SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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EXCHANGE ACT OF 1934 |
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For the quarterly period ended June 30, 2002 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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EXCHANGE ACT OF 1934 |
Commission File Number: 000-32179
EXACT SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE |
02-0478229 |
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(State or other jurisdiction of |
(I.R.S. Employer |
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incorporation or organization) |
Identification Number) |
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63 Great Road, Maynard, Massachusetts |
01754 |
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(Address of principal executive offices) |
(Zip Code) |
(978) 897–2800
(Registrant’s telephone number, including area code)
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 ý No o
As of August 12, 2002, the Registrant had 19,039,732 shares of Common Stock outstanding.
EXACT SCIENCES CORPORATION
INDEX
Part I - Financial Information
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Item 1. |
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Condensed Consolidated Financial Statements |
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Condensed Consolidated Balance Sheets as of December 31, 2001 and June 30, 2002 (Unaudited) |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 2. |
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Item 4. |
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Item 5. |
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Item 6. |
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2
EXACT SCIENCES CORPORATION
(A Development Stage Company)
Condensed Consolidated Balance Sheets
(Unaudited)
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December |
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June |
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31, 2001 |
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30, 2002 |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
56,842,722 |
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$ |
57,959,942 |
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Prepaid expenses |
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721,179 |
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1,183,146 |
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Total current assets |
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57,563,901 |
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59,143,088 |
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Property and Equipment, at cost: |
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Laboratory equipment |
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2,497,113 |
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3,112,331 |
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Office and computer equipment |
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1,178,153 |
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1,223,329 |
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Leasehold improvements |
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581,102 |
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795,794 |
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Furniture and fixtures |
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211,530 |
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206,226 |
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4,467,898 |
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5,337,680 |
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Less—Accumulated depreciation and amortization |
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(1,883,783 |
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(2,539,413 |
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2,584,115 |
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2,798,267 |
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Patent Costs, Net and Other Assets |
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2,952,221 |
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2,831,098 |
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$ |
63,100,237 |
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$ |
64,772,453 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
1,176,440 |
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$ |
1,427,851 |
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Accrued expenses |
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2,407,367 |
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2,985,355 |
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Deferred licensing fees, current portion |
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549,625 |
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1,620,693 |
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Total current liabilities |
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4,133,432 |
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6,033,899 |
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Deferred Licensing Fees, less current portion |
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— |
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7,303,370 |
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Stockholders’ Equity: |
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Common stock, $0.01 par value |
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187,908 |
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190,272 |
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Additional paid-in capital |
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110,497,193 |
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117,167,748 |
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Treasury stock |
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(8,353 |
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(12,290 |
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Subscriptions receivable |
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(946,433 |
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(751,704 |
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Deferred compensation |
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(4,179,405 |
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(3,114,075 |
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Deficit accumulated during the development stage |
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(46,584,105 |
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(62,044,767 |
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Total stockholders’ equity |
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58,966,805 |
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51,435,184 |
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$ |
63,100,237 |
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$ |
64,772,453 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
EXACT SCIENCES CORPORATION
(A Development Stage Company)
Condensed Consolidated Statements of Operations
(Unaudited)
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Period from |
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Inception |
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(February 10, |
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1995) to |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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June 30, |
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2001 |
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2002 |
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2001 |
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2002 |
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2002 |
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Revenue |
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$ |
— |
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$ |
39,956 |
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$ |
— |
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$ |
79,222 |
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$ |
130,092 |
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Cost of revenues |
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1,905 |
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— |
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2,277 |
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2,277 |
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Gross margin |
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— |
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38,051 |
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— |
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76,945 |
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127,815 |
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Operating Expenses: | |||||||||||||||||||||||||