Full Press Release Details
Announces Second Quarter 2018 Financial Results and Business Highlights
Announced Securities Purchase Agreement For
Up To $20 Million with Aspire Capital Fund, LLC
NEW YORK and LONDON, September 27, 2018 - Akari Therapeutics,
Plc (NASDAQ:AKTX), a biopharmaceutical company focused on the development and commercialization of innovative therapeutics to treat
orphan autoimmune and inflammatory diseases where complement and or leukotriene systems are implicated, today announced its financial
results for the second quarter ended June 30, 2018.
"We made several important advancements
since the beginning of 2018 and now have a diversified clinical portfolio with four ongoing disease programs and up to a $20 million
funding facility provided by Aspire Capital Fund, LLC," commented Clive Richardson, Interim Chief Executive Officer of Akari
Clinical development highlights and upcoming milestones
Second Quarter 2018 Financial
Results and Business Highlights
About Akari Therapeutics
Akari is a biopharmaceutical company focused on developing inhibitors
of acute and chronic inflammation, specifically for the treatment of rare and orphan diseases, in particular those where the complement
system or leukotrienes or both complement and leukotrienes together play a primary role in disease progression. Akari's lead drug
candidate Coversin is a C5 complement inhibitor currently being evaluated in paroxysmal nocturnal hemoglobinuria (PNH) and
atypical hemolytic uremic syndrome (aHUS). In addition to its C5 inhibitory activity, Coversin independently and specifically inhibits
leukotriene B4 (LTB4) activity. Akari is currently evaluating Coversin in two conditions, the skin and eye diseases bullous pemphigoid
and atopic keratoconjunctivitis, where the dual action of Coversin on both C5 and LTB4 may be beneficial. Akari is also developing
other tick derived proteins, including long acting versions.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements
reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information
currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies
and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the
plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from
those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control.
Such risks and uncertainties for our company include, but are not limited to: needs for additional capital to fund our operations,
our ability to continue as a going concern; uncertainties of cash flows and inability to meet working capital needs; an inability
or delay in obtaining required regulatory approvals for Coversin and any other product candidates, which may result in unexpected
cost expenditures; our ability to obtain orphan drug designation in additional indications; risks inherent in drug development
in general; uncertainties in obtaining successful clinical results for Coversin and any other product candidates and unexpected
costs that may result therefrom; difficulties enrolling patients in our clinical trials; failure to realize any value of Coversin
and any other product candidates developed and being developed in light of inherent risks and difficulties involved in successfully
bringing product candidates to market; inability to develop new product candidates and support existing product candidates; the
approval by the FDA and EMA and any other similar foreign regulatory authorities of other competing or superior products brought
to market; risks resulting from unforeseen side effects; risk that the market for Coversin may not be as large as expected; risks
associate with the departure of our former Chief Executive Officers and other executive officers; risks related to material weaknesses
in our internal controls over financial reporting and risks relating to the ineffectiveness of our disclosure controls and procedures;
risks associated with the putative shareholder class action and SEC investigation; inability to obtain, maintain and enforce patents
and other intellectual property rights or the unexpected costs associated with such enforcement or litigation; inability to obtain
and maintain commercial manufacturing arrangements with third party manufacturers or establish commercial scale manufacturing capabilities;
the inability to timely source adequate supply of our active pharmaceutical ingredients from third party manufacturers on whom
