MBRX » Topics » Other Income (Expense).

This excerpt taken from the MBRX 10-Q filed May 15, 2009.

Other Income (Expense)

Other income, net includes interest earned on our cash, cash equivalents and securities available-for-sale, net of interest expense.

These excerpts taken from the MBRX 10-K filed Mar 31, 2009.

Other Income (Expense)

Other income, net includes interest earned on our cash, cash equivalents and securities available-for-sale, net of interest expense.

Other Income (Expense)

FACE="Times New Roman" SIZE="2">Other income, net includes interest earned on our cash, cash equivalents and securities available-for-sale, net of interest expense.

FACE="Times New Roman" SIZE="2">Critical Accounting Policies

Our discussion and analysis of our financial condition and results of
operations are based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of these financial statements requires us to make estimates and judgments that
affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. We review our estimates on an on-going basis. We base our estimates on historical experience and on various other
assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from

 


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these estimates under different assumptions or conditions. We believe the following accounting policies to be critical to the judgments and estimates used in
the preparation of our financial statements.

Revenue Recognition. Our revenue recognition policies are in accordance with
Securities and Exchange Commission Staff Accounting Bulletin, or SAB, No. 104, Revenue Recognition and Emerging Issues Task Force, or EITF, Issue 00-21, Revenue Arrangements with Multiple Deliverables. Our agreements
generally contain multiple elements, including access to our proprietary HepDirect technology and research and development services. Payments under our collaborations are generally made in the form of up-front license fees, milestone payments and
downstream royalties. All fees are nonrefundable. Revenue from milestones is recognized when earned, provided that:

 







  

the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement, and

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collaborator funding, if any, of our performance obligations after the milestone achievement will continue at a level comparable to before the milestone
achievement.

If both of these criteria are not met, the milestone payment is recognized over the remaining minimum
period of our performance obligations under the agreement. Up-front, nonrefundable fees under our collaborations are recognized over the period the related services are provided. Nonrefundable upfront fees not associated with our future performance
are recognized when received. Amounts received for sponsored research funding are recognized as revenues as the services are performed. Amounts received for sponsored research funding for a specific number of full-time researchers are recognized as
revenue as the services are provided, as long as the amounts received are not refundable regardless of the results of the research project.

SIZE="2">Clinical Trial Expenses. Our clinical trials are often conducted under contracts with multiple research institutions and clinical research organizations that conduct and manage clinical trials on our behalf. The financial terms of
these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Generally, these agreements set forth the scope of work to be performed at a fixed fee or unit price. Payments under the contracts
depend on factors such as the successful enrollment of patients or the completion of clinical trial milestones. Expenses related to clinical trials generally are accrued based on contracted amounts applied to the actual level of patient enrollment
and activity according to the protocol. Other incidental costs related to patient enrollment are accrued when known. If contracted amounts are modified based upon changes in the clinical trial protocol or scope of work to be performed, we modify our
accruals accordingly on a prospective basis.

Stock-Based Compensation. We grant equity based awards under three
stockholder-approved share-based compensation plans. We may grant options and restricted stock awards to employees, directors and consultants under our Amended and Restated 2001 Equity Incentive Plan. We also grant awards to non-employee directors
under our 2004 Non-Employee Directors’ Stock Option Plan. All of our employees are eligible to participate in our 2004 Employee Stock Purchase Plan which provides a means for employees to purchase common stock at a discount through payroll
deductions. The benefits provided under all of these plans are subject to the provisions of SFAS No. 123R which we adopted effective January 1, 2006. As of December 31, 2008, we had approximately $5.5 million of unrecognized
compensation expense which we expect to recognize over a weighted average period of 2.5 years.

We estimate the fair value of stock
options granted using the Black-Scholes Merton, or Black-Scholes, option valuation model. This fair value is then amortized over the requisite service periods of the awards. The Black-Scholes option valuation model requires the input of subjective
assumptions, including the option’s expected life and price volatility of the underlying stock. Expected volatility is based on the weighted average volatility of our stock factoring in daily share price observations and the historical price
volatility of certain peers within our industry sector. In computing expected volatility, the length of the historical period used is equal to the length of the expected term of the option and the share purchase right. The expected life of employee
stock options represents the average of the contractual term of the options and the weighted average vesting period, as permitted under the simplified method, under SAB No. 107.

