akba-10q_20190930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

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 001-36352

 

AKEBIA THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

20-8756903

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

245 First Street, Cambridge, MA

 

02142

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (617) 871-2098

n/a

(Former name, former address and formal fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Common Stock, par value $0.00001 per share

Trading symbol(s)

AKBA

Name of each exchange on which registered

The Nasdaq Global Market

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      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Outstanding at October 31, 2019

118,943,016

 

 

 


NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that are being made pursuant to the provisions of the U.S. Private Securities Litigation Reform Act of 1995 with the intention of obtaining the benefits of the “safe harbor” provisions of that Act. All statements contained in this Quarterly Report on Form 10‑Q other than statements of historical fact are forward‑looking statements. These forward-looking statements may be accompanied by words such as “anticipate,” “believe,” “build,” “can,” “contemplate,” “continue,” “could,” “should,” “designed,” “estimate,” “project,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “strategy,” “seek,” “target,” “will,” “would,” and other words and terms of similar meaning, but the absence of these words does not necessarily mean that a statement is not forward‑looking. These forward-looking statements include, but are not limited to, statements about:

 

our expectations with respect to (i) the anticipated financial impact and potential benefits to us related to our merger with Keryx Biopharmaceuticals, Inc., or Keryx, that was completed on December 12, 2018, or the Merger, (ii) integration of the businesses subsequent to the Merger, and (iii) other matters related to the Merger;

 

the timing, investment and associated activities involved in commercializing Auryxia;

 

the potential therapeutic applications of the hypoxia-inducible factor, or HIF, pathway; 

 

our pipeline, including its potential, and our research activities; 

 

the potential therapeutic benefits, safety profile, and effectiveness of our product candidates, including the potential for vadadustat to set a new standard of care in the treatment of anemia due to chronic kidney disease

 

the potential indications, demand and market potential and acceptance of our product and product candidates, including our estimates regarding the potential market opportunity for Auryxia, vadadustat or any other product candidates and the size of eligible patient populations

 

our competitive position, including estimates, developments and projections relating to our competitors and their products and product candidates, and our industry

 

our expectations, projections and estimates regarding our costs, expenses, revenues, capital requirements, need for additional capital, financing our future cash needs, capital resources, cash flows, financial performance, profitability, tax obligations, liquidity, growth, contractual obligations, the period of time our cash resources and collaboration funding will fund our current operating plan, internal control over financial reporting, and disclosure controls and procedures

 

the timing of the availability and disclosure of clinical trial data and results;  

 

our and our collaborators’ strategy, plans and expectations with respect to the development, manufacturing, commercialization, launch, marketing and sale of our product candidates, and the associated timing thereof; 

 

the designs of our studies, and the type of information and data expected from our studies and the expected benefits thereof; 

 

the timing of or likelihood of regulatory filings and approvals, including labeling or other restrictions; 

 

our ability to maintain any marketing authorizations we currently hold or will obtain, including our marketing authorizations for Auryxia and Fexeric and our ability to complete post-marketing requirements with respect thereto;

 

our ability to negotiate, secure and maintain adequate pricing, coverage and reimbursement terms and processes on a timely basis, or at all, with third-party payors for Auryxia or any other product candidate that may be approved;

 

the targeted timing of enrollment of our clinical trials; 

 

the timing of initiation of our clinical trials and plans to conduct preclinical and clinical studies in the future; 

 

the timing and amounts of payments from or to our collaborators and licensees, and the anticipated arrangements and benefits under our collaboration and license agreements, including with respect to milestones and royalties; 

 

our intellectual property position, including obtaining and maintaining patents, and the timing, outcome and impact of administrative, regulatory, legal and other proceedings relating to our patents and other proprietary and intellectual property rights, as well as Abbreviated New Drug Applications filed by generic drug manufacturers and potential U.S. Food and Drug Administration approval thereof, and associated patent infringement suits that we have filed or may file, or other actions that we may take against such companies, and the timing and resolution thereof;  

 

expected reliance on third parties, including with respect to the development, manufacturing, supply and commercialization of our product and product candidates;

 

accounting standards and estimates, their impact, and their expected timing of completion;

 

estimated periods of performance of key contracts;  


 

our facilities, lease commitments, and future availability of facilities;  

 

cybersecurity;

 

insurance coverage;

 

our employees, including our management team, employee compensation, employee relations, and our ability to attract and retain high quality employees;

 

the implementation of our business model, current operating plan, and strategic plans for our business, product candidates and technology, and business development opportunities including potential collaborations, alliances, mergers, acquisitions or licensing of assets; and

 

the timing, outcome and impact of current and any future legal proceedings.

