SAN DIEGO, Dec. 8, 2015 /PRNewswire/ -- OncoSec Medical
Incorporated ("OncoSec") (NASDAQ: ONCS), a company developing
DNA-based intratumoral cancer immunotherapies, today announced
financial results for the first quarter of fiscal year ended
July 31, 2016.
FINANCIAL RESULTS
For the first quarter of fiscal
2016, OncoSec reported a net loss of $7.0
million, or $0.47 per share,
compared to a net loss of $4.1
million, or $0.33 per share,
for the same period last year. The net loss includes non-cash items
such as stock compensation expense and depreciation. The
increase in net loss for the quarter-ended October 31, 2015, resulted primarily from (i)
additional outside services costs to support our development of
next-generation device prototypes and clinical studies, (ii)
additional reagent and lab supply costs to support discovery
research, (iii) incremental legal and audit fees and (iv) an
increase in non-cash stock-based compensation expense primarily
related to our increased headcount. There were no revenues for the
quarter-ended October 31, 2015 or
October 31, 2014.
Research and development expenses were $3.7 million for the first quarter of fiscal
2016, compared to $2.5 million for
the same period in fiscal 2015. General and administrative expenses
were $3.4 million for the first
quarter of fiscal 2016, compared to $1.6
million for the same period in fiscal 2015.
At October 31, 2015, OncoSec had
$26.9 million in cash and cash
equivalents, as compared to $32.0
million of cash and cash equivalents at October 31, 2014. OncoSec expects these funds to
be sufficient to allow the Company to continue to operate its
business for at least the next 12 months.
About OncoSec Medical Incorporated
OncoSec is a
biotechnology company developing DNA-based intratumoral
immunotherapies for the treatment of cancer. The Company's
investigational technology, ImmunoPulse™, is designed to enhance
the local delivery and uptake of DNA-based immune-targeting agents,
such as interleukin-12 (IL-12). In Phase I and II clinical trials,
OncoSec's lead program, ImmunoPulse™ IL-12, demonstrated a
favorable safety profile and evidence of anti-tumor activity in the
treatment of various skin cancers as well as the potential to
initiate a systemic immune response. ImmunoPulse™ IL-12 is
currently in Phase II development for several indications,
including metastatic melanoma, squamous cell carcinoma of the head
and neck, and triple-negative breast cancer. In addition to
ImmunoPulse™ IL-12, the Company is also seeking to identify and
develop new immune-targeting agents for use with the ImmunoPulse™
platform. For more information, please visit www.oncosec.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking
statements regarding future events and the future performance of
OncoSec. Forward-looking statements are subject to risks and
uncertainties, which may cause actual results to differ materially
from current expectations. These risks and uncertainties include,
among others, the following: our ability to raise additional
funding necessary to fund continued operations on reasonable terms
or at all; our ability to protect our intellectual property;
uncertainties inherent in pre-clinical studies and clinical trials,
such as the ability to enroll patients in clinical trials and the
risk of adverse events; delays in the commencement or completion of
clinical testing for product candidates; unexpected new data,
safety and technical issues; our ability to develop and
commercialize the assets we have acquired or develop and any new
assets and product candidates; and competitive, market and
regulatory conditions. Other risks and uncertainties are described
in OncoSec's annual report on Form 10-K filed on October 14, 2015, and subsequent filings with the
U.S. Securities and Exchange Commission made by OncoSec. Except as
required by law, OncoSec undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
|
OncoSec Medical
Incorporated
|
|
Condensed Balance
Sheet
|
|
|
(unaudited)
October 31,
2015
|
|
July 31,
2015
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
26,896,369
|
|
$
|
32,035,264
|
|
Prepaid expenses and
other current assets
|
1,091,048
|
|
1,532,717
|
|
Total Current
Assets
|
27,987,417
|
|
33,567,981
|
|
Property and
equipment, net
|
2,223,391
|
|
1,807,982
|
|
Other long-term
assets
|
187,442
|
|
214,127
|
|
Total
Assets
|
$
|
30,398,250
|
|
$
|
35,590,090
