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YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2 (the “Exchange Ratio”), after taking into account the Reverse Stock Split. Pursuant to the Merger Agreement, Aerpio assumed all of the outstanding and unexercised options to purchase shares of Pri...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. all shares of preferred stock and convertible promissory notes outstanding immediately prior to the Effective Time. The Merger has been accounted for using the reverse asset acquisition method unde...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of the Merger Agreement and other factors including: (i) following the Merger, the stockholders of Private Aadi collectively owned a substantial portion of the voting rights of the Company; (ii) thr...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of individuals and funds, and for purpose of this analysis, as of immediately following the Merger (and after giving effect to the 2021 PIPE Financing), no one individual or fund held more shares th...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , substantially all of the fair value is concentrated in cash, working capital and a 126 Table of Contents long-lived contract intangible asset. As such, the acquisition was treated as an asset ac...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. dated as of August 26, 2021 (the “CVR Agreement”), with a legacy director of the Company, as Holder Representative (as defined in the CVR Agreement), and American Stock Transfer & Trust Company, LLC...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. R completed during a CVR Payment Period, which means successive six-month periods, prior to the expiration of the CVR Term (as defined in the CVR Agreement), with any potential payment obligations co...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ’s GB004 product candidate, a legacy product candidate of the Company's predecessor, Aerpio, after Gossamer announced that its Phase 2 SHIFT-UC clinical trial studying GB004 in patients with mild-to-...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ited without any consideration or payment, in each case effective July 24, 2022. 2021 Private Investment in Public Equity (PIPE) Financing and Subscription Agreement On May 16, 2021, the Company en...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. were $145.4 million, after deducting certain expenses incurred that were direct and incremental to the issuance of the 2021 PIPE Shares. At the closing of the 2021 PIPE Financing, the Company entere...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. (ii) Aerpio’s stockholders immediately prior to the Merger, whose shares of common stock, as adjusted for the Reverse Stock Split, remain outstanding after the Merger, owned approximately 15.2% of t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Financing”). Upon the closing of the 2022 PIPE Financing on September 26, 2022, the Company sold (i) 3,373,526 shares of its common stock at a purchase price of $12.50 per share, and (ii) 2,426,493 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. together with its affiliates, would beneficially own more than 4.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to such exercise; provided, tha...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the registration for resale of the securities sold under the Purchase Agreement, including the shares issuable upon the exercise of the Pre-Funded Warrants, that are not then registered on an effect...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. has only recently begun to realize revenues from its planned principal operations commencing with the commercial sale of FYARRO. Aadi Bioscience, Inc. has experienced net losses since its inception...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. .6 million at December 31, 2022. Management believes the Company’s current cash, cash equivalents and short-term investments will provide sufficient funds to enable the Company to meet its obligatio...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Company may offer and sell, from time to time at the Company’s sole discretion, shares of its common stock having an aggregate offering price of up to $75.0 million through Cowen as its sales ag...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). A...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 5 million shares of common stock of the Company based on the Exchange Ratio. The authorized number of shares of common stock was not reduced and remains at 300.0 million. The par value of the Company...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and per share amounts have also been adjusted to reflect the Exchange Ratio. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other ev...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. apeutics. All the assets and operations of the Company’s sole operating and reportable segment are located in the United States. Use of Estimates The preparation of financial statements in conformi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions. Concentrat ion of Credit Risk Financial instruments, which...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , exposed the Company to credit risk prior to the resolution by the Federal Deposit Insurance Corporation in a manner that fully protected all depositors. Aadi Bioscience, Inc. has not experienced an...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 's revenue for the year ended December 31, 2022 was from two companies at 58% and 41% of the Company’s revenue, respectively. Additionally, one customer accounted for 100% of the net accounts rece...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of the Company's office leases described in Note 8, and is included in other assets on the consolidated balance sheet. The following table provides a reconciliation of cash, cash equivalents and res...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. value recorded in the statements of operations. As of December 31, 2022 and 2021, there were no convertible notes outstanding as they were converted to shares of Private Aadi common stock immediatel...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of fair value assets and liabilities and their placement within the fair value hierarchy levels. In determining the fair value of its financial instruments, the Company considers the source of obse...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. including United States government and commercial paper and corporate debt securities. Aadi Bioscience, Inc. classifies its investments as available-for-sale and records them at fair value based upo...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. determine whether the unrealized loss is other-than-temporary. When the Company determines that a decline in the fair value below its cost basis is other-than-temporary, the Company recognizes an im...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 2, $0.1 million of customer allowances for chargebacks was recorded. No allowances were recorded as of December 31, 2021. No receivables were written off for the years ended December 31, 2022 and 202...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and development expense in the period incurred, therefore the inventory balance was zero at December 31, 2021. Details of inventory are presented as follows (amounts in thousands). As of December ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. thousands). As of December 31, 2022 2021 Computers and software 338 51 Construction in process 77 Furniture and fixtures 65 36 Leasehold improvements 129 Total 609 87 Accumulated de...