View Filing Data

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 04, 2020
Document And Entity Information
Entity Registrant Name	ADMA BIOLOGICS, INC.
Entity Central Index Key	0001368514
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity File Number	001-36728
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		86,345,313
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 101,235,699	$ 26,752,135
Accounts receivable, net	7,107,834	3,469,919
Inventories	52,288,803	53,064,734
Prepaid expenses and other current assets	4,855,344	2,533,593
Total current assets	165,487,680	85,820,381
Property and equipment, net	35,060,795	31,741,317
Intangible assets, net	2,980,636	3,159,474
Goodwill	3,529,509	3,529,509
Deposits and other assets	3,465,207	2,840,044
TOTAL ASSETS	210,523,827	127,090,725
Current liabilities
Accounts payable	9,152,239	9,174,591
Accrued expenses and other current liabilities	4,419,043	4,481,395
Current portion of deferred revenue	142,834	142,834
Current portion of lease obligations	193,987	229,073
Total current liabilities	13,908,103	14,027,893
Senior notes payable, net of discount	81,212,090	68,291,163
Deferred revenue, net of current portion	2,225,823	2,261,532
Subordinated note payable, net of discount	14,916,837	14,908,053
Lease obligations, net of current portion	1,831,639	1,302,361
Other non-current liabilities	93,652	106,574
TOTAL LIABILITIES	114,188,144	100,897,576
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common Stock - voting, $0.0001 par value, 150,000,000 shares authorized, 86,345,313 and 59,318,355 shares issued and outstanding	8,635	5,932
Additional Paid-In Capital	380,288,833	290,903,772
Accumulated Deficit	(283,961,785)	(264,716,555)
TOTAL STOCKHOLDERS' EQUITY	96,335,683	26,193,149
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 210,523,827	$ 127,090,725

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
REVENUES:
Product revenue	$ 10,164,036	$ 3,492,881
License and other revenue	35,708	35,708
Total Revenues	10,199,744	3,528,589
OPERATING EXPENSES
Cost of product revenue (exclusive of amortization expense shown below)	16,829,226	9,405,179
Research and development	1,528,738	870,635
Plasma center operating expenses	500,644	654,486
Amortization of intangible assets	178,838	211,235
Selling, general and administrative	7,932,084	5,595,470
TOTAL OPERATING EXPENSES	26,969,530	16,737,005
LOSS FROM OPERATIONS	(16,769,786)	(13,208,416)
OTHER INCOME (EXPENSE):
Interest and other income	248,068	127,399
Interest expense	(2,717,091)	(1,540,507)
Loss on extinguishment of debt	0	(9,962,495)
Gain on transfer of plasma center assets	0	11,527,421
Other expense	(6,421)	(11,357)
Other (expense) income, net	(2,475,444)	140,461
NET LOSS	$ (19,245,230)	$ (13,067,955)
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (0.26)	$ (0.28)
WEIGHTED AVERAGE SHARES OUTSTANDING, Basic and Diluted	73,781,507	46,353,068

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2018	46,353,068
Beginning balance, amount at Dec. 31, 2018	$ 4,635	$ 236,203,041	$ (216,437,238)	$ 19,770,438
Stock-based compensation		637,263		637,263
Warrants issued in connection with note payable		2,699,208		2,699,208
Net loss			(13,067,955)	(13,067,955)
Ending balance, shares at Mar. 31, 2019	46,353,068
Ending balance, amount at Mar. 31, 2019	$ 4,635	239,539,512	(229,505,193)	10,038,954
Beginning balance, shares at Dec. 31, 2019	59,318,355
Beginning balance, amount at Dec. 31, 2019	$ 5,932	290,903,772	(264,716,555)	26,193,149
Stock-based compensation		676,548		676,548
Stock options exercised, Shares	1,958
Stock options exercised, Amount		7,177		7,177
Issuance of common stock, net of offering expenses, Shares	27,025,000
Issuance of common stock, net of offering expenses, Amount	$ 2,703	88,701,336		88,704,039
Warrants issued in connection with note payable				0
Net loss			(19,245,230)	(19,245,230)
Ending balance, shares at Mar. 31, 2020	86,345,313
Ending balance, amount at Mar. 31, 2020	$ 8,635	$ 380,288,833	$ (283,961,785)	$ 96,335,683

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (19,245,230)	$ (13,067,955)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	788,838	805,330
Loss on disposal of fixed assets	976	391
Stock-based compensation	676,548	637,263
Gain on transfer of plasma assets	0	(11,527,421)
Amortization of debt discount	429,711	244,767
Loss on extinguishment of debt	0	9,962,495
Amortization of license revenue	(35,708)	(35,708)
Changes in operating assets and liabilities:
Accounts receivable	(3,637,915)	82,037
Inventories	775,932	(25,310)
Prepaid expenses and other current assets	(2,321,751)	(289,134)
Deposits and other assets	(79,532)	179,644
Accounts payable	(22,356)	(420,601)
Accrued expenses	(1,930,591)	(762,541)
Other current and non-current liabilities	(45,882)	(70,442)
Net cash used in operating activities	(24,646,960)	(14,287,184)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(2,074,876)	(110,453)
Proceeds from the sale of property and equipment	2,000	0
Net cash provided by (used in) investing activities	(2,072,876)	(110,453)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on note payable	0	(30,000,000)
Payment of end of term fee	0	(2,760,000)
Payment of debt refinancing fees	0	(6,499,867)
Proceeds from issuance of note payable	12,500,000	45,000,000
Payment of debt issuance costs	0	(1,555,762)
Proceeds from issuance of common stock, net of offering expenses	88,704,039	0
Proceeds from the exercise of stock options	7,177	0
Payments on finance lease obligations	(7,816)	(7,308)
Net cash provided by financing activities	101,203,400	4,177,063
Net (decrease) increase in cash and cash equivalents	74,483,564	(10,220,574)
Cash and cash equivalents, including restricted cash - beginning of period	26,752,135	26,754,852
Cash and cash equivalents, including restricted cash - end of period	$ 101,235,699	$ 16,534,278

1. ORGANIZATION AND BUSINESS

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

1. ORGANIZATION AND BUSINESS

ADMA Biologics, Inc. (“ADMA” or the “Company”) is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The Company’s targeted patient populations include immune-compromised individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons.

