Name: Cytokinetics Inc. (NASDAQ:CYTK) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

Cytokinetics Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net loss	(388,955)	(215,314)	(127,290)	(121,692)	(106,289)
Non-cash interest expense on liabilities related to revenue participation right purchase agreement	31,858)	13,004)	22,792)	20,737)	17,767)
Stock-based compensation expense	47,853)	26,832)	17,620)	10,759)	9,761)
Non-cash lease expense	2,585)	7,361)	4,221)	3,552)	—)
Impairment of right-of-use assets	—)	2,844)	—)	—)	—)
Depreciation of property and equipment	5,814)	2,276)	1,831)	1,293)	1,239)
(Gain) loss on investment, net	107)	—)	(573)	—)	—)
Interest receivable and amortization on investments	(4,710)	4,894)	(1,194)	(2,587)	(1,677)
Non-cash interest expense related to debt	5,697)	7,125)	6,640)	919)	920)
Loss on extinguishment of debt	2,693)	—)	—)	—)	—)
Loss on inducement of convertible debt	22,246)	—)	—)	—)	—)
Accounts receivable	56,672)	(47,399)	743)	(2,932)	(1,119)
Contract assets	—)	—)	—)	4,554)	5,154)
Prepaid and other assets	(7,414)	(7,381)	(5,162)	(3,862)	1,817)
Accounts payable	4,524)	1,055)	(110)	4,396)	(1,490)
Accrued and other liabilities	10,844)	15,060)	7,117)	(2,168)	(2,063)
Contract liabilities	—)	—)	—)	—)	(18,750)
Deferred revenue	(87,000)	—)	87,000)	—)	(6,485)
Operating lease liabilities	1,728)	43,472)	(4,692)	(3,876)	—)
Other non-current liabilities	(4,058)	3,649)	—)	—)	—)
Changes in operating assets and liabilities	(24,704)	8,456)	84,896)	(3,888)	(22,936)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities	89,439)	72,792)	136,233)	30,785)	5,074)
Net cash provided by (used in) operating activities	(299,516)	(142,522)	8,943)	(90,907)	(101,215)
Purchases of investments	(855,393)	(525,042)	(435,825)	(277,883)	(240,224)
Maturities of investments	604,594)	422,837)	247,301)	202,599)	246,232)
Sales of investments	—)	3,300)	3,061)	3,196)	—)
Purchases of property and equipment	(11,335)	(48,872)	(11,052)	(2,619)	(889)
Sales of property and equipment	—)	—)	—)	—)	14)
Net cash (used in) provided by investing activities	(262,134)	(147,777)	(196,515)	(74,707)	5,133)
Repayment of finance lease liabilities	(944)	—)	—)	—)	—)
Repayment of term loan	(47,651)	—)	—)	—)	—)
Debt extinguishment costs	(2,409)	—)	—)	—)	—)
Repayment of convertible debt	(140,330)	—)	—)	—)	—)
Proceeds from issuance of convertible debt, net	523,586)	—)	—)	133,860)	—)
Proceeds from public offerings of common stock, net of discounts, commissions and offering cost	—)	296,905)	188,883)	—)	—)
Proceeds from private placement, net	—)	15,144)	36,225)	—)	—)
Proceeds from 2022 RPI Transactions, net	149,581)	—)	—)	—)	—)
Proceeds from issuance of common stock under equity incentive and stock purchase plans	17,543)	12,380)	9,120)	1,393)	3,234)
Taxes paid related to net share settlement of equity awards	(9,602)	(4,449)	(2,255)	—)	—)
Claims settlement under Section 16(b)	—)	—)	2,151)	—)	—)
Cash settlement of capped call options associated with 2026 Notes	26,392)	—)	—)	—)	—)
Net proceeds from long-term debt, net of debt discount and issuance costs	—)	—)	—)	1,710)	9,898)
Issuance of common stock under at-the-market offering, net of issuance costs	—)	—)	—)	36,214)	—)
Purchase of capped call options associated with convertible notes	—)	—)	—)	(13,386)	—)
Net cash provided by financing activities	516,166)	319,980)	234,124)	159,791)	13,132)
Net increase (decrease) in cash, cash equivalents, and restricted cash equivalents	(45,484)	29,681)	46,552)	(5,823)	(82,950)
Cash, cash equivalents, and restricted cash equivalents, beginning of period	112,666)	82,985)	36,433)	42,256)	125,206)
Cash, cash equivalents, and restricted cash equivalents, end of period	67,182)	112,666)	82,985)	36,433)	42,256)

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).

The financial trajectory between 2018 and 2022 is characterized by expanding operational losses funded primarily through aggressive capital raising activities. A consistent increase in net loss is observed, accelerating from -106.3 million US dollars in 2018 to -389.0 million US dollars in 2022. This operational deficit is mirrored in the net cash used in operating activities, which reached -299.5 million US dollars in 2022, indicating a significant increase in the company's cash burn rate.

Operational Cash Flow and Non-Cash Adjustments: A widening gap is evident between net loss and net cash used in operations, driven largely by non-cash expenses. Stock-based compensation expense has grown substantially, rising from 9.8 million US dollars in 2018 to 47.9 million US dollars in 2022, serving as a critical non-cash offset to the net loss. Non-cash interest expenses related to revenue participation rights and debt also contribute significantly to the reconciliation, particularly in 2022 when these combined expenses increased. The year 2020 represents a brief anomaly where net cash provided by operating activities turned positive (8.9 million US dollars), primarily due to a large increase in deferred revenue (87 million US dollars).
Investing Activities and Capital Allocation: Investing activities are dominated by high-volume movements in short-term investments. Purchases of investments increased steadily, peaking at 855.4 million US dollars in 2022, while maturities provided a corresponding inflow. Capital expenditures for property and equipment showed a sharp peak in 2021 at 48.9 million US dollars before receding to 11.3 million US dollars in 2022. Overall, net cash used in investing activities grew from a small surplus of 5.1 million US dollars in 2018 to a deficit of 262.1 million US dollars in 2022.
Financing Strategy and Capital Structure: Financing activities have been the primary source of liquidity to sustain operations. There is a clear shift in funding mechanisms; while 2020 and 2021 relied heavily on public offerings of common stock (totalling approximately 485.8 million US dollars across those two years), 2022 saw a strategic pivot toward convertible debt. In 2022, proceeds from the issuance of convertible debt reached 523.6 million US dollars, which funded the repayment of existing convertible debt (140.3 million US dollars) and term loans (47.7 million US dollars). Net cash provided by financing activities increased dramatically over the period, ending at 516.2 million US dollars in 2022.
Liquidity Position: The cash position has remained volatile. Cash and equivalents ended 2018 at 42.3 million US dollars and peaked at 112.7 million US dollars by the end of 2021. However, despite the massive financing inflows in 2022, the combined impact of increased operational burn and investing outflows led to a net decrease in cash of 45.5 million US dollars during that year, resulting in a closing balance of 67.2 million US dollars.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?