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SEC Filings

10-Q
PROTEON THERAPEUTICS INC filed this Form 10-Q on 08/07/2017
Entire Document
 
 

 

Available-for-sale securities consist of the following (in thousands):

 

   Amortized Cost  Unrealized Gains  Unrealized Losses  Fair Value
June 30, 2017                    
Government securities                    
(Due within 1 year)  $13,363   $-   $(6)  $13,357 
   $13,363   $-   $(6)  $13,357 
                     
December 31, 2016                    
Government securities                    
(Due within 1 year)  $4,924   $1   $-   $4,925 
   $4,924   $1   $-   $4,925 

 

 

4. Derivative Financial Instruments

 

Beginning in May 2015 and through 2016, the Company has purchased Swiss Francs and enters into a series of forward foreign currency contracts to mitigate its exposure to fluctuations in the U.S. dollar value of forecasted transactions denominated in Swiss Franc. The latter are considered derivative financial instruments that the Company records on the consolidated balance sheet at fair value. The Company elected not to apply hedge accounting to these instruments. As a result, during the six months ended June 30, 2016, the Company experienced unrealized gains and (losses) within other income (expense), net, in the consolidated statements of operations from the mark-to-market of outstanding forward foreign currency contracts. As of December 31, 2016, all forward foreign currency contracts had been settled and are no longer outstanding.

 

 

 
5. Commitments and Contingencies

 

In July 2015, the Company entered into a manufacturing services agreement with Lonza Ltd, or (“Lonza”) for the processing, development and manufacturing of the active pharmaceutical ingredient (“API”) in its lead product candidate, vonapanitase. Under the agreement, the Company will issue purchase orders authorizing Lonza to manufacture API batches and will pay for the services and batches in accordance with terms and assumptions in the agreement and to be set forth in a project plan. As of June 30, 2017, the Company has issued a purchase order for 7.6 million Swiss Francs, approximately $7.9 million at current exchange rates, for the manufacturing of three batches to commence in July 2017 and one batch to commence by the end of 2019. No services have been rendered under this purchase order as of June 30, 2017.

 

Future minimum payments required under operating leases as of June 30, 2017 are summarized as follows (in thousands):

 

Year Ending December 31:  Amount
    
2017   86 
2018   84 
Total minimum lease payments  $170 

 

In addition to the base rent, the Company is also responsible for its share of operating expenses and real estate taxes, in accordance with the terms of the lease agreement. As of June 30, 2017, the Company has provided a security deposit in the amount of $14,000 to the lessor.

 

Restricted cash related to facilities leases

  

As of June 30, 2017 and December 31, 2016, the Company had $14,000 in an outstanding letter of credit to be used as collateral for leased premises. As of June 30, 2017 and December 31, 2016, the Company pledged an aggregate of $14,000 to the bank as collateral for the letter of credit, which is included in long-term assets.

 

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