KNSY » Topics » General

This excerpt taken from the KNSY 10-Q filed May 11, 2009.

General

We plan to continue to increase our research and development activities for our biomaterials products and continue our research and development activities for our endovascular products based on our development contract with Spectranetics. Because we sold our endovascular product lines to Spectranetics, the portion of our operating expense specifically related to endovascular sales and marketing efforts has been eliminated in fiscal 2009.

We believe our current cash and investment balances and expected future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

Presented below is a summary of our contractual obligations as of March 31, 2009:

 

     Payments Due by Period
Contractual Obligations    Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($35 million)

   $ 58,849,595    $ 3,521,974    $ 6,780,021    $ 6,398,741    $ 42,148,859

Purchase Obligations:

              

Contractual Commitments for Capital

              

Expenditures (2)(3)

     278,220      278,220      —        —        —  

FIN 48 Tax Obligations (4)

     5,267      5,267      —        —        —  
                                  

Total Contractual Obligations

   $ 59,133,082    $ 3,805,461    $ 6,780,021    $ 6,398,741    $ 42,148,859
                                  

 

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These obligations are related to the Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

 

  (1) The long-term debt obligations consist of principal and interest on the Mortgage outstanding principal balance of $33.1 million as of March 31, 2009. In accordance with U.S. GAAP, the interest obligations are not recorded on our Condensed Consolidated Balance Sheet. See Note 9 to the Condensed Consolidated Financial Statements included in this Form 10-Q.

 

  (2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.

 

  (3) In accordance with U.S. GAAP, these obligations are not recorded on our Condensed Consolidated Balance Sheets.

 

  (4) Liabilities for uncertain tax positions in the aggregate amount of $140,130 have been omitted from the table above due to an inability to reliably estimate the period of cash settlement of these liabilities.
This excerpt taken from the KNSY 10-Q filed Feb 9, 2009.

General

We plan to continue to increase our research and development activities for our biomaterial products and continue our research and development activities for our endovascular products based on our development contract with Spectranetics. Because we sold our endovascular product lines to Spectranetics, the portion of our operating expense specifically related to endovascular sales and marketing efforts has been eliminated in fiscal 2009.

We believe our current cash and investment balances and expected future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

 

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The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

Presented below is a summary of our contractual obligations as of December 31, 2008:

 

     Payments Due by Period
      Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Contractual Obligations

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($35 million)

   $ 59,730,892    $ 3,555,763    $ 6,807,925    $ 6,448,475    $ 42,918,729

Purchase Obligations:

              

Contractual Commitments for Capital Expenditures (2)(3)

     1,354,456      1,354,456      —        —        —  

FIN 48 Tax Obligations (4)

     33,164      33,164      —        —        —  
                                  

Total Contractual Obligations

   $ 61,118,512    $ 4,943,383    $ 6,807,925    $ 6,448,475    $ 42,918,729
                                  

 

These obligations are related to the Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

 

(1) The long-term debt obligations consist of principal and interest on the Mortgage of $33.5 million as of December 31, 2008. In accordance with U.S. GAAP, the interest obligations are not recorded on our Condensed Consolidated Balance Sheet. See Note 9 to the Condensed Consolidated Financial Statements included in this Form 10-Q.
(2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.
(3) In accordance with U.S. GAAP, these obligations are not recorded on our Condensed Consolidated Balance Sheets.
(4) Liabilities for uncertain tax positions in the aggregate amount of $144,672 have been omitted from the table above due to an inability to reliably estimate the period of cash settlement of these liabilities.

 

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This excerpt taken from the KNSY 10-Q filed Nov 10, 2008.

General

We plan to continue to increase our research and development activities for our biomaterial products and increase our research and development activities for our endovascular products based on our development contract with Spectranetics. Because we sold our endovascular product lines to Spectranetics, the portion of our operating expense specifically related to endovascular sales and marketing efforts will be eliminated in fiscal 2009.

We believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

 

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Presented below is a summary of our contractual obligations as of September 30, 2008:

 

     Payments Due by Period
Contractual Obligations    Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($35 million)

   $ 60,635,815    $ 3,567,305    $ 6,865,590    $ 6,494,515    $ 43,708,405

Purchase Obligations:

              

Contractual Commitments for Capital Expenditures (2)(3)

     1,475,190      1,475,190      —        —        —  

FIN 48 Tax Obligations (4)

     69,143      69,143      —        —        —  
                                  

Total Contractual Obligations

   $ 62,180,148    $ 5,111,638    $ 6,865,590    $ 6,494,515    $ 43,708,405
                                  

These obligations are related to the Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

 

(1) The long-term debt obligations consist of principal and interest on the Mortgage of $33.8 million as of September 30, 2008. In accordance with U.S. GAAP, the interest obligations are not recorded on our Condensed Consolidated Balance Sheet. See Note 9 to the Condensed Consolidated Financial Statements included in this Form 10-Q.
(2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.
(3) In accordance with U.S. GAAP, these obligations are not recorded on our Condensed Consolidated Balance Sheet.
(4) Liabilities for uncertain tax positions in the aggregate amount of $134,039 have been omitted from the table above due to an inability to reliably estimate the period of cash settlement of these liabilities.

