- GPS Cancer Adoption by Oncologists Increased in Q4: 264 Oncologists
Ordered 1,286 GPS Commercial & Research Tests YTD, with 452 tests in
Q4, of which 326 Commercial and 126 Research
- First Consecutive 100 GPS Cancer Tests Completed at a Single
Academic Institution (Feb-Nov 2016) Demonstrating Significant
Increase in Identification of an FDA Approved Drug or Clinical
Trial for Patients with Refractory Cancer
- Expanded Adoption of GPS Cancer in Florida with Genomics
Laboratory Licensing by the State of Florida in Q4 with 138 tests
ordered in 2016
- GPS Cancer Payor Coverage: Total of Eight Payer Contracts with
Self-Employed and Payors Now Cover GPS Cancer; Potential Sales
Pipeline of GPS Cancer Payors Increased to 27 in Q4 from 18 in Q3
- International Association of Fire Fighters (IAFF) endorses GPS
Cancer as a benefit for approximately 310,000 IAFF employee
members and approximately 300,000 beneficiaries across the US and
Canada
- Pilot Trial with Horizon Blue Cross Blue Shield New Jersey for
GPS Cancer Initiated
- Discussions Underway with CMS for Both Potential Local Coverage
Determination (LCD) and National Coverage for GPS Cancer
- NantOS, Device Connect and NaviNet: Completed 39 Go Live Projects;
Number 2 Market Share in Connected Care with over 25,000 Device
Connects Licenses Sold to Date with 18 EMRs Integrated Across more
than 300 Provider Client Sites
- Increases NantOS and NaviNet contractual commitments from 35 in
Q3 to 96 in Q4
- Full Year 2016 Total Net Revenue Increased 72% to $100 Million
from $58 Million in 2015 With SaaS Revenue Increasing More Than
181%
Company Website:
http://www.nanthealth.com
CULVER CITY, Calif. -- (Business Wire)
NantHealth, Inc. (NASDAQ-GS: NH), a next-generation, evidence-based,
personalized healthcare company, today reported financial results for
its fourth quarter and full year ended December 31, 2016. The company
began operating as a publicly traded entity in June 2016 when it
launched GPS Cancer as a commercial product.
GPS Cancer – Highlights
- First Consecutive 100 GPS Cancer Tests (Feb-Nov 2016) Completed in
a Single Academic Institution Demonstrating Significant Increase
Identification of an FDA Approved Drug or Clinical Trial for Patients
with Refractory Cancer
- Number of covered cancer lives: at December 31, 2016, the
number of patients with cancer covered by a payer for GPS testing was
approximately 322,000 including lives anticipated upon completion of a
pilot project with Horizon Blue Cross Blue Shield
- Number of GPS Cancer payers: at December 31, 2016 the number of
payers covering GPS Cancer was eight. Discussions are in progress with
27 payers, which includes self-insured employers and insurers,
increasing from 18 in Q3
- Potential Local Coverage Determination (LCD) & Potential National
Coverage by CMS: Discussions are underway to potentially provide
both local coverage and national coverage with CMS and FDA regarding
GPS Cancer coverage by Medicare
- Number of GPS Cancer tests: 1,286 GPS Commercial & Research
Tests YTD with 452 ordered in Q4; 233 commercial tests delivered in
Q4, up from 154 in Q3. Number of Oncologists Ordering GPS Cancer
Increased to 264 in Q4 from 181 in Q3
- Expanded adoption of GPS Cancer in Florida with the new
Genomics Lab licensing agreement with the state
- The International Association of Fire Fighters (IAFF)
has endorsed GPS Cancer, as a valuable benefit that will be accessible
for approximately 310,000 IAFF members and 300,000 beneficiaries
across the US and Canada
- 87 GPS Cancer tests were ordered under an agreement with a
pediatric cancer research institution in California
“Our GPS Cancer Test continues to gain coverage in both the commercial
health insurance and self-employed payor markets, and we are seeking to
build adoption for GPS Cancer among oncologists through our ongoing
efforts to educate the medical community about the test’s value,” said
Patrick Soon-Shiong, M.D., Chief Executive Officer and Chairman of
NantHealth.
GPS Cancer has shown successful adoption in the research setting. Under
CLIA-CAP conditions, NantHealth’s partner NantOmics has completed the
analysis of thousands of patient samples with GPS demonstrating the
efficacy or resistance thresholds of chemotherapy and targeted therapy
agents in cancer treatment [Figure
1]. The significance of these validated findings is the
ability to better inform the practicing oncologist of the standard of
care which would most likely benefit the patient before treatment
begins. Over the last six months, a concerted educational process has
been undertaken to demonstrate the clinical utility of GPS Cancer for
patients receiving chemotherapy, hormonal therapy, targeted therapy and
monoclonal antibody therapy. GPS Cancer is the only comprehensive test
covering whole genome tumor/normal sequencing and also transcriptomics
and quantitative proteomics. By addressing proteomics at the specific
pathway level related to the mechanism of action of the therapeutics,
GPS Cancer has the potential to provide actionable information at the
point of care.
