MNKD 2017 Annual Report

MANNKIND CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 2017 2016 2015 (In thousands except per share data) Revenues: Net revenue - commercial product sales . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,192 $ 1,895 $ — Net revenue - collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 171,965 — Revenue - other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,303 898 — Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,745 174,758 — Expenses: Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,228 17,121 64,745 Cost of revenue - collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 32,971 — Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,118 14,917 29,674 Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,959 46,928 40,960 Property and equipment impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 1,259 140,412 Loss (gain) on foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . 13,641 (3,433) 2,697 (Gain) loss on purchase commitments . . . . . . . . . . . . . . . . . . . . . . . . . . (215) (2,265) 66,167 Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,934 107,498 344,655 (Loss) income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (108,189) 67,260 (344,655) Other (expense) income: Change in fair value of warrant liability . . . . . . . . . . . . . . . . . . . . . . . . . 5,488 5,369 — Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 85 18 Interest expense on notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,494) (15,576) (21,231) Interest expense on note payable to principal stockholder . . . . . . . . . . . (3,782) (2,901) (2,894) (Loss) gain on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . (1,611) 72,024 (1,049) Other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 (597) 1,366 Total other (expense) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,093) 58,404 (23,790) (Loss) income before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . (117,282) 125,664 (368,445) Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 — — Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(117,333) $125,664 $(368,445) Net (loss) income per share - basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.13) $ 1.37 $ (4.54) Net (loss) income per share - diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1.13) $ 1.36 $ (4.54) Shares used to compute basic net (loss) income per share . . . . . . . . . . . . . . . 104,245 92,053 81,233 Shares used to compute diluted net (loss) income per share . . . . . . . . . . . . . . 104,245 92,085 81,233 See notes to consolidated financial statements. 80