These forward-looking statements involve risks and uncertainties, including those that are described in Part II, Item 1A. Risk Factors included in this Quarterly Report on Form 10-Q and elsewhere in this Quarterly Report on Form 10-Q, that could cause our actual results, financial condition, performance or achievements to be materially different from those indicated in these forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to publicly update or revise these forward-looking statements for any reason. Unless otherwise stated, our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

This Quarterly Report on Form 10-Q also contains estimates and other information concerning our industry and the markets for certain diseases, including data regarding the estimated size of those markets, and the incidence and prevalence of certain medical conditions. Unless otherwise expressly stated, we obtained this industry, market and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources.

In this Quarterly Report on Form 10-Q, unless otherwise stated or the context otherwise requires, references to “Akebia,” “we,” “us,” “our,” “the Company,” and similar references refer to Akebia Therapeutics, Inc. and, where appropriate, its subsidiaries, including Keryx. The trademarks, trade names and service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective owners. All website addresses given in this Quarterly Report on Form 10-Q are for information only and are not intended to be an active link or to incorporate any website information into this document.

 

 


Akebia Therapeutics, Inc.

Table of Contents

 

Part I. Financial Information

  

 

 

 

 

Item 1 – Financial Statements (Unaudited)

  

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

  

5

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2019 and 2018

  

6

Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2019 and 2018

  

7

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

 

8

Notes to Condensed Consolidated Financial Statements

  

9

 

 

 

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

45

 

 

 

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

  

60

 

 

 

Item 4 – Controls and Procedures

  

61

 

 

 

Part II. Other Information

  

62

 

 

 

Item 1 – Legal Proceedings

  

62

 

 

 

Item 1A – Risk Factors

  

66

 

 

 

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

  

114

 

 

 

Item 3 – Defaults Upon Senior Securities

  

114

 

 

 

Item 4 – Mine Safety Disclosures

  

114

 

 

 

Item 5 – Other Information

 

114

 

 

 

Item 6 – Exhibits

  

116

 

 

 

Signatures

  

117

 

 

 


PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements.

AKEBIA THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share data)  

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

122,886

 

 

$

104,644

 

Available for sale securities

 

 

22,727

 

 

 

216,996

 

Inventory

 

 

115,987

 

 

 

114,245

 

Accounts receivable, net

 

 

29,654

 

 

 

16,666

 

Prepaid expenses and other current assets

 

 

7,754

 

 

 

15,724

 

Total current assets

 

 

299,008

 

 

 

468,275

 

Property and equipment, net

 

 

12,799

 

 

 

8,023

 

Operating lease assets

 

 

30,141

 

 

 

 

Goodwill

 

 

55,053

 

 

 

55,053

 

Other intangible assets, net

 

 

300,312

 

 

 

328,153

 

Other assets

 

 

97,907

 

 

 

137,036

 

Total assets

 

$

795,220

 

 

$

996,540

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

64,362

 

 

$

42,796

 

Accrued expenses and other current liabilities

 

 

126,644

 

 

 

150,917

 

Debt

 

 

 

 

 

15,000

 

Short-term deferred revenue

 

 

32,142

 

 

 

56,980

 

Total current liabilities

 

 

223,148

 

 

 

265,693

 

Deferred rent, net of current portion

 

 

 

 

 

3,006

 

Deferred revenue, net of current portion

 

 

43,887

 

 

 

55,709

 

Operating lease liabilities, net of current portion

 

 

28,811

 

 

 

 

Deferred tax liabilities

 

 

1,752

 

 

 

6,631

 

Other non-current liabilities

 

 

30,060

 

 

 

29,573

 

Total liabilities

 

 

327,658

 

 

 

360,612

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock $0.00001 par value, 25,000,000 shares authorized; 0 shares issued and

   outstanding at September 30, 2019 and December 31, 2018

 

 

 

 

 

 

Common stock $0.00001 par value; 175,000,000 shares authorized at September 30,

   2019 and December 31, 2018; 118,863,735 and 116,887,518 shares issued and

   outstanding at September 30, 2019 and December 31, 2018, respectively

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

1,167,126

 

 

 

1,150,583

 

Accumulated other comprehensive income (loss)

 

 

6

 

 

 

(261

)

Accumulated deficit

 

 

(699,571

)

 

 

(514,395

)

Total stockholders' equity

 

 

467,562

 

 

 

635,928

 

Total liabilities and stockholders' equity

 

$

795,220

 

 

$

996,540

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

5


AKEBIA THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except share and per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue, net

 

$

30,004

 

 

$

 

 

$

82,204

 

 

$

 

License, collaboration and other revenue

 

 

61,973

 

 

 

53,169

 

 

 

183,242

 

 

 

147,892

 

Total revenues

 

 

91,977

 

 

 

53,169

 

 

 

265,446

 

 

 

147,892

 

Cost of goods sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

29,162

 

 

 

 

 

 

79,888

 

 

 

 

Amortization of intangibles

 

 

9,101

 

