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SEC Filings

10-Q
SERES THERAPEUTICS, INC. filed this Form 10-Q on 11/08/2018
Entire Document
 

Our general and administrative expenses may increase in the future if we increase our headcount to support the potential growth in our research and development activities and the potential commercialization of our product candidates. We also may continue to incur increased expenses associated with being a public company, including increased costs of accounting, audit, legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance costs and investor and public relations costs.

Other Income (Expense), Net

Interest Income (Expense), Net

Interest income consists of interest earned on our cash, cash equivalents and investments.

Income Taxes

Since our inception in 2010, we have not recorded any U.S. federal or state income tax benefits for the net losses we have incurred in each year or our earned research and development tax credits, due to our uncertainty of realizing a benefit from those items. We did not provide for any income taxes in the three or nine months ended September 30, 2018 or 2017.

Critical Accounting Policies and Significant Judgments and Estimates

Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). The preparation of these condensed consolidated financial statements requires the application of appropriate technical accounting rules and guidance, as well as the use of estimates. The application of these policies necessarily involves judgments regarding future events. These estimates and judgments, in and of themselves, could materially impact the condensed consolidated financial statements and disclosures based on varying assumptions. The accounting policies discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 are considered by management to be the most important to an understanding of the consolidated financial statements because of their significance to the portrayal of our financial condition and results of operations. There have been no material changes to that information disclosed in our Annual Report on Form 10-K during the three and nine months ended September 30, 2018 except for the adoption of the new revenue standard discussed in Footnote 8, Collaboration Revenue.

Results of Operations

Comparison of Three Months Ended September 30, 2018 and 2017

The following table summarizes our results of operations for the three months ended September 30, 2018 and 2017:

 

 

 

Three Months Ended

September 30,

 

 

 

 

 

 

 

2018

 

 

2017

 

 

Change

 

 

 

(in thousands)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Collaboration revenue - related party

 

$

8,684

 

 

$

23,015

 

 

$

(14,331

)

Grant Revenue

 

 

371

 

 

 

 

 

 

371

 

Total revenue

 

 

9,055

 

 

 

23,015

 

 

 

(13,960

)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

23,675

 

 

 

22,210

 

 

 

1,465

 

General and administrative

 

 

7,591

 

 

 

8,119

 

 

 

(528

)

Total operating expenses

 

 

31,266

 

 

 

30,329

 

 

 

937

 

Loss from operations

 

 

(22,211

)

 

 

(7,314

)

 

 

(14,897

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

262

 

 

 

379

 

 

 

(117

)

Total other income (expense), net

 

 

262

 

 

 

379

 

 

 

(117

)

Net loss

 

$

(21,949

)

 

$

(6,935

)

 

$

(15,014

)

 

Revenue

 

Total revenue was $9.1 million and $23.0 million for the three months ended September 30, 2018 and 2017, respectively. The revenue for both periods principally relates to the recognition of amounts received under the License Agreement.  The decrease is

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