Qualigen Therapeutics, Inc. (Nasdaq: QLGN), a diversified life
sciences company focused on developing treatments for adult and
pediatric cancers with potential for Orphan Drug designation, while
also commercializing diagnostics, today announces its financial
results for the fiscal year ended December 31, 2021.
“Our financial results for 2021 are highlighted
by a 31% increase in revenue over 2020 in our diagnostics business,
which includes increased unit sales and license revenue from our
China partner who seeks to both expand distribution and advance the
technology of our flagship FastPack rapid testing products. As
previously reported, as of April 1, 2022, Qualigen will reassume
worldwide distribution and marketing control over sales of
FastPack, which we forecast will lead to even greater revenue and
per-unit profitability for this important part of Qualigen’s
diversified life sciences strategy. We will continue to focus on
expanding the reach of our rapid, accurate testing products, while
investing in new diagnostic technologies that can position Qualigen
ahead of future global health crises like we saw with Covid,”
commented Michael S. Poirier, Qualigen’s Chairman and CEO.
Mr. Poirier continued, “During the fourth
quarter of 2021 and early first quarter of 2022, we also advanced
our therapeutic pipeline through our acquisition of the license to
QN-302, a genomic quadruplex (G4)-selective transcription inhibitor
being developed as a potential treatment for pancreatic ductal
adenocarcinoma (PDAC), in addition to other tumors of high unmet
clinical need. The G4 binding concept is derived from over 30 years
in nucleic acid research, including that of G4s, which are higher
order DNA and RNA structures formed by sequences containing
quinine-rich repeats. Based on the strength of the technology
underlying QN-302 and our belief that we can advance QN-302 more
quickly into clinical trials than other products in our pipeline,
QN-302 will lead our therapeutics program. We look forward to
sharing more news on the program in the coming months.”
Fiscal Year 2021 Highlights
- Total revenue
of $5.65 million, an increase of approximately 31% compared to the
twelve months ended December 31, 2020
- Net product
sales of approximately $5.02 million, an increase of approximately
18% compared to the twelve months ended December 31, 2020
- Cash position
at December 31, 2021 of $17.5 million
Total revenues for Fiscal 2021 were $5.65
million compared to $4.31 million for the twelve months ended
December 31, 2020, an increase of approximately $1.34 million, or
31%. This was primarily due to approximately $0.7 million in
increased diagnostics product sales, as well the recognition of
approximately $0.6 million in license revenue from the Yi Xin
Technology Transfer Agreement.
Net product sales were primarily generated from
sales of diagnostic tests. Net product sales for Fiscal 2021 were
approximately $5.02 million, representing an increase of
approximately 18% over the twelve months ended December 31, 2020.
This improvement was primarily due to a recovery from the effects
of the COVID-19 pandemic.
Gross profit on product sales during Fiscal 2021
was approximately $0.7 million, an increase of approximately $0.1
million, or 9%, compared to the twelve months of the prior year,
primarily due to increased unit sales of diagnostic product, which
resulted in economies of scale.
Selling, general and administrative expenses
totaled approximately $12.3 million, and research and development
expenses were $11.7 million during Fiscal 2021. As of
December 31, 2021, the Company had approximately $17.5 million
of cash.
About Qualigen
Therapeutics, Inc.
Qualigen Therapeutics, Inc. is a diversified
life sciences company focused on developing treatments for adult
and pediatric cancers, as well as maintaining and expanding its
core FDA-cleared FastPack® System, which has been used successfully
in diagnostics for over 20 years. Our investigational QN-302
compound is a small molecule selective transcription inhibitor with
strong binding affinity to G4s prevalent in cancer cells; such
binding could, by stabilizing the G4s against “unwinding,” help
inhibit cancer cell proliferation. Our investigational QN-247
compound inhibits nucleolin, a key multi-functional regulatory
protein that is overexpressed in cancer cells; QN-247 may thereby
be able to inhibit the cells’ proliferation. QN-247 has shown
promise in preclinical studies for the treatment of acute myeloid
leukemia (AML). The investigational compounds within Qualigen’s
RAS-F family of RAS oncogene protein-protein interaction inhibitor
small molecules are believed to inhibit or block the binding of
mutated RAS genes’ proteins to their effector proteins, thereby
leaving the proteins from the mutated RAS unable to cause further
harm. In theory, such mechanism of action may be effective in the
treatment of about one quarter of all cancers, including certain
forms of pancreatic, colorectal, and lung cancers. In addition to
its oncology drug pipeline, Qualigen has an established diagnostics
business which manufactures and distributes proprietary and highly
accurate rapid blood testing systems to physician offices and small
hospitals for the management of prostate cancer and other diseases
and health conditions.
