UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2021
OR
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☐ |
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)
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Delaware |
95-4284541 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer |
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120 West 45th Street, 17th Floor New York, NY |
10036 |
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(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:
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Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Common stock, par value $0.01 per share |
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SDGR |
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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.
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Large accelerated filer |
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Accelerated filer |
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☐ |
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Non-accelerated filer |
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☒ |
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Smaller reporting company |
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☐ |
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Emerging growth company |
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☒ |
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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 5, 2021, the registrant had 61,340,937 shares of common stock, $0.01 par value per share, and 9,164,193 shares of limited common stock, $0.01 par value per share, outstanding.
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Page |
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PART I. |
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Item 1. |
5 |
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Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020 (Unaudited) |
5 |
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6 |
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7 |
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8 |
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9 |
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
10 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
25 |
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Item 3. |
35 |
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Item 4. |
36 |
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PART II. |
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Item 1. |
37 |
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Item 1A. |
37 |
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Item 2. |
68 |
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Item 3. |
69 |
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Item 4. |
69 |
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Item 5. |
69 |
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Item 6. |
70 |
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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 of management, 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:
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the potential advantages of our physics-based computational platform; |
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our strategic plans to accelerate the growth of our software business; |
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our research and development efforts for our internal drug discovery programs and our computational platform; |
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the initiation, timing, progress, and results of our internal drug discovery programs or the drug discovery programs of our collaborators; |
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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; |
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our plans to leverage the synergies between our businesses; |
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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; |
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our drug discovery collaborations and our estimates or expectations regarding any milestone or other payments we may receive from such collaborations, including pursuant to our collaboration with Bristol-Myers Squibb Company; |
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our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash, cash equivalents, and marketable securities; |
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the potential advantages of our drug discovery programs; |
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the rate and degree of market acceptance of our software solutions; |
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the potential impact of the COVID-19 pandemic on our business, operations, liquidity and prospects; |
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the rate and degree of market acceptance and clinical utility of our products; |
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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; |
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our marketing capabilities and strategy; |
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our intellectual property position; |
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our ability to identify technologies with significant commercial potential that are consistent with our commercial objectives; |
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our expectations related to the use of our cash, cash equivalents, and marketable securities; |
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our expectations related to the key drivers of our performance; |
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the impact of government laws and regulations; |
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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; |
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our ability to maintain and establish collaborations or obtain additional funding; |
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our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel; and |
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our expectations regarding the time during which we will be an emerging growth company under the Jumpstart our Business Startup Act of 2012. |
2
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 “Risk Factor Summary” below and 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
Our business is subject to a number of risks of which you should be aware before making an investment decision. Below we summarize what we believe are the principal risk factors but these risks are not the only ones we face, and you should carefully review and consider the full discussion of our risk factors in the section titled “Risk Factors”, together with the other information in this Quarterly Report.
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We have a history of significant operating losses, and we expect to incur losses over the next several years. |
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If we are unable to increase sales of our software, or if we and our current and future collaborators are unable to successfully develop and commercialize drug products, our revenues may be insufficient for us to achieve or maintain profitability. |
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Our quarterly and annual results may fluctuate significantly, which could adversely impact the value of our common stock. |
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If our existing customers do not renew their licenses, do not buy additional solutions from us, or renew at lower prices, our business and operating results will suffer. |
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A significant portion of our revenues are generated by sales to life sciences industry customers, and factors that adversely affect this industry could also adversely affect our software sales. |
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The markets in which we participate are highly competitive, and if we do not compete effectively, our business and operating results could be adversely affected. |
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We may never realize a return on our investment of resources and cash in our drug discovery collaborations. |
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Although we believe that our computational platform has the potential to identify more promising molecules than traditional methods and to accelerate drug discovery, our focus on using our platform technology to discover and design molecules with therapeutic potential may not result in the discovery and development of commercially viable products for us or our collaborators. |
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We may not be successful in our efforts to identify or discover product candidates and may fail to capitalize on programs, collaborations, or product candidates that may present a greater commercial opportunity or for which there is a greater likelihood of success. |
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As a company, we do not have any experience in clinical development and have not advanced any product candidates into clinical development. |
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A widespread outbreak of an illness or other health issue, such as the COVID-19 pandemic, could negatively affect various aspects of our business and make it more difficult to meet our obligations to our customers, and could result in reduced demand from our customers as well as delays in our drug discovery and development programs. |
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If we fail to comply with our obligations under our existing license agreements with Columbia University, under any of our other intellectual property licenses, or under any future intellectual property licenses, or otherwise experience disruptions to our business relationships with our current or any future licensors, we could lose intellectual property rights that are important to our business. |
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If we are unable to obtain, maintain, enforce, and protect patent protection for our technology and product candidates or if the scope of the patent protection obtained is not sufficiently broad, our competitors could develop and commercialize technology and products similar or identical to ours, and our ability to successfully develop and commercialize our technology and product candidates may be adversely affected. |
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Our future success depends on our ability to retain key executives and to attract, retain, and motivate qualified personnel. |
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We are pursuing multiple business strategies and expect to expand our development and regulatory capabilities, and as a result, we may encounter difficulties in managing our multiple business units and our growth, which could disrupt our operations. |
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Our actual operating results may differ significantly from our guidance. |
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Our executive officers, directors, and principal stockholders, if they choose to act together, have the ability to significantly influence all matters submitted to stockholders for approval. |
4
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except for share and per share amounts)
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Assets |
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March 31, 2021 |
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December 31, 2020 |
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Current assets: |
