SIGA Reports Financial Results for Three and Nine Months Ended September 30, 2020
- Third Quarter includes Delivery of Approximately 134,000 Courses of TPOXX® to
- In October, the
- Corporate Update Conference Call Today at
“SIGA’s third quarter was highlighted by the delivery of approximately 134,000 courses of oral TPOXX® to the strategic national stockpile (SNS),” said
Summary Financial Results
($ in millions, except per share amounts)
Three Months Ended
Three Months Ended 2020 |
Three Months Ended 2019 |
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Total Revenues Operating Income (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share |
( ( ( |
Nine Months Ended
Nine Months Ended September 30, 2020 |
Nine Months Ended 2019 |
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Total Revenues Operating Income (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share |
( ( ( |
(1) Operating Income excludes, and Income (Loss) before Income Taxes includes, costs in connection with the retirement of the Company’s term loan, interest expense, interest income and adjustments to the fair value of the Company’s outstanding warrant. Both line items exclude the impact of income taxes.
Recent Key Activities:
- In the third quarter of 2020, the Company delivered approximately 134,000 courses of oral TPOXX® to the SNS. SIGA has recognized
$41.4 million of revenue in connection with this delivery, of which$4.1 million relates to amounts previously received in connection with raw material procurement and which were recorded as deferred revenue. - In
October 2020 , the Company delivered approximately 112,000 courses of oral TPOXX® to the SNS. This delivery will be reflected in the financial results for the fourth quarter 2020. - In
October 2020 , thePublic Health Agency of Canada (PHAC) issued an advanced contract award notice (ACAN), indicating that the PHAC intends to purchase up to 33,300 courses of oral TPOXX® within five years as specified in the ACAN, with 3,700 courses to be delivered by March 31, 2021; a cumulative total of 18,500 courses to be delivered by March 31, 2023; and an additional 14,800 courses to be delivered after March 31, 2023, subject to option exercise. This ACAN follows, but is separate and incremental to, the issuance inApril 2020 of a contract by the Canadian Department of National Defence (CDND) for the delivery of up to 15,325 courses of oral TPOXX®.
Share Repurchase Activity
During the third quarter of 2020, SIGA repurchased approximately 0.9 million shares of its common stock, for approximately
Product Delivery Update in Connection with the 19C BARDA Contract
Pursuant to options already exercised under the 19C BARDA Contract, SIGA delivered approximately 251,000 courses of oral TPOXX® to the SNS over the first nine months of 2020. In October, an additional approximate 112,000 courses of oral TPOXX® were delivered to the SNS. As such, total deliveries of oral TPOXX® under the 19C BARDA Contract are expected to total approximately 363,000 courses for the calendar year 2020, resulting in annual revenues of approximately
COVID-19 Pandemic
The COVID-19 pandemic has caused significant societal and economic disruption. Such disruption, and the associated risks and costs, are expected to continue for an indeterminate period of time. Given the uncertain future course of the COVID-19 pandemic, and the uncertain scale and scope of its future impact, the Company is continually reviewing business and financial risks related to the pandemic and is continually seeking coordination with its government partners with respect to the performance of current and future government contracts. Additionally, the Company is continually coordinating with service providers and vendors, in particular contract manufacturing organizations that constitute our supply chain, to review actions and risks caused by the COVID-19 pandemic.
The COVID-19 pandemic has not adversely affected the liquidity position of the Company, nor is it currently expected to have a material adverse effect on the financial condition or annual financial results of the Company, although the Company cannot provide assurances as to the ultimate impact of the pandemic upon the macro environment or the Company’s industry.
Conference Call and Webcast
SIGA will host a conference call and webcast to provide a business update today,
Participants may access the call by dialing 877-407-6184 for domestic callers or 201-389-0877 for international callers. A live webcast of the call will also be available on the Company's website at www.siga.com under the 'Events & Presentations' tab in the Investor Relations section, or by clicking here. Please log in approximately 5-10 minutes prior to the scheduled start time.
A replay of the call will be available for two weeks by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers and using Conference ID: 13711770. The archived webcast will be available in the Events and Presentations section of the Company's website.
ABOUT
About Smallpox1
Smallpox is a contagious, disfiguring and often deadly disease that has affected humans for thousands of years. Naturally occurring smallpox was eradicated worldwide by 1980, the result of an unprecedented global immunization campaign. Samples of smallpox virus have been kept for research purposes. This has led to concerns that smallpox could someday be used as a biological warfare agent. A vaccine can prevent smallpox, but the risk of the current vaccine's side effects is too high to justify routine vaccination for people at low risk of exposure to the smallpox virus.
FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are subject to various known and unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this press release, is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K for the year ended December 31, 2019, and in other documents that SIGA has filed with the SEC. SIGA urges investors and security holders to read those documents free of charge at the SEC's web site at http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements are current only as of the date on which such statements were made, and except for our ongoing obligations under the
The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official endorsement should be inferred.
Contacts:
Investors
212-867-1768
david.carey@finnpartners.com
Media
206-713-0124
stephanie.seiler@finnpartners.com
1 http://www.mayoclinic.org/diseases-conditions/smallpox/basics/definition/con-20022769
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 78,663,526 | $ | 65,249,072 | ||||
Restricted cash and cash equivalents, short-term | - | 95,737,862 | ||||||
Accounts receivable | 40,398,708 | 4,167,996 | ||||||
Inventory | 10,747,532 | 9,652,855 | ||||||
Prepaid expenses and other current assets | 1,290,388 | 5,234,000 | ||||||
Total current assets | 131,100,154 | 180,041,785 | ||||||
Property, plant and equipment, net | 2,236,668 | 2,618,303 | ||||||
Deferred tax assets, net | 6,484,111 | 14,151,002 | ||||||
898,334 | 898,334 | |||||||
Other assets | 702,885 | 856,766 | ||||||
Total assets | $ | 141,422,152 | $ | 198,566,190 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,118,307 | $ | 3,054,032 | ||||
Accrued expenses and other current liabilities | 15,182,437 | 8,636,911 | ||||||
Total debt, current | - | 80,044,866 | ||||||
Total current liabilities | 16,300,744 | 91,735,809 | ||||||
Warrant liability | 9,026,690 | 6,116,882 | ||||||
Other liabilities | 3,134,304 | 2,929,743 | ||||||
Total liabilities | 28,461,738 | 100,782,434 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Common stock ( |
7,777 | 8,127 | ||||||
Additional paid-in capital | 221,587,384 | 220,808,037 | ||||||
Accumulated deficit | (108,634,747 | ) | (123,032,408 | ) | ||||
Total stockholders’ equity | 112,960,414 | 97,783,756 | ||||||
Total liabilities and stockholders’ equity | $ | 141,422,152 | $ | 198,566,190 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | ||||||||||||||||
Product sales and supportive services | $ | 41,810,192 | $ | 3,915,335 | $ | 80,547,651 | $ | 11,057,735 | ||||||||
Research and development | 2,451,215 | 4,195,989 | 6,682,298 | 11,420,284 | ||||||||||||
Total revenues | 44,261,407 | 8,111,324 | 87,229,949 | 22,478,019 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of sales and supportive services | 5,559,215 | 737,274 | 10,465,078 | 1,652,641 | ||||||||||||
Selling, general and administrative | 3,566,258 | 3,196,370 | 10,613,267 | 9,755,165 | ||||||||||||
Research and development | 2,073,613 | 3,343,521 | 7,933,404 | 9,379,125 | ||||||||||||
Patent expenses | 164,102 | 173,580 | 520,902 | 543,806 | ||||||||||||
Total operating expenses | 11,363,188 | 7,450,745 | 29,532,651 | 21,330,737 | ||||||||||||
Operating income | 32,898,219 | 660,579 | 57,697,298 | 1,147,282 | ||||||||||||
(Loss) gain from change in fair value of warrant liability | (1,274,156 | ) | 981,923 | (2,909,808 | ) | 4,774,711 | ||||||||||
Loss on extinguishment of Term Loan | - | - | (4,981,461 | ) | - | |||||||||||
Interest expense | - | (3,971,952 | ) | (3,016,817 | ) | (11,871,401 | ) | |||||||||
Other income, net | 24,932 | 759,881 | 469,226 | 2,233,588 | ||||||||||||
Income (loss) before income taxes | 31,648,995 | (1,569,569 | ) | 47,258,438 | (3,715,820 | ) | ||||||||||
(Provision) benefit for income taxes | (7,461,038 | ) | 363,742 | (11,077,854 | ) | 977,278 | ||||||||||
Net and comprehensive income (loss) | $ | 24,187,957 | $ | (1,205,827 | ) | $ | 36,180,584 | $ | (2,738,542 | ) | ||||||
Basic income (loss) per share | $ | 0.31 | $ | (0.01 | ) | $ | 0.45 | $ | (0.03 | ) | ||||||
Diluted income (loss) per share | $ | 0.31 | $ | (0.03 | ) | $ | 0.45 | $ | (0.09 | ) | ||||||
Weighted average shares outstanding: basic | 78,080,461 | 81,064,927 | 79,880,493 | 80,988,813 | ||||||||||||
Weighted average shares outstanding: diluted | 78,168,070 | 82,181,858 | 80,051,778 | 82,148,333 |
Source: SIGA Technologies Inc.