Heron Therapeutics, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Heron Therapeutics, Inc. filed its Q1 2024 10-Q, detailing financial instruments and customer concentration risks.</b>

AI Summary

HERON THERAPEUTICS, INC. /DE/ (HRTX) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Heron Therapeutics, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to U.S. Treasury Securities and Fair Value Measurements Recurring as of March 31, 2024. Information on Customer Concentration Risk, including the largest and second-largest customers, is detailed for the period January 1, 2024, to March 31, 2024. The company's financial activities include U.S. Treasury Securities, Foreign Corporate Debt Securities, and Domestic Corporate Debt Securities. Key dates mentioned include August 9, 2023, and August 15, 2023, related to warrants and pre-funded warrants.

Why It Matters

For investors and stakeholders tracking HERON THERAPEUTICS, INC. /DE/, this filing contains several important signals. This filing provides investors with an updated view of Heron Therapeutics' financial position and risks, particularly concerning its investment portfolio and customer base. Understanding the company's exposure to specific customers and the valuation of its debt securities is crucial for assessing its financial stability and revenue predictability.

Risk Assessment

Risk Level: medium — HERON THERAPEUTICS, INC. /DE/ shows moderate risk based on this filing. The company's financial health is subject to market fluctuations and customer dependency, as indicated by the detailed reporting on various debt securities and customer concentration risks.

Analyst Insight

Investors should review the detailed breakdown of financial instruments and customer concentration to assess potential risks and opportunities.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-07 — Filing Date (Filed as of Date)
• 2023-12-31 — Previous Year End Date (U.S. Treasury Securities Date)
• 2024-01-01 — Reporting Period Start Date (Sales Revenue Net Period)

Key Players & Entities

• HERON THERAPEUTICS, INC. /DE/ (company) — Filer name
• 0000818033 (company) — Central Index Key
• 2834 (industry) — Standard Industrial Classification
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-07 (date) — Filed as of Date
• 4242 CAMPUS POINT COURT, SUITE 200 (address) — Business Address
• SAN DIEGO (location) — Business Address City
• CA (location) — Business Address State

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's financial performance may be significantly impacted by its reliance on a limited number of customers, as evidenced by the reporting of largest and second-largest customers.
• Fair Value of Financial Instruments [medium — financial]: The valuation of various debt securities, including U.S. Treasury Securities, Foreign Corporate Debt Securities, and Domestic Corporate Debt Securities, is subject to market fluctuations and valuation methodologies.

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q was officially submitted to the SEC.
• 2023-12-31: Prior Year End Date — Provides a comparative baseline for financial data.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share HRTX The Nasdaq Capital M

Filing Documents

• hrtx-20240331.htm (10-Q) — 1143KB
• hrtx-ex10_1.htm (EX-10.1) — 201KB
• hrtx-ex31_1.htm (EX-31.1) — 15KB
• hrtx-ex31_2.htm (EX-31.2) — 15KB
• hrtx-ex32_1.htm (EX-32.1) — 16KB
• 0000950170-24-053964.txt (&nbsp;) — 6182KB
• hrtx-20240331.xsd (EX-101.SCH) — 888KB
• hrtx-20240331_htm.xml (XML) — 1103KB

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 PART II. OTHER INFORMATION 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 27 ITEM 3. Defaults upon Senior Securities 27 ITEM 4. Mine Safety Disclosures 27 ITEM 5. Other Information 27 ITEM 6. Exhibits 28

SIGNATURES

SIGNATURES 29 1

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

CONDENSED CONSOL IDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOL IDATED FINANCIAL STATEMENTS HERON THERAPEUTICS, INC. Condensed Consolida ted Balance Sheets (In thousands) March 31, 2024 December 31, 2023 (Unaudited) (See Note 2) ASSETS Current assets: Cash and cash equivalents $ 20,450 $ 28,677 Short-term investments 51,074 51,732 Accounts receivable, net 65,322 60,137 Inventory 42,473 42,110 Prepaid expenses and other current assets 6,584 6,118 Total current assets 185,903 188,774 Property and equipment, net 19,306 20,166 Right-of-use lease assets 4,794 5,438 Other assets 7,884 8,128 Total assets $ 217,887 $ 222,506 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 837 $ 3,240 Accrued clinical and manufacturing liabilities 19,943 22,291 Accrued payroll and employee liabilities 7,647 9,224 Other accrued liabilities 43,814 41,855 Current lease liabilities 3,137 3,075 Total current liabilities 75,378 79,685 Non-current lease liabilities 2,045 2,800 Non-current notes payable, net 24,447 24,263 Non-current convertible notes payable, net 149,542 149,490 Other non-current liabilities 241 241 Total liabilities 251,653 256,479 Stockholders' deficit: Common stock 1,504 1,503 Additional paid-in capital 1,873,910 1,870,525 Accumulated other comprehensive (loss)/income ( 6 ) 13 Accumulated deficit ( 1,909,174 ) ( 1,906,014 ) Total stockholders' deficit ( 33,766 ) ( 33,973 ) Total liabilities and stockholders' deficit $ 217,887 $ 222,506 See accompanying notes. 2 HERON THERAPEUTICS, INC. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Revenues: Net product sales $ 34,670 $ 29,615 Cost of product sales 8,444 16,854 Gross profit 26