10-Q false Q2 0001016169 --12-31 P6Y11M12D P5Y10M17D 0.10 0.10 0.10 0001016169 2021-01-01 2021-06-30 xbrli:shares 0001016169 2021-08-01 iso4217:USD 0001016169 2021-06-30 0001016169 2020-12-31 iso4217:USD xbrli:shares 0001016169 us-gaap:ProductMember 2021-04-01 2021-06-30 0001016169 us-gaap:ProductMember 2020-04-01 2020-06-30 0001016169 us-gaap:ProductMember 2021-01-01 2021-06-30 0001016169 us-gaap:ProductMember 2020-01-01 2020-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2021-04-01 2021-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2020-04-01 2020-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2021-01-01 2021-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2020-01-01 2020-06-30 0001016169 us-gaap:RoyaltyMember 2021-04-01 2021-06-30 0001016169 us-gaap:RoyaltyMember 2020-04-01 2020-06-30 0001016169 us-gaap:RoyaltyMember 2021-01-01 2021-06-30 0001016169 us-gaap:RoyaltyMember 2020-01-01 2020-06-30 0001016169 2021-04-01 2021-06-30 0001016169 2020-04-01 2020-06-30 0001016169 2020-01-01 2020-06-30 0001016169 atrs:CostOfDevelopmentRevenueMember 2021-04-01 2021-06-30 0001016169 atrs:CostOfDevelopmentRevenueMember 2020-04-01 2020-06-30 0001016169 atrs:CostOfDevelopmentRevenueMember 2021-01-01 2021-06-30 0001016169 atrs:CostOfDevelopmentRevenueMember 2020-01-01 2020-06-30 0001016169 us-gaap:CommonStockMember 2021-03-31 0001016169 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001016169 us-gaap:RetainedEarningsMember 2021-03-31 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001016169 2021-03-31 0001016169 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001016169 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001016169 us-gaap:CommonStockMember 2021-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001016169 us-gaap:RetainedEarningsMember 2021-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001016169 us-gaap:CommonStockMember 2020-12-31 0001016169 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001016169 us-gaap:RetainedEarningsMember 2020-12-31 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001016169 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001016169 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0001016169 us-gaap:CommonStockMember 2020-03-31 0001016169 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001016169 us-gaap:RetainedEarningsMember 2020-03-31 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001016169 2020-03-31 0001016169 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001016169 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001016169 us-gaap:CommonStockMember 2020-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001016169 us-gaap:RetainedEarningsMember 2020-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001016169 2020-06-30 0001016169 us-gaap:CommonStockMember 2019-12-31 0001016169 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001016169 us-gaap:RetainedEarningsMember 2019-12-31 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001016169 2019-12-31 0001016169 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001016169 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001016169 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001016169 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0001016169 us-gaap:FairValueInputsLevel1Member 2021-06-30 0001016169 us-gaap:FairValueInputsLevel1Member 2020-12-31 0001016169 atrs:ComputerEquipmentAndSoftwareMember srt:MinimumMember 2021-01-01 2021-06-30 0001016169 atrs:ComputerEquipmentAndSoftwareMember srt:MaximumMember 2021-01-01 2021-06-30 0001016169 atrs:FurnitureFixturesAndOfficeEquipmentMember srt:MinimumMember 2021-01-01 2021-06-30 0001016169 atrs:FurnitureFixturesAndOfficeEquipmentMember srt:MaximumMember 2021-01-01 2021-06-30 0001016169 atrs:ProductionMoldsToolingAndEquipmentMember srt:MinimumMember 2021-01-01 2021-06-30 0001016169 atrs:ProductionMoldsToolingAndEquipmentMember srt:MaximumMember 2021-01-01 2021-06-30 0001016169 us-gaap:LeaseholdImprovementsMember 2021-01-01 2021-06-30 0001016169 srt:MinimumMember 2021-01-01 2021-06-30 0001016169 srt:MaximumMember 2021-01-01 2021-06-30 0001016169 atrs:ProductionMoldsToolingAndEquipmentMember 2021-06-30 0001016169 atrs:ProductionMoldsToolingAndEquipmentMember 2020-12-31 0001016169 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001016169 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001016169 atrs:FurnitureFixturesAndOfficeEquipmentMember 2021-06-30 0001016169 atrs:FurnitureFixturesAndOfficeEquipmentMember 2020-12-31 0001016169 atrs:ComputerEquipmentAndSoftwareMember 2021-06-30 0001016169 atrs:ComputerEquipmentAndSoftwareMember 2020-12-31 0001016169 atrs:ConstructionAndToolingInProcessMember 2021-06-30 0001016169 atrs:ConstructionAndToolingInProcessMember 2020-12-31 0001016169 atrs:HerculesCapitalIncMember srt:MaximumMember atrs:TermLoanMember 2017-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:TermLoanTrancheOneMember 2017-06-30 xbrli:pure 0001016169 us-gaap:PrimeRateMember atrs:HerculesCapitalIncMember atrs:TermLoanMember 2017-06-01 2017-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:TermLoanMember 2017-06-01 2017-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:TermLoanMember 2021-01-01 2021-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:FirstAmendmentMember atrs:TermLoanMember 2019-05-30 0001016169 atrs:HerculesCapitalIncMember atrs:FirstAmendmentMember atrs:TermLoanMember 2019-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:FirstAmendmentMember atrs:TermLoanMember 2021-01-01 2021-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:FirstAmendmentMember atrs:TermLoanTrancheTwoMember 2019-06-01 