ADMA operates through its wholly-owned subsidiaries ADMA BioManufacturing, LLC (“ADMA BioManufacturing”) and ADMA Bio Centers Georgia Inc. (“ADMA Bio Centers”). ADMA BioManufacturing was formed in January 2017 to facilitate the acquisition of the Biotest Therapy Business Unit (“BTBU”) from BPC Plasma, Inc. (formerly Biotest Pharmaceuticals Corporation) (“BPC” and, together with Biotest AG, “Biotest”) as more fully described below. BTBU had been the Company’s third-party manufacturer for its then-lead pipeline product candidate, ASCENIV, previously referred to as “RI-002.” ADMA Bio Centers is the Company’s source plasma collection business with a plasma collection facility located in the U.S., which holds an approved license with the U.S. Food and Drug Administration (the “FDA”).

The Company has three FDA-approved products, all of which are currently marketed and commercially available: (i) BIVIGAM (Immune Globulin Intravenous, Human), an Intravenous Immune Globulin (“IVIG”) product indicated for the treatment of Primary Humoral Immunodeficiency (“PI”), also known as Primary Immunodeficiency Disease (“PIDD”), and for which we received FDA approval on May 9, 2019 for the commercial re-launch of the product and commenced the commercial re-launch in August 2019; (ii) ASCENIV (Immune Globulin Intravenous, Human – slra 10% Liquid), an IVIG product indicated for the treatment of PI, for which we received FDA approval on April 1, 2019 and commenced first commercial sales in October 2019; and (iii) Nabi-HB (Hepatitis B Immune Globulin, Human), which is indicated for the treatment of acute exposure to blood containing Hepatitis B surface antigen (“HBsAg”) and other listed exposures to Hepatitis B. The Company seeks to develop a pipeline of plasma-derived therapeutics, and its products and product candidates are intended to be used by physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases.

On June 6, 2017, ADMA completed the acquisition of certain assets (the “Biotest Assets”) of BTBU, which included the FDA-licensed BIVIGAM and Nabi-HB immunoglobulin products, and an FDA-licensed plasma fractionation manufacturing facility located in Boca Raton, FL (the “Boca Facility”) (the “Biotest Transaction”). In addition to its commercially available immunoglobulin products, the Company provides contract manufacturing services for certain clients and generates revenues from the sale of intermediate by-products that result from the immunoglobulin production process.

As of March 31, 2020, the Company had working capital of $151.6 million, including $101.2 million of cash and cash equivalents. Based upon the Company’s current projected revenue and expenditures, including capital expenditures and continued implementation of the Company’s commercialization and expansion activities, as well as certain other assumptions, the Company’s management currently believes that its cash, cash equivalents, projected revenue and accounts receivable will be sufficient to fund ADMA’s operations, as currently conducted, into the second quarter of 2021. In order to have sufficient cash to fund its operations thereafter, the Company anticipates it will need to raise additional capital before the end of the second quarter of 2021. These estimates may change based upon the success of the Company’s commercial sales of its products, manufacturing ramp-up activities, the acceptability of ADMA’s immune globulin products by physicians, patients or payers and the various financing options that may be available to the Company. The Company currently has no firm commitments for additional financing, and there can be no assurance that the Company will be able to secure additional financing on terms that are acceptable to the Company, or at all. Furthermore, if the Company’s assumptions underlying its estimated expenses and revenues are incorrect, it may have to raise additional capital sooner than currently anticipated.

Due to numerous risks and uncertainties associated with FDA approvals related to the Company’s products or the labeled indications of such products, ongoing compliance requirements and capacity expansion efforts at the Company’s Boca Facility and future commercialization of the Company’s products, including the Company’s ability to obtain adequate quantities of FDA-approved plasma with proper specifications on acceptable terms for use in the Company’s manufacturing process, as well as the additional uncertainties surrounding the COVID-19 pandemic (see Note 9) the Company is unable to estimate with certainty the amounts of increased capital outlays and operating expenditures required to fund its commercial and development activities. The Company’s current estimates may be subject to change as circumstances regarding its business requirements evolve. Failure to secure any necessary financing in a timely manner and on commercially reasonable terms could have a material adverse effect on the Company’s business plan and financial performance and it could be forced to delay or discontinue its commercialization, product development or clinical activities or delay or discontinue the approval efforts for any of the Company’s products or product candidates. The Company has reported cumulative losses since inception in June 2004 through March 31, 2020 of $284.0 million. As such, these factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of asset carrying amounts and the classification of liabilities that might be necessary from the outcome of this uncertainty.

The Company may decide to raise capital through public or private equity offerings or debt financings, or obtain a bank credit facility or enter into corporate collaboration and licensing arrangements. The sale of additional equity or debt securities, if convertible, could result in dilution to the Company’s existing stockholders and, in such event, the market value of its common stock may decline. The incurrence of additional indebtedness would result in increased fixed obligations and could also result in covenants that would restrict the Company’s operations or other financing alternatives. In addition, the Company is exploring additional contract manufacturing arrangements and other business development opportunities, which may provide additional liquidity to the Company.

There can be no assurance that the Company’s approved products will be commercially viable, or that research and development, plant capacity expansion, plasma center build-outs or other capital improvements will be successfully completed or that any product developed in the future will be approved. The Company is subject to risks common to companies in the biotechnology and pharmaceutical manufacturing industries including, but not limited to, dependence on collaborative arrangements, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with FDA and other governmental regulations and approval requirements.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (the “FASB”).

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 13, 2020. The accompanying consolidated balance sheet as of December 31, 2019 was derived from the audited financial statements for the year ended December 31, 2019. These condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X, and therefore omit or condense certain footnotes and other information normally included in complete consolidated financial statements prepared in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s financial position as of March 31, 2020 and its results of operations, changes in equity and cash flows for the three months ended March 31, 2020.

During the three months ended March 31, 2020 and 2019, comprehensive loss was equal to the net loss amounts presented for the respective periods in the accompanying condensed consolidated statements of operations. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full fiscal year.

Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the realizable value of accounts receivable, valuation of inventory, assumptions used in projecting future liquidity and capital requirements, assumptions used in the fair value of awards granted under the Company’s equity incentive plans and warrants issued in connection with the issuance of notes payable and the valuation allowance for the Company’s deferred tax assets.

