LeaseholdImprovementsMember 2020-03-31 0001426800 us-gaap:LeaseholdImprovementsMember 2019-12-31 0001426800 us-gaap:ConstructionInProgressMember 2020-03-31 0001426800 us-gaap:EquipmentMember srt:MinimumMember 2020-01-01 2020-03-31 0001426800 us-gaap:EquipmentMember srt:MaximumMember 2020-01-01 2020-03-31 0001426800 us-gaap:OfficeEquipmentMember 2020-01-01 2020-03-31 0001426800 us-gaap:LeaseholdImprovementsMember srt:MinimumMember 2020-01-01 2020-03-31 0001426800 us-gaap:LeaseholdImprovementsMember srt:MaximumMember 2020-01-01 2020-03-31 0001426800 2017-12-31 0001426800 asmb:AtMarketOfferingsMember srt:MaximumMember 2017-12-31 0001426800 asmb:AtMarketOfferingsMember 2020-01-01 2020-03-31 0001426800 asmb:PublicOfferingMember 2019-12-01 2019-12-31 0001426800 us-gaap:OverAllotmentOptionMember 2019-12-01 2019-12-31 xbrli:pure 0001426800 srt:MaximumMember 2019-12-01 2019-12-31 0001426800 2019-12-01 2019-12-31 0001426800 asmb:WarrantsIssuedOneMember 2020-01-01 2020-03-31 0001426800 asmb:WarrantsIssuedTwoMember 2020-01-01 2020-03-31 0001426800 asmb:WarrantsIssuedOneMember 2020-03-31 0001426800 asmb:WarrantsIssuedTwoMember 2020-03-31 0001426800 asmb:WarrantsIssuedOneMember 2019-01-01 2019-12-31 0001426800 asmb:WarrantsIssuedTwoMember 2019-01-01 2019-12-31 0001426800 asmb:WarrantsIssuedOneMember 2019-12-31 0001426800 asmb:WarrantsIssuedTwoMember 2019-12-31 0001426800 2018-05-31 0001426800 2019-05-31 0001426800 asmb:TwoThousandEighteenEmployeeStockPurchasePlanMember 2020-03-31 0001426800 us-gaap:EmployeeStockOptionMember 2019-12-31 0001426800 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-03-31 0001426800 us-gaap:EmployeeStockOptionMember 2020-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2020-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember srt:ExecutiveOfficerMember 2017-12-01 2017-12-31 0001426800 us-gaap:RestrictedStockUnitsRSUMember srt:ExecutiveOfficerMember 2019-09-01 2019-09-30 0001426800 us-gaap:RestrictedStockUnitsRSUMember srt:ExecutiveOfficerMember 2020-01-01 2020-03-31 0001426800 srt:MinimumMember 2020-03-31 0001426800 srt:MaximumMember 2020-03-31 0001426800 srt:MinimumMember 2019-03-31 0001426800 srt:MaximumMember 2019-03-31 0001426800 srt:MinimumMember 2020-01-01 2020-03-31 0001426800 srt:MaximumMember 2020-01-01 2020-03-31 0001426800 srt:MinimumMember 2019-01-01 2019-03-31 0001426800 srt:MaximumMember 2019-01-01 2019-03-31 0001426800 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-03-31 0001426800 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-03-31 0001426800 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-03-31 0001426800 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-03-31 0001426800 us-gaap:CollaborativeArrangementMember 2017-02-10 2017-02-10 0001426800 asmb:MilestoneScenarioOneMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 asmb:Milestone 0001426800 asmb:MilestoneScenarioTwoMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 0001426800 asmb:AllerganPharmaceuticalsInternationalLimitedMember 2017-02-10 2017-02-10 0001426800 us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 0001426800 us-gaap:CollaborativeArrangementMember 2019-01-01 2019-03-31 0001426800 us-gaap:CollaborativeArrangementMember 2020-03-31 0001426800 us-gaap:CollaborativeArrangementMember 2019-12-31 0001426800 us-gaap:LicenseAgreementTermsMember 2020-03-31 0001426800 us-gaap:LicenseAgreementTermsMember 2020-01-01 2020-03-31

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2020

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________to___________.

 

Commission file number: 001-35005

 

ASSEMBLY BIOSCIENCES, INC.

(Exact name of Registrant as specified in its charter)

 

Delaware

20-8729264

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

 

 

331 Oyster Point Blvd., Fourth Floor

 

South San Francisco, California

94080

(Address of principal executive offices)

(zip code)

 

(833) 509-4583

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001

ASMB

The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes         No       

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes            No       

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

Large Accelerated Filer

 

Accelerated Filer

Non-accelerated Filer

 

Smaller Reporting Company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     

 

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No   

 

As of May 4, 2020, there were 32,722,365 shares of the registrant’s common stock outstanding.

