Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Cytokinetics Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	25,611)	21,087)	8,050)	8,160)	3,764)
Clinical and preclinical costs	16,105)	13,872)	6,124)	2,215)	8,618)
Compensation related	21,767)	14,930)	11,787)	8,343)	6,118)
Other accrued expenses	6,224)	5,568)	1,404)	1,565)	1,021)
Accrued liabilities	44,096)	34,370)	19,315)	12,123)	15,757)
Current portion of term loan	—)	—)	—)	—)	2,607)
Short-term operating lease liabilities	12,829)	14,863)	2,785)	4,616)	—)
Short-term finance lease liabilities	1,000)	500)	—)	—)	—)
Other current liabilities	1,081)	1,040)	1,049)	1,124)	66)
Current liabilities	84,617)	71,860)	31,199)	26,023)	22,194)
Term loan, net, excluding current portion	63,810)	47,367)	46,209)	45,052)	39,806)
Convertible notes, net	545,808)	95,471)	89,504)	84,205)	—)
Liabilities related to revenue participation right purchase agreements, net	300,501)	179,072)	166,068)	143,276)	122,473)
Long-term deferred revenue	—)	87,000)	87,000)	—)	—)
Long-term operating lease liabilities	126,895)	112,229)	440)	2,195)	—)
Long-term finance lease liabilities	1,001)	805)	—)	—)	—)
Other non-current liabilities	43)	3,652)	—)	—)	771)
Non-current liabilities	1,038,058)	525,596)	389,221)	274,728)	163,050)
Total liabilities	1,122,675)	597,456)	420,420)	300,751)	185,244)
Preferred stock, $0.001 par value; issued and outstanding: none	—)	—)	—)	—)	—)
Common stock, $0.001 par value	94)	84)	70)	59)	55)
Additional paid-in capital	1,481,590)	1,452,268)	1,105,470)	853,341)	768,703)
Accumulated other comprehensive income (loss)	(3,590)	(869)	149)	679)	500)
Accumulated deficit	(1,585,994)	(1,207,620)	(992,306)	(865,016)	(743,324)
Stockholders’ equity (deficit)	(107,900)	243,863)	113,383)	(10,937)	25,934)
Total liabilities and stockholders’ equity (deficit)	1,014,775)	841,319)	533,803)	289,814)	211,178)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Accounts Payable: The accounts payable showed a steady increase over the five-year period, rising from $3.76 million in 2018 to $25.61 million in 2022. This indicates growing short-term obligations to suppliers or vendors.
Clinical and Preclinical Costs: Clinical and preclinical costs fluctuated significantly, starting at $8.62 million in 2018, dropping sharply to $2.22 million in 2019, then increasing again to $16.11 million by 2022. This suggests variable investment in early-stage and ongoing clinical research activities.
Compensation Related Expenses: Compensation related expenses demonstrated a consistent upward trend, increasing from $6.12 million in 2018 to $21.77 million in 2022, indicating expansion in workforce or rising personnel costs.
Other Accrued Expenses: Other accrued expenses increased modestly over the period, from $1.02 million in 2018 to $6.22 million in 2022, reflecting a gradual buildup of miscellaneous liabilities.
Accrued Liabilities: Accrued liabilities rose notably from $15.76 million in 2018 to $44.10 million in 2022, indicating an overall increase in short-term obligations accrued by the company.
Current Portion of Term Loan: This liability was reported only in 2018 at $2.61 million and was absent in subsequent years, possibly due to repayment or reclassification.
Short-Term Operating Lease Liabilities: Short-term operating lease liabilities appeared from 2019 onwards, peaking at $14.86 million in 2021 and slightly decreasing to $12.83 million in 2022, signaling significant lease obligations within current liabilities.
Short-Term Finance Lease Liabilities: These liabilities were recorded only in 2021 and 2022 at $0.50 million and $1.00 million respectively, indicating relatively small finance lease obligations.
Other Current Liabilities: Other current liabilities grew from $0.07 million in 2018 to about $1.08 million by 2022, a small portion of total current liabilities.
Current Liabilities: Total current liabilities increased dramatically, nearly quadrupling from $22.19 million in 2018 to $84.62 million in 2022. This highlights expanding short-term obligations.
Term Loan, Net, Excluding Current Portion: Long-term term loan liabilities incrementally rose from $39.81 million in 2018 to $63.81 million in 2022, indicating increased long-term debt financing.
Convertible Notes, Net: Convertible notes commenced reporting in 2019 at $84.21 million, gradually increased up to $95.47 million in 2021, then spiked sharply to $545.81 million in 2022, suggesting large new issuances or conversions impacting long-term debt.
Liabilities Related to Revenue Participation Right Purchase Agreements, Net: These liabilities showed a steady increase from $122.47 million in 2018 to $300.50 million in 2022, growing to form a major component of non-current liabilities.
Long-Term Deferred Revenue: Long-term deferred revenue was only recorded in 2020 and 2021 at $87.00 million and absent before and after these years, indicating specific recognized deferred revenue in those periods.
Long-Term Operating Lease Liabilities: These lease liabilities appeared in 2019 and sharply increased to $126.90 million by 2022, reflecting significant long-term lease commitments.
Long-Term Finance Lease Liabilities: The finance lease liabilities appeared in 2021 at $0.81 million and increased slightly to $1.00 million by 2022, a minor long-term obligation.
Other Non-Current Liabilities: Other non-current liabilities were minimal, fluctuating from $0.77 million in 2018 to $0.04 million in 2022, with a peak in 2021 at $3.65 million.
Non-Current Liabilities: Non-current liabilities grew substantially from $163.05 million in 2018 to $1.04 billion in 2022, primarily driven by convertible notes, revenue participation liabilities, and lease obligations.
Total Liabilities: Total liabilities showed a consistent upward trend, increasing over sixfold from $185.24 million in 2018 to $1.12 billion in 2022, reflecting growing financial obligations.
Common Stock: Common stock par value incrementally increased from $0.06 million in 2018 to $0.09 million in 2022, indicating modest issuance or capitalization adjustments.
Additional Paid-in Capital: Additional paid-in capital grew steadily from $768.70 million in 2018 to $1.48 billion in 2022, demonstrating significant equity financing activities.
Accumulated Other Comprehensive Income (Loss): This figure started positive at $0.50 million in 2018, declined steadily and turned negative by 2021, reaching a loss of $3.59 million in 2022, suggesting unfavorable comprehensive income components.
Accumulated Deficit: Accumulated deficit increased from a loss of $743.32 million in 2018 to a loss of $1.59 billion in 2022, indicating extensive cumulative losses over the examined period.
Stockholders’ Equity (Deficit): Stockholders’ equity exhibited volatility, starting positive at $25.93 million in 2018, turning negative in 2019 at -$10.94 million, improving substantially to $243.86 million in 2021, then declining sharply to a deficit of $107.90 million in 2022.
Total Liabilities and Stockholders’ Equity (Deficit): This total increased markedly from $211.18 million in 2018 to over $1.01 billion in 2022, predominantly reflecting the rapid growth in liabilities and shifts in equity.

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Cytokinetics Inc. (NASDAQ:CYTK)

Balance Sheet: Liabilities and Stockholders’ Equity