Full Press Release Details
Senesco Technologies Reports Fiscal Year
2012 Financial Results
BRIDGEWATER, N.J. (September 18, 2012)
- Senesco Technologies, Inc. ("Senesco" or the "Company") (NYSE MKT: SNT) today announced financial results
for the 12 months ended June 30, 2012 ("Fiscal 2012").
Fiscal Fourth Quarter and Recent Highlights
| Common Stock outstanding | 116,753,186 | |||
| Preferred Stock * | 3,826,923 | |||
| Warrants | 39,963,481 | |||
| Options | 15,647,742 | |||
| Fully diluted | 176,191,332 |
* Represents 995 shares of Series
A 10% Convertible Preferred Stock, with a stated value of $1,000 per share. Such 10% Convertible Preferred Stock is currently convertible
into common stock at a conversion rate of $0.26 per common share.
some very important milestones this past fiscal year and are extremely pleased with the results of the first cohort of the Phase
1b/2a clinical trial in the multiple myeloma study with SNS01-T," stated Leslie J. Browne, Ph.D, President and Chief Executive
Officer of Senesco Technologies, Inc. Dr. Browne continued, "We have begun treating patients in the second cohort of the
Phase 1b/2a clinical trial in multiple myeloma, and we are looking forward to reporting the results over the coming months as our
lead candidate progresses through the Phase 1b/2a dose-escalation study. Based on the Phase 1b/2a study and our pre-clinical research
results, the planning for our next clinical trial for Multiple Myeloma or Diffuse Large B-cell Lymphoma is underway. We hope to
initiate a Phase 2 clinical trial in or around the second half of 2013. If the clinical trial program remains on track, the Company
hopes to file a New Drug Application by the end of 2016 or during 2017. .
Fiscal 2012 Financial Results
Revenue for Fiscal 2012 was $200,000, which
consisted of a milestone payment in connection with an agricultural license agreement. There was no revenue during Fiscal 2011.
Research and development expenses for Fiscal
2012 were $2,566,247, compared with $3,720,394 for Fiscal 2011, a 31% decrease. The decrease was primarily due to a decrease in
costs incurred in connection with the Company's development of SNS01-T for multiple myeloma. Specifically,
during Fiscal 2011, the Company incurred significant costs related to its filing and follow-up of its investigational new drug
application, pivotal toxicology study and other preclinical work that it did not incur during Fiscal 2012. This was partially offset
by costs incurred related to the performance of the Phase 1b/2a clinical trial for multiple myeloma which were not incurred during
General and administrative expenses were
$2,724,144 for Fiscal 2012 compared with $2,610,222 for Fiscal 2011, a 4% increase. The increase was primarily due to an increase
in stock-based compensation, payroll, professional fees and depreciation and amortization, which was partially offset by a decrease
in investor relations and other general and administrative expenses.
The loss applicable to common shares for
Fiscal 2012 was $6,691,860 or $0.08 per share compared with a loss applicable to common shares for Fiscal 2011 of $9,907,276 or
$0.14 per share. This decrease in the loss applicable to common shares was primarily the result of a decrease in research and development
costs, other non-operating expenses and the cost of dividends on preferred stock.
As of June 30, 2012, the Company had cash
and cash equivalents in the amount of $2,001,325, compared to cash and cash equivalents of $3,609,954, as of June 30, 2011. Senesco
has initiated a Phase 1b/2a clinical study with SNS01-T in multiple myeloma patients. Patients are currently being treated in the
second cohort of the trial. The Company plans to fund research and development and commercialization activities by utilizing their
current cash balance and investments, by achieving milestones set forth in current licensing agreements, through the execution
of additional licensing agreements, and through the placement of equity and / or debt instruments. The Company believes that it
has sufficient cash on hand to maintain operations through November 2012. However, the Company
believes it has the ability to raise additional capital, utilize its unused line of credit and, if necessary, delay certain costs
which will provide the Company with enough cash to fund its operations at least through March 31, 2013.