 

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These excerpts taken from the KNSY 10-K filed Sep 15, 2008.

General

We plan to continue to increase our research and development activities for our biomaterial products and increase our research and development activities for our endovascular products based on our development contract with Spectranetics. Since we have sold our Endovascular product lines to Spectranetics, the portion of our operating expense specifically related to sales and marketing efforts will be virtually eliminated in fiscal 2009.

We believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

 

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General

We plan to
continue to increase our research and development activities for our biomaterial products and increase our research and development activities for our endovascular products based on our development contract with Spectranetics. Since we have sold our
Endovascular product lines to Spectranetics, the portion of our operating expense specifically related to sales and marketing efforts will be virtually eliminated in fiscal 2009.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing, and
capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products;
the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical
trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other
intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

FACE="Times New Roman" SIZE="2">The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of
action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us,
or will be available to us on acceptable terms, should such a need arise.

 


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This excerpt taken from the KNSY 10-Q filed May 9, 2008.

General

We plan to continue to increase our research and development activities for our biomaterial products. As we have disclosed, we continue to investigate strategic alternatives for our endovascular business. If we complete our evaluation and select an alternative strategic option, such a decision could result in changes in our cash balances and our corporate objectives related to investments in research and development and sales and marketing for the endovascular product platform.

We believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

Presented below is a summary of our contractual obligations as of March 31, 2008:

 

     Payments Due by Period
Contractual Obligations    Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($35 million)

   $ 62,462,918    $ 3,613,323    $ 6,952,494    $ 6,591,959    $ 45,305,142

Purchase Obligations:

              

Contractual Commitments for Capital Expenditures (2)(3)

     77,821      77,821      —        —        —  

FIN 48 Tax Obligations (4)

     274,080      274,080      —        —        —  
                                  

Total Contractual Obligations

   $ 62,814,819    $ 3,965,224    $ 6,952,494    $ 6,591,959    $ 45,305,142
                                  

 

These obligations are related to the Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

 

(1) The long-term debt obligations consist of principal and interest on the Mortgage of $35.0 million as of March 31, 2008. See Note 9 (Debt) to the Condensed Consolidated Financial Statements included in this 10-Q.
(2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.
(3) In accordance with Generally Accepted Accounting Principles in the United States (GAAP), these obligations are not recorded on our Condensed Consolidated Balance Sheet.
(4) Liabilities for uncertain tax positions in the amount of $155,994 have been omitted from the table above due to an inability to reliably estimate the period of cash settlement of the liabilities.
This excerpt taken from the KNSY 10-Q filed Feb 11, 2008.

General

We plan to continue to increase our research and development activities for our biomaterials and current endovascular products. We also expect to continue to invest in sales and marketing efforts toward the success of the endovascular product platform.

We believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing, and capital requirements for the next 12 months. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, future clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms, should such a need arise.

 

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Presented below is a summary of our contractual obligations as of December 31, 2007:

 

     Payments Due by Period
Contractual Obligations    Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($35 million)

   $ 62,964,417    $ 3,605,163    $ 6,939,847    $ 6,579,207    $ 45,840,200

Purchase Obligations:

              

Contractual Commitments for Capital Expenditures (2)(3)

     742,969      742,969      —        —        —  

FIN 48 Tax Obligations (4)

     270,527      270,527      —        —        —  
                                  

Total Contractual Obligations

   $ 63,977,913    $ 4,618,659    $ 6,939,847    $ 6,579,207    $ 45,840,200
                                  

These obligations are related to the Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

 

(1) The long-term debt obligations consist of principal and interest on the Mortgage of $35.0 million as of December 31, 2007. See Note 9 (Debt) to the Condensed Consolidated Financial Statements included in this 10-Q.
(2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.
(3) In accordance with Generally Accepted Accounting Principles in the United States (GAAP), these obligations are not recorded on our Condensed Consolidated Balance Sheet.
(4) Liabilities for uncertain tax positions in the amount of $155,994 have been omitted from the table above due to an inability to reliably estimate the period of cash settlement of the liabilities.
This excerpt taken from the KNSY 10-K filed Sep 13, 2007.

General

We plan to invest in our sales team as well as increase spending on our marketing efforts for our endovascular product platform. Due to our investment in our endovascular product lines, we expect our sales and marketing expenses to continue to increase over the next twelve months. In addition, we expect to continue to spend on research and development dollars to continue to expand research and development activities for our endovascular and biomaterials products.

