GERMANTOWN, Md., Nov. 14, 2019 /PRNewswire/ -- Seneca Biopharma,
Inc. (Nasdaq: SNCA), a clinical-stage biopharmaceutical company
developing novel treatments for various diseases of high unmet
medical need, reported its financial results for the three and nine
months ended September 30, 2019.
RECENT HIGHLIGHTS & ACCOMPLISHMENTS:
- Name change to Seneca Biopharma, Inc. (SNCA) in October 2019;
- Signed non-binding term sheet for an exclusive license to a
pipeline of monoclonal antibody product candidates for a range of
auto-immune and other diseases;
- Completed $7.5 million
underwritten public offering; and
- Regained compliance with the NASDAQ listing requirements.
"We are pleased at the progress we have made to reshape our
company. Changing our name to Seneca Biopharma, Inc. is symbolic of
our new focus and direction. Additionally, with our recently
announced non-binding term sheet with Jiangsu QYuns Therapeutics
Co., Ltd., we have accomplished one of our primary objectives in
moving forward with the transformation of the Company" said
Ken Carter, Executive Chairman of
Seneca.
Financial Results for the Quarter Ended September 30, 2019
Research and Development Expenses: R&D expenses for
the quarter ended September 30, 2019
decreased to $0.8 million versus the
comparable period of 2018 of $0.9
million. The decrease reflects reduced clinical activities
offset by increases in costs of identification and evaluation of
strategic program opportunities.
R&D expenses for the nine months ended September 30, 2019 increased by $0.2 million, 7%, to $3.3
million from $3.1 million over
the comparable period of 2018. This increase was primarily
attributable to increases in costs of identification and evaluation
of strategic program opportunities, a $0.5
million write-off related to an employee payable in
connection with such employee's termination, and partially offset
by a decrease in clinical costs.
General and Administrative Expenses: G&A expenses for
the quarter ended September 30, 2019
increased by $0.1 million to
$1.3 million, or 10%, over the
$1.2 million reflected in the
comparable period of 2018. This increase primarily relates to an
increase in non-cash compensation expense which was partially
offset by a decrease in tax expense.
G&A expenses for the nine months ended September 30, 2019 decreased by $0.4 million to $3.2
million, or 13%, from $3.6
million reflected in the comparable period of 2018. This
decrease is the result of general expense reduction efforts across
multiple areas including consulting, outside services, tax and
insurance expense as well as an increase in non-cash compensation
expense.
Net Loss: Net loss for the quarter ended September 30, 2019 was $1.8 million, or $0.59 per share, compared to a loss of
$1.8 million, or $2.41 per share, for the comparable period of
2018. Weighted average shares outstanding were 3.0 million shares
at September 30, 2019 compared to
0.76 million shares at September 30,
2018.
Net loss for the nine months ended September 30, 2019 was $6.3 million, or $4.80 per
share, compared to a loss of $4.6
million, or $6.08 per share,
for the comparable period of 2018. Weighted average shares
outstanding were 1.3 million shares at September 30, 2019 compared to 0.76 million
shares at September 30, 2018.
All per share numbers have been retroactively adjusted for our
1-for-20 reverse stock split.
The net loss in the three and nine-month periods of 2018 were
positively impacted by reductions in the derivative liabilities
related to outstanding warrants reflected on the September 30, 2018 statement of operations of
$0.2 and $1.8
million, respectively. The corresponding 2019 three- and
nine-month periods also reflect reduced derivative liabilities with
the impact reflected on the statement of operations in the amounts
of $0.3 and $0.4 million, respectively.
Cash Position and Liquidity: At September 30, 2019, cash, cash equivalents and
short-term investments were $7.3
million as compared to $5.8
million at December 31, 2018.
The Company anticipates its existing cash, cash equivalents to fund
its operations, based on its current operating plans, into the
third quarter of 2020.
Seneca Biopharma,
Inc.
