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DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) |
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04-3221586
(I.R.S. EMPLOYER IDENTIFICATION NO.) |
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(TITLE OF EACH CLASS) |
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NAME OF EACH EXCHANGE
ON WHICH REGISTERED |
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COMMON STOCK, $.01 PAR VALUE
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The NASDAQ Stock Market LLC (NASDAQ Global Market)
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Large accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company) |
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Accelerated filer ☒
Smaller reporting company ☐ Emerging growth company ☐ |
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Page
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PART I | | | | |||||||
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PART II | | | | |||||||
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PART III | | | | |||||||
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PART IV | | | | |||||||
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NAME
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AGE
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POSITION
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Paolo Pucci
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56
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| | Chief Executive Officer and a Director | |
Peter S. Lawrence
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54
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| | President and Chief Operating Officer | |
Robert J. Weiskopf
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67
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| | Chief Financial Officer and Treasurer | |
Dr. Brian Schwartz
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56
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| | Chief Medical Officer | |
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12/31/12
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12/31/13
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12/31/14
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12/31/15
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12/31/16
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12/31/17
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ArQule, Inc.
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| | | | 100.00 | | | | | | 77.06 | | | | | | 43.73 | | | | | | 77.78 | | | | | | 45.16 | | | | | | 59.14 | | |
NASDAQ Market (U.S. Companies) Index
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| | | | 100.00 | | | | | | 133.48 | | | | | | 150.12 | | | | | | 150.84 | | | | | | 170.46 | | | | | | 206.91 | | |
NASDAQ Biotechnology Index
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| | | | 100.00 | | | | | | 165.97 | | | | | | 223.07 | | | | | | 249.32 | | | | | | 196.09 | | | | | | 238.51 | | |
Plan Category
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Number of Shares of
Common Stock to be Issued Upon Exercise of Outstanding Options |
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Weighted-Average
Exercise Price of Outstanding Options |
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Weighted-Average
Remaining Contractual Term (in years) |
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Number of Shares of
Common Stock Remaining Available for Future Issuance Under Equity Compensation Plans |
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Equity compensation plans approved by stockholders
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| | | | 10,622,455 | | | | | $ | 3.01 | | | | | | 5.74 | | | | | | 450,494 | | |
Equity compensation plans not approved by stockholders
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| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
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HIGH
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LOW
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2016 | | | | ||||||||||
First Quarter
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| | | $ | 2.19 | | | | | $ | 1.37 | | |
Second Quarter
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| | | | 2.17 | | | | | | 1.37 | | |
Third Quarter
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| | | | 1.94 | | | | | | 1.39 | | |
Fourth Quarter
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| | | | 1.82 | | | | | | 1.20 | | |
2017 | | | | ||||||||||
First Quarter
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| | | $ | 1.68 | | | | | $ | 0.98 | | |