The unique proteomic profiling within the GPS Cancer test covers a
multitude of resistance and sensitivities biomarkers. For example, we
have tested 1,709 GPS samples for ERCC1 and that measuring this protein
expression can predict the response to platinum based chemotherapy. For
example, ERCC1 is found in patients with non-small cell lung cancer
(NSCLC). The GPS test can show the exact level of ERCC1 expression in
patients and identify those with resistance levels of 75 amol per
microgram or above. Research studies show that oxaliplatin, cisplatin,
and carboplatin resistance levels are found to be at 75 amol per
microgram in which 594 of the 1,709 samples were above the cutoff
showing resistance to the drug where it should not be given, helping the
patient avoid unnecessary side effects of the drug. Key references
showing how these cutoffs were established can be found in our clinical
evidence section of GPSCancer.com.
Potential Local Coverage Determination (LCD) and National Coverage
for GPS Cancer with CMS
NantHealth continues to make positive advances in discussions with CMS
(Centers for Medicare Medicaid Services) and representatives from the
MolDX Program for GPS Cancer. In March 2017, NantHealth presented at CMS
for both local and national determination on clinical experience with
GPS Cancer. The recent positive coverage determination by Palmetto GBA
for comprehensive genomic profiling in Non-Small Cell Lung Cancer
(NSCLC) is encouraging, and the company believes that the GPS Cancer
test can meet the eligibility requirements for payment once NantHealth
is in the position to submit claims under this LCD (Local Coverage
Determination #36143).
NantOS – Highlights
During the fourth quarter, the company:
-
Completed 19 go-live projects across NantOS and device connects
-
Completed 20 go-live projects, of which 19 were on NaviNet and one on
NaviNet Document Exchange
-
Increased, renewed or expanded contractual commitment to 96 current
clients from 35 at the end of Q3
Dr. Soon-Shiong added, “Our full year net revenue increased 72%, largely
due to growth in SaaS revenue of more than 181%. Our total bookings in
total contract value, which includes net new sales, renewals and product
expansions, were approximately $28 million in fourth quarter and $74
million for the year. Overall, we finished the year well ahead of plan
on this metric.”
Subsequent to the year end, the company exhibited its new suite of
oncology solutions and provided demos at the Interoperability Showcase
floor, during the HIMSS 2017 Annual Conference & Exhibition, which is
recognized as one of the premier healthcare industry conferences,
HIMSS17. Independent market research and opinion research company, Black
Book Research, awarded the company the honor of #1 in Personalized
Healthcare Solutions, Precision Medicine Tools and for achieving Highest
Client Satisfaction.
Financial Highlights
For the 2016 full year, total net revenue increased 72% to $100.4
million from $58.3 million in 2015. Gross profit rose 19% to $28.0
million from $23.5 million for 2015. Selling, general and administrative
(SG&A) expenses were $120.7 million compared with $69.0 million for the
prior year. Research and development (R&D) expenses increased to $61.6
million from $23.8 million last year. For the full year 2016, the
company recorded loss from related party equity method investment of
$41.0 million. This includes a $29.8 million impairment charge related
to the company’s investment in NantOmics, which was driven by the impact
of the delay in the sales growth of the GPS test compared with the
company’s expectations at the time of its investment in NantOmics. Net
loss for 2016 was $184.1 million, or $1.69 per share, compared with
$72.0 million, or $0.99 per share, for 2015. We expect to continue to
incur operating losses over the near term as we drive adoption of GPS
Cancer, expand our commercial operations, and invest further in
NantHealth solutions.
Financial results for 2016 included approximately $54.0 million in
non-cash, stock-based compensation expense, $41.0 million loss from
related party equity method investment, and $22.8 million of intangible
amortization, equal to $1.05 per share in total, offset by $23.3 million
net income tax benefit adjustments, equal to $0.21 per share. On a
non-GAAP basis, for 2016, adjusted net loss was $81.0 million, or $0.69
per share, compared with $53.6 million, or $0.54 per share, in the prior
year.