Fair value of financial instruments

The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, are shown at cost which approximates fair value due to the short-term nature of these instruments. The debt outstanding under the Company’s senior secured term loan (see Note 6) approximates fair value due to the variable interest rate on this debt. With respect to the subordinated note payable in the amount of $15.0 million as of March 31, 2020 and December 31, 2019, which is held by Biotest, a principal stockholder of the Company at the time the note was issued and was issued concurrent with an acquisition transaction with an affiliate of such stockholder (see Note 6), the Company has concluded that an estimation of fair value for this note is not practicable.

Accounts receivable

Accounts receivable is reported at realizable value, net of allowances for contractual credits and doubtful accounts, which are recognized in the period the related revenue is recorded. The Company extends credit to its customers based upon an evaluation of each customer's financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed on an ongoing basis. Based on these evaluations, the Company has concluded that the credit risk is minimal. At March 31, 2020, three customers accounted for an aggregate of 84% of the Company’s total accounts receivable, and at December 31, 2019, two customers accounted for 89% of the Company’s total accounts receivable.

Inventories

Inventories, including plasma intended for resale and plasma intended for internal use in the Company’s manufacturing, commercialization or research and development activities, are carried at the lower of cost or net realizable value determined by the first-in, first-out method. Due to previous uncertainties surrounding certain prior submissions made to the FDA, all costs related to the production of BIVIGAM and ASCENIV prior to their FDA approval dates of May 9, 2019 and April 1, 2019, respectively, have been charged to cost of product revenue in the accompanying consolidated statements of operations.

Goodwill

Goodwill represents the excess of purchase price over the fair value of net assets acquired by the Company. Goodwill at March 31, 2020 and December 31, 2019 was $3.5 million. All of the Company’s goodwill is attributable to the acquisition of its ADMA BioManufacturing business segment.

Goodwill is not amortized, but is assessed for impairment on an annual basis or more frequently if impairment indicators exist. The Company has the option to perform a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, then it must perform a goodwill impairment test by comparing the fair value of the reporting unit to its carrying value. An impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. The Company performs its annual goodwill impairment test as of October 1 of each year. The Company’s annual goodwill impairment test as of October 1, 2019 did not result in a goodwill impairment charge, and the Company did not record any impairment charges related to goodwill for the three months ended March 31, 2020 and 2019.

Impairment of long-lived assets

The Company assesses the recoverability of its long-lived assets, which include property and equipment and definite-lived intangible assets, whenever significant events or changes in circumstances indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with the asset are compared to its carrying amount to determine whether the asset’s carrying value is recoverable. Any resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results. For the three months ended March 31, 2020 and 2019, the Company determined that there was no impairment of its long-lived assets.

Revenue recognition

Revenues for the three months ended March 31, 2020 and 2019 are comprised of (i) revenues from the sale of the Company’s immunoglobulin products, ASCENIV, BIVIGAM and Nabi-HB, (ii) product revenues from the sale of human plasma collected from the Company’s Plasma Collection Centers business segment, (iii) contract manufacturing revenue, (iv) revenues from the sale of intermediate by-products; and (v) license and other revenues primarily attributable to the out-licensing of ASCENIV to Biotest in 2012 to market and sell this product in Europe and selected countries in North Africa and the Middle East. Biotest has provided the Company with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the Company certain amounts in the future if certain milestones are achieved. Deferred revenue is recognized over the term of the Biotest license. Deferred revenue is amortized into income for a period of approximately 22 years, the term of the Biotest license agreement.

Product revenue is recognized when the customer is deemed to have control over the product. Control is determined based on when the product is shipped or delivered and title passes to the customer. Revenue is recorded in an amount that reflects the consideration the Company expects to receive in exchange. Revenue from the sale of the Company’s immunoglobulin products is recognized when the product reaches the customer’s destination, and is recorded net of estimated rebates, price protection arrangements and customer incentives, including prompt pay discounts, wholesaler chargebacks and other wholesaler fees. These estimates are based on historical experience and certain other assumptions, and the Company believes that such estimates are reasonable. For revenues associated with contract manufacturing and the sale of intermediates, control transfers to the customer and the performance obligation is satisfied when the customer takes possession of the product from the Boca Facility or from a third-party warehouse that is utilized by the Company.

Product revenues from the sale of human plasma collected at the Company’s plasma collection centers are recognized at the time control of the product has been transferred to the customer, which generally occurs at the time of shipment. Product revenues are recognized at the time of delivery if the Company retains control of the product during shipment.

For the three months ended March 31, 2020, three customers represented an aggregate of 82% of the Company’s consolidated revenues. For the three months ended March 31, 2019, two customers represented an aggregate of 81% of the Company’s consolidated revenues.

Cost of product revenue

Cost of product revenue includes expenses related to process development as well as scientific and technical operations when these operations are attributable to marketed products. When the activities of these operations are attributable to new products in development, the expenses are classified as research and development expenses.

Loss per common share

Basic loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share is calculated by dividing net loss attributable to common stockholders, as adjusted for the effect of dilutive securities, if any, by the weighted average number of shares of common stock and dilutive common stock outstanding during the period. Potentially dilutive common stock includes the shares of common stock issuable upon the exercise of outstanding stock options and warrants, using the treasury stock method. Potentially dilutive common stock is excluded from the diluted loss per common share computation to the extent that it would be anti-dilutive. As a result, no potentially dilutive securities are included in the computation of any of the accompanying diluted loss per share amounts as the Company reported a net loss for all periods presented. For the three months ended March 31, 2020 and 2019, the following securities were excluded from the calculation of diluted loss per common share because of their anti-dilutive effects:

	For the Three Months Ended March 31,
	2020		2019
Stock options		6,753,354		5,599,435
Restricted stock units		333,500		—
Warrants		2,138,160		1,888,160
		9,225,014		7,487,595

Stock-based compensation

The Company follows recognized accounting guidance which requires all equity-based payments, including grants of stock options, to be recognized in the statement of operations as compensation expense based on their fair values at the date of grant. Compensation expense related to awards to employees and directors with service-based vesting conditions is recognized on a straight-line over the associated vesting period of the award based on the grant date fair value of the award. Stock options granted under the Company’s equity incentive plans generally have a four-year vesting period and a term of 10 years. Pursuant to ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), the Company has elected not to establish a forfeiture rate, as stock-based compensation expense related to forfeitures of unvested stock options is fully reversed at the time of forfeiture.