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Cash and cash equivalents |
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$ |
133,122 |
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$ |
202,296 |
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Restricted cash |
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500 |
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500 |
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Marketable securities |
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515,372 |
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440,395 |
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Accounts receivable, net of allowance for doubtful accounts of $60 and $60 |
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11,270 |
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31,423 |
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Unbilled and other receivables, net for allowance for unbilled receivables of $20 and $0 |
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7,020 |
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3,955 |
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Prepaid expenses |
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7,954 |
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4,409 |
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Total current assets |
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675,238 |
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682,978 |
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Property and equipment, net |
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4,799 |
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5,140 |
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Equity investments |
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52,931 |
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45,664 |
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Right of use assets |
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8,865 |
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10,129 |
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Other assets |
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2,356 |
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|
2,352 |
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Total assets |
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$ |
744,189 |
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$ |
746,263 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
7,220 |
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$ |
8,398 |
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Accrued payroll, taxes, and benefits |
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10,345 |
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12,000 |
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Deferred revenue |
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40,759 |
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45,403 |
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Lease liabilities |
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3,576 |
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4,543 |
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Other accrued liabilities |
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5,721 |
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2,861 |
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Total current liabilities |
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67,621 |
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73,205 |
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Deferred revenue, long-term |
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37,356 |
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41,164 |
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Lease liabilities, long-term |
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6,836 |
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7,221 |
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Other liabilities, long-term |
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600 |
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|
654 |
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Total liabilities |
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|
112,413 |
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|
122,244 |
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Commitments and contingencies (Note 5) |
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Stockholders' equity: |
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Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively |
|
|
— |
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|
|
— |
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Common stock, $0.01 par value. Authorized 500,000,000 shares; 61,300,675 and 60,713,534 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively |
|
|
613 |
|
|
|
607 |
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Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively |
|
|
92 |
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|
|
92 |
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Additional paid-in capital |
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760,574 |
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|
752,558 |
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Accumulated deficit |
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|
(129,588 |
) |
|
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(129,559 |
) |
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Accumulated other comprehensive income |
|
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77 |
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|
317 |
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Total stockholders’ equity of Schrödinger stockholders |
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631,768 |
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|
|
624,015 |
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Noncontrolling interest |
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8 |
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4 |
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Total stockholders’ equity |
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631,776 |
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|
|
624,019 |
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Total liabilities and stockholders’ equity |
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$ |
744,189 |
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|
$ |
746,263 |
|
See accompanying notes to unaudited condensed consolidated financial statements.
5
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except for share and per share amounts)
|
|
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Three Months Ended March 31, |
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2021 |
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2020 |
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Revenues: |
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Software products and services |
|
$ |
26,340 |
|
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$ |
23,812 |
|
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Drug discovery |
|
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5,787 |
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|
|
2,362 |
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Total revenues |
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32,127 |
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|
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26,174 |
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Cost of revenues: |
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|
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Software products and services |
|
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5,906 |
|
|
|
4,001 |
|
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Drug discovery |
|
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10,057 |
|
|
|
6,548 |
|
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Total cost of revenues |
|
|
15,963 |
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|
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10,549 |
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Gross profit |
|
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16,164 |
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|
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15,625 |
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Operating expenses: |
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|
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Research and development |
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21,448 |
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13,700 |
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Sales and marketing |
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5,239 |
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|
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4,789 |
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General and administrative |
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13,389 |
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8,936 |
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Total operating expenses |
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40,076 |
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27,425 |
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Loss from operations |
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(23,912 |
) |
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(11,800 |
) |
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Other (expense) income: |
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|
|
|
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Loss on equity investments |
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(1,781 |
) |
|
|
— |
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Change in fair value |
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24,824 |
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|
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(3,079 |
) |
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Interest income |
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420 |
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|
|
699 |
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Total other income (expense) |
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23,463 |
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|
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(2,380 |
) |
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Loss before income taxes |
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(449 |
) |
|
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(14,180 |
) |
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Income tax expense |
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|
74 |
|
|
|
91 |
|
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Net loss |
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(523 |
) |
|
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(14,271 |
) |
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Net loss attributable to noncontrolling interest |
|
|
(494 |
) |
|
|
(445 |
) |
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Net loss attributable to Schrödinger common and limited common stockholders |
|
$ |
(29 |
) |
|
$ |
(13,826 |
) |
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Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: |
|
$ |
— |
|
|
$ |
(0.34 |
) |
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Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: |
|
|
70,071,625 |
|
|
|
40,666,970 |
|
See accompanying notes to unaudited condensed consolidated financial statements.
