*reflects a one-for-seven hundred (1:700) reverse stock split effected on December 24, 2019.
Notes to the Condensed Consolidated Financial Statements
The unaudited interim condensed consolidated financial statements of Delcath Systems, Inc. (“Delcath” or the “Company”) as of and for the three months ended March 31, 2020 and 2019 should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “Annual Report”), which was filed with the Securities Exchange Commission (the “SEC”) on March 25, 2020 and may also be found on the Company’s website (www.delcath.com). In these notes to the condensed consolidated financial statements the terms “us”, “we” or “our” refer to Delcath and its consolidated subsidiaries.
Description of Business
Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our investigational product—Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (“Melphalan/HDS”) —is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In Europe, our system is commercially available under the trade name Delcath Hepatic CHEMOSAT® Delivery System for Melphalan (“CHEMOSAT”), where it has been used at major medical centers to treat a wide range of cancers of the liver.
Our clinical development program (“CDP”) for Melphalan/HDS is comprised of The FOCUS Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma (the “FOCUS Trial”), a global registration clinical trial that is investigating objective response rate in mOM, and the ALIGN Trial, a global Phase 3 clinical trial for ICC (the “ALIGN Trial”). Our CDP also includes a registry for CHEMOSAT commercial cases performed in Europe and sponsorship of select investigator-initiated trials (“IITs”).
The recent outbreak of a novel strain of coronavirus (COVID-19) has had an impact on our ability to monitor data at our clinical trial sites and is likely to cause a decline in product revenue for the forseeable future as many hospitals are prioritizing the treatment of patients diagnosed with COVID-19. This situation is rapidly changing and additional impacts to the business may arise that we are not aware of currently. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity or capital resources cannot be reasonably estimated at this time.
Liquidity
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We anticipate incurring losses until such time, if ever, that it can generate significant sales. As discussed in Note 13, in May 2020 we consummated an underwritten public offering resulting in gross proceeds of approximately $22.0 million. We expect that the proceeds of the offering and our existing cash resources will be sufficient to fund our expected operations through the second quarter of 2021. We may need to raise additional capital in the future to support our operations. We expect that any such financing activity will involve the public or private offering of our equity and/or equity-related securities. If we are unable to obtain sufficient capital to fund our operations, we would be required to curtail certain aspects of our operations or consider other means of obtaining additional financing, although there is no guarantee that we would be able to obtain the financing necessary to continue its operations.
Basis of Presentation
These interim condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (GAAP) and with the SEC’s instructions to Form 10-Q and Article 10 of Regulation S-X. They include the accounts of all entities controlled by Delcath and all significant inter-company accounts and transactions have been eliminated in consolidation.
The preparation of interim condensed consolidated financial statements requires management to make assumptions and estimates that impact the amounts reported. These interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the interim periods ended March 31, 2020 and 2019; however, certain information and footnote disclosures normally included in our Annual Report have been condensed or omitted as permitted by GAAP. It is important to note that the Company’s results of operations and cash flows for interim periods are not necessarily indicative of the results of operations and cash flows to be expected for a full fiscal year or any interim period.
7
Significant Accounting Policies
A description of our significant accounting policies has been provided in Note 3 Summary of Significant Accounting Policies to the Consolidated Financial Statements included in the Company’s Annual Report filed for the fiscal year ended December 31, 2019.
Recently Issued Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes. The list of changes is comprehensive, however the changes will not significantly impact the Company due to the full valuation allowance that is recorded against the Company’s deferred tax assets. Early adoption of ASU 2019-12 is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company will adopt ASU 2019-12 in 2021.
Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Restricted Cash on the balance sheets. Restricted cash does not include required minimum balances.