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of $3.9 million at the Effective Time. During the year ended December 31, 2022, the intangible asset's fair value was reduced to zero based on the termination of the Gossamer License Agreement effec...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the carrying value of the impaired asset over its respective fair value. An impairment was recorded for the long-lived 131 Table of Contents intangible asset during the year ended December 31, 20...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. credit-adjusted secured borrowing rate commensurate with the term of the lease. Aadi Bioscience, Inc. does not recognize assets or liabilities for leases with lease terms of less than 12 months. Aa...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. of the lease term, or (v) if the underlying asset is of such a specialized nature that it is expected to have no alternative uses to the lessor at the end of the term. Leases that do not meet the fi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Company’s leases do not typically provide an implicit rate, the Company utilizes the appropriate incremental borrowing rate, determined as the rate of interest that the Company would have to pay...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. to the space leased by the Company. Aadi Bioscience, Inc. has elected the practical expedient to not separate between lease and non-lease components. Commitments and Contingencies Aadi Bioscience,...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine rev...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or s...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. control of the product. Product sales are recorded at the net sales price, which includes provisions for the 132 Table of Contents following allowances which are reflected either as a reduction t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. participant and are based upon contractual agreements or statutory requirements. The allowance for rebates is based on contracted or statutory discount rates and expected utilization by benefit plan...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. The SDs and SP charge back to the Company the difference between the price initially paid by the SDs and SP and the discounted price paid to the SDs and SP by these entities. If actual future charge...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. assumptions being applied are updated and adjustment for prior period accruals will be adjusted in the current period. Product Returns: Consistent with industry practice, the Company offers the SD...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry. ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. agencies providing grants to the Company are not customers. Grant revenue is recognized when there is reasonable assurance of compliance with the conditions of the grant and reasonable assurance tha...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. expense in the accompanying statements of operations and comprehensive loss. 133 Table of Contents Revenue Under License Agreement Aadi Bioscience, Inc. generates revenues from payments received...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the contract; and (v) recognizes revenue when (or as) the Company satisfies the performance obligations. For revenue from such license agreement, the Company generally collects an upfront license p...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the estimate of the overall transaction price. Because such agreements generally only have one type of performance obligation, a license, which is generally all transferred at the same time as agre...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. contract manufacturing activities, to research and development expense as incurred. Aadi Bioscience, Inc. is required to estimate the amount of services provided but not yet invoiced and include the...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Company’s share-based awards, to employees, non-employees, officers, and directors, are subject only to service-based vesting conditions. Aadi Bioscience, Inc. estimates the fair value of its sh...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. expected volatility on the historical volatility of a group of similar companies that are publicly traded. The computation of expected volatility is based on the historical volatility of a represent...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. estimate the expected term for options granted to employees, and utilizes the contractual term for options granted to non-employees. The expected term is applied to the stock option grant group as a...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. under the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”) is recorded at the estimated fair value of the purchase as of the plan enrollment date and is recognized as expense on a strai...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if, based upon t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. to Common Stockholders Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. dilutive. Aadi Bioscience, Inc.’s potentially dilutive securities, which include convertible promissory notes, convertible preferred stock, outstanding stock options and warrants have been excluded ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , 2022 2021 Options to purchase common stock 2,990,423 1,749,876 Warrants to purchase common stock 29,167 36,667 The table above excludes the conversion of the principal balance and accrued ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 40). This new guidance is intended to reduce the complexity of accounting for convertible instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earning...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model which will be based on an estim...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. ’s financial assets and liabilities, allocated into the Level 1, Level 2 and Level 3 hierarchy that were measured at fair value on a recurring basis (amounts in thousands): Fair Value Measurements a...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Level 1 Level 2 Level 3 Total Assets: Money market funds (1) 140,032 140,032 (1) Included in cash and cash equivalents in the accompanying balance sheets. As of December 31, 2022 gross ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. $3.9 million at the Effective Time. This represented a Level 3 fair value measurement as factors used to develop the estimated fair value are unobservable inputs that are not supported by market act...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and are stated at fair value. The following table summarizes the Company's short-term investments (in thousands): Maturity (In Years) Amortized Cost Unrealized Gains Unrealized Losses ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. The Merger was accounted for as a reverse asset acquisition because substantially all of the fair value was concentrated in cash, working capital, and a long-lived contract intangible asset (See Not...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 4,500,864 Purchase price 110,388,558 The allocation of the purchase price is as follows (amounts in thousands): August 26, 2021 Cash and cash equivalents 29,700 Other current assets 2,709 ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. and the licensing agreement was terminated. See Note 6 for additional information. 6. Intangible Asset Aadi Bioscience, Inc. recorded a long-lived contract intangible asset as a result of the Merg...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the Effective Time, the Company recognized an impairment of $74.2 million to bring the carrying amount of the contract intangible asset down to its estimated fair value of $3.9 million. The fair val...