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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)

 

 

13.

Selected Quarterly Financial Data (Unaudited)

The following table contains quarterly financial information for 2018 and 2017. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair statement of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.

 

 

 

2018

 

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

Total

 

Collaboration revenue - related party (1)

 

$

3,766

 

 

$

4,271

 

 

$

8,684

 

 

$

10,196

 

 

$

26,917

 

Grant revenue

 

 

205

 

 

 

341

 

 

 

371

 

 

 

433

 

 

 

1,350

 

Total operating expenses

 

 

32,237

 

 

 

32,748

 

 

 

31,266

 

 

 

32,300

 

 

 

128,551

 

Loss from operations

 

 

(28,266

)

 

 

(28,136

)

 

 

(22,211

)

 

 

(21,671

)

 

 

(100,284

)

Net loss

 

 

(27,919

)

 

 

(27,787

)

 

 

(21,949

)

 

 

(21,287

)

 

 

(98,942

)

Net loss per share applicable to common

   stockholders - basic and diluted

 

$

(0.69

)

 

$

(0.68

)

 

$

(0.54

)

 

$

(0.52

)

 

$

(2.43

)

 

 

 

2017

 

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

Total

 

Collaboration revenue - related party  (1)

 

$

3,015

 

 

$

3,014

 

 

$

23,015

 

 

$

3,056

 

 

$

32,100

 

Total operating expenses

 

 

28,905

 

 

 

31,430

 

 

 

30,329

 

 

 

32,831

 

 

 

123,495

 

Loss from operations

 

 

(25,890

)

 

 

(28,416

)

 

 

(7,314

)

 

 

(29,775

)

 

 

(91,395

)

Net loss

 

 

(25,474

)

 

 

(28,018

)

 

 

(6,935

)

 

 

(28,953

)

 

 

(89,380

)

Net loss per share applicable to common

   stockholders - basic and diluted

 

$

(0.63

)

 

$

(0.69

)

 

$

(0.17

)

 

$

(0.72

)

 

$

(2.21

)

 

(1)

The Company adopted ASC 606 on January 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. The Company’s reported results for 2018 reflect the application of ASC 606 guidance while its reported results for 2017 and 2016 were prepared under the guidance outlined in ASC 605.  Refer to Note 9 for further details.

 

 

14.

Related Party Transactions

In October 2010, the Company entered into a services agreement with Flagship Ventures Management, Inc., an affiliate of one of its stockholders (and now known as Flagship Pioneering), Flagship Venture Funds, to provide general and administrative services to the Company, including the employer portions of employee health and dental benefit plans for the Company’s employees and consulting services. The Company made payments under the agreement of $17 during the year ended December 31, 2016. There were no payments made during the year ended December 31, 2018 and 2017. There were no amounts due to Flagship Pioneering related to the services agreement as of December 31, 2018 and 2017.

As described in Note 9, in January 2016 the Company entered into a License Agreement and, in November 2018, a letter agreement with NHS for the development and commercialization of certain product candidates in development for the treatment and management of CDI and IBD, including UC and Crohn’s disease. NHS is a related party since NHS is an affiliate of Nestlé Health Science, one of the Company’s significant stockholders. During the year ended December 31, 2018, 2017, and 2016, the Company recognized $26,917, $32,100, and $21,766, respectively, of related party revenue associated with the License Agreement. As of December 31, 2018 and 2017, there was $137,259 and $96,926, respectively, of deferred revenue related to the License Agreement, which is classified as current or non-current in the consolidated balance sheets. The Company has made no payments to NHS during the year ended December 31, 2018. There is no amount due from NHS as of December 31, 2018.

 

 

F-30



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