UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 March 31, 2020
OR
|
☐ |
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: 001-39206
Schrodinger, Inc.
(Exact Name of Registrant as Specified in its Charter)
|
Delaware |
95-4284541 |
|
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer |
|
|
|
|
120 West 45th Street, 17th Floor New York, NY |
10036 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (212) 295-5800
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 |
|
SDGR |
|
The Nasdaq Stock Market LLC |
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, 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 |
|
☐ |
|
|
|
|
|
|||
|
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 May 8, 2020, the registrant had 50,132,228 shares of common stock, $0.01 par value per share, and 13,164,193 shares of limited common stock, $0.01 par value per share, outstanding.
|
|
|
Page |
|
PART I. |
|
|
|
Item 1. |
4 |
|
|
|
Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 (Unaudited) |
4 |
|
|
5 |
|
|
|
6 |
|
|
|
7 |
|
|
|
8 |
|
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited) |
9 |
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
22 |
|
Item 3. |
32 |
|
|
Item 4. |
32 |
|
|
PART II. |
|
|
|
Item 1. |
33 |
|
|
Item 1A. |
33 |
|
|
Item 2. |
65 |
|
|
Item 3. |
66 |
|
|
Item 4. |
66 |
|
|
Item 5. |
66 |
|
|
Item 6. |
66 |
|
|
68 |
||
1
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q, or this Quarterly Report, contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Quarterly Report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of these words or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
The forward-looking statements in this Quarterly Report include, among other things, statements about:
|
|
• |
the potential advantages of our physics-based computational platform; |
|
|
• |
our strategic plans to accelerate the growth of our software business; |
|
|
• |
our research and development efforts for our internal drug discovery programs and our computational platform; |
|
|
• |
the initiation, timing, progress, and results of our internal drug discovery programs or the drug discovery programs of our collaborators; |
|
|
• |
our plans to discover and develop product candidates and to maximize their commercial potential by advancing such product candidates ourselves or in collaboration with others; |
|
|
• |
our plans to leverage the synergies between our businesses; |
|
|
• |
the timing of, the ability to submit applications for and the ability to obtain and maintain regulatory approvals for any product candidates we or one of our collaborators may develop; |
|
|
• |
our drug discovery collaborations and our estimates or expectations regarding any milestone or other payments we may receive from such collaborations; |
|
|
• |
our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash, cash equivalents, and marketable securities; |
|
|
• |
the potential advantages of our drug discovery programs; |
|
|
• |
the rate and degree of market acceptance of our software solutions; |
|
|
• |
the potential impact of the COVID-19 pandemic on our business, operations, liquidity and prospects; |
|
|
• |
the rate and degree of market acceptance and clinical utility of our products; |
|
|
• |
our estimates regarding the potential market opportunity for our software solutions and any product candidate we or any of our collaborators may in the future develop; |
|
|
• |
our marketing capabilities and strategy; |
|
|
• |
our intellectual property position; |
|
|
• |
our ability to identify technologies with significant commercial potential that are consistent with our commercial objectives; |
|
|
• |
our expectations related to the use of our cash, cash equivalents, and marketable securities; |
|
|
• |
our expectations related to the key drivers of our performance; |
|
|
• |
the impact of government laws and regulations; |
2
|
|
• |
our competitive position and expectations regarding developments and projections relating to our competitors and any competing products, technologies, or therapies that are or become available; |
|
|
• |
our ability to maintain and establish collaborations and obtain additional funding; |
|
|
• |
our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; and |
|
|
• |
our expectations regarding the time during which we will be an emerging growth company under the Jumpstart our Business Startup Act of 2012. |
We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions, and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report, particularly in “Part II, Item 1A. Risk Factors”, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Moreover, we operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures, or investments we may make or enter into.
You should read this Quarterly Report and the documents that we file with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report are made as of the date of this Quarterly Report, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
Unless the context otherwise requires, we use the terms “company,” “we,” “us” and “our” in this Quarterly Report to refer to Schrödinger, Inc. and its consolidated subsidiaries.
