Full Press Release Details
Sevion Therapeutics Reports Fiscal Year
2014 Financial Results
BRIDGEWATER, N.J. (September 29,
2014) - Senesco Technologies, Inc. doing business as Sevion Therapeutics ("Sevion" or the "Company")
(OTCQB: SNTI) today reported financial results for the fiscal year ended June 30, 2014 ("Fiscal 2014"), and also provided
an overview of corporate accomplishments and plans.
"In Fiscal 2014, Sevion put in place
the building blocks to execute on our goal of becoming the preeminent next-generation biologics company with best and first-in-class
product candidates and technologies," said Ronald Martell, chief executive officer. "As we look to the future, we will
continue to execute on a multi-pronged strategy that includes advancing our internal pipeline, leveraging our discovery technology
platforms through partnerships and evaluating in-licensing opportunities that fit well with our therapeutic areas and scientific
focus. We will also explore options to maintain our financial flexibility, allowing us to unlock the value of these assets as they
Fiscal Fourth Quarter 2014 and Recent
Fiscal 2014 Financial Results
Revenue for Fiscal 2014 was $0.1 million,
which consisted of a milestone payment in connection with an agricultural license agreement. There was no revenue during the year
ended June 30, 2013 ("Fiscal 2013").
Research and development expenses for Fiscal
2014 were $3.3 million compared to $2.1 million for Fiscal 2013. The increase was primarily due to an increase in costs incurred
in connection with the development of the Company's drug candidate, SNS01-T and the acquisition of Fabrus, Inc., and was
partially offset by a decrease in costs associated with the research contract with the University of Waterloo.
General and administrative expenses were
$3.7 million for Fiscal 2014 compared to $2.5 million for Fiscal 2013. The increase was primarily due to an increase in stock-based
compensation, and investor relations expenses.
The loss applicable to common shares for
Fiscal 2014 was $13.9 million, or $(2.53) per share, compared with a loss applicable to common shares for Fiscal 2013 of $7.0 million,
or $(5.11) per share. This increase in the loss applicable to common shares was primarily the result of an increase in research
and development costs and general and administrative expenses, an impairment of patents, write-off of patents abandoned and dividends
on preferred stock, which was partially offset by a decrease in a non-cash loss on the settlement of warrant liabilities.
As of June 30, 2014, the Company had cash
and cash equivalents of $6.1 million, compared to cash and cash equivalents of $1.6 million as of June 30, 2013. The Company believes
that it has sufficient funds to maintain operations through March 31, 2015.
About Sevion Therapeutics
Sevion Therapeutics is a clinical-stage
company building and developing a portfolio of innovative therapeutics, from both internal discovery and acquisition, for the
treatment of cancer and immunological diseases. The Company's product candidates are derived from multiple key proprietary
technology platforms: cell-based arrayed antibody discovery, ultralong antibody scaffolds, eIF5A apoptotic regulatory systems,
and Chimerasome nanocages. Sevion has leveraged these technologies to build a pipeline of innovative product candidates. For more
information, please visit SevionTherapeutics.com.
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 integrate the Fabrus science and operations, including the rebranding of the
Company as Sevion Therapeutics; 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 and antibody 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; and the quotation of the Company's
common stock on an over-the-counter securities market, 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.
