MNKD 2017 Annual Report

MANNKIND CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2017 2016 2015 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(117,333) $ 125,664 $(368,445) Adjustments to reconcile net (loss) income to net cash used in operating activities: Depreciation, amortization and accretion . . . . . . . . . . . . . . . . . . . 3,528 4,158 13,276 Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . 4,847 5,135 8,725 Change in fair value of warrant liability . . . . . . . . . . . . . . . . . . . . (5,488) (5,369) — Loss (gain) on foreign currency translation . . . . . . . . . . . . . . . . . . 13,641 (3,433) 2,697 Loss (gain) on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . 1,611 (72,024) 1,049 Interest incurred through borrowings under Sanofi Loan Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4,478 1,652 Interest on note payable to principal stockholder . . . . . . . . . . . . . 3,782 2,901 2,894 Series A warrant issuance cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 653 — Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 19 — (Gain) loss on sale, abandonment/disposal or impairment of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 1,259 140,582 (Gain) loss on purchase commitments . . . . . . . . . . . . . . . . . . . . . . (215) (2,265) 66,167 Write-off of inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,971 — 36,104 Changes in operating assets and liabilities: Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,487) (302) — Receivable from Sanofi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,557 (30,534) — Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,297) (2,331) (26,434) Receivable from collaboration . . . . . . . . . . . . . . . . . . . . . . . . — — 50,413 Deferred costs from commercial product sales . . . . . . . . . . . (96) (309) — Deferred costs from collaboration . . . . . . . . . . . . . . . . . . . . . — 13,539 (13,539) Prepaid expenses and other current assets . . . . . . . . . . . . . . . 1,354 (346) 13,481 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 361 150 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800 (12,118) 8,413 Accrued expenses and other current liabilities . . . . . . . . . . . . 2,932 348 (12,467) Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (381) 3,419 — Deferred payments from collaboration . . . . . . . . . . . . . . . . . (250) (134,056) 950 Deferred sales from collaboration . . . . . . . . . . . . . . . . . . . . . — (17,503) 17,067 Recognized loss on purchase commitments . . . . . . . . . . . . . . (4,745) 40,566 — Milestone rights liability and other liabilities . . . . . . . . . . . . — — 33 Net cash used in operating activities . . . . . . . . . . . . . . . (64,778) (78,090) (57,232) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,144) (10,285) Net proceeds from sale of asset held for sale . . . . . . . . . . . . . . . . . . . . . 16,651 — — Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . . 24 17 82 Net cash provided by (used in) investing activities . . . . 16,675 (1,127) (10,203) 83