For the 2016 fourth quarter, total net revenue increased 18% to $24.1
million from $20.4 million in last year’s fourth quarter. Gross profit
was $4.3 million compared with $9.6 million, for the 2015 fourth
quarter. SG&A expenses were $21.3 million compared with $16.6 million
for the prior year fourth quarter. R&D expenses increased to $12.8
million from $7.2 million in the comparable quarter of last year. For
the fourth quarter of 2016, the company recorded loss from related party
equity method investment of $33.1 million, which includes the $29.8
million impairment charge mentioned above. Net loss for the 2016 fourth
quarter was $60.0 million, or $0.49 per share, compared with $17.9
million, or $0.35 per share, for the 2015 fourth quarter.
Financial results for the 2016 fourth quarter included approximately
$5.5 million of intangible amortization and $5.0 million in non-cash,
stock-based compensation expense, equal to $0.09 per share in total,
offset by $4.5 million net income tax benefit adjustment, equal to $0.04
per share. On a non-GAAP basis, for the 2016 fourth quarter, adjusted
net loss was $21.6 million, or $0.18 per share, compared with $10.9
million, or $0.10 per share, in the prior year.
In December 2016, we issued convertible notes to a related party and
others for net proceeds of $9.9 million and $92.8 million, respectively,
after deducting underwriting discounts and commissions and other
offering costs of $4.3 million.
Other Corporate Highlights
-
In December, together with NantKwest and NantOmics, we announced the
public availability of QUILT Programs (Quantum Immuno-oncology
Lifelong Trial), aimed to harness and orchestrate all elements of the
immune system through the testing of novel treatment combinations,
within the national clinical trials database, www.ClinicalTrials.gov.
QUILT utilizes GPS
Cancer - a unique, comprehensive set of tests integrating
quantitative proteomics, and whole genome (DNA) and transcriptome
(RNA) sequencing—to provide oncologists with a full molecular profile
of each patient’s cancer not only for an initial biopsy before the
trial begins, but throughout the trial process to fully understand how
each therapy impacts the patient’s tumor activity.
-
In December, we entered into an exclusive reseller agreement for GPS
Cancer advanced molecular analysis with Lunatus,
a company focused on linking international healthcare companies and
regional healthcare professionals in Arabian Gulf and Middle East
markets.
-
In November, we entered into an exclusive reseller agreement for GPS
Cancer tests with Sorgente,
the market leader in biobank, stem cell and now molecular profiling
testing in Italy.
Conference Call Information and Forward-Looking Statements
Later today, the company will host a conference call at 1:30 p.m. PT
(4:30 p.m. ET) to review its results of operations for the fourth
quarter and full year ended December 31, 2016. The conference call will
be available to interested parties by dialing 844-309-3709 from the U.S.
or Canada, or 281-962-4864 from international locations, passcode
92890709. The call will be broadcast via the Internet at www.nanthealth.com.
Listeners are encouraged to visit the website at least 10 minutes prior
to the start of the scheduled presentation to register, download and
install any necessary audio software. A playback of the call will be
archived and accessible on the same website for at least three months.
Discussion during the conference call may include forward-looking
statements regarding such topics as, but not limited to, the company’s
financial status and performance, regulatory and operational
developments, and any comments the company may make about its future
plans or prospects in response to questions from participants on the
conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures,
including adjusted net loss and adjusted net loss per share, which are
financial measures that are not prepared in conformity with United
States generally accepted accounting principles (U.S. GAAP). The
Company’s management believes that the presentation of Non-GAAP
financial measures provides useful supplementary information regarding
operational performance, because it enhances an investor’s overall
understanding of the financial results for the Company’s core business.
Additionally, it provides a basis for the comparison of the financial
results for the Company’s core business between current, past and future
periods. Other companies may define these measures in different ways.
Non-GAAP financial measures should be considered only as a supplement
to, and not as a substitute for or as a superior measure to, financial
measures prepared in accordance with U.S. GAAP. Non-GAAP per share
numbers are calculated based on one class of common stock and do not
incorporate the effects, if any, of using the two-class method.
About NantHealth, Inc.
NantHealth, Inc., a member of the NantWorks ecosystem of companies, is a
next-generation, evidence-based, personalized healthcare company
enabling improved patient outcomes and more effective treatment
decisions for critical illnesses. NantHealth's unique systems-based
approach to personalized healthcare applies novel diagnostics tailored
to the specific molecular profiles of patient tissues and integrates
this molecular data in a clinical setting with large-scale, real-time
biometric signal and phenotypic data to track patient outcomes and
deliver precision medicine. For nearly a decade, NantHealth has
developed an adaptive learning system, which includes its unique
software, middleware and hardware systems infrastructure that collects,
indexes, analyzes and interprets billions of molecular, clinical,
operational and financial data points derived from novel and traditional
sources, continuously improves decision-making and further optimizes our
clinical pathways and decision algorithms over time. For more
information please visit www.nanthealth.com.
