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Molecular Analysis – Highlights
“The newest generation of clinical trials in immune oncology focus on
novel checkpoint targets, T cells, and NK cells and NantHealth’s liquid
tumor profiling service provides unparalleled data on quantitative
expression of these and other related targets,” said
Software and Services Highlights:
“Our Software as a Service business continued to generate solid year
over year revenue growth,” said
Business and Financial Highlights
The company adopted a new revenue recognition standard on
For the 2018 second quarter, total net revenue as presented was
Net loss from continuing operations, net of tax, as presented was
For the 2018 second quarter, on a non-GAAP basis, adjusted net loss from
continuing operations as presented was
In
Conference Call Information and Forward-Looking Statements
Later today, the company will host a conference call at
Discussion during the conference call may include forward-looking statements regarding topics such as the company’s financial status and performance, regulatory and operational developments, and other comments the company may make about its future plans or prospects in response to questions from participants on the conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures,
including adjusted net loss and adjusted net loss per share, which are
financial measures that are not prepared in conformity with
About
About GPS Cancer®
GPS Cancer® is a unique, comprehensive test available through
About Liquid GPS®
Liquid GPS is a blood-based molecular test that provides oncologists with a powerful tool for noninvasive tumor profiling and quantitative monitoring of treatment response. Liquid GPS looks beyond cfDNA to cfRNA, which allows profiling and trending of actionable biomarkers that cannot be assessed through cfDNA alone. In addition to providing molecular insight into key guidelines-based biomarkers (e.g., EGFR, ALK, ROS1, KRAS), this powerful RNA-based approach enables a variety of capabilities and applications not typically available from a liquid biopsy test. For more information, visit https://www.nanthealth.com/liquid-gps/.
This news release contains certain statements of a forward-looking
nature relating to future events or future business performance. Forward-looking
statements can be identified by the words “expects,” “anticipates,”
“believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and
similar expressions. Forward-looking statements are based on
management’s current plans, estimates, assumptions and projections, and
speak only as of the date they are made. Risks and uncertainties
include, but are not limited to: our ability to successfully integrate a
complex learning system to address a wide range of healthcare issues;
our ability to successfully amass the requisite data to achieve maximum
network effects; appropriately allocating financial and human resources
across a broad array of product and service offerings; raising
additional capital as necessary to fund our operations; achieving
significant commercial market acceptance for our sequencing and
molecular analysis solutions; establish relationships with, key thought
leaders or payers’ key decision makers in order to establish GPS Cancer
as a standard of care for patients with cancer; our ability to grow the
market for our Systems Infrastructure, and applications; successfully
enhancing our Systems Infrastructure and applications to achieve market
acceptance and keep pace with technological developments; customer
concentration; competition; security breaches; bandwidth limitations;
our ability to continue our relationship with
|
||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Dollars in thousands, except share and per share amounts) | ||||||||
2018 |
|
