Company Quick10K Filing
Sorrento Therapeutics
Price2.12 EPS-2
Shares140 P/E-1
MCap298 P/FCF-2
Net Debt267 EBIT-252
TEV565 TEV/EBIT-2
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-03
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-15
10-K 2018-12-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-16
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-15
10-K 2016-12-31 Filed 2017-03-22
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-08
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-15
10-Q 2015-09-30 Filed 2015-11-16
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-05
10-K 2014-12-31 Filed 2015-03-16
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-14
10-K 2013-12-31 Filed 2014-04-01
10-Q 2013-09-30 Filed 2013-11-14
10-Q 2013-06-30 Filed 2013-08-13
10-Q 2013-03-31 Filed 2013-05-15
10-K 2012-12-31 Filed 2013-03-25
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-15
10-K 2011-12-31 Filed 2012-03-30
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-12
10-K 2010-12-31 Filed 2011-03-18
10-Q 2010-09-30 Filed 2010-11-08
10-Q 2010-06-30 Filed 2010-08-12
10-Q 2010-03-31 Filed 2010-05-14
10-K 2009-12-31 Filed 2010-03-25
8-K 2020-05-21 Other Events, Exhibits
8-K 2020-05-15 Other Events, Exhibits
8-K 2020-04-27 Enter Agreement, Leave Agreement, Exhibits
8-K 2020-03-31 Enter Agreement
8-K 2020-03-20 Other Events, Exhibits
8-K 2020-03-05 Other Events
8-K 2020-02-27 Other Events, Exhibits
8-K 2020-02-10 Enter Agreement, Exhibits
8-K 2020-01-27 Other Events, Exhibits
8-K 2020-01-10 Regulation FD, Exhibits
8-K 2019-12-16 Officers, Exhibits
8-K 2019-12-06 Enter Agreement, Off-BS Arrangement, Sale of Shares, Officers, Exhibits
8-K 2019-11-25 Regulation FD, Exhibits
8-K 2019-10-09 Other Events, Exhibits
8-K 2019-10-07 Enter Agreement, Other Events, Exhibits
8-K 2019-10-01 Enter Agreement, Exhibits
8-K 2019-10-01 Enter Agreement, Exhibits
8-K 2019-09-23 Other Events, Exhibits
8-K 2019-09-20 Officers, Shareholder Vote, Exhibits
8-K 2019-08-12 Other Events
8-K 2019-08-12 Other Events, Exhibits
8-K 2019-07-02 Other Events, Exhibits
8-K 2019-06-28 Enter Agreement, Other Events, Exhibits
8-K 2019-06-20 Other Events, Exhibits
8-K 2019-06-19 Regulation FD, Other Events, Exhibits
8-K 2019-06-17 Leave Agreement
8-K 2019-06-17 Other Events, Exhibits
8-K 2019-06-12 Regulation FD, Exhibits
8-K 2019-06-05 Earnings, Other Events, Exhibits
8-K 2019-06-04 Other Events, Exhibits
8-K 2019-05-21 Regulation FD, Exhibits
8-K 2019-05-13 Earnings, Regulation FD
8-K 2019-05-03 Enter Agreement, Off-BS Arrangement, Sale of Shares, Exhibits
8-K 2019-04-16 Regulation FD, Exhibits
8-K 2019-04-15 Regulation FD, Exhibits
8-K 2019-04-03 Regulation FD
8-K 2019-03-18 Enter Agreement, M&A, Other Events, Exhibits
8-K 2019-02-14 Earnings, Regulation FD
8-K 2019-01-23 Other Events
8-K 2019-01-22 Regulation FD, Exhibits
8-K 2018-11-13 Enter Agreement, Off-BS Arrangement
8-K 2018-11-08 Other Events, Exhibits
8-K 2018-09-07 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-08-24 Officers, Shareholder Vote, Exhibits
8-K 2018-06-13 Enter Agreement, Off-BS Arrangement, Sale of Shares, Regulation FD, Other Events, Exhibits
8-K 2018-04-27 Enter Agreement, Exhibits
8-K 2018-04-16 Amend Bylaw
8-K 2018-04-05 Regulation FD, Exhibits
8-K 2018-03-26 Enter Agreement, Other Events, Exhibits
8-K 2018-03-16 Officers, Exhibits
8-K 2018-02-28 Regulation FD, Exhibits
8-K 2018-02-05 Regulation FD, Exhibits
8-K 2017-09-30