2019-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:TermLoanTrancheOneMember 2021-01-01 2021-06-30 0001016169 atrs:HerculesCapitalIncMember atrs:TermLoanTrancheTwoMember 2021-01-01 2021-06-30 0001016169 atrs:HerculesCapitalIncMember srt:MinimumMember atrs:TermLoanMember 2021-01-01 2021-06-30 0001016169 atrs:HerculesCapitalIncMember srt:MaximumMember atrs:TermLoanMember 2021-01-01 2021-06-30 0001016169 atrs:TermLoanMember atrs:HerculesCapitalIncMember 2021-06-30 0001016169 atrs:TermLoanMember atrs:HerculesCapitalIncMember 2020-12-31 0001016169 atrs:LoanExtensionMilestoneMember atrs:HerculesCapitalIncMember 2021-01-01 2021-06-30 0001016169 us-gaap:PerformanceSharesMember 2020-12-31 0001016169 us-gaap:RestrictedStockUnitsRSUMember 2020-12-31 0001016169 us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001016169 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001016169 us-gaap:PerformanceSharesMember 2021-06-30 0001016169 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001016169 atrs:EmployeesTaxObligationsMember 2021-01-01 2021-06-30 0001016169 atrs:EmployeesTaxObligationsMember 2020-01-01 2020-06-30 0001016169 srt:DirectorMember 2021-01-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:EmployeeStockOptionMember 2021-04-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:RestrictedStockUnitsRSUMember 2020-04-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:PerformanceSharesMember 2021-04-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:PerformanceSharesMember 2020-04-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:PerformanceSharesMember 2021-01-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember us-gaap:PerformanceSharesMember 2020-01-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember 2021-04-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember 2020-04-01 2020-06-30 0001016169 atrs:LongTermIncentiveProgramMember 2021-01-01 2021-06-30 0001016169 atrs:LongTermIncentiveProgramMember 2020-01-01 2020-06-30 0001016169 atrs:ProprietaryProductMember us-gaap:SalesMember 2021-04-01 2021-06-30 0001016169 atrs:ProprietaryProductMember us-gaap:SalesMember 2020-04-01 2020-06-30 0001016169 atrs:ProprietaryProductMember us-gaap:SalesMember 2021-01-01 2021-06-30 0001016169 atrs:ProprietaryProductMember us-gaap:SalesMember 2020-01-01 2020-06-30 0001016169 atrs:PartneredProductMember us-gaap:SalesMember 2021-04-01 2021-06-30 0001016169 atrs:PartneredProductMember us-gaap:SalesMember 2020-04-01 2020-06-30 0001016169 atrs:PartneredProductMember us-gaap:SalesMember 2021-01-01 2021-06-30 0001016169 atrs:PartneredProductMember us-gaap:SalesMember 2020-01-01 2020-06-30 0001016169 us-gaap:SalesMember 2021-04-01 2021-06-30 0001016169 us-gaap:SalesMember 2020-04-01 2020-06-30 0001016169 us-gaap:SalesMember 2021-01-01 2021-06-30 0001016169 us-gaap:SalesMember 2020-01-01 2020-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2021-04-01 2021-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2020-04-01 2020-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2021-01-01 2021-06-30 0001016169 atrs:LicensingAndDevelopmentRevenueMember 2020-01-01 2020-06-30 0001016169 atrs:RoyaltiesRevenueMember 2021-04-01 2021-06-30 0001016169 atrs:RoyaltiesRevenueMember 2020-04-01 2020-06-30 0001016169 atrs:RoyaltiesRevenueMember 2021-01-01 2021-06-30 0001016169 atrs:RoyaltiesRevenueMember 2020-01-01 2020-06-30 0001016169 country:US 2021-04-01 2021-06-30 0001016169 country:US 2020-04-01 2020-06-30 0001016169 country:US 2021-01-01 2021-06-30 0001016169 country:US 2020-01-01 2020-06-30 0001016169 srt:EuropeMember 2021-04-01 2021-06-30 0001016169 srt:EuropeMember 2020-04-01 2020-06-30 0001016169 srt:EuropeMember 2021-01-01 2021-06-30 0001016169 srt:EuropeMember 2020-01-01 2020-06-30 0001016169 atrs:TevaMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001016169 atrs:TevaMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001016169 atrs:TevaMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001016169 atrs:TevaMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001016169 atrs:McKessonCorporationMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001016169 atrs:McKessonCorporationMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001016169 atrs:McKessonCorporationMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001016169 atrs:McKessonCorporationMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001016169 atrs:AmerisourceBergenCorporationMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001016169 atrs:AmerisourceBergenCorporationMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001016169 atrs:AmerisourceBergenCorporationMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001016169 atrs:AmerisourceBergenCorporationMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001016169 atrs:CardinalHealthMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001016169 atrs:CardinalHealthMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001016169 atrs:CardinalHealthMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001016169 atrs:CardinalHealthMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30 0001016169 atrs:AMAGPharmaceuticalsIncMember srt:MaximumMember us-gaap:CustomerConcentrationRiskMember 2021-04-01 2021-06-30 0001016169 atrs:AMAGPharmaceuticalsIncMember srt:MaximumMember us-gaap:CustomerConcentrationRiskMember 2020-04-01 2020-06-30 0001016169 atrs:AMAGPharmaceuticalsIncMember srt:MaximumMember us-gaap:CustomerConcentrationRiskMember 2021-01-01 2021-06-30 0001016169 atrs:AMAGPharmaceuticalsIncMember us-gaap:CustomerConcentrationRiskMember 2020-01-01 2020-06-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period ________ to ________