6
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Loss (Unaudited)
(in thousands)
|
|
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Three Months Ended March 31, |
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|||||
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|
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2021 |
|
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2020 |
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||
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Net loss attributable to Schrödinger common and limited common stockholders |
|
$ |
(29 |
) |
|
$ |
(13,826 |
) |
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Changes in market value of investments, net of tax: |
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|
|
|
|
|
|
|
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Unrealized loss on marketable securities |
|
|
(240 |
) |
|
|
(458 |
) |
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Comprehensive loss |
|
$ |
(269 |
) |
|
$ |
(14,284 |
) |
See accompanying notes to unaudited condensed consolidated financial statements.
7
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)
(in thousands, except for share amounts)
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|
|
|
|
|
|
|
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Accumulated |
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Series E preferred stock |
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Series D preferred stock |
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Series C preferred stock |
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Series B preferred stock |
|
Series A preferred stock |
|
|
Common stock |
|
Limited common stock |
|
Additional paid-in |
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Accumulated |
|
other comprehensive |
|
Non controlling |
|
Total stockholders’ |
|
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Shares |
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Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
capital |
|
deficit |
|
loss (income) |
|
interest |
|
equity (deficit) |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
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Balance at December 31, 2020 |
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
|
60,713,534 |
|
$ |
607 |
|
|
9,164,193 |
|
$ |
92 |
|
$ |
752,558 |
|
$ |
(129,559 |
) |
$ |
317 |
|
$ |
4 |
|
$ |
624,019 |
|
||||||||||||||||||||||||||||||||
|
Change in unrealized loss on marketable securities |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(240 |
) |
|
— |
|
|
(240 |
) |
||||||||||||||||||||||||||||||||
|
Issuances of common stock upon stock option exercise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
587,141 |
|
|
6 |
|
|
— |
|
|
— |
|
|
3,650 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,656 |
|
||||||||||||||||||||||||||||||||
|
Stock-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,366 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,366 |
|
||||||||||||||||||||||||||||||||
|
Contributions by non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
498 |
|
|
498 |
|
||||||||||||||||||||||||||||||||
|
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(29 |
) |
|
— |
|
|
(494 |
) |
|
(523 |
) |
||||||||||||||||||||||||||||||||
|
Balance at March 31, 2021 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
61,300,675 |
|
|
613 |
|
|
9,164,193 |
|
|
92 |
|
|
760,574 |
|
|
(129,588 |
) |
|
77 |
|
|
8 |
|
|
631,776 |
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
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 |
|
||||||||||||||||||||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
8
SCHRÖDINGER, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(523 |
) |
|
$ |
(14,271 |
) |
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
|
|
|
operating activities: |
|
|
|
|
|
|
|
|
|
Loss on equity investments |
|
|
1,781 |
|
|
|
— |
|
|
Noncash revenue from equity investments |
|
|
(5 |
) |
|
|
(46 |
) |
|
Fair value adjustments |
|
|
(24,824 |
) |
|
|
3,079 |
|
|
Depreciation |
|
|
887 |
|
|
|
877 |
|
|
Stock-based compensation |
|
|
4,366 |
|
|
|
1,775 |
|
|
Noncash research and development expenses |
|
|
498 |
|
|
|
435 |
|
|
Noncash investment accretion |
|
|
1,955 |
|
|
|
83 |
|
|
Loss on disposal of property and equipment |
|
|
19 |
|
|
|
— |
|
|
Decrease (increase) in assets: |
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
20,153 |
|
|
|
2,404 |
|
|
Unbilled and other receivables |
|
|
(3,065 |
) |
|
|
5,154 |
|
|
Reduction in the carrying amount of right of use assets |
|
|
1,264 |
|
|
|
1,299 |
|
|
Prepaid expenses and other assets |
|
|
(3,549 |
) |
|
|
(1,106 |
) |
|
Increase (decrease) in liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(1,230 |
) |
|
|
2,110 |
|
|
Accrued payroll, taxes, and benefits |
|
|
(1,655 |
) |
|
|
(2,289 |
) |
|
Deferred revenue |
|
|
(8,447 |
) |
|
|
(3,378 |
) |
|
Lease liabilities |
|
|
(1,352 |
) |
|
|
(1,266 |
) |
|
Other accrued liabilities |
|
|
2,806 |
|
|
|
(638 |
) |
|
Net cash used in operating activities |
|
|
(10,921 |
) |
|
|
(5,778 |
) |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(513 |
) |
|
|
(843 |
) |
|
Purchases of equity investments |
|
|
— |
|
|
|
(2,869 |
) |
|
Distribution from equity investment |
|
|
40 |
|
|
|
— |
|
|
Proceeds from sale of equity investments |
|
|
15,735 |
|
|
|
— |
|