Sio Gene Therapies Announces Fiscal First Quarter 2022 Financial Results
August 11 2022 - 7:00AM
Sio Gene Therapies Inc. (NASDAQ: SIOX) today provided financial
results for its fiscal first quarter ended June 30, 2022.
“Our financial results show the beneficial effects on operating
expenses and cash resulting from the termination of the licenses to
our three clinical-stage programs and the significant headcount
reduction initiated in April. The winddown process of these
programs will soon be concluded but the process will continue as we
reduce our real estate footprint. We have been working closely with
the University of Massachusetts and the National Human Genome
Research Institute to provide for a smooth transition of the GM1
and GM2 programs. We are also continuing to actively pursue
strategic alternatives that could deploy our cash for better
returns to our stockholders,” said David Nassif, J.D., Chief
Executive Officer of Sio Gene Therapies.
Fiscal First Quarter Financial
Summary
For the fiscal first quarter ended June 30, 2022, research and
development expenses were $5.5 million, a decrease of $2.5 million
compared to the fiscal first quarter ended June 30, 2021. The
current period increase was primarily related to decreases in:
(i) |
program-specific costs relating to our prior AXO-Lenti-PD and
AXO-AAV-GM1 and AXO-AAV-GM2 programs, which decreased $0.5 million
as we began winding down clinical-stage programs subsequent to our
termination of the Oxford Agreement and the UMMS Agreement;
and |
|
|
(ii) |
unallocated internal costs, which decreased $2.0 million primarily
due to reductions in personnel-related and stock-based compensation
costs after announcing the discontinuation of clinical-stage
programs and initiating a significant reduction in workforce in
April 2022. Costs incurred during the quarter ended June 30, 2022
included $0.6 million of severance expense. |
General and administrative expenses for the fiscal first quarter
ended June 30, 2022 were $3.0 million, a decrease of $0.9 million
compared to the fiscal first quarter ended June 30, 2021, primarily
due to decreases of $0.6 million in stock-based compensation
expense and $0.5 million in personnel-related expenses, both
related to the workforce reduction that commenced in April 2022,
partially offset by an increase of $0.3 million in professional
fees primarily due to legal fees related to potential strategic
alternatives.
The net loss for the fiscal first quarter ended June 30, 2022
was $8.4 million, or $0.11 per share, compared to a net loss of
$11.9 million, or $0.16 per share, in the fiscal first quarter
ended June 30, 2021.
As of June 30, 2022, we had $54.8 million of cash and cash
equivalents. We hold no short-term or long-term debt on the balance
sheet.
Forward-Looking Statements
This press release contains forward-looking statements for the
purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995 and other federal securities laws.
The use of words such as "expect," "estimate," "may" and other
similar expressions are intended to identify forward-looking
statements. For example, all statements Sio makes regarding costs
associated with its operating activities, potential cost savings
and other benefits from cost reduction activities, potential
strategic alternatives, and funding requirements and/or cash burn
runway are forward-looking. All forward-looking statements are
based on estimates and assumptions by Sio’s management that,
although Sio believes to be reasonable, are inherently uncertain.
All forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those that Sio expected. Such risks and uncertainties include,
among others, the impact of the Covid-19 pandemic on Sio’s
operations; the actual funds required for our planned operating
activities, including wind-down activities for clinical programs
and exploration of strategic alternatives; costs, risks and timing
related to headcount reductions and capital conservation plans; the
ability to explore and execute upon strategic alternatives; the
ability to efficiently wind down clinical programs and conduct
required activities during wind down processes; and the outcome of
interactions with regulatory agencies. These statements are also
subject to a number of material risks and uncertainties that are
described in Sio’s most recent Annual Report on Form 10-Q filed
with the Securities and Exchange Commission on August 11, 2022, as
updated by its subsequent filings with the Securities and Exchange
Commission. Any forward-looking statement speaks only as of the
date on which it was made. Sio undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise, except as required
by law.
Contacts:
Media, Investors and Analysts
David W. NassifSio Gene Therapies Inc.Chief Executive Officer,
Chief Financial Officer and General
Counseldavid.nassif@siogtx.com
SIO GENE THERAPIES
INC.Condensed Consolidated Statements of
Operations(Unaudited, in thousands, except share and per
share amounts)
|
Three Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
Operating expenses: |
|
|
|
Research and development
expenses |
|
|
|
(includes stock-based compensation (benefit) expense of $(401) and
$432 for the three months ended June 30, 2022 and 2021,
respectively) |
$ |
5,542 |
|
|
$ |
8,058 |
|
General
and administrative expenses |
|
|
|
(includes stock-based compensation expense of $242 and $889 for the
three months ended June 30, 2022 and 2021, respectively) |
|
2,992 |
|
|
|
3,859 |
|
Total operating expenses |
|
8,534 |
|
|
|
11,917 |
|
Other
(income) expenses: |
|
|
|
Other income, net |
|
(124 |
) |
|
|
(19 |
) |
Loss
before income tax benefit |
|
(8,410 |
) |
|
|
(11,898 |
) |
Income
tax benefit |
|
(4 |
) |
|
|
(28 |
) |
Net
loss |
$ |
(8,406 |
) |
|
$ |
(11,870 |
) |
Net loss
per share of common stock — basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
Weighted-average shares of common stock outstanding — basic and
diluted |
|
73,765,292 |
|
|
|
72,861,870 |
|
SIO GENE THERAPIES
INC.Condensed Consolidated Balance
Sheets(Unaudited, in thousands, except share and per share
amounts)
|
June 30, 2022 |
|
March 31, 2022 |
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
54,771 |
|
|
$ |
63,729 |
|
Restricted cash |
|
1,184 |
|
|
|
1,184 |
|
Prepaid expenses and other current assets |
|
2,821 |
|
|
|
5,214 |
|
Income tax receivable |
|
355 |
|
|
|
1,609 |
|
Total current assets |
|
59,131 |
|
|
|
71,736 |
|
Operating lease right-of-use assets |
|
2,267 |
|
|
|
2,444 |
|
Property
and equipment, net |
|
1,084 |
|
|
|
900 |
|
Total assets |
$ |
62,482 |
|
|
$ |
75,080 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,240 |
|
|
$ |
3,984 |
|
Accrued expenses |
|
6,101 |
|
|
|
8,232 |
|
Current portion of operating lease liabilities |
|
808 |
|
|
|
786 |
|
Total current liabilities |
|
9,149 |
|
|
|
13,002 |
|
Operating lease liabilities, net of current portion |
|
1,554 |
|
|
|
1,730 |
|
Total liabilities |
|
10,703 |
|
|
|
14,732 |
|
Stockholders’ equity: |
|
|
|
Common stock, par value $0.00001 per share, 1,000,000,000 shares
authorized, 73,975,196 and 73,739,378 issued and outstanding at
June 30, 2022 and March 31, 2022, respectively |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
922,807 |
|
|
|
922,966 |
|
Accumulated deficit |
|
(871,362 |
) |
|
|
(862,956 |
) |
Accumulated other comprehensive income |
|
333 |
|
|
|
337 |
|
Total stockholders’ equity |
|
51,779 |
|
|
|
60,348 |
|
Total
liabilities and stockholders’ equity |
$ |
62,482 |
|
|
$ |
75,080 |
|
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