Cash, cash equivalents, and restricted cash balances were as follows:
|
|
March 31,
|
|
|
December 31,
|
|
(in thousands)
|
|
|
2020
|
|
|
|
2019
|
|
Cash and cash equivalents
|
|
$
|
4,540
|
|
|
$
|
10,002
|
|
Letters of credit
|
|
|
131
|
|
|
|
131
|
|
Security for credit cards
|
|
|
50
|
|
|
|
50
|
|
Total cash, cash equivalents and restricted cash shown in
the statements of cash flows
|
|
$
|
4,721
|
|
|
$
|
10,183
|
|
Inventories consist of the following:
|
|
March 31,
|
|
|
December 31,
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
Raw materials
|
|
$
|
448
|
|
|
$
|
375
|
|
Work-in-process
|
|
|
342
|
|
|
|
279
|
|
Total inventories
|
|
$
|
790
|
|
|
$
|
654
|
|
(4)
|
Prepaid Expenses and Other Current Assets
|
Prepaid expenses and other current assets consist of the following:
|
|
March 31,
|
|
|
December 31,
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
Clinical trial expenses
|
|
$
|
1,497
|
|
|
$
|
725
|
|
Insurance premiums
|
|
|
423
|
|
|
|
589
|
|
Professional Service Fees
|
|
|
518
|
|
|
|
—
|
|
Other1
|
|
|
204
|
|
|
|
445
|
|
Total prepaid expenses and other current assets
|
|
$
|
2,642
|
|
|
$
|
1,759
|
|
1 Other consists of various prepaid expenses and other current assets, with no individual item accounting for more than 5% of prepaid expenses and other current assets at March 31, 2020 and December 31, 2019.
8
(5)
|
Property, Plant, and Equipment
|
Property, plant, and equipment consist of the following:
|
|
March 31,
|
|
|
December 31,
|
|
|
Estimated
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
|
Useful Life
|
Buildings and land
|
|
$
|
634
|
|
|
$
|
589
|
|
|
30 years - Buildings
|
Enterprise hardware and software
|
|
|
1,763
|
|
|
|
1,739
|
|
|
3 years
|
Leaseholds
|
|
|
1,787
|
|
|
|
1,695
|
|
|
Lesser of lease term or estimated useful life
|
Equipment
|
|
|
1,032
|
|
|
|
1,025
|
|
|
7 years
|
Furniture
|
|
|
202
|
|
|
|
198
|
|
|
5 years
|
Property, plant and equipment, gross
|
|
|
5,418
|
|
|
|
5,246
|
|
|
|
Accumulated depreciation
|
|
|
(4,551
|
)
|
|
|
(4,511
|
)
|
|
|
Property, plant and equipment, net
|
|
$
|
867
|
|
|
$
|
735
|
|
|
|
Depreciation expense for the three months ended March 31, 2020 was approximately $0.1 million as compared to approximately $0.1 million for the same period in 2019.
Accrued expenses consist of the following:
|
|
March 31,
|
|
|
December 31,
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
Clinical Expenses
|
|
$
|
2,580
|
|
|
$
|
2,497
|
|
Compensation, excluding taxes
|
|
|
3,933
|
|
|
|
3,525
|
|
Professional fees
|
|
|
361
|
|
|
|
263
|
|
Other1
|
|
|
550
|
|
|
|
662
|
|
Total accrued expenses
|
|
$
|
7,424
|
|
|
$
|
6,947
|
|
1 Other consists of various accrued expenses, with no individual item accounting for more than 5% of current liabilities at March 31, 2020 and December 31, 2019.
The Company recognizes right-of-use (“ROU”) assets and lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than twelve months. The Company leases its facilities under non-cancellable operating and financing leases.
The Company evaluates the nature of each lease at the inception of an arrangement to determine whether it is an operating or financing lease and recognizes the ROU asset and lease liabilities based on the present value of future minimum lease payments over the expected lease term. The Company’s leases do not generally contain an implicit interest rate and therefore the Company uses the incremental borrowing rate it would expect to pay to borrow on a similar collateralized basis over a similar term in order to determine the present value of its lease payments.