3
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except for share and per share amounts)
|
Assets |
|
March 31, 2020 |
|
|
December 31, 2019 |
|
||
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
144,749 |
|
|
$ |
25,986 |
|
|
Restricted cash |
|
|
500 |
|
|
|
500 |
|
|
Marketable securities |
|
|
143,505 |
|
|
|
59,844 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $50 and $50 |
|
|
16,272 |
|
|
|
18,676 |
|
|
Unbilled and other receivables |
|
|
1,908 |
|
|
|
7,062 |
|
|
Prepaid expenses |
|
|
5,881 |
|
|
|
6,468 |
|
|
Total current assets |
|
|
312,815 |
|
|
|
118,536 |
|
|
Property and equipment, net |
|
|
6,488 |
|
|
|
6,268 |
|
|
Equity investments |
|
|
15,156 |
|
|
|
15,366 |
|
|
Right of use assets |
|
|
13,241 |
|
|
|
12,762 |
|
|
Other assets |
|
|
2,172 |
|
|
|
2,338 |
|
|
Total assets |
|
$ |
349,872 |
|
|
$ |
155,270 |
|
|
Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
6,675 |
|
|
$ |
3,524 |
|
|
Accrued payroll, taxes, and benefits |
|
|
4,745 |
|
|
|
7,034 |
|
|
Deferred revenue |
|
|
21,710 |
|
|
|
25,054 |
|
|
Lease liabilities |
|
|
5,851 |
|
|
|
5,584 |
|
|
Other accrued liabilities |
|
|
3,185 |
|
|
|
3,824 |
|
|
Total current liabilities |
|
|
42,166 |
|
|
|
45,020 |
|
|
Deferred revenue, long-term |
|
|
2,125 |
|
|
|
2,205 |
|
|
Lease liabilities, long-term |
|
|
9,133 |
|
|
|
8,888 |
|
|
Other liabilities, long-term |
|
|
900 |
|
|
|
900 |
|
|
Total liabilities |
|
|
54,324 |
|
|
|
57,013 |
|
|
Commitments and contingencies (Note 4) |
|
|
|
|
|
|
|
|
|
Convertible preferred stock: |
|
|
|
|
|
|
|
|
|
Series E convertible preferred stock, $0.01 par value. Authorized zero and 77,150,132 shares; zero and 73,795,777 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
109,270 |
|
|
Series D convertible preferred stock, $0.01 par value. Authorized zero and 39,540,611 shares; zero and 39,540,611 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
22,000 |
|
|
Series C convertible preferred stock, $0.01 par value. Authorized zero and 47,242,235 shares; zero and 47,242,235 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
19,844 |
|
|
Series B convertible preferred stock, $0.01 par value. Authorized zero and 29,468,101 shares; zero and 29,468,101 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
9,840 |
|
|
Series A convertible preferred stock, $0.01 par value. Authorized zero and 134,704,785 shares; zero and 134,704,785 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
— |
|
|
|
30,626 |
|
|
Total convertible preferred stock |
|
|
— |
|
|
|
191,580 |
|
|
Stockholders' equity (deficit): |
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value. Authorized 500,000,000 and 425,000,000 shares; 50,122,938 and 6,121,821 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
501 |
|
|
|
61 |
|
|
Limited common stock, $0.01 par value. Authorized 100,000,000 and 146,199,885 shares; 13,164,193 and zero shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively |
|
|
132 |
|
|
|
— |
|
|
Additional paid-in capital |
|
|
414,248 |
|
|
|
11,655 |
|
|
Accumulated deficit |
|
|
(118,922 |
) |
|
|
(105,096 |
) |
|
Accumulated other comprehensive (loss) income |
|
|
(442 |
) |
|
|
16 |
|
|
Total stockholders’ equity (deficit) of Schrödinger stockholders |
|
|
295,517 |
|
|
|
(93,364 |
) |
|
Noncontrolling interest |
|
|
31 |
|
|
|
41 |
|
|
Total stockholders’ equity (deficit) |
|
|
295,548 |
|
|
|
(93,323 |
) |
|
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) |
|
$ |
349,872 |
|
|
$ |
155,270 |
|
See accompanying notes to unaudited condensed consolidated financial statements.