About GPS Cancer™
GPS Cancer™ is a unique, comprehensive test available through
NantHealth. GPS Coverage
GPS Cancer integrates whole genome (DNA) sequencing, whole transcriptome
(RNA) sequencing, and quantitative proteomics through mass spectrometry,
providing oncologists with a comprehensive molecular profile of a
patient’s cancer to inform personalized treatment strategies. GPS Cancer
testing is conducted in CLIA-certified and CAP-accredited laboratories,
and is a key enabler for Cancer Breakthroughs 2020, the world’s most
comprehensive cancer collaborative initiative seeking to accelerate the
potential of combination immunotherapy as the next generation standard
of care in cancer patients. For more information, visit www.gpscancer.com and
www.cancerbreakthroughs2020.org.
This news release contains certain statements of a forward-looking
nature relating to future events or future business performance.Forward-looking
statements can be identified by the words “expects,” “anticipates,”
“believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and
similar expressions.Forward-looking statements in this news
release include, but are not limited to, statements about: our ability
to increase adoption of and the commercial success of GPS Cancer and our
other solutions; and our plans or ability to obtain reimbursement for
GPS Cancer, including third-party payors, such as commercial insurance
companies and health maintenance organizations, and government insurance
programs, such as Medicare and Medicaid. Risks and uncertainties
include, but are not limited to: our ability to successfully integrate a
complex learning system to address a wide range of healthcare issues;
our ability to successfully amass the requisite data to achieve maximum
network effects; appropriately allocating financial and human resources
across a broad array of product and service offerings; raising
additional capital as necessary to fund our operations; achieving
significant commercial market acceptance for our sequencing and
molecular analysis solutions; establish relationships with, key thought
leaders or payors’ key decision makers in order to establish GPS Cancer
as a standard of care for patients with cancer; our ability to grow the
market for our Systems Infrastructure, NantOS and NantOS apps;
successfully enhancing our Systems Infrastructure, NantOS or NantOS apps
to achieve market acceptance and keep pace with technological
developments; customer concentration; competition; security breaches;
bandwidth limitations; our ability to continue our relationship with
NantOmics; our ability to obtain regulatory approvals; dependence upon
senior management; the need to comply with and meet applicable laws and
regulations; and unexpected adverse events. Forward-looking statements
are based on management’s current plans, estimates, assumptions and
projections, and speak only as of the date they are made.We
undertake no obligation to update any forward-looking statement in light
of new information or future events, except as otherwise required by law.Forward-looking statements involve inherent risks and uncertainties,
most of which are difficult to predict and are generally beyond our
control.Actual results or outcomes may differ materially from
those implied by the forward-looking statements as a result of the
impact of a number of factors, many of which are discussed in more
detail in our reports filed with the Securities and Exchange Commission.
|
NantHealth, Inc. |
Consolidated and Combined Balance Sheets |
(Dollars in thousands, except per share amounts)
|
|
|
|
|
| December 31, |
| | | | 2016 |
|
|
| 2015 |
| | | | | | | |
|
Assets | | | | | | | | |
Current assets
| | | | | | | | |
Cash and cash equivalents
| | | |
$
|
160,353
| | | | |
$
|
5,989
| |
Marketable securities
| | | | |
-
| | | | | |
1,243
| |
Accounts receivable, net
| | | | |
13,728
| | | | | |
11,472
