Omeros Corp Files 10-Q for Q1 2024

TL;DR

<b>Omeros Corp files Q1 2024 10-Q, highlighting convertible notes and limited conversion feature impact.</b>

AI Summary

OMEROS CORP (OMER) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Omeros Corp reported Q1 2024 results with EPS of $0.01. The company's 2026 Notes are subject to a capped call arrangement. The fair value of the 2026 Notes is classified as Level 3 due to limited trading activity. The conversion feature of the 2026 Notes is not significant as stock price is below the conversion price of $18.49. The 2023 Notes were fully extinguished upon maturity on November 15, 2023.

Why It Matters

For investors and stakeholders tracking OMEROS CORP, this filing contains several important signals. The filing details the status of Omeros Corp's convertible senior notes, including the 2026 Notes and their capped call arrangements, which could affect future dilution. The valuation of the 2026 Notes is based on Level 3 inputs, indicating less observable market data, and the conversion feature's impact is currently minimal due to stock price.

Risk Assessment

Risk Level: medium — OMEROS CORP shows moderate risk based on this filing. The company's financial health and future dilution potential are influenced by its convertible notes, with Level 3 fair value classifications suggesting less liquid market conditions for these instruments.

Analyst Insight

Monitor Omeros Corp's stock performance relative to the $18.49 conversion price of its 2026 Notes and any updates on capped call arrangements.

Key Numbers

• 0.01 — EPS (Q1 2024)
• 2026 — Convertible Senior Notes Year (Notes outstanding)
• 18.49 — Conversion Price (2026 Notes)
• November 15, 2023 — Maturity Date (2023 Notes)

Key Players & Entities

• OMEROS CORP (company) — FILER
• 2026 Notes (dollar_amount) — Convertible Senior Notes
• $18.49 (dollar_amount) — conversion price
• 2023 Notes (dollar_amount) — Convertible Senior Notes
• November 15, 2023 (date) — maturity date
• 201 ELLIOTT AVENUE WEST (company) — BUSINESS ADDRESS
• SEATTLE (company) — CITY
• WA (company) — STATE

FAQ

Risk Factors

• Fair Value of Convertible Senior Notes [medium — financial]: The fair value of the 2026 Notes is classified as Level 3 due to limited trading activity, impacting valuation transparency.
• Convertible Note Capped Call Arrangements [medium — financial]: Capped call arrangements on the 2026 Notes may reduce their dilutive effect, but their potential impact is excluded from certain disclosures.

Glossary

Level 3 Fair Value

Fair value measurements using unobservable inputs, meaning they are based on the company's own assumptions and models. (Indicates that the valuation of the 2026 Notes relies on less observable market data, potentially increasing valuation uncertainty.)

Capped Call Arrangements

Derivative instruments entered into by the issuer of convertible bonds to hedge against potential dilution from the conversion of those bonds. (These arrangements can affect the net dilutive impact of convertible notes on Omeros Corp's common stock.)

Key Financial Figures

• $0.01 — h registered) Common Stock, par value $0.01 per share OMER The Nasdaq Stock Mar

Filing Documents

• omer20240331_10q.htm (10-Q) — 885KB
• ex_618340.htm (EX-31.1) — 12KB
• ex_618341.htm (EX-31.2) — 13KB
• ex_618342.htm (EX-32.1) — 6KB
• ex_618343.htm (EX-32.2) — 6KB
• 0001437749-24-017047.txt (&nbsp;) — 5484KB
• omer-20240331.xsd (EX-101.SCH) — 63KB
• omer-20240331_cal.xml (EX-101.CAL) — 49KB
• omer-20240331_def.xml (EX-101.DEF) — 359KB
• omer-20240331_lab.xml (EX-101.LAB) — 321KB
• omer-20240331_pre.xml (EX-101.PRE) — 389KB
• omer20240331_10q_htm.xml (XML) — 839KB

— Financial Information

Part I — Financial Information 5 Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations and Comprehensive Loss 6 Condensed Consolidated Statements of Stockholders' Equity (Deficit) 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25

— Other Information

Part II — Other Information 26 Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Default Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures 28 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS OMEROS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (unaudited) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 1,831 $ 7,105 Short-term investments 228,503 164,743 OMIDRIA contract royalty asset, short-term 29,519 29,373 Receivables 7,642 8,096 Prepaid expense and other assets 13,463 8,581 Total current assets 280,958 217,898 OMIDRIA contract royalty asset 135,909 138,736 Right of use assets 17,767 18,631 Property and equipment, net 1,804 1,950 Restricted investments 1,054 1,054 Total assets $ 437,492 $ 378,269 Liabilities and shareholders' equity (deficit) Current liabilities: Accounts payable $ 6,182 $ 7,712 Accrued expenses 28,402 31,868 Current portion of OMIDRIA royalty obligation 19,130 8,576 Current portion of lease liabilities 5,342 5,160 Total current liabilities 59,056 53,316 Convertible senior notes, net 213,463 213,155 OMIDRIA royalty obligation, non-current 217,459 116,550 Lease liabilities, non-current 16,754 18,143 Other accrued liabilities, non-current 2,088 2,088 Commitments and contingencies (Note 10) Shareholders' equity (deficit): Preferred stock, par value $ 0.01 per share, 20,000,000 shares authorized; none issued and outstanding at March 31, 2024 and December 31, 2023. — — Common stock, par value $ 0.01 per share, 150,000,000 shares authorized at March 31, 2024 and December 31, 2023; 57,942,695 and 61,128,597 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively. 579 611 Additional paid-in capital 718,807 727,936 Accumulated deficit ( 790,714 ) ( 753,530 ) Total shareholders' deficit ( 71,328 ) ( 24,983 ) Total liabilities and shareholders' equity (deficit) $ 437,492 $ 378,269 See accompanying Notes to Condensed Consolidated Financial Statements 5 Table of Contents OMEROS CORPORATION CO

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View this 10-Q filing on SEC EDGAR