Financial Performance - Total revenue for 2018 was $1.4 million, a decrease of 97% from $40 million in 2017[363]. - The company generated grant revenue of $1.4 million for the year ended December 31, 2018, and recognized contract revenue of $40.0 million for the year ended December 31, 2017[337]. - Net loss for 2018 was $76.3 million, a reduction of 10% from a net loss of $84.9 million in 2017[363]. - Net cash used in operating activities was $29.3 million in 2018, a decrease from $116.3 million in 2017[376]. - Interest income increased to approximately $1 million in 2018 from $0.8 million in 2017, primarily due to rising interest rates[368]. - Interest expense increased to $2.4 million in 2018 from $0.5 million in 2017, mainly due to lease obligations[369]. - Net cash provided by financing activities was $2.0 million in 2018, down from $3.0 million in 2017[378]. Expenses - Research and development expenses decreased by $83.5 million, or 88%, to $11.1 million in 2018 from $94.6 million in 2017[366]. - General and administrative expenses decreased by $2.5 million, or 8%, to $27.4 million in 2018 from $29.9 million in 2017[367]. - Stock-based compensation expense for the years ended December 31, 2018, and 2017 was $16.1 million and $13.3 million, respectively[353]. - The company anticipates a decrease in general and administrative expenses in future periods due to reduced headcount and infrastructure[340]. Cash Position - Cash and cash equivalents as of December 31, 2018, were $57 million, including $5.3 million acquired from the merger with Private Aravive[372]. - As of December 31, 2018, the company had cash and cash equivalents of approximately $57.0 million, sufficient to sustain operations for at least the next 12 months[378]. Merger and Acquisition - Following the merger, the company became a clinical-stage biotechnology company focused on developing therapies for advanced solid tumors and hematologic malignancies[336]. - The merger was accounted for as an asset acquisition, with the fair value primarily concentrated in in-process research and development[334]. - The merger with Private Aravive resulted in a significant write-off of in-process research and development of $38.3 million[366]. - Approximately 11,182,025 shares of common stock were outstanding immediately following the merger, with about 5,141,915 shares owned by former Private Aravive stockholders[333]. Future Outlook - Future revenue may be generated from product sales, license fees, milestones, and royalties from strategic collaborations[339]. - The company anticipates needing additional financing to advance its clinical development programs[373]. - The company will need to obtain additional financing to advance its clinical development program and fund operations for the foreseeable future[378]. Compliance and Reporting - The company opted out of the extended transition period under the JOBS Act, committing to comply with new or revised accounting standards as they are adopted[380]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[381]. - The company has not engaged in any off-balance sheet arrangements since its inception[379]. Deficit and Working Capital - As of December 31, 2018, the company had an accumulated deficit of approximately $450.6 million and working capital of $56.1 million[337].
Aravive(ARAV) - 2018 Q4 - Annual Report