siga20240331

siga20240331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the Quarterly Period Ended March 31, 2024
	Or
☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ________ to ___________

Commission File No. 0-23047

SIGA Technologies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	13-3864870
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

31 East 62nd Street	10065
New York, NY	(zip code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: (212) 672-9100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
common stock, $.0001 par value	SIGA	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒.

As of April 19, 2024, the registrant had outstanding 71,122,516 shares of common stock, par value $.0001, per share.

		Page No.
PART I-FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	2
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
Item 4.	Controls and Procedures	22

PART II-OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24
SIGNATURES		25

	*March 31, 2024*			*December 31, 2023*
ASSETS
Current assets
Cash and cash equivalents	$	143,868,648		$	150,145,844
Accounts receivable		18,127,180			21,130,951
Inventory		63,721,788			64,218,337
Prepaid expenses and other current assets		2,174,993			3,496,028
Total current assets		227,892,609			238,991,160

Property, plant and equipment, net		1,193,237			1,331,708
Deferred tax asset, net		11,011,668			11,048,118
Goodwill		898,334			898,334
Other assets		2,149,482			2,083,535
Total assets	$	243,145,330		$	254,352,855
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	2,523,350		$	1,456,316
Accrued expenses and other current liabilities		6,122,929			10,181,810
Dividend Payable		42,673,509			—
Deferred IV TPOXX® revenue		20,788,720			20,788,720
Income tax payable		2,703,690			21,690,899
Total current liabilities		74,812,198			54,117,745

Other liabilities		3,342,927			3,376,203
Total liabilities		78,155,125			57,493,948
Commitments and contingencies
Stockholders’ equity
Common stock ($.0001 par value, 600,000,000 shares authorized, 71,122,516 and 71,091,616, issued and outstanding at March 31, 2024 and December 31, 2023, respectively)		7,112			7,109
Additional paid-in capital		236,766,447			235,795,420
Accumulated deficit		(71,783,354	)		(38,943,622	)
Total stockholders’ equity		164,990,205			196,858,907
Total liabilities and stockholders’ equity	$	243,145,330		$	254,352,855

	*Three Months Ended March 31,*
	*2024*			*2023*
Revenues
Product sales and supportive services	$	23,878,677		$	5,702,515
Research and development		1,551,178			2,620,510
Total revenues		25,429,855			8,323,025

Operating expenses
Cost of sales and supportive services		3,225,314			1,150,187
Selling, general and administrative		7,875,773			4,235,108
Research and development		3,053,369			5,046,036
Total operating expenses		14,154,456			10,431,331
Operating income/(loss)		11,275,399			(2,108,306	)
Other income, net		1,942,437			890,629
Income/(Loss) before income taxes		13,217,836			(1,217,677	)
(Provision)/Benefit for income taxes		(2,940,496	)		299,422
Net and comprehensive income/(loss)	$	10,277,340		$	(918,255	)
Basic income/(loss) per share	$	0.14		$	(0.01	)
Diluted income/(loss) per share	$	0.14		$	(0.01	)
Weighted average shares outstanding: basic		71,093,653			72,197,038
Weighted average shares outstanding: diluted		71,562,996			72,197,038

	*As of*
	*March 31, 2024*		*December 31, 2023*
Raw materials	$	1,596,579	$	8,061,800
Work in-process		57,886,954		53,649,859
Finished goods		4,238,255		2,506,678
Inventory	$	63,721,788	$	64,218,337

	As of
	March 31, 2024		December 31, 2023
Other		2,095,059		2,477,619
Compensation		1,368,907		2,974,863
Professional fees		1,068,513		445,653
Inventory		641,606		3,300,985
Lease liability, current portion		503,470		564,009
Research and development vendor costs		445,374		418,681
Accrued expenses and other current liabilities	$	6,122,929	$	10,181,810

				Three Months Ended March 31,
				2023
Stock options				209,623
Restricted stock units⁽¹⁾				295,419

	*Common Stock*				*Additional Paid-in*			*Accumulated*			*Other Comprehensive*		*Total Stockholders'*
	*Shares*		*Amount*		*Capital*			*Deficit*			*Income*		*Equity*
Balances at December 31, 2023		71,091,616	$	7,109	$	235,795,420		$	(38,943,622	)	$	—	$	196,858,907
Net income		—		—		—			10,277,340			—		10,277,340
Issuance of common stock		30,900		3		(158,983	)		—			—		(158,980	)
Cash dividend ($0.60 per share)		—		—		—			(43,117,072	)		—		(43,117,072	)
Stock-based compensation		—		—		1,130,010			—			—		1,130,010
Balances at March 31, 2024		71,122,516	$	7,112	$	236,766,447		$	(71,783,354	)	$	—	$	164,990,205

2024	$	454,053
2025		406,994
2026		409,971
2027		165,916
Total undiscounted cash flows under leases		1,436,934
Less: Imputed interest		(96,381	)
Present value of lease liabilities	$	1,340,553

Exhibit No.	Description
3.1	Amended and Restated Certificate of Incorporation of SIGA Technologies, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of the Company filed on June 16, 2022).
3.2	Amended and Restated By-laws of SIGA Technologies, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of the Company filed on December 15, 2021).
10.1*	Employment Agreement, dated January 19, 2024, between SIGA Technologies, Inc. and Diem Nguyen (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company filed January 22, 2024).
10.2*	Employment Agreement, dated February 26, 2024, between SIGA Technologies, Inc. and Larry Miller.
10.3	Amendment No. 1 to Promotion Agreement, dated September 10, 2020, between SIGA Technologies, Inc. and Meridian Medical Technologies, Inc.
10.4	Letter Amendment to Promotion Agreement, dated February 28, 2024, between SIGA Technologies, Inc. and Meridian Medical Technologies, LLC.
10.5	Letter Amendment to Promotion Agreement, dated March 26, 2024, between SIGA Technologies, Inc. and Meridian Medical Technologies, LLC.
10.6†	Amendment No. 2 to Promotion Agreement, dated March 27, 2024, between SIGA Technologies, Inc. and Meridian Medical Technologies, LLC.
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH	Inline XBRL Taxonomy Extension Schema.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase.
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

		SIGA TECHNOLOGIES, INC.
		(Registrant)

Date:	May 7, 2024	By:	/s/ Daniel J. Luckshire
			Daniel J. Luckshire
			Executive Vice President and Chief Financial Officer
			(Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer)

	*As of*
	*March 31, 2024*			*December 31, 2023*
Leasehold improvements	$	2,420,028		$	2,420,028
Computer equipment		468,937			468,937
Furniture and fixtures		347,045			347,045
Operating lease right-of-use assets		3,678,647			3,678,647
		6,914,657			6,914,657
Less – accumulated depreciation and amortization		(5,721,420	)		(5,582,949	)
Property, plant and equipment, net	$	1,193,237		$	1,331,708

SEC Form 10-Q filed by SIGA Technologies Inc.