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SEC Filings

10-K
SERES THERAPEUTICS, INC. filed this Form 10-K on 03/06/2019
Entire Document
 

 

SERES THERAPEUTICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except share and per share data)

 

 

 

 

The Company adopted the new leasing standards on January 1, 2019, using a modified retrospective transition approach to be applied to leases existing as of, or entered into after, January 1, 2019. The Company elected to apply the package of practical expedients which allows entities not to reassess whether contracts are or contain leases, lease classification, and whether initial direct costs qualify for capitalization. Additionally, the Company elected not to separate lease and non-lease components. The Company’s primary operating leases represent the lease of its corporate headquarters at 200 Sidney Street and a lease for additional research space at 215 First Street, both in Cambridge, Massachusetts.  Upon adoption of the new leasing standards, the Company expects to recognize a lease liability of approximately $25,000 and a related right-of-use asset of approximately $14,000 on its consolidated balance sheet with the difference being due to the elimination of previously reported lease incentive obligations and deferred rent. The impact of adoption of the new leasing standards will have an immaterial impact to the Company’s consolidated statements of operations and comprehensive loss and cash flows.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718). ASU 2018-07 simplifies the accounting for nonemployee share-based payment t awards and aligns the accounting for share-based payment awards issued to employees and non-employees. The ASU expands the scope of Topic 718 to apply to non-employee awards under which non-employee awards will be measured on the grant date and the associated compensation cost will be recognized over the vesting period.. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018. The adoption of ASU 2018-17 is not expected to have a material impact on the Company’s financial statements.

 

In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). This standard eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods and early adoption is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2018-13 on its consolidated financial statements.

 

 

3.

Fair Value of Financial Assets and Liabilities

The following tables present information about the Company’s assets and liabilities as of December 31, 2018 and 2017 that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:

 

 

 

Fair Value Measurements as of December 31, 2018 Using:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Not Subject to

Leveling (1)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents

 

$

 

 

$

 

 

$

 

 

$

39,982

 

 

$

39,982

 

 

 

$

 

 

$

 

 

$

 

 

$

39,982

 

 

$

39,982

 

(1)

Certain cash equivalents and investments that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

F-16



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