LOS ANGELES, Feb. 6, 2017 /PRNewswire/ -- Stellar
Biotechnologies, Inc. (Nasdaq: SBOT), a leading manufacturer of a
key protein utilized in multiple immunotherapy development
pipelines targeting cancers, Alzheimer's and lupus, among other
diseases, today reported financial results for the three months
ended December 31, 2016 and provided
an update on its business.
Last month, the company announced that it had completed key
steps under a strategic initiative to expand production of its
Stellar KLH products, including the formation of a new subsidiary
to support Stellar's plan to establish a second aquaculture
facility. Stellar has also initiated plans to optimize KLH protein
manufacturing processes at its primary facility in Port Hueneme, California. The launch of the
optimization plan is intended to increase the scalability and
throughput capacity of existing manufacturing systems, which were
originally developed to provide clinical development stage
quantities of the company's KLH protein, which is utilized by drug
developers as a carrier molecule.
"We are preparing our infrastructure and processes to support
our customers as they reach exciting inflection points in their
clinical studies. Our goal is to be in a position to increase
production capacity in order to supply multiple commercial-scale
drugs currently under development, while continuing to manage
upfront costs," said Stellar President and CEO Frank Oakes. "Over the past two years, we have
increased our customer base due in part to the control,
traceability and scalability of our Stellar KLH products, and we
look forward to building on this track record with new
customers."
Stellar Chief Financial Officer Kathi
Niffenegger reported that expenditures for the first three
months of fiscal 2017 were in line with management's expectations.
"We continue to effectively manage our working capital. Our
spending in the first quarter reflected our ongoing priorities in
research and development as well as the optimization our
manufacturing and related processes," she said.
First Quarter Financial Results
Total revenues decreased by $0.35
million to $0.14 million for
the quarter ended December 31, 2016
compared to $0.49 million for the
same period last year due to a decrease in product sales volumes,
which are subject to variability associated with the rate of
development and progression of clinical studies of third-party
products that utilize Stellar KLH. Product sales were also impacted
by a higher customer concentration over the comparable period. In
December 2015, the company
successfully completed a collaboration agreement, and there has
been no contract services revenue since then.
Total expenses decreased by $0.24
million to $1.56 million for
the quarter ended December 31, 2016
compared to $1.80 million for the
same period last year.
Costs of sales and contract services decreased by $0.23 million to $.08
million for the quarter ended December 31, 2016 compared to $0.31 million for the same period last year
primarily due to decreased product sales.
Research and development expenses increased by $0.17 million to $0.46
million for the quarter ended December 31, 2016 compared to $0.29 million for the same period last year. The
increase was primarily due to research and development activities
intended to increase the scalability and throughput capacity of
existing manufacturing systems.
General and administrative expenses decreased by $0.18 million to $0.93
million for the quarter ended December 31, 2016 compared to $1.11 million for the same period last year
primarily due to reduced legal and professional fees and public
company expenses, which were higher in the comparable period due to
the company's Nasdaq uplisting in November
2015.
Other loss decreased by $0.24
million to an overall loss of $0.07
million for the quarter ended December 31, 2016 compared to an overall loss of
$0.32 million for the same period
last year primarily due to a noncash change in fair value of
warrant liability related to warrants with Canadian dollar exercise
prices as well as a decrease in foreign exchange loss.
For the quarter ended December 31,
2016, Stellar reported a net loss of $1.49 million, or $0.15 per basic share, compared to a net loss of
$1.63 million, or $0.19 per basic share, for the same period last
year.
At December 31, 2016, the company
had working capital of approximately $10
million. Cash, cash equivalents and short-term investments
totaled $9.88 million.
Stellar filed its Form 10-Q for the quarter ended December 31, 2016 with the Securities and
Exchange Commission on February 6,
2017. To view the company's filings, please visit the
website of the Securities and Exchange Commission at www.sec.gov.
To view the company's filings with the Canadian Securities
Administrators (CSA), including the Management Discussion and
Analysis and related consolidated financial statements, please
visit the CSA's SEDAR website at www.sedar.com.