 

 


Index

 

 

 

Page

Number

 

 

 

PART I:

FINANCIAL INFORMATION

1

 

 

 

Item 1.

Financial Statements

1

 

 

 

 

Condensed Consolidated Balance Sheets at March 31, 2020 (unaudited) and December 31, 2019

1

 

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2020 and 2019 (unaudited)

2

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (unaudited)

3

 

 

 

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2020 and 2019 (unaudited)

4

 

 

 

 

Notes to the Condensed Consolidated Financial Statements (unaudited)

5

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

27

 

 

 

Item 4.

Controls and Procedures

27

 

 

 

PART II:

OTHER INFORMATION

28

 

 

 

Item 1.

Legal Proceedings

28

 

 

 

Item 1A.

Risk Factors

28

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

59

 

 

 

Item 3.

Defaults Upon Senior Securities

59

 

 

 

Item 4.

Mine Safety Disclosures

59

 

 

 

Item 5.

Other Information

59

 

 

 

Item 6.

Exhibits

60

 

 

SIGNATURES

61

 

 

 


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ASSEMBLY BIOSCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except for share amounts and par value)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

42,326

 

 

$

46,732

 

Marketable securities

 

 

206,803

 

 

 

227,311

 

Accounts receivable from collaboration

 

 

3,055

 

 

 

3,374

 

Prepaid expenses and other current assets

 

 

4,568

 

 

 

5,363

 

Total current assets

 

 

256,752

 

 

 

282,780

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,780

 

 

 

1,830

 

Operating lease right-of-use (ROU) assets

 

 

11,479

 

 

 

11,975

 

Other assets

 

 

1,661

 

 

 

1,684

 

Indefinite-lived intangible asset

 

 

29,000

 

 

 

29,000

 

Goodwill

 

 

12,638

 

 

 

12,638

 

Total assets

 

$

313,310

 

 

$

339,907

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,104

 

 

$

1,731

 

Accrued clinical expenses

 

 

4,633

 

 

 

4,826

 

Other accrued expenses

 

 

4,430

 

 

 

8,286

 

Deferred revenue - short-term

 

 

6,715

 

 

 

6,411

 

Operating lease liabilities - short-term

 

 

3,264

 

 

 

3,186

 

Total current liabilities

 

 

21,146

 

 

 

24,440

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities

 

 

2,531

 

 

 

2,531

 

Deferred revenue - long-term

 

 

29,326

 

 

 

30,637

 

Operating lease liabilities - long-term

 

 

8,539

 

 

 

9,082

 

Total liabilities

 

 

61,542

 

 

 

66,690

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 32,624,725 and 32,558,307 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively

 

 

32

 

 

 

32

 

Additional paid-in capital

 

 

717,898

 

 

 

712,807

 

Accumulated other comprehensive loss

 

 

(86

)

 

 

(201

)

Accumulated deficit

 

 

(466,076

)

 

 

(439,421

)

Total stockholders' equity

 

 

251,768

 

 

 

273,217

 

Total liabilities and stockholders' equity

 

$

313,310

 

 

$

339,907

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

1


ASSEMBLY BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands except for share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Collaboration revenue

 

$

4,081

 

 

$

3,885

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

23,046

 

 

 

22,704

 

General and administrative

 

 

8,729

 

 

 

9,517

 

Total operating expenses

 

 

31,775

 

 

 

32,221

 

Loss from operations

 

 

(27,694

)

 

 

(28,336

)

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

Interest and other income, net

 

 

1,039

 

 

 

1,277

 

Total other income

 

 

1,039

 

 

 

1,277

 

Loss before income taxes

 

 

(26,655

)

 

 

(27,059

)

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

-

 

 

 

7

 

Net loss

 

$

(26,655

)

 

$

(27,052

)

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities, net of tax

 

 

115

 

 

 

108

 

Comprehensive loss

 

$

(26,540

)

 

$

(26,944

)

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.76

)

 

$

(1.05

)

Weighted average common shares outstanding, basic and diluted

 

 

35,079,756

 

 

 

25,668,798

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

2


ASSEMBLY BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(26,655

)

 

$

(27,052

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

115

 

 

 

135

 

Stock-based compensation

 

 

4,924

 

 

 

6,577

 

Net accretion and amortization of investments in marketable securities

 