4
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for share and per share amounts)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Revenues: |
|
|
|
|
|
|
|
|
|
Software products and services |
|
$ |
23,812 |
|
|
$ |
18,605 |
|
|
Drug discovery |
|
|
2,362 |
|
|
|
2,136 |
|
|
Total revenues |
|
|
26,174 |
|
|
|
20,741 |
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
Software products and services |
|
|
4,001 |
|
|
|
3,133 |
|
|
Drug discovery |
|
|
6,548 |
|
|
|
4,604 |
|
|
Total cost of revenues |
|
|
10,549 |
|
|
|
7,737 |
|
|
Gross profit |
|
|
15,625 |
|
|
|
13,004 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
|
13,700 |
|
|
|
8,438 |
|
|
Sales and marketing |
|
|
4,789 |
|
|
|
5,093 |
|
|
General and administrative |
|
|
8,936 |
|
|
|
5,086 |
|
|
Total operating expenses |
|
|
27,425 |
|
|
|
18,617 |
|
|
Loss from operations |
|
|
(11,800 |
) |
|
|
(5,613 |
) |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
Change in fair value |
|
|
(3,079 |
) |
|
|
(627 |
) |
|
Interest income |
|
|
699 |
|
|
|
438 |
|
|
Total other expense |
|
|
(2,380 |
) |
|
|
(189 |
) |
|
Loss before income taxes |
|
|
(14,180 |
) |
|
|
(5,802 |
) |
|
Income tax expense |
|
|
91 |
|
|
|
46 |
|
|
Net loss |
|
|
(14,271 |
) |
|
|
(5,848 |
) |
|
Net loss attributable to noncontrolling interest |
|
|
(445 |
) |
|
|
(54 |
) |
|
Net loss attributable to Schrödinger common and limited common stockholders |
|
$ |
(13,826 |
) |
|
$ |
(5,794 |
) |
|
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: |
|
$ |
(0.34 |
) |
|
$ |
(0.98 |
) |
|
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: |
|
|
40,666,970 |
|
|
|
5,938,260 |
|
See accompanying notes to unaudited condensed consolidated financial statements.
5
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)
(in thousands)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Net loss |
|
$ |
(13,826 |
) |
|
$ |
(5,794 |
) |
|
Changes in market value of investments, net of tax: |
|
|
|
|
|
|
|
|
|
Unrealized (loss) gain on marketable securities |
|
|
(458 |
) |
|
|
10 |
|
|
Comprehensive loss |
|
$ |
(14,284 |
) |
|
$ |
(5,784 |
) |
See accompanying notes to unaudited condensed consolidated financial statements.
6
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)
(in thousands, except for share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
|
Series E preferred stock |
|
Series D preferred stock |
|
Series C preferred stock |
|
Series B preferred stock |
|
Series A preferred stock |
|
|
Common stock |
|
Limited common stock |
|
Additional paid-in |
|
Accumulated |
|
other comprehensive |
|
Non controlling |
|
Total stockholders’ |
|
||||||||||||||||||||||||||||||||||
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
capital |
|
deficit |
|
loss (income) |
|
interest |
|
equity (deficit) |
|
||||||||||||||||||||
|
Balance at December 31, 2019 |
|
73,795,777 |
|
$ |
109,270 |
|
|
39,540,611 |
|
$ |
22,000 |
|
|
47,242,235 |
|
$ |
19,844 |
|
|
29,468,101 |
|
$ |
9,840 |
|
|
134,704,785 |
|
$ |
30,626 |
|
|
|
6,121,821 |
|
$ |
61 |
|
|
— |
|
$ |
— |
|
$ |
11,655 |
|
$ |
(105,096 |
) |
$ |
16 |
|
$ |
41 |
|
$ |
(93,323 |
) |
|
|
Change in unrealized loss on marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(458 |
) |
|
— |
|
|
(458 |
) |
|
|
Issuances of common stock upon stock option exercise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
57,581 |
|
|
1 |
|
|
— |
|
|
— |
|
|
176 |
|
|
— |
|
|
— |
|
|
— |
|
|
177 |
|
|
|
Stock-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,775 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,775 |
|
|
|
Issuances of common stock upon initial public offering, net of issuance costs of $22,667 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
13,664,704 |
|
|
136 |
|
|
— |
|
|
— |
|
|
209,497 |
|
|
— |
|
|
— |
|
|
— |
|
|
209,633 |
|
|
|
Conversion of convertible preferred stock into common stock |
|
(73,795,777 |
) |
|
(109,270 |
) |
|
(17,844,124 |
) |
|
(9,928 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(134,704,785 |
) |
|