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
important immune-stimulating protein used in wide-ranging
therapeutic and diagnostic markets. KLH is both an active
pharmaceutical ingredient (API) in many new immunotherapies
(targeting cancer, immune disorders, Alzheimer's and inflammatory
diseases) as well as a finished product for measuring immune
status. Stellar is unique in its proprietary methods, facilities,
and KLH technology. The company 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.
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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)
|
|
(Expressed in US
Dollars )
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December
31,
|
December
31,
|
|
|
|
|
2016
|
2015
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Product
sales
|
$
141,856
|
$
456,160
|
|
|
Contract services
revenue
|
-
|
32,000
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
141,856
|
488,160
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Costs of sales and
contract services
|
78,565
|
312,063
|
|
|
Costs of
aquaculture
|
84,835
|
84,913
|
|
|
Research and
development
|
460,865
|
288,849
|
|
|
General and
administrative
|
932,067
|
1,109,689
|
|
|
|
|
|
|
|
|
|
Total
Expenses
|
1,556,332
|
1,795,514
|
|
|
|
|
|
|
|
Loss from
Operations
|
(1,414,476)
|
(1,307,354)
|
|
|
|
|
|
|
|
Other Income
(Loss):
|
|
|
|
|
Foreign exchange gain
(loss)
|
(77,390)
|
(109,128)
|
|
|
Increase (decrease)
in fair value of warrant liability
|
-
|
(211,956)
|
|
|
Other
income
|
6,994
|
5,835
|
|
|
|
|
|
|
|
Income tax
expense
|
800
|
7,200
|
|
|
|
|
|
|
|
Net Loss
|
$
(1,485,672)
|
$(1,629,803)
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
Basic and
diluted
|
$
(0.15)
|
$
(0.19)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic and
diluted
|
10,136,258
|
8,373,323
|
|
Condensed Interim
Consolidated Balance Sheets
|
(Unaudited - Prepared
by Management)
|
(Expressed in US
Dollars )
|
|
|
|
|
|
|
|
|
December
31,
|
September
30,
|
|
|
|
2016
|
2016
|
|
|
|
|
|
Assets:
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$
9,879,007
|
$
11,405,698
|
|
Other current
assets
|
710,943
|
693,957
|
|
Noncurrent
assets
|
877,103
|
838,149
|
|
|
|
|
|
|
|
Total
Assets
|
$
11,467,053
|
$
12,937,804
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
602,123
|
$
623,644
|
|
Shareholders'
equity
|
10,864,930
|
12,314,160
|
|
|
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
$
11,467,053
|
$
12,937,804
|
Condensed Interim
Consolidated Statements of Cash Flows
|
(Unaudited - Prepared
by Management)
|
(Expressed in US
Dollars )
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
December
31,
|
|
|
|
2016
|
2015
|
|
|
|
|
|
Cash Flows Used In
Operating Activities:
|
|
|
Net loss
|
$
(1,485,672)
|
$(1,629,803)
|
|
Items not affecting
cash:
|
|
|
|
|
Depreciation and
amortization
|
45,470
|
32,386
|
|
|
Share-based
compensation
|
36,442
|
124,496
|
|
|
Foreign exchange
loss
|
77,390
|
109,128
|
|
|
Loss in fair value of
warrant liability
|
-
|
211,956
|
|
Changes in working
capital items
|
(38,664)
|
(22,708)
|
|
|
|
|
|
Net cash used in
operating activities
|
(1,365,034)
|
(1,174,545)
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Acquisition of
property, plant and equipment
|
(84,424)
|
(175,019)
|
|
Purchase of
short-term investments
|
(4,804)
|
(1,629)
|
|
|
|
|
|
Net cash used in
investing activities
|
(89,228)
|
(176,648)
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Proceeds from
exercise of warrants and options
|
-
|
1,368,260
|
|
|
|
|
|
Net cash provided
by financing activities
|
-
|
1,368,260
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(77,233)
|
(85,020)
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(1,531,495)
|
(67,953)
|
|
|
|
|
|
Cash and cash
equivalents - beginning of period
|
7,416,904
|
3,955,503
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
5,885,409
|
$
3,887,550
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/stellar-biotechnologies-reports-first-quarter-2017-financial-results-300402910.html
SOURCE Stellar Biotechnologies, Inc.