Full Press Release Details
AmpliPhi Biosciences Reports Second Quarter
2016 Financial Results and
Provides Corporate Update
August 15, 2016 - AmpliPhi Biosciences Corporation (NYSEMKT: APHB), a global leader in the development of bacteriophage-based
antibacterial therapies to treat drug-resistant infections, today announced its financial results for the second quarter ended
"We have made significant progress executing on our clinical
programs and look forward to presenting top-line data for both clinical trials later this year," said M. Scott Salka, CEO
of AmpliPhi Biosciences. "The threat posed by drug-resistant infections is universally acknowledged. World leaders from
government, medical and scientific communities continue to stress the importance of addressing this threat, and we remain confident
that bacteriophage-based therapies will not only provide a potential alternative to existing broad-spectrum antibiotics, but will
also be used to resensitize antibiotic-resistant infections to increasingly ineffective drugs, thereby ensuring the continued
effectiveness of the drugs we currently use to treat serious, life-threatening infections."
Recent Corporate Highlights
Second Quarter 2016 Financial Results
For more information, visit www.ampliphibio.com.
Conference Call Details
AmpliPhi Biosciences will host a conference call and webcast
to discuss its second quarter 2016 financial results and provide an update on business activities. The event will be held today,
August 15, 2016, at 4:30 p.m. EDT. The live event can be accessed through AmpliPhi's website at http://investor.ampliphibio.com/events-and-presentations,
or by calling 888-727-7690 (US) or 913-312-0978 (outside of the US). The passcode is 9616475. A replay of the discussion will be
available on AmpliPhi's website or by calling 888-727-7690 (US) or 913-312-0978 (outside of the US), using conference ID
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation (NYSEMKT: APHB) is a biotechnology
company focused on the development and commercialization of novel bacteriophage-based antibacterial therapeutics. AmpliPhi's product
development programs target infections that are often resistant to existing antibiotic treatments. AmpliPhi is currently conducting
a Phase 1 clinical trial of AB-SA01 for the treatment of S. aureus in chronic rhinosinusitis patients and another
Phase 1 clinical trial to evaluate the safety of AB-SA01 when administered topically to the intact skin of healthy adults. AmpliPhi
expects to report final data for both trials in the second half of 2016. AmpliPhi is also developing bacteriophage therapeutics
targeting P. aeruginosa and Clostridium difficile in collaboration with a number of leading organizations
focused on the advancement of bacteriophage-based therapies.
Bacteriophage are naturally occurring viruses that are highly
specific for the bacterial hosts they infect. They can rapidly kill their host, amplifying themselves in the process. Bacteriophage
are unaffected by antibiotic resistance and are able to disrupt bacterial biofilms. Such biofilms are a major line of defense for
bacteria, contributing to antibiotic resistance. Bacteriophage are able to penetrate biofilms and replicate locally to high levels,
to produce strong local therapeutic effects.
Forward Looking Statements
Statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, without limitation, statements about the expected timing of reporting data from AmpliPhi's
two AB-SA01 trials, the potential use of bacteriophages to treat bacterial infections, including infections that do not respond
to antibiotics, the ability to resensitize antibiotic-resistant bacteria to antibiotics, the potential benefits of phage therapy,
the sufficiency of cash to fund future operations and AmpliPhi's development of bacteriophage-based therapies. Words such
as "believe," "anticipate," "plan," "expect," "intend," "will,"
"may," "goal," "potential" and similar expressions are intended to identify forward-looking
statements, though not all forward-looking statements necessarily contain these identifying words. These forward-looking statements
are based upon AmpliPhi's current expectations and involve a number of risks and uncertainties, including the risks and uncertainties
described in AmpliPhi's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, as filed with the Securities
and Exchange Commission (SEC) and subsequent filings with the SEC. Actual results and the timing of events could differ materially
from those anticipated in such forward-looking statements as a result of these risks and uncertainties. You are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary statement, and AmpliPhi undertakes no obligation to revise or update
any forward-looking statements to reflect events or circumstances after the date of this press release.