SRNE 10Q Quarterly Report

Part I. Financial Information
Item 1.Consolidated Financial Statements.
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 srne-ex102_166.htm
EX-10.3 srne-ex103_167.htm
EX-31.1 srne-ex311_10.htm
EX-31.2 srne-ex312_9.htm
EX-32.1 srne-ex321_8.htm

Sorrento Therapeutics Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
62550037525012502012201420172020
Assets, Equity
1257831-16-63-1102012201420172020
Rev, G Profit, Net Income
9566378-21-502012201420172020
Ops, Inv, Fin

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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 001-36150  

SORRENTO THERAPEUTICS, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

33-0344842

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification Number)

 

4955 Directors Place

San Diego, California 92121

(Address of Principal Executive Offices)

 

(858) 203-4100

 

(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, $0.0001 par value

 

SRNE

 

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.    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 file, 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).    Yes      No  .

The number of shares of the issuer’s common stock, par value $0.0001 per share, outstanding as of April 24, 2020 was 209,690,497.

 


 

Sorrento Therapeutics, Inc.

Form 10-Q for the Quarter Ended March 31, 2020

Table of Contents

 

Part I

Financial Information

3

Item 1.

Consolidated Financial Statements (Unaudited)

3

 

Consolidated Balance Sheets (Unaudited) as of March 31, 2020 and December 31, 2019

3

 

Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2020 and 2019

4

 

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

5

 

Consolidated Statements of Stockholders’ Equity (Unaudited) for the Three Months Ended March 31, 2020 and 2019

6

 

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

7

 

Notes to Consolidated Financial Statements (Unaudited)

8

Item 2.

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

26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34

 

 

Part II

Other Information

35

Item 1.

Legal Proceedings

35

Item 1A.

Risk Factors

36

Item 5.

Other Information

42

Item 6.

Exhibits

42

SIGNATURES

44

 

 

 

 


 

PART I. FINANCIAL INFORMATION

Item 1.Consolidated Financial Statements.

SORRENTO THERAPEUTICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share amounts; unaudited)

 

ASSETS

 

March 31,

2020

 

 

December 31,

2019

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

21,897

 

 

$

22,521

 

Restricted cash

 

 

 

 

 

13,098

 

Accounts receivables, net

 

 

10,023

 

 

 

14,454

 

Inventory

 

 

3,038

 

 

 

3,362

 

Prepaid expenses and other

 

 

14,674

 

 

 

14,153

 

Total current assets

 

 

49,632

 

 

 

67,588

 

Property and equipment, net

 

 

28,470

 

 

 

29,888

 

Operating lease right-of-use assets

 

 

46,329

 

 

 

46,384

 

Intangibles, net

 

 

62,316

 

 

 

63,308

 

Goodwill

 

 

38,298

 

 

 

38,298

 

Cost method investments

 

 

237,008

 

 

 

237,008

 

Equity method investments

 

 

24,676

 

 

 

25,233

 

Restricted cash

 

 

45,050

 

 

 

45,150

 

Other, net

 

 

4,774

 

 

 

4,775

 

Total assets

 

$

536,553

 

 

$

557,632

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

28,986

 

 

$

27,630

 

Accrued payroll and related benefits

 

 

15,507

 

 

 

15,914

 

Accrued expenses

 

 

14,241

 

 

 

18,728

 

Current portion of deferred revenue

 

 

3,777

 