The following table summarizes the Company’s operating and financing leases as of and for the three months ended March 31, 2020:
9
(in thousands)
|
|
US
|
|
|
Ireland
|
|
|
Total
|
|
Lease Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease cost
|
|
$
|
118
|
|
|
$
|
52
|
|
|
$
|
170
|
|
Financing lease cost
|
|
12
|
|
|
|
—
|
|
|
|
12
|
|
Sublease income
|
|
|
—
|
|
|
|
(43
|
)
|
|
|
(43
|
)
|
Total
|
|
$
|
130
|
|
|
$
|
9
|
|
|
$
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows out from operating leases
|
|
|
(118
|
)
|
|
|
(52
|
)
|
|
|
(170
|
)
|
Operating cash flows in from operating leases
|
|
|
-
|
|
|
|
43
|
|
|
|
43
|
|
Operating cash flows out from financing leases
|
|
|
(11
|
)
|
|
|
—
|
|
|
|
(11
|
)
|
Right-of-use assets exchanged for new operating lease liabilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Weighted average remaining lease term
|
|
|
0.9
|
|
|
|
1.3
|
|
|
|
|
|
Weighted average discount rate - operating leases
|
|
|
8
|
%
|
|
|
8
|
%
|
|
|
|
|
Maturities of the Company’s operating leases, excluding short-term leases, are as follows:
(in thousands)
|
|
US
|
|
|
Ireland
|
|
|
Total
|
|
Year ended December 31, 2020
|
|
$
|
369
|
|
|
$
|
154
|
|
|
$
|
523
|
|
Year ended December 31, 2021
|
|
|
78
|
|
|
|
120
|
|
|
|
198
|
|
Total
|
|
|
447
|
|
|
|
274
|
|
|
|
721
|
|
Less present value discount
|
|
|
(17
|
)
|
|
|
(15
|
)
|
|
|
(32
|
)
|
Operating lease liabilities included in the condensed consolidated balance sheet at March 31, 2020
|
|
$
|
430
|
|
|
$
|
259
|
|
|
$
|
689
|
|
On June 6, 2019, the Company entered into an agreement with two institutional investors, pursuant to which the investors agreed to transfer and surrender to the Company for cancellation of warrants to purchase 5,605 shares of the Company’s common stock (the “Series D Warrants”) and warrants to purchase 0.1 million shares of the Company’s common stock (the “Pre-Funded Series D Warrants”). Under the terms of the Purchase Agreement, the Company agreed to sell and issue to the investors 8% Senior Secured Promissory Notes in an aggregate principal amount of $2.0 million in full payment and satisfaction of the purchase price for the Series D Warrants and Pre-Funded Series D Warrants. This agreement was effective on July 15, 2019, upon the closing of the Company’s Private Placement discussed further in Notes 10 and 11 to the Company’s audited consolidated financial statements contained in its Annual Report for the fiscal year ended December 31, 2019. Following the closing of the Private Placement, the Company entered into an agreement under which the 8% Senior Secured Promissory Notes became convertible into shares of Series E Preferred Stock and Warrants (the “Unit”) at the price of $1,500 per Unit. The principal is recognized in Convertible notes payable, long-term on the Condensed Consolidated Balance Sheet.
The following tables provide a summary of the various notes outstanding at March 31, 2020:
|
|
Conversion
price
|
|
|
Current interest
rate
|
|
|
Principal
|
|
Long term convertible notes payable
|
|
|
|
|
|
|
|
|
|
|
|
|
8.0% July 2019 Notes
|
|
$
|
1,500
|
|
|
|
8
|
%
|
|
$
|
2,000,000
|
|
Preferred Stock
Series E and Series E-1 Preferred Stock
On July 11, 2019, the Company entered into a securities purchase agreement with certain accredited investors pursuant to which Delcath sold to investors an aggregate of 20,000 shares of our Series E convertible preferred stock, par value $0.01 per share, or the Series E Preferred Stock, at a price of $1,000 per share and a warrant, or a 2019 E Warrant, to purchase a number of shares of common stock equal to the number of shares of common stock issuable upon conversion of the Series E Preferred Stock purchased by the investor, or the July 2019 Private Placement. In connection with the July 2019 Private Placement, the Company exchanged $11.8 million of debt, interest and Series D Warrants for 11,500 shares of Series E Preferred Stock and
10
related 2019 Warrants, $0.1 million in accounts payables for 149 shares of Series E Preferred Stock and related 2019 Warrants and issued 923 shares of Series E Preferred Stock and related 2019 Warrants to certain investors in exchange for a waiver of rights under exchange agreements signed in December 2018 and March 2019, or the Debt Exchange.
On August 19, 2019, the Company entered into a securities purchase agreement with certain accredited investors pursuant to which Delcath sold to investors an aggregate of 9,510 shares of Series E-1 convertible preferred stock, par value $0.01 per share, or the Series E-1 Preferred Stock, at a price of $1,000 per share and a warrant, or a 2019 E-1 Warrant, and together with the 2019 E Warrant, the 2019 Warrants, to purchase a number of shares of common stock of the Company equal to the number of shares of common stock issuable upon conversion of the Series E-1 Preferred Stock purchased by the investor, or the August 2019 Private Placement, and, collectively with the July 2019 Private Placement, the Private Placements.
