Full Press Release Details
Genetics Announces Second Quarter 2018 Financial Results
Provides Company Update
August 13, 2018 -- Atossa Genetics Inc. (NASDAQ: ATOS), a clinical-stage biopharmaceutical company developing novel therapeutics
and delivery methods to treat breast cancer and other breast conditions, today announced second quarter ended June 30, 2018 financial
results and provided an update on recent company developments.
Quay, President and CEO commented, "We have made tremendous progress with our clinical programs. We opened enrollment in
two phase 2 clinical studies: one study using our proprietary topical Endoxifen for breast density reduction, and another study
using our proprietary oral Endoxifen for reducing breast cancer tumor cell activity in the "window of opportunity"
between diagnosis of breast cancer and surgery. We also completed dosing and patient visits in our phase 1 study of topical Endoxifen
in men. Our intraductal microcatheter immunoOncology pre-clinical program was launched and we contracted with an additional manufacturer
for Endoxifen. We have had a very busy and productive first six months of 2018 as we continue the momentum in the advancement
of our clinical programs. We are looking forward to announcing preliminary results from our phase 1 study of topical Endoxifen
in men by September 30, 2018," added Dr. Quay.
Corporate Developments
important recent developments include the following:
2018 Financial Results
the three and six months ended June 30, 2018 and 2017, we had no revenue and no associated cost of revenue.
operating expenses were approximately $4.1 million and $6.0 million for the three and six months ended June 30, 2018, respectively,
consisting of general and administrative (G&A) expenses of approximately $2.7 million and $4.1 million, respectively; and
research and development (R&D) expenses of approximately $1.5 million and $1.9 million, respectively. For the previous year,
total operating expenses were approximately $1.9 million and $3.6 million for the three and six months ended June 30, 2017, respectively,
consisting of G&A expense of approximately $1.1 million and $2.2 million, respectively, and R&D expenses of $0.8 million
and $1.4 million, respectively.
Genetics Inc., is a clinical-stage biopharmaceutical company developing novel therapeutics and delivery methods to treat breast
cancer and other breast conditions. For more information, please visit www.atossagenetics.com.
statements in this press release, which Atossa undertakes no obligation to update, are subject to risks and uncertainties that
may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties
associated with any variation between preliminary and final clinical results, actions and inactions by the FDA, the outcome or
timing of regulatory approvals needed by Atossa including those needed to commence studies, lower than anticipated rate of patient
enrollment, estimated market size of drugs under development, the safety and efficacy of Atossa's products and services,
performance of clinical research organizations and investigators, obstacles resulting from proprietary rights held by others with
respect to fulvestrant, such as patent rights, potential market sizes for Atossa's drugs under development and other risks
detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation
its periodic reports on Form 10-K and 10-Q, each as amended and supplemented from time to time.
Genetics Company Contact:
Atossa Genetics Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| June 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 15,236,736 | $ | 7,217,469 | ||||
| Restricted cash | 55,000 | 55,000 | ||||||
| Prepaid expenses | 440,389 | 250,944 | ||||||
| Research and development tax rebate receivable | 626,011 | 358,277 | ||||||
| Other current assets | 50,035 | 16,344 | ||||||
| Total current assets | 16,408,171 | 7,898,034 | ||||||
| Furniture and equipment, net | 60,926 | 11,467 | ||||||
| Intangible assets, net | 59,882 | 75,686 | ||||||
| Other assets | 48,867 | 178,907 | ||||||
| Total assets | $ | 16,577,846 | $ | 8,164,094 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 191,217 | $ | 334,901 | ||||
| Accrued expenses | 286,713 | 90,105 | ||||||
| Payroll liabilities | 952,657 | 784,867 | ||||||
| Stock-based compensation liability | 1,557,163 | |||||||
| Other current liabilities | 23,331 | 15,534 | ||||||
| Total current liabilities | 3,011,081 | 1,225,407 | ||||||
| Commitments and contingencies (note 11) | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock - $0.001 par value; 10,000,000 shares authorized, consisting of: Series A convertible preferred stock-$0.001 par value; 4,000 shares authorized, and 0 shares outstanding as of June 30, 2018 and December 31, 2017; Series B convertible preferred stock- $0.001 par value; 25,000 and 0 shares authorized, and 5,802 and 0 shares issued and outstanding, as of June 30, 2018 and December 31, 2017, respectively | 6 | |||||||
| Additional paid-in capital-Series B convertible preferred stock | 5,234,116 | |||||||
| Common stock - $0.18 par value; 175,000,000 shares authorized, 4,874,099 and 2,651,952 shares issued and outstanding, as of June 30, 2018 and December 31, 2017, respectively | 877,329 | 477,342 | ||||||
| Additional paid-in capital | 78,898,602 | 71,887,674 | ||||||
| Accumulated deficit | (71,443,288 | ) | (65,426,329 | ) | ||||
| Total stockholders' equity | 13,566,765 | 6,938,687 | ||||||
| Total liabilities and stockholders' equity | $ | 16,577,846 | $ | 8,164,094 |
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 1,467,736 | $ | 824,094 | $ | 1,938,712 | $ | 1,368,396 | ||||||||
| General and administrative | 2,674,920 | 1,072,169 | 4,078,385 | 2,231,458 | ||||||||||||
| Total operating expenses | 4,142,656 | 1,896,263 | 6,017,097 | 3,599,854 | ||||||||||||
| Operating loss | (4,142,656 | ) | (1,896,263 | ) | (6,017,097 | ) | (3,599,854 | ) | ||||||||
| Change in fair value of common stock warrants | (152,447 | ) | (152,447 | ) | ||||||||||||
| Warrant financing expense | (192,817 | ) | (192,817 | ) | ||||||||||||
| Other income | 79 | 38 | 138 | 75 | ||||||||||||
| Loss before income taxes | (4,142,577 | ) | (2,241,489 | ) | (6,016,959 | ) | (3,945,043 | ) | ||||||||
| Income taxes | ||||||||||||||||
| Net loss | $ | (4,142,577 | ) | $ | (2,241,489 | ) | $ | (6,016,959 | ) | $ | (3,945,043 | ) | ||||
| Deemed dividends attributable to preferred stock | (4,782,100 | ) | (2,568,132 | ) | (4,782,100 | ) | (2,568,132 | ) | ||||||||
| Net loss applicable to common stockholders | $ | (8,924,677 | ) | $ | (4,809,621 | ) | $ | (10,799,059 | ) | $ | (6,513,175 | ) | ||||
| Loss per common share - basic and diluted | $ | (2.90 | ) | $ | (7.72 | ) | $ | (3.77 | ) | $ | (13.85 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 3,073,803 | 623,004 | 2,864,033 | 470,139 |