In addition to increased cash requirements for operations, we granted cash-settled SAR awards to eligible employees during the quarter ended September 30, 2006. Each award, when granted, provides the participant with the right to receive payment in cash, upon exercise, for the appreciation in market value of a share of our Common Stock over the award’s exercise price. The exercise price of a SAR is equal to the closing market price of our Common Stock on the date of grant. SARs are exercisable over a maximum term of five years from the date of grant and vest over a period of three years from the grant date. The first of these grants will vest during our quarter ended September 30, 2007. We cannot predict the market value of our Common Stock at the time of exercise for these grants, nor the magnitude of exercises at any particular time over the term of these grants.

While we believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing and capital requirements for at least the next 12 months, we also have the ability to draw down on the Secured Commercial Mortgage, a remaining $27.0 million or an aggregate maximum amount of $35.0 million. See Note 14 (Debt). We plan to draw the remaining balance on or before the expiration of the draw period on November 25, 2007.

Although we believe our cash and investment balances will also be sufficient on a longer term basis, that sufficiency will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions

 

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prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms should such a need arise.

This excerpt taken from the KNSY 10-Q filed May 10, 2007.

General

We plan to continue to spend substantial amounts to fund clinical trials to gain regulatory approvals and to continue to expand research and development activities for our endovascular and biomaterials products. Our sales and marketing expenses are expected to increase substantially as we continue to invest in the building of our U.S. sales team and increased marketing efforts toward the success of the endovascular product platform.

 

29


In addition to increased cash requirements for operations, we granted cash-settled SAR awards to eligible employees during the quarter ended September 30, 2006. Each award, when granted, provides the participant with the right to receive payment in cash, upon exercise, for the appreciation in market value of a share of our Common Stock over the award’s exercise price. The exercise price of a SAR is equal to the closing market price of our Common Stock on the date of grant. SARs are exercisable over a maximum term of five years from the date of grant and vest over a period of three years from the grant date. The first of these grants will vest during our quarter ended September 30, 2007. We cannot predict the market value of our Common Stock at the time of exercise for these grants, nor the magnitude of exercises at any particular time over the term of these grants.

While we believe our current cash and investment balances and future cash generated from operations will be sufficient to meet our operating, financing and capital requirements for at least the next 12 months, we also have the ability to draw down on the Secured Commercial Mortgage, a remaining $27 million or up to an aggregate maximum amount of $35 million. See Note 9 (Debt) to the Condensed Consolidated Financial Statements included herein. Although we believe our cash and investment balances will also be sufficient on a longer term basis, that will depend on numerous factors, including: market acceptance of our existing and future products; the successful commercialization of products in development; the costs associated with that commercialization; progress in our product development efforts; the magnitude and scope of such efforts; progress with pre-clinical studies, clinical trials and product clearance by the FDA and other agencies; the cost and timing of our efforts to expand our manufacturing, sales, and marketing capabilities; the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights; competing technological and market developments; and the development of strategic alliances for the marketing of certain of our products.

The terms of any future equity financing we undertake may be dilutive to our stockholders and the terms of any debt financing may contain restrictive covenants that limit our ability to pursue certain courses of action. Our ability to obtain financing is dependent on the status of our future business prospects, as well as conditions prevailing in the relevant capital markets. No assurance can be given that any additional financing will be available to us, or will be available to us on acceptable terms should such a need arise.

Presented below is a summary of our contractual obligations as of March 31, 2007:

 

     Payments Due by Period
Contractual Obligations    Total    Less than 1
year
   1-3 years    3-5 years    More than 5
years

Long-Term Debt Obligations (1):

              

Secured Commercial Mortgage ($8 million)

   $ 15,542,099    $ 621,867    $ 1,670,400    $ 1,670,400    $ 11,579,432

Remaining $27 million draw (3)

     48,070,285      935,843      5,404,687      5,044,047      36,685,708
                                  

Subtotal Long-Term Debt Obligations

     63,612,384      1,557,710      7,075,087      6,714,447      48,265,140

Purchase Obligations:

              

Contractual Commitments for Capital Expenditures (2)(3)

     486,567      486,567      —        —        —  
                                  

Total Contractual Obligations

   $ 64,098,950    $ 2,044,277    $ 7,075,087    $ 6,714,447    $ 48,265,140
                                  

These obligations are related to our Secured Commercial Mortgage and agreements to purchase goods or services that are enforceable and legally binding.

(1) The long-term debt obligations consist of principal and interest on our secured commercial mortgage, currently $8.0 million, plus the remaining $27 million available under the mortgage, which we intend to draw before November 25, 2007. See Note 9 (Debt) to the Condensed Consolidated Financial Statements included herein.
(2) These obligations consist of open purchase orders for capital items primarily for the continued expansion of our research and development and manufacturing capabilities.

 

30


(3) In accordance with Generally Accepted Accounting Principles in the United States (GAAP), these obligations are not recorded on our consolidated balance sheet.
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