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
7,299,836
|
|
$
5,787,110
|
Trade and other
receivables
|
61,154
|
|
294,057
|
Current portion of
related party receivable, net of discount
|
-
|
|
63,938
|
Prepaid
expenses
|
605,312
|
|
363,288
|
Total current
assets
|
7,966,302
|
|
6,508,393
|
|
|
|
|
Property and
equipment, net
|
51,943
|
|
90,311
|
Patents,
net
|
688,127
|
|
763,543
|
Related party
receivable, net of discount and current portion
|
-
|
|
298,238
|
ROU and other
assets
|
237,141
|
|
23,965
|
Total
assets
|
$
8,943,513
|
|
$
7,684,450
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Accounts payable and
accrued expenses
|
$
1,181,364
|
|
$
832,564
|
Short term note and
other current liabilities
|
400,016
|
|
218,602
|
Total current
liabilities
|
1,581,380
|
|
1,051,166
|
|
|
|
|
Warrant liabilities,
at fair value
|
166,938
|
|
583,734
|
Lease liability, net
of current portion
|
152,632
|
|
-
|
Total
liabilities
|
1,900,950
|
|
1,634,900
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Preferred stock,
7,000,000 shares authorized, $0.01 par value; 200,000 and
1,000,000 shares issued and outstanding at September 30, 2019 and
December 31,
2018, respectively
|
2,000
|
|
10,000
|
Common stock, $0.01
par value; 300,000,000 shares authorized, 2,818,291 and
910,253 shares issued and outstanding at September 30, 2019 and
December 31,
2018, respectively
|
28,183
|
|
9,103
|
Additional paid-in
capital
|
226,957,990
|
|
219,654,753
|
Accumulated other
comprehensive loss
|
(7,670)
|
|
(413)
|
Accumulated
deficit
|
(219,937,940)
|
|
(213,623,893)
|
Total
stockholders' equity
|
7,042,563
|
|
6,049,550
|
Total liabilities
and stockholders' equity
|
$
8,943,513
|
|
$
7,684,450
|
Seneca Biopharma,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Statements of Operations and Comprehensive
Loss
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
2,500
|
|
$
2,500
|
|
$
12,894
|
|
$
257,500
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
825,486
|
|
897,098
|
|
3,294,402
|
|
3,081,319
|
|
General and
administrative expenses
|
1,301,189
|
|
1,188,076
|
|
3,217,613
|
|
3,630,822
|
|
Total operating
expenses
|
2,126,675
|
|
2,085,174
|
|
6,512,015
|
|
6,712,141
|
|
Operating
loss
|
(2,124,175)
|
|
(2,082,674)
|
|
(6,499,121)
|
|
(6,454,641)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
15,234
|
|
17,619
|
|
55,086
|
|
54,882
|
|
Interest
expense
|
(1,913)
|
|
(1,498)
|
|
(4,437)
|
|
(4,190)
|
|
Change in fair value
of derivative instruments
|
320,785
|
|
236,270
|
|
416,796
|
|
1,805,319
|
|
Other income
(expense)
|
26,935
|
|
-
|
|
(282,371)
|
|
(5,667)
|
|
Total other
income
|
361,041
|
|
252,391
|
|
185,074
|
|
1,850,344
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(1,763,134)
|
|
$
(1,830,283)
|
|
$
(6,314,047)
|
|
$
(4,604,297)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share -
basic and diluted
|
$
(0.59)
|
|
$
(2.41)
|
|
$
(4.80)
|
|
$
(6.08)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding - basic and diluted
|
2,975,779
|
|
758,575
|
|
1,316,597
|
|
757,221
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
|
Net loss
|
$
(1,763,134)
|
|
$
(1,830,283)
|
|
$
(6,314,047)
|
|
$
(4,604,297)
|
|
Foreign currency
translation adjustment
|
(4,501)
|
|
(512)
|
|
(7,257)
|
|
(2,001)
|
|
Comprehensive
loss
|
$
(1,767,635)
|
|
$
(1,830,795)
|
|
$
(6,321,304)
|
|
$
(4,606,298)
|
|
About Seneca Biopharma, Inc.
Seneca Biopharma, Inc., is a clinical-stage biopharmaceutical
company developing novel treatments for various diseases of high
unmet medical need. The Company is in the process of transforming
the organization through the acquisition or in-licensing of new
science and technologies, to develop with the goal of providing
meaningful therapies for patients.
Cautionary Statement Regarding Forward Looking
Information:
This news release contains "forward-looking statements" made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
relate to future, not past, events and may often be identified by
words such as "expect," "anticipate," "intend," "plan," "believe,"
"seek" or "will." Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Specific
risks and uncertainties that could cause our actual results to
differ materially from those expressed in our forward-looking
statements include risks inherent in the development and
commercialization of potential products, uncertainty of clinical
trial results or regulatory approvals or clearances, need for
future capital, dependence upon collaborators and maintenance of
our intellectual property rights. Actual results may differ
materially from the results anticipated in these forward-looking
statements. Additional information on potential factors that could
affect our results and other risks and uncertainties are detailed
from time to time in Seneca's
periodic reports, including its Annual Report on Form 10-K for the
year ended December 31, 2018, as well
as our Quarterly Reports on Form 10-Q, filed with the Securities
and Exchange Commission (SEC), and in other reports filed with the
SEC. We do not assume any obligation to update any forward-looking
statements.
Contact:
Hibiscus Bioventures
josh@hibiscusbio.com
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SOURCE Seneca Biopharma