LOS ANGELES, Dec. 1, 2017 /PRNewswire/ -- Stellar
Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a
key protein utilized in multiple immunotherapy development
pipelines targeting Alzheimer's, lupus, diabetes and cancers, among
other diseases, today reported financial results for the fiscal
year ended September 30, 2017 and
provided an update on its business.
During fiscal year 2017, the company advanced a number of
strategic initiatives to optimize its manufacturing operations and
to secure additional locations for the biologic source of KLH.
Stellar currently has multiple customers with KLH-based drug
candidates in Phase 2 studies. While the outcomes of these clinical
studies cannot be predicted, the company is preparing for the
possible impact that favorable clinical results could have on the
KLH market and the company's supply capabilities.
Stellar President and Chief Executive Officer Frank Oakes said that the company has been
preparing to meet the broader scope and increased KLH requirements
of its customers. "Our immediate focus is to prepare for the
successful development of third party drug candidates that rely on
Stellar KLH. By closely aligning our business with our strategic
customers, we are positioning the company to share in the
successful development and commercialization of drug candidates
that utilize our KLH products."
Stellar Chief Financial Officer Kathi
Niffenegger said, "Our expenditures for the fiscal year were
well in line with our plans, reflecting our continued vigilance in
managing our working capital and the flexibility of our business
model. For fiscal 2018, we expect to prioritize spending for
manufacturing and related initiatives as well as capital projects
needed to support the future KLH supply requirements of our
customers and strategic partners."
Financial Results for the Fiscal Year Ended September 30, 2017
Total revenues for fiscal year 2017 were $0.23 million compared to $1.27 million for the prior year. The change was
primarily due to a decrease in product sales volume. While the
company's customer base has not changed significantly, product
sales volumes are subject to variability associated with the rate
of development and progression of clinical studies of third-party
products that utilize Stellar KLH.
Total expenses decreased by $0.73
million to $5.45 million for
fiscal year 2017 compared to $6.18
million for the prior year.
- Costs of sales and contract services decreased by $0.57 million to $0.25
million for fiscal year 2017 compared to $0.82 million for the prior year primarily due to
decreased product sales.
- Research and development expenses increased by $0.24 million to $1.97
million for fiscal year 2017 compared to $1.73 million for the prior year. The increase
was primarily due to research and development activities intended
to increase the scalability and throughput capacity of existing
manufacturing systems; improvements in analytical, manufacturing,
and purification processes; stability studies; and formulation
development.
- General and administrative expenses decreased by $0.38 million to $2.94
million for fiscal year 2017 compared to $3.32 million for the prior year primarily due to
management's actions to reduce corporate expenses, including travel
and professional fees, as well as lower legal fees and public
company expenses.
For fiscal year 2017, Stellar reported a net loss of
$5.03 million, or $0.49 per basic share, compared to a net loss of
$5.03 million, or $0.57 per basic share, for fiscal year
2016.
At September 30, 2017, the company
had working capital of $6.4 million.
Cash, cash equivalents and short-term investments totaled
$6.6 million.
Stellar will file its Form 10-K for the period ending
September 30, 2017 with the
Securities and Exchange Commission on Friday, December 1, 2017. To view the Company's
filings under Forms 10-K, 10-Q and 8-K, please visit the website of
the Securities and Exchange Commission (www.sec.gov). To view the
company's filings with the Canadian Securities Administrators
("CSA"), including the Management Discussion and Analysis and
related consolidated financial statements, please visit the CSA's
SEDAR website (www.sedar.com).
About Stellar Biotechnologies
Based north of
Los Angeles at the Port of
Hueneme, Stellar Biotechnologies, Inc. (Nasdaq: SBOT) is the leader
in sustainable manufacture of Keyhole Limpet Hemocyanin (KLH), an
immune-stimulating protein utilized as a carrier molecule in
therapeutic vaccines (targeting cancers, immune disorders,
Alzheimer's and inflammatory diseases) and for assessing immune
system function. KLH can also be used in immunotoxicology studies
for monitoring the immunomodulatory effects of drug candidates.
Stellar is committed to meeting the growing demand for
commercial-scale supplies of GMP grade KLH, ensuring
environmentally sound KLH production, and developing KLH-based
active immunotherapies. Stellar KLH is a trademark of Stellar
Biotechnologies.
Follow Stellar: LinkedIn | Twitter | Facebook | Google+
Stellar Forward-Looking Statements
This press
release may contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements may be identified by the use of words
such as "anticipate," "believe," "plan," "estimate," "expect,"
"intend," "may," "will," "would," "could," "should," "might,"
"potential," or "continue" and variations or similar expressions.