| |
Inventories
| | | | |
2,217
| | | | | |
2,146
| |
Deferred implementation costs
| | | | |
3,336
| | | | | |
2,224
| |
Related party receivables, net
| | | | |
899
| | | | | |
1,245
| |
Prepaid expenses and other current assets
| | | |
|
5,046
|
| | | |
|
8,707
|
|
Total current assets
| | | | |
185,579
| | | | | |
33,026
| |
Property, plant, and equipment, net
| | | | |
29,139
| | | | | |
13,899
| |
Deferred implementation costs, net of current
| | | | |
7,910
| | | | | |
1,930
| |
Goodwill
| | | | |
131,068
| | | | | |
56,718
| |
Intangible assets, net
| | | | |
119,126
| | | | | |
54,971
| |
Investment in related party
| | | | |
207,197
| | | | | |
248,191
| |
Related party receivable, net of current
| | | | |
1,971
| | | | | |
1,300
| |
Other assets
| | | |
|
2,317
|
| | | |
|
1,918
|
|
Total assets
| | | |
$
|
684,307
|
| | | |
$
|
411,953
|
|
| | | | | | | |
|
Liabilities and Stockholders' / Members' Equity | | | | | | | | |
Current liabilities
| | | | | | | | |
Accounts payable
| | | |
$
|
6,720
| | | | |
$
|
6,447
| |
Accrued expenses and other current liabilities
| | | | |
25,231
| | | | | |
15,967
| |
Deferred revenue
| | | | |
17,216
| | | | | |
10,656
| |
Related party payables, net
| | | |
|
8,082
|
| | | |
|
10,166
|
|
Total current liabilities
| | | | |
57,249
| | | | | |
43,236
| |
Deferred revenue, net of current
| | | | |
17,238
| | | | | |
17,312
| |
Related party liabilities
| | | | |
5,612
| | | | | |
-
| |
Related party promissory note
| | | | |
112,666
| | | | | |
-
| |
Related party convertible note, net
| | | | |
7,564
| | | | | |
-
| |
Convertible notes, net
| | | | |
70,810
| | | | | |
-
| |
Other liabilities
| | | |
|
1,574
|
| | | |
|
358
|
|
Total liabilities
| | | |
|
272,713
|
| | | |
|
60,906
|
|
| | | | | | | |
|
Redeemable Series F units: 53,580,996 units issued and outstanding
at December 31, 2015
| | | | |
-
| | | | | |
166,042
| |
| | | | | | | |
|
Stockholders' / members' equity
| | | | | | | | |
Members' equity, 541,228,171 units issued and outstanding at
December 31, 2015
| | | | |
-
| | | | | |
476,263
| |
Common stock, $0.0001 par value per share, 750,000,000 shares
authorized; 121,250,437 shares issued and outstanding at December
31, 2016 (Including 6,976 restricted stock)
| | | | |
12
| | | | | |
-
| |
Preferred stock, $0.0001 par value per share, 20,000,000 shares
authorized; no shares issued and outstanding at December 31, 2016
| | | | |
-
| | | | | |
-
| |
Additional paid-in capital
| | | | |
886,334
| | | | | |
-
| |
Accumulated deficit
| | | | |
(475,273
|
)
| | | | |
(291,171
|
)
|
Accumulated other comprehensive income (loss)
| | | |
|
521
|
| | | |
|
(87
|
)
|
Total stockholders' / members' equity
| | | |
|
411,594
|
| | | |
|
185,005
|
|
Total liabilities and stockholders' / members' equity
| | | |
$
|
684,307
|
| | | |
$
|
411,953
|
|
| | | | | | | | | | | |
|
|
NantHealth, Inc. |
Consolidated and Combined Statements of Operations |
(Dollars in thousands, except per share amounts)
|
|
|
|
|
| Three Months Ended |
|
|
| Year Ended |
| | | | December 31, | | | | December 31, |
| | | | 2016 |
|
|
| 2015 | | | | 2016 |
|
|
| 2015 |
| | | | (Unaudited) | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Total Net Revenue | | | |
$
|
24,082
| | | | |
$
|
20,405
| | | | |
$
|
100,380
| | | | |
$
|
58,304
| |
| | | | | | | | | | | | | | | |
|
Total Cost of Revenue | | | |
|
19,820
|
| | | |
|
10,853
|
| | | |
|
72,334
|
| | | |
|
34,809
|
|
Gross profit
| | | |
|
4,262
|
| | | |
|
9,552
|
| | | |
|
28,046
|
| | | |
|
23,495
|
|
| | | | | | | | | | | | | | | |
|
Operating Expenses: | | | | | | | | | | | | | | | | |
Selling, general and administrative
| | | | |
21,317
| | | | | |
16,635
| | | | | |
120,653
| | | | | |
69,021
| |
Research and development
| | | | |
12,766
| | | | | |
7,158
| | | | | |
61,637
| | | | | |
23,835
| |
Amortization of software license and acquisition-related assets
