Atossa Therapeutics Announces Fourth Quarter and Year End 2019 Financial Results and Provides Company Update
March 26 2020 - 8:00AM
Atossa Therapeutics, Inc. (Nasdaq: ATOS), a clinical-stage
biopharmaceutical company developing novel therapeutics and
delivery methods to treat breast cancer and other breast
conditions, today announced financial results for the fourth
quarter and year ended December 31, 2019 and provides an update on
recent company developments.
“We are very proud of our 2019 accomplishments, as
we focused on developing our proprietary drug Endoxifen to reduce
mammographic breast density (MBD) and to treat breast cancer in the
‘window of opportunity’ - after a patient is diagnosed but before
her surgery,” said Dr. Steven Quay, Atossa’s President and Chief
Executive Officer. “We have received positive data from the
expanded access (or, ‘compassionate-use’) patient taking our oral
Endoxifen and from our Phase 2 study of our topical Endoxifen to
reduce MBD, all while minimizing costs and managing our cash
position.”
Key strategic highlights for 2019 included:
- Completed additional Phase 1 work with our proprietary oral
Endoxifen.
- Contracted with South General Hospital in Stockholm, Sweden to
conduct a Phase 2 study with oral Endoxifen to reduce MBD.
- Continued Phase 2 study underway in Australia administering our
oral Endoxifen to newly diagnosed breast cancer patients in the
“window of opportunity.”
- In developing topical Endoxifen, Phase 2 studies showed
significant and rapid reduction of MBD.
- Received favorable results from our single-patient expanded
access program: the Ki-67 activity decreased by 50%, and the
estrogen receptor content decreased by more than 20% with no safety
or tolerability issues, including vasomotor symptoms such as hot
flashes and night sweats.
- Received IRB approval for a Phase 2 clinical study using our
intraductal microcatheter technology to administer fulvestrant in
patients with early-stage breast cancer or ductal carcinoma in
situ (DCIS) at a major institution.
Recent Corporate Developments
Recent developments include the following:
- Changed the name of the company from Atossa Genetics to Atossa
Therapeutics, which we believe more clearly reflects our focus on
developing therapies and continues to honor Princess Atossa, the
great queen of the Achaemenid Empire who reigned in the fifth
century BCE and who is the earliest recorded woman with breast
cancer.
- Submitted an application to initiate a Phase 2 study of our
oral Endoxifen for the reduction of MBD to the Swedish Medical
Product Agency and the Institutional Review Board.
- Announced that we will meet with the U.S. F.D.A. on April 30,
2020. The objective of this meeting is to discuss the clinical
development of oral Endoxifen to reduce MBD.
2019 Financial Results
For the years ended December 31, 2019 and 2018, we have no
source of sustainable revenue and no associated cost of
revenue.
Operating Expenses: Total operating expenses were $17.3 million
for the year ended December 31, 2019, which is an increase of $5.8
million, or 51%, from the year ended December 31, 2018. Operating
expenses for 2019 consisted of research and development
(R&D) expenses of $6.6 million and general and administrative
(G&A) expenses of $10.6 million. Operating expenses for
2018 consisted of R&D expenses of $4.2 million, and
G&A expenses of $7.2 million. Research
and Development Expenses: R&D expenses for the year ended
December 31, 2019, were $6.6 million, an increase of $2.4 million,
or 58%, from total R&D expenses in 2018 of $4.2 million.
The increase in R&D expense is attributed to
non-cash stock-based compensation, salaries and clinical trial
expenses associated with our Endoxifen program. R&D stock-based
compensation expense, which is a non-cash charge, increased
approximately $2.3 million during 2019 resulting from the
cancellation of certain 2018 options and the 2019
replacement grant of options that were 75% vested and that were
granted at fair market value on the date approval by the Board of
Directors but were in-the-money on the date they were subsequently
approved by the stockholders. There were no option
cancellations or in-the-money option grants in the
comparable period of 2018. Clinical trial expenses also
increased by approximately $250,000 over the same period in
2018.
General and Administrative Expenses: G&A expenses were $10.6
million for the year ended December 31, 2019, an increase of $3.4
million, or 47% from the total G&A expenses for the year ended
December 31, 2018, of $7.2 million. G&A expenses consist
primarily of personnel and related benefit costs, facilities,
professional services, insurance, and public company related
expenses. The increase in G&A expenses for the year
ended December 31, 2019, is attributed to
non-cash stock-based compensation. G&A stock-based
compensation expense, which is a non-cash charge, increased
approximately $4.0 million during 2019 resulting from the
cancellation of certain 2018 options and the 2019
replacement grant of options that were 75% vested and that were
granted at fair market value on the date of approval by the Board
of Directors but were in-the-money on the date they were
subsequently approved by the stockholders. There were no option
cancellations or in-the-money option grants in the
comparable period of 2018. The increase in 2019 expense
G&A expense was offset by a reduction in bonus
compensation expense of approximately $350,000 as
a one-time 2018 bonus was not paid in 2019.
As of December 31, 2019, the Company had approximately $12.6
million in cash and cash equivalents and working capital of
approximately $13.0 million.
About Atossa Therapeutics
Atossa Therapeutics, Inc. is a clinical-stage biopharmaceutical
company developing novel therapeutics and delivery methods to treat
breast cancer and other breast conditions. For more information,
please visit www.atossatherapeutics.com.
