Aptorum Group Ltd. (NASDAQ: APM), a preclinical stage
pharmaceutical company developing and commercializing a broad
portfolio of projects under development of therapeutic and
diagnostic technologies to tackle unmet medical needs, today
provided a business update and announced financial results for the
fiscal year ended December 31, 2018.
Recent Business Updates
- Successfully completed an initial
public offering (“IPO”) on the Nasdaq Global Market of 761,419
Class A ordinary shares at a public offering price of $15.8 per
shares
- Private placement of convertible bonds
in April 2018 of $15 million of which $1.5 million was converted
into Class A ordinary shares upon IPO in December 2018
- Full year 2018 research and development
expenses of $3.1 million, increased $0.5 million compared to the
period March 1, 2017 to December 31, 2017
“Last year was monumental for Aptorum Group. On the business
front, we completed our IPO in the fourth quarter of 2018,” said
Ian Huen, Founder and Chief Executive Officer of Aptorum Group. “In
2019, we look forward to continued advancement of our projects
under development, and expect to advance our first lead project
into IND-enabling studies.”
2018 Fiscal Year Financial Results
Highlights
Aptorum Group reported a net loss of $15.1 million in 2018, as
compared to $2.6 million for the period March 1, 2017 through
December 31, 2017. The increase in net loss in 2018 was driven by
the decrease in gain on investment in marketable securities due to
the a one-off investment disposed in last period, increased in
general and administration fees due to the increased headcount in
the Group to support the business development, and increased in net
interest expenses due to the convertible debts issued in 2018.
Research and development expenses were $3.1 million in 2018 as
compared to $2.6 million for the period March 1, 2017 through
December 31, 2017. The increase in research and development
expenses in 2018 was primarily due to the expansion of research and
development team to support growing business and projects.
General and administrative fees were $4.9 million in 2018 as
compared to $1.5 million for the period March 1, 2017 through
December 31, 2017. The increase in general and administrative
expenses 2018 was mainly driven by increased headcount in the Group
to support the business development.
Legal and professional fees were $1.8 million in 2018 as
compared to $1.4 million for the period March 1, 2017 through
December 31, 2017. The increase in legal and professional fees was
mainly due to the preparation of IPO and business expansion.
Aptorum Group ended the 2018 with $26.1 million in cash and
restricted cash as compared to $16.7 million as of December 31,
2017. The increase in cash and restricted cash was mainly the
result of the $15 million of convertible bonds issued during the
year.
About Aptorum Group
We are a pharmaceutical company currently in the preclinical
stage, dedicated to developing and commercializing a broad range of
therapeutic and diagnostic technologies to tackle unmet medical
needs. We are pursuing therapeutic and diagnostic projects in
neurology, infectious diseases, gastroenterology, oncology and
other disease areas. We also have projects focused on
non-therapeutic area such as surgical robotics as well as the
operations of our medical clinic in Hong Kong, Talem Medical, with
the initial focus on treatment of chronic diseases resulting from
modern sedentary lifestyles and aging population.
For more information about the Company, please visit
www.aptorumgroup.com.
Forward-Looking
Statements
This press release includes statements concerning Aptorum Group
Limited and its future expectations, plans and prospects that
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. For this purpose,
any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as “may,” “should,” “expects,” “plans,” “anticipates,”
“could,” “intends,” “target,” “projects,” “contemplates,”
“believes,” “estimates,” “predicts,” “potential,” or “continue,” or
the negative of these terms or other similar expressions. Aptorum
has based these forward-looking statements largely on its current
expectations and projections about future events and trends that it
believes may affect its business, financial condition and results
of operations. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions including, without limitation,
risks related to its announced management and organizational
changes, the continued service and availability of key personnel,
its ability to expand its product assortments by offering
additional products for additional consumer segments, the company’s
anticipated growth strategies, anticipated trends and challenges in
its business, and its expectations regarding, and the stability of,
its supply chain, and the risks more fully described in Aptorum’s
Prospectus (File No. 333-227198) filed with the U.S. Securities and
Exchange Commission (the “SEC”) on December 4, 2018 and other
filings that Aptorum may make with the SEC in the future. Aptorum
assumes no obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.