Each share of Series E Preferred Stock and Series E-1 Preferred Stock, or, collectively, the Preferred Stock, is convertible at any time at the option of the holder into the number of shares of common stock determined by dividing the current conversion price. At March 31, 2020, the conversion price was $23.04 and was subsequently adjusted to $10.00 upon the pricing of a $22.0 million offering on May 1, 2020 and discussed further in Note 13. The holders of the Preferred Stock are entitled to receive dividends on shares of Preferred Stock equal (on an “as converted” basis) to and in the same form as dividends paid on shares of the common stock. Any such dividends that are not paid to the holders of the Preferred Stock will increase the stated value. No other dividends will be paid on shares of Preferred Stock.
Each 2019 Warrant had an exercise price equal to $23.04 at March 31, 2020. The exercise price was subsequently adjusted to $10.00 upon the pricing of a $22.0 million offering on May 1, 2020 and discussed further in Note 13. The 2019 Warrants are exercisable until 5:00 p.m. (NYC time) on December 24, 2024.
As of March 31, 2020, there were 41,447 shares of Preferred Stock outstanding and 1.8 million 2019 Warrants outstanding.
Common Stock Issuances
During the three months ended March 31, 2020 the Company issued 2,915 shares of the Company’s common stock pursuant to conversions of Series E and Series E-1 Preferred Stock.
Share-Based Compensation
The Company’s 2019 Equity Incentive Plan (the “Plan”) allows for grants in the form of incentive stock options, nonqualified stock options, stock units, stock awards, stock appreciation rights, and other stock-based awards. All of the Company’s officers, directors, employees, consultants and advisors are eligible to receive grants under the Plan. The maximum number of shares reserved for issuance under the Plan is 2,142. Options to purchase shares of common stock are granted at exercise prices not less than 100% of fair value on the dates of grant. As of March 31, 2020, the Plan had approximately 502 shares available for grant.
The following is a summary of stock option activity under the Plan for the three months ended March 31, 2020:
|
|
Number of Shares
|
|
|
Weighted Average Exercise
Price
|
|
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
|
Aggregate Intrinsic
Value
|
|
Outstanding at December 31, 2019
|
|
|
1,640
|
|
|
$
|
196.70
|
|
|
9.1
|
|
$
|
—
|
|
Granted
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Cancelled/Forfeited
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2020
|
|
|
1,640
|
|
|
$
|
196.70
|
|
|
8.9
|
|
$
|
—
|
|
Exercisable at March 31, 2020
|
|
|
1,640
|
|
|
$
|
196.70
|
|
|
8.9
|
|
$
|
—
|
|
At March 31, 2020, there was no unrecognized compensation expense related to non-vested share-based compensation awards under the plans for employee and board stock option grants. For the three months ended March 31, 2020, the Company recognized share-based compensation expense of approximately $54,000 in the statement of operations, which includes 2,717
11
shares of restricted common stock issued as compensation for certain advisory services. For the same period in 2019, the Company recognized share-based compensation expense of approximately $54,000 in the statement of operations.
|
|
Three months ended March 31,
|
|
(in thousands)
|
|
2020
|
|
|
2019
|
|
Selling, general and administrative
|
|
$
|
49
|
|
|
$
|
43
|
|
Research and development
|
|
|
5
|
|
|
|
11
|
|
Total
|
|
$
|
54
|
|
|
$
|
54
|
|
Warrants
The following is a summary of warrant activity for the three months ended March 31, 2020:
|
|
Warrants
|
|
|
Exercise Price per
Share
|
|
Weighted
Average
Exercise
Price
|
|
|
Weighted Average
Remaining Life
(Years)
|
|
Outstanding at December 31, 2019
|
|
|
1,826,608
|
|
|
$7.00 - $23.04
|
|
$
|
23.04
|
|
|
|
5.0
|
|
Issued
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Expired
|
|
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2020
|
|
|
1,826,599
|
|
|
$7.00 - $23.04
|
|
$
|
23.04
|
|
|
|
4.7
|
|
(10)
|
Fair Value Measurements
|
|
As a result of the expiration of certain provisions in the 2019 Warrants they were reclassified from liability to equity on February 19, 2020.