| | | |
|
1,815
|
| | | |
|
760
|
| | | |
|
7,257
|
| | | |
|
1,542
|
|
Total operating expenses
| | | |
|
35,898
|
| | | |
|
24,553
|
| | | |
|
189,547
|
| | | |
|
94,398
|
|
Loss from operations
| | | | |
(31,636
|
)
| | | | |
(15,001
|
)
| | | | |
(161,501
|
)
| | | | |
(70,903
|
)
|
Interest expense, net
| | | | |
(1,669
|
)
| | | | |
-
| | | | | |
(6,340
|
)
| | | | |
(627
|
)
|
Other income (expense), net
| | | | |
1,997
| | | | | |
(9
|
)
| | | | |
1,922
| | | | | |
2,508
| |
Loss from related party equity method investment
| | | |
|
(33,101
|
)
| | | |
|
(2,439
|
)
| | | |
|
(40,994
|
)
| | | |
|
(2,584
|
)
|
Loss before income taxes
| | | | |
(64,409
|
)
| | | | |
(17,449
|
)
| | | | |
(206,913
|
)
| | | | |
(71,606
|
)
|
Provision for (benefit from) income taxes
| | | |
|
(4,458
|
)
| | | |
|
403
|
| | | |
|
(22,811
|
)
| | | |
|
405
|
|
Net loss
| | | |
$
|
(59,951
|
)
| | | |
$
|
(17,852
|
)
| | | |
$
|
(184,102
|
)
| | | |
$
|
(72,011
|
)
|
| | | | | | | | | | | | | | | |
|
Net income (loss) per share (1): | | | | | | | | | | | | | | | | |
Basic & diluted - common stock (2)
| | | |
$
|
(0.49
|
)
| | | |
$
|
(0.35
|
)
| | | |
$
|
(1.69
|
)
| | | |
$
|
(0.99
|
)
|
Basic & diluted - redeemable common stock
| | | |
|
N/A
|
| | | |
$
|
1.50
|
| | | |
$
|
0.99
|
| | | |
$
|
1.50
|
|
| | | | | | | | | | | | | | | |
|
Weighted average shares outstanding (1): | | | | | | | | | | | | | | | | |
Basic & diluted - common stock
| | | |
|
121,242,627
|
| | | |
|
95,900,612
|
| | | |
|
111,600,650
|
| | | |
|
88,970,842
|
|
Basic & diluted - redeemable common stock
| | | |
|
N/A
|
| | | |
|
10,714,285
|
| | | |
|
5,005,855
|
| | | |
|
10,714,285
|
|
| | | | | | | | | | | | | | | |
|
|
|
| Footnote: |
1)
| | |
The net income (loss) per share and weighted-average shares
outstanding have been computed to give effect to the LLC Conversion
that occurred on June 1, 2016, prior to the Company’s initial public
offering ("IPO"). In conjunction with the LLC Conversion, (a) all of
the Company’s outstanding units automatically converted into shares
of common stock, based on the relative rights of the Company's
pre-IPO equityholders as set forth in the Company's limited
liability company agreement and (b) the Company adopted and filed a
certificate of incorporation with the Secretary of State of the
state of Delaware and adopted bylaws. The Company adopted and filed
an amendment to its certificate of incorporation with the Secretary
of State of the state of Delaware to effect a 1-for-5.5 reverse
stock split of its common stock on June 1, 2016.
|
| | |
|
2)
| | |
The net income (loss) per share for the common stock for the years
ended December 31, 2016 and 2015 reflects $4,958 and $16,042 in
accretion value allocated to the redeemable common stock,
respectively. The redeemable common stock contained a put right,
which expired unexercised on June 20, 2016. As a result of and as of
that date, the shares were no longer redeemable and were included in
common stock.
|
| | |
|
|
NantHealth, Inc. |
Supplemental Revenue Schedule |
(Dollars in thousands)
|
|
|
|
|
| Three Months Ended |
|
|
| Year Ended |
| | | | December 31, | | | | December 31, |
| | | | 2016 |
|
|
| 2015 | | | | 2016 |
|
|
| 2015 |
| | | | (Unaudited) | | | | | | | | |
Revenue: | | | | | | | | | | | | | | | | |
Software and hardware
| | | |
$
|
1,028
| | | |
$
|
2,420
| | | |
$
|
8,242
| | | |
$
|
14,616
|
Software–as-a-service
| | | |
|
14,874
| | | |
|
9,373
| | | |
|
58,359
| | | |
|
20,734
|
Total software-related revenue
| | | | |
15,902
| | | | |
11,793
| | | | |
66,601
| | | | |
35,350
|
Maintenance
| | | | |
3,384
| | | | |
2,515
| | | | |
14,238
| | | | |
10,452
|
Sequencing and molecular analysis
| | | | |
482
| | | | |
-
| | | | |
604
| | | | |
75
|
Other services
| | | |
|
4,314
| | | |
|
6,097
| | | |
|
18,937
| | | |
|
12,427
|
Total net revenue
| | | |
$
|
24,082