Commission File Number 1-32302

 

ANTARES PHARMA, INC.

 

 

A Delaware Corporation

(State or Other Jurisdiction of Incorporation)

 

41-1350192

(I.R.S. Employer Identification No.)

 

100 Princeton South, Suite 300, Ewing, NJ

 

08628

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (609) 359-3020

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

ATRS

 

NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

 

 

 

Non–accelerated filer

 

☐  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

  

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.          

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes      No  

As of August 1, 2021, the registrant had 169,967,638, shares of common stock, $0.01 par value per share, outstanding.

 

 

 


 

 

ANTARES PHARMA, INC.

INDEX

 

 

 

 

 

 

 

PAGE

 

 

 

 

 

 

 

PART I.

 

 

 

FINANCIAL INFORMATION

 

3

 

 

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

3

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 (Unaudited)

 

3

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (Unaudited)

 

4

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2021 and 2020 (Unaudited)

 

5

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020 (Unaudited)

 

6

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (Unaudited)

 

8

 

 

 

 

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

9

 

 

 

 

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

18

 

 

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

26

 

 

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

26

 

 

 

 

 

 

 

PART II.

 

 

 

OTHER INFORMATION

 

27

 

 

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

27

 

 

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

 

27

 

 

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

27

 

 

 

 

 

 

 

 

 

Item 3.

 

Default Upon Senior Securities

 

27

 

 

 

 

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

27

 

 

 

 

 

 

 

 

 

Item 5.

 

Other Information

 

27

 

 

 

 

 

 

 

 

 

Item 6.

 

Exhibits

 

28

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

29

 

 

 

2


 

 

PART I – FINANCIAL INFORMATION

Item 1.

