Annual report pursuant to Section 13 and 15(d)

Spin-off of OmniAb (Tables)

v3.22.4
Spin-off of OmniAb (Tables)
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of transfers of assets and liabilities to OmniAb
The transfer of assets and liabilities to OmniAb was effected through a contribution in accordance with the Merger Agreement, as summarized below (in thousands):
As of November 1, 2022
ASSETS
Current assets:
Cash and cash equivalents
$ 1,842 
Other current assets 9,019 
Total current assets 10,861 
Intangible assets, net 165,422 
Goodwill 75,533 
Property and equipment, net 19,921 
Operating lease assets 21,290 
Other assets 1,449 
Total assets $ 294,476 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current contingent liabilities $ 1,569 
      Deferred revenue 8,582 
Current operating lease liabilities 1,610 
Current finance lease liabilities 1 
Total current liabilities 11,762 
Long-term contingent liabilities 4,175 
Deferred income taxes, net 18,978 
Long-term operating lease liabilities 24,823 
Other long-term liabilities 5,006 
Total liabilities 64,744 
Net assets transferred to OmniAb $ 229,732 
The following table summarizes revenue and expenses of the discontinued operations for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year Ended December 31,
2022 2021 2020
Revenues:
Royalties $ 1,289  $ —  $ — 
Contract revenue 25,275  35,589  22,857 
Total revenues 26,564  35,589  22,857 
Operating costs and expenses:
Amortization of intangibles 10,847  12,945  11,800 
Research and development 38,466  36,907  18,889 
General and administrative 13,383  10,693  3,823 
Total operating costs and expenses 62,696  60,545  34,512 
Loss from operations (36,132) (24,956) (11,655)
Other income (expense):
Gain from short-term investments —  1,266  1,900 
Interest expense —  (7) (5)
Other income (expense), net 554  (1,210) (2,070)
Total other expense, net 554  49  (175)
Loss before income tax (35,578) (24,907) (11,830)
Income tax benefit 7,436  5,692  2,247 
Net loss $ (28,142) $ (19,215) $ (9,583)
The following table summarizes the assets and liabilities of the discontinued operations as of December 31, 2021 (in thousands):
December 31, 2021
ASSETS
Current assets:
Other current assets $ 1,100 
Total current assets of discontinued operations 1,100 
Intangible assets, net 174,349 
Goodwill 75,533 
Property and equipment, net 7,320 
Operating lease assets 13,332 
Finance lease assets 6 
Other assets 243 
Total assets of discontinued operations $ 271,883 
LIABILITIES
Current liabilities:
Current contingent liabilities $ 2,538 
      Deferred revenue 10,342 
Current operating lease liabilities 685 
Current finance lease liabilities 1 
Total current liabilities of discontinued operations 13,566 
Long-term contingent liabilities 4,826 
Deferred income taxes, net 28,239 
Long-term operating lease liabilities 13,238 
Other long-term liabilities 9,225 
Total liabilities of discontinued operations $ 69,094 

The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year Ended December 31,
2022 2021 2020
Operating activities:
Change in fair value of contingent consideration $ (554) $ 1,210  $ 2,070 
Depreciation and amortization 13,218  14,553  12,503 
Stock-based compensation expense 9,404  9,457  5,602 
Investing activities:
Cash paid for acquisition, net of cash acquired
 $ —  $ —  $ (27,127)
Purchase of property, plant and equipment (5,572) (4,070) (1,753)
Payments to CVR Holders (960) (720) — 
Financing activities:
Payments to CVR Holders $ (1,545) $ (1,050) $ (2,325)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses $ 2,310  $ 1,231  $ — 
Schedule of discontinued operations
The transfer of assets and liabilities to OmniAb was effected through a contribution in accordance with the Merger Agreement, as summarized below (in thousands):
As of November 1, 2022
ASSETS
Current assets:
Cash and cash equivalents
$ 1,842 
Other current assets 9,019 
Total current assets 10,861 
Intangible assets, net 165,422 
Goodwill 75,533 
Property and equipment, net 19,921 
Operating lease assets 21,290 
Other assets 1,449 
Total assets $ 294,476 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current contingent liabilities $ 1,569 
      Deferred revenue 8,582 
Current operating lease liabilities 1,610 
Current finance lease liabilities 1 
Total current liabilities 11,762 
Long-term contingent liabilities 4,175 
Deferred income taxes, net 18,978 
Long-term operating lease liabilities 24,823 
Other long-term liabilities 5,006 
Total liabilities 64,744 
Net assets transferred to OmniAb $ 229,732 
The following table summarizes revenue and expenses of the discontinued operations for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year Ended December 31,
2022 2021 2020
Revenues:
Royalties $ 1,289  $ —  $ — 
Contract revenue 25,275  35,589  22,857 
Total revenues 26,564  35,589  22,857 
Operating costs and expenses:
Amortization of intangibles 10,847  12,945  11,800 
Research and development 38,466  36,907  18,889 
General and administrative 13,383  10,693  3,823 
Total operating costs and expenses 62,696  60,545  34,512 
Loss from operations (36,132) (24,956) (11,655)
Other income (expense):
Gain from short-term investments —  1,266  1,900 
Interest expense —  (7) (5)
Other income (expense), net 554  (1,210) (2,070)
Total other expense, net 554  49  (175)
Loss before income tax (35,578) (24,907) (11,830)
Income tax benefit 7,436  5,692  2,247 
Net loss $ (28,142) $ (19,215) $ (9,583)
The following table summarizes the assets and liabilities of the discontinued operations as of December 31, 2021 (in thousands):
December 31, 2021
ASSETS
Current assets:
Other current assets $ 1,100 
Total current assets of discontinued operations 1,100 
Intangible assets, net 174,349 
Goodwill 75,533 
Property and equipment, net 7,320 
Operating lease assets 13,332 
Finance lease assets 6 
Other assets 243 
Total assets of discontinued operations $ 271,883 
LIABILITIES
Current liabilities:
Current contingent liabilities $ 2,538 
      Deferred revenue 10,342 
Current operating lease liabilities 685 
Current finance lease liabilities 1 
Total current liabilities of discontinued operations 13,566 
Long-term contingent liabilities 4,826 
Deferred income taxes, net 28,239 
Long-term operating lease liabilities 13,238 
Other long-term liabilities 9,225 
Total liabilities of discontinued operations $ 69,094 

The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the years ended December 31, 2022, 2021 and 2020 (in thousands):
Year Ended December 31,
2022 2021 2020
Operating activities:
Change in fair value of contingent consideration $ (554) $ 1,210  $ 2,070 
Depreciation and amortization 13,218  14,553  12,503 
Stock-based compensation expense 9,404  9,457  5,602 
Investing activities:
Cash paid for acquisition, net of cash acquired
 $ —  $ —  $ (27,127)
Purchase of property, plant and equipment (5,572) (4,070) (1,753)
Payments to CVR Holders (960) (720) — 
Financing activities:
Payments to CVR Holders $ (1,545) $ (1,050) $ (2,325)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses $ 2,310  $ 1,231  $ —