SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES 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 |
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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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incorporation or organization) |
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Identification Number) |
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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) |
(508) 683-1200
(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
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 April 29, 2005, the Registrant had 26,247,941 shares of Common Stock outstanding.
EXACT SCIENCES CORPORATION
INDEX
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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, 2004 and March 31, 2005 (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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2
EXACT SCIENCES CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share data - unaudited)
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December 31, |
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March 31, |
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2004 |
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2005 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
13,092 |
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$ |
9,333 |
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Marketable securities |
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37,188 |
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35,001 |
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Prepaid expenses and other current assets |
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1,835 |
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2,112 |
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Total current assets |
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52,115 |
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46,446 |
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Property and Equipment, at cost: |
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Laboratory equipment |
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4,242 |
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4,071 |
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Office and computer equipment |
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1,383 |
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1,400 |
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Leasehold improvements |
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1,482 |
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1,133 |
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Furniture and fixtures |
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299 |
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299 |
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7,406 |
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6,903 |
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Less—Accumulated depreciation and amortization |
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(5,452 |
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(5,418 |
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1,954 |
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1,485 |
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Patent Costs and Other Assets, net of accumulated amortization of approximately $1,718 and $1,833 at December 31, 2004 and March 31, 2005, respectively |
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2,042 |
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1,922 |
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$ |
56,111 |
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$ |
49,853 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
365 |
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$ |
99 |
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Accrued expenses |
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2,034 |
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1,399 |
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Deferred license fees, current portion |
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4,459 |
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4,421 |
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Total current liabilities |
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6,858 |
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5,919 |
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Deferred License Fees, less current portion |
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11,270 |
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10,180 |
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Commitments and contingencies |
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Stockholders’ Equity: |
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Common stock,
$0.01 par value |
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263 |
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263 |
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Additional paid-in capital |
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161,356 |
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161,679 |
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Treasury stock, 85,550 shares at December 31, 2004 and March 31, 2005 |
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(97 |
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(97 |
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Notes receivable |
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(5 |
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(5 |
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Deferred compensation |
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(89 |
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(40 |
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Other comprehensive loss |
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(115 |
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(131 |
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Accumulated deficit |
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(123,330 |
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(127,915 |
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Total stockholders’ equity |
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37,983 |
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33,754 |
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$ |
56,111 |
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$ |
49,853 |
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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 March 31, |
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2004 |
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2005 |
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Revenue: |
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Product royalty fees |
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$ |
22 |
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$ |
68 |
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License fees |
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1,128 |
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1,128 |
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Product |
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27 |
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51 |
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1,177 |
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1,247 |
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Cost of revenue: |
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Product royalty fees |
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1 |
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4 |
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Product |
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31 |
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44 |
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32 |
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48 |
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Gross profit |
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1,145 |
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1,199 |
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Operating Expenses: |
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Research and development |
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3,134 |
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2,281 |
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Sales and marketing |
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1,327 |
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1,599 |
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General and administrative |
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1,967 |
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1,221 |
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Restructuring |
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— |
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626 |
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Stock-based compensation (1) |
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126 |
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303 |
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