FINANCIAL STATEMENTS

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(UNAUDITED)

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

45,126

 

 

$

53,137

 

Accounts receivable

 

 

54,224

 

 

 

42,221

 

Inventories

 

 

18,644

 

 

 

18,216

 

Contract assets

 

 

5,725

 

 

 

8,140

 

Prepaid expenses and other current assets

 

 

4,244

 

 

 

4,877

 

Total current assets

 

 

127,963

 

 

 

126,591

 

Deferred tax assets, net

 

 

45,249

 

 

 

46,982

 

Property and equipment, net

 

 

25,590

 

 

 

24,020

 

Operating lease right-of-use assets

 

 

4,014

 

 

 

4,621

 

Intangibles, net

 

 

7,280

 

 

 

7,693

 

Other assets

 

 

2,523

 

 

 

2,624

 

Total Assets

 

$

212,619

 

 

$

212,531

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,797

 

 

$

16,194

 

Accrued expenses and other liabilities

 

 

29,655

 

 

 

25,635

 

Long-term debt, current portion

 

 

22,813

 

 

 

16,230

 

Operating lease liabilities, current portion

 

 

1,035

 

 

 

1,203

 

Deferred revenue

 

 

2,675

 

 

 

3,943

 

Total current liabilities

 

 

71,975

 

 

 

63,205

 

Long-term debt

 

 

3,338

 

 

 

24,669

 

Operating lease liabilities, long-term

 

 

4,552

 

 

 

4,816

 

Other long-term liabilities

 

 

726

 

 

 

726

 

Total liabilities

 

 

80,591

 

 

 

93,416

 

Stockholders’ Equity:

 

 

 

 

 

 

 

 

Preferred Stock: $0.01 par; 3,000 shares authorized, none outstanding

 

 

 

 

 

 

Common Stock: $0.01 par; 300,000 shares authorized; 169,584 and

    166,836 issued and outstanding at June 30, 2021 and

   December 31, 2020, respectively

 

 

1,696

 

 

 

1,668

 

Additional paid-in capital

 

 

345,431

 

 

 

340,756

 

Accumulated deficit

 

 

(214,413

)

 

 

(222,626

)

Accumulated other comprehensive loss

 

 

(686

)

 

 

(683

)

 

 

 

132,028

 

 

 

119,115

 

Total Liabilities and Stockholders’ Equity

 

$

212,619

 

 

$

212,531

 

 

See accompanying notes to condensed consolidated financial statements.

3


 

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(UNAUDITED)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales

 

$

27,904

 

 

$

24,665

 

 

$

57,039

 

 

$

51,762

 

Licensing and development revenue

 

 

7,167

 

 

 

2,687

 

 

 

12,151

 

 

 

4,442

 

Royalties

 

 

9,907

 

 

 

5,032

 

 

 

17,871

 

 

 

9,259

 

Total revenue

 

 

44,978

 

 

 

32,384

 

 

 

87,061

 

 

 

65,463

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product sales

 

 

11,630

 

 

 

10,927

 

 

 

24,128

 

 

 

24,941

 

Cost of development revenue

 

 

4,810

 

 

 

1,550

 

 

 

8,757

 

 

 

2,583

 

Research and development

 

 

4,047

 

 

 

2,417

 

 

 

6,687

 

 

 

5,398

 

Selling, general and administrative

 

 

17,704

 

 

 

14,448

 

 

 

35,311

 

 

 

30,870

 

Total operating expenses

 

 

38,191

 

 

 

29,342

 

 

 

74,883

 

 

 

63,792

 

Operating income

 

 

6,787

 

 

 

3,042

 

 

 

12,178

 

 

 

1,671

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,135

)

 

 

(967

)

 

 

(2,097

)

 

 

(2,028

)

Other, net

 

 

(89

)

 

 

100

 

 

 

(135

)

 

 

176

 

Total other expense, net

 

 

(1,224

)

 

 

(867

)

 

 

(2,232

)

 

 

(1,852

)

Net income (loss) before income taxes

 

 

5,563

 

 

 

2,175

 

 

 

9,946

 

 

 

(181

)

Income tax expense

 

 

(1,143

)

 

 

 

 

 

(1,733

)

 

 

 

Net income (loss)

 

$

4,420

 

 

$

2,175

 

 

$

8,213

 

 

$

(181

)

Net income (loss) per common share, basic

 

$

0.03

 

 

$

0.01

 

 

$

0.05

 

 

$

(0.00

)

Net income (loss) per common share, diluted

 

$

0.03

 

 

$

0.01

 

 

$

0.05

 

 

$

(0.00

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

169,043

 

 

 

165,703

 

 

 

168,436

 

 

 

165,566

 

Diluted

 

 

174,813

 

 

 

169,228

 

 

 

174,851

 

 

 

165,566

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

4


 

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(UNAUDITED)

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net income (loss)

 

$

4,420

 

 

$

2,175

 

 

$

8,213

 

 

$

(181

)

Foreign currency translation adjustment

 

 

7

 

 

 

4

 

 

 

(3

)

 

 

6

 

Comprehensive income (loss)

 

$

4,427

 

 

$

2,179

 

 

$

8,210

 

 

$

(175

)

 

See accompanying notes to condensed consolidated financial statements.