For more information about Qualigen Therapeutics, Inc., please
visit www.qualigeninc.com.
Forward-Looking Statements
This news release contains forward-looking
statements by the Company that involve risks and uncertainties and
reflect the Company's judgment as of the date of this release.
These statements include those related to the Company's prospects
and strategy for the development of therapeutic drug candidates.
Actual events or results may differ from the Company's
expectations. For example, there can be no assurance that the
Company will successfully develop any drugs (including QN-302,
QN-247 and RAS-F); that preclinical or clinical development of the
Company's drugs (including QN-302, QN-247 and RAS-F) will be
completed on any projected timeline or will be successful; that any
clinical trials will be approved to begin by or will proceed as
contemplated by any projected timeline, or at all; that any future
clinical trial data will be favorable or that such trials will
confirm any improvements over other products or lack negative
impacts; that any drugs will receive required regulatory approvals
(or Fast Track designation or Orphan Drug status) or that they will
be commercially successful; that patents will issue on the
Company's owned and in-licensed patent applications; that such
patents, if any, and the Company's currently owned and in-licensed
patents would prevent competition; that the Company will be able to
procure or earn sufficient working capital to complete the
development, testing and launch of the Company's prospective
therapeutic products (including QN-302, QN-247 and RAS-F); or that
the Company will be able to maintain or expand market demand and/or
market share for the Company's diagnostic products. The Company's
stock price could be harmed if any of the events or trends
contemplated by the forward-looking statements fails to occur or is
delayed or if any actual future event otherwise differs from
expectations. Additional information concerning these and other
risk factors affecting the Company's business can be found in the
Company's prior filings with the Securities and Exchange
Commission, including its most recent annual report on Form 10-K,
all of which are available at www.sec.gov. The Company disclaims
any intent or obligation to update these forward-looking statements
beyond the date of this news release, except as required by law.
This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.
Contact:
Jules AbrahamJQA Partners,
Inc.917-885-7378jabraham@jqapartners.com
QUALIGEN THERAPEUTICS,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
For the Year EndedDecember
31, |
|
For the Nine Months EndedDecember
31, |
|
|
|
2021 |
|
2020 |
|
REVENUES |
|
|
|
|
|
Net product sales |
|
$ |
5,021,721 |
|
$ |
2,849,561 |
|
License revenue |
|
|
632,004 |
|
|
— |
|
Total revenues |
|
|
5,653,725 |
|
|
2,849,561 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
Cost of product sales |
|
|
4,332,485 |
|
|
2,640,148 |
|
General and administrative |
|
|
11,724,964 |
|
|
7,105,337 |
|
Research and development |
|
|
11,716,718 |
|
|
3,316,099 |
|
Sales and marketing |
|
|
542,594 |
|
|
307,903 |
|
Impairment loss on construction in progress |
|
|
— |
|
|
1,376,000 |
|
Total expenses |
|
|
28,316,761 |
|
|
14,745,487 |
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
|
(22,663,036 |
) |
|
(11,895,926 |
) |
|
|
|
|
|
|
OTHER (INCOME)
EXPENSE, NET |
|
|
|
|
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
(4,723,187 |
) |
|
8,310,100 |
|
Gain on loan extinguishment |
|
|
— |
|
|
(451,345 |
) |
Interest (income) expense, net |
|
|
(42,693 |
) |
|
48,039 |
|
Other income, net |
|
|
(5,446 |
) |
|
(256,354 |
) |
Total other (income) expense, net |
|
|
(4,771,326 |
) |
|
7,650,440 |
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES |
|
|
(17,891,710 |
) |
|
(19,546,366 |
) |
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
|
5,427 |
|
|
— |
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(17,897,137 |
) |
$ |
(19,546,366 |
) |
|
|
|
|
|
|
Net loss per common share,
basic and diluted |
|
$ |
(0.61 |
) |
$ |
(1.12 |
) |
Weighted—average number of
shares outstanding, basic and diluted |
|
|
29,334,865 |
|
|
17,431,714 |
|
The accompanying notes are an integral part of
these consolidated financial statements.
