Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS) (OTCBB: AOLS)
- $1.4 million in revenue for third quarter
2012; $5.9 million in revenue for first nine months of fiscal year
2012
- Two options exercised by BARDA during
quarter
Aeolus Pharmaceuticals, Inc., a biotechnology company leveraging
significant government funding to develop a platform of novel
compounds in oncology and biodefense, announced today financial
results for the three months and nine month ended June 30,
2012.
The Company reported a net profit of approximately $3,064,000,
or $0.05 per share, which includes a non-cash adjustment of
approximately $3,666,000 related to decreases in the fair value of
warrants that are included as a component of other income (expense)
in the statement of operations, for the three months ended June 30,
2012. This compares to a net profit of $6,293,000, or $0.10 per
share, which includes a non-cash adjustment of approximately
$7,484,000 related to decreases in the fair value of warrants that
are included as a component of other income (expense) in the
statement of operations, for the three months ended June 30, 2011.
Revenue for the three months ended June 30, 2012 was approximately
$1,448,000, which compares to revenue of $1,912,000 for the three
months ended June 30, 2011. The revenue is from the collaboration
with BARDA announced on February 11, 2011.
"The Company continues to make significant progress under our
$118 million advanced research and development contract with
BARDA," stated John L. McManus, President and Chief Executive
Officer. "During the quarter we began the work on the two recently
exercised options, valued at $9.1 million, which include the bulk
of the studies needed for our emergency use authorization filing
next year."
As of June 30, 2012, the Company had approximately $207,000 in
cash and cash equivalents and 62,731,963 common shares outstanding.
The Company had accounts receivable of $2,365,000 and accounts
payable of $3,240,000 on June 30, 2012. Aeolus has filed today with
the SEC its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2012. Aeolus urges its investors to read this quarterly
filing as well as its amended Annual Report on Form 10-K/A, also
filed with the SEC, for further details concerning the Company. The
Quarterly Report on Form 10-Q and the amended Annual Report on Form
10-K/A are also available on the Company's website, at
http://www.aeoluspharma.com.
About AEOL 10150
AEOL 10150 is a broad-spectrum catalytic antioxidant
specifically designed to neutralize reactive oxygen and nitrogen
species. The neutralization of these species reduces oxidative
stress, inflammation, and subsequent tissue damage-signaling
cascades resulting from radiation exposure. AEOL 10150 could have a
profound beneficial impact on people who have been exposed, or are
about to be exposed, to high-doses of radiation in the treatment of
oncology.
AEOL 10150 has already performed well in preclinical and
non-clinical studies, was well-tolerated in two human clinical
trials, and has demonstrated statistically significant survival
efficacy in an acute radiation-induced lung injury model. The
Company believes it could have a profound beneficial impact on
people who have been exposed, or are about to be exposed, to
high-doses of radiation, whether from cancer therapy or a nuclear
event.
About Aeolus Pharmaceuticals
Aeolus Pharmaceuticals is developing a new class of catalytic
antioxidant compounds that protects healthy tissue from the
damaging effects of radiation. Its first compound, AEOL 10150, is
being developed for oncology indications, where it is used in
combination with radiation therapy. It is also being developed,
with funding by the US Government, as a medical countermeasure
against chemical and radiological weapons, where its initial target
indications are as a protective agent against the effects of acute
radiation syndrome and delayed effects of acute radiation exposure.
Aeolus' strategy is to leverage the substantial investment in
toxicology, manufacturing, and preclinical and clinical studies
made by US Government agencies in AEOL 10150, including the
contract with BARDA valued, with options, at up to $118.4 million,
to efficiently develop the compound for use in oncology.