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. predecessor, 137 Table of Contents Aerpio, after Gossamer announced that its Phase 2 SHIFT-UC clinical trial studying GB004 in patients with mild-to-moderate active ulcerative colitis did not mee...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 31, 2022 and 2021, respectively. The following table presents a roll forward of the finite-lived intangible asset for the years ended December 31, (amounts in thousands): Year Ended December 31, ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 5,463 1,465 Accrued clinical 2,399 2,507 Accrued professional fees 1,814 1,948 Advanced customer payments 1,571 Accrued salaries and payroll 1,299 152 Accrued contract manufacturing 405...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 9, included four months of rent abatement and a rent escalation clause and was set to expire on August 31, 2021. In August 2021, the Company exercised its option to extend the term of the Pacific Pal...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. Amendment were nine months of rent abatement and a rent escalation clause. In April 2022, the Company entered into a lease agreement for office space in Morristown, New Jersey (the “Morristown Leas...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. 1,522 557 Liabilities: Operating lease liabilities, current 394 131 Operating lease liabilities, non-current 1,267 474 Total operating lease liabilities 1,661 605 Rent expense for the y...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. , 2022, are summarized below (amounts in thousands): Future Minimum Lease Payments: 2023 500 2024 512 2025 320 2026 231 2027 280 Thereafter 110 Total minimum lease payments 1,953 Less...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. a license agreement (as amended the “BMS License Agreement”) with Bristol-Myers Squibb Company (“BMS”) for exclusive rights for certain patents and a non-exclusive license for certain technology and...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. is entitled to receive certain development milestone payments, royalties on net sales from licensed products under the agreement and any sublicense fees. During the year ended December 31, 2022, roy...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. $5.8 million representing 50% of the previously outstanding payment obligation under the terms of the BMS License Agreement, following the Effective Time of the 2021 PIPE Financing. Pursuant to the ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. amend the royalty rates payable to BMS based on net sales of products subject to the BMS License Agreement. On December 8, 2020, the Company entered into a license agreement (“EOC License Agreement...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. MS. As such, the Company recognized $2.8 million of license expense in the year ended December 31, 2021 and had a corresponding $2.8 million sublicense payable to BMS on the balance sheet as of Decem...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. December 31, 2021, which was paid in 2022. EOC License Agreement In December 2021, the Company entered into the EOC License Agreement with EOC for the further development of ABI-009, now called FY...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. breaches by the Company under such agreement. Aadi Bioscience, Inc. disagrees with EOC’s allegations of material breach and does not believe that EOC had a right to terminate the EOC License Agreeme...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. agreement. On June 27, 2022, EOC filed a Request for Arbitration with the International Chamber of Commerce’s International Court of Arbitration against the Company. The arbitration process is ongoi...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. payments under the EOC License Agreement were considered variable consideration and were constrained with respect to revenue recognition notification from EOC that the milestone and royalty payments...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. into an amendment to the Convertible Notes, whereby the term was extended from one year to two years. The amendment was accounted for as a debt modification. In May 2021, Private Aadi entered into ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the outstanding Convertible Notes were converted into shares of Private Aadi common stock which were concurrently exchanged for 698,018 shares of the Company’s common stock based on the Exchange Rat...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. covered period as long as the loan proceeds were used for eligible expenses, including payroll, benefits, rent and utilities, and the company maintains certain payroll levels. The amount of loan for...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. forgiveness of the PPP Loan totaling $0.2 million. 12. Stockholders' Equity (Deficit) Preferred Stock As of December 31, 2022 and 2021, under the Company’s certificate of incorporation, as amende...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. based on the Exchange Ratio in connection with the closing of the Merger. Series A Preferred Stock 141 Table of Contents Common Stock and Pre-Funded Warrants As of December 31, 2022 and 2021, t...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. adi common stock in exchange for all of the Private Aadi capital stock outstanding immediately prior to the closing of the Merger. Concurrently with the closing of the Merger, the 2021 PIPE Investors...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. which the Company may offer and sell, from time to time at its sole discretion, shares of common stock having aggregate gross proceeds of up to $75.0 million through Cowen as its sales agent . As o...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. price of $12.4999 per Pre-Funded Warrant. The Pre-Funded Warrants are exercisable at an exercise price of $0.0001 and will be exercisable until exercised in full. The 2022 PIPE Financing closed on ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. registration statement, pursuant to a registration statement filed with the SEC. The Pre-Funded Warrants meet the criteria to be classified within stockholders’ equity. As of December 31, 2022, all ...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. are entitled to one vote for each share of common stock held at all meetings of stockholders and written actions in lieu of meetings. 13. Share-Based Compensation 2014 Plan (as amended and restate...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. In connection with the closing of the Merger and the adoption of the 2021 Plan (as defined below), no further awards will be issued under the Private Aadi Plan. The options that are granted from th...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. the “Prior 142 Table of Contents Plans”). No new awards will be granted under the Prior Plans effective as of the closing of the Merger and adoption of the 2021 Plan (as defined below). 2021 Pla...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. for issuance pursuant to the 2021 Plan. In addition, the shares reserved for issuance under the 2021 Plan include any shares of common stock (i) subject to awards of stock options or other awards gr...
YOU are a financial analyst. You are reading a report of a company. The report is about the company's financial status. increase, or the evergreen feature, on the first day of each of the Company’s fiscal years, beginning with the Company’s fiscal year 2022, equal to the least of: 2,070,784 shares of common stock; ...