|||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 29,409 | $ | 61,660 | ||||
Accounts receivable, net | 18,968 | 11,491 | ||||||
Inventories | 731 | 839 | ||||||
Deferred implementation costs | 11 | 1,960 | ||||||
Related party receivables, net | 860 | 585 | ||||||
Prepaid expenses and other current assets | 6,225 | 5,358 | ||||||
Total current assets | 56,204 | 81,893 | ||||||
Property, plant, and equipment, net | 24,366 | 18,517 | ||||||
Deferred implementation costs, net of current | 4 | 3,951 | ||||||
|
115,930 | 114,625 | ||||||
Intangible assets, net | 69,278 | 69,424 | ||||||
Investment in related party | 142,203 | 156,863 | ||||||
Related party receivable, net of current | 1,915 | 1,727 | ||||||
Other assets | 1,874 | 2,195 | ||||||
Total assets | $ | 411,774 | $ | 449,195 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,881 | $ | 3,164 | ||||
Accrued and other current liabilities | 11,767 | 18,134 | ||||||
Deferred revenue | 15,218 | 10,057 | ||||||
Related party payables, net | 5,618 | 4,504 | ||||||
Total current liabilities | 37,484 | 35,859 | ||||||
Deferred revenue, net of current | 8,108 | 7,126 | ||||||
Related party liabilities | 14,575 | 11,500 | ||||||
Related party promissory note | 112,666 | 112,666 | ||||||
Related party convertible note, net | 8,156 | 7,947 | ||||||
Convertible notes, net | 77,065 | 74,845 | ||||||
Other liabilities | 5,599 | 5,950 | ||||||
Total liabilities | 263,653 | 255,893 | ||||||
Stockholders' equity | ||||||||
Common stock, |
11 | 10 | ||||||
Additional paid-in capital | 885,887 | 886,669 | ||||||
Accumulated deficit | (737,535 | ) | (693,233 | ) | ||||
Accumulated other comprehensive loss | (242 | ) | (144 | ) | ||||
Total stockholders' equity | 148,121 | 193,302 | ||||||
Total liabilities and stockholders' equity | $ | 411,774 | $ | 449,195 | ||||
|
||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Dollars in thousands, except share and per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Total net revenue | $ | 22,047 | $ | 23,514 | $ | 44,311 | $ | 42,618 | ||||||||
Total cost of revenue | 10,582 | 9,652 | 21,651 | 21,170 | ||||||||||||
Gross Profit | 11,465 | 13,862 | 22,660 | 21,448 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, general and administrative | 18,388 | 19,225 | 39,122 | 36,660 | ||||||||||||
Research and development | 5,889 | 8,376 | 11,040 | 17,302 | ||||||||||||
Amortization of acquisition-related assets | 1,054 | 1,054 | 2,108 | 2,108 | ||||||||||||
Total operating expenses | 25,331 | 28,655 | 52,270 | 56,070 | ||||||||||||
Loss from operations | (13,866 | ) | (14,793 | ) | (29,610 | ) | (34,622 | ) | ||||||||
Interest expense, net | (4,262 | ) | (4,013 | ) | (8,460 | ) | (7,982 | ) | ||||||||
Other income (expense), net | (1,334 | ) | 13 | (1,154 | ) | 248 | ||||||||||
Loss from related party equity method investment, including impairment | (2,945 | ) | (38,885 | ) | (6,206 | ) | (43,411 | ) | ||||||||
Loss from continuing operations before income taxes | (22,407 | ) | (57,678 | ) | (45,430 | ) | (85,767 | ) | ||||||||
(Benefit from) provision for income taxes | (601 | ) | 18 | (1,651 | ) | 55 | ||||||||||
Net loss from continuing operations | (21,806 | ) | (57,696 | ) | (43,779 | ) | (85,822 | ) | ||||||||
Loss from discontinued operations, net of tax | (1,591 | ) | (12,368 | ) | (1,785 | ) | (25,357 | ) | ||||||||
Net loss | $ | (23,397 | ) | $ | (70,064 | ) | $ | (45,564 | ) | $ | (111,179 | ) | ||||
Net loss per share: | ||||||||||||||||
Continuing operations | ||||||||||||||||
Basic and diluted - common stock | $ | (0.20 | ) | $ | (0.48 | ) | $ | (0.40 | ) | $ | (0.71 | ) | ||||
Discontinued operations | ||||||||||||||||
Basic and diluted - common stock | $ | (0.01 | ) | $ | (0.10 | ) | $ | (0.02 | ) | $ | (0.20 | ) | ||||
Total net income (loss) per share | ||||||||||||||||