Second Quarter
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| | | | 1.44 | | | | | | 0.92 | | |
Third Quarter
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| | | | 1.39 | | | | | | 0.94 | | |
Fourth Quarter
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| | | | 1.70 | | | | | | 0.97 | | |
2018 | | | | ||||||||||
First Quarter (through February 20, 2018)
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| | | $ | 1.98 | | | | | $ | 1.46 | | |
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YEAR ENDED DECEMBER 31,
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2017
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2016
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2015
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2014
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2013
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STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS DATA:
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Revenue: | | | | | | | |||||||||||||||||||||||||
Research and development revenue(a)
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| | | $ | — | | | | | $ | 4,709 | | | | | $ | 11,239 | | | | | $ | 11,254 | | | | | $ | 15,914 | | |
Costs and expenses: | | | | | | | |||||||||||||||||||||||||
Research and development(b)
|
| | | | 19,468 | | | | | | 20,042 | | | | | | 15,561 | | | | | | 22,271 | | | | | | 27,555 | | |
General and administrative
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| | | | 7,551 | | | | | | 7,563 | | | | | | 9,830 | | | | | | 12,154 | | | | | | 12,836 | | |
Restructuring and other costs(c)(d)
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| | | | — | | | | | | — | | | | | | — | | | | | | 1,099 | | | | | | 650 | | |
Total costs and expenses
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| | | | 27,019 | | | | | | 27,605 | | | | | | 25,391 | | | | | | 35,524 | | | | | | 41,041 | | |
Loss from operations
|
| | | | (27,019) | | | | | | (22,896) | | | | | | (14,152) | | | | | | (24,270) | | | | | | (25,127) | | |
Interest income
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| | | | 238 | | | | | | 178 | | | | | | 101 | | | | | | 272 | | | | | | 502 | | |
Interest expense
|
| | | | (1,520) | | | | | | — | | | | | | — | | | | | | (35) | | | | | | (32) | | |
Other income (expense)(e)
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| | | | (902) | | | | | | — | | | | | | 277 | | | | | | 642 | | | | | | 57 | | |
Loss before income taxes
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| | | | (29,203) | | | | | | (22,718) | | | | | | (13,774) | | | | | | (23,391) | | | | | $ | (24,600) | | |
Provision for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss
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| | | | (29,203) | | | | | | (22,718) | | | | | | (13,774) | | | | | | (23,391) | | | | | | (24,600) | | |
Unrealized gain (loss) on marketable securities
|
| | | | (18) | | | | | | (1) | | | | | | 13 | | | | | | (77) | | | | | | (35) | | |
Comprehensive loss
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| | | $ | (29,221) | | | | | $ | (22,719) | | | | | $ | (13,761) | | | | | $ | (23,468) | | | | | $ | (24,635) | | |
Basic and diluted net loss per share
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| | | $ | (0.39) | | | | | $ | (0.33) | | | | | $ | (0.22) | | | | | $ | (0.37) | | | | | $ | (0.39) | | |
Weighted average common shares outstanding—basic and diluted
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| | | | 74,813 | | | | | | 69,714 | | | | | | 62,808 | | | | | | 62,627 | | | | | | 62,480 | | |
Cash, cash equivalents and marketable securities(f)(g)
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| | | $ | 48,036 | | | | | $ | 31,126 | | | | | $ | 38,772 | | | | | $ | 59,208 | | | | | $ | 74,695 | | |
Marketable securities-long term
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| | | | — | | | | | | — | | | | | | — | | | | | | 2,058 | | | | | | 20,391 | | |
| | | | $ | 48,036 | | | | | $ | 31,126 | | | | | $ | 38,772 | | | | | $ | 61,266 | | | | | $ | 95,086 | | |
Working capital(f)(g)
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| | | $ | 38,824 | | | | | $ | 23,248 | | | | | $ | 28,661 | | | | | $ | 42,824 | | | | | $ | 53,883 | | |
Notes payable
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| | | | 14,607 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,700 | | |
Total assets
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| | | | 48,902 | | | | | | 32,380 | | | | | | 40,004 | | | | | | 63,394 | | | | | | 98,179 | | |
Total stockholders’ equity(f)(g)
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| | | | 14,181 | | | | | | 23,680 | | | | | | 29,179 | | | | | | 40,545 | | | | | | 60,626 | | |