Income Taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or its tax returns. Under this method, deferred tax assets and liabilities are recognized for the temporary differences between the tax bases of assets and liabilities and their respective financial reporting amounts at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. The Company records a valuation allowance on its deferred tax assets if it is more likely than not that the Company will not generate sufficient taxable income to utilize its deferred tax assets. The Company is subject to income tax examinations by major taxing authorities for all tax years since 2015 and for previous periods as it relates to the Company’s net operating loss carryforwards.

In accordance with U.S. GAAP, the Company is required to determine whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Derecognition of a tax benefit previously recognized could result in the Company recording a tax liability that would reduce net assets. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of March 31, 2020 and December 31, 2019, and during the three months ended March 31, 2020 and 2019, the Company recognized no adjustments for uncertain tax positions.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), which requires financial assets to be presented at the net amount expected to be collected, with an allowance for credit losses to be deducted from the amortized cost basis of the financial asset such that the net carrying value of the asset is presented as the amount expected to be collected. Under ASU 2016-13, the entity’s statement of operations is required to reflect the measurement of credit losses for newly recognized financial assets, as well as expected increases or decreases in expected credit losses that have taken place during the period. For public business entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. The Company adopted ASU No. 2016-13, and the adoption of this update did not have a significant impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 requires modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company adopted ASU 2016-02 on January 1, 2019 using the option to recognize the cumulative-effect adjustment, if any, as of the date of application, which was also January 1, 2019. The Company recognized right-to-use assets of $1.4 million and corresponding lease liabilities of approximately $1.6 million at the date of adoption (see Note 12). The Company also elected the “package of practical expedients,” which permits the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. In addition, the Company elected the short-term lease recognition exemption for all leases that qualify, including the agreement under which the Company occupies certain office space as discussed in Note 8.

In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815)” (“ASU 2017-11”). ASU 2017-11 changed the classification analysis of certain equity-linked financial instruments (or embedded features within such instruments) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) will no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with ASC 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. In addition, convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features in ASC 470-20, “Debt—Debt with Conversion and Other Options.” ASU 2017-11 became effective for the Company on January 1, 2019, and this update did not have a significant impact on the Company’s consolidated financial statements.

6. DEBT

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

6. DEBT

Senior Notes Payable

A summary of outstanding senior notes payable is as follows:

	March 31, 2020			December 31, 2019

Notes payable	$	85,000,000		$	72,500,000
Less:
Debt discount		(3,787,910	)		(4,208,837	)
Senior notes payable	$	81,212,090		$	68,291,163

On February 11, 2019 (the “Perceptive Closing Date”), the Company and all of its subsidiaries entered into a Credit Agreement and Guaranty (the “Perceptive Credit Agreement”) with Perceptive Credit Holdings II, LP, as the lender and administrative agent (“Perceptive”). The Perceptive Credit Agreement, as amended, provides for a senior secured term loan facility in a principal amount of up to $85.0 million (the “Perceptive Credit Facility”), comprised of (i) a term loan made on the Perceptive Closing Date in the principal amount of $45.0 million, as evidenced by the Company’s issuance of a promissory note (the “Perceptive Tranche I Note”) in favor of Perceptive on the Perceptive Closing Date (the “Perceptive Tranche I Loan”), (ii) a term loan in the principal amount of up to $27.5 million (the “Perceptive Tranche II Loan”) evidenced by the Company’s issuance of a promissory note (the “Perceptive Tranche II Note”) in favor of Perceptive on May 3, 2019; and (iii) a term loan in the principal amount of up to $12.5 million evidenced by the Company’s issuance of a promissory note (the “Perceptive Tranche III Note”) in favor of Perceptive on March 20, 2020 (the “Perceptive Tranche III Loan,” and together with the Perceptive Tranche I Loan and the Perceptive Tranche II Loan, the “Perceptive Loans”). The Perceptive Tranche III Loan is the result of an amendment to the Perceptive Credit Agreement (the “Perceptive Amendment”) that the Company and Perceptive entered into on May 3, 2019, and the Perceptive Tranche III Loan became available to the Company upon the approval of BIVIGAM on May 9, 2019. The Perceptive Credit Facility has a maturity date of March 1, 2022 (the “Maturity Date”), subject to acceleration pursuant to the Perceptive Credit Agreement, including upon an Event of Default (as defined in the Perceptive Credit Agreement).

On the Perceptive Closing Date, the Company used $30.0 million of the Perceptive Tranche I Loan to terminate and pay in full all of the outstanding obligations under its previously existing credit agreement with Marathon Healthcare Finance Fund, L.P. (“Marathon”) (the “Marathon Credit Facility”). The Company also used proceeds from the Perceptive Tranche I Loan to: (i) pay a deferred facility fee to Marathon in the amount of $2.8 million, (ii) pay a prepayment penalty to Marathon in the amount of $6.5 million, (iii) pay outstanding accrued interest to Marathon in the amount of $0.7 million, and (iv) pay certain fees and expenses incurred in connection with the Perceptive Credit Facility of approximately $1.5 million. In addition, Marathon released $4.0 million of cash to the Company that was held in a debt service reserve account per the terms of the Marathon Credit Facility. In connection with the Perceptive Amendment, the Company paid an additional facility fee to Perceptive in the amount of $0.1 million on May 3, 2019.

As a result of the Company’s entering into the Perceptive Credit Agreement and terminating the Marathon Credit Facility, the Company recognized a loss on the extinguishment of debt for the three months ended March 31, 2019 in the amount of approximately $10.0 million, comprised of the $6.5 million prepayment penalty and the write-off of unamortized debt discount related to the Marathon Credit Facility in the amount of $3.5 million.

Borrowings under the Perceptive Credit Agreement bear interest at a rate per annum equal to 7.5% plus the greater of (i) one-month LIBOR and (ii) 3.5%; provided, however, that upon, and during the continuance of, an Event of Default, the interest rate will automatically increase by an additional 400 basis points. Accrued interest is payable to Perceptive on the last day of each month during the term of the Perceptive Credit Facility. The rate of interest in effect as of the Perceptive Closing Date and at March 31, 2020 was 11.0%.