 

(135

)

 

 

(592

)

Non-cash rent expense

 

 

1,151

 

 

 

1,091

 

Deferred income tax benefit

 

 

 

 

 

(7

)

Loss on disposal of fixed assets

 

 

 

 

 

102

 

Other

 

 

 

 

 

(1

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable from collaboration

 

 

319

 

 

 

(557

)

Prepaid expenses and other current assets

 

 

795

 

 

 

(2,558

)

Other assets

 

 

23

 

 

 

1,687

 

Accounts payable

 

 

373

 

 

 

(1,266

)

Accrued clinical expenses

 

 

(193

)

 

 

3,077

 

Other accrued expenses

 

 

(3,808

)

 

 

(2,679

)

Deferred revenue

 

 

(1,007

)

 

 

(859

)

Operating lease liabilities

 

 

(1,120

)

 

 

(1,037

)

Net cash used in operating activities

 

 

(25,218

)

 

 

(23,939

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(65

)

 

 

(1,488

)

Purchases of marketable securities

 

 

(44,242

)

 

 

(49,030

)

Proceeds from maturities of marketable securities

 

 

55,000

 

 

 

61,453

 

Proceeds from sale of marketable securities

 

 

10,000

 

 

 

500

 

Net cash provided by investing activities

 

 

20,693

 

 

 

11,435

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

119

 

 

 

140

 

Net cash provided by financing activities

 

 

119

 

 

 

140

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

(4,406

)

 

 

(12,364

)

Cash and cash equivalents at the beginning of the period

 

 

46,732

 

 

 

41,471

 

Cash and cash equivalents at the end of the period

 

$

42,326

 

 

$

29,107

 

Supplemental non-cash investing and financing activities

 

 

 

 

 

 

 

 

Operating lease liabilities arising from obtaining ROU assets

 

$

362

 

 

$

13,933

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

3


ASSEMBLY BIOSCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands except for share amounts)

(Unaudited)

 

 

 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Comprehensive

Loss

 

 

Accumulated

Deficit

 

 

Stockholders'

Equity

 

Balance as of December 31, 2019

 

 

32,558,307

 

 

$

32

 

 

$

712,807

 

 

$

(201

)

 

$

(439,421

)

 

$

273,217

 

Issuance of common stock upon exercise of stock options

 

 

16,834

 

 

 

 

 

 

119

 

 

 

 

 

 

 

 

 

119

 

Issuance of shares of common stock for settlement of restricted stock units (RSUs)

 

 

49,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

115

 

 

 

 

 

 

115

 

Stock-based compensation

 

 

 

 

 

 

 

 

4,972

 

 

 

 

 

 

 

 

 

4,972

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,655

)

 

 

(26,655

)

Balance as of March 31, 2020

 

 

32,624,725

 

 

$

32

 

 

$

717,898

 

 

$

(86

)

 

$

(466,076

)

 

$

251,768

 

 

 

 

Common Stock

 

 

Additional

 

 

Accumulated

Other

 

 

 

 

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Paid-in

Capital

 

 

Comprehensive

Loss

 

 

Accumulated

Deficit

 

 

Stockholders'

Equity

 

Balance as of December 31, 2018

 

 

25,495,425

 

 

$

25

 

 

$

552,762

 

 

$

(347

)

 

$

(341,787

)

 

$

210,653

 

Issuance of common stock upon exercise of stock options

 

 

21,000

 

 

 

 

 

 

140

 

 

 

 

 

 

 

 

 

140

 

Issuance of shares of common stock for settlement of RSUs

 

 

33,332

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Settlement of RSUs for cash

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

(4

)

Unrealized gain on marketable securities, net of tax

 

 

 

 

 

 

 

 

 

 

 

108

 

 

 

 

 

 

108

 

Stock-based compensation

 

 

 

 

 

 

 

 

6,556

 

 

 

 

 

 

 

 

 

6,556

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,052

)

 

 

(27,052

)

Balance as of March 31, 2019

 

 

25,549,757

 

 

$

26

 

 

$

559,453

 

 

$

(239

)

 

$

(368,839

)

 

$

190,401

 

 

See Accompanying Notes to Condensed Consolidated Financial Statements

4


ASSEMBLY BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1 - Nature of Business

Overview

Assembly Biosciences, Inc., together with its subsidiaries (Assembly or the Company), incorporated in Delaware in October 2005, is a clinical-stage biotechnology company advancing two innovative programs: a novel class of oral therapeutic candidates targeting chronic hepatitis B virus (HBV) infection and a novel class of oral live microbial biotherapeutic candidates, which are designed to treat disorders associated with the microbiome. The Company operates in one segment and is headquartered in South San Francisco, California, with operations in South San Francisco, California and Groton, Connecticut. Prior to January 1, 2020, the Company was headquartered in Carmel, Indiana, and the Company expects to continue maintaining this office for a period of time.