the company depends; unexpected cost increases and pricing pressures and risks and other risk factors detailed in our public filings
with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 20-F filed with the SEC
on July 18, 2018. Except as otherwise noted, these forward-looking statements speak only as of the date of this press release and
we undertake no obligation to update or revise any of these statements to reflect events or circumstances occurring after this
press release. We caution investors not to place considerable reliance on the forward-looking statements contained in this press
AKARI THERAPEUTICS, Plc
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2018 and December 31, 2017
(in U.S. Dollars, except share data)
| June 30, 2018 | December 31, 2017 | |||||||
| Assets | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash | $ | 15,069,942 | $ | 28,106,671 | ||||
| Prepaid expenses and other current assets | $ | 1,453,331 | $ | 706,415 | ||||
| Total Current Assets | $ | 16,523,273 | 28,813,086 | |||||
| Restricted cash | $ | 521,408 | $ | 142,235 | ||||
| Property and equipment, net | $ | 38,698 | $ | 55,898 | ||||
| Patent acquisition costs, net | $ | 36,167 | $ | 39,124 | ||||
| Total Assets | $ | 17,119,546 | $ | 29,050,343 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,001,802 | $ | 1,971,161 | ||||
| Accrued expenses | $ | 3,989,429 | $ | 4,795,873 | ||||
| Liabilities related to options and warrants | $ | 2,288,361 | $ | 5,081,335 | ||||
| Total Current Liabilities | $ | 8,279,592 | 11,848,369 | |||||
| Other long-term liability | $ | 213,204 | $ | 48,003 | ||||
| Total liabilities | $ | 8,492,796 | $ | 11,896,372 | ||||
| Commitments and Contingencies | ||||||||
| Shareholders' Equity: | ||||||||
| Share capital GBP of .01 par value | ||||||||
| Authorized: 10,000,000,000 ordinary shares; issued and outstanding: | ||||||||
| 1,525,693,393 at June 30, 2018 and December 31, 2017, respectively | 22,927,534 | $ | 22,927,534 | |||||
| Additional paid-in capital | 105,627,489 | $ | 104,799,550 | |||||
| Accumulated other comprehensive loss | (230,635 | ) | $ | (236,246 | ) | |||
| Accumulated deficit | (119,697,638 | ) | $ | (110,336,867 | ) | |||
| Total Shareholders' Equity | 8,626,750 | 17,153,971 | ||||||
| Total Liabilities and Shareholders' Equity | 17,119,546 | $ | 29,050,343 |
AKARI THERAPEUTICS, Plc
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
For the Three and Six Months Ended June
| Six Months Ended | Three Months Ended | |||||||||||||||
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||
| Operating Expenses: | ||||||||||||||||
| Research and development costs | $ | 6,129,228 | $ | 9,784,884 | $ | 5,120,840 | $ | 3,782,185 | ||||||||
| General and administrative expenses | 6,155,038 | $ | 5,847,442 | $ | 2,858,065 | $ | 3,566,952 | |||||||||
| Total Operating Expenses | 12,284,266 | 15,632,326 | 7,978,905 | 7,349,137 | ||||||||||||
| Loss from Operations | (12,284,266 | ) | (15,632,326 | ) | (7,978,905 | ) | (7,349,137 | ) | ||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income | 132,073 | $ | 77,451 | $ | 67,436 | $ | 38,564 | |||||||||
| Changes in fair value of option and warrant liabilities - (loss) gain | 2,792,974 | $ | 2,667,788 | $ | (152,557 | ) | $ | 6,999,529 | ||||||||
| Foreign currency exchange gain (loss) | 6,446 | $ | (13,052 | ) | $ | 47,421 | $ | (6,293 | ) | |||||||
| Other expenses | (7,998 | ) | $ | (4,389 | ) | $ | (5,590 | ) | $ | (2,679 | ) | |||||
| Total Other Income (Expense) | 2,923,495 | 2,727,799 | (43,290 | ) | 7,029,121 | |||||||||||
| Net Loss | (9,360,771 | ) | (12,904,527 | ) | (8,022,196 | ) | (320,016 | ) | ||||||||
| Other Comprehensive Loss: | ||||||||||||||||
| Foreign Currency Translation Adjustment | 5,611 | $ | (93,730 | ) | $ | (27,188 | ) | $ | (48,577 | ) | ||||||
| Comprehensive Loss | $ | (9,355,160 | ) | $ | (12,998,257 | ) | $ | (8,049,384 | ) | $ | (368,593 | ) | ||||
| Loss per common share (basic and diluted) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.00 | ) | ||||
| Weighted average common shares (basic and diluted) | 1,525,693,393 | 1,177,693,383 | 1,525,693,393 | 1,177,693,383 |
For more information
Mary-Jane Elliott / Sukaina Virji / Nicholas Brown
Consilium Strategic Communications