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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)

 

 

development milestones, which were previously recognized in the period when the milestone was achieved, will be recognized over the remaining performance period under ASC 606.

The cumulative effect of applying ASC 606 as of the adoption date of January 1, 2018, was recorded as an adjustment to accumulated deficit in the statement of stockholders’ equity (deficit). As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet on January 1, 2018:

 

 

 

As Reported at

 

 

Adjustments Due to

 

 

Balance at

 

 

 

December 31, 2017

 

 

ASC 606

 

 

January 1, 2018

 

Deferred revenue - related party

 

 

12,079

 

 

 

5,339

 

 

 

17,418

 

Deferred revenue, net of current portion - related party

 

 

84,847

 

 

 

21,518

 

 

 

106,365

 

Accumulated deficit

 

 

(263,571

)

 

 

(26,857

)

 

 

(290,428

)

 

The following table compares the reported consolidated balance sheet as of December 31, 2018 to the pro-forma amounts had ASC 605 been in effect:

 

 

 

As of December 31, 2018

 

 

 

As Reported under

ASC 606

 

 

Pro forma as if

accounted for

under ASC 605

 

Deferred revenue - related party

 

 

20,419

 

 

 

12,118

 

Deferred revenue, net of current portion - related party

 

 

116,840

 

 

 

73,004

 

Accumulated deficit

 

 

(389,370

)

 

 

(337,233

)

 

Total reported liabilities were $52,137 greater as reported under ASC 606 than would have been reported under ASC 605 as of December 31, 2018. This change consists of a $43,836 increase in deferred revenue, net of current portion, related party, and a $8,301 increase in deferred revenue - related parties.

 

The following table compares the reported consolidated statements of operations and comprehensive loss for the year ended December 31, 2018 to the pro forma amounts had ASC 605 been in effect:

 

 

 

Year Ended

December 31, 2018

 

 

 

As Reported under

ASC 606

 

 

Pro forma as if

accounted for

under ASC 605

 

Collaboration revenue - related party

 

$

26,917

 

 

$

52,197

 

Loss from operations

 

$

(100,284

)

 

 

(75,004

)

Net loss

 

$

(98,942

)

 

 

(73,662

)

Net loss per share attributable to common stockholders,

   basic and diluted

 

$

(2.43

)

 

$

(1.81

)

 

Collaboration revenue – related party decreased by approximately $25,280 as reported under ASC 606 when compared to what would have been reported under ASC 605 for the year ended December 31, 2018.

 

The following table compares the reported consolidated statements of cash flows for the year ended December 31, 2018 to the pro forma amounts had ASC 605 been in effect:

 

 

 

Year Ended December 31, 2018

 

 

 

As Reported under

ASC 606

 

 

Pro forma as if

accounted for

under ASC 605

 

Net loss

 

$

(98,942

)

 

$

(73,662

)

Deferred revenue

 

$

13,476

 

 

 

(11,804

)

F-22



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