| | | |
$
|
20,405
| | | |
$
|
100,380
| | | |
$
|
58,304
|
| | | | | | | | | | | | | | | |
|
Cost of Revenue: | | | | | | | | | | | | | | | | |
Software and hardware
| | | |
$
|
396
| | | |
$
|
387
| | | |
$
|
1,834
| | | |
$
|
90
|
Software-as-a-service
| | | |
|
6,046
| | | |
|
1,559
| | | |
|
24,713
| | | |
|
7,019
|
Total software-related cost of revenue
| | | | |
6,442
| | | | |
1,946
| | | | |
26,547
| | | | |
7,109
|
Maintenance
| | | | |
775
| | | | |
968
| | | | |
2,750
| | | | |
1,874
|
Sequencing and molecular analysis
| | | | |
1,058
| | | | |
-
| | | | |
1,987
| | | | |
39
|
Other services
| | | | |
7,841
| | | | |
4,800
| | | | |
25,462
| | | | |
15,202
|
Amortization of developed technologies
| | | |
|
3,704
| | | |
|
3,139
| | | |
|
15,588
| | | |
|
10,585
|
Total cost of revenue
| | | |
$
|
19,820
| | | |
$
|
10,853
| | | |
$
|
72,334
| | | |
$
|
34,809
|
| | | | | | | | | | | | | | | |
|
|
NantHealth, Inc. |
Reconciliation of GAAP Reported to Non-GAAP Adjusted Information |
(Dollars in thousands, except per share amounts)
|
|
|
|
|
| Three Months Ended |
|
|
| Year Ended |
| | | | December 31, | | | | December 31, |
| | | | 2016 |
|
|
| 2015 | | | | 2016 |
|
|
| 2015 |
| | | | (Unaudited) | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Net loss
| | | |
$
|
(59,951
|
)
| | | |
$
|
(17,852
|
)
| | | |
$
|
(184,102
|
)
| | | |
$
|
(72,011
|
)
|
Adjustments to GAAP net loss:
| | | | | | | | | | | | | | | | |
Loss from related party equity method investment
| | | | |
33,101
| | | | | |
2,439
| | | | | |
40,994
| | | | | |
2,584
| |
Stock-based compensation expense
| | | | |
4,970
| | | | | |
79
| | | | | |
53,952
| | | | | |
1,429
| |
Corporate restructuring
| | | | |
248
| | | | | |
141
| | | | | |
2,794
| | | | | |
1,905
| |
BP settlement
| | | | |
(842
|
)
| | | | |
-
| | | | | |
(842
|
)
| | | | |
-
| |
Acquisition related compensation expense
| | | | |
-
| | | | | |
-
| | | | | |
4,814
| | | | | |
-
| |
Sales incentive
| | | | |
939
| | | | | |
-
| | | | | |
2,966
| | | | | |
-
| |
Change in fair value of derivatives liability
| | | | |
(1,228
|
)
| | | | |
-
| | | | | |
(1,228
|
)
| | | | |
-
| |
Non-cash interest expense related to convertible notes
| | | | |
108
| | | | | |
-
| | | | | |
108
| | | | | |
-
| |
Intangible amortization
| | | | |
5,519
| | | | | |
3,899
| | | | | |
22,845
| | | | | |
12,127
| |
Provision for (benefit from) income taxes
| | | |
|
(4,509
|
)
| |
| |
|
403
|
| | | |
|
(23,260
|
)
| | | |
|
403
|
|
Total adjustments to GAAP net loss
| | | |
|
38,306
|
| | | |
|
6,961
|
| | | |
|
103,143
|
| | | |
|
18,448
|
|
Net loss - Non-GAAP
| | | |
$
|
(21,645
|
)
| | | |
$
|
(10,891
|
)
| | | |
$
|
(80,959
|
)
| | | |
$
|
(53,563
|
)
|
| | | | | | | | | | | | | | | |
|
Shares outstanding
| | | | |
121,242,627
| | | | | |
95,900,612
| | | | | |
111,600,650
| | | | | |
88,970,842
| |
Series F/redeemable common stock
| | | |
|
-
|
| | | |
|
10,714,285
|
| | | |
|
5,005,855
|
| | | |
|
10,714,285
|
|
Shares outstanding - Non-GAAP
| | | |
|
121,242,627
|
| | | |
|
106,614,897
|
| | | |
|
116,606,505
|
| | | |
|
99,685,127
|
|
| | | | | | | | | | | | | | | |
|
Net loss per share - Non-GAAP | | | | $ | (0.18 | ) | | | | $ | (0.10 | ) | | | | $ | (0.69 | ) | | | | $ | (0.54 | ) |
| | | | | | | | | | | | | | | |
|
Reconciliation of Net Loss per Common Share to Non-GAAP Net Loss
per Common Share: | | | | |
Net loss per common share - GAAP
| | | |
$
|
(0.49
|
)
| | | |
$
|
(0.35
|
)
| | | |
$
|
(1.69
|
)
| | | |
$
|
(0.99
|
)
|
Adjustments to GAAP net loss per common share
| | | | | | | | | | | | | | | | |
Loss from related party equity method investment
| | | | |
0.27
| | | | | |
0.03
| | | | | |
0.37
| | | | | |
0.03
| |
Stock-based compensation expense
| | | | |
0.04
| | | | | |
-
| | | | | |
0.48
| | | | | |
0.02
| |
Corporate restructuring
| | | | |
-
| | | | | |
-
| | | | | |
0.03
| | | | | |