Forward-Looking Statements
The statements in this press release that are not purely
statements of historical fact are forward-looking statements. Such
statements include, but are not limited to, those relating to
Aeolus' product candidates, as well as its proprietary technologies
and research programs, the Company's potential initiation of large
efficacy studies, the potential impact of AEOL 10150 and the BARDA
Contract. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause Aeolus'
actual results to be materially different from historical results
or from any results expressed or implied by such forward-looking
statements. Important factors that could cause results to differ
include risks associated with uncertainties of progress and timing
of clinical trials, scientific research and product development
activities, difficulties or delays in development, testing,
obtaining regulatory approval, the need to obtain funding for
pre-clinical and clinical trials and operations, the scope and
validity of intellectual property protection for Aeolus' product
candidates, proprietary technologies and their uses, and
competition from other biopharmaceutical companies, and whether
BARDA exercises one or more additional options under the BARDA
Contract. Certain of these factors and others are more fully
described in Aeolus' filings with the Securities and Exchange
Commission, including, but not limited to, Aeolus' amended Annual
Report on Form 10-K/A for the year ended September 30, 2011.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
AEOLUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30, September 30,
2012 2011
----------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 207 $ 518
Accounts receivable 2,365 1,677
Prepaids and other current assets 55 63
----------- -------------
Total current assets 2,627 2,258
Investment in CPEC LLC 32 32
----------- -------------
Total assets $ 2,659 $ 2,290
=========== =============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses $ 3,240 $ 2,144
----------- -------------
Total current liabilities 3,240 2,144
Warrant liability 12,710 23,405
----------- -------------
Total liabilities 15,950 25,549
Commitments and contingencies (Note H)
Stockholders' deficit:
Preferred stock, $.01 par value per share,
10,000,000 shares authorized:
Series A nonredeemable convertible preferred
stock, 1,250,000 shares authorized as of
June 30, 2012 and September 30, 2011,
respectively; no shares issued and
outstanding as of June 30, 2012 and
September 30, 2011, respectively -- --
Series B nonredeemable convertible preferred
stock, 1,600,000 and 600,000 shares
authorized as of June 30, 2012 and
September 30, 2011, respectively; 526,080
and 526,080 shares issued and outstanding
as of June 30, 2012 and September 30, 2011,
respectively 5 5
Common stock, $.01 par value per share,
200,000,000 shares authorized; 62,731,963 and
60,470,718 shares issued and outstanding as
of June 30, 2012 and September 30, 2011,
respectively 627 605
Additional paid-in capital 159,685 158,543
Accumulated deficit (173,608) (182,412)
----------- -------------
Total stockholders' deficit (13,291) (23,259)
----------- -------------
Total liabilities and stockholders' deficit $ 2,659 $ 2,290
=========== =============
AEOLUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share data)
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
Revenue:
Contract revenue $ 1,448 $ 1,912 $ 5,894 $ 2,697
Costs and expenses:
Research and development 1,226 1,948 5,223 3,045
General and administrative 824 1,155 2,545 2,546
--------- --------- --------- ---------
Total costs and expenses 2,050 3,103 7,768 5,591
--------- --------- --------- ---------
Loss from operations (602) (1,191) (1,874) (2,894)
Non-cash financing charges and
change in fair value of
warrants (Notes D, E and F) 3,666 7,484 10,678 5,028
Interest expense, net -- -- -- (21)
Other income, net -- -- -- 337
--------- --------- --------- ---------
Net income $ 3,064 $ 6,293 $ 8,804 $ 2,450
========= ========= ========= =========
Net income per weighted share
attributable to common
stockholders:
Basic $ 0.05 $ 0.10 $ 0.14 $ 0.04
========= ========= ========= =========
Diluted $ 0.05 $ 0.07 $ 0.12 $ 0.03
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 62,678 60,468 61,210 59,138
========= ========= ========= =========
Diluted 64,919 86,550 73,097 85,220
========= ========= ========= =========
AEOLUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
June 30,
--------------------
2012 2011
--------- ---------
Cash flows from operating activities:
Net income $ 8,804 $ 2,450
Adjustments to reconcile net income to net cash used
in operating activities:
Stock-based compensation 505 740
Change in fair value of warrants (10,695) (5,562)
Noncash interest and warrant costs 17 528
Change in assets and liabilities:
Accounts receivable (688) (466)
Prepaid and other assets 8 (30)
Accounts payable and accrued expenses 1,096 (402)
--------- ---------
Net cash used in operating activities (953) (2,742)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of common stock and warrants 660 987
Costs related to the issuance of common stock and
warrants (18) --
Proceeds from exercise of warrants -- 283
--------- ---------
Net cash provided by financing activities 642 1,270
--------- ---------
Net decrease in cash and cash equivalents (311) (1,472)
Cash and cash equivalents at beginning of period 518 2,355
--------- ---------
Cash and cash equivalents at end of period $ 207 $ 883
========= =========
Supplemental disclosure of non-cash financing
activities:
Preferred stock and warrants issued for payment of
note payable $ -- $ 453
========= =========
Preferred stock and warrants issued for payment of
interest on note payable $ -- $ 210
========= =========
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Contact: Russell Skibsted Sr. Vice President and Chief Financial
Officer Aeolus Pharmaceuticals, Inc. 1-(949) 481-9825
Aeolus Pharmaceuticals (CE) (USOTC:AOLS)
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