 

 

 

 

 

27,301

 

 

 

 

Total cost of goods sold

 

 

38,263

 

 

 

 

 

 

107,189

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

74,512

 

 

 

70,634

 

 

 

242,557

 

 

 

203,955

 

Selling, general and administrative

 

 

34,178

 

 

 

10,378

 

 

 

104,537

 

 

 

31,940

 

License expense

 

 

929

 

 

 

 

 

 

2,560

 

 

 

 

Total operating expenses

 

 

109,619

 

 

 

81,012

 

 

 

349,654

 

 

 

235,895

 

Operating loss

 

 

(55,905

)

 

 

(27,843

)

 

 

(191,397

)

 

 

(88,003

)

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

228

 

 

 

1,780

 

 

 

1,582

 

 

 

4,417

 

Other income (expense)

 

 

(185

)

 

 

16

 

 

 

(240

)

 

 

52

 

Net loss before income taxes

 

 

(55,862

)

 

 

(26,047

)

 

 

(190,055

)

 

 

(83,534

)

Benefit from income taxes

 

 

(1,277

)

 

 

 

 

 

(4,879

)

 

 

 

Net loss

 

$

(54,585

)

 

$

(26,047

)

 

$

(185,176

)

 

$

(83,534

)

Net loss per share - basic and diluted

 

$

(0.46

)

 

$

(0.46

)

 

$

(1.57

)

 

$

(1.54

)

Weighted-average number of common shares - basic and diluted

 

 

118,863,063

 

 

 

57,027,598

 

 

 

118,071,674

 

 

 

54,207,973

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(54,585

)

 

$

(26,047

)

 

$

(185,176

)

 

$

(83,534

)

Other comprehensive gain (loss) - unrealized gain (loss) on

   debt securities

 

 

(17

)

 

 

50

 

 

 

267

 

 

 

33

 

Total comprehensive loss

 

$

(54,602

)

 

$

(25,997

)

 

$

(184,909

)

 

$

(83,501

)

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

 

 

6


AKEBIA THERAPEUTICS, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(in thousands, except share data)

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

Number of

Shares

 

 

$0.00001

Par Value

 

 

Paid-In

Capital

 

 

Unrealized

Gain/(Loss)

 

 

Accumulated

Deficit

 

 

Stockholders'

Equity

 

Balance at December 31, 2017

 

 

47,612,619

 

 

$

 

 

$

493,823

 

 

$

(442

)

 

$

(370,807

)

 

$

122,574

 

Issuance of common stock, net of

   issuance costs

 

 

9,194,306

 

 

 

 

 

 

95,416

 

 

 

 

 

 

 

 

 

95,416

 

Proceeds from sale of stock under

   employee stock purchase plan

 

 

17,569

 

 

 

 

 

 

218

 

 

 

 

 

 

 

 

 

218

 

Exercise of options

 

 

21,363

 

 

 

 

 

 

182

 

 

 

 

 

 

 

 

 

182

 

Share-based compensation expense

 

 

 

 

 

 

 

 

2,232

 

 

 

 

 

 

 

 

 

2,232

 

Restricted stock unit vesting

 

 

11,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

(108

)

 

 

 

 

 

(108

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,418

)

 

 

(23,418

)

Balance at March 31, 2018

 

 

56,857,470

 

 

$

 

 

$

591,871

 

 

$

(550

)

 

$

(394,225

)

 

$

197,096

 

Proceeds from sale of stock under

   employee stock purchase plan

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

(3

)

Exercise of options

 

 

43,041

 

 

 

 

 

 

314

 

 

 

 

 

 

 

 

 

314

 

Share-based compensation expense

 

 

 

 

 

 

 

 

2,494

 

 

 

 

 

 

 

 

 

2,494

 

Restricted stock unit vesting

 

 

13,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

91

 

 

 

 

 

 

91

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,069

)

 

 

(34,069

)

Balance at June 30, 2018

 

 

56,913,886

 

 

$

 

 

$

594,676

 

 

$

(459

)

 

$

(428,294

)

 

$

165,923

 

Issuance of common stock, net of

   issuance costs

 

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

36

 

Proceeds from sale of stock under

   employee stock purchase plan

 

 

31,199

 

 

 

 

 

 

267

 

 

 

 

 

 

 

 

 

267

 

Exercise of options

 

 

101,478

 

 

 

 

 

 

59

 

 

 

 

 

 

 

 

 

59

 

Share-based compensation expense

 

 

 

 

 

 

 

 

2,252

 

 

 

 

 

 

 

 

 

2,252

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

50

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,047

)

 

 

(26,047

)

Balance at September 30, 2018

 

 

57,046,563

 

 

$

 

 

$

597,290

 

 

$

(409

)

 

$

(454,341

)

 

$

142,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

 

116,887,518

 

 

$

1

 