 

 

3,643

 

Acquisition consideration payable

 

 

398

 

 

 

908

 

Current portion of derivative liabilities

 

 

7,280

 

 

 

8,800

 

Current portion of debt

 

 

16,585

 

 

 

36,261

 

Current portion of operating lease liabilities

 

 

3,374

 

 

 

3,322

 

Total current liabilities

 

 

90,148

 

 

 

115,206

 

Long-term debt, net of discount

 

 

182,958

 

 

 

199,088

 

Deferred tax liabilities, net

 

 

8,893

 

 

 

9,043

 

Deferred revenue

 

 

114,085

 

 

 

114,389

 

Derivative liabilities

 

 

36,600

 

 

 

35,000

 

Operating lease liabilities

 

 

52,094

 

 

 

52,111

 

Other long-term liabilities

 

 

549

 

 

 

39

 

Total liabilities

 

$

485,327

 

 

$

524,876

 

Commitments and contingencies (See Note 10)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Sorrento Therapeutics, Inc. equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 100,000,000 shares authorized and no shares issued

   or outstanding

 

 

 

 

 

 

Common stock, $0.0001 par value 750,000,000 shares authorized and 204,566,004 and 167,798,120

   shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively

 

 

23

 

 

 

18

 

Additional paid-in capital

 

 

875,712

 

 

 

788,122

 

Accumulated other comprehensive loss

 

 

(215

)

 

 

(270

)

Accumulated deficit

 

 

(725,013

)

 

 

(659,818

)

Treasury stock, 7,568,182 shares at cost at March 31, 2020, and December 31, 2019

 

 

(49,464

)

 

 

(49,464

)

Total Sorrento Therapeutics, Inc. stockholders’ equity

 

 

101,043

 

 

 

78,588

 

Noncontrolling interests

 

 

(49,817

)

 

 

(45,832

)

Total equity

 

 

51,226

 

 

 

32,756

 

Total liabilities and stockholders’ equity

 

$

536,553

 

 

$

557,632

 

 

See accompanying notes to unaudited consolidated financial statements

3


 

SORRENTO THERAPEUTICS, INC.  

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share amounts; unaudited)

 

 

 

Three Months Ended

March 31,

 

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

Net product revenues

 

$

5,248

 

 

$

3,359

 

Service revenues

 

 

2,473

 

 

 

2,784

 

Total revenues

 

 

7,721

 

 

 

6,143

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

Cost of products sold

 

 

548

 

 

 

441

 

Cost of services

 

 

1,891

 

 

 

1,867

 

Research and development

 

 

21,154

 

 

 

25,616

 

Acquired in-process research and development

 

 

 

 

 

75,301

 

Selling, general and administrative

 

 

26,299

 

 

 

25,122

 

Intangible amortization

 

 

992

 

 

 

966

 

Total operating costs and expenses

 

 

50,884

 

 

 

129,313

 

Loss from operations

 

 

(43,163

)

 

 

(123,170

)

(Loss) gain on trading securities

 

 

(59

)

 

 

94

 

Loss on partial debt settlement

 

 

(23,645

)

 

 

 

Gain (loss) on derivative liabilities

 

 

4,920

 

 

 

(14,501

)

(Loss) gain on foreign currency exchange

 

 

(147

)

 

 

313

 

Interest expense

 

 

(6,825

)

 

 

(9,080

)

Interest income

 

 

19

 

 

 

534

 

Loss before income tax

 

 

(68,900

)

 

 

(145,810

)

Income tax benefit

 

 

(276

)

 

 

(178

)

Loss on equity method investments

 

 

(556

)

 

 

(897

)

Net loss

 

 

(69,180

)

 

 

(146,529

)

Net loss attributable to noncontrolling interests

 

 

(3,985

)

 

 

(38,458

)

Net loss attributable to Sorrento

 

$

(65,195

)

 

$

(108,071

)