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December 31,
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% increase (decrease)
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2017
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2016
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2015
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2016 to 2017
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2015 to 2016
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(in millions)
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Cash, cash equivalents and marketable securities short-term
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| | | $ | 48.0 | | | | | $ | 31.1 | | | | | $ | 38.8 | | | | | | 54% | | | | | | (20)% | | |
Working capital
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| | | | 38.8 | | | | | | 23.2 | | | | | | 28.7 | | | | | | 67% | | | | | | (19)% | | |
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Year Ended December 31,
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2017
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2016
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2015
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(in millions)
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Cash flow from: | | | | | |||||||||||||||
Operating activities
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| | | $ | (25.2) | | | | | $ | (22.9) | | | | | $ | (22.2) | | |
Investing activities
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| | | | (11.9) | | | | | | 8.9 | | | | | | 23.5 | | |
Financing activities
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| | | | 42.1 | | | | | | 15.4 | | | | | | 0.1 | | |
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Payment due by period
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Contractual Obligations
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Total
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Less than
1 year |
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1–3 years
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3–5 years
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More than
5 years |
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Notes payable
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| | | $ | 15,900 | | | | | $ | — | | | | | $ | 6,667 | | | | | $ | 9,233 | | | | | $ | — | | |
Interest on notes payable
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| | | | 3,721 | | | | | | 1,159 | | | | | | 1,999 | | | | | | 563 | | | | | | — | | |
Operating lease obligations
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| | | | 1,333 | | | | | | 560 | | | | | | 773 | | | | | | — | | | | | | — | | |
Purchase obligations
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| | | | 5,409 | | | | | | 5,409 | | | | | | — | | | | | | — | | | | | | — | | |
Total
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| | | $ | 26,363 | | | | | $ | 7,128 | | | | | $ | 9,439 | | | | | $ | 9,796 | | | | | $ | — | | |
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% increase (decrease)
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2017
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2016
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2015
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2016 to 2017
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2015 to 2016
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(in millions)
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Research and development revenue
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| | | $ | — | | | | | $ | 4.7 | | | | | $ | 11.2 | | | | | | (58)% | | | | | | —% | | |
| | | | | |
% increase (decrease)
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2017
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2016
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2015
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2016 to 2017
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2015 to 2016
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(in millions)
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Research and development
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| | | $ | 19.5 | | | | | $ | 20.1 | | | | | $ | 15.6 | | | | | | (3)% | | | | | | 29% | | |
Clinical Phase
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Estimated Completion Period
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Phase 1
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1–2 years
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Phase 2
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2–3 years
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Phase 3