5


 

 

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

March 31, 2021

 

 

168,798

 

 

$

1,688

 

 

$

344,063

 

 

$

(218,833

)

 

$

(693

)

 

$

126,225

 

Common stock issued under equity

   compensation plan, net of

   shares withheld for taxes

 

 

525

 

 

 

5

 

 

 

(1,228

)

 

 

 

 

 

 

 

 

 

 

(1,223

)

Exercise of options

 

 

261

 

 

 

3

 

 

 

535

 

 

 

 

 

 

 

 

 

538

 

Share-based compensation

 

 

 

 

 

 

 

 

2,061

 

 

 

 

 

 

 

 

 

2,061

 

Net income

 

 

 

 

 

 

 

 

 

 

 

4,420

 

 

 

 

 

 

4,420

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

7

 

June 30, 2021

 

 

169,584

 

 

$

1,696

 

 

$

345,431

 

 

$

(214,413

)

 

$

(686

)

 

$

132,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

December 31, 2020

 

 

166,836

 

 

$

1,668

 

 

$

340,756

 

 

$

(222,626

)

 

$

(683

)

 

$

119,115

 

Common stock issued under equity

   compensation plan, net of

   shares withheld for taxes

 

 

942

 

 

 

10

 

 

 

(2,851

)

 

 

 

 

 

 

 

 

(2,841

)

Exercise of options

 

 

1,806

 

 

 

18

 

 

 

3,860

 

 

 

 

 

 

 

 

 

3,878

 

Share-based compensation

 

 

 

 

 

 

 

 

3,666

 

 

 

 

 

 

 

 

 

3,666

 

Net income

 

 

 

 

 

 

 

 

 

 

 

8,213

 

 

 

 

 

 

8,213

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

June 30, 2021

 

 

169,584

 

 

$

1,696

 

 

$

345,431

 

 

$

(214,413

)

 

$

(686

)

 

$

132,028

 

 

See accompanying notes to condensed consolidated financial statements.

 

6


 

 

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

March 31, 2020

 

 

165,560

 

 

$

1,656

 

 

$

334,025

 

 

$

(281,183

)

 

$

(700

)

 

$

53,798

 

Common stock issued under equity

   compensation plan, net of

   shares withheld for taxes

 

 

451

 

 

 

4

 

 

 

(757

)

 

 

 

 

 

 

 

 

(753

)

Exercise of options

 

 

74

 

 

 

1

 

 

 

117

 

 

 

 

 

 

 

 

 

118

 

Share-based compensation

 

 

 

 

 

 

 

 

1,987

 

 

 

 

 

 

 

 

 

1,987

 

Net income

 

 

 

 

 

 

 

 

 

 

 

2,175

 

 

 

 

 

 

2,175

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

June 30, 2020

 

 

166,085

 

 

$

1,661

 

 

$

335,372

 

 

$

(279,008

)

 

$

(696

)

 

$

57,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Deficit

 

 

Other

Comprehensive

Loss

 

 

Total

Stockholders’

Equity

 

December 31, 2019

 

 

165,221

 

 

$

1,652

 

 

$

332,377

 

 

$

(278,827

)

 

$

(702

)

 

 

54,500

 

Common stock issued under equity

   compensation plan, net of

   shares withheld for taxes

 

 

669

 

 

 

7

 

 

 

(1,357

)

 

 

 

 

 

 

 

 

(1,350

)

Exercise of options

 

 

195

 

 

 

2

 

 

 

387

 

 

 

 

 

 

 

 

 

389

 

Share-based compensation

 

 

 

 

 

 

 

 

3,965

 

 

 

 

 

 

 

 

 

3,965

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(181

)

 

 

 

 

 

(181

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

6

 

June 30, 2020

 

 

166,085

 

 

$

1,661

 

 

$

335,372

 

 

$

(279,008

)

 

$

(696

)

 

$

57,329

 

 

See accompanying notes to condensed consolidated financial statements.