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
2,909,725
|
|
$
|
2,360,505
|
|
Accrued
other
|
268,229
|
|
533,964
|
|
Total
Liabilities
|
3,177,954
|
|
2,894,469
|
|
Commitments and
Contingencies
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock
authorized - 160,000,000 common shares with a par value of
$0.0001, common stock issued and outstanding - 14,828,354
and 14,820,854 common shares as of October 31, 2015
and July 31, 2015, respectively
|
24,948
|
|
24,947
|
|
Additional paid-in
capital
|
73,134,779
|
|
71,572,714
|
|
Warrants issued and
outstanding - 1,895,102 warrants as of
October 31, 2015 and July 31, 2015
|
7,704,103
|
|
7,704,103
|
|
Accumulated
deficit
|
(53,643,534)
|
|
(46,606,143)
|
|
Total Stockholders'
Equity
|
27,220,296
|
|
32,695,621
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
30,398,250
|
|
$
|
35,590,090
|
|
OncoSec Medical
Incorporated
|
|
Condensed
Statements of Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
October 31, 2015
|
|
October 31, 2014
|
|
Revenue
|
$
|
—
|
|
$
|
—
|
|
Expenses:
|
|
|
|
|
Research and
development
|
3,659,313
|
|
2,501,268
|
|
General and
administrative
|
3,375,906
|
|
1,558,938
|
|
Net loss before
income taxes
|
(7,035,219)
|
|
(4,060,206)
|
|
Provision for income
taxes
|
2,172
|
|
910
|
|
Net loss, net of
tax
|
$
|
(7,037,391)
|
|
$
|
(4,061,116)
|
|
Basic and diluted net
loss per common share (1)
|
$
|
(0.47)
|
|
$
|
(0.33)
|
|
Weighted average
shares used in computing basic and diluted net loss
per common share (1)
|
14,826,887
|
|
12,231,554
|
|
|
|
|
(1) Effective May 18,
2015, the Company implemented a reverse stock split pursuant to
which each 20 shares of issued and outstanding common stock held by
each stockholder were combined into and became one share of common
stock, with such resulting shares rounded up to the next whole
share. No fractional shares were issued. All options, warrants and
other convertible securities outstanding immediately prior to the
reverse split were adjusted by dividing the number of shares of
common stock into which the options, warrants and other convertible
securities are exercisable or convertible by 20 and multiplying the
exercise or conversion price by 20, all in accordance with the
terms of the agreements governing such options, warrants and other
convertible securities. The accompanying financial statement data
for the prior period presented has been retroactively adjusted to
reflect the effects of the reverse stock split.
|
|
OncoSec Medical
Incorporated
|
|
Condensed
Statements of Cash Flows (unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
October 31, 2015
|
|
October 31,
2014
|
|
Operating
activities
|
|
|
|
|
Net loss
|
$
|
(7,037,391)
|
|
$
|
(4,061,116)
|
|
Adjustments to
reconcile net loss to net cash used in
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
65,125
|
|
211,347
|
|
Loss on disposal of
fixed assets
|
572
|
|
2,635
|
|
Stock-based
compensation
|
1,562,066
|
|
611,240
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Decrease in prepaid
expenses and other current assets
|
441,669
|
|
30,324
|
|
Decrease in
long-term assets
|
26,685
|
|
—
|
|
Increase (decrease) in
accounts payable and accrued liabilities
|
549,221
|
|
(188,667)
|
|
Decrease in accrued
other and taxes
|
(265,735)
|
|
(35,445)
|
|
Net cash used in
operating activities
|
(4,657,788)
|
|
(3,429,682)
|
|
Investing
activities
|
|
|
|
|
Purchases of property
and equipment
|
(481,107)
|
|
(433,415)
|
|
Net cash used in
investing activities
|
(481,107)
|
|
(433,415)
|
|
Net decrease in cash
and cash equivalents
|
(5,138,895)
|
|
(3,863,097)
|
|
Cash and cash
equivalents, at beginning of period
|
32,035,264
|
|
37,852,694
|
|
Cash and cash
equivalents, at end of period
|
$
|
26,896,369
|
|
$
|
33,989,597
|
|
|
|
|
|
Supplemental
disclosure for cash flow information:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Interest
|
$
|
—
|
|
$
|
—
|
|
Income
taxes
|
$
|
2,172
|
|
$
|
910
|
|
|
|
|
|
Noncash investing and
financing transaction:
|
|
|
|
|
Issuance of common
stock in connections with a contractual agreement
|
$
|
55,500
|
|
$
|
—
|
Contact
Investor Relations:
Jordyn Kopin
OncoSec Medical Incorporated
855-662-6732
investors@oncosec.com
Media Relations:
Mary Marolla
OncoSec Medical Incorporated
855-662-6732
media@oncosec.com
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SOURCE OncoSec Medical Incorporated