SEC Filings

10-K
ARRAY BIOPHARMA INC filed this Form 10-K on 08/11/2017
Entire Document
 

Our assessment of our future need for funding and our ability to continue to fund our operations through the sale of debt or equity securities or from upfront fees, milestone payments or other sources are forward-looking statements that are based on assumptions that may prove to be wrong and that involve substantial risks and uncertainties. We may be unable to obtain such funding when needed or on terms that are favorable to us. In addition, our actual future capital requirements could vary as a result of a number of factors. These risks, uncertainties and factors are described further below under the heading "Item 1A. Risk Factors" under Part I of this Annual Report on Form 10-K and in other reports we file with the SEC.

If we are unable to generate enough revenue from our existing or new collaborations or license agreements when needed or secure additional sources of funding and receive related full and timely collections of amounts due, it may be necessary to significantly reduce our current rate of spending through reductions in staff and delaying, scaling back or stopping certain research and development programs, including more costly late phase clinical trials on our wholly-owned programs. These events could prevent us from successfully executing our operating plan and, in the future, could raise substantial doubt about our ability to continue as a going concern. These events may also result in our inability to maintain the liquidity ratio required under our Loan Agreement with Silicon Valley Bank.

Cash, Cash Equivalents, Marketable Securities and Accounts Receivable

Cash equivalents are short-term, highly-liquid financial instruments that are readily convertible to cash and have maturities of 90 days or less from the date of purchase.

Short-term marketable securities consist primarily of U.S. government agency obligations with maturities of greater than 90 days when purchased. Long-term marketable securities are primarily securities held under our deferred compensation plan.

In each of the periods presented below, accounts receivable consists primarily of current receivables expected to be paid by Novartis within three months or less. Balances owed to Array by Novartis as of each balance sheet date shown relate to the Transition Agreements.

Below is a summary of our cash, cash equivalents, marketable securities and accounts receivable (in thousands):
 
June 30,
 
Change
 
Change
 
2017
 
2016
 
2015
 
2017 vs. 2016
 
2016 vs. 2015
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
125,933

 
$
56,598

 
$
55,691

 
$
69,335

 
$
907

Marketable securities – short-term
108,390

 
53,344

 
122,635

 
55,046

 
(69,291
)
Marketable securities – long-term
732

 
596

 
496

 
136

 
100

Accounts receivable
31,279

 
39,302

 
6,307

 
(8,023
)
 
32,995

Total
$
266,334

 
$
149,840

 
$
185,129

 
$
116,494

 
$
(35,289
)

Cash Flow Activities
 
Below is a summary of our cash flow activities (in thousands):
 
Year Ended June 30,
 
Change
 
Change
 
2017
 
2016
 
2015
 
2017 vs. 2016
 
2016 vs. 2015
Cash flows provided by (used in):
 
 
 
 
 
 
 
 
 
Operating activities
$
(39,354
)
 
$
(70,090
)
 
$
(5,793
)
 
$
30,736

 
$
(64,297
)
Investing activities
(58,116
)
 
66,027

 
(58,049
)
 
(124,143
)
 
124,076

Financing activities
166,805

 
4,970

 
50,942

 
161,835

 
(45,972
)
Total
$
69,335

 
$
907

 
$
(12,900
)
 
$
68,428

 
$
13,807


Fiscal 2017 compared to Fiscal 2016Net cash used in operating activities decreased $30.7 million during fiscal year 2016, primarily due to the $24.0 million increase in net loss, an $8.2 million increase in non-cash charges, and a $46.8 million increase in working capital.


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