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2–4 years
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% increase (decrease)
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2017
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2016
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2015
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2016 to 2017
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2015 to 2016
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(in millions)
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General and administrative
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| | | $ | 7.6 | | | | | $ | 7.6 | | | | | $ | 9.8 | | | | | | —% | | | | | | (23)% | | |
| | | | | |
% increase (decrease)
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2017
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2016
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2015
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2016 to 2017
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2015 to 2016
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(in thousands)
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Interest income
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| | | $ | 238 | | | | | $ | 178 | | | | | $ | 101 | | | | | | 34% | | | | | | 76% | | |
Interest expense
|
| | | | (1,520) | | | | | | — | | | | | | — | | | | | | 100% | | | | | | — | | |
Other income (expense)
|
| | | | (902) | | | | | | — | | | | | | 277 | | | | | | 100% | | | | | | — | | |
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Page
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December 31,
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2017
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2016
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(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA) |
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ASSETS | | | | ||||||||||
Current assets: | | | | ||||||||||
Cash and cash equivalents
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| | | $ | 20,229 | | | | | $ | 15,267 | | |
Marketable securities-short term
|
| | | | 27,807 | | | | | | 15,859 | | |
Prepaid expenses and other current assets
|
| | | | 547 | | | | | | 822 | | |
Total current assets
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| | | | 48,583 | | | | | | 31,948 | | |
Property and equipment, net
|
| | | | 115 | | | | | | 180 | | |
Other assets
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| | | | 204 | | | | | | 252 | | |
Total assets
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| | | $ | 48,902 | | | | | $ | 32,380 | | |
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current liabilities: | | | | ||||||||||
Accounts payable and accrued expenses
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| | | $ | 8,259 | | | | | $ | 8,700 | | |
Deferred revenue
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| | | | 1,500 | | | | | | — | | |
Total current liabilities
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| | | | 9,759 | | | | | | 8,700 | | |
Long-term liabilities: | | | | ||||||||||
Notes payable
|
| | | | 14,607 | | | | | | — | | |
Warrant liability
|
| | | | 1,512 | | | | | | — | | |
Total liabilities
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| | | | 25,878 | | | | | | 8,700 | | |
Commitments and contingencies (Note 13) | | | | ||||||||||
Preferred stock, convertible, Series A $0.01 par value; 1,000,000, shares authorized; 8,370 and no shares issued and outstanding at December 31, 2017 and 2016, respectively, aggregate liquidation preference of $9,500
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| | | | 8,843 | | | | | | — | | |
Stockholders’ equity: | | | | ||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized; 87,110,202 and
71,146,209 shares issued and outstanding at December 31, 2017 and 2016, respectively |
| | | | 871 | | | | | | 711 | | |
Additional paid-in capital
|
| | | | 547,364 | | | | | | 527,802 | | |
Accumulated other comprehensive income (loss)
|
| | | | (16) | | | | | | 2 | | |
Accumulated deficit
|
| | | | (534,038) | | | | | | (504,835) | | |
Total stockholders’ equity
|
| | | | 14,181 | | | | | | 23,680 | | |
Total liabilities, preferred stock and stockholders’ equity
|
| | | $ | 48,902 | | | | | $ | 32,380 | | |
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YEAR ENDED DECEMBER 31,
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2017
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2016
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2015
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(IN THOUSANDS, EXCEPT
PER SHARE DATA) |
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Revenue: | | | | | |||||||||||||||
