MENLO PARK,
Calif., April 26, 2018
/PRNewswire/ -- BioPharmX Corporation (NYSE American: BPMX), a
specialty pharmaceutical company developing products for the
dermatology market, today reports financial results for the quarter
and year ended January 31,
2018.
"The past year has been filled with numerous milestones
and accomplishments for BioPharmX," said President Anja Krammer. "We achieved significant clinical
milestones, including a successful Phase 2b trial for BPX-01 for acne and the launch of
the BPX-04 rosacea program. We were granted three patents from the
United States Patent and Trademark Office with numerous patents
pending, which demonstrates a strong product pipeline."
Fourth Quarter Financial
Results
For the fourth quarter
ended January 31, 2018, total
operating expenses were $3.6 million, compared with total
operating expenses
of $4.3 million in the
prior fiscal year's fourth quarter.
Net loss for the fourth quarter of 2018 was $3.8
million, or $0.03 per share,
compared with a net loss of $5.2 million, or $0.09 per
share, during the prior fiscal year's fourth
quarter.
Excluding stock-based compensation expense, the impact of
the change in the fair value of the warrant liability, and
amortization of purchased intangible assets, non-GAAP net loss for
the fourth quarter of 2018 was $3.4
million,
or $0.03 per share. During the
fourth quarter of the prior fiscal year, the comparable non-GAAP
net loss was $4.4 million,
or $0.08 per share.
Full Year Financial Results
Total
operating expenses for the fiscal year were $16.7 million,
compared
with $18.0 million in the
prior fiscal year. The decrease resulted primarily from lower
expenditures for the company's clinical trial activities related to
BPX-01.
Net loss for the fiscal year was $16.6 million,
or $0.19 per share, compared
with a net loss of $18.5 million, or $0.52 per
share, during the prior fiscal year.
Excluding stock-based compensation expense, a charge
related to the modification of certain warrants, the impact of the
change in the fair value of the warrant liability, and amortization
of purchased intangible assets, non-GAAP net loss for the year was
$15.0 million, or $0.17 per share. In the prior fiscal year, the
comparable non-GAAP net loss was $17.1
million, or $0.48 per
share.
Cash and cash equivalents as of January 31, 2018, were $7.6 million. Additionally, BioPharmX
reported that after the end of the year and through the date of
this press release, the company received $7.0 million in cash through warrant exercises
subsequent to January 31,
2018.
BioPharmX also disclosed in its Annual Report on Form 10-K
for the fiscal year ended January 31, 2018, filed April
26, 2018 with the Securities and Exchange Commission, that its
audited financial statements contained an audit opinion from its
independent registered public accounting firm that included a going
concern paragraph. See further discussion in footnote 2 to
BioPharmX's consolidated financial statements included in its
Annual Report on Form 10-K. This announcement is made pursuant to
NYSE American Company Guide Section 610(b), which requires separate
public announcement of the receipt of an audit opinion containing a
going concern paragraph.
About
BioPharmX® Corporation
BioPharmX
Corporation (NYSE American: BPMX) is a Silicon Valley-based
specialty pharmaceutical company, which seeks to provide products
through proprietary platform technologies for prescription,
over-the-counter (OTC), and supplement applications in the health
and wellness markets, including dermatology and women's health. To
learn more about BioPharmX,
visit www.BioPharmX.com.
BPX-01 is BioPharmX's investigational product for the
treatment of acne. It has successfully completed its
Phase 2b studies. BPX-04 is BioPharmX's investigational
product for the treatment of rosacea, for which the Phase 2 program
has commenced. Both products share a novel topical delivery system
to carry a minocycline gel to the target area in the
skin.
