Precigen(US:PGEN)2022-11-09 21:19Financial Performance - Total revenues for the three months ended September 30, 2022, were $16,722,000, a significant increase from $3,333,000 in the same period of 2021, representing a growth of 402%[24] - The company reported a net income of $87,379,000 for the three months ended September 30, 2022, compared to a net loss of $29,764,000 in the same period of 2021[27] - For the nine months ended September 30, 2022, the company reported a net income of $50,493, compared to a net loss of $67,132 for the same period in 2021[36] - The company reported a comprehensive income of $84,754,000 for the three months ended September 30, 2022, compared to a comprehensive loss of $30,790,000 in the same period of 2021[27] - Total consolidated revenues for the nine months ended September 30, 2022, were $25,146 million, a significant increase from $10,583 million in the same period of 2021, representing a growth of approximately 138.5%[157] - Operating loss decreased to $7.6 million for the three months ended September 30, 2022, from a loss of $21.5 million in the same period in 2021, reflecting an improvement of $13.9 million, or 64.6%[215] - Loss from continuing operations decreased to $7.6 million for the three months ended September 30, 2022, compared to a loss of $26.3 million in the same period in 2021, an improvement of $18.7 million, or 71.0%[215] Assets and Liabilities - Total current assets increased to $162,806,000 as of September 30, 2022, compared to $156,628,000 as of December 31, 2021[18] - The company's total liabilities decreased to $116,713,000 as of September 30, 2022, from $252,508,000 as of December 31, 2021, indicating a reduction of approximately 54%[21] - The company’s total assets were $259,245,000 as of September 30, 2022, down from $359,856,000 as of December 31, 2021[18] - The accumulated deficit as of September 30, 2022, was $1,846,391,000, a decrease from $1,915,556,000 as of December 31, 2021[21] - Long-term debt decreased to $82,069 as of September 30, 2022, from $179,934 as of December 31, 2021, reflecting a reduction of approximately 54.4%[105] Cash Flow and Investments - Cash and cash equivalents decreased to $9,067,000 as of September 30, 2022, down from $36,423,000 as of December 31, 2021[18] - Cash used in operating activities for the nine months ended September 30, 2022, was $49,649, compared to $41,182 for the same period in 2021[36] - The company generated $214,996 in net cash from investing activities for the nine months ended September 30, 2022, compared to a net cash used of $90,469 in 2021[39] - The company had $153,770 in cash, cash equivalents, short-term investments, and restricted cash as of September 30, 2022[48] Research and Development - Research and development expenses for the nine months ended September 30, 2022, were $36,377,000, slightly up from $35,755,000 in the same period of 2021[24] - Research and development expenses for the Biopharmaceuticals segment were $12.536 million for Q3 2022, compared to $12.355 million in Q3 2021, reflecting ongoing investment in proprietary programs[205] - Total consolidated research and development expenses for the nine months ended September 30, 2022, were $36.377 million, slightly up from $35.755 million in the same period of 2021[205] Operational Changes and Future Outlook - The company expects to continue incurring operating losses and negative cash flows from operations for the foreseeable future, requiring additional capital to fund its operations[48] - As of September 30, 2022, the company had no committed source of additional funding from either debt or equity financings[48] - The company has shifted focus to healthcare, resulting in the termination of several collaboration agreements and a decrease in collaboration revenues expected in the near term[200] - The company anticipates continued significant losses in the foreseeable future, with no assurance of achieving profitability[195] Segment Performance - Revenues from external customers in the Biopharmaceuticals segment for the three months ended September 30, 2022, were $14,624 million, a significant increase from $129 million in the same period of 2021[154] - The total segment revenues for the Exemplar segment for the three months ended September 30, 2022, were $2,098 million, compared to $3,204 million in the same period of 2021[154] - Precigen's Exemplar segment generated positive Segment Adjusted EBITDA in the nine months ended September 30, 2022, indicating operational profitability[195] Divestitures and Acquisitions - The company completed the sale of its subsidiary Trans Ova Genetics on August 18, 2022, which was previously a separate reportable segment[45] - The Company completed the sale of its subsidiary Trans Ova for $170 million, with an additional potential earn-out of up to $10 million based on performance in 2022 and 2023[65] - The Company recognized a gain on the divestiture of Trans Ova amounting to $94.7 million for the nine months ended September 30, 2022[69] COVID-19 Impact - The Company is closely monitoring the impact of COVID-19, which has caused uncertainty regarding its clinical and preclinical pipeline candidates[52] - The impact of COVID-19 on the company's operations remains uncertain, with potential delays in clinical and preclinical pipeline candidates[184] Stock and Financing - The company entered into a Controlled Equity Offering Sales Agreement to issue and sell up to $100,000 of its common stock, with no shares sold during the three months ended September 30, 2022[125][126] - The company has convertible notes with a face value of $82,440 due on July 1, 2023, raising substantial doubt about its ability to continue as a going concern[48] - The company successfully retired $117,560 of principal balance from the convertible notes during the three months ended September 30, 2022, recording a gain on extinguishment of debt of approximately $853[113] Other Financial Metrics - The effective interest rate on the convertible notes was 4.25% as of September 30, 2022[115] - The total interest expense for the nine months ended September 30, 2022, was $6,131 million, down from $13,891 million in the same period of 2021, indicating a significant reduction[116] - The company had U.S. taxable income of approximately $44,300 for the three months ended September 30, 2022, compared to a taxable loss of approximately $24,700 for the same period in 2021[118]