Article:
Fulcrum Therapeutics, Inc. (FULC), a biotechnology company focusing on genetically-defined rare diseases, has disclosed in its Form 10-K/A report filed with the Securities and Exchange Commission (SEC) that its disclosure controls and procedures were evaluated to be effective as of December 31, 2022. This evaluation was conducted by the company’s management, including its principal executive officer and principal financial officer, who recognize that any controls and procedures can provide only reasonable assurance of achieving their objectives.
Moreover, the Company’s management assessed the effectiveness of its internal control over financial reporting as of December 31, 2022. Based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 framework), the management concluded its internal control over financial reporting was effective.
According to the report, Fulcrum Therapeutics had total assets amounting to $226.7 million as of December 31, 2022, compared to $235 million on December 31, 2021. The company reported total liabilities of $27.7 million and total shareholders’ equity of $198.9 million as of December 31, 2022.
Fulcrum’s total revenue for 2022 was $6.3 million, which principally came from collaboration agreements. In contrast, the Company’s total expenses reached $118.9 million, resulting in a net loss of $109.9 million for the year. The larger portion of the expenses incurred was directed towards Fulcrum’s research and development initiatives, which amounted to $76.8 million, while general and administrative expenses were $41.7 million.
The company reported net cash used in operating activities amounting to $97.1 million. Fulcrum’s cash, cash equivalents, and restricted cash totaled $36.2 million as of December 31, 2022.
During the course of 2022, the company successfully issued common stock in connection with public offerings, netting $80.8 million after issuance costs. In addition, Fulcrum issued common stock under employee benefit plans, leading to net proceeds of $3.5 million. Overall, financing activities generated $84.3 million for the company.
In terms of investing activities, the company spent $151.2 million on purchasing marketable securities and $1.9 million on property and equipment, while it received $165.5 million from maturities of marketable securities. The net cash provided by (used in) investing activities was $12.4 million.
Fulcrum Therapeutics aims to improve the lives of patients suffering from genetically-defined rare diseases by focusing on areas with high unmet medical needs. The company is subject to several risks similar to other biotechnology firms, including the risks of failure in clinical trials and preclinical studies, dependence on key personnel, protection of proprietary technology, compliance with government regulations, and the need for additional financing, among others.
The Form 10-K/A report provides valuable insight into the financial health and management of Fulcrum Therapeutics. The effective disclosure controls and procedures only serve to boost confidence in the company’s commitment towards transparency and regulatory compliance.
Income Statement
Financials in millions USD. Fiscal year is January – December. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|
| 0 | Revenue | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 1 | Revenue Growth (YoY) | -66.90% | 117.19% | – | – | – | – |
| 2 | Gross Profit | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 3 | Selling, General & Admin | 41.69 | 30.52 | 21.39 | 13.15 | 8.31 | 4.5 |
| 4 | Research & Development | 76.78 | 69.7 | 59.04 | 71.07 | 25.18 | 18.49 |
| 5 | Other Operating Expenses | 0.43 | 0 | 0 | 0 | 0 | 0 |
| 6 | Operating Expenses | 118.9 | 100.22 | 80.43 | 84.22 | 33.5 | 22.99 |
| 7 | Operating Income | -112.56 | -81.05 | -71.61 | -84.22 | -33.5 | -22.99 |
| 8 | Other Expense / Income | -2.69 | -0.21 | -0.79 | -1.54 | -0.91 | -0.03 |
| 9 | Pretax Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 10 | Net Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 11 | Preferred Dividends | 0 | 0 | 0 | 7.13 | 6.56 | 2.41 |
| 12 | Net Income Common | -109.87 | -80.85 | -70.82 | -89.81 | -39.15 | -25.37 |
| 13 | Shares Outstanding (Basic) | 45 | 35 | 25 | 11 | 1 | 1 |
| 14 | Shares Outstanding (Diluted) | 45 | 35 | 25 | 11 | 1 | 1 |
| 15 | Shares Change | 27.23% | 39.47% | 129.53% | 778.76% | 76.79% | – |
| 16 | EPS (Basic) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 17 | EPS (Diluted) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 18 | Free Cash Flow Per Share | -2.20 | -2.27 | -2.17 | -3.65 | -25.09 | -30.92 |
| 19 | Gross Margin | 100.00% | 100.00% | 100.00% | – | – | – |
| 20 | Operating Margin | -1774.85% | -422.97% | -811.64% | – | – | – |
| 21 | Profit Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
| 22 | Free Cash Flow Margin | -1561.23% | -418.47% | -623.34% | – | – | – |
| 23 | EBITDA | -107.46 | -78.33 | -68.44 | -80.62 | -31.24 | -22.25 |
| 24 | EBITDA Margin | -1694.37% | -408.77% | -775.70% | – | – | – |
| 25 | Depreciation & Amortization | 2.41 | 2.52 | 2.38 | 2.05 | 1.35 | 0.72 |
| 26 | EBIT | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 27 | EBIT Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
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