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As stock-based compensation expense is based on awards ultimately expected to vest, it has been reduced
for estimated forfeitures. SFAS No. 123R requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on
historical experience. We may elect to use different assumptions under the Black-Scholes option valuation model in the future, which could materially affect our net loss and net loss per share.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Restructuring Charges. In accounting for restructuring charges we consider the primary elements to our restructuring plans: one-time termination
benefits and the discontinued use or abandonment of any assets. We recognize the fair value of one-time termination benefits when we have taken actions or have the appropriate approval for taking action, and when a liability is incurred (when the
plan has been communicated to employees). If employees are required to render service beyond a 60-day minimum retention period, the fair value of the obligation is determined on the date of the communication to the employee and recognized over the
service period. We recognize charges for the abandonment of assets in the period we cease to use the assets. We recognize the cumulative effect of any changes to the plan subsequent to the communication date and cease-use date in the period of the
change.

This excerpt taken from the MBRX 10-Q filed Nov 10, 2008.
Other Income (Expense).    Net interest income was $0.1 million for the nine months ended September 30, 2008, compared to net interest income of $2.1 million for the nine months ended September 30, 2007. The $2.0 million decrease was a result of lower cash balances in the first nine months of 2008 as compared to the first nine months of 2007 as well as interest expense incurred in 2008 as a result of the long-term debt acquired in March 2008.

 

This excerpt taken from the MBRX 10-Q filed Aug 11, 2008.
Other Income (Expense).    Net interest income was $0.2 million for the six months ended June 30, 2008, compared to net interest income of $1.6 million for the six months ended June 30, 2007. The $1.4 million decrease was a result of lower cash balances in the first half of 2008 as compared to the first half of 2007 as well as interest expense incurred in the first half of 2008 as a result of the long-term debt acquired in March 2008.

 

This excerpt taken from the MBRX 10-Q filed May 2, 2008.
Other Income (Expense).    Net interest income was $0.2 million for the three months ended March 31, 2008, compared to net interest income of $0.8 million for the three months ended March 31, 2007. The $0.6 million decrease was a result of lower cash balances in the first quarter of 2008 as compared to the first quarter of 2007.

 

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This excerpt taken from the MBRX 10-Q filed Nov 7, 2007.
Other Income (Expense).    Net interest income was $2.1 million for the nine months ended September 30, 2007, compared to net interest income of $2.6 million for the nine months ended September 30, 2006. The $0.5 million decrease was a result of lower cash balances during the first nine months of 2007 as compared to the first nine months of 2006.

 

This excerpt taken from the MBRX 10-Q filed Aug 6, 2007.
Other Income (Expense).    Net interest income was $1.6 million for both the six months ended June 30, 2007 and 2006 due to having similar average cash balances over the first six months of 2007 as compared to the first six months of 2006.

This excerpt taken from the MBRX 10-Q filed May 4, 2007.
Other Income (Expense)

Other income (expense) includes interest earned on our cash, cash equivalents and securities available-for-sale, net of interest expense on capital lease obligations.

This excerpt taken from the MBRX 10-Q filed Nov 6, 2006.

Other Income (Expense)

Other income (expense) includes interest earned on our cash, cash equivalents and securities available-for-sale, net of interest expense on capital lease obligations.

This excerpt taken from the MBRX 10-Q filed Aug 11, 2006.
Other Income (Expense).    Net interest income was $1.6 million for the six months ended June 30, 2006, compared to net interest income of $403,000 for the six months ended June 30, 2005. The $1.2 million increase was a result of interest received on higher average cash balances for the six months ended June 30, 2006 as compared to the same period in 2005 as well as higher yields on investments.  Our cash balances were higher in the first half of 2006 as compared to the first half of 2005 due to the net proceeds from our October 2005 and March 2006 stock offerings.

This excerpt taken from the MBRX 10-Q filed May 11, 2006.
Other Income (Expense).    Net interest income was $600,000 for the three months ended March 31, 2006, compared to net interest income of $205,000 for the three months ended March 31, 2005. The $395,000 increase was a result of higher investment yields in the first quarter of 2006 as well as higher levels of invested cash from the proceeds of our financing in October 2005.

 

This excerpt taken from the MBRX 10-Q filed Nov 14, 2005.
Other Income (Expense).    Net interest income was $611,000 for the nine months ended September 30, 2005, compared to net interest income of $135,000 for the nine months ended September 30, 2004. The $476,000 increase was a result of higher investment yields in 2005 as well as higher levels of invested cash from the proceeds of our initial public offering in June 2004.

 

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