 

$

1,150,583

 

 

$

(261

)

 

$

(514,395

)

 

$

635,928

 

Proceeds from sale of stock under

   employee stock purchase plan

 

 

39,977

 

 

 

 

 

 

188

 

 

 

 

 

 

 

 

 

188

 

Exercise of options

 

 

62,204

 

 

 

 

 

 

365

 

 

 

 

 

 

 

 

 

365

 

Share-based compensation expense

 

 

 

 

 

 

 

 

2,094

 

 

 

 

 

 

 

 

 

2,094

 

Restricted stock unit vesting

 

 

132,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

225

 

 

 

 

 

 

225

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(72,421

)

 

 

(72,421

)

Balance at March 31, 2019

 

 

117,122,262

 

 

$

1

 

 

$

1,153,230

 

 

$

(36

)

 

$

(586,816

)

 

$

566,379

 

Issuance of common stock, net of

   issuance costs

 

 

1,384,520

 

 

 

 

 

 

9,035

 

 

 

 

 

 

 

 

 

9,035

 

Exercise of options

 

 

300,592

 

 

 

 

 

 

195

 

 

 

 

 

 

 

 

 

195

 

Retired shares

 

 

(55,324

)

 

 

 

 

 

(426

)

 

 

 

 

 

 

 

 

(426

)

Share-based compensation expense

 

 

 

 

 

 

 

 

2,284

 

 

 

 

 

 

 

 

 

2,284

 

Restricted stock unit vesting

 

 

35,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

59

 

 

 

 

 

 

59

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(58,170

)

 

 

(58,170

)

Balance at June 30, 2019

 

 

118,787,301

 

 

$

1

 

 

$

1,164,318

 

 

$

23

 

 

$

(644,986

)

 

$

519,356

 

Proceeds from sale of stock under

   employee stock purchase plan

 

 

47,553

 

 

 

 

 

 

195

 

 

 

 

 

 

 

 

 

195

 

Share-based compensation expense

 

 

 

 

 

 

 

 

2,613

 

 

 

 

 

 

 

 

 

2,613

 

Restricted stock unit vesting

 

 

28,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/loss

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

 

 

 

(17

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54,585

)

 

 

(54,585

)

Balance at September 30, 2019

 

 

118,863,735

 

 

$

1

 

 

$

1,167,126

 

 

$

6

 

 

$

(699,571

)

 

$

467,562

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements

7


AKEBIA THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(185,176

)

 

$

(83,534

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,659

 

 

 

638

 

Amortization of intangibles

 

 

27,301

 

 

 

 

Amortization of premium/discount on investments

 

 

(795

)

 

 

(698

)

Non-cash interest expense

 

 

508

 

 

 

 

Non-cash operating lease expense

 

 

(1,673

)

 

 

 

Fair value write-up of inventory sold

 

 

51,604

 

 

 

 

Write-down of inventory to net realizable value

 

 

5,968

 

 

 

 

Stock-based compensation

 

 

6,991

 

 

 

6,978

 

Deferred income taxes

 

 

(4,879

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(12,988

)

 

 

33,528

 

Inventory

 

 

(28,565

)

 

 

 

Prepaid expenses and other current assets

 

 

9,415

 

 

 

(346

)

Other long-term assets

 

 

3,145

 

 

 

67

 

Accounts payable

 

 

26,438

 

 

 

5,686

 

Accrued expense

 

 

(29,176

)

 

 

42,118

 

Operating lease liabilities

 

 

1,577

 

 

 

 

Deferred revenue

 

 

(36,660

)

 

 

(28,101

)

Deferred rent

 

 

 

 

 

(131

)

Net cash used in operating activities

 

 

(165,306

)

 

 

(23,795

)

Investing activities:

 

 

 

 

 

 

 

 

Purchase of equipment

 

 

(6,435

)

 

 

(776

)

Proceeds from the maturities of available for sale securities

 

 

130,610

 

 

 

180,091

 

Proceeds from sales of available for sale securities

 

 

64,721

 

 

 

13,000

 

Purchase of available for sale securities

 

 

 

 

 

(172,438

)

Net cash provided by investing activities

 

 

188,896

 

 

 

19,877

 

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from the issuance of common stock, net of issuance costs

 

 

9,035

 

 

 

95,453

 

Proceeds from the sale of stock under employee stock purchase plan

 

 

383

 

 

 

482

 

Proceeds from the exercise of stock options

 

 

560

 

 

 

555

 

Retirement of treasury stock

 

 

(426

)

 

 

 

Payments on debt

 

 

(15,000

)

 

 

 

Payments on capital lease obligations

 

 

 

 

 

(13

)

Net cash provided by (used in) financing activities

 

 

(5,448

)

 

 

96,477

 

Increase in cash, cash equivalents, and restricted cash

 

 

18,142