Research and development revenue
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| | | $ | — | | | | | $ | 4,709 | | | | | $ | 11,239 | | |
Costs and expenses: | | | | | |||||||||||||||
Research and development
|
| | | | 19,468 | | | | | | 20,042 | | | | | | 15,561 | | |
General and administrative
|
| | | | 7,551 | | | | | | 7,563 | | | | | | 9,830 | | |
| | | | | 27,019 | | | | | | 27,605 | | | | | | 25,391 | | |
Loss from operations
|
| | | | (27,019) | | | | | | (22,896) | | | | | | (14,152) | | |
Interest income
|
| | | | 238 | | | | | | 178 | | | | | | 101 | | |
Interest expense
|
| | | | (1,520) | | | | | | — | | | | | | — | | |
Other income (expense)
|
| | | | (902) | | | | | | — | | | | | | 277 | | |
Loss before income taxes
|
| | | | (29,203) | | | | | | (22,718) | | | | | | (13,774) | | |
Provision for income taxes
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | | (29,203) | | | | | | (22,718) | | | | | | (13,774) | | |
Unrealized gain (loss) on marketable securities
|
| | | | (18) | | | | | | (1) | | | | | | 13 | | |
Comprehensive loss
|
| | | $ | (29,221) | | | | | $ | (22,719) | | | | | $ | (13,761) | | |
Basic and diluted net loss per common share: | | | | | |||||||||||||||
Net loss per common share
|
| | | $ | (0.39) | | | | | $ | (0.33) | | | | | $ | (0.22) | | |
Weighted average basic and diluted common shares outstanding
|
| | | | 74,813 | | | | | | 69,714 | | | | | | 62,808 | | |
|
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PREFERRED STOCK
|
| | |
COMMON STOCK
|
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ADDITIONAL
PAID-IN CAPITAL |
| |
ACCUMULATED
OTHER COMPREHENSIVE INCOME/(LOSS) |
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ACCUMULATED
DEFICIT |
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STOCK-
HOLDERS’ EQUITY |
| ||||||||||||||||||||||||||||||
| | |
SHARES
|
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AMOUNT
|
| | |
SHARES
|
| |
PAR
VALUE |
| ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014
|
| | | | — | | | | | $ | — | | | | | | | 62,821,781 | | | | | $ | 628 | | | | | $ | 508,270 | | | | | $ | (10) | | | | | $ | (468,343) | | | | | $ | 40,545 | | |
Restricted shares issued net of forfeitures
and shares redeemed for taxes |
| | | | | | | | | | | | | | | | | 13,242 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Employee stock purchase plan
|
| | | | | | | | | | | | | | | | | 104,757 | | | | | | 1 | | | | | | 133 | | | | | | | | | | | | | | | | | | 134 | | |
Stock based compensation expense
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,261 | | | | | | | | | | | | | | | | | | 2,261 | | |
Change in unrealized gain (loss) on marketable securities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13 | | | | | | | | | | | | 13 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (13,774) | | | | | | (13,774) | | |
Balance at December 31, 2015
|
| | | | — | | | | | | — | | | | | | | 62,939,780 | | | | | | 629 | | | | | | 510,664 | | | | | | 3 | | | | | | (482,117) | | | | | | 29,179 | | |
Issuance of common stock and options from stock offering, net
|
| | | | | | | | | | | | | | | | | 8,027,900 | | | | | | 80 | | | | | | 15,094 | | | | | | | | | | | | | | | | | | 15,174 | | |
Stock option exercises and issuance of common stock
|
| | | | | | | | | | | | | | | | | 97,498 | | | | | | 1 | | | | | | 112 | | | | | | | | | | | | | | | | | | 113 | | |
Restricted shares issued net of forfeitures
and shares redeemed for taxes |
| | | | | | | | | | | | | | | | | 29,828 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Employee stock purchase plan
|
| | | | | | | | | | | | | | | | | 51,203 | | | | | | 1 | | | | | | 67 | | | | | | | | | | | | | | | | | | 68 | | |
Stock based compensation expense
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,865 | | | | | | | | | | | | | | | | | | 1,865 | | |
Change in unrealized gain (loss) on marketable securities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) | | | | | | | | | | | | (1) | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (22,718) | | | | | | (22,718) | | |
Balance at December 31, 2016
|
| | | | — | | | | | | — | | | | | | | 71,146,209 | | | | | | 711 | | | | | | 527,802 | | | | | | 2 | | | | | | (504,835) | | | | | | 23,680 | | |
Issuance of preferred stock and warrants
from stock offering, net |
| | | | 8,370 | | | | | | 8,843 | | | | | | | | | | ||||||||||||||||||||||||||||||
Issuance of common stock and warrants
from stock offerings, net |
| | | | | | | | | | | | | | | | | 15,938,651 | | | | | | 160 | | | | | | 17,764 | | | | | | | | | | | | | | | | | | 17,924 | | |
Restricted shares issued net of forfeitures
and shares redeemed for taxes |
| | | | | | | | | | | | | | | | | 5,380 | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | — | | |
Employee stock purchase plan
|
| | | | | | | | | | | | | | | | | 19,962 | | | | | | — | | | | | | 17 | | | | | | | | | | | | | | | | | | 17 | | |
Stock based compensation expense
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,434 | | | | | | | | | | | | | | | | | | 1,434 | | |
Issuance of warrants from notes
payable |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 347 | | | | | | | | | | | | | | | | | | 347 | | |
Change in unrealized gain (loss) on marketable securities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (18) | | | | | | | | | | | | (18) | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (29,203) | | | | | | (29,203) | | |
Balance at December 31, 2017
|
| | | | 8,370 | | | | | $ | 8,843 | | | | | | | 87,110,202 | | | | | $ | 871 | | | | | $ | 547,364 | | | | | $ | (16) | | | | | $ | (534,038) | | | | | $ | 14,181 | | |
|
| | |
YEAR ENDED DECEMBER 31,
|
| |||||||||||||||
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
| | |
(IN THOUSANDS)
|
| |||||||||||||||
Cash flows from operating activities: | | | | | |||||||||||||||
Net loss
|
| | | $ | (29,203) | | | | | $ | (22,718) | | | | | $ | (13,774) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | |||||||||||||||
Depreciation and amortization
|
| | | | 65 | | | | | | 101 | | | | | | 161 | | |
Amortization of premium (discount) on marketable securities
|
| | | | (28) | | | | | | 48 | | | | | | 464 | | |
Amortization of deferred gain on sale leaseback
|
| | | | — | | | | | | — | | | | | | (232) | | |
Amortization of debt discount
|
| | | | 330 | | | | | | — | | | | | | — | | |
Change in fair value of warrant liability
|
| | | | 902 | | | | | | — | | | | | | — | | |
Non-cash stock compensation
|
| | | | 1,434 | | | | | | 1,865 | | | | | | 2,261 | | |
Gain on sale of property and equipment
|
| | | | — | | | | | | — | | | | | | (277) | | |
Changes in operating assets and liabilities:
|
| | | | |||||||||||||||
Prepaid expenses and other assets
|
| | | | 322 | | | | | | (108) | | | | | | 1,029 | | |
Accounts payable and accrued expenses
|
| | | | (497) | | | | | | 2,466 | | | | | | (713) | | |
Deferred revenue
|
| | | | 1,500 | | | | | | (4,591) | | | | | | (11,079) | | |
Net cash used in operating activities
|
| | | | (25,175) | | | | | | (22,937) | | | | | | (22,160) | | |
Cash flows from investing activities: | | | | | |||||||||||||||
Purchases of marketable securities
|
| | | | (41,971) | | | | | | (30,975) | | | | | | (36,978) | | |
Proceeds from sale or maturity of marketable securities
|
| | | | 30,033 | | | | | | 39,856 | | | | | | 60,479 | | |
Proceeds from sale of property and equipment
|
| | | | — | | | | | | — | | | | | | 298 | | |
Purchases of property and equipment
|
| | | | — | | | | | | (15) | | | | | | (315) | | |
Net cash provided by (used in) investing activities
|
| | | | (11,938) | | | | | | 8,866 | | | | | | 23,484 | | |
Cash flows from financing activities: | | | | | |||||||||||||||
Proceeds from notes payable and warrants, net
|
| | | | 14,624 | | | | | | — | | | | | | — | | |
Proceeds from common stock offerings and warrants, net
|
| | | | 17,951 | | | | | | 15,174 | | | | | | — | | |
Proceeds from convertible preferred stock offering and warrants, net
|
| | | | 9,483 | | | | | | — | | | | | | — | | |
Proceeds from stock option exercises and employee stock plan purchases
|
| | | | 17 | | | | | | 181 | | | | | | 134 | | |
Net cash provided by financing activities
|
| | | | 42,075 | | | | | | 15,355 | | | | | | 134 | | |
Net increase in cash and cash equivalents
|
| | | | 4,962 | | | | | | 1,284 | | | | | | 1,458 | | |
Cash and cash equivalents, beginning of period
|
| | | | 15,267 | | | | | | 13,983 | | | | | | 12,525 | | |
Cash and cash equivalents, end of period
|
| | | $ | 20,229 | | | | | $ | 15,267 | | | | | $ | 13,983 | | |
|
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Research and development
|
| | | $ | 359 | | | | | $ | 514 | | | | | $ | 682 | | |
General and administrative
|
| | | | 1,075 | | | | | | 1,351 | | | | | | 1,579 | | |
Total stock-based compensation expense
|
| | | $ | 1,434 | | | | | $ | 1,865 | | | | | $ | 2,261 | | |
|
| | |
2017
|
| |
2016
|
| |
2015
|
|
Dividend yield(1)
|
| |
0.0%
|
| |
0.0%
|
| |
0.0%
|
|
Weighted average expected volatility factor(2)
|
| |
62%
|
| |
63%
|
| |
66%
|
|
Risk free interest(3)
|
| |
1.9–2.1%
|
| |
1.2–1.8%
|
| |
1.3–1.7%
|
|
Expected term, excluding options issued pursuant to the Employee Stock Purchase Plan(4)
|
| |
6.1–7.1 years
|
| |
5.8–7.2 years
|
| |
5.6–6.8 years
|
|
Expected term—Employee Stock Purchase Plan(5)
|
| |
6 months
|
| |
6 months
|
| |
6 months
|
|
December 31, 2017
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Security type | | | | | | ||||||||||||||||||||
