AFFY Affymax Inc (CE)

Affymax, Inc. (OTCQB:AFFY) today reported financial results for the second quarter ending June 30, 2014. The net income for the second quarter of 2014 was $7.2 million (or $0.19 per share) compared to net income of $15.4 million (or $0.41 per share) for the second quarter of 2013.

Net income for the quarter resulted from receipt of written notice of termination of the Collaboration and License Agreement from Takeda on June 10, 2014. As a result of termination of the agreement the Company has been relieved of the entire balance of the launch loan due Takeda of $8.2 million. The liability was derecognized and recorded as a credit to other income on the Condensed Statement of Comprehensive Income (Loss). The income had previously been recognized for tax purposes and no tax liability will result as the company will still be in a loss position for 2014.

     

AFFYMAX, INC.

CONDENSED BALANCE SHEETS (in thousands, except share data)   June 30, December 31, 2014 2013 (unaudited) Assets Current assets Cash $ 3,399 $ 5,597 Prepaid expenses 1,055   725   Total current assets 4,454 6,322 Other assets 930   1,121   Total assets $ 5,384   $ 7,443   Liabilities and Stockholders’ Equity (Deficit) Current liabilities Accounts payable $ 80 $ 101 Accrued restructuring 65 315 Other accrued liabilities 69 266 Advance from Takeda —   8,189   Total current liabilities 214   8,871     Stockholders’ equity (deficit) Common stock: $0.001 par value, 100,000,000 shares authorized, 37,490,095 shares issued and outstanding 37 37 Additional paid-in capital 557,453 556,672 Accumulated deficit (552,320 ) (558,137 ) Total stockholders’ equity (deficit) 5,170   (1,428 ) Total liabilities and stockholders’ equity (deficit) $ 5,384   $ 7,443       AFFYMAX, INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, except per share data) (Unaudited)    

Three Months EndedJune 30,

    Six Months EndedJune 30, 2014     2013   2014     2013   Revenue: Collaboration revenue $ — $ 525 $ — $ 1,364 License and royalty revenue 42   —   42   5   Total revenue 42   525   42   1,369   Operating expenses: Research and development — 2,235 — 12,024 Selling, general and administrative 1,066 528 2,559 25,173 Collaboration cost reimbursement — (23,073 ) — (43,451 ) Impairment (gain on disposal) of prepaid expenses, fixed assets and intangible assets — (560 ) — 4,580 Restructuring charge (71 ) 7,124   (172 ) 15,340   Total operating expenses 995   (13,746 ) 2,387   13,666   Income (loss) from operations (953 ) 14,271 (2,345 ) (12,297 ) Interest income — 6 — 21 Interest expense — (1,073 ) — (1,565 ) Other income, net 8,162   10   8,162   10   Income (loss) before provision (benefit) for income taxes 7,209 13,214 5,817 (13,831 ) (Benefit) for income taxes —   (2,158 ) —   (2,158 )   Net income (loss) and comprehensive income (loss) $7,209   $ 15,372   $5,817   $(11,673 ) Net income (loss) per share:

Basic

$ 0.19 $ 0.41 $ 0.16 $ (0.31 ) Diluted $ 0.19 $ 0.41 $ 0.16 $ (0.31 ) Weighted-average number of shares used in computing net income (loss) per share Basic 37,490 37,490 37,490 37,480 Diluted 37,490 37,495 37,490 37,480  

Affymax, Inc.Lisa Maxson, 650-812-8700