Gross Profit
Gross profit for the three months ended September 30, 2021 and 2020 was $0.17 million and $0.30 million, respectively, a decrease of approximately $0.13 million. Gross profit percentage was 81.0% for the three months ended September 30, 2021 and 73.9% for the three months ended September 30, 2020. The increase in gross profit percentage was largely due to the completion in 2021 of a small number of higher gross profit projects.
Research and Development Expenses (“R&D”)
Research and development expenses for the three months ended September 30, 2021 and 2020 were $2.5 million and $1.9 million, respectively, an increase of approximately $0.6 million. The increase was primarily related to increases in personnel and other expenses to support the Company’s development of a portfolio of proprietary therapeutics and vaccines.
General and Administrative Expenses (“G&A”)
General and administrative expenses for the three months ended September 30, 2021 and 2020 were approximately $6.6 million and $5.4 million respectively, an increase of $1.2 million. The increase resulted primarily from an increase in headcount and consulting costs to increase production capability and support the portfolio of proprietary therapeutics and vaccines.
Total Operating Expenses
Total operating expenses, consisting primarily of R&D and G&A expenses, for the three months ended September 30, 2021 were approximately $9.1 million, compared with approximately $7.2 million in the same period of 2021.
Total Other Income (Expense)
iBio CDMO’s operations take place in a facility in Bryan, Texas. Until November 1, 2021, the Facility was operated under a 34-year lease (the "Sublease") with the second affiliate of another affiliate of Eastern Capital Limited (“Eastern”), a stockholder of the Company (the “Second Eastern Affiliate”). Such Sublease is accounted for as a finance lease and included in Other Income.
Total Other Income (expense) for the three months ended September 30, 2021 and 2020 was approximately $0.03 million and ($0.61) million, respectively. For the three months ended September 30, 2021, Total Other Income primarily included interest expense of approximately $.7 million incurred under the finance lease offset by $.6 million of Forgiveness of note payable and accrued interest and $.13 million of interest income. For the three months ended September 30, 2020, Total Other Expense primarily included interest expense of approximately $.6 million incurred under the finance lease.
Net Loss Attributable to Noncontrolling Interest
This represents the share of the loss in iBio CDMO for an affiliate of Eastern (the “Eastern Affiliate”) for the three months ended September 30, 2021 and 2020.
Net Loss Attributable to iBio, Inc. Stockholders
Net loss attributable to iBio, Inc. stockholders for the three months ended September 30, 2021 was approximately ($9) million, or ($0.04) per share and includes preferred stock dividends for iBio CMO Tracking Stock of approximately $66,000. Net loss available to iBio, Inc. stockholders for the three months ended September 30, 2020 was approximately ($7.6) million, or ($0.05) per share, and included preferred stock dividends for iBio CMO Tracking Stock of approximately $66,000.
Liquidity and Capital Resources
As of September 30, 2021, we had cash and cash equivalents plus debt securities of approximately $82.3 million as compared to $97.0 million as of June 30, 2021.
As discussed above, on November 1, 2021, we purchased the manufacturing facility we had previously operated under a lease from the Eastern Affiliates. We also acquired the approximate 30% equity interest in iBio CDMO, LLC. (“CDMO”) held by the Eastern Affiliates. In order to finance these purchases, we borrowed $22.375M under the terms of the Credit Agreement and used approximately $6M of cash to pay the $28,750,000 purchase price. Despite incurring additional interest payments under the Credit Agreement, the termination of the Sublease is expected to lower the cash requirements of the Facility by 67% (or approximately $2M per year). In addition, the purchases provide us with the flexibility to explore potential longer-term financing options for our Facility, including, but not limited