Forward-Looking Statements
Forward-looking statements in this press release, which Atossa
undertakes no obligation to update, are subject to risks and
uncertainties that may cause actual results to differ materially
from the anticipated or estimated future results, including the
risks and uncertainties associated with any variation between
preliminary and final clinical results, actions and inactions by
the FDA, the outcome or timing of regulatory approvals needed by
Atossa including those needed to commence studies, lower than
anticipated rate of patient enrollment, estimated market size of
drugs under development, the safety and efficacy of Atossa's
products and services, performance of clinical research
organizations and investigators, obstacles resulting from
proprietary rights held by others with respect to fulvestrant, such
as patent rights, potential market sizes for Atossa's drugs under
development and other risks detailed from time to time in Atossa's
filings with the Securities and Exchange Commission, including
without limitation its periodic reports on Form10-K and 10-Q,each
as amended and supplemented from time to time.
Company Contact: Atossa Therapeutics, Inc. Kyle Guse CFO and
General Counsel Office: 866 893-4927kyle.guse@atossainc.com
Investor Relations Contact: Scott Gordon Core IR377 Oak
StreetConcourse 2Garden City, NY 11530Office:(516)
222-2560scottg@corprominence.com
Source: Atossa Therapeutics, Inc.
ATOSSA THERAPEUTICS,
INC.CONSOLIDATED BALANCE SHEETS
|
|
As of December 31, |
|
|
As of December 31, |
|
Assets |
|
2019 |
|
|
2018 |
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,581,136 |
|
|
$ |
10,380,493 |
|
Restricted cash |
|
|
110,000 |
|
|
|
110,000 |
|
Prepaid expenses |
|
|
862,344 |
|
|
|
509,833 |
|
Research and development tax rebate receivable |
|
|
739,656 |
|
|
|
518,098 |
|
Other current assets |
|
|
26,130 |
|
|
|
30,942 |
|
Total current assets |
|
|
14,319,266 |
|
|
|
11,549,366 |
|
|
|
|
|
|
|
|
|
|
Furniture and equipment, net |
|
|
34,350 |
|
|
|
54,487 |
|
Intangible assets, net |
|
|
68,542 |
|
|
|
99,375 |
|
Right-of-use asset |
|
|
50,479 |
|
|
|
- |
|
Other assets |
|
|
17,218 |
|
|
|
17,218 |
|
Total Assets |
|
$ |
14,489,855 |
|
|
$ |
11,720,446 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
293,171 |
|
|
$ |
353,328 |
|
Accrued expenses |
|
|
77,888 |
|
|
|
177,074 |
|
Payroll liabilities |
|
|
899,420 |
|
|
|
935,070 |
|
Stock-based compensation liability |
|
|
- |
|
|
|
1,410,025 |
|
Lease liability |
|
|
39,371 |
|
|
|
- |
|
Other current liabilities |
|
|
12,892 |
|
|
|
39,939 |
|
Total current liabilities |
|
|
1,322,742 |
|
|
|
2,915,436 |
|
Long term liabilities |
|
|
|
|
|
|
|
|
Lease liability long term |
|
|
11,108 |
|
|
|
- |
|
Total Liabilities |
|
|
1,333,850 |
|
|
|
2,915,436 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
Preferred stock - $0.001 par value; 10,000,000 shares authorized;
671 and 2,379 shares issued and outstanding as of December 31, 2019
and December 31, 2018, respectively |
|
|
1 |
|
|
|
2 |
|
Additional paid-in capital - Series B convertible preferred
stock |
|
|
670,999 |
|
|
|
2,378,997 |
|
Common stock - $0.18 par value; 175,000,000 shares authorized, and
9,130,984 and 5,846,552 shares issued and outstanding, as of
December 31, 2019 and December 31, 2018, respectively |
|
|
1,643,565 |
|
|
|
1,052,372 |
|
Additional paid-in capital |
|
|
104,912,480 |
|
|
|
82,204,902 |
|
Accumulated deficit |
|
|
(94,071,040 |
) |
|
|
(76,831,263 |
) |
Total Stockholders' Equity |
|
|
13,156,005 |
|
|
|
8,805,010 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity |
|
$ |
14,489,855 |
|
|
$ |
11,720,446 |
|
ATOSSA THERAPEUTICS,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
For the Year Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Research and development |
|
$ |
6,645,417 |
|
|
$ |
4,209,981 |
|
General and
administrative |
|
|
10,620,008 |
|
|
|
7,224,252 |
|
Total operating expenses |
|
|
17,265,425 |
|
|
|
11,434,233 |
|
Operating loss |
|
|
(17,265,425 |
) |
|
|
(11,434,233 |
) |
Other income |
|
|
25,648 |
|
|
|
29,299 |
|
Loss before income taxes |
|
|
(17,239,777 |
) |
|
|
(11,404,934 |
) |
Income taxes |
|
|
- |
|
|
|
- |
|
Net loss |
|
$ |
(17,239,777 |
) |
|
$ |
(11,404,934 |
) |
Deemed dividends attributable
to preferred stock |
|
|
- |
|
|
|
(11,479,308 |
) |
Net loss applicable to common
shareholders |
|
$ |
(17,239,777 |
) |
|
$ |
(22,884,242 |
) |
Loss per common share - basic
and diluted |
|
$ |
(2.03 |
) |
|
$ |
(5.50 |
) |
Weighted average shares
outstanding - basic and diluted |
|
|
8,496,964 |
|
|
|
4,157,746 |
|
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