 

7


 

 

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

8,213

 

 

 

(181

)

Adjustments to reconcile net income (loss) to cash provided by operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

3,666

 

 

 

3,965

 

Depreciation and amortization

 

 

1,815

 

 

 

1,132

 

Other

 

 

353

 

 

 

519

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(12,007

)

 

 

785

 

Inventories

 

 

(427

)

 

 

(3,605

)

Contract assets

 

 

2,415

 

 

 

1,222

 

Prepaid expenses and other assets

 

 

633

 

 

 

(106

)

Deferred taxes

 

 

1,733

 

 

 

 

Accounts payable

 

 

(960

)

 

 

3,680

 

Accrued expenses and other liabilities

 

 

4,242

 

 

 

1,247

 

Deferred revenue

 

 

(1,265

)

 

 

603

 

Net cash provided by operating activities

 

 

8,411

 

 

 

9,261

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(2,457

)

 

 

(2,444

)

Proceeds from maturities of investment securities

 

 

 

 

 

14,500

 

Net cash provided by (used in) investing activities

 

 

(2,457

)

 

 

12,056

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Principal payments on long-term debt

 

 

(15,000

)

 

 

 

Proceeds from exercise of stock options

 

 

3,878

 

 

 

389

 

Taxes paid related to net share settlement of equity awards

 

 

(2,841

)

 

 

(1,350

)

Net cash used in financing activities

 

 

(13,963

)

 

 

(961

)

Effect of exchange rate changes on cash

 

 

(2

)

 

 

1

 

Net increase (decrease) in cash and cash equivalents

 

 

(8,011

)

 

 

20,357

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Beginning of period

 

 

53,137

 

 

 

23,201

 

End of period

 

$

45,126

 

 

$

43,558

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

1,719

 

 

$

1,810

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment recorded in accounts payable

   and accrued expenses

 

$

2,534

 

 

$

3,334

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

8


ANTARES PHARMA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

1.

Description of Business

Antares Pharma, Inc. (“Antares,” “we,” “our,” “us” or the “Company”) is a specialty pharmaceutical company focused primarily on the development and commercialization of pharmaceutical products and technologies in targeted therapeutic areas. We develop, manufacture and commercialize, for ourselves or with partners, novel therapeutic products using our advanced drug delivery systems that are designed to provide commercial or functional advantages, such as improved safety and efficacy, convenience, improved tolerability, and enhanced patient comfort and adherence. We also seek product opportunities that complement and leverage our commercial platform. We have a portfolio of proprietary and partnered commercial products and ongoing product development programs in various stages of development. We have formed significant strategic alliances and partnership arrangements with industry leading pharmaceutical companies including Teva Pharmaceutical Industries, Ltd. (“Teva”), AMAG Pharmaceuticals, Inc. (“AMAG”), Pfizer Inc. (“Pfizer”) and Idorsia Pharmaceuticals Ltd (“Idorsia”).

Our marketed proprietary products include:

 

XYOSTED® (testosterone enanthate) injection, indicated for testosterone replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone, and is the first and only subcutaneous testosterone enanthate product for once-weekly, at-home self-administration to be approved by the U.S. Food and Drug Administration (“FDA”);

 

OTREXUP® (methotrexate) injection, indicated for adults with severe active rheumatoid arthritis, children with active polyarticular juvenile idiopathic arthritis and adults with severe recalcitrant psoriasis; and

 

NOCDURNA® (desmopressin acetate), marketed in the U.S. for the treatment of nocturia due to nocturnal polyuria (NP) in adults who awaken at least two times per night to urinate.

The Company is also party to various partnered product development and supply arrangements:

 

We developed and are the exclusive supplier of devices for Teva’s Epinephrine Injection USP products, the generic equivalent of EpiPen® and EpiPen® Jr., indicated for emergency treatment of severe allergic reactions including those that are life threatening (anaphylaxis) in adults and certain pediatric patients;

 

Through our commercialization partner Teva, we sell Sumatriptan Injection USP, a generic equivalent to the Imitrex® STATdose Pen®, indicated in the U.S. for the acute treatment of migraine headaches and cluster headache in adults;

 

In collaboration with AMAG, we developed a subcutaneous auto injector and are the exclusive supplier of devices and the final assembled and packaged commercial product of AMAG’s Makena® (hydroxyprogesterone caproate injection) subcutaneous auto injector, which is a ready-to-administer treatment indicated to reduce the risk of preterm birth in women pregnant with one baby and who spontaneously delivered at least one preterm baby in the past; and