MNKD 2017 Annual Report

MANNKIND CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total (In thousands) BALANCE, JANUARY 1, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,212 $ 812 $2,420,216 $ (14) $(2,494,784) $ (73,770) Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340 3 3,255 — — 3,258 Issuance of common shares from the release of restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 1 (1) — — 0 Issuance of common shares pursuant to warrant exercises . . . . 843 8 10,115 — — 10,123 Issuance of common shares under Employee Stock Purchase Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 1 886 — — 887 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . — — 8,725 — — 8,725 Restricted stock units taxes paid in cash . . . . . . . . . . . . . . . . . . — — (1,856) — — (1,856) Capital contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 40 — — 40 Issuance of common shares pursuant to conversions of certain 2015 notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 4 7,922 — — 7,926 Issuance of common stock for lender financing fees . . . . . . . . 8 — 160 — — 160 Discount on notes-for-stock exchange . . . . . . . . . . . . . . . . . . . — — 169 — — 169 Issuance of common stock pursuant to TASE stock sale . . . . . 2,771 28 34,682 — — 34,710 Return of loaned common stock . . . . . . . . . . . . . . . . . . . . . . . . (1,800) (18) 18 — — — Issuance of common stock pursuant to at-the-market issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,788 18 27,825 — — 27,843 Issuance of warrant liability . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (202) — — (202) Reclassification of warrant liability to equity . . . . . . . . . . . . . . — — 109 — — 109 Cumulative translation loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (6) — (6) Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (368,445) (368,445) BALANCE, DECEMBER 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . 85,735 857 2,512,063 (20) (2,863,229) (350,329) Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 1 466 — — 467 Issuance of common shares from the release of restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 1 (1) — — 0 Issuance of common shares under Employee Stock Purchase Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1 425 — — 426 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . — — 5,135 — — 5,135 Restricted stock units taxes paid in cash . . . . . . . . . . . . . . . . . . — — (165) — — (165) Issuance of direct placement — common stock and warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,709 97 49,903 — — 50,000 Issuance costs associated with direct placement . . . . . . . . . . . . — — (2,037) — — (2,037) Proceeds allocated to warrant liabilities . . . . . . . . . . . . . . . . . . — — (12,750) — — (12,750) Cumulative translation loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (4) — (4) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 125,664 125,664 BALANCE, DECEMBER 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . 95,681 957 2,553,039 (24) (2,737,565) (183,593) Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 0 24 — — 24 Issuance of common shares from the release of restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 2 (1) — — 1 Issuance of common shares under Employee Stock Purchase Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 1 235 — — 236 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . — — 4,847 — — 4,847 Restricted stock units taxes paid in cash . . . . . . . . . . . . . . . . . . — — (127) — — (127) Issuance of shares pursuant to conversion of notes . . . . . . . . . . 11,496 115 20,984 — — 21,099 Issuance of direct placement — common stock . . . . . . . . . . . . 10,167 102 60,898 — — 61,000 Issuance costs associated with direct placement . . . . . . . . . . . . — — (3,310) — — (3,310) Issuance of ATM placement . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 2 562 — — 564 Issuance costs associated with ATM placement . . . . . . . . . . . . — — (17) — — (17) Reclassification of warrant liability to equity . . . . . . . . . . . . . . 1,293 13 1,880 — — 1,893 Amortization of shelf fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (22) — — (22) Cumulative translation loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 6 — 6 Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (117,333) (117,333) BALANCE, DECEMBER 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . 119,053 $1,192 $2,638,992 $ (18) $(2,854,898) $(214,732) See notes to consolidated financial statements. 82