QUALIGEN THERAPEUTICS,
INC.CONSOLIDATED BALANCE SHEETS
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash |
$ |
17,538,272 |
|
$ |
23,976,570 |
|
Accounts receivable, net |
|
822,351 |
|
|
615,757 |
|
Inventory, net |
|
1,055,878 |
|
|
953,458 |
|
Prepaid expenses and other current assets |
|
1,379,896 |
|
|
2,678,894 |
|
Total current assets |
|
20,796,397 |
|
|
28,224,679 |
|
Right-of-use assets |
|
1,645,568 |
|
|
430,795 |
|
Property and equipment,
net |
|
203,920 |
|
|
247,323 |
|
Equipment held for lease,
net |
|
296 |
|
|
17,947 |
|
Intangible assets, net |
|
171,190 |
|
|
187,694 |
|
Other assets |
|
18,334 |
|
|
18,334 |
|
Total
Assets |
$ |
22,835,705 |
|
$ |
29,126,772 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable |
$ |
886,224 |
|
$ |
500,768 |
|
Accrued expenses and other current liabilities |
|
1,793,901 |
|
|
746,738 |
|
Notes payable, current portion |
|
— |
|
|
131,766 |
|
Deferred revenue, current portion |
|
135,063 |
|
|
486,031 |
|
Operating lease liability, current portion |
|
134,091 |
|
|
254,739 |
|
Warrant liabilities |
|
1,686,200 |
|
|
8,310,100 |
|
Total current liabilities |
|
4,635,479 |
|
|
10,430,142 |
|
Notes payable, net of current
portion |
|
— |
|
|
6,973 |
|
Operating lease liability, net
of current portion |
|
1,542,564 |
|
|
236,826 |
|
Deferred revenue, net of
current portion |
|
92,928 |
|
|
158,271 |
|
Total liabilities |
|
6,270,970 |
|
|
10,832,212 |
|
Commitments and contingencies
(Note 9) |
|
|
|
|
Stockholders’
equity |
|
|
|
|
Series Alpha convertible
preferred stock, $0.001 par value; 7,000 shares authorized; 0 and
180 shares issued and outstanding as of December 31, 2021 and
December 31, 2020 |
|
— |
|
|
1 |
|
Common stock, $0.001 par
value; 225,000,000 shares authorized; 35,290,178 and 27,296,061
shares issued and outstanding as of December 31, 2021 and December
31, 2020, respectively |
|
35,290 |
|
|
27,296 |
|
Additional paid-in
capital |
|
101,274,073 |
|
|
85,114,755 |
|
Accumulated deficit |
|
(84,744,629 |
) |
|
(66,847,492 |
) |
Total stockholders' equity |
|
16,564,734 |
|
|
18,294,560 |
|
Total Liabilities
& Stockholders' Equity |
$ |
22,835,705 |
|
$ |
29,126,772 |
|
The accompanying notes are an integral part of
these consolidated financial statements.
The following table presents certain comparative
transition period financial information for the year ended
December 31, 2021 and the twelve months ended
December 31, 2020, respectively.
|
|
For the Twelve
MonthsEndedDecember 31,
2021 |
|
|
For the Twelve
MonthsEndedDecember 31, 2020
(unaudited) |
|
Revenues |
|
$ |
5,653,725 |
|
|
$ |
4,306,316 |
|
Gross profit on product
sales |
|
$ |
689,236 |
|
|
$ |
629,517 |
|
Net loss before income taxes |
|
$ |
(17,891,710 |
) |
|
$ |
(20,419,561 |
) |
Net loss |
|
$ |
(17,897,137 |
) |
|
$ |
(20,421,979 |
) |
Net loss per share – basic and
fully diluted |
|
$ |
(0.61 |
) |
|
$ |
(1.17 |
) |
Weighted average shares used in
computing basic and diluted net loss per share |
|
|
29,334,865 |
|
|
|
17,431,714 |
|
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