On the Maturity Date, the Company will pay Perceptive the entire outstanding principal amount underlying the Perceptive Loans and any accrued and unpaid interest thereon. Prior to the Maturity Date, there will be no scheduled principal payments on the Perceptive Loans. The Company may prepay outstanding principal on the Perceptive Loans at any time and from time to time upon three business days’ prior written notice, subject to the payment to Perceptive of, (A) any accrued but unpaid interest on the prepaid principal amount plus (B) a redemption premium amount equal to (i) 5.0% of the prepaid principal amount, if prepaid on or prior to the first anniversary of the Perceptive Closing Date, (ii) 4.0% of the prepaid principal amount, if prepaid after the first anniversary of the Perceptive Closing Date and on or prior to the second anniversary of the Perceptive Closing Date, or (iii) 3.0% of the prepaid principal amount, if prepaid after the second anniversary of the Perceptive Closing Date and on or prior to the third anniversary of the Perceptive Closing Date.

All of the Company’s obligations under the Perceptive Credit Agreement are secured by a first-priority lien and security interest in substantially all of the Company’s tangible and intangible assets, including intellectual property and all of the equity interests in the Company’s subsidiaries. The Perceptive Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants restrict or limit the ability of the Company and its subsidiaries to, among other things and subject to certain exceptions contained in the Perceptive Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to the Company’s or subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the Perceptive Credit Agreement); change its fiscal year; pay dividends; repay other certain indebtedness; engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting the Company’s ability to make loan repayments under the Perceptive Credit Agreement. In addition, the Company must (i) at all times prior to the Maturity Date maintain a minimum cash balance of $3.0 million; and (ii) as of the last day of each fiscal quarter commencing with the fiscal quarter ending June 30, 2019, report revenues for the trailing 12-month period that exceed the amounts set forth in the Perceptive Credit Agreement, which range from $7.0 million for the fiscal quarter ended June 30, 2019 to $55.0 million for the fiscal quarter ending December 31, 2021. At March 31, 2020, the Company was in compliance with all of the covenants contained in the Perceptive Credit Agreement.

As consideration for the Perceptive Credit Agreement, the Company issued to Perceptive a warrant to purchase 1,360,000 shares of the Company’s common stock (the “Perceptive Warrant”) on the Perceptive Closing Date. The Perceptive Warrant has an exercise price equal to $3.28 per share, which is equal to the trailing 10-day volume weighted average price (“VWAP”) of the Company’s common stock on the business day immediately prior to the Perceptive Closing Date multiplied by 1.15. The Company valued the Perceptive Warrant at $2.7 million as of the Perceptive Closing Date and it has an expiration date of February 11, 2029. In connection with the Perceptive Amendment, the Company issued an additional warrant (the “Perceptive Tranche III Warrant” and, together with the Perceptive Warrant, the “Perceptive Warrants”) to purchase 250,000 shares of the Company’s common stock to Perceptive with an exercise price equal to $4.64 per share, which represents the trailing 10-day VWAP of the Company’s common stock as of May 2, 2019. The Perceptive Tranche III Warrant was valued by the Company at $0.9 million and has an expiration date of May 3, 2029. Perceptive has represented to the Company, among other things, that it was an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the Securities Act) and the Company issued the Perceptive Warrants in reliance upon an exemption from registration contained in Section 4(2) under the Securities Act. The Perceptive Warrants and the shares of common stock issuable thereunder may not be offered, sold, pledged or otherwise transferred in the U.S. absent registration or an applicable exemption from the registration requirements under the Securities Act.

As a result of the fees paid to Perceptive and the value of the Perceptive Warrants, the Company recognized an aggregate discount on the Perceptive Tranche I Note and Perceptive Tranche II Note in the amount of $5.3 million. The Company records debt discount as a reduction to the face amount of the debt, and the debt discount is amortized as interest expense over the life of the debt using the interest method. Based on the fair value of the Perceptive Warrants and the aggregate amount of fees and expenses associated with obtaining the Perceptive Credit Facility, the effective interest rate on the Perceptive Loans as of May 3, 2019 was approximately 14.1%.

Subordinated Note Payable

A summary of the outstanding subordinated note payable is as follows:

	March 31, 2020			December 31, 2019
Subordinated note payable to Biotest	$	15,000,000		$	15,000,000
Less:
Debt discount		(83,163	)		(91,947	)
Subordinated note payable	$	14,916,837		$	14,908,053

In connection with the acquisition of the Biotest Assets (see Note 1), ADMA BioManufacturing issued a subordinated note payable to BPC and in connection therewith received cash proceeds of $15.0 million. This note has since been assigned from BPC to Biotest AG. The note bears interest at a rate of 6.0% per annum and matures on June 6, 2022. The Company is obligated to make semi-annual interest payments, with all principal and unpaid interest due at maturity. The note is subordinate to all amounts outstanding under the Perceptive Credit Agreement. In the event of default, all principal and unpaid interest is due on demand. The subordinated note also contains several non-financial covenants with which the Company was in compliance as of March 31, 2020.

7. STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2020

STOCKHOLDERS' EQUITY

7. STOCKHOLDERS' EQUITY

Preferred Stock

The Company is currently authorized to issue up to 10 million shares of preferred stock, $0.0001, par value per share. There were no shares of preferred stock outstanding at March 31, 2020 and December 31, 2019.

Common Stock

As of March 31, 2020 and December 31, 2019, the Company was authorized to issue 150,000,000 shares of its common stock, $0.0001 par value per share, and 86,345,313 and 59,318,355 shares of common stock were outstanding as of March 31, 2020 and December 31, 2019, respectively. After giving effect to shares reserved for outstanding warrants and awards issued under the Company’s equity incentive plans, as of March 31, 2020, there were 54,429,673 shares of common stock available for issuance.

On February 11, 2020, the Company completed an underwritten public offering of 23,500,000 shares of its common stock for gross proceeds of $82.3 million. On February 21, 2020, the Company sold an additional 3,525,000 shares pursuant to the underwriters’ exercise of their option to purchase additional shares of the Company’s common stock for additional gross proceeds of $12.3 million. The Company received net proceeds, after underwriting discounts and other expenses associated with the offering, of approximately $88.7 million.

Warrants

At March 31, 2020, the Company had outstanding warrants to purchase an aggregate of 2,138,160 shares of common stock, with a weighted average exercise price of $3.81 per share and expiration dates ranging between June 2022 and May 2029.