|
The table below presents the activity within Level 3 of the fair value hierarchy for the three months ended March 31, 2020:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(in thousands)
|
|
Warrant Liability
|
|
Balance at December 31, 2019
|
|
$
|
3,368
|
|
Total change in the liability included in earnings
|
|
|
2,832
|
|
Fair value of warrants reclassified from liability to equity
|
|
|
(6,200
|
)
|
Balance at March 31, 2020
|
|
$
|
—
|
|
The fair value of the outstanding warrants at February 19, 2020, the date the 2019 Warrants were no longer classified as a liability, and December 31, 2019 was determined by using option pricing models with the following assumptions:
|
|
February 19,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Expected life (in years)
|
|
4.3
|
|
|
|
4.6
|
|
Expected volatility
|
|
208.2%
|
|
|
207.5%
|
|
Risk-free interest rates
|
|
1.4%
|
|
|
1.7%
|
|
The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall in accordance with ASC 820.
|
|
Assets and Liabilities Measured at Fair Value on a Recurring Basis
|
|
(in thousands)
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|
|
March 31, 2020
|
|
|
December 31, 2019
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative instrument liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,368
|
|
|
$
|
—
|
|
|
$
|
3,368
|
|
12
For the periods ended March 31, 2020 and December 31, 2019, there were no transfers in or out of Level 1, 2 or 3 inputs.
(11)
|
Net Loss per Common Share
|
Basic net loss per share is determined by dividing net loss by the weighted average shares of common stock outstanding during the period, without consideration of potentially dilutive securities except for those shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. However, in certain periods in which the exercise price of the warrants was less than the last reported sales price of Delcath’s common stock on the final trading day of the period and there is a gain recorded pursuant to the change in fair value of the warrant derivative liability, the impact of gains related to the mark-to-market adjustment of the warrants outstanding at the end of the period is reversed and the treasury stock method is used to determine diluted earnings per share.
The following potentially dilutive securities were excluded from the computation of earnings per share as of March 31, 2020 and 2019 because their effects would be anti-dilutive:
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March 31,
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2020
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2019
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Stock options
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1,640
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1,166,667
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Common stock warrants - equity
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1,826,599
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4,202,909
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Common stock warrants - liabilities
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—
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189,029
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Common stock reserved for conversion of preferred shares
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1,799,093
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—
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Assumed conversion of convertible notes
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63,493
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268,558
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Total
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3,690,825
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5,827,163
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As discussed in Note 14 Income Taxes of the Company’s Annual Report, the Company has a valuation allowance against the full amount of its net deferred tax assets. The Company currently provides a valuation allowance against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company has not recognized any unrecognized tax benefits in its balance sheet.
The Company is subject to income tax in the U.S., as well as various state and international jurisdictions. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations. Additional information regarding the statutes of limitations can be found in Note 14 Income Taxes of the Company’s Annual Report.
On March 27, 2020, President Trump signed into law the $2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748). The CARES Act includes a variety of economic and tax relief measures intended to stimulate the economy, including loans for small businesses, payroll tax credits/deferrals, and corporate income tax relief. Due to the Company’s history of tax loss carryforwards and full valuation allowance, the CARES Act did not have a significant effect to the income tax provision, as the corporate income tax relief was directed towards cash taxpayers.
Public Offering and Nasdaq Uplisting
On May 5, 2020, the Company closed a public offering of 2.2 million shares of common stock (or common stock equivalents) and Series F warrants to purchase up to 2.2 million shares of common stock. Delcath received gross proceeds of approximately $22.0 million from the offering, before deducting the underwriting discount and estimated offering expenses. The securities
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were offered pursuant to a registration statement on Form S-1 (File No. 333-235904) previously filed with the SEC and declared effective on April 30, 2020. In connection with this offering, the Company’s common stock was approved for listing and began trading on the Nasdaq Capital Market on May 1, 2020. As a result of this offering, the Series E and Series E-1 Preferred Stock conversion price was adjusted to $10.00 and the exercise price of the 2019 Warrants was adjusted to $10.00.
Preferred Stock Conversions
From April 1, 2020 through May 14, 2020, the Company issued 0.8 million shares of Common Stock upon the conversion of Series E and Series E-1 Preferred Stock.
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