Aurinia Pharmaceuticals(AUPH) - 2023 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides a comprehensive overview of the company's unaudited financial statements and management's analysis Item 1. Financial Statements (Unaudited) This section presents unaudited consolidated financial statements, including balance sheets, income, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2023, and December 31, 2022 | Metric | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :------------------------------------ | :--------------------------- | :------------------------------- | | Total Assets | $548,900 | $470,860 | | Total Liabilities | $156,608 | $65,425 | | Total Shareholders' Equity | $392,292 | $405,435 | | Current Assets | $415,907 | $442,539 | | Current Liabilities | $61,661 | $46,107 | | Finance right-of-use asset, net | $117,428 | — | | Finance lease liability (current & non-current) | $93,438 | — | Condensed Consolidated Statements of Operations and Comprehensive Loss This section presents the company's revenues, expenses, and net loss for the three and six months ended June 30, 2023 and 2022 Three Months Ended June 30 | Metric | June 30, 2023 (in thousands) | June 30, 2022 (in thousands) | Change (YoY) | | :--------------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Revenue, net | $41,494 | $28,191 | +$13,303 (+47.2%) | | Loss from operations | $(16,170) | $(35,989) | +$19,819 (Improved) | | Net loss | $(11,492) | $(35,515) | +$24,023 (Improved) | | Basic and diluted loss per share | $(0.08) | $(0.25) | +$0.17 (Improved) | Six Months Ended June 30 | Metric | June 30, 2023 (in thousands) | June 30, 2022 (in thousands) | Change (YoY) | | :--------------------------- | :--------------------------- | :--------------------------- | :----------- | | Total Revenue, net | $75,903 | $49,816 | +$26,087 (+52.4%) | | Loss from operations | $(45,754) | $(73,871) | +$28,117 (Improved) | | Net loss | $(37,698) | $(73,145) | +$35,447 (Improved) | | Basic and diluted loss per share | $(0.26) | $(0.52) | +$0.26 (Improved) | - Interest income increased significantly due to higher yields on investments: * 3 months: $4,101k (2023) vs $483k (2022) * 6 months: $7,915k (2023) vs $745k (2022)[10] Condensed Consolidated Statements of Shareholders' Equity This section outlines changes in shareholders' equity, including common shares and share-based compensation, for the periods ended June 30, 2023 and 2022 | Metric | June 30, 2023 (in thousands) | June 30, 2022 (in thousands) | | :--------------------------- | :--------------------------- | :--------------------------- | | Total Shareholders' Equity | $392,292 | $423,768 | | Common Shares Issued and Outstanding | 143,369 | 141,892 | | Share-based compensation (3 months) | $12,268 | $10,055 | | Share-based compensation (6 months) | $21,735 | $17,078 | Condensed Consolidated Statements of Cash Flows This section details cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 Six Months Ended June 30 | Cash Flow Activity | June 30, 2023 (in thousands) | June 30, 2022 (in thousands) | Change (YoY) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | | Net cash used in operating activities | $(34,496) | $(74,617) | +$40,121 (Improved) | | Net cash provided by (used in) investing activities | $19,252 | $(7,396) | +$26,648 (Shift to provided) | | Cash provided by financing activities | $2,779 | $1,745 | +$1,034 (Increased) | | Net decrease in cash, cash equivalents and restricted cash | $(12,465) | $(80,268) | +$67,803 (Reduced decrease) | | Cash, cash equivalents and restricted cash, end of period | $81,707 | $151,632 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Organization and Description of Business This note describes Aurinia Pharmaceuticals Inc.'s core business, product offerings, and strategic collaborations - Aurinia Pharmaceuticals Inc. is a fully integrated biopharmaceutical company focused on autoimmune, kidney, and rare diseases[22] - LUPKYNIS (voclosporin) was introduced in January 2021 as the first U.S. FDA-approved oral therapy for adult patients with active lupus nephritis (LN)[22] - The company collaborates with Otsuka Pharmaceutical Co., Ltd. for LUPKYNIS development and commercialization in the EU, Japan, UK, and other territories[22] - AUR200 and AUR300 are in pre-clinical development, with Investigational New Drug Applications (INDs) projected for submission in 2023 and 2024, respectively[22] - The European Commission granted marketing authorization for LUPKYNIS on September 15, 2022[23] 2. Summary of Significant Accounting Policies This note outlines the key accounting principles and policies applied in preparing the condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information[24] - The company's functional currency is U.S. dollars[27] - As of June 30, 2023, the company had $350.7 million in cash, cash equivalents, restricted cash, and investments, believing it has sufficient resources to fund operations for at least the next few years[28] - Revenues from the two main U.S. customers accounted for approximately 98% of total revenues for the three and six months ended June 30, 2023[29] - Product revenues are recognized when the customer obtains control of the product, typically upon delivery[32] Accounts Receivable, Net | Date | Amount (in thousands) | | :---------------- | :-------------------- | | June 30, 2023 | $19,500 | | December 31, 2022 | $13,500 | - The company adopted ASU No. 2021-10 (Government Assistance) effective January 1, 2022, with no material impact on the financial statements[38] [3. Fair Value Measurements](index=11&type=