Readers should not unduly rely on these forward-looking statements,
which are not a guarantee of future performance. There can be no
assurance that forward-looking statements will prove to be
accurate, as all such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause
actual results or future events to differ materially from the
forward-looking statements. Such risks include, but may not be
limited to: general economic and business conditions; technology
changes; competition; changes in strategy or development plans;
availability of funds and resources; anticipated requirements for
operating capital; governmental regulations and the ability or
failure to comply with governmental regulations; changes in trade
policy and international law; the timing of Stellar's or its
partners' anticipated results, including in connection with
clinical trials; the ability to meet the goals of Stellar's joint
ventures and strategic partnerships; and other factors referenced
in Stellar's filings with securities regulators. For a discussion
of further risks and uncertainties related to the Stellar's
business, please refer to Stellar's public company reports filed
with the U.S. Securities and Exchange Commission and the British
Columbia Securities Commission. All forward-looking statements are
made as of the date hereof and are subject to change. Except as
required by law, Stellar assumes no obligation to update such
statements. This press release does not constitute an offer or
solicitation of an offer for sale of any securities in any
jurisdiction, including the United
States.
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Condensed
Consolidated Statements of Operations
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(Expressed in US
Dollars)
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Year
Ended
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|
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September
30,
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September
30,
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September
30,
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2017
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2016
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2015
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Total
Revenues
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$
228,287
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$
1,271,689
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$
758,689
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Expenses:
|
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Costs of sales and
contract services
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250,042
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818,566
|
580,824
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|
Costs of
aquaculture
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284,411
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309,262
|
259,423
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Research and
development
|
1,973,400
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1,729,445
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1,029,489
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General and
administrative
|
2,944,980
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3,322,772
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3,227,545
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Total
Expenses
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5,452,833
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6,180,045
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5,097,281
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Loss from
Operations
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(5,224,546)
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(4,908,356)
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(4,338,592)
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Other Income
(Loss):
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Foreign exchange gain
(loss)
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162,028
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76,800
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(653,333)
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Gain (loss) in fair
value of warrant liability
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-
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(211,956)
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2,131,062
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Other
income
|
32,670
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24,632
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54,634
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Income tax
expense
|
800
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7,200
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36,800
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Net
Loss
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$
(5,030,648)
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$
(5,026,080)
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$
(2,843,029)
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Loss per common
share:
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Basic and
diluted
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$
(0.49)
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$
(0.57)
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$
(0.36)
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Weighted average
number of common shares outstanding:
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Basic and
diluted
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10,237,213
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8,826,312
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7,956,962
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Condensed
Consolidated Balance Sheets
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(Expressed in US
Dollars)
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September
30,
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September
30,
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2017
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2016
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Assets:
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Cash, cash
equivalents and short-term investments
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$
6,565,352
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$
11,405,698
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Other current
assets
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193,095
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693,957
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Noncurrent
assets
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961,558
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838,149
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Total
Assets
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$
7,720,005
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$
12,937,804
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Liabilities and
Shareholders' Equity:
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Accounts payable and
accrued liabilities
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$
320,947
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$
623,644
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Shareholders'
equity
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7,399,058
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12,314,160
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Total Liabilities
and Shareholders' Equity
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$
7,720,005
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$
12,937,804
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Condensed
Consolidated Statements of Cash Flows
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(Expressed in US
Dollars)
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Year
Ended
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|
September
30,
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September
30,
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September
30,
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2017
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2016
|
2015
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Cash Flows Used In
Operating Activities:
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Net loss
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$
(5,030,648)
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$
(5,026,080)
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$
(2,843,029)
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Items not affecting
cash:
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Depreciation and
amortization
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179,322
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149,565
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159,521
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Share-based
compensation
|
115,546
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259,379
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267,222
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Foreign exchange
(gain) loss
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(162,028)
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(76,800)
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653,333
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(Gain) loss in fair
value of warrant liability
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-
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211,956
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(2,131,062)
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Changes in working
capital items
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198,159
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(23,649)
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(518,380)
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Net cash used in
operating activities
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(4,699,649)
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(4,505,629)
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(4,412,395)
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Cash Flows From
Investing Activities:
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Acquisition of
property, plant and equipment
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(302,733)
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(402,271)
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(274,589)
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Purchase of
short-term investments
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(5,005,607)
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(11,995,450)
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(13,677)
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Proceeds on sales and
maturities of short-term investments
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7,000,000
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13,021,827
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410,736
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Contribution to joint
venture
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-
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(66,695)
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-
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Net cash provided
by investing activities
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1,691,660
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557,411
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122,470
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Cash Flows From
Financing Activities:
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Proceeds from
issuance of common shares, net of issuance costs
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-
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5,944,736
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-
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Proceeds from
exercise of warrants and options
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-
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1,368,260
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106,777
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Net cash provided
by financing activities
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-
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7,312,996
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106,777
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Effect of exchange
rate changes on cash and cash equivalents
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162,036
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96,623
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(629,808)
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Net change in cash
and cash equivalents
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(2,845,953)
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3,461,401
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(4,812,956)
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Cash and cash
equivalents - beginning of year
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7,416,904
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3,955,503
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8,768,459
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Cash and cash
equivalents - end of year
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$
4,570,951
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$
7,416,904
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$
3,955,503
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View original
content:http://www.prnewswire.com/news-releases/stellar-biotechnologies-reports-fiscal-year-2017-financial-results-300564710.html
SOURCE Stellar Biotechnologies, Inc.