Vical Incorporated : Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2019

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: 000-21088

VICAL INCORPORATED

(Exact name of registrant as specified in its charter)

	Delaware		93-0948554
	(State or other jurisdiction of		(I.R.S. Employer
	incorporation or organization)		Identification No.)
	10390 Pacific Center Court
	San Diego, California		92121
	(Address of principal executive offices)	[phone]	(Zip Code)
		(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Act:
	Title of each class	Trading symbol(s)	Name of each exchange on which registered
	Common Stock, $0.01 par value per share	VICL	The Nasdaq Capital Market

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	☐
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. ☐

1

I nd icate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Total shares of common stock outstanding at June 30, 2019: 22,841,278

2

VICAL INCORPORATED
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements	4
Balance Sheets (unaudited) as of June 30, 2019 and December 31, 2018	4
Statements of Operations (unaudited) for the three and six months ended June 30, 2019 and 2018	5
Statements of Comprehensive Loss (unaudited) for the three and six months ended June 30, 2019 and 2018	6
Statements of Stockholders' Equity (unaudited) for the three and six months ended June 30, 2019 and 2018	7
Statements of Cash Flows (unaudited) for the six months ended June 30, 2019 and 2018	8
Notes to Financial Statements (unaudited)	9
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	16
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	19
ITEM 4. Controls and Procedures	19
PART II. OTHER INFORMATION
ITEM 1A. Risk Factors	20
ITEM 5. Other Information	23
ITEM 6. Exhibits	24
SIGNATURE	25
3

	P ART I. FINANCIAL INFORMATION
I TEM 1.	FINANCIAL STATEMENTS
	VICAL INCORPORATED
	BALANCE SHEETS
	(In thousands, except par value data)
	(Unaudited)
				June 30,		December 31,
				2019			2018
ASSETS
Current assets:
Cash and cash equivalents		$	10,813		$	11,870
Marketable securities, available-for-sale			30,907			36,201
Receivables and other assets			979			1,128
Total current assets			42,699			49,199
Long-term investments			-			2,386
Property and equipment, net			2			100
Other assets				-			659
Total assets			$	42,701		$	52,344
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	1,159		$	3,551
Deferred revenue			-			30
Total current liabilities			1,159			3,581
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding			-			-
Common stock, $0.01 par value, 50,000 shares authorized, 22,841 and 21,817 shares
issued and outstanding at June 30, 2019 and December 31, 2018, respectively			229			218
Additional paid-in capital			490,343			490,337
Accumulated deficit			(449,072	)		(442,064	)
Accumulated other comprehensive income			42			272
Total stockholders' equity			41,542			48,763
Total liabilities and stockholders' equity		$	42,701		$	52,344

See accompanying notes to unaudited financial statements

4

VICAL INCORPORATED

STATEMENTS OF OPERATIONS (In thousands, except per share data)

(Unaudited)

Three Months Ended	Six Months Ended
June 30,	June 30,

		2019
Revenues:
Contract revenue	$	-	$
License and royalty revenue		-
Total revenues		-
Operating expenses:
Research and development		759
Manufacturing and production		-
General and administrative		2,242
Total operating expenses		3,001
Loss from operations		(3,001)
Other income:
Investment and other income, net		571
Net loss	$	(2,430)	$
Basic and diluted net loss per share	$	(0.11)	$
Weighted average shares used in computing basic and diluted net
loss per share		22,825

2018		2019		2018
725	$	-	$	1,431
10		-		20
735		-		1,451
3,602		4,641		7,266
-		-		1,436
2,261		3,618		4,378
5,863		8,259		13,080
(5,128)		(8,259)		(11,629)
260		1,251		491
(4,868)	$	(7,008)	$	(11,138)
(0.22)	$	(0.31)	$	(0.51)
21,837		22,404		21,834

See accompanying notes to unaudited financial statements

5