APTORUM GROUP LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(SUCCESSOR BASIS)
For Year Ended December 31, 2018 and
the Period March 1, 2017 through December 31, 2017
(Stated in U.S. Dollars)
Year Ended March 1,2017through
December 31,2018 December 31, 2017
Revenue Healthcare service income $ 383,450 $ -
Operating expenses Cost of healthcare service (318,011 ) -
Research and development expenses (3,101,432 ) (2,560,323 ) General
and administrative fees (4,919,626 ) (1,480,093 ) Legal and
professional fees (1,811,770 ) (1,395,490 ) Other operating
expenses (560,709 ) (257,177 ) Total expenses
(10,711,548 ) (5,693,083 )
Other (loss) income
Gain on investments in marketable securities, net 501,522 3,912,500
Loss on investments in derivatives, net (974,444 ) (827,501 )
Changes in fair value of warrant liabilities 124,726 - Interest
(expense) income, net (4,458,191 ) 44,269 Dividend income -
2,308 Total other (loss) income, net (4,806,387 )
3,131,576
Net loss (15,134,485 )
(2,561,507 ) Less: net loss attributable to non-controlling
interests (302,762 ) (14,045 )
Net loss
attributable to Aptorum Group Limited $ (14,831,723 ) $
(2,547,462 ) Net loss per share – basic and diluted $ (0.53
) $ (0.09 ) Weighted-average shares outstanding – basic and diluted
27,909,788 26,963,435
Net loss $
(15,134,485 ) $ (2,561,507 )
Other Comprehensive loss
Unrealized loss on investments in available-for-sale securities
(1,122,251 ) (367,782 ) Exchange differences on translation of
foreign operations 5,345 - Other Comprehensive loss
(1,116,906 ) (367,782 )
Comprehensive
loss (16,251,391 ) (2,929,289 ) Less: comprehensive loss
attributable to non-controlling interests (302,762 )
(14,045 )
Comprehensive loss attributable to the
shareholders of Aptorum Group Limited (15,948,629 )
(2,915,244 )
APTORUM GROUP LIMITED
CONSOLIDATED BALANCE SHEETS (SUCCESSOR
BASIS)
December 31, 2018 and 2017
(Stated in U.S. Dollars)
December 31,
2018
December 31,
2017
ASSETS Current assets: Cash $ 12,006,624 $ 16,245,807
Restricted cash 14,100,614 480,000 Accounts receivable 2,827 -
Inventories 30,642 - Marketable securities, at fair value 1,014,338
1,972,648 Investments in derivatives 115,721 1,095,122 Amounts due
from related parties 169,051 - Due from brokers 818,968 179,492
Other receivables and prepayments 464,156 310,330
Total current assets 28,722,941 20,283,399
Property, plant and equipment, net 4,260,602 346,587 Non-marketable
investments 7,094,712 7,394,713 Intangible assets, net 1,409,540
1,472,707 Amounts due from related parties 50,000 304,820 Long-term
deposits 3,417,178 1,757,756 Other non-current asset 119,667
-
Total Assets $ 45,074,640 $ 31,559,982
LIABILITIES AND EQUITY LIABILITIES Current
liabilities: Amounts due to related parties $ 33,417 $ 197,386
Accounts payable and accrued expenses 1,247,147 653,348 Finance
lease payable, current portion 43,877 - Warrant liabilities 753,118
- Convertible debts 10,107,306 480,000
Total
current liabilities 12,184,865 1,330,734 Finance
lease payable, non-current portion 143,873 -
Total
Liabilities $ 12,328,738 $ 1,330,734
Commitments and
contingencies - -
EQUITY
Class A Ordinary Shares ($1.00 par value;
60,000,000 shares authorized, 6,537,269 shares issued and
outstanding at December 31, 2018 and 5,426,381shares issued
and outstanding at December 31, 2017, respectively)
$ 6,537,269 $ 5,426,381
Class B Ordinary Shares ($1.00 par value;
40,000,000 shares authorized, 22,437,754 shares issued and
outstanding as at December 31, 2018 and 2017)
22,437,754 22,437,754 Additional paid-in capital 23,003,285
5,294,402 Accumulated other comprehensive loss (1,484,688 )
(367,782 ) Accumulated deficit (17,379,185 )
(2,547,462 )
Total equity attributable to the shareholders of
Aptorum Group Limited 33,114,435 30,243,293 Non-controlling
interests (368,533 ) (14,045 )
Total equity
32,745,902 30,229,248
Total Liabilities and
Equity $ 45,074,640 $ 31,559,982
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Investor relations:Tel: +852 2117 6611Email:
investor.relations@aptorumgroup.comMedia:Tel: + 852 2117 6611Email:
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