Net loss per share - basic per share attributable to Sorrento

 

$

(0.36

)

 

$

(0.88

)

Net loss per share - diluted per share attributable to Sorrento

 

$

(0.36

)

 

$

(0.88

)

Weighted-average shares used during period - basic per share

   attributable to Sorrento

 

 

182,609

 

 

 

122,281

 

Weighted-average shares used during period - diluted per share

   attributable to Sorrento

 

 

182,609

 

 

 

122,281

 

 

See accompanying notes to unaudited consolidated financial statements

4


 

SORRENTO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands; unaudited)

 

 

 

Three Months Ended

March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(69,180

)

 

$

(146,529

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

55

 

 

 

85

 

Total other comprehensive loss

 

 

55

 

 

 

85

 

Comprehensive loss

 

 

(69,125

)

 

 

(146,444

)

Comprehensive loss attributable to noncontrolling interests

 

 

(3,985

)

 

 

(38,458

)

Comprehensive loss attributable to Sorrento

 

$

(65,140

)

 

$

(107,986

)

 

See accompanying notes to unaudited consolidated financial statements

5


 

SORRENTO THERAPEUTICS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except for share amounts; unaudited)

 

 

 

Three Months Ended March 31, 2020

 

 

 

Common Stock

 

 

Treasury Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Other

Comprehensive

Income (Loss)

 

 

Accumulated

Deficit

 

 

Noncontrolling

Interest

 

 

Total

 

Balance, December 31, 2019

 

 

167,798,120

 

 

$

18

 

 

 

7,568,182

 

 

$

(49,464

)

 

$

788,122

 

 

$

(270

)

 

$

(659,818

)

 

$

(45,832

)

 

$

32,756

 

Exercise of stock options, net

 

 

49,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

99

 

Issuance of common stock upon exercise of

   warrants

 

 

5,008,609

 

 

 

1

 

 

 

 

 

 

 

 

 

13,534

 

 

 

 

 

 

 

 

 

 

 

 

13,535

 

Issuance of common stock for public

   placement, net

 

 

2,090,802

 

 

 

1

 

 

 

 

 

 

 

 

 

7,325

 

 

 

 

 

 

 

 

 

 

 

 

7,326

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,682

 

 

 

 

 

 

 

 

 

 

 

 

3,682

 

Issuance of common stock from

   Aspire Purchase Agreement

 

 

29,619,280

 

 

 

3

 

 

 

 

 

 

 

 

 

62,950

 

 

 

 

 

 

 

 

 

 

 

 

62,953

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

55

 

 

 

 

 

 

 

 

 

 

55

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(65,195

)

 

 

(3,985

)

 

 

(69,180

)

Balance, March 31, 2020

 

 

204,566,004

 

 

$

23

 

 

 

7,568,182

 

 

$

(49,464

)

 

$

875,712

 

 

$

(215

)

 

$

(725,013

)

 

$

(49,817

)

 

$

51,226

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

Common Stock

 

 

Treasury Stock

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Additional

Paid-in

Capital

 

 

Other

Comprehensive

Income (Loss)

 

 

Accumulated

Deficit

 

 

Noncontrolling

Interest

 

 

Total

 

Balance, December 31, 2018

 

 

122,280,092

 

 

$

13

 

 

 

7,568,182

 

 

$

(49,464

)

 

$

626,658

 

 

$

15

 

 

$

(367,750

)

 

$

(1,972

)

 

$

207,500

 

Issuance of common stock upon exercise of stock

   options

 

 

31,825

 

 

 

 

 

 

 

 

 

 

 

 

81

 

 

 

 

 

 

 

 

 

 

 

 

81

 

Equity contribution related to Semnur acquisition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,400

 

 

 

 

 

 

 

 

 

26,600

 

 

 

55,000

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,976

 

 

 

 

 

 

 

 

 

 

 

 

1,976

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85

 

 

 

 

 

 

 

 

 

85

 

Net loss