ISTA Pharmaceuticals Inc. (ISTA, Financial) filed Quarterly Report for the period ended 2010-09-30.
Ista Pharmaceuticals Inc. has a market cap of $136.2 million; its shares were traded at around $4.145 with and P/S ratio of 1.2. ISTA is in the portfolios of Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Interest expense. Interest expense was $2.1 million for the three months ended September 30, 2010, as compared to $2.8 million for the three months ended September 30, 2009. Interest expense for the three months ended September 30, 2010 included interest payments on our Facility Agreement ($1.1 million), amortization of the discount on the Facility Agreement ($0.6 million), amortization of the deferred financing costs ($0.3 million), and amortization of the derivative on the Facility Agreement ($0.1 million). Interest expense for the three months ended September 30, 2009 included interest payments on our Facility Agreement ($1.1 million), amortization of the discount on the Facility Agreement ($1.2 million), amortization of the deferred financing costs ($0.4 million), and interest on our borrowings under our Revolving Credit Facility ($0.1 million).
Stock-based compensation costs. Total stock-based compensation costs for the nine months ended September 30, 2010 were $2.9 million, compared with $2.8 million for the nine months ended September 30, 2009. For the nine months ended September 30, 2010 and 2009, we granted stock options to employees to purchase 929,302 shares of common stock (at a weighted average exercise price of $3.57 per share) and 812,288 shares of common stock (at a weighted average exercise price of $1.64 per share), respectively, equal to the fair market value of our common stock at the time of grant. We also issued 155,152 and 148,101 restricted stock awards for the nine months ended September 30, 2010 and 2009, respectively. Included in stock-based compensation costs were $0.3 million and $0.4 million for the nine months ended September 30, 2010 and 2009, respectively, related to restricted stock awards.
Interest expense. Interest expense was $6.2 million for the nine months ended September 30, 2010, as compared to $6.5 million for the nine months ended September 30, 2009. Interest expense for the nine months ended September 30, 2010 included interest payments on our Facility Agreement ($3.2 million), amortization of the discount on the Facility Agreement ($1.9 million), amortization of the deferred financing costs ($0.8 million), amortization of the derivative on the Facility Agreement ($0.2 million) and interest on our borrowings under our Revolving Credit Facility ($0.1 million). Interest expense for the nine months ended September 30, 2009 included interest payments on our Facility Agreement ($3.2 million), amortization of the discount on the Facility Agreement ($2.3 million), amortization of the deferred financing costs ($0.8 million) and interest on our borrowings under our Revolving Credit Facility ($0.2 million).
Under our Revolving Credit Facility with Silicon Valley Bank, we may borrow up to the lesser of $25.0 million or 80% of eligible accounts receivable, plus the lesser of 25% of net cash or $10.0 million. As of September 30, 2010, we had $19.2 million available under the Revolving Credit Facility of which we borrowed $13 million. All amounts borrowed under the Revolving Credit Facility were repaid in October 2010. We also had letters of credit of $0.5 million outstanding. All outstanding amounts under the Revolving Credit Facility bear interest at a variable rate equal to the lenders prime rate plus a margin of 0.25%. In no event shall the interest rate on outstanding borrowings be less than 4.25%, which is payable on a monthly basis. The Revolving Credit Facility also contains customary covenants regarding operations of our business and financial covenants relating to ratios of current assets to current liabilities and is collateralized by all of our assets. An event of default under the Revolving Credit Facility will occur if, among other things, (i) we are delinquent in making payments of principal or interest on the Revolving Credit Facility; (ii) we fail to cure a breach of a covenant or term of the Revolving Credit Facility; (iii) we make a representation or warranty under the Revolving Credit Facility that is materially inaccurate; (iv) we are unable to pay our debts as they become due, certain bankruptcy proceedings are commenced or certain orders are granted against us, or we otherwise become insolvent; or (v) an acceleration event occurs under certain types of other indebtedness outstanding from time to time. If an event of default occurs, the indebtedness to Silicon Valley Bank could be accelerated, such that it becomes immediately due and payable. As of September 30, 2010, we were in compliance with all of the covenants under the Revolving Credit Facility. Unless repaid earlier, all amounts owing under the Revolving Credit Facility will become due and payable on December 30, 2010. While we believe we will be able extend the maturity date of our Revolving Credit Facility, or refinance outstanding amounts with another lender, we may be unable to do so. If we are unable to renew our Revolving Credit Facility or obtain suitable alternative debt financing, our ability to execute on our business plan may be adversely affected.
We have a Facility Agreement with certain institutional accredited investors, collectively known as the Lenders. On September 30, 2010, we had total indebtedness under the Facility Agreement of $65 million, which excludes unamortized discounts of ($5.7) million and the value of the derivatives of $0.2 million. Outstanding amounts under the Facility Agreement accrue interest at a rate of 6.5% per annum, payable quarterly in arrears. We are required to repay the Lenders 33% of the original principal amount (or $21.5 million) on each of September 26, 2011 and 2012, and 34% of the original principal amount (or $22.0 million) on September 26, 2013. Since the September 2011 payment is due within 12 months, $21.5 million of this Facility Agreement has been classified as a current liability as of September 30, 2010.
