LOS ANGELES, Feb. 7, 2018 /PRNewswire/ -- Stellar
Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a
key protein utilized in multiple immunotherapy development
pipelines targeting Alzheimer's, diabetes, lupus and cancers, among
other diseases, today reported financial results for the three
months ended December 31, 2017 and
provided an update on its business.
"Stellar today has multiple customers progressing in their
clinical trials, and we are excited about the opportunities
provided by our technology and market position," said Stellar
President and Chief Executive Officer Frank
Oakes. Results from the first of these third party clinical
trials are expected as early as midyear. "While the outcomes of
clinical trials cannot be predicted, we are focused operationally
on rapidly preparing to meet the greater requirements of
anticipated Phase 3 clinical studies," he said.
Stellar Chief Financial Officer Kathi
Niffenegger said that during the first quarter, the company
completed multiple engineering lots under its optimization
initiative and continued to prioritize research and development.
"These development projects are designed to support Stellar's
commercial partnerships as well as advance our KLH production and
manufacturing capabilities."
Financial Results
Total revenues for the quarter ended December 31, 2017 were $.02 million compared to $.14 million for the same period in 2016. 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 $0.15
million to $1.41 million for
the quarter ended December 31, 2017
compared to $1.56 million for the
same period in 2016.
- Cost of sales decreased by $.08
million to less than $.01
million for the quarter ended December 31, 2017 compared to $.08 million for the same period in 2016
primarily due to decreased product sales volume as well as reduced
expenses related to sales of KLH that was produced as a byproduct
of the company's research and development activities.
- Research and development expenses increased by $.17 million to $.63
million for the quarter ended December 31, 2017 compared to $.46 million for the same period in 2016. The
increase was primarily due to research and development activities
intended to increase the scalability and throughput capacity of
existing manufacturing systems, including engineering lots of KLH
produced under the company's optimization initiative.
- General and administrative expenses decreased by $.25 million to $.68
million for the quarter ended December 31, 2017 compared to $.93 million for the same period in 2016
primarily due to management's continued actions to reduce corporate
expenses.
For the first quarter of fiscal year 2018, Stellar reported a
net loss of $1.40 million, or
$0.13 per basic share, compared to a
net loss of $1.49 million, or
$0.15 per basic share, for the first
quarter of the prior year.
At December 31, 2017, the company
had working capital of $5.1 million.
Cash, cash equivalents and short-term investments totaled
$5.4 million.
Stellar will file its Form 10-Q for the quarter ended
December 31, 2017 with the Securities
and Exchange Commission on or about February
7, 2018. To view the company's filings with the Canadian
Securities Administrators (CSA), visit the CSA's SEDAR website.
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.
Condensed Interim
Consolidated Statements of Operations
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
December
31,
|
|
|
2017
|
2016
|
|
|
|
|
Total
Revenues
|
$
20,487
|
$
141,856
|
|
|
|
|
Expenses:
|
|
|
|
Cost of
sales
|
2,801
|
78,565
|
|
Costs of
aquaculture
|
98,050
|
84,835
|
|
Research and
development
|
631,034
|
460,865
|
|
General and
administrative
|
678,481
|
932,067
|
|
|
|
|
|
Total
Expenses
|
1,410,366
|
1,556,332
|
|
|
|
|
Loss from
Operations
|
(1,389,879)
|
(1,414,476)
|
|
|
|
|
Other Income
(Loss):
|
|
|
|
Foreign exchange
loss
|
(17,929)
|
(77,390)
|
|
Other
income
|
7,862
|
6,994
|
|
|
|
|
Income tax
expense
|
800
|
800
|
|
|
|
|
Net
Loss
|
$
(1,400,746)
|
$
(1,485,672)
|
|
|
|
|
Loss per common
share:
|
|
|
|
Basic and
diluted
|
$
(0.13)
|
$
(0.15)
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic and
diluted
|
10,520,096
|
10,136,258
|
Condensed Interim
Consolidated Balance Sheets
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
December
31,
|
September
30,
|
|
|
2017
|
2017
|
|
|
|
|
Assets:
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
5,368,246
|
$
6,565,352
|
|
Other current
assets
|
289,060
|
193,095
|
|
Noncurrent
assets
|
936,088
|
961,558
|
|
|
|
|
|
Total
Assets
|
$
6,593,394
|
$
7,720,005
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
574,376
|
$
320,947
|
|
Shareholders'
equity
|
6,019,018
|
7,399,058
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
6,593,394
|
$
7,720,005
|
Condensed Interim
Consolidated Statements of Cash Flows
|
(Unaudited - Prepared
by Management)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
December
31,
|
|
|
|
2017
|
2016
|
|
|
|
|
|
Cash Flows Used In
Operating Activities:
|
|
|
|
Net loss
|
$
(1,400,746)
|
$
(1,485,672)
|
|
Items not affecting
cash:
|
|
|
|
|
Depreciation and
amortization
|
49,309
|
45,470
|
|
|
Share-based
compensation
|
20,706
|
36,442
|
|
|
Foreign exchange
loss
|
17,929
|
77,390
|
|
|
Transfer equipment to
research and development
|
10,835
|
-
|
|
Changes in working
capital items
|
157,504
|
(38,664)
|
|
|
|
|
|
Net cash used in
operating activities
|
(1,144,463)
|
(1,365,034)
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Acquisition of
property, plant and equipment
|
(34,767)
|
(84,424)
|
|
Purchase of
short-term investments
|
(4,174)
|
(4,804)
|
|
Proceeds on sales and
maturities of short-term investments
|
1,000,000
|
-
|
|
|
|
|
|
Net cash provided
by (used in) investing activities
|
961,059
|
(89,228)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(17,876)
|
(77,233)
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(201,280)
|
(1,531,495)
|
|
|
|
|
|
Cash and cash
equivalents - beginning of period
|
4,570,951
|
7,416,904
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
4,369,671
|
$
5,885,409
|
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SOURCE Stellar Biotechnologies, Inc.