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Post by traderdennis on Aug 6, 2018 10:51:32 GMT -5
April dilution. Amphastar and Deerfield paid in shares. Are you sure Amphastar got paid in shares? The 10-Q says: "In the second quarter of 2018, the Company took delivery of insulin under the contract in 2018 and approximately $2.6 million was included in accounts payable at June 30, 2018. That implies to me that they still owe Amphastar 2.6 million. If they were paying with shares, I think they would have just gone ahead and paid and not stuck what's owed into accounts payable. It also says in the section about Amphastar: "On April 2, 2018, the Company entered into a foreign currency hedging transaction to mitigate its exposure to foreign currency exchange risks. The hedging transaction hedges against short-term currency fluctuations for the current year purchase requirement amount of €6.6 million and is renewable every 90 days. In the second quarter of 2018, the Company realized a currency loss of approximately $0.5 million and recorded this amount in cost of goods sold.' If they were paying with shares, I don't think they would bother with such a hedge. I may of gotten it confused with the transaction around the end of the first quarter. Worse if the Amphastar liability is still in the accounts payable. |
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Post by boca1girl on Aug 6, 2018 12:40:55 GMT -5
April dilution. Amphastar and Deerfield paid in shares. Are you sure Amphastar got paid in shares? The 10-Q says: "In the second quarter of 2018, the Company took delivery of insulin under the contract in 2018 and approximately $2.6 million was included in accounts payable at June 30, 2018. That implies to me that they still owe Amphastar 2.6 million. If they were paying with shares, I think they would have just gone ahead and paid and not stuck what's owed into accounts payable. It also says in the section about Amphastar: "On April 2, 2018, the Company entered into a foreign currency hedging transaction to mitigate its exposure to foreign currency exchange risks. The hedging transaction hedges against short-term currency fluctuations for the current year purchase requirement amount of €6.6 million and is renewable every 90 days. In the second quarter of 2018, the Company realized a currency loss of approximately $0.5 million and recorded this amount in cost of goods sold.' If they were paying with shares, I don't think they would bother with such a hedge. If, and a big IF, MNKD was in the process of final negotiations with Amphastar on the distribution rights for China, would they put on a currency hedge if they were going to be paid a large sum in a foreign currency? And would it make sense to delay the insulin payments to Amphastar in cash or shares, thereby adding to accounts payable, until the negations were completed? |
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Post by matt on Aug 6, 2018 14:00:09 GMT -5
Every 10-Q and 10-K must show the current share count as of the date of filing at the bottom of the cover page. That is always the best place to start. Then add financing transactions, splits, and other known stock transactions that happened after the report date. That will almost always yield a number that is 99% accurate, with most of the difference being option exercise by employees that are not officers or directors. |
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Post by standup on Aug 6, 2018 14:25:39 GMT -5
As of July 17, 2018, there were 152,988,367 shares of the registrant’s common stock, $0.01 par value per share, outstanding.
As of June 30, 2018, there were 145,619,293 shares of the registrant’s common stock, $0.01 par value per share, outstanding.
Between those dates they did their deal with Deerfield.
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Post by matt on Aug 6, 2018 14:38:06 GMT -5
If, and a big IF, MNKD was in the process of final negotiations with Amphastar on the distribution rights for China, would they put on a currency hedge if they were going to be paid a large sum in a foreign currency? And would it make sense to delay the insulin payments to Amphastar in cash or shares, thereby adding to accounts payable, until the negations were completed? It can make sense to hedge anticipated foreign currency exposures, but only if the contact is a done deal. If a hedge exists and the company does not get the foreign currency as expected, they will have an obligation to buy the currency on the spot market and deliver against the hedge contract or otherwise make the counterparty whole for any loss. As for the insulin payments, anything that preserves precious cash makes sense so long as Amphastar is willing to go along with it. |
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Post by tomtabb on Aug 6, 2018 15:14:06 GMT -5
Are you sure Amphastar got paid in shares? The 10-Q says: "In the second quarter of 2018, the Company took delivery of insulin under the contract in 2018 and approximately $2.6 million was included in accounts payable at June 30, 2018. That implies to me that they still owe Amphastar 2.6 million. If they were paying with shares, I think they would have just gone ahead and paid and not stuck what's owed into accounts payable. It also says in the section about Amphastar: "On April 2, 2018, the Company entered into a foreign currency hedging transaction to mitigate its exposure to foreign currency exchange risks. The hedging transaction hedges against short-term currency fluctuations for the current year purchase requirement amount of €6.6 million and is renewable every 90 days. In the second quarter of 2018, the Company realized a currency loss of approximately $0.5 million and recorded this amount in cost of goods sold.' If they were paying with shares, I don't think they would bother with such a hedge. If, and a big IF, MNKD was in the process of final negotiations with Amphastar on the distribution rights for China, would they put on a currency hedge if they were going to be paid a large sum in a foreign currency? And would it make sense to delay the insulin payments to Amphastar in cash or shares, thereby adding to accounts payable, until the negations were completed? It sounded to me like they were just hedging fluctuations in the 6.6 million Euros needed to pay Amphastar. The euro was showing increasing strength against the dollar earlier this year so a hedge made sense. |
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Post by casualinvestor on Aug 6, 2018 15:34:07 GMT -5
Warrants that have not been exercised are part of the outstanding share count, right?
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Post by xanet on Aug 6, 2018 17:35:53 GMT -5
Warrants that have not been exercised are part of the outstanding share count, right? Do you mean in the 10-Q or 10-K numbers? That's issued shares, so no. It's confusing because outstanding shares can also be calculated fully diluted, which would include warrants, convertible notes, anything that can dilute. |
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