Could have Credited $14M in milestones all in Q3- but chose to defer over 14 Yrs! Could have taken HyQ and Hercep Rev in Q3 but chose to defer to Q4- sound like a cash hungry company?
The only dilution here is the White Wine Spritzer in Mrs Frost's Baccarat Stem Glass!
As stated clearly below, individuals on this message board were being misled about the cash position of HALO. It was perfectly clear back in November 2013 that when considering the cash burn rate and the cash on hand, a secondary offering in 2014 was unavoidable. Many we're trying to point out this fact only to be shouted down by the cheerleader on this board. No one was saying that HALO was a bad company --- they were merely pointing out something investors in the company needed to understand. HALO did not have the cash to fund operations through the end of 2014 without raising funds through the sale of stock.
If someone tries to tell you that 1 + 1 = 3, you have to do the math for yourself. Don't trust blindly.
cj cassidy is a liar- here are David Ramsey's Words 2 days ago-
"Cash, cash equivalents and marketable securities were $65.3 million at September 30, 2013 "
Here's Cassidy's -
"The balance sheet at the end of Q3 shows cash of $17.5 million and marketable securities available for sale of $47.8 million"
PLUS we know they received another $10M in October now On Hand- Dilution? No DELUSION!!!
I think HALO chose to recognize the milestone payments over the patent life so as not to show spikes in revenue that may not be sustained in terms of a % increase (and perhaps absolute dollars in Q4) when comparing quarterly data. In regards to reporting royalty revenue on a one quarter lag, one would have to look at the contract to see when the royalty calculations are available. The calculations may only be reported once per quarter after the quarter ends. Although they may estimate and accrue the royalty income, HALO may not have the ability to do so. However, I don't think US GAAP would allow HALO to defer the recognition of the royalty income merely because they wanted to.
Deferring the recognition of revenue relating to the milestone payment does not affect the receipt of the cash. Kudos to you for looking up the EITF for the accounting for milestone payments.
Sentiment: Strong Buy
Thanks but the Milestone Method of Revenue Recognition allows them to take it all in Q3 and royalties don't figure into that #. My point is- why take it if you know what's coming and they're good- this is the farthest thing from a desperate situation and miles from where they were a year ago.
They may even know BOTH Pfizer and Allergan are interested in partnering HTI-501 and may have a bidding war.
This is a misleading statement. Revenue recognition for accounting purposes has nothing to do with cash on hand to fund ongoing operations.
Company reported that net cash burned in Q3 alone was $10.7 million. The balance sheet at the end of Q3 shows cash of $17.5 million and marketable securities available for sale of $47.8 million. Therefore a sale of stock to raise cash will be unavoidable. This will absolutely have a dilutive effect.
It's been a nice ride to $13, but that's no reason to mislead people about the cash situation. Share facts and data and let people decide for themselves.
It is not a misleading statement, but it is somewhat confusing. I think the sentiment is, if HALO was hungry for cash they would have recognized the milestone revenue all in Q3 and pumped up revenue.Therefore, in the headlines and soundbites, HALO would have reported much higher revenue compared to the same quarter in the prior year and also Q2 2013. PPS would have gone higher and if there was really a strong need for cash, announced a secondary offering because HALO would have thought the share price was at its short-term peak. Now, this is hypothetical, but could have happened.
In any case, enjoy the ride because things are getting even more interesting!
Sentiment: Strong Buy
LIAR- LIAR- PANTS- ON-FIRE!!!
From the Q3 13 TRANSCRIPT:
" Cash, cash equivalents and marketable securities were $65.3 million at September 30, 2013 compared with $99.5 million at June 30, 2013, and 89.5 -- excuse me, $99.5 million at December 31, 2012, rather than June 30. Net cash used in the third quarter of 2013 was approximately $10.7 million, and the cash balance for Q3 does not include the $10 million milestone payment from Roche, as this was received in October."= OH $65M =$10M FROM ROCHE FOR HERCEPTIN SC NOT COUNTED IN CASH BALANCE- OH SO THAT'S $75M!!! OH AND with delayed reporting of HyQ and Herceptin SC revenues by 1Q - guess what SHORTY??? IT's MORE! Hahahahahahaha!!!
"Decide for yourself and Cover before the Baxter FDA HyQ Refiling,,,"