Use of Non-GAAP Measures
BioPharmX
Corporation has supplemented its reported GAAP financial
information with non-GAAP measures, non-GAAP net loss, and non-GAAP
net loss per share, that do not include stock-based compensation
expense, the impact of changes in the fair value of the warrant
liability, expense related to the modification of warrants, and the
amortization of purchased intangible assets. The presentation of
this additional information is not meant to be considered in
isolation or as a substitute for results prepared in accordance
with GAAP. Management uses the non-GAAP information internally to
evaluate its ongoing business, operational performance and cash
requirements and believes these non-GAAP measures are useful to
investors as they provide the same basis for evaluating BioPharmX
Corporation's performance as applied by management.
BioPharmX Corporation has provided a reconciliation of
each non-GAAP financial measure to the most directly comparable
GAAP financial measure. These non-GAAP measures may be different
from non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. BioPharmX
Corporation believes that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with its
results of operations as determined in accordance with GAAP and
that these measures should be considered in addition to, not as a
substitute for or in isolation from, measures prepared in
accordance with GAAP. BioPharmX Corporation encourages investors
and others to review the company's financial information in its
entirety and not rely on a single financial measure.
Stock-based compensation expenses represent non-cash
charges related to equity awards granted by BioPharmX Corporation.
The change in fair value of the warrant liability results from the
periodic revaluing of the warrant liability. In the third quarter
of fiscal year 2018, BioPharmX Corporation amended certain warrants
resulting in a one-time charge. This amount is excluded from its
non-GAAP net loss and non-GAAP net loss per share because it is not
reflective of ongoing operating results in the period incurred.
Although these are recurring charges to BioPharmX Corporation's
operations, management believes the measurement of these amounts
can vary considerably from period to period and depend
substantially on factors that are not a direct consequence of
operating performance that is within management's control. Thus,
management believes that excluding these charges from non-GAAP net
loss and non-GAAP net loss per share facilitates comparisons of
BioPharmX Corporation's operational performance in different
periods, as well as with similarly determined non-GAAP financial
measures of comparable companies.
Amortization of purchased intangible assets results from
the purchase of a license related to molecular iodine technology.
This amount is excluded from non-GAAP net loss and non-GAAP net
loss per share because it is not reflective of ongoing operating
results in the period incurred.
Forward-Looking Statements
The
information in this press release contains forward-looking
statements and information 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, which are subject to
the "safe harbor" created by those sections. This press release
contains forward-looking statements about the company's
expectations, plans, intentions, and strategies, including, but not
limited to, statements regarding the safety and medical effects of
BPX-01 and BPX-04, the effect BPX-01 and BPX-04 may have on the
treatment of acne and rosacea, the commencement and results of
future trials of BPX-01 and BPX-04 and the size of such trials,
continued and consistent results in future tests of BPX-01 and
BPX-04 and absence of side effects of future use of BPX-01 and
BPX-04. These forward-looking statements may be identified by words
such as "plan," "expect," "anticipate," "believe," "should," "may,"
"will" or similar expressions that are intended to identify such
forward-looking statements.
These forward-looking statements involve risks and
uncertainties, as well as assumptions, which, if they do not fully
materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties include those described in
the company's filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year
ended January 31, 2018. Given these risks and uncertainties,
you are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this news release are made only as of the date hereof, and the
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities law.
BioPharmX is a registered trademark of BioPharmX,
Inc.
Caution: BPX-01 and BPX-04 are new drugs limited by U.S.
law to investigational use.
