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 SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended April 4, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Commission file number 0-21794
GTC BIOTHERAPEUTICS, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Massachusetts |
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04-3186494 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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175 Crossing Boulevard, Framingham, Massachusetts |
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01702 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code (508) 620-9700
Former Name, Former Address and Former Fiscal Year if Changed Since Last Report
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.
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Yes ý |
No o |
Indicate by check whether registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes ý |
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Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding at May 6, 2004 |
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Common Stock, $0.01 par value |
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38,694,971 |
GTC BIOTHERAPEUTICS, INC.
TABLE OF CONTENTS
2
PART I - FINANCIAL INFORMATION
ITEM 1 – UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
GTC BIOTHERAPEUTICS, INC.
(Unaudited, dollars in thousands except share amounts)
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April 4, |
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December 28, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
20,583 |
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$ |
6,733 |
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Marketable securities |
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17,429 |
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24,358 |
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Accounts receivable and unbilled contract revenue |
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1,630 |
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1,613 |
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Other current assets |
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1,744 |
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1,777 |
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Total current assets |
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41,386 |
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34,481 |
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Net property, plant and equipment |
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22,274 |
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22,600 |
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Net intangible assets |
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10,835 |
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11,094 |
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Inventory |
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1,574 |
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1,574 |
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Other assets |
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1,361 |
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1,323 |
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$ |
77,430 |
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$ |
71,072 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,527 |
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$ |
2,340 |
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Accrued liabilities |
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3,181 |
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3,524 |
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Accrued liabilities -Genzyme |
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2,689 |
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1,924 |
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Deferred contract revenue |
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186 |
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323 |
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Current portion of long-term debt and capital leases |
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2,220 |
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2,218 |
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Note payable - Genzyme |
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2,386 |
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— |
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Total current liabilities |
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13,189 |
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10,329 |
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Long-term debt and capital leases, net of current portion |
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7,392 |
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7,769 |
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Note payable – Genzyme |
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2,387 |
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4,773 |
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Deferred lease obligation |
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37 |
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40 |
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Total liabilities |
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23,005 |
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22,911 |
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Shareholders’ equity: |
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Preferred stock, $.01 par value; 5,000,000
shares authorized; |
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— |
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— |
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Common stock, $.01 par value; 100,000,000
shares authorized; |
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415 |
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347 |
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Capital in excess of par value - common stock |
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222,323 |
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207,535 |
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Treasury stock, at cost, 2,820,000 shares |
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(9,545 |
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(9,545 |
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Accumulated deficit |
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(158,755 |
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(150,179 |
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Accumulated other comprehensive income |
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(13 |
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3 |
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Total shareholders’ equity |
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54,425 |
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48,161 |
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$ |
77,430 |
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$ |
71,072 |
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The accompanying notes are an integral part of these financial statements.
3
GTC BIOTHERAPEUTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited, dollars in thousands except per share amounts)
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Three months ended** |
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April 4, |
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March 30, |
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Revenues: |
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Revenue |
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$ |
1,047 |
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$ |
1,744 |
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Revenue from related party |
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19 |
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— |
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1,066 |
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1,744 |
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Costs of revenue and operating expenses: |
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Cost of revenue |
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1,072 |
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3,576 |
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Research and development |
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5,440 |
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3,024 |
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Selling, general and administrative |
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3,197 |
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2,693 |
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9,709 |
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9,293 |
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Operating loss |
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(8,643 |
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(7,549 |
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Other income (expense): |
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Interest income |
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(17 |
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292 |
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Interest expense |
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(142 |
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(136 |
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Other income |
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226 |
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— |
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Net loss |
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$ |
(8,576 |
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(7,393 |
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Net loss per common share (basic and diluted) |
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$ |
(0.26 |
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(0.27 |
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