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SEC Filings

APTEVO THERAPEUTICS INC. filed this Form 10-Q on 11/13/2017
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Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.





Item 1. Legal Proceedings.

We may from time to time be named as a party to legal claims, actions and complaints, including matters involving employment claims, our intellectual property or other third-party claims. Our management believes that there are currently no claims or actions pending against us, the ultimate disposition of which could have a material adverse effect on our results of operations, financial condition or cash flows.

Item 1A. Risk Factors.

You should carefully consider the following risks and other information in this quarterly report on Form 10-Q in evaluating us and our common stock. Any of the following risks could materially and adversely affect Aptevo’s results of operations, financial condition or financial prospects.


Financial Risks

We have a history of losses and may not be profitable in the future.

Our historical consolidated financial data prior to August 1, 2016 was prepared on a “carve-out” basis from the financial information of Emergent and shows that had we been a standalone company, we would have had a history of losses, and we may be unable to achieve profitability going forward.

Although for the three and nine months ended September 30, 2017, we had net income of $37.9 million and $16.7 million, respectively this net income was the result of our receipt of proceeds from the sale of the Hyperimmune Business in September 2017. We have experienced net losses in all other periods since our spinout from Emergent and as of September 30, 2017, we had an accumulated deficit of $64.0 million as of September 30, 2017. If we cannot achieve profitability or generate positive cash from operating activities, our business operations may be adversely impacted and the trading value of our common stock may decline.

We will require additional capital and may be unable to raise capital when needed or on acceptable terms.

As of September 30, 2017, we had cash, cash equivalents and investments in the amount of $96.8 million. We will require additional funding to grow our business including to develop additional products, support commercial marketing activities or otherwise provide additional financial flexibility. Our future capital requirements will depend on many factors, including:


the level, timing and cost of product sales;


the collection of accounts receivable from customers;


the extent to which we invest in products or technologies;


the ability to satisfy the payment obligations and covenants under such credit facility;


the ability to secure partnerships and/or collaborations that generate additional cash;


capital improvements to new or existing facilities;


the payment obligations under our current or any future indebtedness;


the scope, progress, results and costs of our development activities;


the costs of commercialization activities, including product marketing, sales and distribution;


the ongoing costs associated with the separation from Emergent and performance under agreements with Emergent;


© Aptevo BioTherapeutics, LLC.