Cassava Sciences Reports Third Quarter 2020 Financial Results
November 09 2020 - 8:15AM
Cassava Sciences, Inc. (Nasdaq: SAVA), a clinical-stage
biotechnology company focused on Alzheimer’s disease, today
reported financial results for the third quarter ended September
30, 2020.
For the third quarter ended September 30, 2020,
net loss was $1.4 million, or $0.06 per share, compared to a net
loss of $0.7 million, or $0.04 per share, for the same period in
2019. Net cash used in operations was $4.2 million during the first
nine months of 2020. Net cash use in full-year 2020 is still
expected to be approximately $5.0 million. The Company’s cash and
cash equivalents were $24.1 million as of September 30, 2020, with
no debt.
Financial Highlights
for Third Quarter
2020
- At September 30, 2020, cash and
cash equivalents were $24.1 million, compared to $23.1 million at
December 31, 2019, with no debt.
- Cash balance included $4.6 million
in proceeds from exercise of warrants in the first nine months of
2020. Approximately 0.8 million warrants remain outstanding, each
with an exercise price of $1.25 per share. All warrants expire
February 2021.
- Net cash used in operations during
the nine months ended September 30, 2020 was $4.2 million, net of
reimbursements received from National Institutes of Health (NIH)
research grant awards.
- NIH research grant award
reimbursements of $1.0 million were received and recorded as a
reduction in research and development (R&D) expenses in the
third quarter of 2020. This compared to $1.5 million of NIH
research grant award reimbursements received for the same period in
2019.
- R&D expenses were $0.4 million
compared to a negative $0.1 million for the same period in 2019.
The increase was due primarily to lower NIH research grant award
reimbursements compared to the prior year.
- General and administrative
(G&A) expenses were $1.0 million compared to $0.8 million for
the same period in 2019. The increase was due primarily to higher
insurance expenses compared to the prior year.
About Cassava Sciences,
Inc.Cassava Sciences’ mission is to discover and develop
innovations for chronic, neurodegenerative conditions. Over the
past 10 years, Cassava Sciences has combined state-of-the-art
technology with new insights in neurobiology to develop novel
solutions for Alzheimer’s disease. For more information, please
visit: https://www.CassavaSciences.com
For More Information
Contact:Eric Schoen, Chief Financial OfficerCassava
Sciences, Inc.eschoen@CassavaSciences.com(512) 501-2450
Cautionary Note Regarding
Forward-Looking Statements: This press release contains
“forward-looking statements” for purposes of the Private Securities
Litigation Reform Act of 1995 (the Act). Cassava Sciences claims
the protection of the Safe Harbor for forward-looking statements
contained in the Act. All statements other than statements of
historical fact contained in this press release including, but not
limited to, expected cash use in future periods are
forward-looking statements. Such statements are based largely
on the Company’s current expectations and projections about future
events. Such statements speak only as of the date of this press
release and are subject to a number of risks, uncertainties and
assumptions, including, but not limited to, those risks relating to
the ability to conduct or complete clinical studies on expected
timelines, to demonstrate the specificity, safety, efficacy or
potential health benefits of our product candidates, the severity
and duration of health care precautions given the COVID-19
pandemic, any unanticipated impacts of the pandemic on our business
operations, and including those described in the section entitled
“Risk Factors” in Cassava Sciences’ Annual Report on Form 10-K for
the year ended December 31, 2019 and future reports to be filed
with the SEC. In light of these risks, uncertainties and
assumptions, the forward-looking statements discussed in this press
release are inherently uncertain and may not occur, and actual
results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
Accordingly, you should not rely upon forward-looking statements as
predictions of future events. Except as required by law, the
Company disclaims any intention or responsibility for updating or
revising any forward-looking statements contained in this press
release. For further information regarding these and other
risks related to our business, investors should consult our filings
with the SEC, which are available on the SEC's website at
www.sec.gov.
– Financial Tables Follow –
CASSAVA SCIENCES,
INC. |
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CONDENSED STATEMENTS
OF OPERATIONS |
|
|
|
|
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|
|
(unaudited, in
thousands, except per share amounts) |
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Three months ended
September 30, |
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Nine months ended
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net of grant reimbursement |
$ |
399 |
|
|
$ |
(52 |
) |
|
$ |
1,534 |
|
|
$ |
830 |
|
|
General and administrative |
|
1,038 |
|
|
|
831 |
|
|
|
2,634 |
|
|
|
2,553 |
|
|
Gain on sale of property and equipment |
|
— |
|
|
|
— |
|
|
|
(346 |
) |
|
|
— |
|
|
Total operating expenses |
|
1,437 |
|
|
|
779 |
|
|
|
3,822 |
|
|
|
3,383 |
|
|
Operating
loss |
|
(1,437 |
) |
|
|
(779 |
) |
|
|
(3,822 |
) |
|
|
(3,383 |
) |
|
Interest
income |
|
7 |
|
|
|
82 |
|
|
|
106 |
|
|
|
268 |
|
|
Net
loss |
$ |
(1,430 |
) |
|
$ |
(697 |
) |
|
$ |
(3,716 |
) |
|
$ |
(3,115 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share, basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing net loss per share, basic
and diluted |
|
24,972 |
|
|
|
17,162 |
|
|
|
24,745 |
|
|
|
17,162 |
|
|
|
|
|
|
|
|
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|
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|
CONDENSED BALANCE
SHEETS |
|
(unaudited, in
thousands) |
|
|
|
|
|
|
|
|
September 30,2020 |
|
December 31,2019 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
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Current
assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
$ |
24,074 |
|
|
$ |
23,081 |
|
|
Other current assets |
|
|
|
|
|
|
|
997 |
|
|
|
268 |
|
|
Total current assets |
|
|
|
|
|
|
|
25,071 |
|
|
|
23,349 |
|
|
Property and
equipment, net |
|
|
|
|
|
|
|
12 |
|
|
|
47 |
|
|
Operating
lease right-of-use assets |
|
|
|
|
|
|
|
316 |
|
|
|
90 |
|
|
Total assets |
|
|
|
|
|
|
$ |
25,399 |
|
|
$ |
23,486 |
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
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Accounts payable |
|
|
|
|
|
|
$ |
465 |
|
|
$ |
453 |
|
|
Accrued development expense |
|
|
|
|
|
|
|
558 |
|
|
|
777 |
|
|
Accrued compensation and benefits |
|
|
|
|
|
|
|
80 |
|
|
|
58 |
|
|
Operating lease liabilities, current |
|
|
|
|
|
|
|
58 |
|
|
|
90 |
|
|
Other current liabilities |
|
|
|
|
|
|
|
7 |
|
|
|
9 |
|
|
Total current liabilities |
|
|
|
|
|
|
|
1,168 |
|
|
|
1,387 |
|
|
Operating lease liabilities, non-current |
|
|
|
|
|
|
|
258 |
|
|
|
— |
|
|
Total liabilities |
|
|
|
|
|
|
|
1,426 |
|
|
|
1,387 |
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock and additional paid-in-capital |
|
|
|
|
|
|
|
196,276 |
|
|
|
190,686 |
|
|
Accumulated deficit |
|
|
|
|
|
|
|
(172,303 |
) |
|
|
(168,587 |
) |
|
Total stockholders' equity |
|
|
|
|
|
|
|
23,973 |
|
|
|
22,099 |
|
|
Total liabilities and stockholders' equity |
|
|
|
|
|
|
$ |
25,399 |
|
|
$ |
23,486 |
|
|
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