The Company’s HBV Cure program is pursuing multiple drug candidates that inhibit the HBV lifecycle and block the generation of covalently closed circular DNA (cccDNA), with the aim of increasing the current low cure rates for patients with chronic HBV infection. Assembly has discovered several novel core inhibitors, which are small molecules that directly target and allosterically modify the HBV core protein.

The Company’s Microbiome program is centered on a fully integrated platform that includes a biological function-based strain isolation, identification, characterization and selection process, methods for strain purification and growth under conditions compliant with current Good Manufacturing Practice (cGMP) requirements. That platform is complemented by a licensed patented delivery system that the Company calls GEMICEL®, which is designed to allow for targeted oral delivery of live biologic and conventional therapies to the lower gastrointestinal (GI) tract. Using the Company’s microbiome platform, the Company is exploring product candidates for multiple disease indications, including ulcerative colitis (UC), Crohn’s disease and irritable bowel syndrome (IBS) with Allergan Pharmaceuticals International Limited (Allergan) in connection with its Research, Development, Collaboration and License Agreement (the Collaboration Agreement). Assembly is also exploring the microbiome in connection with immune-mediated and metabolic disorders and oncology, which indications the Company will either pursue internally or in collaboration with other parties.

Liquidity

The Company has not derived any revenue from product sales to date and currently has no approved products. Once a product has been developed, it will need to be approved for sale by the U.S. Food and Drug Administration (FDA) or an applicable foreign regulatory agency. Since inception, the Company’s operations have been financed primarily through the sale of equity securities, proceeds from the exercise of warrants and stock options, issuance of debt and an upfront payment related to the Collaboration Agreement. The Company has incurred losses from operations since inception and expects to continue to incur substantial losses for the next several years as it continues its product development efforts. Management believes the Company currently has sufficient funds to meet its operating requirements for at least the next 12 months following the date that these unaudited condensed consolidated interim financial statements are issued. If the Company cannot generate significant cash from its operations, it intends to obtain any additional funding it requires through strategic relationships, public or private equity or debt financings, grants or other arrangements (see Note 6 for recent sales of common stock). The Company cannot assure such funding will be available on reasonable terms, if at all. Market volatility resulting from the COVID-19 pandemic or other factors could also adversely impact the Company’s ability to access capital when and as needed.

If the Company is unable to generate sufficient revenue from the Collaboration Agreement, secure additional sources of funding or receive full and timely collections of amounts due, it may be necessary to significantly reduce the current rate of spending through reductions in staff and delaying, scaling back, or stopping certain research and development programs, including more costly clinical trials.

 

 

5


ASSEMBLY BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

Note 2 - Summary of Significant Accounting Policies and Recent Accounting Pronouncements

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC). In management’s opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and include normal recurring adjustments necessary for the fair presentation of the Company’s financial position and its results of operations and comprehensive loss and its cash flows for the periods presented. These statements do not include all disclosures required by U.S. GAAP and should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the fiscal year ended December 31, 2019, which are contained in the Company’s Annual Report on Form 10-K as filed with the SEC on March 4, 2020. The results for the three months ended March 31, 2020 are not necessarily indicative of results to be expected for the entire year ending December 31, 2020 or future operating periods.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates inherent in the preparation of the accompanying unaudited condensed consolidated financial statements include revenue recognition, clinical trial accruals, recoverability and useful lives (indefinite or finite) of intangible assets, assessment of impairment of goodwill, provisions for income taxes, amounts receivable and recognized as revenue under the Collaboration Agreement, measurement of operating lease liabilities, and the fair value of stock options, stock appreciation rights, and restricted stock units (RSUs) granted to employees, directors and consultants.

The Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.

Other Risks and Uncertainties

In March 2020, the World Health Organization declared the global novel coronavirus disease (COVID-19) outbreak a pandemic. To date, the Company’s operations have not been significantly impacted by the COVID-19 outbreak. However, the Company cannot at this time predict the specific extent, duration, or full impact that the COVID-19 outbreak will have on its condensed consolidated financial condition and operations. The impact of the COVID-19 coronavirus outbreak on the financial performance of the Company will depend on future developments, including the duration and spread of the outbreak and related governmental advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are highly uncertain. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s results may be adversely affected.

