10-Q 1 cers-20220930.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2022

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 000-21937

 

CERUS CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

68-0262011

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1220 Concord Avenue, Suite 600

Concord, California

 

94520

(Address of principal executive offices)

 

(Zip Code)

 

(925) 288-6000

(Registrant’s telephone number, including area code)

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

 

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

CERS

The Nasdaq Stock Market LLC

 

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. YesNo

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). YesNo

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 the definitions 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 the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesNo

As of October 20, 2022, there were 177,420,943 shares of the registrant’s common stock outstanding.

 

 

 

 


CERUS CORPORATION

FORM 10-Q

For the Quarterly Period Ended September 30, 2022

TABLE OF CONTENTS

 

PART I

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

1

 

Condensed Consolidated Balance Sheets – September 30, 2022 and December 31, 2021

1

 

Condensed Consolidated Statements of Operations – Three and nine months ended September 30, 2022 and 2021

2

 

Condensed Consolidated Statements of Comprehensive Loss – Three and nine months ended September 30, 2022 and 2021

3

 

Condensed Consolidated Statements of Stockholders’ Equity – Three and nine months ended September 30, 2022 and 2021

4

 

Condensed Consolidated Statements of Cash Flows – Nine months ended September 30, 2022 and 2021

6

 

Notes to Condensed Consolidated Financial Statements

7

Item 2.

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

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

Item 4.

Controls and Procedures

31

 

 

 

PART II

 OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

32

Item 1A.

Risk Factors

32

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

67

Item 3.

Defaults Upon Senior Securities

67

Item 4.

Mine Safety Disclosures

67

Item 5.

Other Information

67

Item 6.

Exhibits

68

 

 

SIGNATURES

69

 

 

 

 


PART I: FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CERUS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

28,875

 

 

$

48,759

 

Short-term investments

 

 

74,952

 

 

 

80,600

 

Accounts receivable

 

 

28,151

 

 

 

25,129

 

Current inventories, net

 

 

28,329

 

 

 

26,793

 

Prepaid and other current assets

 

 

4,424

 

 

 

5,821

 

Total current assets

 

 

164,731

 

 

 

187,102

 

Non-current assets:

 

 

 

 

 

 

Property and equipment, net

 

 

10,647

 

 

 

12,208

 

Operating lease right-of-use assets

 

 

12,890

 

 

 

12,971

 

Goodwill

 

 

1,316

 

 

 

1,316

 

Restricted cash

 

 

1,998

 

 

 

2,285

 

Other assets

 

 

23,821

 

 

 

21,617

 

Total assets

 

$

215,403

 

 

$

237,499

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

29,815

 

 

$

35,608

 

Accrued liabilities

 

 

20,059

 

 

 

25,673

 

Debt – current

 

 

42,380

 

 

 

14,697

 

Operating lease liabilities – current

 

 

2,011

 

 

 

1,905

 

Deferred product revenue

 

 

754

 

 

 

673

 

Total current liabilities

 

 

95,019

 

 

 

78,556

 

Non-current liabilities:

 

 

 

 

 

 

Debt – non-current

 

 

27,357

 

 

 

54,724

 

Operating lease liabilities – non-current

 

 

15,703

 

 

 

16,260

 

Other non-current liabilities

 

 

3,251

 

 

 

2,342

 

Total liabilities

 

 

141,330

 

 

 

151,882

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock

 

 

177

 

 

 

174

 

Additional paid-in capital

 

 

1,069,629

 

 

 

1,048,936

 

Accumulated other comprehensive loss

 

 

(3,189

)

 

 

(149

)

Accumulated deficit

 

 

(993,497

)

 

 

(964,342

)

Total Cerus Corporation stockholders' equity

 

 

73,120

 

 

 

84,619

 

Noncontrolling interest

 

 

953

 

 

 

998

 

Total liabilities and stockholders' equity

 

$

215,403

 

 

$

237,499

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

1


CERUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

(in thousands, except per share data)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Product revenue

$

39,571

 

 

$

36,131

 

 

$

118,014

 

 

$

90,994

 

Cost of product revenue

 

17,662

 

 

 

17,582

 

 

 

55,456

 

 

 

44,000

 

Gross profit on product revenue

 

21,909

 

 

 

18,549

 

 

 

62,558

 

 

 

46,994

 

Government contract revenue

 

6,772

 

 

 

5,970

 

 

 

18,980

 

 

 

18,436

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

16,220

 

 

 

15,288

 

 

 

45,493

 

 

 

48,119

 

Selling, general and administrative

 

19,908

 

 

 

20,357

 

 

 

60,175

 

 

 

59,285

 

Total operating expenses

 

36,128

 

 

 

35,645

 

 

 

105,668

 

 

 

107,404

 

Loss from operations

 

(7,447

)

 

 

(11,126

)

 

 

(24,130

)

 

 

(41,974

)

Non-operating expense, net:

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange gain (loss)

 

234

 

 

 

(164

)

 

 

(68

)