0.02
| |
BP settlement
| | | | |
(0.01
|
)
| | | | |
-
| | | | | |
(0.01
|
)
| | | | |
-
| |
Acquisition related compensation expense
| | | | |
-
| | | | | |
-
| | | | | |
0.04
| | | | | |
-
| |
Sales incentive
| | | | |
0.01
| | | | | |
-
| | | | | |
0.03
| | | | | |
-
| |
Change in fair value of derivatives liability
| | | | |
(0.01
|
)
| | | | |
-
| | | | | |
(0.01
|
)
| | | | |
-
| |
Non-cash interest expense related to convertible notes
| | | | |
-
| | | | | |
-
| | | | | |
-
| | | | | |
-
| |
Intangible amortization
| | | | |
0.05
| | | | | |
0.04
| | | | | |
0.20
| | | | | |
0.14
| |
Provision for (benefit from) income taxes
| | | | |
(0.04
|
)
| | | | |
-
| | | | | |
(0.21
|
)
| | | | |
-
| |
Accretion to redemption value of Series F/redeemable common stock
| | | | |
-
| | | | | |
0.17
| | | | | |
0.04
| | | | | |
0.18
| |
Dilution from Series F/redeemable common stock
| | | |
|
-
|
| | | |
|
0.01
|
| | | |
|
0.04
|
| | | |
|
0.06
|
|
Total adjustments to GAAP net loss per common share
| | | |
|
0.31
|
| | | |
|
0.25
|
| | | |
|
1.00
|
| | | |
|
0.45
|
|
| | | | | | | | | | | | | | | |
|
Net loss per share - Non-GAAP | | | | $ | (0.18 | ) | | | | $ | (0.10 | ) | | | | $ | (0.69 | ) | | | | $ | (0.54 | ) |
| | | | | | | | | | | | | | | |
|
1)
|
|
|
The net loss per share - non-GAAP, weighted-average shares
outstanding, weighted average Series F units/redeemable stock and
shares outstanding - non-GAAP, have been computed to give effect to
the LLC conversion that occurred June 1, 2016 prior to our initial
public offering. In conjunction with the LLC Conversion, (a) all of
our outstanding units automatically converted into shares of common
stock, based on the relative rights of our pre-IPO equityholders as
set forth in the limited liability company agreement and (b) we
adopted and filed a certificate of incorporation with the Secretary
of State of the state of Delaware and adopted bylaws. We filed an
amended certificate of incorporation to effect a 1-for-5.5 reverse
stock split of our common stock on June 1, 2016.
|
| | |
|
2)
| | |
The weighted-average shares outstanding have been further adjusted
to account for the redeemable Series F units (converted to common
stock in conjunction with the LLC conversion), whose Put Right
expired on June 20, 2016. Prior to June 20, 2016, these units/shares
of common stock were classified as redeemable members’/stockholders’
equity in the balance sheet, and as such, were not included in the
weighted-average shares outstanding prior to June 20, 2016. The Put
Right expired June 20, 2016, and the shares were no longer
redeemable and are included in shareholders’ equity as of December
31, 2016. The weighted-average shares are adjusted to include the
redeemable common stock in the weighted-average shares outstanding
for the entire period.
|
| | |
|
3)
| | |
Net loss - Non-GAAP excludes, among others, the effects of (1) loss
from related party equity method investment, (2) stock based
compensation expense, (3) intangible amortization, (4) corporate
restructuring expenses, (5) acquisition related compensation
expense, (6) BP settlement other income, (7) acquisition-related
sales incentives, which have been recorded as contra revenue, (8)
change in fair value of derivatives liability and (9) non-cash
interest expense related to convertible notes. Provision for
(benefit from) income taxes impact of the conversion from a limited
liability corporation to a corporation, the impact of convertible
notes offering and the impact of intangibles amortization. Adjusted
shares outstanding include Series F redeemable shares as if
converted to common shares on January 1, 2015.
|
| | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170330006213/en/
Contacts:
NantHealth, Inc.
Investor Contact:
Robert Jaffe
424.288.4098
rjaffe@rjaffeco.com
Source: NantHealth, Inc.
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