CYTOKINETICS INC - FORM 8-K - EX-99.1 - February 19, 2014

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Exhibit 99.1

Item 6. Selected Financial Data

On June 24, 2013, the Company effected a one-for-six reverse stock split of its common stock through an amendment to its amended and restated certificate of incorporation (the “COI Amendment”). As of the effective time of the reverse stock split, every six shares of the Company’s issued and outstanding common stock were converted into one issued and outstanding share of common stock, without any change in par value per share. The reverse stock split affected all shares of the Company’s common stock outstanding immediately prior to the effective time of the reverse stock split, as well as the number of shares of common stock available for issuance under the Company’s equity incentive plans. In addition, the reverse stock split effected a reduction in the number of shares of common stock issuable upon the conversion of shares of preferred stock or upon the exercise of stock options or warrants outstanding immediately prior to the effectiveness of the reverse stock split. No fractional shares were issued as a result of the reverse stock split. Stockholders who would otherwise have been entitled to receive a fractional share received cash payments in lieu thereof. In addition, the COI Amendment reduced the number of authorized shares of common stock to 81.5 million.

All references to shares of common stock and per share data for all periods presented in the accompanying selected financial data have been adjusted to reflect the reverse stock split on a retroactive basis.

 

     Year Ended December 31,  
     2012     2011     2010     2009     2008  
     (In thousands, except per share amounts)  

Statement of Operations Data:

           

Revenues:

           

Research and development revenues from related parties(1)

    $ 4,177      $ 2,054      $ 1,487      $ 7,171      $ 186   

Research and development, grant and other revenues

      3,382        1,946        1,090        —          —     

License revenues from related parties(1)

      —          —          —          74,367        12,234   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      7,559        4,000        2,577        81,538        12,420   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

           

Research and development

      35,643        37,182        38,013        39,840        53,950   

General and administrative

      12,429        13,590        14,199        15,626        15,076   

Restructuring charges (reversals)

      (56 )      1,192        —          (23 )      2,473   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      48,016        51,964        52,212        55,443        71,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

      (40,457 )      (47,964 )      (49,635 )      26,095        (59,079 ) 

Interest and other, net(2)

      87        104        172        (1,401 )      2,705   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income taxes

      (40,370 )      (47,860 )      (49,463 )      24,694        (56,374 ) 

Income tax provision (benefit)

      —          —          (176 )      150        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      (40,370 )      (47,860 )      (49,287 )      24,544        (56,374 ) 

Deemed dividend related to beneficial conversion feature of convertible preferred stock

      (1,307 )      (2,857 )      —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) allocable to common stockholders:

    $ (41,677 )    $ (50,717 )    $ (49,287 )    $ 24,544      $ (56,374 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per share allocable to common stockholders:

           

Basic

    $ (2.30 )    $ (4.30 )    $ (4.61 )    $ 2.57      $ (6.85 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ (2.30 )    $ (4.30 )    $ (4.61 )    $ 2.54      $ (6.85 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average shares used in computing net income (loss) per share allocable to common stockholders:(3)

           

Basic

      18,107        11,800        10,694        9,565        8,232   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

      18,107        11,800        10,694        9,660        8,232   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

     As of December 31,  
     2012     2011     2010     2009     2008  
     (In thousands)  

Balance Sheet Data:

           

Cash and cash equivalents, investments, auction rate securities (“ARS”) and investment put option related to ARS

    $ 74,000      $ 49,023      $ 72,845      $ 114,727      $ 76,892   

Restricted cash

      —          196        788        1,674        2,750   

Working capital

      69,322        46,548        66,174        96,735        36,033   

Total assets

      77,551        52,773        77,992        122,599        87,454   

Long-term portion of equipment financing lines

      —          —          152        985        2,615   

Deficit accumulated during the development stage

      (448,880 )      (408,510 )      (360,650 )      (311,363 )      (335,907 ) 

Total stockholders’ equity(3)

      70,085        48,178        70,516        101,428        49,766   

 

(1) Revenues from related parties consisted of revenues recognized under our research and development arrangements with related parties, including Amgen.
(2) Interest and Other, net consisted of interest income/expense and other income/expense. For the years ended December 31, 2010, and 2009, it also included unrealized gains (losses) on ARS and investment put option related to the Series C-2 ARS Rights issued to us by UBS AG. For the year ended December 31, 2009, it also included warrant expense.
(3) In 2009, we sold 599,455 shares of common stock to Kingsbridge Capital Limited (“Kingsbridge”) pursuant to the 2007 committed equity financing facility for net proceeds of $6.9 million. In May 2009, we sold 1,184,433 shares of common stock in a registered direct offering for net proceeds of approximately $12.9 million. In 2010, we sold 889,970 shares of common stock to Kingsbridge pursuant to the 2007 committed equity financing facility for net proceeds of $14.0 million. In April 2011, we sold 883,333 shares of common stock, 8,070 shares of Series A convertible preferred stock and warrants to purchase 1,114,167 shares of common stock to Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P., Deerfield Special Situations Fund, L.P., and Deerfield Special Situations Fund International Limited for net proceeds of approximately $19.9 million. In the fourth quarter of 2011, we sold 429,868 shares of common stock through McNicoll, Lewis & Vlak LLC (“MLV”) for net proceeds of $2.4 million. In June 2012, we issued to various investors (i) 9,320,176 shares of common stock for a purchase price of $4.56 per share, (ii) 23,026 shares of Series B convertible preferred stock for a purchase price of $760.00 per share, and (iii) warrants to purchase 7,894,704 shares of the Company’s common stock at an exercise price of $5.28 per share, for aggregate gross proceeds of approximately $60.0 million. In 2012, we sold 432,724 shares of common stock through MLV for net proceeds of $2.8 million. In June 2013, we sold 1,404,100 shares of common stock to Amgen at a price per share of $7.12 and an aggregate purchase price of $10.0 million, pursuant to the Amgen Agreement Amendment. In 2013, we sold 1,170,583 shares of common stock through MLV for net proceeds of $7.5 million.

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