SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003
OR
o 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 000-30469
deCODE genetics, Inc.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
04-3326704 |
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(State or Other Jurisdiction of |
(I.R.S. Employer Identification No.) |
STURLUGATA 8, IS-101 REYKJAVIK, ICELAND
(Address of Principal Executive Offices, Zip Code)
+354-570-1900
(Registrant’s Telephone Number, Including Area Code)
Indicate by check 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 check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
The aggregate number of shares of the registrant’s common stock outstanding on October 26, 2003 was 53,951,831 shares of common stock $.001 par value.
deCODE genetics, Inc.
INDEX
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Condensed Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Index to Exhibits |
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deCODE genetics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
unaudited
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FOR THE THREE MONTHS |
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FOR THE NINE MONTHS |
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2003 |
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2002 |
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2003 |
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2002 |
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REVENUE |
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$ |
12,763 |
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$ |
8,982 |
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$ |
35,141 |
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$ |
23,682 |
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OPERATING EXPENSES |
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Research and development, including cost of revenue |
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11,068 |
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23,856 |
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47,516 |
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66,634 |
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Selling, general and administrative |
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3,989 |
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5,753 |
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11,975 |
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14,235 |
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Impairment, employee termination costs and other charges |
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115 |
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64,790 |
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906 |
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64,790 |
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Total operating expense |
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15,172 |
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94,399 |
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60,397 |
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145,659 |
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Operating loss |
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(2,409 |
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(85,417 |
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(25,256 |
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(121,977 |
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Interest income |
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243 |
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711 |
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897 |
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2,269 |
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Interest expense |
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(826 |
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(589 |
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(2,603 |
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(2,199 |
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Other non-operating income and (expense), net |
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1,706 |
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(144 |
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2,402 |
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560 |
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Net loss before cumulative effect of change in accounting principle |
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(1,286 |
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(85,439 |
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(24,560 |
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(121,347 |
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Cumulative effect of change in milestone revenue recognition method |
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0 |
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0 |
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0 |
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333 |
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Net Loss |
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$ |
(1,286 |
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$ |
(85,439 |
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$ |
(24,560 |
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$ |
(121,014 |
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Basic and diluted net loss per share: |
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Net loss before cumulative effect of change in accounting principle |
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$ |
(0.03 |
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$ |
(1.68 |
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$ |
(0.48 |
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$ |
(2.51 |
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Cumulative effect of change in milestone revenue recognition method |
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— |
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— |
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— |
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0.01 |
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Net Loss |
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(0.03 |
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(1.68 |
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(0.48 |
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(2.50 |
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Shares used in computing basic and diluted net loss per share |
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51,399,816 |
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50,958,332 |
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51,262,995 |
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48,425,673 |
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The accompanying notes are an integral part of the condensed consolidated financial statements
2
deCODE genetics, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
unaudited
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SEPTEMBER 30, |
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DECEMBER 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
72,392 |
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$ |
87,244 |
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Receivables |
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4,651 |
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5,293 |
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Other current assets |
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7,416 |
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9,609 |
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Total current assets |
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84,459 |
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102,146 |
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Restricted cash |
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6,000 |
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6,000 |
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Property and equipment, net |
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74,776 |
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83,499 |
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Goodwill |
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8,863 |
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8,863 |
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Other long-term assets and deferred charges |
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15,846 |
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12,909 |
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Total assets |
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$ |
189,944 |
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$ |
213,417 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
4,807 |
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$ |
4,865 |
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Accrued expenses and other current liabilities |
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8,967 |
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10,613 |
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Current portion of capital lease obligations |
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7,631 |
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