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SEC Filings

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

With respect to development of NHS Collaboration Products for CDI under a global development plan, we agreed to pay all costs of Phase 2 clinical trials for SER-109 and for Phase 3 clinical trials for SER-109. We agreed to bear all costs of conducting any Phase 1 or Phase 2 clinical trials under a global development plan for NHS Collaboration Products other than SER-109 for CDI. We agreed to pay at least 67% and NHS agreed to pay up to 33% of other costs of Phase 3 clinical trials conducted for NHS Collaboration Products other than SER-109 for CDI under a global development plan in certain scenarios. For other clinical development of NHS Collaboration Products for CDI, we agreed to pay costs of such development activities to support approval in the United States and Canada, and NHS agreed to bear the cost of such activities to support approval of NHS Collaboration Products in the Licensed Territory

 

As of September 30, 2018, we had cash, cash equivalents and investments totaling $72.9 million and an accumulated deficit of $368.1 million.  Based on our current plans and forecasted expenses, we believe that our existing cash, cash equivalents, and investments as of September 30, 2018, will enable us to fund our operating expenses and capital expenditure requirements into the second quarter of 2019. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect.  These factors raise substantial doubt about our ability to continue as a going concern.

Cash Flows

The following table summarizes our sources and uses of cash for each of the periods presented:

 

 

 

Nine Months Ended

September 30,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Cash (used in) operating activities

 

$

(75,520

)

 

$

(54,915

)

Cash provided by investing activities

 

 

94,922

 

 

 

46,406

 

Cash provided by financing activities

 

 

223

 

 

 

108

 

Net decrease in cash, cash equivalents and restricted cash

 

$

19,625

 

 

$

(8,401

)

 

Operating Activities

During the nine months ended September 30, 2018, operating activities used $75.5 million of cash, primarily due to a net loss of $77.7 million and cash used from changes in our operating assets and liabilities of $16.4 million, partially offset by non-cash charges of $18.6 million.  Net cash used for changes in our operating assets and liabilities during the nine months ended September 30, 2018 consisted of an increase in accrued expenses and other current liabilities of $1.3 million, an increase in accounts payable of $0.1 million, and an increase in prepaid expenses and other current assets of $1.5 million. The increases were partially offset by a decrease in deferred revenue of $16.3 million. The increase in accrued expenses and increase in accounts payable were due to the timing of payments. The decrease in deferred revenue was primarily due to recognition of $16.7 million in collaboration revenue during the nine months ended September 30, 2018.

During the nine months ended September 30, 2017, operating activities used $54.9 million of cash, primarily due to a net loss of $60.4 million and cash used from changes in our operating assets and liabilities of $12.8 million, partially offset by non-cash charges of $18.3 million.  Net cash used for changes in our operating assets and liabilities during the nine months ended September 30, 2017 consisted of a $1.1 million decrease in accrued expenses and other current liabilities, a decrease in accounts payable of $2.5 million, and a decrease in deferred revenue of $9.0 million, and an increase in prepaid expenses and other current assets of $0.2 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 related to the $120.0 million upfront payment under the License Agreement over the estimated performance period of 10 years.

Investing Activities

During the nine months ended September 30, 2018, net cash provided by investing activities was $94.9 million, consisting of sales and maturities of investments of $118.9 million. The increase was partially offset by purchases of investments of $21.8 million and purchases of property and equipment of $2.1 million.

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