Full Press Release Details
Sevion Therapeutics Reports Second Quarter
2015 Financial Results
San Diego, CA - February 18,
2014 - Sevion Therapeutics, Inc. ("Sevion" or the "Company") (OTCQB: SVON), a biopharmaceutical company which
discovers, develops and acquires next-generation biologics for the treatment of cancer and immunological diseases, today reported
financial results for the fiscal quarter ended December 31, 2014 ("Second Quarter 2015").
Sevion has been advancing its SVN001 product
candidate through preclinical development where it has demonstrated potent activity as well as advancing its SVN002 product candidate
through preclinical development. However, given the Company's limited capital resources, in December 2014, the Company decided
to temporarily reduce its research and development spending on its antibody program until it is able to consummate a strategic
transaction or a financing transaction. Efforts are underway to accomplish this objective.
Fiscal Second Quarter 2015 and Recent
Second Fiscal Quarter 2015 Financial
The Company reported no revenue for the
Second Quarter 2015 and Second Quarter 2014.
Research and development expenses for the
Second Quarter 2015 were $1.4 million compared to $0.7 million for the Second Quarter 2014. The increase was primarily due to the
acquisition of Fabrus, Inc., in May 2014.
General and administrative expenses were
$1.3 million for the Second Quarter 2015 compared to $0.9 million for the comparable year-ago second quarter. The increase was
primarily due to severance payments due to terminated employees and legal fees as a result of closing the New Jersey office and
suspending the Factor 5a program. This was partially offset by a decrease in stock-based compensation.
During the Second Quarter 2015, due to
the decline of the Company's market value, the Company recorded an impairment to goodwill in the amount of $8.1 million.
The loss applicable to common shares for
the Second Quarter 2015 was $10.8 million, or $(0.78) per share, compared with a loss applicable to common shares for the Second
Quarter 2014 of $1.6 million, or $(0.48) per share. This increase in the loss applicable to common shares was primarily the result
of the impairment of goodwill, and an increase in research and development expenses and general and administrative expenses.
As of December 31, 2014, the Company had
cash and cash equivalents of $2.1 million, compared to cash and cash equivalents of $6.1 million as of June 30, 2014. The Company
believes that it has sufficient funds to maintain operations through March 2015.
About Sevion Therapeutics
Sevion Therapeutics is a biopharmaceutical
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 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 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 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.
| SEVION THERAPEUTICS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (unaudited) |
| December 31, | June 30, | |||||||
| 2014 | 2014 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 2,107,452 | $ | 6,111,340 | ||||
| Accounts receivable | 203,915 | 43,133 | ||||||
| Prepaid research supplies and expenses | 62,447 | 1,069,925 | ||||||
| Total Current Assets | 2,373,814 | 7,224,398 | ||||||
| Equipment, furniture and fixtures, net | 259,277 | 233,475 | ||||||
| Patent costs, net | 283,393 | 2,178,867 | ||||||
| Acquired research and development | 9,800,000 | 9,800,000 | ||||||
| Goodwill | 5,780,951 | 13,902,917 | ||||||
| Security deposits | 55,941 | 5,171 | ||||||
| TOTAL ASSETS | $ | 18,553,376 | $ | 33,344,828 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 1,305,241 | $ | 901,180 | ||||
| Accrued expenses | 1,094,017 | 923,990 | ||||||
| Deferred revenue | 150,000 | - | ||||||
| Total Current Liabilities | 2,549,258 | 1,825,170 | ||||||
| Deferred tax liability | 3,920,000 | 3,920,000 | ||||||
| Deferred rent | 45,224 | - | ||||||
| Other liabilities | 99,728 | 99,728 | ||||||
| TOTAL LIABILITIES | 6,614,210 | 5,844,898 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Convertible preferred stock, $0.01 par value, authorized 5,000,000 shares | ||||||||
| Series A 10,297 shares issued and 580 and 580 shares outstanding, respectively | ||||||||
| (liquidation preference of $594,500 at December 31, 2014 and June 30, 2014) | 6 | 6 | ||||||
| Common stock, $0.01 par value, authorized 500,000,000 shares, | ||||||||
| issued and outstanding 13,866,627 and 13,846,361, respectively | 138,666 | 138,463 | ||||||
| Capital in excess of par | 116,042,917 | 115,631,726 | ||||||
| Accumulated deficit | (104,242,423 | ) | (88,280,265 | ) | ||||
| Total Stockholders' Equity | 11,939,166 | 27,489,930 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 18,553,376 | $ | 33,334,828 |
See Notes to Condensed Consolidated Financial Statements
| SEVION THERAPEUTICS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (unaudited) |
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Licensing Revenue | $ | - | $ | - | $ | - | $ | 100,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 1,253,226 | 858,090 | 2,027,826 | 1,714,721 | ||||||||||||
| Research and development | 1,371,930 | 730,817 | 3,492,086 | 1,541,754 | ||||||||||||
| Impairment of goodwill | 8,121,966 | - | 8,121,966 | - | ||||||||||||
| Write-off of patents | - | - | 2,290,836 | 185,161 | ||||||||||||
| Total operating expenses | 10,747,122 | 1,588,907 | 15,932,714 | 3,441,636 | ||||||||||||
| Loss from operations | (10,747,122 | ) | (1,588,907 | ) | (15,932,714 | ) | (3,341,636 | ) | ||||||||
| Interest income (expense) - net | 995 | (30,731 | ) | 2,780 | (62,335 | ) | ||||||||||
| Net loss | (10,746,127 | ) | (1,619,638 | ) | (15,929,934 | ) | (3,403,971 | ) | ||||||||
| Preferred dividends | (17,722 | ) | (20,617 | ) | (32,222 | ) | (42,240 | ) | ||||||||
| Loss applicable to common shares | (10,763,849 | ) | (1,640,255 | ) | (15,962,156 | ) | (3,446,211 | ) | ||||||||
| Other comprehensive loss | - | - | - | - | ||||||||||||
| Comprehensive loss | $ | (10,763,849 | ) | $ | (1,640,255 | ) | $ | (15,962,156 | ) | $ | (3,446,211 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.78 | ) | $ | (0.48 | ) | $ | (1.15 | ) | $ | (1.20 | ) | ||||
| Basic and diluted weighted-average number | ||||||||||||||||
| of common shares outstanding | 13,866,627 | 3,443,109 | 13,856,439 | 2,875,517 |
See Notes to Condensed Consolidated Financial Statements