Omeros(US:OMER)2023-03-13 20:09Financial Position - As of December 31, 2022, the company had cash, cash equivalents, and short-term investments totaling $194.9 million, a decrease from $100.8 million in cash and cash equivalents in 2021[354] - Total assets increased to $590.97 million in 2022 from $419.27 million in 2021, primarily driven by an increase in receivables and short-term investments[364] - Total current liabilities increased to $136.38 million in 2022 from $51.79 million in 2021, primarily due to the current portion of unsecured convertible senior notes[364] - The company’s total shareholders' equity rose to $85.68 million in 2022 from $23.78 million in 2021, indicating improved financial stability[364] - As of December 31, 2022, the company reported cash, cash equivalents, and short-term investments totaling $194.9 million, with outstanding accounts receivable of $213.2 million[380] - Total receivables, net increased to $213,221,000 in 2022 from $38,155,000 in 2021, primarily due to a $200,000,000 OMIDRIA milestone receivable[420] Income and Loss - The company reported a net loss from continuing operations of $182.03 million for the year ended December 31, 2022, compared to a loss of $191.55 million in 2021[367] - The company recorded a net income of $47.42 million in 2022, compared to a net income of $194.24 million in 2021, largely due to the impact of discontinued operations[367] - The net income for the year ended December 31, 2022, was $47.4 million, which included a milestone payment of $200.0 million received in February 2023[380] - The company incurred a net loss of $138.1 million in 2020, followed by a net income of $194.2 million in 2021, and a net income of $47.4 million in 2022[372] - Net income from discontinued operations for the year ended December 31, 2022, was $229.4 million, which included $200 million in milestone income and $18.6 million in interest on the OMIDRIA contract royalty asset[416] Expenses - Research and development expenses decreased to $112.72 million in 2022 from $118.78 million in 2021, reflecting a focus on cost management[367] - Interest expense increased to $22.70 million in 2022 from $19.67 million in 2021, reflecting higher debt levels[367] - Stock-based compensation expense for 2022 was $14.1 million, compared to $17.6 million in 2021 and $14.9 million in 2020[372] - Advertising costs for the year ended December 31, 2022, were $3.2 million, with $2 million related to discontinued operations of OMIDRIA[406] - Total accrued expenses decreased to $30,551,000 in 2022 from $33,134,000 in 2021[427] Debt and Liabilities - The principal balance of $95.0 million on the 2023 convertible senior notes is due in November 2023[381] - The principal amount of unsecured convertible senior notes outstanding as of December 31, 2022, was $320,030,000, unchanged from 2021[429] - The fair value of outstanding unsecured convertible senior notes was $92,031,000 for the 2023 Notes and $118,141,000 for the 2026 Notes as of December 31, 2022[429] - The company has operating leases with an initial term through November 2027, with total lease liabilities of $26.7 million as of December 31, 2022[454] - The company has commitments totaling $24.2 million in termination fees if contracts are canceled within specific time frames[458] Royalty and Milestone Payments - The OMIDRIA contract royalty asset was valued at $123.43 million as of December 31, 2022, down from $140.25 million in 2021[364] - The royalty rate on U.S. net sales of OMIDRIA was reduced from 50% to 30% following the $200 million milestone payment event in December 2022[387] - The OMIDRIA royalty obligation was recorded at $125 million, with an effective interest rate of 9.4% amortized over the term of the arrangement[389] - The company expects the U.S. base royalty rate to be reduced to 10% upon certain events, including when OMIDRIA is no longer eligible for separate payment[413] - The total future minimum principal payments under the 2023 and 2026 Notes amount to $320.0 million, with $95.0 million due in 2023 and $225.0 million in 2026[448] Tax and Valuation - As of December 31, 2022, the company had federal net operating loss carryforwards of approximately $361.0 million[475] - The company established a 100% valuation allowance for all periods due to uncertainty in generating sufficient taxable income to realize deferred tax assets[477] - The effective tax rate for 2022 and 2021 was (0.0)%[477] - The change in valuation allowance was 28.3% in 2022 and 26.9% in 2021[477] Other Financial Information - The company has a sales agreement to sell shares of common stock up to an aggregate amount of $150.0 million through an "at the market" equity offering facility[382] - The company operates in one segment and uses cash flow as the primary measure to manage its business[383] - The company recognized a $13.4 million loss on early extinguishment of debt related to the repurchase of the 2023 Notes[432] - Total net lease cost for the year ended December 31, 2022, was $8,574,000, a decrease of 17.4% from $10,390,000 in 2021[455] - Cash payments for operating leases in 2022 were $7,072,000, down from $7,483,000 in 2021, reflecting a reduction of 5.5%[455]