The following discussion of our financial condition and results of operations should be read together with our financial statements and the notes thereto and other information included elsewhere in this Annual Report on Form 10-K.
Overview
We are a developer of next-generation biopharmaceuticals and pioneer of the sustainable FastPharming Manufacturing System. The Company applies its licensed and owned technologies to develop novel products to treat or prevent fibrotic diseases, cancers, and infectious diseases. We use our FastPharming Manufacturing System ("FastPharming" or the "FastPharming System") and Glycaneering Services TM to more rapidly build a portfolio of high quality biologic drug candidates in human clinical trials. We are also using the FastPharming System to create proteins for others by contract or via the Company's catalog.
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We operate in two segments: (i) Biopharmaceuticals: which includes development
and licensing in two business units; Therapeutics (focused on oncology, as well
as fibrotic and infectious diseases) and Vaccines (human and animal health
vaccines), and (ii) Bioprocessing which includes Services (
Results of Operations Revenue
Gross revenue for 2021 and 2020 was approximately
Significant quarter-to-quarter revenue variability is commonplace for early-stage pharma services companies, given the relatively small number of contracts and timing of revenue recognition. Based upon the current outlook, iBio expects a sequential decline in revenue during the first half of fiscal 2022 compared to the second half of fiscal 2021, followed by higher growth in the second half of fiscal 2022. Irrespective of quarterly fluctuations, continued year-on-year revenue growth is anticipated.
Research and Development Expenses
Research and development expenses for 2021 and 2020 were approximately
General and Administrative Expenses
General and administrative expenses for 2021 and 2020 were approximately
Other Income (Expense)
Other income (expense) for 2021 and 2020 was
Net Loss Attributable to Noncontrolling Interest
This represents the share of the loss in iBio CDMO for the Eastern Affiliate in 2021 and 2020.
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Liquidity and Capital Resources
As of
The following equity transactions occurred during Fiscal 2021:
On
equity distribution agreement with
pursuant to which the Company could sell from time to time shares of its
1. common stock through
Company's common stock. This "At-The-Market" facility included the remaining portion of theLincoln Park facility. The offering was terminated by the Company onNovember 25, 2020 . The Company issued 30.2 million shares of the Company's common stock for net proceeds of approximately$68.83 million OnDecember 8, 2020 , we entered into an underwriting agreement (the "Underwriting Agreement") withCantor Fitzgerald as underwriter, pursuant to which we (i) issued and sold in a public offering (the "Offering") 29,661,017 shares of common stock toCantor Fitzgerald and (ii) grantedCantor Fitzgerald an option for 30 days to purchase up to an additional 4,449,152 shares of
2. common stock that may be sold upon the exercise of such option by Cantor
Fitzgerald. InJanuary 2021 ,Cantor Fitzgerald notified us of its decision to partially exercise the option, and onJanuary 11, 2021 , we issued an additional 4,240,828 shares of common stock to satisfy the underwriter's option exercise for an additional net proceeds of approximately$4.6 million . We issued a total of 33.9 million shares of common stock for net proceeds of approximately$36.9 million . OnFebruary 24, 2021 ,Cantor Fitzgerald sold as sales agent pursuant to the
3. Sales Agreement 113,200 shares of common stock. The Company received net
proceeds of approximately
On
4. Agreement 1,716,800 shares of common stock. The Company received net proceeds
of approximately
In Fiscal 2021, net cash used in operating activities was
In Fiscal 2021, net cash used in investing activities was
Net Cash Provided by Financing Activities
In Fiscal 2021, net cash provided by financing activities was
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Funding Requirements
We have incurred significant losses and negative cash flows from operations
since our spin-off from Integrated BioPharma in
We plan to fund our future business operations using cash on hand, through proceeds realized in connection with the commercialization of our technologies and proprietary products, license and collaboration arrangements and the operation of iBio CDMO, through the collection or proceeds from our settlement with Fraunhofer, through potential proceeds from the sale or out-licensing of assets, and through proceeds from the sale of additional equity or other securities. We cannot be certain that such funding will be available on favorable terms or available at all. To the extent that the Company raises additional funds by issuing equity securities, its stockholders may experience significant dilution. If we are unable to raise funds when required or on favorable terms, this assumption may no longer be operative, and we may have to: a) significantly delay, scale back, or discontinue the product application and/or commercialization of our proprietary technologies; b) seek collaborators for our technology and product candidates on terms that are less favorable than might otherwise be available; c) relinquish or otherwise dispose of rights to technologies, product candidates, or products that we would otherwise seek to develop or commercialize; or d) possibly cease operations.
Off-Balance Sheet Arrangements
As part of our ongoing business, we do not participate in transactions that
generate relationships with unconsolidated entities or financial partnerships,
such as entities often referred to as structured finance or special purpose
entities (SPEs), which would have been established for the purpose of
facilitating off-balance sheet arrangements or other contractually limited
purposes. As of
Critical Accounting Policies and Estimates
A critical accounting policy is one that is both important to the portrayal of a company's financial condition and results of operations and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
Our consolidated financial statements are presented in accordance with
accounting principles generally accepted in
? valuation of intellectual property;
? revenue recognition;
? legal and contractual contingencies;
? research and development expenses; and
? share-based compensation expenses.
We base our estimates, to the extent possible, on historical experience. Historical information is modified as appropriate based on current business factors and various assumptions that we believe are necessary to form a basis for making judgments about the carrying value of assets and liabilities. We evaluate our estimates on an ongoing basis and make
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changes when necessary. Actual results could differ from our estimates. See Note 3 to the consolidated financial statements in this Annual Report for a complete discussion of our significant accounting policies and estimates.
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