atrs-20210930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 10-Q

_________________________________

(Mark One)


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

For the quarterly period ended September 30, 2021


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

For the transition period from ________ to ________

Commission File Number 001-32302

_______________________________

ANTARES PHARMA, INC.

(Exact name of Registrant as specified in its charter)

_______________________________


Delaware						41-1350192
(State or other jurisdiction of incorporation or organization)						(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

☒

Emerging growth company

☐

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 ☒

As of November 1, 2021, the registrant had 170,042,479 shares of common stock outstanding at $0.01 par value per share.

ANTARES PHARMA, INC.

Quarterly Report on Form 10-Q

For the Three Months Ended September 30, 2021

TABLE OF CONTENTS




PART I – FINANCIAL INFORMATION
	Item 1.	Financial Statements	2
		Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 (unaudited)	2
		Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (unaudited)	3
		Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020 (u naudited)	4
		Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended S eptember 30, 2021 and 2020 (unaudited)	5
		Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (u naudited)	7
		Notes to Condensed Consolidated Financial Statements (u naudited)	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
	Item 4.	Controls and Procedures	29
PART II – OTHER INFORMATION
	Item 1.	Legal Proceedings	30
	Item 1A.	Risk Factors	30
	Item 6.	Exhibits	31
SIGNATURES			32

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ANTARES PHARMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(UNAUDITED)


	September 30, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	57,365	$	53,137
Accounts receivable, net	54,471		42,221
Inventories, net	16,493		18,216
Contract assets	2,942		8,140
Prepaid expenses and other current assets	2,162		4,877
Total current assets	133,433		126,591
Deferred tax assets, net	43,987		46,982
Property and equipment, net	25,832		24,020
Operating lease right-of-use assets	3,892		4,621
Intangibles, net	7,072		7,693
Other long-term assets	2,523		2,624
Total Assets	$	216,739	$	212,531

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	12,885	$	16,194
Accrued expenses and other liabilities	32,010		25,635
Current maturities of long-term debt, net	2,918		16,230
Operating lease liabilities, current	917		1,203
Deferred revenue	3,804		3,943
Total current liabilities	52,534		63,205
Long-term debt, less current maturities	18,401		24,669
Operating lease liabilities, long-term	4,613		4,816
Other long-term liabilities	363		726
Total liabilities	75,911		93,416

Stockholders’ Equity
Preferred Stock: $0.01 par; 3,000 shares authorized, none outstanding	—		—
Common Stock: $0.01 par; 300,000 shares authorized; 170,042 and 166,836 issued and outstanding at September 30, 2021 and December 31, 2020, respectively	1,700		1,668
Additional paid-in capital	348,834		340,756
Accumulated deficit	(209,020)		(222,626)
Accumulated other comprehensive loss	(686)		(683)
Total stockholders' equity	140,828		119,115

Total liabilities and stockholders’ equity	$	216,739	$	212,531
The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these condensed consolidated financial statements.

ANTARES PHARMA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
Product sales, net	$	33,068	$	28,947	$	90,107	$	80,709
Licensing and development revenue	3,682		4,321		15,833		8,763
Royalties	11,441		6,735		29,312		15,994
Total revenue, net	48,191		40,003		135,252		105,466

Operating expenses
Cost of product sales	14,039		13,615		38,167		38,556
Cost of development revenue	2,390		2,902		11,147		5,485
Research and development	3,923		2,405		10,610		7,803
Selling, general and administrative	19,874		15,231		55,185		46,101
Total operating expenses	40,226		34,153		115,109		97,945

Operating income	7,965		5,850		20,143		7,521
Other income (expense)
Interest expense	(750)		(782)		(2,847)		(2,810)
Other income (expense), net	6		(72)		(129)		104
Total other expense, net	(744)		(854)		(2,976)		(2,706)
Income before income taxes	7,221		4,996		17,167		4,815
Income tax expense	(1,828)		—		(3,561)		—
Net income	$	5,393	$	4,996	$	13,606	$	4,815

Earnings per common share
Basic	$	0.03	$	0.03	$	0.08	$	0.03
Diluted	$	0.03	$	0.03	$	0.08	$	0.03

Weighted average common shares outstanding
Basic	169,953		166,375		168,947		165,838
Diluted	175,128		169,655		174,937		169,759

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these condensed consolidated financial statements.

ANTARES PHARMA, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(UNAUDITED)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	5,393	$	4,996	$	13,606	$	4,815
Foreign currency translation adjustment	—		5		(3)		11
Comprehensive income	$	5,393	$	5,001	$	13,603	$	4,826

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) are an integral part of these condensed consolidated financial statements.

ANTARES PHARMA, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands)

(UNAUDITED)


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance, June 30, 2021	169,584	$	1,696	345,431		$	(214,413)	$	(686)	$	132,028

Exercise of options	458	4		1,221		—		—		1,225
Stock-based compensation	—	—		2,182		—		—		2,182
Net income	—	—		—		5,393		—		5,393
Other comprehensive income	—	—		—		—		—		—
Balance, September 30, 2021	170,042	$	1,700	$	348,834	$	(209,020)	$	(686)	$	140,828

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount
Balance, December 31, 2020	166,836	$	1,668	$	340,756	$	(222,626)	$

SEC Form 10-Q filed by Antares Pharma, Inc.