Income Taxes

On March 18, 2020, the Families First Coronavirus Response Act (“FFCR Act”), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The FFCR Act and CARES Act did not

6


ASSEMBLY BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

have a material impact on the Company’s condensed consolidated financial statements as of March 31, 2020; however, the Company continues to examine the impacts the FFCR Act and CARES Act may have on its business, results of operations, financial condition and liquidity.

Net Loss per Share

Basic net loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity unless inclusion of such shares would be anti-dilutive. Since the Company has only incurred losses, basic and diluted net loss per share is the same.

 

In December 2019, the Company sold 6,287,878 shares of common stock as well as pre-funded warrants to purchase up to 2,424,242 shares of common stock (see Note 6). The pre-funded warrants are exercisable for shares of common stock at a price of $0.001 per share. The shares of common stock into which the pre-funded warrants may be exercised are considered outstanding for the purposes of computing earnings per share because the shares may be issued for little or no consideration, they are fully vested, and are exercisable after the original issuance date.

 

A reconciliation of the numerators and the denominators of the basic and diluted net loss per common share computations is as follows (in thousands, except per share amounts):

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Numerator:

 

 

 

 

 

 

 

 

Net loss

 

 

(26,655

)

 

 

(27,052

)

Denominator:

 

 

 

 

 

 

 

 

Weighted average common shares outstanding for diluted net (loss) income per share

 

 

35,079,756

 

 

 

25,668,798

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

Basic

 

 

(0.76

)

 

 

(1.05

)

Diluted

 

 

(0.76

)

 

 

(1.05

)

 

 

Securities that could potentially dilute loss per share in the future that were not included in the computation of diluted loss per share  because including them would have been antidilutive are as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Warrants to purchase common stock

 

 

15,296

 

 

 

15,296

 

Options to purchase common stock

 

 

6,370,396

 

 

 

5,111,590

 

Common stock subject to purchase under our ESPP

 

 

32,940

 

 

 

22,432

 

Unvested RSUs

 

 

999,926

 

 

 

607,656

 

Total

 

 

7,418,558

 

 

 

5,756,974

 

 

Adoption of Recent Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the amendments in ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The updated guidance requires a prospective adoption. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (ASU 2019-10), which deferred the effective

7


ASSEMBLY BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

date of this standard for all entities except SEC filers that are not smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted ASU 2017-04 effective January 1, 2020. The adoption of this standard had no impact on the Company’s condensed consolidated financial statements.

On January 1, 2020, the Company adopted ASU 2018-13, Fair Value Measurement (Topic 820):  Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The adoption of this standard had no impact on the Company’s condensed consolidated financial statements and related disclosures.

On January 1, 2020, the Company adopted ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. The standard adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of Topic 606 and requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. Amendments in the standard should be applied retrospectively to the date of initial application of Topic 606, but entities may elect to apply the amendments in Topic 808 retrospectively either to all contracts or only to contracts that are not completed at the date of initial application of Topic 606, and should disclose the election. An entity may also elect to apply the practical expedient for contract modifications that is permitted for entities using the modified retrospective transition method in Topic 606. The adoption of this standard had no impact on the Company’s condensed consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12). The ASU eliminates certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted in an interim or annual period. Entities that elect to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, entities that elect early adoption must adopt all the amendments in the same period. Entities will apply the guidance prospectively, except for certain amendments. The Company early adopted ASU 2019-12 effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements and related disclosures.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. In April, May and November 2019, the FASB issued additional amendments to the new guidance related to transition and clarification. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date of this standard for all entities except SEC filers that are not smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating this new accounting standard but currently does not expect the adoption of this standard to have a material impact on its condensed consolidated financial statements and related disclosures.

8


ASSEMBLY BIOSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

Note 3 – Investments in Marketable Securities

The carrying amounts of cash equivalents and marketable securities approximate their fair value based upon quoted market prices. Certain of the Company’s financial instruments are not measured at fair value on a recurring basis, but are recorded at amounts that approximate their fair value due to their liquid or short-term nature, such as cash, accounts receivable, accounts payable, accrued expenses, lease liability-short term and deferred revenue-short term.

The Company uses the following three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial instruments:

Level 1: Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

Level 2: Quoted prices for similar instruments that are directly or indirectly observable in the marketplace.

Level 3: Significant unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

Investments in marketable securities consisted of the following (in thousands):

 

 

 

March 31, 2020

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gain (1)

 

 

Gross

Unrealized

Loss (1)

 

 

Fair Value

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

39,010