-- TABLES TO FOLLOW --
BIOPHARMX
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
January
31,
|
|
January
31,
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues,
net
|
|
$
19
|
|
$
15
|
|
$
73
|
|
$
100
|
Cost of goods
sold
|
|
222
|
|
451
|
|
250
|
|
516
|
Gross
margin
|
|
|
(203)
|
|
(436)
|
|
(177)
|
|
(416)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,675
|
|
2,525
|
|
9,140
|
|
10,158
|
|
Sales and
marketing
|
|
486
|
|
667
|
|
2,415
|
|
3,198
|
|
General and
administrative
|
|
1,473
|
|
1,138
|
|
5,144
|
|
4,654
|
Total operating
expenses
|
|
3,634
|
|
4,330
|
|
16,699
|
|
18,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(3,837)
|
|
(4,766)
|
|
(16,876)
|
|
(18,426)
|
|
Change in fair value
of warrant liability
|
|
34
|
|
(171)
|
|
364
|
|
163
|
|
Other income
(expense), net
|
|
16
|
|
(96)
|
|
(126)
|
|
(141)
|
|
Loss before income
taxes
|
|
(3,787)
|
|
(5,033)
|
|
(16,638)
|
|
(18,404)
|
|
Provision for income
taxes
|
|
1
|
|
-
|
|
2
|
|
2
|
Net and
comprehensive loss
|
|
(3,788)
|
|
(5,033)
|
|
(16,640)
|
|
(18,406)
|
Deemed dividend on
Series A convertible preferred stock
|
|
-
|
|
(126)
|
|
-
|
|
(126)
|
Net loss available
to common stockholders
|
|
$
(3,788)
|
|
$
(5,159)
|
|
$
(16,640)
|
|
$
(18,532)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
($0.03)
|
|
($0.09)
|
|
($0.19)
|
|
($0.52)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
121,281
|
|
56,782
|
|
85,900
|
|
35,806
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
|
|
2018
|
|
2017
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
7,576
|
|
$
6,501
|
|
|
Accounts receivable,
net
|
7
|
|
4
|
|
|
Inventories
|
10
|
|
38
|
|
|
Prepaid expenses and
other current assets
|
388
|
|
284
|
|
|
|
Total current
assets
|
7,981
|
|
6,827
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
109
|
|
120
|
|
Other
assets
|
-
|
|
154
|
|
|
|
Total
assets
|
$
8,090
|
|
$
7,101
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
1,376
|
|
$
2,551
|
|
|
Accrued expenses and
other current liabilities
|
1,603
|
|
1,176
|
|
|
|
Total current
liabilities
|
2,979
|
|
3,727
|
|
|
|
|
|
|
|
|
Warrant
liability
|
39
|
|
403
|
|
|
|
Total
liabilities
|
3,018
|
|
4,130
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
5,072
|
|
2,971
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
8,090
|
|
$
7,101
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP Net Loss to Non-GAAP Net Loss Available to Common
Stockholders
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
January
31,
|
|
January
31,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(3,788)
|
|
$
(5,159)
|
|
$ (16,640)
|
|
$ (18,532)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant liability
|
(34)
|
|
171
|
|
(364)
|
|
(163)
|
|
|
Expense related to
modification of warrants
|
-
|
|
-
|
|
151
|
|
-
|
|
|
Amortization of
purchased intangible assets
|
-
|
|
97
|
|
-
|
|
119
|
|
|
Stock-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
|
- Research and
development
|
148
|
|
106
|
|
545
|
|
398
|
|
|
|
- Sales and
marketing
|
104
|
|
99
|
|
393
|
|
346
|
|
|
|
- General and
administrative
|
219
|
|
242
|
|
949
|
|
747
|
|
|
|
- Total
stock-based compensation expense
|
471
|
|
447
|
|
1,887
|
|
1,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reconciling
items
|
437
|
|
715
|
|
1,674
|
|
1,447
|
|
Non-GAAP net loss
available to common stockholders
|
$
(3,351)
|
|
$
(4,444)
|
|
$ (14,966)
|
|
$ (17,085)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(0.03)
|
|
$
(0.09)
|
|
$
(0.19)
|
|
$
(0.52)
|
|
|
Reconciling
items
|
|
|
|
|
|
|
|
|
|
|
- Change in
fair value of warrant liability
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
- Expense
related to modification of warrants
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
- Amortization
of purchased intangible assets
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
- Stock-based
compensation expense
|
-
|
|
0.01
|
|
0.02
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$
(0.03)
|
|
$
(0.08)
|
|
$
(0.17)
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
121,281
|
|
56,782
|
|
85,900
|
|
35,806
|
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SOURCE BioPharmX Corporation