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SEC Filings

10-Q
SERES THERAPEUTICS, INC. filed this Form 10-Q on 05/09/2018
Entire Document
 

During the three months ended March 31, 2017, operating activities used $25.6 million of cash, primarily due to a net loss of $25.5 million and cash used from changes in our operating assets and liabilities of $6.1 million, partially offset by non-cash charges of $6.0 million.  Net cash used for changes in our operating assets and liabilities during the three months ended March 31, 2017 consisted of a $1.1 million decrease in accrued expenses and other current liabilities, a decrease in accounts payable of $1.9 million, and a decrease in deferred revenue of $3.0 million. The decreases in accrued expenses and accounts payable were due to the timing of payments. The decrease in deferred revenue was due to the recognition of revenue under the License Agreement over the estimated performance period of 10 years.

Investing Activities

During the three months ended March 31, 2018, net cash provided by investing activities was $38.0 million, consisting of sales and maturities of investments of $44.3 million. The increase was partially offset by purchases of investments of $5.3 million and purchases of property and equipment of $1.0 million.

During the three months ended March 31, 2017, net cash provided by investing activities was $13.0 million, consisting of sales and maturities of investments of $37.8 million. The increase was partially offset by purchases of investments of $22.5 million and purchases of property and equipment of $2.2 million.

Financing Activities

During the three months ended March 31, 2018, net cash used by financing activities was $0.2 million in connection with payments for employee tax obligations relating to vesting of restricted stock units and partially offset by the exercise of options to purchase our common stock.

During the three months ended March 31, 2017, net cash provided by financing activities was less than $0.1 million in connection with the exercise of options to purchase our common stock.

Funding Requirements

Our expenses may increase substantially in connection with our ongoing development activities and our research and development activities. In addition, we expect to continue to incur additional costs associated with operating as a public company. We anticipate that our expenses will increase substantially if and as we:

 

continue the clinical development of SER-109, our lead product candidate, in the Phase 3 clinical study;

 

continue the clinical development of SER-287 for the treatment of UC and potential other studies of IBD;

 

advance the pre-clinical development of SER-401, a microbiome therapeutic candidate for use with checkpoint inhibitors in patients with solid tumors;

 

continue the clinical development of SER-262 to be used following antibiotic treatment of primary CDI to reduce recurrence after the initial episode of CDI;

 

conduct research and continue pre-clinical development of additional Ecobiotic® microbiome therapeutic candidates, including SER-155 and SER-301, our rationally designed IBD product candidate;

 

make strategic investments in manufacturing capabilities;

 

maintain and augment our intellectual property portfolio and opportunistically acquire complementary intellectual property;

 

potentially establish a sales and distribution infrastructure and scale-up manufacturing capabilities to commercialize any products for which we may obtain regulatory approval;

 

perform our obligations under the collaboration agreement with NHS

 

experience any delays or encounter any issues with any of the above, including but not limited to failed studies, complex results, safety issues or other regulatory challenges; and

 

seek to obtain regulatory approvals for our product candidates.

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