Corporate debt securities-short term
|
| | | $ | 27,823 | | | | | $ | 1 | | | | | $ | (17) | | | | | $ | 27,807 | | |
Total available-for-sale marketable securities
|
| | | $ | 27,823 | | | | | $ | 1 | | | | | $ | (17) | | | | | $ | 27,807 | | |
|
December 31, 2016
|
| |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
Security type | | | | | | ||||||||||||||||||||
Corporate debt securities-short term
|
| | | $ | 15,857 | | | | | $ | 7 | | | | | $ | (5) | | | | | $ | 15,859 | | |
Total available-for-sale marketable securities
|
| | | $ | 15,857 | | | | | $ | 7 | | | | | $ | (5) | | | | | $ | 15,859 | | |
|
| | |
December 31,
2017 |
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Cash equivalents
|
| | | $ | 19,889 | | | | | $ | 19,889 | | | | | $ | — | | | | | $ | — | | |
Corporate debt securities-short term
|
| | | | 27,807 | | | | | | — | | | | | | 27,807 | | | | | | — | | |
Total
|
| | | $ | 47,696 | | | | | $ | 19,889 | | | | | $ | 27,807 | | | | | $ | — | | |
|
| | |
December 31,
2017 |
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Warrant liability
|
| | | $ | 1,512 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,512 | | |
|
| | |
2017
|
|
Warrant stock price
|
| |
$1.75
|
|
Exercise price
|
| |
1.65
|
|
Expected volatility
|
| |
53.3%
|
|
Risk-free interest
|
| |
2.07%
|
|
Expected term
|
| |
3.85 years
|
|
Dividends
|
| |
none
|
|
| | |
December 31,
2016 |
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Unobservable Inputs (Level 3) |
| ||||||||||||
Cash equivalents
|
| | | $ | 12,923 | | | | | $ | 12,923 | | | | | $ | — | | | | | $ | — | | |
Corporate debt securities-short term
|
| | | | 15,859 | | | | | | — | | | | | | 15,859 | | | | | | — | | |
Total
|
| | | $ | 28,782 | | | | | $ | 12,923 | | | | | $ | 15,859 | | | | | $ | — | | |
|
| | |
USEFUL
LIFE ESTIMATED (YEARS) |
| |
2017
|
| |
2016
|
| |||||||||
Machinery and equipment
|
| | | | 5 | | | | | $ | 1,939 | | | | | $ | 1,939 | | |
Leasehold improvements
|
| | | | 3–5 | | | | | | 232 | | | | | | 232 | | |
Furniture and fixtures
|
| | | | 7 | | | | | | 40 | | | | | | 40 | | |
Computer equipment
|
| | | | 3 | | | | | | 2,497 | | | | | | 2,497 | | |
| | | | | | | | | | | 4,708 | | | | | | 4,708 | | |
Less: Accumulated depreciation and amortization
|
| | | | | | | | | | 4,593 | | | | | | 4,528 | | |
Net property and equipment
|
| | | | | | | | | $ | 115 | | | | | $ | 180 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Security deposits
|
| | | $ | 204 | | | | | $ | 252 | | |
Total other assets
|
| | | $ | 204 | | | | | $ | 252 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Accounts payable
|
| | | $ | 537 | | | | | $ | 710 | | |
Accrued payroll
|
| | | | 1,448 | | | | | | 1,856 | | |
Accrued outsourced preclinical and clinical fees
|
| | | | 5,409 | | | | | | 5,461 | | |
Accrued professional fees
|
| | | | 492 | | | | | | 363 | | |
Other accrued expenses
|
| | | | 373 | | | | | | 310 | | |
| | | | $ | 8,259 | | | | | $ | 8,700 | | |
|
|
2019
|
| | | $ | 1,667 | | |
|
2020
|
| | | | 5,000 | | |
|
2021
|
| | | | 5,000 | | |
|
2022
|
| | | | 3,333 | | |
| | | | | $ | 15,000 | | |
|
Stock Options
|
| |
Number
of Shares |
| |
Weighted Average
Exercise Price |
| ||||||
Outstanding as of December 31, 2016
|
| | | | 8,715,048 | | | | | $ | 3.71 | | |
Granted
|
| | | | 2,572,500 | | | | | | 1.19 | | |
Exercised
|
| | | | — | | | | | | — | | |
Cancelled
|
| | | | (665,093) | | | | | | 5.16 | | |
Outstanding as of December 31, 2017
|
| | | | 10,622,455 | | | | | $ | 3.01 | | |
Exercisable as of December 31, 2017
|
| | | | 6,342,885 | | | | | $ | 4.10 | | |
|
| | |
Options Outstanding
|
| |
Options Exercisable
|
| ||||||||||||||||||||||||
Range of Exercise Prices
|
| |
Number
Outstanding at December 31, 2017 |
| |
Weighted Average
Remaining Contractual Life |
| |
Weighted Average
Exercise Price |
| |
Exercisable as of
December 31, 2017 |
| |
Weighted Average
Exercise Price |
| |||||||||||||||
$1.16–1.41
|
| | | | 2,572,702 | | | | | | 8.36 | | | | | $ | 1.05 | | | | | | 458,102 | | | | | $ | 1.16 | | |
1.42–2.35
|
| | | | 2,756,150 | | | | | | 8.21 | | | | | | 1.69 | | | | | | 776,600 | | | | | | 1.73 | | |
2.36–3.80
|
| | | | 2,407,565 | | | | | | 4.05 | | | | | | 2.88 | | | | | | 2,222,145 | | | | | | 2.90 | | |
3.81–5.60
|
| | | | 982,650 | | | | | | 0.64 | | | | | | 4.18 | | | | | | 982,650 | | | | | | 4.18 | | |
5.61–8.40
|
| | | | 1,903,388 | | | | | | 3.41 | | | | | | 7.13 | | | | | | 1,903,388 | | | | | | 7.13 | | |
| | | | | 10,622,455 | | | | | | 5.74 | | | | | $ | 3.01 | | | | | | 6,342,885 | | | | | $ | 4.10 | | |
|
| | |
Options
|
| |
Weighted-Average
Exercise Price |
| |
Weighted-Average
Remaining Contractual Term (in years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Vested and unvested expected to vest at December 31, 2017
