Affymax, Inc. (OTCQB:AFFY) today reported financial results for the second quarter ending June 30, 2014. The net income for the second quarter of 2014 was $7.2 million (or $0.19 per share) compared to net income of $15.4 million (or $0.41 per share) for the second quarter of 2013.
Net income for the quarter resulted from receipt of written notice of termination of the Collaboration and License Agreement from Takeda on June 10, 2014. As a result of termination of the agreement the Company has been relieved of the entire balance of the launch loan due Takeda of $8.2 million. The liability was derecognized and recorded as a credit to other income on the Condensed Statement of Comprehensive Income (Loss). The income had previously been recognized for tax purposes and no tax liability will result as the company will still be in a loss position for 2014.
AFFYMAX, INC. | |||||||||
| CONDENSED BALANCE SHEETS | |||||||||
| (in thousands, except share data) | |||||||||
| June 30, | December 31, | ||||||||
| 2014 | 2013 | ||||||||
| (unaudited) | |||||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash | $ | 3,399 | $ | 5,597 | |||||
| Prepaid expenses | 1,055 | 725 | |||||||
| Total current assets | 4,454 | 6,322 | |||||||
| Other assets | 930 | 1,121 | |||||||
| Total assets | $ | 5,384 | $ | 7,443 | |||||
| Liabilities and Stockholders’ Equity (Deficit) | |||||||||
| Current liabilities | |||||||||
| Accounts payable | $ | 80 | $ | 101 | |||||
| Accrued restructuring | 65 | 315 | |||||||
| Other accrued liabilities | 69 | 266 | |||||||
| Advance from Takeda | — | 8,189 | |||||||
| Total current liabilities | 214 | 8,871 | |||||||
| Stockholders’ equity (deficit) | |||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized, 37,490,095 shares issued and outstanding | 37 | 37 | |||||||
| Additional paid-in capital | 557,453 | 556,672 | |||||||
| Accumulated deficit | (552,320 | ) | (558,137 | ) | |||||
| Total stockholders’ equity (deficit) | 5,170 | (1,428 | ) | ||||||
| Total liabilities and stockholders’ equity (deficit) | $ | 5,384 | $ | 7,443 | |||||
| AFFYMAX, INC. | ||||||||||||||||||
| CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
Three Months Ended | Six Months Ended June 30, | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||||
| Revenue: | ||||||||||||||||||
| Collaboration revenue | $ | — | $ | 525 | $ | — | $ | 1,364 | ||||||||||
| License and royalty revenue | 42 | — | 42 | 5 | ||||||||||||||
| Total revenue | 42 | 525 | 42 | 1,369 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | — | 2,235 | — | 12,024 | ||||||||||||||
| Selling, general and administrative | 1,066 | 528 | 2,559 | 25,173 | ||||||||||||||
| Collaboration cost reimbursement | — | (23,073 | ) | — | (43,451 | ) | ||||||||||||
| Impairment (gain on disposal) of prepaid expenses, fixed assets and intangible assets | — | (560 | ) | — | 4,580 | |||||||||||||
| Restructuring charge | (71 | ) | 7,124 | (172 | ) | 15,340 | ||||||||||||
| Total operating expenses | 995 | (13,746 | ) | 2,387 | 13,666 | |||||||||||||
| Income (loss) from operations | (953 | ) | 14,271 | (2,345 | ) | (12,297 | ) | |||||||||||
| Interest income | — | 6 | — | 21 | ||||||||||||||
| Interest expense | — | (1,073 | ) | — | (1,565 | ) | ||||||||||||
| Other income, net | 8,162 | 10 | 8,162 | 10 | ||||||||||||||
| Income (loss) before provision (benefit) for income taxes | 7,209 | 13,214 | 5,817 | (13,831 | ) | |||||||||||||
| (Benefit) for income taxes | — | (2,158 | ) | — | (2,158 | ) | ||||||||||||
| Net income (loss) and comprehensive income (loss) | $7,209 | $ | 15,372 | $5,817 | $(11,673 | ) | ||||||||||||
| Net income (loss) per share: | ||||||||||||||||||
Basic | $ | 0.19 | $ | 0.41 | $ | 0.16 | $ | (0.31 | ) | |||||||||
| Diluted | $ | 0.19 | $ | 0.41 | $ | 0.16 | $ | (0.31 | ) | |||||||||
| Weighted-average number of shares used in computing net income (loss) per share | ||||||||||||||||||
| Basic | 37,490 | 37,490 | 37,490 | 37,480 | ||||||||||||||
| Diluted | 37,490 | 37,495 | 37,490 | 37,480 | ||||||||||||||
Contacts:
Lisa Maxson, 650-812-8700