Basic and diluted - common stock | $ | (0.21 | ) | $ | (0.58 | ) | $ | (0.42 | ) | $ | (0.91 | ) | ||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted - common stock | 109,120,438 | 121,756,108 | 108,851,348 | 121,687,454 | ||||||||||||
|
||||||||||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||
Reconciliation of results under ASC 606 and ASC 605 | ||||||||||||||||||||||||
(Dollars in thousands, except share and per share amounts) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||
As Reported | Adjustments due to ASC 606 | Without new Revenue Standard | As Reported | Adjustments due to ASC 606 | Without new Revenue Standard | |||||||||||||||||||
2018 | 2018 | 2018 | 2018 | |||||||||||||||||||||
Total net revenue | 22,047 | (821 | ) | 21,226 | 44,311 | (1,357 | ) | 42,954 | ||||||||||||||||
Total cost of revenue | 10,582 | (47 | ) | 10,535 | 21,651 | (82 | ) | 21,569 | ||||||||||||||||
Gross Profit | 11,465 | (774 | ) | 10,691 | 22,660 | (1,275 | ) | 21,385 | ||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 18,388 | 11 | 18,399 | 39,122 | 484 | 39,606 | ||||||||||||||||||
Research and development | 5,889 | — | 5,889 | 11,040 | — | 11,040 | ||||||||||||||||||
Amortization of acquisition-related assets | 1,054 | — | 1,054 | 2,108 | — | 2,108 | ||||||||||||||||||
Total operating expenses | 25,331 | 11 | 25,342 | 52,270 | 484 | 52,754 | ||||||||||||||||||
Loss from operations | (13,866 | ) | (785 | ) | (14,651 | ) | (29,610 | ) | (1,759 | ) | (31,369 | ) | ||||||||||||
Interest expense, net | (4,262 | ) | — | (4,262 | ) | (8,460 | ) | — | (8,460 | ) | ||||||||||||||
Other income (expense), net | (1,334 | ) | — | (1,334 | ) | (1,154 | ) | — | (1,154 | ) | ||||||||||||||
Loss from related party equity method investment, including impairment | (2,945 | ) | — | (2,945 | ) | (6,206 | ) | — | (6,206 | ) | ||||||||||||||
Loss from continuing operations before income taxes | (22,407 | ) | (785 | ) | (23,192 | ) | (45,430 | ) | (1,759 | ) | (47,189 | ) | ||||||||||||
(Benefit from) provision for income taxes | (601 | ) | (120 | ) | (721 | ) | (1,651 | ) | (239 | ) | (1,890 | ) | ||||||||||||
Net loss from continuing operations | (21,806 | ) | (665 | ) | (22,471 | ) | (43,779 | ) | (1,520 | ) | (45,299 | ) | ||||||||||||
Loss from discontinued operations, net of tax | (1,591 | ) | — | (1,591 | ) | (1,785 | ) | — | (1,785 | ) | ||||||||||||||
Net loss | $ | (23,397 | ) | (665 | ) | $ | (24,062 | ) | $ | (45,564 | ) | $ | (1,520 | ) | $ | (47,084 | ) | |||||||
Net loss per share: | ||||||||||||||||||||||||
Basic and diluted - common stock | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.22 | ) | $ | (0.42 | ) | $ | (0.01 | ) | $ | (0.43 | ) | ||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||
Basic and diluted - common stock | 109,120,438 | 109,120,438 | 108,851,348 | 108,851,348 | ||||||||||||||||||||
|
||||||||||||
Supplemental Revenue Schedule | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Revenue: | ||||||||||||
Software-as-a-service related | $ | 16,220 | $ | 14,946 | $ | 32,386 | $ | 29,743 | ||||
Software and hardware related | 885 | 3,279 | 2,340 | 3,877 | ||||||||
Maintenance | 2,388 | 3,468 | 4,835 | 5,487 | ||||||||
Total software-related revenue | 19,493 | 21,693 | 39,561 | 39,107 | ||||||||
Sequencing and molecular analysis | 924 | 450 | 1,764 | 960 | ||||||||
Home health care services | 1,630 | 1,371 | 2,986 | 2,551 | ||||||||
Total net revenue | $ | 22,047 | $ | 23,514 | $ | 44,311 | $ | 42,618 | ||||
Cost of Revenue: | ||||||||||||
Software-as-a-service related | $ | 5,741 | $ | 5,195 | $ | 12,342 | $ | 11,428 | ||||
Software and hardware related | 789 | 1,024 | 1,675 | 2,028 | ||||||||
Maintenance | 234 | 129 | 449 | 290 | ||||||||
Amortization of developed technologies | 1,293 | 1,142 | 2,466 | 2,885 | ||||||||