|
| | | | 10,415,678 | | | | | $ | 3.01 | | | | | | 5.74 | | | | | $ | 1,629 | | |
Exercisable at December 31, 2017
|
| | | | 6,342,885 | | | | | $ | 4.10 | | | | | | 3.88 | | | | | $ | 247 | | |
Restricted Stock
|
| |
Number of Shares
|
| |
Weighted Average
Grant Date Fair Value |
| ||||||
Unvested as of December 31, 2016
|
| | | | 29,276 | | | | | $ | 2.51 | | |
Granted
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (29,276) | | | | | | 2.51 | | |
Cancelled
|
| | | | — | | | | | | 2.51 | | |
Unvested as of December 31, 2017
|
| | | | — | | | | | $ | 2.51 | | |
|
| | |
2017
|
| |
2016
|
| |
2015
|
| |||||||||
Income tax (benefit) expense at statutory rate
|
| | | $ | (9,929) | | | | | $ | (7,724) | | | | | $ | (4,683) | | |
State tax (benefit) expense, net of Federal tax (benefit) expense
|
| | | | (1,452) | | | | | | (1,146) | | | | | | (677) | | |
Permanent items
|
| | | | 508 | | | | | | 263 | | | | | | 239 | | |
Effect of change in valuation allowance and State NOL expiration
|
| | | | (39,972) | | | | | | 8,837 | | | | | | 4,945 | | |
Tax credits
|
| | | | (544) | | | | | | (228) | | | | | | (74) | | |
Change in tax rate on beginning assets
|
| | | | 51,445 | | | | | | — | | | | | | — | | |
Other
|
| | | | (56) | | | | | | (2) | | | | | | 250 | | |
Tax expense (benefit)
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Deferred tax assets: | | | | ||||||||||
Net operating loss carryforwards
|
| | | $ | 100,421 | | | | | $ | 135,642 | | |
Tax credit carryforwards
|
| | | | 26,771 | | | | | | 25,264 | | |
Equity based compensation
|
| | | | 3,381 | | | | | | 9,610 | | |
Book depreciation in excess of tax
|
| | | | 49 | | | | | | 56 | | |
Reserves and accruals
|
| | | | 171 | | | | | | 181 | | |
Other
|
| | | | 16 | | | | | | 28 | | |
| | | | | 130,809 | | | | | | 170,781 | | |
Valuation allowance
|
| | | | (130,809) | | | | | | (170,781) | | |
Deferred tax liabilities
|
| | | | — | | | | | | — | | |
Net deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
|
YEAR ENDING DECEMBER 31,
|
| |
OPERATING LEASES
|
| |||
2018
|
| | | $ | 560 | | |
2019
|
| | | | 519 | | |
2020
|
| | | | 254 | | |
Thereafter
|
| | | | — | | |
Total minimum lease payments
|
| | | $ | 1,333 | | |
|
| | |
FIRST
QUARTER |
| |
SECOND
QUARTER |
| |
THIRD
QUARTER |
| |
FOURTH
QUARTER |
| ||||||||||||
2017 | | | | | | ||||||||||||||||||||
Net revenues
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net loss
|
| | | | (7,576) | | | | | | (7,201) | | | | | | (6,666) | | | | | | (7,760) | | |
Basic and diluted net loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share
|
| | | $ | (0.11) | | | | | $ | (0.10) | | | | | $ | (0.09) | | | | | $ | (0.09) | | |
| | |
FIRST
QUARTER |
| |
SECOND
QUARTER |
| |
THIRD
QUARTER |
| |
FOURTH
QUARTER |
| ||||||||||||
2016 | | | | | | ||||||||||||||||||||
Net revenues
|
| | | $ | 1,227 | | | | | $ | 1,072 | | | | | $ | 1,223 | | | | | $ | 1,187 | | |
Net loss
|
| | | | (4,981) | | | | | | (5,100) | | | | | | (5,817) | | | | | | (6,820) | | |
Basic and diluted earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share
|
| | | $ | (0.08) | | | | | $ | (0.07) | | | | | $ | (0.08) | | | | | $ | (0.10) | | |
EXHIBIT
NO. |
| |
DESCRIPTION
|
| |||
| | 101 | | | | The following materials from ArQule, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) Balance Sheets, (ii) Statements of Operations and Comprehensive Loss, (iii) Statements of Stockholders’ Equity (Deficit) and Comprehensive Loss, (iv) Statements of Cash Flows, and (v) Notes to Financial Statements. | |
| ArQule, Inc. | | | |||||
| By: | | | /s/ Paolo Pucci | | | ||
| | | | Paolo Pucci | | | ||
| | | | Chief Executive Officer | | | ||
| Date: March 5, 2018 | | | | |
|
SIGNATURE
|
| |
TITLE
|
| |
DATE
|
|
|
/s/ Paolo Pucci
Paolo Pucci
|
| | Chief Executive Officer and Director (Principal Executive Officer) |
| |
March 5, 2018
|
|
|
/s/ Peter S. Lawrence
Peter S. Lawrence
|
| | President and Chief Operating Officer (Principal Financial Officer) |
| |
March 5, 2018
|
|
|
/s/ Robert J. Weiskopf
Robert J. Weiskopf
|
| | Chief Financial Officer and Treasurer (Principal Accounting Officer) |
| |
March 5, 2018
|
|
|
/s/ Patrick J. Zenner
Patrick J. Zenner
|
| | Director—Chairman of the Board | | |
March 5, 2018
|
|
|
/s/ Timothy C. Barabe
Timothy C. Barabe
|
| | Director | | |
March 5, 2018
|
|
|
/s/ Susan L. Kelley
Susan L. Kelley
|
| | Director | | |
March 5, 2018
|
|
|
/s/ Ronald M. Lindsay
Ronald M. Lindsay
|
| | Director | | |
March 5, 2018
|
|
|
/s/ Michael D. Loberg
Michael D. Loberg
|
| | Director | | |
March 5, 2018
|
|
|
/s/ William G. Messenger
William G. Messenger
|
| | Director | | |
March 5, 2018
|
|
|
/s/ Ran Nussbaum
Ran Nussbaum
|
| | Director | | |
March 5, 2018
|
|