(30,626 |
) |
|
|
30,278,832 |
|
|
303 |
|
|
— |
|
|
— |
|
|
149,521 |
|
|
— |
|
|
— |
|
|
— |
|
|
149,824 |
|
|
|
Exchange of convertible preferred stock into limited common stock |
|
— |
|
|
— |
|
|
(21,696,487 |
) |
|
(12,072 |
) |
|
(47,242,235 |
) |
|
(19,844 |
) |
|
(29,468,101 |
) |
|
(9,840 |
) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
13,164,193 |
|
|
132 |
|
|
41,624 |
|
|
— |
|
|
— |
|
|
— |
|
|
41,756 |
|
|
|
Contributions by non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
435 |
|
|
435 |
|
|
|
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(13,826 |
) |
|
— |
|
|
(445 |
) |
|
(14,271 |
) |
|
|
Balance at March 31, 2020 |
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
|
50,122,938 |
|
$ |
501 |
|
|
13,164,193 |
|
$ |
132 |
|
$ |
414,248 |
|
$ |
(118,922 |
) |
$ |
(442 |
) |
$ |
31 |
|
$ |
295,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2018 |
|
53,669,659 |
|
$ |
79,377 |
|
|
39,540,611 |
|
$ |
22,000 |
|
|
47,242,235 |
|
$ |
19,844 |
|
|
29,468,101 |
|
$ |
9,840 |
|
|
134,704,785 |
|
$ |
30,626 |
|
|
|
5,906,976 |
|
$ |
59 |
|
|
— |
|
$ |
— |
|
$ |
8,915 |
|
$ |
(80,525 |
) |
$ |
(9 |
) |
$ |
— |
|
$ |
(71,560 |
) |
|
|
Change in unrealized loss on marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
10 |
|
|
|
Issuances of Series E preferred stock, net of issuance costs of $49 |
|
3,354,353 |
|
|
4,951 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Issuances of common stock upon stock option exercise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
44,160 |
|
|
1 |
|
|
— |
|
|
— |
|
|
114 |
|
|
— |
|
|
— |
|
|
— |
|
|
115 |
|
|
|
Stock-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
520 |
|
|
— |
|
|
— |
|
|
— |
|
|
520 |
|
|
|
Contributions by non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100 |
|
|
100 |
|
|
|
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,794 |
) |
|
— |
|
|
(54 |
) |
|
(5,848 |
) |
|
|
Balance at March 31, 2019 |
|
57,024,012 |
|
$ |
84,328 |
|
|
39,540,611 |
|
$ |
22,000 |
|
|
47,242,235 |
|
$ |
19,844 |
|
|
29,468,101 |
|
$ |
9,840 |
|
|
134,704,785 |
|
$ |
30,626 |
|
|
|
5,951,136 |
|
$ |
60 |
|
|
— |
|
$ |
— |
|
$ |
9,549 |
|
$ |
(86,319 |
) |
$ |
1 |
|
$ |
46 |
|
$ |
(76,663 |
) |
|
See accompanying notes to unaudited condensed consolidated financial statements.
7
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(14,271 |
) |
|
$ |
(5,848 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
|
|
|
operating activities: |
|
|
|
|
|
|
|
|
|
Noncash revenue from equity investments |
|
|
(46 |
) |
|
|
(46 |
) |
|
Fair value adjustments |
|
|
3,079 |
|
|
|
627 |
|
|
Depreciation |
|
|
877 |
|
|
|
877 |
|
|
Stock-based compensation |
|
|
1,775 |
|
|
|
520 |
|
|
Noncash research and development expenses |
|
|
435 |
|
|
|
— |
|
|
Noncash investment accretion |
|
|
83 |
|
|
|
(1 |
) |
|
Decrease (increase) in assets: |
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
2,404 |
|
|
|
1,065 |
|
|
Unbilled and other receivables |
|
|
5,154 |
|
|
|
973 |
|
|
Reduction in the carrying amount of right of use assets |
|
|
1,299 |
|
|
|
1,311 |
|
|
Prepaid expenses and other assets |
|
|
(1,106 |
) |
|
|
87 |
|
|
Increase (decrease) in liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
2,110 |
|
|
|
1,028 |
|
|
Accrued payroll, taxes, and benefits |
|
|
(2,289 |
) |
|
|
(685 |
) |
|
Deferred revenue |
|
|
(3,378 |
) |
|
|
(2,714 |
) |
|
Lease liabilities |
|
|
(1,266 |
) |
|
|
(1,469 |
) |
|
Other accrued liabilities |
|
|
(638 |
) |
|
|
(348 |
) |
|
Net cash used in operating activities |
|
|
(5,778 |
) |
|
|
(4,623 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(843 |
) |
|
|
(1,065 |
) |
|
Purchases of equity investments |
|
|
(2,869 |
) |
|
|
— |
|
|
Purchases of marketable securities |
|
|
(127,109 |
) |
|
|
(21,337 |
) |
|
Proceeds from sale and maturity of marketable securities |
|
|
42,908 |
|
|
|
6,325 |
|
|
Net cash used in investing activities |
|
|
(87,913 |
) |
|
|
(16,077 |
) |
|
Cash flows from financing activities: |
|
|
|
|||||