Total software-related cost of revenue | 8,057 | 7,490 | 16,932 | 16,631 | ||||||||
Sequencing and molecular analysis | 1,689 | 1,512 | 3,120 | 3,105 | ||||||||
Home health care services | 836 | 650 | 1,599 | 1,434 | ||||||||
Total cost of revenue | $ | 10,582 | $ | 9,652 | $ | 21,651 | $ | 21,170 | ||||
|
||||||||||||||||
Non-GAAP Net Loss and Non-GAAP Net Loss Per Share | ||||||||||||||||
(Dollars in thousands, except share and per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss from continuing operations | $ | (21,806 | ) | $ | (57,696 | ) | $ | (43,779 | ) | $ | (85,822 | ) | ||||
Adjustments to GAAP net loss: | ||||||||||||||||
Loss from related party equity method investment including impairment loss | 2,945 | 38,885 | 6,206 | 43,411 | ||||||||||||
Stock-based compensation expense from continuing operations | 1,808 | 344 | 4,432 | (314 | ) | |||||||||||
Corporate restructuring from continuing operations | — | 1,392 | — | 1,589 | ||||||||||||
Acquisition related sales incentive | 425 | 671 | 570 | 1,334 | ||||||||||||
Change in fair value of derivatives liability | (1 | ) | (24 | ) | (1 | ) | (239 | ) | ||||||||
Non-cash interest expense related to convertible notes | 1,235 | 1,088 | 2,429 | 2,139 | ||||||||||||
Intangible amortization from continuing operations | 2,347 | 2,196 | 4,574 | 4,993 | ||||||||||||
Securities litigation costs | 749 | — | 823 | — | ||||||||||||
Impairment of equity securities | 1,750 | — | 1,750 | — | ||||||||||||
Tax benefit resulting from certain non-cash tax items | (599 | ) | — | (1,706 | ) | — | ||||||||||
Total adjustments to GAAP net loss from continuing operations | 10,659 | 44,552 | 19,077 | 52,913 | ||||||||||||
Net loss - Non-GAAP from continuing operations | $ | (11,147 | ) | $ | (13,144 | ) | $ | (24,702 | ) | $ | (32,909 | ) | ||||
Weighted average shares outstanding | 109,120,438 | 121,756,108 | 108,851,348 | 121,687,454 | ||||||||||||
Net loss per share from continuing operations - Non-GAAP | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.23 | ) | $ | (0.27 | ) | ||||
Reconciliation of Net Loss per Common Share to Net Loss per Common Share - Non-GAAP (Unaudited): | ||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net loss per common share from continuing operations | $ | (0.20 | ) | $ | (0.48 | ) | $ | (0.40 | ) | $ | (0.71 | ) | ||||
Adjustments to GAAP net loss per common share from continuing operations: | ||||||||||||||||
Loss from related party equity method investment including impairment loss | 0.03 | 0.32 | 0.06 | 0.36 | ||||||||||||
Stock-based compensation expense from continuing operations | 0.02 | — | 0.04 | — | ||||||||||||
Corporate restructuring from continuing operations | — | 0.01 | — | 0.01 | ||||||||||||
Acquisition related sales incentive | — | 0.01 | 0.01 | 0.01 | ||||||||||||
Change in fair value of derivatives liability | — | — | — | — | ||||||||||||
Non-cash interest expense related to convertible notes | 0.01 | 0.01 | 0.02 | 0.02 | ||||||||||||
Intangible amortization from continuing operations | 0.02 | 0.02 | 0.03 | 0.04 | ||||||||||||
Securities litigation costs | 0.01 | — | 0.01 | — | ||||||||||||
Impairment of equity securities | 0.02 | — | 0.02 | — | ||||||||||||
Tax benefit resulting from certain non-cash tax items | (0.01 | ) | — | (0.02 | ) | — | ||||||||||
Total adjustments to GAAP net loss per common share from continuing operations | 0.10 | 0.37 | 0.17 | 0.44 | ||||||||||||
Net loss per common share from continuing operations - Non-GAAP | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.23 | ) | $ | (0.27 | ) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180809005752/en/
Investor Contact:
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rjaffe@rjaffeco.com
424.288.4098
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