AmpliPhi Biosciences Corporation
Condensed Consolidated Balance Sheets
| June 30, 2016 | December 31, 2015 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 7,144,000 | $ | 9,370,000 | ||||
| Accounts receivable, prepaids and other assets | 594,000 | 646,000 | ||||||
| Total current assets | 7,738,000 | 10,016,000 | ||||||
| Property and equipment, net | 1,210,000 | 1,131,000 | ||||||
| Intangible assets, net | 20,331,000 | 20,346,000 | ||||||
| Total assets | $ | 29,279,000 | $ | 31,493,000 | ||||
| Liabilities, Series B redeemable convertible preferred stock and stockholders' equity | ||||||||
| Total current liabilities | $ | 3,324,000 | $ | 2,385,000 | ||||
| Derivative liabilities | 1,466,000 | 1,499,000 | ||||||
| Deferred tax liability | 3,005,000 | 3,005,000 | ||||||
| Total liabilities | 7,795,000 | 6,889,000 | ||||||
| Series B redeemable convertible preferred stock | - | 11,890,000 | ||||||
| Stockholders' equity | ||||||||
| Common stock (11.1 million and 5.9 million shares outstanding, respectively) | 111,000 | 59,000 | ||||||
| Additional paid-in capital | 390,858,000 | 375,177,000 | ||||||
| Accumulated deficit | (369,485,000 | ) | (362,522,000 | ) | ||||
| Total stockholders' equity | 21,484,000 | 12,714,000 | ||||||
| Total liabilities, Series B redeemable convertible preferred stock and stockholders' equity | $ | 29,279,000 | $ | 31,493,000 |
AmpliPhi Biosciences Corporation
Consolidated Statements of Operations
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 103,000 | $ | 102,000 | $ | 209,000 | $ | 204,000 | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 1,241,000 | 1,077,000 | 3,221,000 | 2,049,000 | ||||||||||||
| General and administrative | 2,451,000 | 1,617,000 | 5,095,000 | 3,014,000 | ||||||||||||
| Total operating expenses | 3,692,000 | 2,694,000 | 8,316,000 | 5,063,000 | ||||||||||||
| Loss from operations | (3,589,000 | ) | (2,592,000 | ) | (8,107,000 | ) | (4,859,000 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Change in fair value of derivative liabilities | (35,000 | ) | 13,361,000 | 1,371,000 | 1,566,000 | |||||||||||
| Other expense | (227,000 | ) | - | (227,000 | ) | (431,000 | ) | |||||||||
| Total other income (expense) | (262,000 | ) | 13,361,000 | 1,144,000 | 1,135,000 | |||||||||||
| Net income (loss) | (3,851,000 | ) | 10,769,000 | (6,963,000 | ) | (3,724,000 | ) | |||||||||
| Excess of fair value of consideration transferred on conversion of Series B Preferred Stock | (2,366,000 | ) | - | (2,366,000 | ) | - | ||||||||||
| Accretion of Series B redeemable convertible preferred stock | (133,000 | ) | (1,828,000 | ) | (1,858,000 | ) | (2,166,000 | ) | ||||||||
| Net income (loss) attributable to common stockholders | $ | (6,350,000 | ) | $ | 8,941,000 | $ | (11,187,000 | ) | $ | (5,890,000 | ) | |||||
| Per share information: | ||||||||||||||||
| Net income (loss) per share of common stock - basic | $ | (0.73 | ) | $ | 1.27 | $ | (1.53 | ) | $ | (1.19 | ) | |||||
| Weighted average number of shares of common stock outstanding - basic | 8,740,621 | 5,667,170 | 7,312,062 | 4,960,416 | ||||||||||||
| Net loss per share of common stock - diluted | $ | (0.78 | ) | $ | (0.33 | ) | $ | (1.60 | ) | $ | (1.19 | ) | ||||
| Weighted average number of shares of common stock outstanding - diluted | 8,768,059 | 7,545,487 | 7,325,781 | 4,960,416 |
AmpliPhi Biosciences Corporation
Condensed Consolidated Statement of Cash Flows
| Six Months Ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (6,963,000 | ) | $ | (3,724,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Change in fair value of derivative liabilities | (1,371,000 | ) | (1,566,000 | ) | ||||
| Warrants and other allocable expenses | 431,000 | 213,000 | ||||||
| Depreciation and amortization | 173,000 | 132,000 | ||||||
| Stock-based compensation | 1,364,000 | 105,000 | ||||||
| Changes in operating assets and liabilities, net | 389,000 | (127,000 | ) | |||||
| Net cash used in operating activities | (5,977,000 | ) | (4,967,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (237,000 | ) | (44,000 | ) | ||||
| Net cash used in investing activities | (237,000 | ) | (44,000 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net | 4,224,000 | 12,384,000 | ||||||
| Other financing activities, net | (236,000 | ) | 397,000 | |||||
| Net cash provided by financing activities | 3,988,000 | 12,781,000 | ||||||
| Net (decrease) increase in cash and cash equivalents | (2,226,000 | ) | 7,770,000 | |||||
| Cash and cash equivalents, beginning of period | 9,370,000 | 6,581,000 | ||||||
| Cash and cash equivalents, end of period | $ | 7,144,000 | $ | 14,351,000 |
| For further information please contact | ||
| Company and Investor relations: | Media relations (USA) | Media Relations (Europe and ROW) |
| Matt Dansey AmpliPhi Biosciences +1 858-800-4869 md@ampliphibio.com | Danielle Lewis/Glenn Silver Lazar Partners + 1 212-867-1762 ampliphi@lazarpartners.com | Gemma Howe/Sue Charles Instinctif Partners +44 (0)20 7866 7860 ampliphi@instinctif.com |