| For Investors: | |
| Joel Brooks | Heather Branham |
| Chief Financial Officer | 908-393-9393 |
| info@seviontherapeutics.com | |
| David Pitts, Argot Partners | |
| (212) 600-1902 | |
| sevion@argotpartners.com | |
| For Media: | |
| Rachel Hutman | |
| Rachel@canalecomm.com | |
| 619-849-5384 |
| SENESCO TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| June 30, | June 30, | |||||||
| 2014 | 2013 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,111,340 | $ | 1,602,294 | ||||
| Accounts receivable | 43,133 | - | ||||||
| Prepaid research supplies and expenses | 1,069,925 | 1,919,220 | ||||||
| Total Current Assets | 7,224,398 | 3,521,514 | ||||||
| Equipment, furniture and fixtures, net | 223,475 | 4,555 | ||||||
| Patents, net | 2,178,867 | 3,566,497 | ||||||
| Acquired research and development | 9,800,000 | - | ||||||
| Goodwill | 13,902,917 | - | ||||||
| Security deposit | 5,171 | 5,171 | ||||||
| TOTAL ASSETS | $ | 33,334,828 | $ | 7,097,737 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 901,180 | $ | 637,320 | ||||
| Accrued expenses | 923,991 | 387,540 | ||||||
| Line of credit | - | 2,187,082 | ||||||
| Total Current Liabilities | 1,825,171 | 3,211,942 | ||||||
| Deferred tax liability | 3,920,000 | - | ||||||
| Other liabilities | 99,728 | 99,728 | ||||||
| TOTAL LIABILITIES | 5,844,899 | 3,311,670 | ||||||
| COMMITMENTS (Note 12) | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Convertible preferred stock, $0.01 par value, authorized 5,000,000 shares | ||||||||
| Series A 10,297 shares issued and 580 and 800 shares outstanding, respectively | ||||||||
| (liquidation preference of $594,500 and $820,000 | ||||||||
| at June 30, 2014 and June 30, 2013, respectively) | 6 | 8 | ||||||
| Common stock, $0.01 par value, authorized 500,000,000 shares, | ||||||||
| issued and outstanding 13,846,361 and 2,272,062, respectively | 138,463 | 22,721 | ||||||
| Capital in excess of par | 115,631,726 | 78,189,173 | ||||||
| Accumulated deficit | (88,280,266 | ) | (74,425,835 | ) | ||||
| Total Stockholders' Equity | 27,489,929 | 3,786,067 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 33,334,828 | $ | 7,097,737 |
| SENESCO TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| Fiscal Year Ended June 30, | ||||||||||||
| 2014 | 2013 | 2012 | ||||||||||
| Licensing Revenue | $ | 100,000 | $ | - | $ | 200,000 | ||||||
| Operating expenses: | ||||||||||||
| General and administrative | 3,683,350 | 2,499,624 | 2,724,144 | |||||||||
| Research and development | 3,338,687 | 2,086,666 | 2,566,247 | |||||||||
| Acquisition related costs | 544,978 | - | - | |||||||||
| Impairment of patents | 1,350,591 | - | - | |||||||||
| Write-off of patents abandoned | 330,190 | 64,210 | 321,137 | |||||||||
| Total operating expenses | 9,247,796 | 4,650,500 | 5,611,528 | |||||||||
| Loss from operations | (9,147,796 | ) | (4,650,500 | ) | (5,411,528 | ) | ||||||
| Other non-operating income (expense) | ||||||||||||
| Change in fair value of warrant liability | - | 371,591 | 472,463 | |||||||||
| Loss on settlement of warrant liabilities | - | (1,724,546 | ) | - | ||||||||
| Interest expense - net | (77,438 | ) | (119,087 | ) | (127,068 | ) | ||||||
| Net loss | (9,225,234 | ) | (6,122,542 | ) | (5,066,133 | ) | ||||||
| Preferred dividends | (4,629,197 | ) | (862,998 | ) | (1,625,727 | ) | ||||||
| Loss applicable to common shares | (13,854,431 | ) | (6,985,540 | ) | (6,691,860 | ) | ||||||
| Other comprehensive loss | - | - | - | |||||||||
| Comprehensive loss | $ | (13,854,431 | ) | $ | (6,985,540 | ) | $ | (6,691,860 | ) | |||
| Basic and diluted net loss per common share | $ | (2.53 | ) | $ | (5.11 | ) | $ | (7.81 | ) | |||
| Basic and diluted weighted-average number | ||||||||||||
| of common shares outstanding | 5,476,717 | 1,366,384 | 857,033 |