SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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ý QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) |
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For the quarterly period ended September 30, 2003 |
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OR |
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o TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) |
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Commission File Number: 000-32179 |
EXACT SCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE |
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02-0478229 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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100 Campus Drive, Marlborough, Massachusetts |
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01752 |
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(Address of principal executive offices) |
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(Zip Code) |
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(508) 683-1200 |
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(Registrant’s telephone number, including area code) |
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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
Indicate by checkmark whether or the registrant is an accelerated filer (as defined in the Exchange Act Rule 12b-2).
Yes ý No o
As of November 10, 2003, the Registrant had 19,235,977 shares of Common Stock outstanding.
EXACT SCIENCES CORPORATION
INDEX
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Page |
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Part I - Financial Information |
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Item 1. |
Condensed Consolidated Financial Statements |
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Condensed Consolidated Balance Sheets as of December 31, 2002 and September 30, 2003 (Unaudited) |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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EXACT SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in thousands - unaudited)
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December |
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September |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
17,439 |
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$ |
16,105 |
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Marketable securities |
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26,407 |
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19,221 |
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Prepaid expenses |
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1,110 |
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1,437 |
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Total current assets |
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44,956 |
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36,763 |
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Property and Equipment, at cost: |
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Laboratory equipment |
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3,427 |
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4,179 |
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Office and computer equipment |
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1,278 |
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1,346 |
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Leasehold improvements |
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823 |
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2,239 |
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Furniture and fixtures |
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272 |
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299 |
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5,800 |
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8,063 |
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Less—Accumulated depreciation and amortization |
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(3,544 |
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(5,066 |
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2,256 |
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2,997 |
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Patent Costs and Other Assets, net |
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2,874 |
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2,641 |
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$ |
50,086 |
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$ |
42,401 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
1,157 |
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$ |
757 |
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Accrued expenses |
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2,466 |
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2,428 |
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Deferred licensing fees, current portion |
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1,621 |
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4,621 |
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Total current liabilities |
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5,244 |
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7,806 |
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Deferred Licensing Fees, less current portion |
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6,493 |
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16,778 |
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Stockholders’ Equity: |
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Common stock |
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191 |
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193 |
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Additional paid-in capital |
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117,256 |
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118,415 |
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Treasury stock |
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(12 |
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(12 |
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Notes receivable |
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(699 |
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(642 |
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Deferred compensation |
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(1,977 |
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(1,055 |
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Unrealized gain on marketable securities |
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57 |
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14 |
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Accumulated deficit |
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(76,467 |
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(99,096 |
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Total stockholders’ equity |
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38,349 |
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17,817 |
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$ |
50,086 |
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$ |
42,401 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
EXACT SCIENCES CORPORATION
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share data, unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2002 |
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2003 |
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2002 |
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2003 |
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Revenue |
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License fees |
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$ |
405 |
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$ |
905 |
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$ |
481 |
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$ |
1,715 |
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Product revenue |
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5 |
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13 |
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8 |
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17 |
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410 |
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918 |
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489 |
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1,732 |
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Cost of product revenues |
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4 |
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13 |
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6 |
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16 |
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Gross profit |
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406 |
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905 |
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483 |
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1,716 |
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Operating Expenses: |
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Research and development |
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5,131 |
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4,312 |
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15,240 |
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13,917 |
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Selling, general and administrative |
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2,396 |
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3,229 |
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7,219 |
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9,837 |
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Stock-based compensation (1) |
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544 |
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329 |
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1,656 |
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