Equity Incentive Plans

The fair value of stock options granted under the Company’s 2007 Employee Stock Option Plan (the “2007 Plan”) and the ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation Plan, as amended and restated (the “2014 Plan”), was determined on the date of grant using the Black-Scholes option valuation model. The Black-Scholes model was developed for use in estimating the fair value of publicly traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of certain subjective assumptions including the expected stock price volatility. The stock options granted to employees and directors have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate. The following assumptions were used to determine the fair value of options granted during the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020		2019
Expected term	5.8 - 6.3 years		5.8 - 6.3 years
Volatility		62%		61%
Dividend yield		0.0		0.0
Risk-free interest rate		0.47-1.68%		2.25-2.63%

During the three months ended March 31, 2020, the Company granted Restricted Stock Units (“RSUs”) to members of the Company’s Board of Directors and to certain management employees of the Company. The total RSUs granted during the period represent an aggregate of 341,000 shares of the Company’s common stock, 7,500 of which were forfeited during the period. The RSUs vest semi-annually over a period of one year for directors and annually over a period of 4 years for employees. The market price of the Company’s common stock as of the date the awards were granted ranged from $2.59 to $2.92 per share. At March 31, 2020, there were 333,500 RSUs outstanding.

During the three months ended March 31, 2020 and 2019, the Company granted options to purchase an aggregate of 1,158,900 and 1,335,850 shares of common stock, respectively, to its directors, employees and certain third party service providers. The weighted average remaining contractual life of stock options outstanding and expected to vest at March 31, 2020 is 7.2 years. The weighted average remaining contractual life of stock options exercisable at March 31, 2020 is 5.9 years.

A summary of the Company’s option activity under the 2007 Plan and 2014 Plan and related information is as follows:

	Shares			Weighted Average Exercise Price
Balance at December 31, 2019		5,630,351		$	4.76
Forfeited		(29,087	)	$	3.65
Expired		(4,852	)	$	4.60
Granted		1,158,900		$	2.96
Exercised		(1,958	)	$	3.67
Balance at March 31, 2020		6,753,354		$	4.46

Options exercisable		3,780,306		$	5.29

Stock-based compensation expense for the three months ended March 31, 2020 and 2019 is as follows:

	2020		2019
Research and development	$	93,574	$	86,523
Plasma centers		7,244		11,540
Selling, general and administrative		523,889		498,471
Cost of product revenue		51,841		40,729
Total stock-based compensation expense	$	676,548	$	637,263

As of March 31, 2020, the Company had $5.7 million of unrecognized compensation expense related to options granted under the Company’s equity incentive plans, which is expected to be recognized over a weighted-average period of 2.7 years.

9. COMMITMENT AND CONTINGENCIES

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

9. COMMITMENT AND CONTINGENCIES

General Legal Matters

From time to time the Company is or may become subject to certain legal proceedings and claims arising in connection with the normal course of its business. Management does not expect that the outcome of any such claims or actions will have a material effect on the Company’s liquidity, results of operations or financial condition.

COVID-19 Pandemic

The Company is closely monitoring ongoing developments in connection with the COVID-19 global pandemic, which has the potential to adversely impact several aspects of the Company’s supply-chain operations, including procurement of raw materials and packaging materials, a portion of which are sourced internationally, and the testing of finished drug product that is required prior to its availability for commercial sale. Such testing has been performed to date by contract laboratories outside the United States.

To date, the COVID-19 pandemic has not had a material impact on the Company’s financial condition and results of operations, and the Company does not believe that its production operations at the Boca Facility, the Company’s contract fill/finishers or its plasma collection facility have been significantly impacted by the COVID-19 pandemic. As a result, the Company does not anticipate any material impairments with respect to any of its long-lived assets, including the Company’s property and equipment, goodwill or intangible assets.

Although the COVID-19 pandemic has not, to date, materially adversely impacted the Company’s capital and financial resources, because the Company is unable to determine the ultimate severity or duration of the outbreak or its long-term effects on, among other things, the global, national or local economies, the capital and credit markets or the Company’s workforce, customers or our suppliers, at this time the Company is unable to predict whether COVID-19 will have a material adverse impact on the Company’s business, financial condition, liquidity and results of operations.

Vendor and Licensor Commitments

Pursuant to the terms of a plasma purchase agreement with BPC dated as of November 17, 2011 (the “2011 Plasma Purchase Agreement”), the Company agreed to purchase from BPC an annual minimum volume of source plasma containing antibodies to RSV to be used in the manufacture of ASCENIV. The Company must purchase a to-be-determined and agreed upon annual minimum volume from BPC, but may also collect high-titer RSV plasma from up to five wholly-owned ADMA plasma collection facilities. During 2015, the Company and BPC amended the 2011 Plasma Purchase Agreement to allow the Company the ability to collect its raw material RSV high-titer plasma from other third-party collection organizations, thus allowing the Company to expand its reach for raw material supply as it approaches commercialization for ASCENIV. Unless terminated earlier, the 2011 Plasma Purchase Agreement expires in June 2027, after which it may be renewed for two additional five-year periods if agreed to by the parties. As part of the closing of the Biotest Transaction, the parties amended the 2011 Plasma Purchase Agreement to extend the initial term through the ten year anniversary of the closing date of the Biotest Transaction. On December 10, 2018, BPC assigned its rights and obligations under the 2011 Plasma Purchase Agreement to Grifols Worldwide Operations Limited (“Grifols”) as its successor-in-interest, effective January 1, 2019. On January 1, 2019, Grifols and the Company entered into an additional amendment to the 2011 Plasma Purchase Agreement for the purchase of source plasma containing antibodies to RSV from Grifols. Pursuant to this amendment, until January 1, 2022, the Company may purchase RSV plasma from Grifols from the two plasma collection centers that were transferred to BPC on January 1, 2019 at a price equal to cost plus five percent (5%) (without any additional increase due to inflation).

On June 6, 2017, the Company and BPC entered into a Plasma Supply Agreement pursuant to which BPC supplies, on an exclusive basis subject to certain exceptions, to ADMA BioManufacturing an annual minimum volume of hyperimmune plasma that contain antibodies to the hepatitis B virus for the manufacture of Nabi-HB. The Plasma Supply Agreement has a 10-year term. On July 19, 2018, the Company and BPC entered into an amendment to the Plasma Supply Agreement to provide, among other things, that in the event BPC elects not to supply in excess of ADMA BioManufacturing’s specified amount of Hepatitis B plasma and ADMA BioManufacturing is unable to secure Hepatitis B plasma from a third party at a price that is within a low double digit percentage of the price that ADMA BioManufacturing pays to BPC, then BPC shall reimburse ADMA BioManufacturing for the difference in price ADMA BioManufacturing incurs. On December 10, 2018, BPC assigned its rights and obligations under the Plasma Supply Agreement to Grifols, effective January 1, 2019.

