Aptevo Therapeutics(APVO) - 2020 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2020, the company reported a net income of $2.9 million, a significant improvement compared to a net loss of $12.0 million for the same period in 2019[80]. - The company recognized net income from discontinued operations totaling $12.9 million, which included a gain on the sale of Aptevo BioTherapeutics of $14.3 million[94]. - For the three months ended March 31, 2020, the company reported a net income of $2.9 million, compared to a net loss of $12.0 million for the same period in 2019[108]. Accumulated Deficit and Cash Position - The company had an accumulated deficit of $165.0 million as of March 31, 2020[80]. - Cash and cash equivalents amounted to $12.3 million, with restricted cash of $2.5 million as of March 31, 2020[98]. - Cash and cash equivalents as of March 31, 2020, were $12.3 million, with restricted cash of $2.5 million and an accumulated deficit of $165.0 million[108]. Operating Expenses - Research and development expenses decreased by $2.6 million to $4.0 million for the three months ended March 31, 2020, down from $6.6 million for the same period in 2019[89]. - General and administrative expenses decreased by $0.9 million, or 20%, to $3.6 million for the three months ended March 31, 2020, compared to $4.5 million for the same period in 2019[91]. Cash Flow and Debt Management - Net cash used in operating activities was $11.2 million for the three months ended March 31, 2020, primarily due to changes in working capital accounts[100]. - Net cash used in operating activities for the three months ended March 31, 2020, was $11.2 million[109]. - The company used $22.1 million from the proceeds of the sale of Aptevo BioTherapeutics to fully repay its term debt facility, relieving it of a $5 million cash restriction[99]. Clinical Development and Partnerships - The company is currently enrolling patients in a Phase 1/1b clinical study of APVO436 for Acute Myeloid Leukemia (AML) and has been selected for inclusion in the Beat AML Master Clinical Trial[85]. - The company has a purchase obligation of $8.1 million over the next four years for participation in the Beat AML Master Clinical Trial[118]. - The company sold worldwide rights to IXINITY to Medexus for an upfront payment of $30 million and potential milestone payments totaling up to $11 million[85]. Future Outlook and Funding - The company anticipates significant operating losses for the next several years as it continues to execute its development strategy[116]. - The company is exploring options to secure additional funding, including potential sales of common stock and establishing credit lines[111]. - The company has a commitment to purchase up to $35.0 million worth of common stock over a 36-month period under the Purchase Agreement with Lincoln Park[105]. - The company has the ability to sell up to an additional $17.3 million of common stock under the Equity Distribution Agreement with Piper Sandler[103]. - The company has not issued any additional shares under the Equity Distribution Agreement in the first quarter of 2020[103]. - The company may experience delays in partnering product candidates due to COVID-19, impacting future deferred payments from Medexus[110].