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Ista Pharmaceuticals Inc. has a market cap of $136.2 million; its shares were traded at around $4.145 with and P/S ratio of 1.2. ISTA is in the portfolios of Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Stock-based compensation costs. Total stock-based compensation costs for the three months ended September 30, 2010 and 2009 were $1.0 million and $1.2 million, respectively. For the three months ended September 30, 2010 and 2009, we granted stock options to employees to purchase 60,000 shares of common stock (at a weighted average exercise price of $3.11 per share) and 63,000 shares of common stock (at a weighted average exercise price of $5.13 per share), respectively, equal to the fair market value of our common stock at the time of grant. We also issued 3,333 and 3,066 restricted stock awards for the three months ended September 30, 2010 and 2009, respectively. Included in stock-based compensation costs were $0.1 million and $0.2 million for the three months ended September 30, 2010 and 2009, respectively, related to restricted stock awards.Interest expense. Interest expense was $2.1 million for the three months ended September 30, 2010, as compared to $2.8 million for the three months ended September 30, 2009. Interest expense for the three months ended September 30, 2010 included interest payments on our Facility Agreement ($1.1 million), amortization of the discount on the Facility Agreement ($0.6 million), amortization of the deferred financing costs ($0.3 million), and amortization of the derivative on the Facility Agreement ($0.1 million). Interest expense for the three months ended September 30, 2009 included interest payments on our Facility Agreement ($1.1 million), amortization of the discount on the Facility Agreement ($1.2 million), amortization of the deferred financing costs ($0.4 million), and interest on our borrowings under our Revolving Credit Facility ($0.1 million).
Stock-based compensation costs. Total stock-based compensation costs for the nine months ended September 30, 2010 were $2.9 million, compared with $2.8 million for the nine months ended September 30, 2009. For the nine months ended September 30, 2010 and 2009, we granted stock options to employees to purchase 929,302 shares of common stock (at a weighted average exercise price of $3.57 per share) and 812,288 shares of common stock (at a weighted average exercise price of $1.64 per share), respectively, equal to the fair market value of our common stock at the time of grant. We also issued 155,152 and 148,101 restricted stock awards for the nine months ended September 30, 2010 and 2009, respectively. Included in stock-based compensation costs were $0.3 million and $0.4 million for the nine months ended September 30, 2010 and 2009, respectively, related to restricted stock awards.
Interest expense. Interest expense was $6.2 million for the nine months ended September 30, 2010, as compared to $6.5 million for the nine months ended September 30, 2009. Interest expense for the nine months ended September 30, 2010 included interest payments on our Facility Agreement ($3.2 million), amortization of the discount on the Facility Agreement ($1.9 million), amortization of the deferred financing costs ($0.8 million), amortization of the derivative on the Facility Agreement ($0.2 million) and interest on our borrowings under our Revolving Credit Facility ($0.1 million). Interest expense for the nine months ended September 30, 2009 included interest payments on our Facility Agreement ($3.2 million), amortization of the discount on the Facility Agreement ($2.3 million), amortization of the deferred financing costs ($0.8 million) and interest on our borrowings under our Revolving Credit Facility ($0.2 million).
Under our Revolving Credit Facility with Silicon Valley Bank, we may borrow up to the lesser of $25.0 million or 80% of eligible accounts receivable, plus the lesser of 25% of net cash or $10.0 million. As of September 30, 2010, we had $19.2 million available under the Revolving Credit Facility of which we borrowed $13 million. All amounts borrowed under the Revolving Credit Facility were repaid in October 2010. We also had letters of credit of $0.5 million outstanding. All outstanding amounts under the Revolving Credit Facility bear interest at a variable rate equal to the lenders prime rate plus a margin of 0.25%. In no event shall the interest rate on outstanding borrowings be less than 4.25%, which is payable on a monthly basis. The Revolving Credit Facility also contains customary covenants regarding operations of our business and financial covenants relating to ratios of current assets to current liabilities and is collateralized by all of our assets. An event of default under the Revolving Credit Facility will occur if, among other things, (i) we are delinquent in making payments of principal or interest on the Revolving Credit Facility; (ii) we fail to cure a breach of a covenant or term of the Revolving Credit Facility; (iii) we make a representation or warranty under the Revolving Credit Facility that is materially inaccurate; (iv) we are unable to pay our debts as they become due, certain bankruptcy proceedings are commenced or certain orders are granted against us, or we otherwise become insolvent; or (v) an acceleration event occurs under certain types of other indebtedness outstanding from time to time. If an event of default occurs, the indebtedness to Silicon Valley Bank could be accelerated, such that it becomes immediately due and payable. As of September 30, 2010, we were in compliance with all of the covenants under the Revolving Credit Facility. Unless repaid earlier, all amounts owing under the Revolving Credit Facility will become due and payable on December 30, 2010. While we believe we will be able extend the maturity date of our Revolving Credit Facility, or refinance outstanding amounts with another lender, we may be unable to do so. If we are unable to renew our Revolving Credit Facility or obtain suitable alternative debt financing, our ability to execute on our business plan may be adversely affected.
We have a Facility Agreement with certain institutional accredited investors, collectively known as the Lenders. On September 30, 2010, we had total indebtedness under the Facility Agreement of $65 million, which excludes unamortized discounts of ($5.7) million and the value of the derivatives of $0.2 million. Outstanding amounts under the Facility Agreement accrue interest at a rate of 6.5% per annum, payable quarterly in arrears. We are required to repay the Lenders 33% of the original principal amount (or $21.5 million) on each of September 26, 2011 and 2012, and 34% of the original principal amount (or $22.0 million) on September 26, 2013. Since the September 2011 payment is due within 12 months, $21.5 million of this Facility Agreement has been classified as a current liability as of September 30, 2010.
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