On June 6, 2017, the Company and BPC entered into a Plasma Purchase Agreement (the “2017 Plasma Purchase Agreement”), pursuant to which ADMA BioManufacturing purchases normal source plasma from BPC at agreed upon annual quantities and prices. The 2017 Plasma Purchase Agreement has an initial term of five years after which the 2017 Plasma Purchase Agreement may be renewed for additional two terms of two years each upon the mutual written consent of the parties. On July 19, 2018, the Company and BPC entered into an amendment to the 2017 Plasma Purchase Agreement to, among other things, provide agreed upon amounts of normal source plasma to be supplied by BPC to ADMA BioManufacturing in calendar year 2019 at a specified price per liter, provided that ADMA BioManufacturing delivers a valid purchase order to BPC. Additionally, pursuant to the amendment to the 2017 Plasma Purchase Agreement, BPC agrees that, for calendar years 2020 and 2021, it shall supply no less than a high double digit percentage of ADMA BioManufacturing’s requested NSP amounts, provided that such requested normal source plasma amounts are within an agreed range, at a price per liter to be mutually determined. Furthermore, pursuant to the amendment to the 2017 Plasma Purchase Agreement, in the event BPC fails to supply ADMA BioManufacturing with at least a high double digit percentage of ADMA BioManufacturing’s requested normal source plasma amounts, BPC shall promptly reimburse ADMA BioManufacturing the difference in price ADMA BioManufacturing incurs due to BPC’s election not to supply NSP to ADMA BioManufacturing in such amounts as requested. On December 10, 2018, BPC assigned its rights and obligations under the Plasma Purchase Agreement to Grifols, effective January 1, 2019.

The Company purchases substantially all of its raw material plasma from Grifols. For the three months ended March 31, 2020, plasma purchases from Grifols totaled approximately $2.0 million, representing approximately 46% of the Company’s total inventory purchases. For the three months ended March 31, 2019, plasma purchases from BPC totaled $0.2 million, or approximately 11% of the Company’s total inventory purchases.

Post-marketing commitments

In connection with the approval of the BLA for BIVIGAM, on December 19, 2012 Biotest committed to perform two additional post-marketing studies, a pediatric study to evaluate the efficacy and safety of BIVIGAM in children and adolescents, and a post-authorization safety study to further assess the potential risk of hypotension and hepatic and renal impairment in BIVIGAM-treated patients with primary humoral immunodeficiency. These studies are still pending completion, as such ADMA has assumed the remaining obligations, and the costs of the studies will be expensed as incurred as research and development expenses. The Company currently expects both studies to be completed by the end of 2021.

In connection with the FDA’s approval of ASCENIV on April 1, 2019, the Company is required to perform a pediatric study to evaluate the safety and efficacy of ASCENIV in children and adolescents. This study is required to be completed by June of 2023.

Employment contracts

The Company has entered into employment agreements with its executive management team consisting of its President and Chief Executive Officer, its Executive Vice President, Chief Medical Officer and Chief Scientific Officer and its Executive Vice President and Chief Financial Officer.

Other commitments

In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s maximum exposure under these arrangements is unknown as of March 31, 2020. The Company does not anticipate recognizing any significant losses relating to these arrangements.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of presentation

Use of estimates

Fair value of financial instruments

Accounts receivable

Inventories

Goodwill

Impairment of long-lived assets

Revenue recognition

Cost of product revenue

Loss per common share

	For the Three Months Ended March 31,
	2020		2019
Stock options		6,753,354		5,599,435
Restricted stock units		333,500		—
Warrants		2,138,160		1,888,160
		9,225,014		7,487,595

Stock-based compensation

Income Taxes

Recent Accounting Pronouncements

7. STOCKHOLDERS' EQUITY (Details 1)	3 Months Ended
7. STOCKHOLDERS' EQUITY (Details 1)	Mar. 31, 2020 $ / shares shares
Shares
Outstanding at beginning of period \| shares	5,630,351
Forfeited \| shares	(29,087)
Expired \| shares	(4,852)
Granted \| shares	1,158,900
Exercised \| shares	(1,958)
Outstanding at end of period \| shares	6,753,354
Options exercisable \| shares	3,780,306
Weighted Average Exercise Price
Outstanding at beginning of period \| $ / shares	$ 4.76
Forfeited \| $ / shares	3.65
Expired \| $ / shares	4.60
Granted \| $ / shares	2.96
Exercised \| $ / shares	3.67
Outstanding at end of period \| $ / shares	4.46
Options exercisable \| $ / shares	$ 5.29

7. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	3 Months Ended
7. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, issued	86,345,313	59,318,355
Common stock, outstanding	86,345,313	59,318,355
Unrecognized compensation expense	$ 5,700,000
Unrecognized compensation expense recognition period	2 years 8 months 12 days

10. SEGMENTS (Details) - USD ($)	3 Months Ended
10. SEGMENTS (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenues	$ 10,199,744	$ 3,528,589
Cost of product revenue	16,829,226	9,405,179
Loss from operations	(16,769,786)	(13,208,416)
Interest and other (expense) income, net	(2,475,444)	(1,424,465)
Gain on transfer of plasma center assets	0	11,527,421
Loss on extinguishment of debt	0	(9,962,495)
Net (loss) income	(19,245,230)	(13,067,955)
Purchase of property and equipment	2,074,876	110,453
Depreciation and amortization	788,838	805,330
Total assets	210,523,827	78,119,970	$ 127,090,725
ADMA BioManufacturing
Revenues	7,743,275	1,343,983
Cost of product revenue	14,451,954	7,940,346
Loss from operations	(12,476,144)	(10,620,807)
Interest and other (expense) income, net	(238,873)	(169,613)
Gain on transfer of plasma center assets	0	0
Loss on extinguishment of debt	0	0
Net (loss) income	(12,715,017)	(10,790,420)
Purchase of property and equipment	1,914,614	110,453
Depreciation and amortization	674,973	687,393
Total assets	104,645,897	57,529,070
Plasma Collection Centers
Revenues	2,420,761	2,148,898
Cost of product revenue	2,377,272	1,464,833
Loss from operations	(457,155)	29,579
Interest and other (expense) income, net	0	13,620
Gain on transfer of plasma center assets	0	11,527,421
Loss on extinguishment of debt	0	0
Net (loss) income	(457,155)	11,570,620
Purchase of property and equipment	160,262	0
Depreciation and amortization	111,289	114,241
Total assets	5,376,807	4,038,367
Corporate
Revenues	35,708	35,708
Cost of product revenue	0	0
Loss from operations	(3,836,487)	(2,617,188)
Interest and other (expense) income, net	(2,236,571)	(1,268,472)
Gain on transfer of plasma center assets	0	0
Loss on extinguishment of debt	0	(9,962,495)
Net (loss) income	(6,073,058)	(13,848,155)
Purchase of property and equipment	0	0
Depreciation and amortization	2,576	3,696
Total assets	$ 100,501,123	$ 16,552,533

