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SEC Filings

10-K
SERES THERAPEUTICS, INC. filed this Form 10-K on 03/16/2017
Entire Document
 

Upon the listing of our common stock on the NASDAQ on June 26, 2015, the preferred stock warrant became a warrant to purchase common stock. We performed the final mark to market adjustment on the preferred stock warrant using the fair value of the underlying common shares of $18.00 per share on June 26, 2015 and recorded the change in fair value in other income (expense), net in the consolidated statement of operations and comprehensive loss. The preferred stock warrant liability was then reclassified to additional paid-in-capital as it became a warrant to purchase common stock.

Emerging Growth Company Status

The Jumpstart Our Business Startups Act of 2012, or the JOBS Act, permits an ‘‘emerging growth company’’ such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have irrevocably elected to ‘‘opt out’’ of this provision and, as a result, we will comply with new or revised accounting standards when they are required to be adopted by public companies that are not emerging growth companies.

Results of Operations

Comparison of the Years Ended December 31, 2016 and 2015

Revenue

 

Total revenue was $21.8 million for the year ended December 31, 2016.  Of this $21.8 million, $10.0 million was received from NHS associated with the initiation of the Phase 1b study for SER-262 in CDI which is a substantive development milestone under the License Agreement. We recognized revenue associated with substantive milestones in accordance with FASB ASC Topic 605-28, Revenue Recognition-Milestone Method. The $10.0 million was recognized in full as related party collaboration revenue during the year ended December 31, 2016.  The remaining $11.8 million relates to the recognition of the $120.0 million upfront payment from NHS over the estimated performance period of 10 years. We had no revenue for the year ended December 31, 2015.  

The following table summarizes our results of operations for the years ended December 31, 2016 and 2015:

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

 

(in thousands)

 

Revenue

 

$

21,766

 

 

$

 

 

$

21,766

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

81,989

 

 

$

38,095

 

 

$

43,894

 

General and administrative

 

 

32,616

 

 

 

16,761

 

 

 

15,855

 

Total operating expenses

 

 

114,605

 

 

 

54,856

 

 

 

59,749

 

Loss from operations

 

 

(92,839

)

 

 

(54,856

)

 

 

(37,983

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

2,229

 

 

 

638

 

 

 

1,591

 

Interest expense

 

 

(969

)

 

 

(555

)

 

 

(414

)

Revaluation of preferred stock warrant liability

 

 

 

 

 

(7

)

 

 

7

 

Total other income (expense), net

 

 

1,260

 

 

 

76

 

 

 

1,184

 

Net loss

 

$

(91,579

)

 

$

(54,780

)

 

$

(36,799

)

 

Research and Development Expenses

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

 

(in thousands)

 

Microbiome therapeutics platform

 

$

46,611

 

 

$

20,603

 

 

$

26,008

 

SER-109

 

 

25,386

 

 

 

13,828

 

 

 

11,558

 

SER-262

 

 

5,269

 

 

 

1,549

 

 

 

3,720

 

SER-287

 

 

4,723

 

 

 

2,115

 

 

 

2,608

 

Total research and development expenses

 

$

81,989

 

 

$

38,095

 

 

$

43,894

 

 

75



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