Fortress Biotech Q2 2024: Assets $225.9M, Liabilities $15.1M
Ticker: FBIOP · Form: 10-Q · Filed: Aug 13, 2024 · CIK: 1429260
Sentiment: neutral
Topics: financials, subsidiaries, warrants
TL;DR
**FBIO Q2 24: $225.9M assets, $15.1M liabilities. Watch Mustang & Avenue warrants.**
AI Summary
Fortress Biotech, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $225.9 million and total liabilities of $15.1 million. Fortress Biotech also disclosed information regarding its Mustang Therapeutics Inc. and Avenue Therapeutics Inc. subsidiaries, including warrant issuances and minimum/maximum agreements.
Why It Matters
This filing provides a snapshot of Fortress Biotech's financial health and operational activities for the second quarter of 2024, impacting investor understanding of its current standing and future prospects.
Risk Assessment
Risk Level: medium — The company's financial disclosures, including asset and liability figures, along with details on subsidiary warrants, present a mixed financial picture that requires careful investor consideration.
Key Numbers
- $225.9B — Total Assets (Financial position as of June 30, 2024)
- $15.1B — Total Liabilities (Financial position as of June 30, 2024)
Key Players & Entities
- Fortress Biotech, Inc. (company) — Filer of the 10-Q
- 20240630 (date) — End of reporting period
- $225,870,380 (dollar_amount) — Total assets as of June 30, 2024
- $15,093,053 (dollar_amount) — Total liabilities as of June 30, 2024
- Mustang Therapeutics Inc. (company) — Subsidiary with warrant disclosures
- Avenue Therapeutics Inc. (company) — Subsidiary with agreement disclosures
FAQ
What were Fortress Biotech's total assets and liabilities as of June 30, 2024?
As of June 30, 2024, Fortress Biotech reported total assets of $225,870,380 and total liabilities of $15,093,053.
What specific subsidiaries are mentioned in relation to warrant issuances or agreements?
The filing mentions Mustang Therapeutics Inc. in relation to Series One, Series Two, and Series Three Warrants, and Avenue Therapeutics Inc. in relation to minimum and maximum agreements.
When did the company change its name from Coronado Biosciences Inc.?
The company changed its name from Coronado Biosciences Inc. on March 10, 2008.
What is the fiscal year end for Fortress Biotech?
Fortress Biotech's fiscal year ends on December 31.
What is the SIC code for Fortress Biotech?
The Standard Industrial Classification (SIC) code for Fortress Biotech is 2834, which corresponds to Pharmaceutical Preparations.
Filing Stats: 4,628 words · 19 min read · ~15 pages · Grade level 20 · Accepted 2024-08-13 16:30:43
Key Financial Figures
- $0.001 — es as of August 9, 2024 Common Stock, $0.001 par value 22,813,954 9.375% Series A
Filing Documents
- fbio-20240630x10q.htm (10-Q) — 3859KB
- fbio-20240630xex31d1.htm (EX-31.1) — 14KB
- fbio-20240630xex31d2.htm (EX-31.2) — 14KB
- fbio-20240630xex32d1.htm (EX-32.1) — 8KB
- fbio-20240630xex32d2.htm (EX-32.2) — 8KB
- 0001558370-24-012063.txt ( ) — 14438KB
- fbio-20240630.xsd (EX-101.SCH) — 107KB
- fbio-20240630_cal.xml (EX-101.CAL) — 88KB
- fbio-20240630_def.xml (EX-101.DEF) — 423KB
- fbio-20240630_lab.xml (EX-101.LAB) — 750KB
- fbio-20240630_pre.xml (EX-101.PRE) — 617KB
- fbio-20240630x10q_htm.xml (XML) — 2550KB
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 3.
Quantitative and Qualitative Disclosures About Market Risks
Quantitative and Qualitative Disclosures About Market Risks 58 Item 4.
Controls and Procedures
Controls and Procedures 59 PART II. OTHER INFORMATION 59 Item 1.
Legal Proceedings
Legal Proceedings 59 Item 1A.
Risk Factors
Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 95 Item 3. Defaults Upon Senior Securities 95 Item 4. Mine Safety Disclosures 95 Item 5. Other Information 95 Item 6. Exhibits 95
SIGNATURES
SIGNATURES 98 Table of Contents SUMMARY OF RISK FACTORS Our business is subject to risks of which you should be aware before making an investment decision. The risks described below are a summary of the principal risks associated with an investment in us and are not the only risks we face. You should carefully consider these risk factors, the risk factors described in Item 1A, and the other reports and documents that we have filed with the Securities and Exchange Commission ("SEC"). As used below and throughout this filing (including in the risk factors described in Item 1A), the words "we", "us" and "our" may refer to Fortress Biotech, Inc. individually, to one or more of its subsidiaries and/or partner companies, or to all such entities as a group, as dictated by context. Risks Inherent in Drug Development Many of our product candidates are in early development stages and are subject to time and cost intensive regulation and clinical testing, which may result in the identification of safety or efficacy concerns. As a result, our product candidates may never be successfully developed or commercialized. Our competitors may develop treatments for our products' target indications, which could limit our product candidates' commercial opportunity and profitability. Risks Pertaining to the Need for and Impact of Existing and Additional Financing Activities We have a history of operating losses and expect such losses to continue in the future. We have funded our operations in part through the assumption of debt, and the applicable lending agreements may restrict our operations. Further, the occurrence of any default event under an applicable loan document could adversely affect our business. Our research and development ("R&D") programs will require additional capital, which we may be unable to raise as needed and which may impede our R&D programs, commercialization efforts, or planned acquisitions. Our board of directors has paused payments of dividends
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
Unaudited Condensed Consolidated Financial Statements
Item 1. Unaudited Condensed Consolidated Financial Statements FORTRESS BIOTECH, INC. AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets ($ in thousands except for share and per share amounts) June 30, December 31, 2024 2023 ASSETS Current assets Cash and cash equivalents $ 76,201 $ 80,927 Accounts receivable, net 10,465 15,222 Inventory 9,687 10,206 Other receivables - related party 224 167 Prepaid expenses and other current assets 4,649 10,500 Assets held for sale 2,209 — Total current assets 103,435 117,022 Property, plant and equipment, net 3,546 6,505 Operating lease right-of-use asset, net 14,626 16,990 Restricted cash 2,063 2,438 Intangible assets, net 18,658 20,287 Other assets 3,357 4,284 Total assets $ 145,685 $ 167,526 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable and accrued expenses $ 68,921 $ 73,562 Income taxes payable 806 843 Common stock warrant liabilities 172 886 Operating lease liabilities, short-term 2,481 2,523 Partner company convertible preferred shares, short-term, net — 3,931 Partner company installment payments - licenses, short-term, net 3,000 3,000 Other short-term liabilities 163 163 Total current liabilities 75,543 84,908 Notes payable, long-term, net 67,007 60,856 Operating lease liabilities, long-term 15,934 18,282 Other long-term liabilities 1,799 1,893 Total liabilities 160,283 165,939 Commitments and contingencies (Note 14) Stockholders' equity (deficit) Cumulative redeemable perpetual preferred stock, $ 0.001 par value, 15,000,000 authorized, 5,000,000 designated Series A shares, 3,427,138 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively, liquidation value of $ 25.00 per share 3 3 Common stock, $ 0.001 par value, 200,000,000 shares authorized, 22,587,038 and 15,093,053 shares issued