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SEC Filings

10-Q
APTEVO THERAPEUTICS INC. filed this Form 10-Q on 11/13/2017
Entire Document
 

 

Restricted Stock Units

The following is a summary of RSU activity for the nine months ended September 30, 2017:

 

 

 

Number of

Units

 

 

Weighted

Average Fair

Value per Unit

 

 

Aggregate

Fair Value

 

Balance at December 31, 2016

 

 

3,034,195

 

 

$

2.88

 

 

$

 

Granted

 

 

19,803

 

 

 

2.00

 

 

 

 

Vested

 

 

(1,555,217

)

 

 

2.84

 

 

 

 

Forfeited

 

 

(243,271

)

 

 

2.94

 

 

 

 

Outstanding at September 30, 2017

 

 

1,255,510

 

 

$

2.91

 

 

$

2,875,118

 

Expected to Vest

 

 

1,181,266

 

 

$

2.91

 

 

$

2,705,100

 

 

As of September 30, 2017, we had $1.5 million of unrecognized compensation expense related to RSUs expected to vest over a period of 0.8 years. The weighted average remaining contractual life of unvested RSUs is 2.5 years.

The fair value of each RSU has been determined to be the closing trading price of the Company’s common shares on the date of grant as quoted in NASDAQ Global Market.

Note 10. Restatement

Restatement Background

Our December 31, 2015 financial statements include $41.8 million of intangible assets which resulted from the acquisition of in process research and development (IPR&D) programs related to TRU-016, a novel CD37-directed therapy for B-cell malignancies, such as chronic lymphocytic leukemia and non-Hodgkin’s lymphoma. This amount was deemed to be an indefinite-lived asset, to remain as an indefinite-lived asset on the balance sheet until completion or abandonment of the associated research and development efforts. Following the spin-off of the Company in August 2016, the Company conducted an internal review of all deferred tax assets and liabilities acquired and it was determined that a deferred tax liability should have been recorded associated with the difference between the book basis and the tax basis of the asset as a part of the acquisition in 2010. The error has no effect on the net assets distributed in the spin-off.

Impact of Restatement

The Company has restated its statements of operations for the quarterly and nine month periods ended September 30, 2016. The restatement resulted in the recognition of a $15.3 million benefit from income taxes equal to the amount of the deferred tax liability recorded associated with the TRU-016 IPR&D asset when the $41.8 million was impaired. The restatement also resulted in an increase in the impairment expense recognized in the third quarter of 2016 due to the impairment of all goodwill, by the amount that goodwill would have been increased. These two restated captions on the statements of operations have the effect of offsetting each other, resulting in no impact to net loss for the quarter and nine months ended September 30, 2016. The restatement adjustment did not impact the consolidated statement of operations for any periods prior to the third quarter of 2016.

 

The impact of the restatement on the Company’s consolidated statements of operations, including the impact of discontinued operations, is reflected and quantified for interim periods affected, as applicable, in the below tables.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

September 30,

2016

(As previously

reported)

 

 

Restatement

Adjustment

 

 

September 30,

2016

(Restated)

 

 

September 30,

2016

(As previously

reported)

 

 

Restatement

Adjustment

 

 

September 30,

2016

(Restated)

 

Impairment expense

 

$

55,702

 

 

$

15,311

 

 

$

71,013

 

 

$

55,702

 

 

$

15,311

 

 

$

71,013

 

Loss from operations

 

 

(71,254

)

 

 

(19,271

)

 

 

(90,525

)

 

 

(97,081

)

 

 

(24,825

)

 

 

(121,906

)

Loss before

   income taxes

 

 

(71,747

)

 

 

(19,270

)

 

 

(91,017

)

 

 

(97,498

)

 

 

(24,825

)

 

 

(122,323

)

Benefit from

   income taxes

 

 

6

 

 

 

17,602

 

 

 

17,608

 

 

 

29

 

 

 

18,561

 

 

 

18,590

 

Net loss

 

$

(71,741

)

 

$

(1,668

)

 

$

(73,409

)

 

$

(97,469

)

 

$

(6,264

)

 

$

(103,733

)

 

17



© Aptevo BioTherapeutics, LLC.