ADMA Biologics(ADMA) - 2023 Q3 - Quarterly Report

PART I FINANCIAL INFORMATION This section covers financial statements, management's analysis, market risk, and controls Item 1. Financial Statements This section presents the Company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining the financial position, performance, and significant accounting policies for the periods ended September 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets This table presents the company's financial position (assets, liabilities, equity) for Sep 30, 2023, and Dec 31, 2022 Condensed Consolidated Balance Sheets | Metric | Sep 30, 2023 | Dec 31, 2022 | | :----- | :----------- | :----------- | | Total Assets | $348,996,565 | $348,461,881 | | Total Liabilities | $197,559,219 | $196,487,666 | | Total Stockholders' Equity | $151,437,346 | $151,974,215 | Condensed Consolidated Statements of Operations This table details revenues, gross profit, operating income, and net income for Q3 and 9M ended Sep 30, 2023/2022 Condensed Consolidated Statements of Operations | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenues | $67,274,598 | $41,090,137 | $184,311,323 | $104,098,237 | | Gross Profit | $24,652,585 | $9,656,641 | $57,855,578 | $21,088,081 | | Income (Loss) from Operations | $8,685,159 | $(9,316,733) | $7,398,764 | $(33,306,538) | | Net Income (Loss) | $2,565,055 | $(14,899,504) | $(10,594,467) | $(53,672,267) | | Basic EPS | $0.01 | $(0.08) | $(0.05) | $(0.27) | | Diluted EPS | $0.01 | $(0.08) | $(0.05) | $(0.27) | Condensed Consolidated Statements of Changes in Stockholders' Equity This table outlines changes in common shares, paid-in capital, and accumulated deficit impacting equity Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric | Sep 30, 2023 | Dec 31, 2022 | | :----- | :----------- | :----------- | | Common Shares Outstanding | 225,958,084 | 221,816,930 | | Common Stock Amount | $22,596 | $22,182 | | Additional Paid-in Capital | $640,025,888 | $629,968,704 | | Accumulated Deficit | $(488,611,138) | $(478,016,671) | | Total Stockholders' Equity | $151,437,346 | $151,974,215 | - Net income for the three months ended September 30, 2023, was $2,565,055, contributing to the change in accumulated deficit[17] Condensed Consolidated Statements of Cash Flows This table summarizes cash flows from operating, investing, and financing activities for 9M ended Sep 30, 2023/2022 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :----------------- | :-------------------------- | :-------------------------- | | Net cash used in operating activities | $(8,795,952) | $(52,128,942) | | Net cash used in investing activities | $(3,573,786) | $(10,162,650) | | Net cash provided by financing activities | $4,961 | $46,108,494 | | Net decrease in cash and cash equivalents | $(12,364,777) | $(16,183,098) | | Cash and cash equivalents - end of period | $74,156,765 | $34,906,020 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the unaudited consolidated financial statements - The Company's management believes current cash, cash equivalents, projected revenue, and accounts receivable will be sufficient to fund operations through the end of fiscal 2024, anticipating positive cash flow from operations[27] - The Company continues to evaluate strategic alternatives and value-creating opportunities[28] Note 1. ORGANIZATION AND BUSINESS This note describes ADMA Biologics' core business in plasma-derived biologics for immunodeficient patients - ADMA Biologics is a commercial biopharmaceutical company specializing in plasma-derived biologics for immunodeficient patients[24] - The Company markets three FDA-approved products: BIVIGAM, ASCENIV, and Nabi-HB, and also provides contract manufacturing, laboratory services, and sells intermediate by-products and plasma[26] - As of September 30, 2023, working capital was $231.9 million, including $74.2 million in cash and cash equivalents[27] Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines key accounting principles and significant estimates used in financial statement preparation - Financial statements are prepared in conformity with U.S. GAAP for interim information, with all intercompany balances and transactions eliminated[30][31] - Significant estimates include rebates, accounts receivable realizable value, inventory valuation, future liquidity, and fair value of equity awards and warrants[33] - Accounts receivable, net of allowances, was $0.1 million at September 30, 2023, and December 31, 2022[35] Note 3. INVENTORIES This note details the composition and valuation of inventories (raw materials, work-in-process, finished goods) Inventories | Inventory Component | Sep 30, 2023 | Dec 31, 2022 | | :------------------ | :----------- | :----------- | | Raw materials | $49,857,909 | $48,644,527 | | Work-in-process | $58,277,455 | $56,170,853 | | Finished goods | $54,980,741 | $58,464,667 | | Total inventories | $163,116,105 | $163,280,047 | - Inventories are carried at the lower of cost or net realizable value using the first-in, first-out method[39] Note 4. INTANGIBLE ASSETS This note breaks down intangible assets and related amortization expenses Intangible Assets | Intangible Asset | Sep 30, 2023 Net | Dec 31, 2022 Net | | :--------------- | :--------------- | :--------------- | | Trademark and other intangible rights related to Nabi-HB | $390,481 | $829,770 | | Rights to intermediates | $86,421 | $183,645 | | Total Intangible Assets | $476,902 | $1,013,415 | - Amortization expense for intangible assets was $0.2 million for the three months ended September 30, 2023 and 2022, and $0.5 million for the nine months ended September 30, 2023 and 2022[62] Note 5. PROPERTY AND EQUIPMENT This note presents property and equipment, net of depreciation, and associated expenses