12. LEASE OBLIGATIONS (Details)	Mar. 31, 2020 USD ($)
Leases [Abstract]
Remainder of 2020	$ 320,128
2021	481,708
2022	480,982
2023	461,853
2024	417,721
Thereafter	978,007
Total payments	3,140,399
Less: imputed interest	(1,114,773)
Current portion	(193,987)
Total	$ 1,831,639

11. TRANSFER OF PLASMA CENTER ASSETS	3 Months Ended
11. TRANSFER OF PLASMA CENTER ASSETS	Mar. 31, 2020
Transfer Of Plasma Center Assets
11. TRANSFER OF PLASMA CENTER ASSETS	As part of the purchase price for the Biotest Transaction (see Note 1), the Company transferred its Marietta, GA and Norcross, GA plasma collection centers to BPC effective January 1, 2019. The Company had estimated the combined fair value of the two facilities to be $12.6 million, and the Company recorded an obligation for this amount as of the date of the Biotest Transaction. On January 1, 2019, upon the transfer of the two plasma collection facilities to BPC, the Company recorded a gain in the amount of $11.5 million, which reflects the derecognition of the obligation to transfer ownership of the two facilities net of the carrying value of the assets associated with these facilities, primarily property and equipment and inventory, in the amount of $1.1 million.

3. INVENTORIES (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 29,717,087	$ 33,381,806
Work-in-process	17,139,411	14,455,665
Finished goods	5,432,305	5,227,263
Total inventories	$ 52,288,803	$ 53,064,734

4. INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Cost	$ 6,084,024	$ 6,084,024
Accumulated amortization	3,103,388	2,924,550
Net	2,980,636	3,159,474
Trademark and other intangible rights related to Nabi-HB
Cost	4,100,046	4,100,046
Accumulated amortization	1,659,542	1,513,112
Net	2,440,504	2,586,934
Right to intermediates
Cost	907,421	907,421
Accumulated amortization	367,289	334,881
Net	540,132	572,540
Customer contract
Cost	1,076,557	1,076,557
Accumulated amortization	1,076,557	1,076,557
Net	$ 0	$ 0

4. INTANGIBLE ASSETS (Details 1)	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 536,514
2021	715,352
2022	715,352
2023	715,352
2024	$ 298,066

5. PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Property, plant and equipment, gross	$ 41,393,727	$ 37,466,273
Less: accumulated depreciation and amortization	(6,332,932)	(5,724,956)
Property, plant and equipment, net	35,060,795	31,741,317
Manufacturing and laboratory equipment
Property, plant and equipment, gross	9,524,749	8,831,817
Office equipment and computer software
Property, plant and equipment, gross	2,220,856	1,690,248
Furniture and fixtures
Property, plant and equipment, gross	1,133,132	582,088
Construction in process
Property, plant and equipment, gross	6,022,188	4,285,915
Leasehold improvements
Property, plant and equipment, gross	1,673,084	1,673,084
Land
Property, plant and equipment, gross	4,339,441	4,339,441
Buildings
Property, plant and equipment, gross	$ 16,480,277	$ 16,063,680

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Stockholders Equity
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, issued	86,345,313	59,318,355
Common stock, outstanding	86,345,313	59,318,355

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Potentially dilutive securities	9,225,014	7,487,595
Stock Options
Potentially dilutive securities	6,753,354	5,599,435
Restricted stock units
Potentially dilutive securities	333,500	0
Warrants
Potentially dilutive securities	2,138,160	1,888,160

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Goodwill	$ 3,529,509	$ 3,529,509

5. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended
5. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 600,000	$ 600,000

6. DEBT (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Notes payable	$ 85,000,000	$ 72,500,000
Less:
Debt discount	(3,787,910)	(4,208,837)
Senior notes payable	$ 81,212,090	$ 68,291,163

6. DEBT (Details 1) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Subordinated note payable to Biotest	$ 15,000,000	$ 15,000,000
Less:
Debt discount	(83,163)	(91,947)
Subordinated note payable	$ 14,916,837	$ 14,908,053

7. STOCKHOLDERS' EQUITY (Details)	3 Months Ended
7. STOCKHOLDERS' EQUITY (Details)	Mar. 31, 2020	Mar. 31, 2019
STOCKHOLDERS' EQUITY
Expected term, minimum	5 years 9 months 18 days	5 years 9 months 18 days
Expected term, maximum	6 years 3 months 18 days	6 years 3 months 18 days
Volatility	62.00%	61.00%
Dividend yield	0.00%	0.00%
Risk-free interest rate, minimum	0.47%	2.25%
Risk-free interest rate, maximum	1.68%	2.63%

7. STOCKHOLDERS' EQUITY (Details 2) - USD ($)	3 Months Ended
7. STOCKHOLDERS' EQUITY (Details 2) - USD ($)	Mar. 31, 2020	Mar. 31, 2019
Total stock-based compensation expense	$ 676,548	$ 637,263
Research and development
Total stock-based compensation expense	93,574	86,523
Plasma centers
Total stock-based compensation expense	7,244	11,540
Selling, general and administrative
Total stock-based compensation expense	523,889	498,471
Cost of product revenue
Total stock-based compensation expense	$ 51,841	$ 40,729

13. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
SUPPLEMENTAL INFORMATION:
Cash paid for interest	$ 2,017,866	$ 1,369,939
Noncash Financing and Inesting Activities:
Equipment acquired reflected in accounts payable and accrued liabilities	2,340,337	35,823
Right-to-use assets obtained in exchange for lease obligations	545,630	1,404,281
Warrants issued in connection with note payable	$ 0	$ 2,699,208