 

 

(442

)

Interest expense

 

(1,406

)

 

 

(1,279

)

 

 

(4,134

)

 

 

(3,589

)

Other income (expense), net

 

165

 

 

 

205

 

 

 

(647

)

 

 

998

 

Total non-operating expense, net

 

(1,007

)

 

 

(1,238

)

 

 

(4,849

)

 

 

(3,033

)

Loss before income taxes

 

(8,454

)

 

 

(12,364

)

 

 

(28,979

)

 

 

(45,007

)

Provision for income taxes

 

67

 

 

 

73

 

 

 

221

 

 

 

248

 

Net loss

 

(8,521

)

 

 

(12,437

)

 

 

(29,200

)

 

 

(45,255

)

Net loss attributable to noncontrolling interest

 

(39

)

 

 

 

 

 

(45

)

 

 

 

Net loss attributable to Cerus Corporation

$

(8,482

)

 

$

(12,437

)

 

$

(29,155

)

 

$

(45,255

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Cerus Corporation

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

(0.05

)

 

$

(0.07

)

 

$

(0.17

)

 

$

(0.27

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

177,236

 

 

 

171,904

 

 

 

176,231

 

 

 

170,666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

2


CERUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

UNAUDITED

(in thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(8,521

)

 

$

(12,437

)

 

$

(29,200

)

 

$

(45,255

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized losses on available-for-sale investments, net of taxes

 

 

(1,036

)

 

 

(136

)

 

 

(3,040

)

 

 

(493

)

Comprehensive loss

 

 

(9,557

)

 

 

(12,573

)

 

 

(32,240

)

 

 

(45,748

)

Comprehensive loss attributable to noncontrolling interest

 

 

(39

)

 

 

 

 

 

(45

)

 

 

 

Total comprehensive loss attributable to Cerus Corporation

 

$

(9,518

)

 

$

(12,573

)

 

$

(32,195

)

 

$

(45,748

)

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

3


CERUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

UNAUDITED

(in thousands)

 

 

Cerus Corporation Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balances as of December 31, 2021

 

 

173,670

 

 

$

174

 

 

$

1,048,936

 

 

$

(149

)

 

$

(964,342

)

 

$

998

 

 

$

85,617

 

Issuance of common stock from exercise of stock options,
   vesting of restricted stock units, and ESPP purchases

 

 

3,134

 

 

 

3

 

 

 

2,135

 

 

 

 

 

 

 

 

 

 

 

 

2,138

 

Stock-based compensation

 

 

 

 

 

 

 

 

6,426

 

 

 

 

 

 

 

 

 

 

 

 

6,426

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(1,486

)

 

 

 

 

 

 

 

 

(1,486

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,284

)

 

 

 

 

 

(12,284

)

Balances as of March 31, 2022

 

 

176,804

 

 

$

177

 

 

$

1,057,497

 

 

$

(1,635

)

 

$

(976,626

)

 

$

998

 

 

$

80,411

 

Issuance of common stock from exercise of stock options and
   vesting of restricted stock units

 

 

274

 

 

 

 

 

 

256

 

 

 

 

 

 

 

 

 

 

 

 

256

 

Stock-based compensation

 

 

 

 

 

 

 

 

5,007

 

 

 

 

 

 

 

 

 

 

 

 

5,007

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(518

)

 

 

 

 

 

 

 

 

(518

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,389

)

 

 

(6

)

 

 

(8,395

)

Balances as of June 30, 2022

 

$

177,078

 

 

$

177

 

 

$

1,062,760

 

 

$

(2,153

)

 

$

(985,015

)

 

$

992

 

 

$

76,761

 

Issuance of common stock from exercise of stock options,
   vesting of restricted stock units, and ESPP purchases

 

 

325

 

 

 

 

 

 

1,101

 

 

 

 

 

 

 

 

 

 

 

 

1,101

 

Stock-based compensation

 

 

 

 

 

 

 

 

5,768

 

 

 

 

 

 

 

 

 

 

 

 

5,768

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(1,036

)

 

 

 

 

 

 

 

 

(1,036

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,482

)

 

 

(39

)

 

 

(8,521

)

Balances as of September 30, 2022

 

 

177,403

 

 

$

177

 

 

$

1,069,629

 

 

$

(3,189

)

 

$

(993,497

)

 

$

953

 

 

$

74,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4


 

 

Cerus Corporation Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balances as of December 31, 2020

 

 

168,170

 

 

$

168

 

 

$

1,012,932

 

 

$

674

 

 

$

(909,968

)

 

$

 

 

$

103,806

 

Issuance of common stock from exercise of stock options,
   vesting of restricted stock units, and ESPP purchases

 

 

2,621

 

 

 

 

 

 

1,171

 

 

 

 

 

 

 

 

 

 

 

 

1,171

 

Stock-based compensation

 

 

 

 

 

 

 

 

5,333

 

 

 

 

 

 

 

 

 

 

 

 

5,333

 

Other comprehensive loss