SNS01-T is a novel approach to cancer
therapy that is designed to selectively trigger apoptosis in B-cell cancers such as multiple myeloma, and, mantle cell and diffuse
large B-cell lymphomas. Senesco is the sponsor of the Phase 1b/2a study that is actively enrolling patients at Mayo Clinic in
Rochester, MN, the University of Arkansas for Medical Sciences in Little Rock, and the Mary Babb Randolph Cancer Center in Morgantown,
About Multiple Myeloma
Multiple myeloma is an
incurable cancer of plasma cells, a type of white blood cell derived from B-lymphocytes, normally responsible for the production
of antibodies, in which abnormal cells accumulate in the bone marrow leading to bone lesions and interfering with the production
of normal blood cells. Senesco was previously granted orphan drug status for SNS01-T, the Company's lead drug candidate for
treatment of multiple myeloma.
B-Cell Lymphoma (DLBCL)
Diffuse large B-cell lymphoma
is the most common type of non-Hodgkin lymphoma (NHL) accounting for up to 30 percent of newly diagnosed cases. DLBCL is a fast-growing
B-cell lymphoma that can arise in lymph nodes or outside of the lymphatic system in several organs. It can progress rapidly if
untreated. The prevalence of DLBCL in the United States is approximately 137,000 patients
About Senesco Technologies,
Senesco, a leader in eIF5A technology,
is running a clinical study in multiple myeloma with its lead therapeutic candidate SNS01-T, which targets B-cell cancers by selectively
inducing apoptosis by modulating eukaryotic, translation, initiation Factor 5A (eIF5A), which is believed to be an important regulator
of cell growth and cell death. Accelerating apoptosis may have applications in treating cancer, while delaying apoptosis may have
applications in treating certain inflammatory and ischemic diseases. Senesco has already partnered with leading-edge companies
engaged in agricultural biotechnology and biofuels development, and is entitled to earn research and development milestones and
royalties if its gene-regulating platform technology is incorporated into its partners' products.
Forward-Looking Statements
Certain statements included
in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including,
but not limited to: the Company's ability to continue as a going concern; the Company's ability to recruit patients
for its clinical trial; the ability of the Company to consummate additional financings; the development of the Company's
gene technology; the approval of the Company's patent applications; the current uncertainty in the patent landscape surrounding
small inhibitory RNA and the Company's ability to successfully defend its intellectual property or obtain the necessary licenses
at a cost acceptable to the Company, if at all; the successful implementation of the Company's research and development programs
and collaborations; the success of the Company's license agreements; the acceptance by the market of the Company's products;
the timing and success of the Company's preliminary studies, preclinical research and clinical trials; competition and the
timing of projects and trends in future operating performance, the Company's ability to comply with the continued listing
standards of the NYSE MKT, as well as other factors expressed from time to time in the Company's periodic filings with the
Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with the
Company's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of
this press release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent
events or circumstances.
Senesco Technologies, Inc.
Leslie J. Browne, Ph.D.
| SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY |
| (A DEVELOPMENT STAGE COMPANY) |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| June 30, | June 30, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 2,001,325 | $ | 3,609,954 | ||||
| Prepaid research services and supplies and expenses | 1,548,524 | 1,446,064 | ||||||
| Total Current Assets | 3,549,849 | 5,056,018 | ||||||
| Equipment, furniture and fixtures, net | 5,857 | 3,782 | ||||||
| Intangibles, net | 3,393,992 | 3,524,731 | ||||||
| Deferred income tax assets, net | - | - | ||||||
| Security deposit | 5,171 | 12,358 | ||||||
| TOTAL ASSETS | $ | 6,954,869 | $ | 8,596,889 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 594,514 | $ | 559,525 | ||||
| Accrued expenses | 369,695 | 509,806 | ||||||
| Line of credit | 2,199,108 | 2,199,108 | ||||||
| Total Current Liabilities | 3,163,317 | 3,268,439 | ||||||
| Warrant liabilities | 238,796 | 711,259 | ||||||
| Grant payable | 99,728 | 99,728 | ||||||
| TOTAL LIABILITIES | 3,501,841 | 4,079,426 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, $0.01 par value, authorized 5,000,000 shares | ||||||||
| Series A 10,297 shares issued and 3,379 and 3,690 shares outstanding, respectively | 34 | 37 | ||||||
| (liquidation preference of $3,463,475 and $3,782,250 | ||||||||
| at June 30, 2012 and June 30, 2011, respectively) | ||||||||
| Series B 1,200 shares issued and outstanding | 12 | 12 | ||||||
| (liquidation preference of $1,230,000 and $1,230,000 | ||||||||
| at June 30, 2012 and June 30, 2011, respectively) | ||||||||
| Common stock, $0.01 par value, authorized 350,000,000 shares, | ||||||||
| issued and outstanding 94,112,483 and 77,769,677, respectively | 941,125 | 777,697 | ||||||
| Capital in excess of par | 69,952,152 | 64,488,152 | ||||||
| Deficit accumulated during the development stage | (67,440,295 | ) | (60,748,435 | ) | ||||
| Total Stockholders' Equity | 3,453,028 | 4,517,463 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 6,954,869 | $ | 8,596,889 |
| SENESCO TECHNOLOGIES, INC. AND SUBSIDIARY |
| (A DEVELOPMENT STAGE COMPANY) |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited) |
| Cumulative | ||||||||||||||||
| Fiscal Year Ended June 30, | Amounts from | |||||||||||||||
| 2012 | 2011 | 2010 | Inception | |||||||||||||
| Revenue | $ | 200,000 | $ | - | $ | 140,000 | $ | 1,790,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 2,724,144 | 2,610,222 | 2,349,116 | 31,614,677 | ||||||||||||
| Research and development | 2,566,247 | 3,720,394 | 2,637,407 | 21,235,605 | ||||||||||||
| Total operating expenses | 5,290,391 | 6,330,616 | 4,986,523 | 52,850,282 | ||||||||||||
| Loss from operations | (5,090,391 | ) | (6,330,616 | ) | (4,846,523 | ) | (51,060,282 | ) | ||||||||
| Other non-operating income (expense) | ||||||||||||||||
| Grant income | - | 244,479 | - | 244,479 | ||||||||||||
| Fair value - warrant liability | 472,463 | 609,239 | 2,516,661 | 8,330,130 | ||||||||||||
| Sale of state income tax loss - net | - | - | - | 586,442 | ||||||||||||
| Other noncash (expense) income, net | - | (115,869 | ) | - | 205,390 | |||||||||||
| Loss on extinguishment of debt | - | - | (361,877 | ) | (361,877 | ) | ||||||||||
| Write-off of patents abandoned | (321,137 | ) | (1,588,087 | ) | - | (1,909,224 | ) | |||||||||
| Amortization of debt discount and financing costs | - | - | (10,081,107 | ) | (11,227,870 | ) | ||||||||||
| Interest expense - convertible notes | - | - | (586,532 | ) | (2,027,930 | ) | ||||||||||
| Interest (expense) income - net | (127,068 | ) | (88,122 | ) | (24,135 | ) | 283,988 | |||||||||
| Net loss | (5,066,133 | ) | (7,268,976 | ) | (13,383,513 | ) | (56,936,754 | ) | ||||||||
| Preferred dividends | (1,625,727 | ) | (2,638,300 | ) | (6,239,514 | ) | (10,503,541 | ) | ||||||||
| Loss applicable to common shares | $ | (6,691,860 | ) | $ | (9,907,276 | ) | $ | (19,623,027 | ) | $ | (67,440,295 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.67 | ) | |||||||
| Basic and diluted weighted-average number | ||||||||||||||||
| of common shares outstanding | 85,703,291 | 69,332,477 | 29,112,976 |